Toronto Realty Blog Quick Hits!

For those people who don’t love 2,000 words on one subject, this is the blog feature for you!

And along those lines, if you don’t think you’d like a 30-minute video with random ramblings about real estate, from a guy with undiagnosed ADD, who goes off on any and every tangent possible, very few of which are actually related to real estate, then you definitely would not like my weekly “Pick5” feature.

As for “Quick Hits,” it’s a good way to cover a variety of topics, none of which are burning, but all of which are worth nothing…

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Turn Back The Clocks!

A reader sent me this video, and I’ve been trying to find the right time, and theme, in which to feature it.

But in lieu of writing an entire blog post called, “Get Ready To Be Depressed,” I figured I’d just show it to you here:

Flash back to 1988, and the video starts:

“There was a time when $220,000 was enough to buy the BEST house in town!”

Really?  When was that time?  Like, in the 70’s?

Thick moustaches, linoleum tile, and poofy-shirts aren’t the only reason to watch this video.

If you think real estate prices are nuts today, perhaps a quick trip down memory lane to when “People were passing up promotions to Toronto” because the average home price hit $220,000, might be exactly what you need.  Or not…

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How NOT To Sell A Home?

A house came up for sale in the midtown area back in August for around $2.5 Million.

It was tenanted, which I found odd, because so few properties of this type, in this area, were tenanted.  But whatever, it happens.

I had interested buyers, so I went to book a viewing, but the viewing was rejected by the tenants.

I went to book another viewing, for another day and time, and that viewing was rejected as well.

When my third viewing was rejected, I called the listing agent, who said, “Tenants very tricky!”  No kidding.

I asked him if there was a particular day or time that they would allow a viewing, and he said he didn’t know.  Great, very helpful.

He told me, “Keep trying to book.  Keep trying.”  Excellent.  Great plan.

Before I went to attempt another booking, however, I asked him when the tenants’ lease was up.  He told me it was February, which I found odd, because I don’t know a single buyer out there that’s looking for a six-month closing!  I’d have thought the sellers would strategically list this property in October, to try to line up a potential closing with a vacancy.

“You assume tenant!” he told me, when I questioned his 6-month closing.

Then amazingly, he went on to explain that the tenants had a unilateral right to extend the tenancy by two years, within 30 days of the expiration of their lease on February 1st, 2019.

“Will they be extending the lease?” I asked.  The agent simply said that he didn’t know.

This was ridiculous.  It was the most insane way to sell a $2.5 Million house!  What kind of buyer is interested in a family home, that’s tenanted for another six months, and could be tenanted for yet another 24 months – but wouldn’t know about the subsequent 24 months, for another five months?

I asked him, “Why doesn’t the seller buy out the tenant?  Give them $15,000 to vacate by, say, November?”

He told me, “Too much money.  Too much!”  And that was the end of the conversation.

So these sellers have a $2.5 Million asset, and have put themselves in an absolutely impossible position to sell, but won’t spend the equivalent of 0.6% of the asset value to ensure a sale?

It’s bonkers.

And oh yeah, the house is still available for sale – well into its second month now.

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Gotcha Moment?  Or Catch-22?

I have a listing for lease right now – a 2-bedroom, 2-bathroom unit, 863 square feet.

I received a call today from an agent who asked, “Would your clients be open to leasing to four single guys?”

I paused.  And then thought about it.

In lieu of slowing down, and asking, “Would you please repeat the question,” like a child in a spelling bee, trying to buy time, I instinctively said, “I can’t speak for my clients, you’d have to put a formal offer on paper, and they would make the decision.”

Then I thought back to the blog post I wrote a couple months ago, where one reader suggested that this was a “giant waste of everybody’s time.”

Let’s be honest here – no landlord in Toronto wants to rent a 2-bedroom condo to four single guys.  I get it – the guys want to save on rent, real estate is expensive, rental prices are increasing, etc.  But does a landlord want to lease to four single guys?  Not a chance!

Feel free to argue with me, but your argument will be flawed.  These would be four single guys, likely all early-20’s, and I can’t think of a worse set of tenants for a 2-bedroom condo.

But can I say that on the phone to the other agent?  No.  I’d be discriminating.

Part of me thought that this was a “gotcha” moment from some angry blog reader.  But whatever it was, it certainly put me in a classic “damned if you do, damned if you don’t” situation.  It’s a catch-22.  I can’t tell them “no,” because I’d open myself to a discrimination claim, but telling them “yes” or “maybe” is simply wasting their time.

I ask you: what should I have done?

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Cha-Ching!

I had to laugh at this article posted in the Toronto Star the other day:

“This Condo Builder Has Collected Millions In Deposits And Hasn’t Built Anything”

A 35-year-old “developer” of a pre-construction condo in Ajax is facing at least 14 different lawsuits, having taken deposits on multiple would-be condos that were never built, and didn’t even start construction.

The reporter, Brendan Kennedy, absolutely knocked this out of the park!

The article isn’t just a summary of recent events, like much of the day-to-day news that we read, but rather went in depth, and traced this “developer” and his failed business ventures back five years.  The fact that people lined up to put down deposits on a condo being built by this guy, with this kind of track record, is downright scary.

This is a must-read.  Bookmark it if you don’t have time to read it now.

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“Agent Must Be Present For Showings”

I’m not a big fan of this, but of course, there are valid reasons why a listing might come with these instructions.

If a property belonging to a celebrity comes onto the market, there’s always a chance that star-f*ckers will want to book viewings simply to go inside.  There’s also a risk that people would invade that celebrities privacy, take photos, or even souvenirs.

If an extremely high-end property is on the market, and there will truly only be a handful of viewings, a listing agent might insist on being present to qualify prospective buyers, and to talk shop with the buyer’s agent.  And by “high-end,” I mean over $8,000,000.  There are only a few buyers in the city for properties like those, and I don’t see an issue with the listing agent being present.

In all other cases, however, I find the listing agent’s presence to be entirely unnecessary.

If a seller is anxious about “strangers” going through their home, then I sympathize.  But as a listing agent, I tell them, “I have never, once, in fourteen years had anything go missing during a showing or open house, but, if there’s something here that you’re concerned about, then take it with you.”

I do believe that it’s the listing agent’s job to coach their sellers, and get them to take the best course of action.  A seller insisting that a listing agent be present for all showings is forgetting that some properties get 50-60 showings, and the listing agent simply can’t be there for all of them.  It’s not necessary, and it’s counter-productive, since buyers and buyer agents will spend more time in a home when they’re alone, they’ll speak to each other freely (without fear of the listing agent overhearing), and they’ll be more at ease.

Isn’t that, as a seller, how you would want buyers to feel?

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Election Time!

No, I’m not going to tell you who to go out and vote for in this column, although that wouldn’t be out of character for me…

But rather, do you believe in the myth that one shouldn’t sell their home during an election, because the “FOR SALE” sign gets lost, among all the lawn signs for political candidates?

I call this a myth, because personally, I don’t believe it.

And not to sound ageist here, but it’s usually the old(er) agents in the industry that think this way.

When I started in the business, listing your home during an election was an absolute no-no.  It was like listing the week before May-24 weekend; you tried to avoid it at all costs, but if you had to, you had to.

This was back in 2004, however, and “the internet” still wasn’t universally accepted as the #1 advertising medium for real estate.  The ever-popular lawn sign was still king.

Can you imagine?  You younger folks, can’t, I know.

Imagine not listing your property for sale because you thought that passer-byers, lookie-loos, and Johnny-come-lately’s wouldn’t see the lawn sign?

I overheard an agent in my office the other day in casual conversation saying, “We’re trying to get the property onto the market before Thanksgiving, otherwise we’ll wait until after the election.”

She didn’t specify why, but I have a sneaking suspicion…

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Exploiting……………who, exactly?

Last, but certainly not least, I haven’t drawn a moustache (or worse…) on a person in an outdoor advertisement since I was 9-years-old.

But I think the person who drew on this bus shelter is likely over 25:

Do you give the suspect points for creativity here?

They managed to fit three letters in the place of two, and it fits!

Is it the job of the man pictured in the advertisement to “keep Toronto affordable?”

Are Realtors to blame for Toronto’s housing woes?  More so than supply and demand, low interest rates, foreign buyers, lack of low-income/affordable housing being built by the government, barriers to new condo development, et al?

That was meant to be rhetorical, but I won’t stop you from answering…

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Have a great weekend, everybody!