Under Asking: “Don’t rush—wait to buy the right property.” Three agents explain why they went down in price

As buyers wait for the Bank of Canada to finally lower its sky-high interest rates later this year, Toronto’s real estate market remains in the doldrums. The average sale price for a GTA home in January is down year-over-year, and many listings are sitting on the market for months. That means there are deals to be had by those willing to outlast the high-interest landscape. Here, three agents representing three different properties explain why they settled for less.

Related: “Buyers are calling the shots these days.” Three realtors on why they sold at a discount

Rosedale: Glen Road

The place: A two-storey box within walking distance of Evergreen Brick Works Listing price: $2,528,000 Sold for: $2,438,000 Date sold: January 18, 2024 Bedrooms: 3+1 Bathrooms: 4 Size: 2,500 square feet Real estate agent: Merad Safaian

“Before I came on board, the owners tried listing this home three times with three different agents, without any success. To boost the value of the property, we added a parking pad in the front yard and upgraded the interior lighting. While my clients had previously listed around the $3-million mark, I listed lower, at just over $2.5 million, to generate buzz.”

“With this new price, we didn’t get many showings, but we did quickly get two serious offers at about $2.2 million. A bidding war then pushed the price up, and we accepted an offer of $2,438,000—which was $90,000 below our listing price but close enough to my clients’ target for them to be happy.”

“Inventory is low right now, and many of the houses on the market are in poorer condition. There are discounts out there, but I think buyers shouldn’t rush. Instead, wait to buy the right property—and to hold on to it.”

Roncesvalles: Macdonell Avenue

The place: A two-and-a-half-storey semi in the heart of Roncesvalles Listing price: $1,750,000 Sold for: $1,725,000 Date sold: January 25, 2024 Bedrooms: 6+1 Bathrooms: 2 Size: 2,230 square feet Real estate agent: Monte Burris

“This listing is a big semi in a deep lot, with plenty of space to add a laneway home. That’s why we knew it would get lots of attention. When I looked at comparable homes, I figured $1.75 million was reasonable market value, and my clients were happy with that. We listed at that price, fully expecting to receive lowball offers given the slow market.”

“We got a flood of showing requests as soon as we went live. Within two days, we received an offer way below asking. My clients weren’t interested, so the buyers countered with an offer only $25,000 below the list price—with no conditions and a closing date of my clients’ choosing. That sealed it.”

“We were lucky that this deal closed so fast, but bargains can still be found in properties left over from the inactivity of the fall and winter seasons. Many of them don’t have offer dates and have fallen through the cracks, so intrepid buyers should be able to snap them up.”

Leslieville: Rushbrooke Avenue

The place: A three-storey freehold townhouse with a private terrace Listing price: $1,228,000 Sold for: $1,210,000 Date sold: January 26, 2024 Bedrooms: 3 Bathrooms: 3 Size: 2,000 square feet Real estate agents: Meray Mansour and Mary Jo Vradis

“Market conditions are changing on a week-by-week basis, so it’s important to price a home accurately,” says realtor Meray Mansour. “Buyers aren’t willing to compete in bidding wars these days. Using a nearby detached home that just sold for $1.6 million as our benchmark, we figured the sweet spot for our townhouse was a little over $1.2 million—especially since it didn’t have any parking.”

“Over 11 days, about 60 people walked through the home. A couple showed some strong interest early on, but they didn’t make a move. And then, in late January, we got two offers below asking. One buyer was willing to improve their bid, and we sold at $18,000 under the list price.”

“A lot of house hunters are trying to make lowball offers, but they need to do their research first. If a property is listed at or close to market value, then an under-asking bid is just wasting everybody’s time. Buyers shouldn’t get distracted by the prospect of winning a deal. You’re likely going to come out on top bidding at the list price.”

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