COVID and the housing market | Page 110 | GTAMotorcycle.com

COVID and the housing market

mimico_polak said:
How the hell is that legal? I mean as a seller I see the appeal but what buyer in their right mind would do it.

Here’s a higher ‘offer’ so what you going to do?

I’d counter with a lower offer. **** that.
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Almost anything is legal in a contract as long as both sides accept. Say a buyer wants to pay 900 and seller wants 1M. Neither is willing to move enough on price to come to an agreement. This clause gives the seller one last chance to get their 1M before they sell the house for 900. The alternative is negotiations fall apart and the potential buyer never gets a chance to buy the house for 900.
 
GreyGhost said:
Almost anything is legal in a contract as long as both sides accept. Say a buyer wants to pay 900 and seller wants 1M. Neither is willing to move enough on price to come to an agreement. This clause gives the seller one last chance to get their 1M before they sell the house for 900. The alternative is negotiations fall apart and the potential buyer never gets a chance to buy the house for 900.
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Oh I understand the contract part of it, but don’t think I’d ever agree to it.

Then comes the ‘how long?’ 1…2…6 months? Does it work the other way if the market tanks in the meantime?
 
mimico_polak said:
Oh I understand the contract part of it, but don’t think I’d ever agree to it.

Then comes the ‘how long?’ 1…2…6 months? Does it work the other way if the market tanks in the meantime?
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I have heard 30 to 90 days for seller to try to get a better offer. If market tanks in the meantime, buyer is on the hook. If market rockets ahead and seller is unable to get a better offer, buyer gets the gain.
 
mimico_polak said:
Oh I understand the contract part of it, but don’t think I’d ever agree to it.

Then comes the ‘how long?’ 1…2…6 months? Does it work the other way if the market tanks in the meantime?
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Don't underestimate how much people want to buy a home right...
 
mimico_polak said:
Oh I understand the contract part of it, but don’t think I’d ever agree to it.

Then comes the ‘how long?’ 1…2…6 months? Does it work the other way if the market tanks in the meantime?
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But you already have a house and according to the real estate people you'll retire a billionaire. Everyone needs to get into the market so they can become billionaires too. Bid until you choke. Sell your kids into slavery. Sell a kidney and get rich.

Part 2, the reciprocal, what if the buyer's offer states they can withdraw or reduce their offer if they find something cheaper or more suitable?
 
GreyGhost said:
I have heard 30 to 90 days for seller to try to get a better offer. If market tanks in the meantime, buyer is on the hook. If market rockets ahead and seller is unable to get a better offer, buyer gets the gain.
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A crappy way of doing business but the buyer, IMO, doesn't get the gain. He just gets the fair negotiated price. If the property was worth more there would have been other offers and the price jack.

Let's stop this BS and have auctions on site with the real buyers present. No mystery telephone / internet buyers.
 
nobbie48 said:
A crappy way of doing business but the buyer, IMO, doesn't get the gain. He just gets the fair negotiated price. If the property was worth more there would have been other offers and the price jack.

Let's stop this BS and have auctions on site with the real buyers present. No mystery telephone / internet buyers.
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The lack of buyers does not necessarily indicate the property was not worth more. High transactional cost on real estate so if the negotiated prices is within 5-10% of market value, there isn't enough room for an investor to care and the pool of people that plan to live there and can come up with the money is limited. It's all only paper gains anyway until someone sells. It really doesn't matter if your house is up or down from your purchase price unless you are trying to sell it.

Auctions sound good to me. Our last house had 72 showings and that sucked. Clean it up once, sell it on saturday, move forward with life. Very few downsides from my perspective.
 
george__ said:
Don't underestimate how much people want to buy a home right...
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Yup. That is true.

Shockingly the 1.8M house nearby is still for sale. Maybe 1.5-1.6….maybe.

Appears to be a very young Asian couple that sells puppies out of the back of the their MB…seen them meeting with buyers a few times with a box of golden retrievers.
 
GreyGhost said:
EDIT:

Minor update on the house that they think has doubled in price in less than two years. Another house in the neighbourhood ~30% larger listed for the 100 less and sold in a day for the dreamers asking price. Dreamer has been up for six days. Realistically, I think the dreamer is at least 300 high. Their closest comp sold this spring for 500 less than they are asking. Craziness all around.
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Well, the dreamer did much better than I expected. Bought less than two years ago and sold for 600K over what they had invested in it. They got 400 over a recent comparable sale.
 
A house around the corner from me, which was a brand new build finished in October 2020, is up for sale for $620k.

Last June I was standing in that house as it was being built, debating on buying it for $450k, but decided not to. Assuming it sells for that, its an almost 40% increase in a year...

What a mistake.
 
Then you've got people like this knob. Agreed to sell his house to Toronto for 780 in 2019 so they can save an old tree. He agreed to a long close to allow time to raise the money. Now he says market value is up and he wants 900. He complains he will be homeless as 780 isn't enough to buy another house for his family. He conveniently omits that he lives somewhere else and rents this house out. I hope they take him to court to enforce the original contract and hit him with legal fees and city staff time required to deal with his greed.

 
Just came here to post the same thing as @GreyGhost … I wonder if he’d sell for lower if the values of properties went down.

‘I won’t afford a house for my wife and 6 kids as I have a second property and don’t actually live here.’

I mean I’d want more money too…but not sure how strong his case is.
 
Another new listing near me. They want 300K over what the very similar neighbouring house sold for in May. Not everyone believes the sky is falling yet. At this rate $2M houses are quickly going to become the new 1M and a huge proportion of detached dwellings will be there or above.

Near my old house in the burbs, mediocre detached dwellings (70's side splits) are over selling for over 1M now on collector roads. If someone knocks it down and puts up a monster, they will be over 2M.
 
So….minor update I guess in our hood…

House 1
Listed for 900k sold for 1.2 approx
On the Main Street at a stop sign
Bungalow
3-4 months ago
New windows
Filled in pool
Gutted interior
Painted exterior
New waterproofing

waiting to see when it’s listed again and for how much

C2926B80-351C-4A04-97AB-F8A1D6A688E9.jpeg

House #2
Off the Main Street (Credit Woodlands)
Side split
Listed for 1.8
Still listed after 1 month
 
mimico_polak said:
So….minor update I guess in our hood…

House 1
Listed for 900k sold for 1.2 approx
On the Main Street at a stop sign
Bungalow
3-4 months ago
New windows
Filled in pool
Gutted interior
Painted exterior
New waterproofing

waiting to see when it’s listed again and for how much

View attachment 50299

House #2
Off the Main Street (Credit Woodlands)
Side split
Listed for 1.8
Still listed after 1 month
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The smaller than it looked bungalow next to us, a corner lot sold about 10 years ago and belonging to an older widow it was dated. It went for IIRC about $500K. They buyer probably spent $125K for opening up the kitchen, new windows, roof, furnace, laminate in the rec room, stone everywhere, new entry and the expected bling. Re-listed for, again IIRC, about $850 K. It sat until he reduced the price and he probably made $100 K.

The new owners spent a ton on fixing water leaks that ruined the laminate, the floor tiles lifted and the place was generally speaking, a money pit for the first few years.

In the last few years the new owner has come out ahead. I'm sure this isn't a one off situation and will be repeated.
 
george__ said:
GTA rental is interesting. Basement rental units specifically asking that the tenants must be vegetarian :ROFLMAO:
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tbh I wouldnt mind living with shane
 
george__ said:
GTA rental is interesting. Basement rental units specifically asking that the tenants must be vegetarian :ROFLMAO:
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If the smells of cooking meat really turn some people off, and the smells travel throughout the house, then it makes sense. Kind of like my house, my rules.

When we were doing our house reno's and had to move out for several months, we did a short term rental at a place near Dufferin and Bloor. The owner would only rent to vegetarians or vegan's, because he was vegan and didn't want his cooking utensils and pots/pans to be used with cooking meat. He had pretty strict beliefs about how all animals and living creatures should be treated. We were fine with that and signed a several month lease with him. However...
This place was overrun with coakroaches of many types and sizes in all the different rooms. We were super ****** that he knew about them and didn't tell us until after we moved in and had to discover them for ourselves. First he said there were one or two he had seen in the past and then a few days later we discovered it was a full blown infestation he was trying to avoid because he didn't want to fumigate the house with chemicals. We told him if he didn't get a pest control company out there we would do it ourselves to sterilize all our things and the house and charge him for it and move out. And we did exactly that. But since he screwed us with his lack of honesty, we ended up living in 7 different places over 7 months.
 
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