For houses priced in the ‘sweet spot,’ bully bids proliferate
When a semi-detached house in the central Toronto neighbourhood of Davisville hit the market last week, the bullies immediately began to circle.
“We didn’t even make it to offer day,” says Patrick Rocca of Bosley Real Estate Ltd., who listed the house with an asking price of $699,000.
Four bullies signalled interest before the day and time scheduled for reviewing offers. Mr. Rocca says the house is move-in ready, with parking, on a good street. In some cases, homeowners turn the bully offers away but this time the sellers decided one offer was too good to pass up. The house sold for $911,000, or $212,000 over asking.
Houses above that level sometimes receive more than one offer but the contests are less fraught. A detached house on a coveted street in Leaside sold for $1.5-million, or $230,000 above asking, last week after Mr. Rocca listed it for $1.299-million. “People do crazy things on that street.”
Downtown, a Victorian on a cul-de-sac in the Annex had an asking price of $1.595-million and sold for $1.625-million after five days on the market. Another Annex house at 38 Wells St., near Dupont and Bathurst, sold for $1.745-million, or 117 per cent of the asking price of $1.495-million.
Buyers who are willing to pay $100,000 to $200,000 over the asking price are not uncommon.
Sold as a reno project, North Toronto home goes $176,000 over asking
23 CARDIFF RD., TORONTO
ASKING PRICE $699,000
SELLING PRICE $875,000
PREVIOUS SELLING PRICE $312,500 (1997)
TAXES $4,819 (2013)
DAYS ON THE MARKET Six
The Action: This detached house was not modernized, so it was priced under $700,000 as an incentive to buyers, especially to those looking for a renovation project. More than 100 shoppers sauntered through the open house and 15 returned with their desired purchase price.
Oh boy, there is a lot of easy money.