Homebuying

This bidding war shows just how crazy the GTA housing market is

By: Dominic Licorish on December 21, 2016

Toronto’s housing market is fabulous right now — for sellers. Pretty much anyone selling a house will be able to get more than they’re asking for. One in Vaughan, however, may have set a new bar for ridiculous bidding wars this week after it sold for $1.1 million — a massive $400,000 over asking price.

The 2,670 square foot, detached home near Dufferin Road and Steeles Avenue was deliberately priced low to attract buyers. Needless to say, it worked. Even with the bitterly cold temperatures and the holiday season, a mind-boggling 800 prospective buyers visited the house over three days.

The house also hadn’t been renovated in more than 30 years, and real estate agent Steven Atsaves told the Toronto Star there was no plan to patch it up.

“I purposely put it for sale without renovating or painting it,” he said. “If you renovate or paint it, we're going to go into the spring market by the time we put it up, and then we're going to have a lot more competition as well and the risk of the market turning.”

Instead of showing a furnished, ready-to-live-in home, the house was bare, basement unfinished, and a kitchen that looks like it belongs on the set of an 80’s sitcom.

The large house appealed to buyers that wanted to get in cheap and create their own dream home, instead of buying something that was finished and ready to go.

It’s definitely an interesting approach to selling a home, but is it really worth paying $1.1 million for a suburban fixer-upper?

Either way, this likely won’t be the last home to go more than 50% over asking price if the current market is any indication.

Comments