What Is A “Dog Unit?”

Condos

3 minute read

September 15, 2014

You might be surprised to find out that it’s not a condominium specifically designed for a dog, which isn’t that far-fetched (no pun intended…), since dogs do have their own houses!

A “dog unit,” in real estate terms, is a really bad unit that a developer will try to unload to an unsuspecting buyer off floor plans, which believe it or not, typically happens during the “VIP Pre-Sales” when most buyers think they’re getting a deal.

What’s a good example of a dog unit?

Take a look at this video below, and you’ll realize that a dog-unit like this could only be sold off floor plans, when the buyer can’t visualize what surrounds it…

Ah yes, a classic dog unit!

Overlooking a dirty alleyway, from the second floor, only 3-4 feet from a warehouse building.

That is the very definition of a “dog unit.”

Notice how most “artist’s renderings” of condo towers only feature the tower itself, and not the buildings that surround it.  Suffice it to say that had the scale model in the show room featured this particular unit overlooking an alleyway, the person who bought this off floor plans probably would have proceeded differently.

Use your imagination, and I’m sure you can think about what else qualifies as a “dog unit”:

1) Units overlooking the alleyway
2) Units with terrible floor plans, and wasted square footage
3) Units cut into by the elevator, thus risking noise transfer, and probably poorly laid-out.
4) Units with obstructed views, or other obstructions adjacent (ie. a few feet from another building or obstacle)
5) Units next door to the party room, the janitor’s room, or below the gym (where people drop weights…)

I think you get the idea.

A “dog unit” is a unit that most buyers will discount, and many buyers wouldn’t consider purchasing.

And as I said at the onset, many developers get rid of these dog units by being sneaky, and dare I say, pretty damn smart about it!

For example, what’s the best way to sell a $20 bill for $200?  Well, that’s tough to do.

But how about selling a $30 bottle of alcohol for $300?  Well, that’s simple.  Just make people feel special for the sheer right to purchase it!  Make them line up outside a nightclub, when the club is half full, then make them pay for a “VIP Booth,” which is actually tucked away from the dance floor, bar, bathrooms, and other points of interest, and then make them feel special for the privilege to be ripped off.

That’s how developers sell dog units.

The “VVVVIP Launch” isn’t as advertised.

The “Friends & Family” launch usually contains zero friends, and zero family.

The “First Day Sales” event is definitely not the first day of sales.

I remember getting a flyer in the mail back in 2010, or thereabouts, advertising units “as low as $230,000” at a project on Gladstone Avenue.  The building had ONE unit priced at $230,000, which was bought by the developer’s family, and by the time the “pre-pre sales” opened, only units priced in the high $300’s were left.

But the lineup was out the door, and the project sold out.  At least the units displayed for sale sold out that day, as I would guess, they were more than likely the dog units.

I’m sure a few dozen other, better units magically appeared a few weeks later, once the first batch of sales had firmed up, and thus the units that were harder to sell, had already been sold.

Reading a condo floor plan is like reading braille, and only an expert can do it.

But add in the fact that the scale models, and artists renderings don’t take into account where the units are situated within the building, and what exists immediately outside the building, it’s no wonder so many dog units get moved by the developer with ease…

Written By David Fleming

David Fleming is the author of Toronto Realty Blog, founded in 2007. He combined his passion for writing and real estate to create a space for honest information and two-way communication in a complex and dynamic market. David is a licensed Broker and the Broker of Record for Bosley – Toronto Realty Group

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6 Comments

  1. AndrewB

    at 9:23 am

    There’s a dog unit here in my building on P1 where the ground level loft style units are. The 101 unit is situated right beside a high traffic door that is loud from closing and opening, as well as people. It’s also directly across the hall from the garbage room.

    Bless those owners in resale.

  2. AndrewB

    at 9:29 am

    What I think isn’t right also, is that developers release units in waves. All available units should be shown at all times and have none of this “new exclusive release of new floor plans!”

  3. FritoBandito

    at 10:44 am

    In the case of that unit though, the buyer would have to have been either clueless or maybe an out of town investor, as both of the other buildings were already there when it was built. You could see exactly what you were getting, whether the renderings showed the other buildings or not.

    I feel sorry for the people in the blue building who formerly enjoyed an unobstructed view for years, only to have their units become dog units when that other building shot up. Their views are now looking in at other units, at a very close proximity no less.

  4. Libertarian

    at 12:09 pm

    David, isn’t this one of the reasons why you’ve always recommended to never buy pre-construction?

    As FritoBandito suggested, I would think that an out-of-town investor purchased the unit to rent out. If that investor got the unit on the cheap, it’s possible the investor is actually making money on the unit. I’m guessing that somebody desperate enough would be happy to live there if the rent is low enough.

  5. George

    at 2:35 am

    My old apartment was one door over from the garbage room door (which looked identical). At least once a month I would nervously listen to someone twisting my door handle late at night, trying to access the garbage room. Never again will I live next to the garbage.

  6. Amelia Haynes

    at 8:37 am

    As a rental, there is a place for the dog unit.

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