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Price: $ 1,088,000
X-factor: This detached home is located in the sought after neighborhood of East York just around the corner from Danforth Village. It is also within walking distance of transit routes that can get you across the city.
With three bedrooms, three bathrooms and a finished basement, it can be the perfect place for a family looking to settle down. But the two-story home has been on the market for over 58 days and is expected to go below the stated price.
If you are a first-time buyer, you may be wondering why this is not sold? We picked up our expert, real estate agent Othneil Litchmore, to get a better understanding of why this property costs what it does.
Why is it priced this way: This home on 869 Cosburn Ave was originally listed for $ 699,000, but Litchmore says it is definitely below its market value and could have been a way for the seller to attract more buyers in the beginning.
In the past, sellers would negotiate deals with buyers to eventually come to an agreement close to the listing price. But now that format has changed a lot because of how hot the real estate market is in the Greater Toronto area, Litchmore says.
According to the Toronto Region Real Estate Board, homes held an average of 13 days on the market in November 2021.
“We have more buyers than homes for sale, and a lot of the time the agent or seller can really figure out what the house is worth,” Litchmore said. “What they’re basically doing is creating an auction-style system as a way to ultimately find out what the market values the home for.”
Litchmore says this approach is probably the fairest to ensure they receive market value for the home, and that’s how agents and sellers have responded to market conditions in the future.
“Every single home for sale in GTA attracts at least two buyers,” Litchmore said. “If you have two buyers, then how do you decide who gets it? It’s the person who is willing to pay the most.”
In this particular case, the house has been on the market for almost two months. Why? Probably because of its condition. Litchmore points out that there are likely to be a few updates that need to be made to get this property up to standard, as photos of the house reveal its age.
The location continues to be the most appealing aspect as Litchmore believes it is a good mix of suburbs and city if you are a working professional. Despite that, buyers could potentially get a better home around this price range a little further outside of GTA.
“I can see someone saying I can get more for my money. The price of the updates here is probably too much, and that’s considering it’s an older home, too,” Litchmore said.
A similar but completely renovated home in the same neighborhood on 11 Wallington Ave was sold for $ 1,281,000 in October.
It is still possible that the house may sell for its current price of $ 1,088,000 if two buyers end up showing up at the same time, but Litchmore believes it is possible that it will also sell in the low $ 900,000 range.
Tips for finding a place like this: Litchmore always advises potential home buyers to look at places that have been on the market for more than three weeks as this is where you can steal or negotiate in price.
Houses like this are probably also for people interested in investing their time and money in renovations to get it up to current standards. Those willing to do so could see a big reward, as the home is only expected to increase in value over time, Litchmore adds.