MortgageCalculator.ca is the industry’s leading Financial Planning Tool that is designed to help real estate buyers compare current mortgage rates of multiple Canadian financial institutions and allow them to accurately forecast the costs associated with purchasing of Real Estate.
Sam Kamra, a Realtor, private lender and a co-founder of MortgageCalculator.ca, shares his insight into the present state of Canadian Real Estate market.
While Canadian Real Estate Market is still booming for the last decade or so, even now it is very much possible to find an unheard-of deal.
No doubt, the year 2019 was a bit surprising for both sellers and buyers. We regularly see many detached homes that get initially listed unrealistically high and then end up getting sold at a significantly discounted price. So, this can be the right time to get a hold of perfect housing deals.
Everything Begins with a Great Deal: Facts & Figures
Check out some REAL numbers to believe in such astonishing deals in 2019 for Greater Toronto Area, Canada:
- Two side-by-side brand new homes in Toronto that were listed as a single listing under Power of Sale at $1,950,000 were instantly sold at a whopping price of $848,000 in less than 1 day. Literally, somebody just hit the jackpot with $1,102,000!
- Another detached house in Richmond Hill initially listed at $3,000,000 was on the market for a year and a half until the listing price was reduced to $1,890,000. Later, some lucky buyer got it for $1,500,000 at a massive 50% discount!
- One more stunning deal took place at Yonge & Finch, Toronto’s affluent North York district. A beautiful detached house was listed for $2,400,000 back in July 2019, which was then sold for $1,375,000 after being on a market for less than 60 days. New homeowners must be happy with this steal of a deal purchase at 69% off the listing price.
How to Steal a Deal? Key Takeaways
Look out for Days on Market: Watch for houses that have been listed for a long time. There must be a reason why they have not yet sold, so you can land a great deal therein.
Make Low Ball Offers: Bid lower than what sellers are asking for if you are not in a rush to buy. In various scenarios, a low ball offer can prove to be a good home buying strategy.
Consider buying Power of Sale Properties: Foreclosure homes are the ones where homeowners are in default of paying regular mortgage payments and a lender has a right to sell it to recover their equity. So, keep an eye on foreclosure listings, as usually these properties are priced at the market value or even lower since the bank wants to sell them quickly.
Haunted or Stigmatized Properties: Any house with an unpleasant history behind it can easily turn down interest of many prospective buyers. Just don’t give a ghost a chance and you can end up buying a good deal.
Estate Sales: This a sale of the property owned by a person who is recently deceased. Due to emotional factors involved in this process, you can potentially get a drastically reduced price for a quick sale.
Grow Op Properties: These are the properties that were used for the production of marijuana. As a wise real estate investor, consider buying these properties as your first or next fixer-upper project.