Toronto Loft Conversions

Toronto Loft Conversions

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Modern Toronto Lofts

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Unique Toronto Homes

More than just lofts, I can also help you find that perfect house. From the latest architectural marvel to a piece of our Victorian past, the best and most creative spaces abound.

Condos in Toronto

Condos in Toronto

I started off selling mainly condos, helping first time buyers get a foothold in the Toronto real estate market. Now working with investors and helping empty nesters find that perfect luxury suite.

Toronto Real Estate

Toronto Real Estate

For all of your Toronto real estate needs, contact Laurin. I am dedicated to helping you find that perfect and unique new home to call your own.

 

Tag Archives: disappointment

Novel real estate marketing not without risks

Mark Weisleder – Toronto Star

Recently, the sellers of a home in The Beach listed their home for sale with a reputable agent. They were aware that buyers were starting to shy away from multiple offers as a result of a collective disappointment in the entire multiple offer process.

One complaint was that there were suspicions that the listing salespeople were providing unfair advantages to their own buyers, from whom they could obtain a higher commission.

Another complaint was around the practice of listing a property, but indicating that no offers would be accepted for five days, in order to permit interested buyers to conduct inspections before submitting offers. Sellers hope that this will create an atmosphere for multiple offers. However, there were examples where buyers would bring in pre-emptive offers before the five day period, and sellers were in some cases accepting them.

The agent in this case suggested a novel marketing approach. The property listing indicated that offers would not be accepted for six days and that the asking price would be $539,000. The house was priced, after a careful review of comparable prices in the neighbourhood, and the sellers hoped that with multiple offers, they might obtain $550,000 to $560,000. The realtor asked them what their “dream price” would be and they indicated $590,000.

Accordingly, the realtor included a note on the listing that simply stated “Buy tonight, $590,000” and on her “For Sale” sign invited buyers to call for the “buy tonight price.” This appears similar to how products are sold on eBay, where the consumer is given the choice to either bid on the item in the online auction or decide to “buy now” at a set price.

In my opinion, the advertisement of a buy tonight price would probably not be enforceable by a buyer, even if an offer came in at that price. It could be argued that this was still an “invitation to treat” by the seller, thus not binding. The Statute of Frauds in Ontario requires that all real estate agreements be in writing and signed by the parties. In addition, no other terms were mentioned in the advertisement, so if a buyer brought in a full price offer, but with a closing date two years from now, and with a very low deposit, this would clearly not be what the seller had intended. In addition, what would occur if two buyers came with similar offers on the same evening?

Still, a buyer did come in and presented an offer of $590,000, which was accepted by the sellers. The buyers were very happy to avoid the multiple offer process and the sellers were very happy to obtain their price.

The multiple offer process is not easy. You require an experienced real estate salesperson to guide you through the process.

For a seller, it means understanding not only the prices that other properties have sold for, but also what the mood or pulse of the market is at that exact point in time, so that a strategic marketing plan can be put into place to obtain the maximum price.

For a buyer, it mean understanding what the fair market value of the home is and not getting caught up in the emotion of the bidding process, to ensure that you only spend what you can afford.

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Contact Laurin Jeffrey for more information  –  416-388-1960

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