Under Asking: “Buyers will pay later if they don’t act now.” Three agents share why they sold for less

The Bank of Canada is expected to slash interest rates in June as signs across the economy point to a sustainable level of inflation. To get a jump on the competition, house hunters who’ve been sidelined for the past two years are flooding the market in droves. Simultaneously, an abundance of housing stock still sitting cold from the fall is now getting re-listed at a discount. That means savvy buyers can acquire properties on the relative cheap before prices climb, likely by the end of summer. Here, three agents representing three different properties explain why they sold for less.

Related: “This winter, don’t rush—wait to buy the right property.” Three agents explain why they went down in price

King West: Laidlaw Street

The place: A three-storey condo townhouse with a rooftop patio Listing price: $910,000 Sold for: $905,000 Maintenance fees: $431 per month Date sold: May 4, 2024 Bedrooms: 2+1 Bathrooms: 2 Size: 1,000 square feet Real estate agent: Rahim Jaffer
Photography by: Daniel Molina, NorthSouth Photography

“This turnkey was perfect for a first-time buyer: it was in a bustling neighbourhood and came with relatively low maintenance fees. A comparable unit nearby had recently sold for $905,000, so my clients were hoping to get $900,000 at minimum. In early April, we hit the market with a selling price of $799,000 to create buzz.”

“During the first week, the property received 35 showings and multiple offers. But the highest bid—$885,000—was quite below my clients’ baseline. We decided to aim higher and re-list the property at $910,000. Once again, we attracted a lot of attention. After another 30 showings, we received an offer for $905,000. That was enough, and my clients were happy to accept.”

“The market is definitely getting more competitive this spring, particularly around the $1-million range. When buyers find exactly what they’re looking for, they shouldn’t hesitate to make an offer. Several potentials, including one who had visited here three times, didn’t indicate their true interest to me until it was too late. That’s why buyers should act swiftly or risk paying more for the same type of home a couple of months down the line.”

High Park: Marion Street

The place: A three-storey detached steps from High Park
Listing price: $1,899,000  Sold for: $1,855,000 Date sold: May 4, 2024 Bedrooms: 3+1 Bathrooms: 3 Size: 2,500 square feet Real estate agents: David Bailey and Tracey Logan
Photography by: Birdhouse Media

“This home was in a desirable neighbourhood, but it came with a catch. Because it was split into two separate units—one on the main level and the other upstairs—it required extensive renovations to reclaim its single-family status. We first listed it last fall. At that point, the sector was slowing, so we priced it at market value: $1.9 million.”

“Over the next two months, we got 32 showings but not a single offer. Keeping in mind the added cost of renovating, we opted to re-list in April at $1,849,000—$50,000 less than our original ask. This time, the house got more activity. Within 11 days, we’d hosted about 30 showings. A young family ended up with the winning bid.”

“Being willing to look past the home’s challenging layout meant the purchasers were able to acquire a detached in Roncesvalles for a $44,000 discount—a big deal. And there are plenty of other bargains out there right now. Although these diamonds in the rough will cost a bit more in the short term, they’ll pay off as an investment in the long run.”

Cabbagetown–South St. James Town: Sumach Street

The place: A red-brick semi with a built-in garage Listing price: $1,298,000 Sold for: $1,252,000 Date sold: May 5, 2024 Bedrooms: 3 Bathrooms: 2 Size: 1,500 square feet Real estate agent: Stephen Pryce
Photography by: Wadi Ejiwunmi

“Built in the 1970s, this property has not changed ownership in 40 years, a rarity for Cabbagetown. Last fall, we listed three separate times, at prices ranging between $1.3 and $1.36 million. We got plenty of visits to our open houses, but purchasers weren’t making any offers. Seeing the signs as we approached the new year, my clients decided to pull the listing until spring.”

“Through all those showings, though, we did receive one piece of valuable, recurring feedback: the interior’s dark-red and green palette was a deterrent. So we repainted with white to achieve a more open and airy feel. In April, we put the place back on the market at just under $1.3 million. Three weeks later, someone came in with a lowball bid. After some negotiation, my client accepted an offer at $46,000 under asking.”

“Since the city has a lot of inventory stocked up, would-be owners have plenty of options to choose from. And while interest rates are going down soon, they’re still relatively high, so buyers are going to be picky. This is why it’s important for sellers to listen to criticism, even if it’s just about some old paint.”

Are you an agent who recently sold for under asking? Send your story to realestate@torontolife.com.