The spring market was crazy HOT in Toronto and the GTA. Believe it or not, houses in this area sold for ($100,000 – $400,000+) way, way OVER asking! The real estate market was nuts!! The average house in Toronto was valued at over a million dollars and we in the suburbs experienced a ripple effect.
Houses sold unconditionally… without inspection, without staging… cars parked down the streets, people lined up outside of homes… C R A Z Y !! It reminded me of the mid-1980s when house-flippers drove prices into the stratosphere.
First time home buyers were constantly out-bid on properties… and if they were lucky enough to buy one, I’m hearing now that many are walking away from those properties because:
1. they can’t afford to bring them up to code (per after-purchase home inspection)
2. having been pre-approved for a mortgage, they got into a bidding war and no longer qualify for a mortgage based on the current market value
3. due to becoming cash poor, they’re unable to turn it into their ‘dream’ home
These buyers would sooner walk away from a $100,000 downpayment and pay a fine than to be stuck with a money pit. This has caused problems for the sellers who purchased another home. I see potential lawsuits. I’ve also seen properties with ‘For Lease’ or ‘For Rent’ signs as a result of buyers walking away. What a nightmare!
On April 21st, a law was passed to deter foriegn investers from speculating and driving house prices up in Ontario (specifically Toronto and the GTA). Now, the market is settling down, prices are closer to where they should be and yet, sellers still think that they can ride the gravy train… by not investing in home staging. The pendulum is swinging the other way folks! Where you once got away with selling your properties ‘as is’ and received well over asking for them, you may now be getting ‘low-ball’ offers. Remember… buyers expect to be WOW-ed and if your home’s current condition doesn’t do that, it will be reflected in their offer!
A simple consultation may be all you need to get your home ready for the market.
Let Groovy Chick Redesign and Home Staging help you get there and to set sail!