Low price likely means it needs some work
#GTAHomeHunt is a weekly series from the Star that gets into the details of real estate listings in Toronto and the Greater Toronto Area. Have a tip? Email us at social@torstar.ca
Price: $749,000
Neighbourhood: Crescent Town — East York
X-factor: This detached two bedroom, one bathroom home in the east end of the city could be a great spot for a small family thinking of moving out of a condo.
The property is close to transit — about a 10-minute walk to Main Station, near the Danforth Village area and tons of parks and shops nearby.
The home also has a great lot size and in a couple of years could be very valuable as it is centrally located in Toronto. It also could be an ideal fixer-upper for someone that sees the potential in the area and is interested in investing their time and money.
If you’re a first-time buyer, you might be wondering, is this a good deal? We brought in our expert, real estate agent Othneil Litchmore, to gain a better understanding of why this property costs what it does.
Why is it priced this way: The home at 24 Newman Ave. is listed for $749,000. A similar but bigger house at 43 Meighen Ave. — in the same neighbourhood — sold for $1 million back in August.
So why is this listed so much lower?
Litchmore says it’s because of size and its condition.
The current listed price for the home could also just be because the owner wants to hit a certain target.
Despite today’s hot housing market, this home has been listed for more than 20 days, another reason why Litchmore believes the price is negotiable.
“The fact that a home is on the market for more than 20 days in this very tight real estate market means it has big deficiencies that your average buyer can’t look beyond, and price could be a factor with this one,” said Litchmore.
Litchmore notes that the pictures of the house are also not as attractive compared to other similar detached homes. For example, there’s a cigarette ashtray laying around.
“The biggest issue is the condition (the home) is probably in,” said Litchmore. “I suspect that there might be issues around air quality and stuff like that. If it was in better condition, and renovated, that would be a good price.”
Due to these factors, Litchmore thinks the house will sell for less. Realistically, he believes it could sell for $680,000 to $720,000, but that could depend on how long the seller is willing to wait it out.
The home also has vinyl siding, which is less desirable to many buyers in the city. The home last sold for $239,000 back in 2006.
Tips to finding places like this: For homes that have been listed for a while, like this one, prices are more likely negotiable, Litchmore advised. In many cases that means getting a property at a lower price.
Litchmore also suggests that while a house may be out-of-date, the property it’s located on could be worth a lot, especially if you have time to fix it up.