2nd L/O signed up

[DanielSun 7]

So, I visited a seller last week, made a few mistakes when I was talking to him so i thought he was not going to sign up.

 

But he emailed me over the weekend and says he wants to go ahead with this. It's a nice little house, in a not so nice neighborhood. So I have to do a bit digging today to see what the statistics are for the area.

 

There are 3 challenges present for this deal:

 

1. The area is not under a lot of development, price has been stable. But the price of the house is above the average income in the area.

 

2. It's far from me, way too far. 1 hour drive from home, and impossible to get there after work. So I have to hire someone to do the ground work for me.

 

3. Buyers from my first deal can't be transferred because the first deal is in a great neighborhood

 

 

Details: house selling at 428k, rent is $1700/mo. I am looking to sell it in 2 years for $460k. with $600 rent credit.

 

So this is kinda a test-and-see case for me, I don't really know how well this is going to play out.

[Doug Pretorius (ON) 9]

Well done Dan! Where is this second property?

[DanielSun 7]

Congrats Doug on getting married.

 

 

in Toronto, west end, near Weston Rd. and Eglinton

 

this house is worth what it's priced at, the problem is that the average household income in the area is half of what is expected to be able to own this home. Should I market outside of the area?

 

 

Edit: I am taking a step back at this one, this might be more difficult to move.

[MichaelC 160]

Daniel, what is the median selling price of homes in the area? If this property is well above that then you probably should move on. But if not, let's not be too quick to prejudge it.

[DanielSun 7]

I don't know whats the average price of houses in the area, but the average property value (including town houses, apartments) in that large area is about $290k. But the reason is that a lot of Town House and apartments there, this house is definitely a quality, solid house.

 

 

This morning on the news, right at the intersection of the house, there was a shooting, 1 dead 2 wounded....LOL, I was like "DARN IT!" Mind you Toronto is one of the safest city in North America, so shooting doesn't happen often.

 

Edit: I just checked out the location of the shooting, right across the street from where the house was. crap, this might be the sign that I should pull out.

 

http://www.cbc.ca/news/canada/toronto/story/2012/10/30/toronto-shooting-weston-eglinton.html

[MichaelC 160]

Well above the average price, shootings in the front yard. . .could be an interesting story in what is beginning to look like a storied real estate career.

[Doug Pretorius (ON) 9]

The shooting might sour things but that price doesn't sound too bad. Your average price is roughly the same as mine (for all residential properties) and the median price for a detached house is more like $370k, so $426k should be a reasonable family home, nothing too crazy.

 

I've never advertised a house outside of it's area. I suppose I could advertise a commuter home in Cambridge to Toronto buyers, but I figure if a Toronto buyer is looking for a commuter home in Cambridge they would look where Cambridge houses are advertised, not where Toronto houses are advertised.

[MichaelC 160]

The shooting might sour things. . .

Bullet riddled bodies on the front lawn have a way of doing that.

[DanielSun 7]

Ok, so an update about this property, and a couple things I've learned.

 

The Seller wanted to rent it out for $1700, i told him if he give $200 credit, he can rent it out for $1900. And ALL i did was advertise online RTO $1900 3/3 detached house, the phone ring off the hook!!! I couldn't believe it.

 

1. A detached house is very desirable, and the rent amount will determine how many people you attract online. Back when I was trying to sell my first property, the rent was $2400 and the house was bigger, area was better, but NOBODY was biting online. drop the rent rate to a good price and people will come. I have found in my area, rent above $2100 will dramatically reduce callers online.

 

2. NOBODY READ NEWS ANYMORE, the blood from the murder hasn't even dried, and people already want to move next door. As if the shooting never happened. (I should know, I paid $136 for newspaper Ad, only got 3 calls)

 

3. Don't deal with seller if he consistently don't answer your call. So eventually this seller sold his house with an agent, I arranged 2 shows and I couldn't get hold of him! I had to call 10 people to cancel appointments. Too bad this deal was so attractive, but the seller was just not motivated enough.

[MichaelC 160]

All in all, a good learning experience, Daniel. Thanks for sharing.