Unicorn of Investment Properties Sells Under The Radar
You’re a damn fool if you don’t go to market when selling your Toronto home (unless you’re a covert CSIS operative or something). You’d expect a company who profits from selling peoples’ homes to say this so I appreciate you being a bit skeptical about what I’m about to say. I don’t really care actually, if you’ve read this blog you know that this is a no BS zone and we spit the truth and nothing but the truth.
We get it…the idea of not having to deal with getting your home ready for sale is appealing but is it appealing enough for you to leave $100K in cash on the table? This is what may have happened to a home recently listed in Toronto. Because of the Real Estate and Business Brokers Act I cannot mention anything about the specific listing Broker or the actual home so I’ll do my best to describe the situation.
An out-of-area REALTOR recently listed a house and immediately changed the status to SOLD CONDITIONAL. Meaning, she sold it under the radar to a random buyer in a secret deal. Great for the BUYER because it likely sold at list price but is valued at, at least $100K more. A detached TRIPLEX that would yield positive cash flow with a million dollar purchase price and 25% down. The home has three beautifully renovated apartments, parking, and laundry in each unit. The freaking unicorn of investment properties. This definition of a turn-key property would have had a line up around the block of buyers from investors with all levels of experience, renovators looking to convert back to single family or ME who would have bought this place and lived mortgage free. (see now you know why it’s really got under my skin…this was to be MINE!)
I wish I could show you the property details but I just can’t. We’ve got enough heat from the regulatory bodies due to our stance on open data and Real Estate.
Why a Fool?
Money is fairly easy to borrow for qualified Buyers in a good cash position, inventory is VERY LOW, and the streets are crawling with HGTV fueled rookie investors looking to become the next Donald Trump. Investors are trading their high cap rate expectations for higher quality multi-residential units with more secure tenants. A good trade off for the long term. So if you have one of these properties don’t let some lazy REALTOR convince you to sell under the radar and pocket the quick commission. For goodness sake, GO TO MARKET.
Investors are trading their high cap rate expectations for higher quality multi-residential units with more secure tenants.
If you offer your investment property (or your home) for sale on the open market (aka our MLS system): You will most likely get more money than you expected. Any money you think you’re going to save on commission or effort saved on prepping for sale isn’t worth the risk. Don’t worry, we get that commissions are flexible. Just ask us.