If the idea of buying a new home in Toronto has flickered in your mind for even one brief millisecond, you are no doubt familiar with Toronto MLS listings. Is there any better (PG) way to procrastinate work (or bedtime, or cleaning, or whiny children, or all those things you really should be doing) than flicking through properties for sale, spotting your dream kitchen (a sub zero fridge and gas stove!) and playing voyeur?
Look. I’m guilty of it too. Super guilty. I have serious lust issues myself over Toronto MLS listings in Riverdale myself.
We have to chat though. Because…..don’t hate me…..if you are seriously looking beyond just the pretty pictures and are considering buying in the future, you need to know that 3/4 of those pretty pictures and the listings you see online for Toronto MLS listings are fooling you.
This is not a joke. It’s (sadly) TRUEEEEEEEE.
See these houses? They have all been listed – between High Park and the Danforth for $899,000 in the last month. But here’s the thing. NONE of them sold for that price.
One sold for $845,000 (and for the record, it wasn’t that freehold town), one sold for $1,045,000, another $1,315,000 and lastly, $1,275,000.
See this house to the left??? I got 2 calls from unrepresented buyers wanting to see it. On MLS, the price is listed at $999,000. Neither buyer who talked to me had any clue of it’s actual, real value. They thought that because it had been on MLS for a week, that they had a chance to get it for significantly under that asking price.
Are you shaking your head in disbelief? HATING on real estate agents for lying?
We’re not lying. On the broker listings, we clearly state an offer date. And it is assumed that we are looking for more on paper. WHY do real estate agents and sellers list properties on realtor.ca for less than they are worth then?
It’s simply because it’s how it’s done in Toronto right now. It’s the same way it was done last year. And the year before. Don’t believe me? Read my blog post from 4 years ago!
THE LIST PRICE DOES NOT EQUAL THE PURCHASE PRICE
Like it or not, it’s a sales tactic that the industry uses in this city to get the best possible price for the seller we represent.
Because it’s still a seller’s market, many agents and their selling clients elect to put up a “teaser price”, and set an offer date for 5-8 days after it goes to market. And then on offer night, they allow agent after agent to present their offer, taking the highest bid possible. Why? Because market value is whatever a buyer is willing to pay.
Buyers and their agents need to review comparable solds, adjust for year over year appreciation, consider the competition and evaluate what it is worth to them if they are interested in a home that has an “offer date.”
It’s confusing if you’re a consummate MLS browser. Because they don’t advertise anywhere on the public side if a listing has an offer date. Only Realtors and their clients are privy to that info. And here’s the other thing. Not all Toronto MLS listings have them! Some Toronto MLS listings actually ARE priced at market value. And they don’t have an offer date. And you might still be able to negotiate down that price.
The same thing is happening in condos.
A good rule is, if you see a $399K condo in the city of Toronto, you can expect that’s artificial.
Another good rule is, if you see condo and the pictures of the inside are beautiful and it’s gorgeously staged, you can expect it’s worth more.
Or maybe not.
See these condos? They have all been listed for $599,000 in the last month. Once again, NONE of them sold for that price.
One sold for $676,000, another $610,000, another $655,000 and another, $620,000.
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In Summary…
If you are in the market to buy property in Toronto….get a real estate agent. Get educated about how the market operates, what prices are actually worth, and learn how to make your home buying dreams actually come true. Who pays the buyer’s real estate agent’s commission? The SELLER. Have questions about buying? karyn@homesweetkaryn.com❤️