Who's Going To Buy My Property If They Also Have To Assume My Tenant?

Who's Going To Buy My Property If They Also Have To Assume My Tenant? Photo      In the Toronto real estate market, tenanted properties come up for sale all the time.  Listings for houses with basement tenants, for example, are quite common.  And there’s certainly no shortage of renter-occupied condos for sale.  There’s one very important distinguishing question for the potential buyer of such a property though, “Can I take vacant possession or do I have to assume the tenant?”

If the tenant must be assumed (i.e. they’re not yet at the end of their lease term and arrangements can’t be made for an early termination) the pool of potential buyers shrinks significantly.  Essentially, all that’s left are landlord/investors or buyers who love the property so much that they’re willing to become landlords themselves until they can move in at the end of the lease term.

In the case of a house with a basement tenant, it’s not so much of an issue.  There are actually a number of buyers looking specifically for a house with basement rental income to help pay their mortgage.  So the fact that there’s an existing tenant can be a real bonus.

With condos and lofts however, a tenant that must be assumed can prove to be a tougher sell.  These properties often sit on the market longer than others.  Not always though...

Just this month I worked with a buyer from Ottawa looking to purchase a condo for investment purposes.  We started out visiting the sales center for DNA 3 in the King Street West/Liberty Village area but then decided that a resale property was a better alternative for her (Pre-Construction versus Re-Sale is a subject worthy of its own entire blog post, so I won’t get into it here...). 

We spent a few days viewing what was on the resale market, crunching numbers, and talking through the different scenarios at hand (“How much do you think we could rent this suite for versus that one?”  “Which of these 3 buildings has the best potential for future value growth?”  “Could we get more money if we rent out the parking space separately?”). 

One of the best properties we saw actually already had a tenant in it and they were only halfway through their lease term.  In the end, this is the one my client chose.  She was happy to buy this particular condo knowing that she could assume the tenant and immediately start collecting rent without having to spend the time, money, and effort required to find and qualify a tenant from scratch.

This is a great example of a situation where having to assume the existing tenant actually worked in the seller’s favour.  Generally, these properties can take longer to sell.  But here the sale happened quite quickly.  As so often happens in real estate, it was a matter of the right buyer coming along at the right time.

If you’ve got a tenanted property to sell and would like to find out more about my services, feel free to contact me for more info.      

If you're thinking of buying a tenanted property and would like to know how I can help, feel free to contact me for more info.

Spotlight: "King George Square" In The St Lawrence Market Area

King George Square In The St Lawrence Market Area Photo      More often than not, when I meet someone looking to purchase a condo in the St Lawrence Market area they already have a short-list of the top 3 or 4 buildings they're most interested in.  "King George Square" is usually on this list.  Even if they don't know the name or the address of the building, it's immediately apparent which one they're talking about: "You know, that building on King Street just down from St James Park.  The one with the iron gates out front.  You know, the one that's across the street from Starbucks."

There's no doubt that a big part of the attraction with King George Square is its location.  It sits pretty on that strip of King Street that runs just east of St James Cathedral.  Residents of the building walk out their front door and are literally steps to a number of great restaurants, pubs, coffee shops, parks, 24hr groceries, cinemas...  Not to mention the Market itself, located just a few more steps south down Jarvis St. 

Of course, the building is impressive as well.  King George Square was developed by Steven & Webster Callahan and designed by Burka-Varacalli Architects Inc.  (Bruka-Varacalli are also involved with "Crystal Blu" along the Bay Street corridor and the "James Cooper Mansion" on Sherbourne St, among other developments).  It was completed in 2000 and sits at the northwest corner of King & George.  The building has 16 floors and the municipal address is 168 King Street East.  Take a look at the Google Street View map here.

The building amenities include concierge, exercise room, party/meeting room, billiards room, and garden terrace with a hot tub & BBQ's.  I’ve included photos of some of the common elements below.

King George Square In The St Lawrence Market Area Photo       King George Square In The St Lawrence Market Area Photo       King George Square In The St Lawrence Market Area Photo

King George Square In The St Lawrence Market Area Photo       King George Square In The St Lawrence Market Area Photo       King George Square In The St Lawrence Market Area Photo

If you own a suite in the King George Square building and are thinking of selling, feel free to contact me for an evaluation of your property or for more info on my listing services.

If you're thinking of purchasing a suite in the King George Square building specifically, or in the St Lawrence Market Area in general, feel free to contact me for more info.

 

Exclusive one-day sales event for "DNA 3" on Saturday, June 19th

Exclusive one-day sales event for DNA 3 on Saturday, June 19th Photo      Earlier this year I wrote a Blog post about the coming of DNA 3 to King Street West (read it here).  Well, it looks as though that day is just around the corner.  Tomorrow evening I'll be attending an exclusive agent info session where I'll be given a sneak peak tour of the 7,000 sq ft sales centre.  More importantly, I'll get my hands on floor plans, starting prices, and worksheets for clients.

A one day only selling event is set to follow on this coming Saturday, June 19th, 12:00 - 6:00pm.  Keep in mind, this selling event is exclusively for registered agents (and their clients).  Anyone not registered will have to wait until the public launch to make a purchase.  If you or someone you know is interested in purchasing a suite at DNA 3 at this early stage in the game, please get in touch with me ASAP.

As many of you know, DNA 3 is one of the most anticipated projects in the King Street West/Liberty Village area.  It's being developed by Canderal Stoneridge Equity Group Inc. (also responsible for the Residences of College Park on Bay St, Aura, DNA 1 and DNA 2) and designed by Graziani & Corazza Architects.

The building will be located at 1030 King Street West, on the north side of King at Shaw, where the former Chrysler dealership building now stands.  This is the site of the sales center as well.

If you’re thinking of purchasing a suite at DNA 3 and would like to know how I can help, feel free to contact me for more info.

When's The Best Time To Both Buy And Sell Real Estate?

When's The Best Time To Both Buy And Sell Real Estate? Photo       I was recently speaking with a couple of friends who are thinking of selling their condo and moving into something bigger.  "We're hearing that prices are cooling off - should we wait awhile before making a move?"  Good question.  Unfortunately, there isn't one catch-all answer. 

If these guys didn't have a property to sell and were only buying into the current market I'd have one set of suggestions for them.

If they were only selling and weren't buying (because they were moving away from Toronto or moving into a rental, etc) I'd have another set of suggestions.

However, they're talking about selling and buying in the same market.  Since they're doing both, the particular conditions of the market are (arguably) less of an issue.  In other words, if it's a Buyer's Market and prices have cooled, they'll suffer as sellers but they'll benefit as buyers.  And vice versa if it's a Seller's Market.

For example, let's say you want to sell your 1-bedroom condo and move up to a 2-bedroom suite.  And let's say that it's shifted from a Seller's Market to a Buyer's Market and prices are on average 5% less than what they were 6 months ago.  If you'd have sold your 1-bedroom suite 6 months ago you might've gotten $300,000 for it.  But the market has shifted and now you're like to get $285,000.  Clearly, selling has lost a bit of its appeal.

Don't forget though, you're also purchasing a larger (and presumably more expensive) 2-bedroom suite.  While this property might've cost you $400,000 if you bought 6 months ago, the market shift (5%) means that you're likely to pay only $380,000 for it now.  So, the appeal that was lost on the selling side is more than made up for on the buying side.  In fact, you're actually ahead of the game, to the tune of $5000 ($20,000 - $15,000).

Of course, this is just one possible scenario out of many.  What if you're selling in an area that isn't very "hot" but you're buying into one that is?  You have to keep in mind that certain areas of the city can appreciate/depreciate more than others during any upswing/downturn.  This has to do with a number of factors (supply & demand within that particular area, recent gentrification, etc). 

And what if you're selling within the downtown core but purchasing outside of the city.  Well, these are different markets and care needs to be taken in evaluating what's happening in each respective area.

As I said, there isn't one catch-all answer to this question.  Generally though, I would suggest that if you're selling and buying in the same market you're better to place less weight on current market conditions and more weight on other factors ("Have I outgrown my current home?"  "Am I ready for a change?"  "Are the circumstances right for me to make a move at this time?"  "Should I take advantage of attractive mortgage rates?"  "Etc..."

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

After Attending Doors Open Toronto 2010, I'm Hooked!

     I have to confess, this was actually the first year that I participated in Doors Open Toronto.  I’d planned on doing so in years past, but for whatever reason it just didn’t happen.  This year however, I held firm to my resolution and I have to say, I’m much better for it!

As a realtor I spend quite a bit of time driving around the city, passing by many of Toronto’s landmark buildings without ever stepping foot inside them.  So for me, Doors Open Toronto 2010 was an opportunity to slow down and really absorb some of the architectural beauty and historical significance of my surroundings.

Part of the attraction of an event like this is the relatively short period of time for which it exists (until its return next year, anyway). There`s something powerful about the fact that for only a few precious hours we’re granted access to spaces that are otherwise off limits to the general public. 

I was made even more aware of this on my elevator ride up to the 17th floor of the Canada Life Building.  The operator informed us that, "You're very privileged to be going up to the Tower Room.  Even the regular staff in the building don`t have access to this space other than during Doors Open Toronto."

The excitement was palpable outside as well.  I was actually sidetracked from my planned route because I just couldn`t pass up the enthusiastic recommendations of a few fellow participants.  "You have to see Osgoode Hall - the Library is beautiful!"  "The King Eddy tour is not to be missed!"

Needless to say, my original intention of sticking primarily to some of the taller buildings in the downtown core (inspired by a recent trip to Manhattan) was changed to include a more well-rounded assortment of structures. 

All in all, the weekend was a success for me.  I finally got around to doing something that I've wanted to for awhile.  And my relationship with the city was expanded and deepened.  After I finish writing this post I plan on going over the buildings I missed this weekend, adding them, in anticipation, to next year`s list.

What about you? 

Did you attend Doors Open Toronto 2010? 

Any highlights?

Spotlight: "Candy Factory Lofts" In The Queen Street West Area

Candy Factory Lofts In The Queen Street West Area Photo If you were to stop someone on the street in Toronto and ask them, "Can you name a residential loft building here in the city?" I bet the answer you'd hear most would be, "The Candy Factory Lofts".  This building seems to be the one that almost everyone is aware of, regardless of whether or not they're interested in real estate or they've ever been in the market for a loft themselves.

I think that part of its notoriety stems from the fact that it was one of the first true loft conversion buildings in Toronto (thank you, Harry Stinson).  Couple this with the fact that it's also one of the best loft conversion buildings in the city and it's easy to see why it's on the tip of so many people's tongues.

The building itself served as the production factory for the Cede Candy Co. (hence the development's name) and it sits on the south side of the street (at 993 Queen Street West), running west from Crawford Street over to Shaw Street.

The Candy Factory Lofts was developed by the Metro Ontario Group and completed in 1999/2000.  There are over 120 suites in total, ranging from 700+ sq ft one-bedroom units to 3500+ sq ft 2-level penthouse suites.  The building is characterised by everything you'd expect in a top-notch loft conversion; high ceilings (12-14 ft), exposed post and beam interiors, exposed brick, exposed duct work, huge windows, hardwood floors, extra wide hallways, etc...

The location is exceptional as well.  You've literally got TTC at your door (the Queen St streetcar) and you're steps away from Trintiy Bellwoods Park and a number of notable galleries (Angell Gallery, Stephen Bulger Gallery) and restaurants (Bar One, Fresh, Swan).

The building amenities include concierge, exercise room, rooftop terrace, guest suites, and visitor parking.  I’ve included photos of some of the common elements below.

Candy Factory Lofts In The Queen Street West Area Photo          Candy Factory Lofts In The Queen Street West Area Photo          Candy Factory Lofts In The Queen Street West Area Photo

Candy Factory Lofts In The Queen Street West Area Photo          Candy Factory Lofts In The Queen Street West Area Photo          Candy Factory Lofts In The Queen Street West Area Photo

If you own a suite in the Candy Factory building and are thinking of selling, feel free to contact me for an evaluation of your property or for more info on my listing services.

If you're thinking of purchasing a suite in the Candy Factory building specifically, or in the Queen Street West Area in general, feel free to contact me for more info.

What's The Smallest Space You Could Live In?

      A few weeks ago I came across the above YouTube video of architect Gary Chang's incredible Hong Kong apartment.  Since then I've seen a few newspaper articles focusing on exceptionally small living spaces here in Toronto.  There were two in Saturday's Toronto Star alone (which you can read here and here).  All this talk of tiny homes has me asking the question, "What's the smallest space you could live in?"  500 square feet?  How about 400 square feet?  Could you live in 300 square foot apartment?  (Yes, they do make condos that small).

The smallest home I've sold was a 400 sq ft bachelor condo in the Pantages building on Victoria Street.  The buyer of this property put location at the top of her list.  Size was secondary.  As with any purchase, budget dictated the size of unit we could find within the specific location.  A bachelor unit was her only option.  Fast forward a few years - she's still there, she's happy with the space, and she has no plans of moving anytime soon. 

I'm no stranger to small spaces myself.  One of the first places my wife and I had together was a 400 sq ft bachelor apartment in the Annex.  We lived there for about a year, rearranging the layout 3 times until we found the perfect configuration to maximize the space.  With two people in such tight quarters we had to find the most economical placement and use of our furniture.  We'd try to multi-purpose anything we could ("This guitar amp could double as an end table..."). 

Could we live in such a small space now?  No.  But we did, happily, for almost a year.  And the clients that I've helped purchase smaller condos are very happy with their spaces.  The reality is, in a city like Toronto there will always be a market for small properties. 

There will always be renters who are looking to purchase their first home and the fact that these smaller properties exist allow them to do so.  There will always be someone looking to expand their real estate portfolio and a 400 sq ft condo offers them the opportunity to purchase their first investment property.

Of course, there will also always be those who balk at living in such small spaces.  They need to remember though, that in a city like Toronto real estate values are not the same as those in Windsor or London or Guelph...  Not everyone can afford an 1500 sq ft house here.  Without these smaller spaces a number of buyers simply wouldn't have an option. 

Just be happy that you're not in Vancouver where rental units as small as 270 sq ft are soon to hit the market.  Although I'm sure it's only a matter of time...

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

Great Deals For A Great Cause

     There are a number of reasons that I'm proud to have Royal LePage as my brokerage.  Sitting near the top of this list is the fact that I get to contribute to and be a part of the Royal LePage Shelter Foundation.  It has the distinction of being Canada’s largest public foundation dedicated exclusively to funding women’s shelters and violence prevention and education programs. 

On Saturday, May 15th, Royal LePage offices all over the country will be participating in the foundation's 2nd annual National Garage Sale for Shelter, with 100% of the proceeds going to help women and children living with abuse.  My office, located at 905 King Street West (at Strachan Ave) will be joining in.  The hours are from 8:00am - 2:00pm and we'll be serving coffee, breakfast sandwiches, and cupcakes, as well as live music and raffles. 

Right now we're looking for donated items for the garage sale.  If you've got anything that you're happy to part with for a good cause, give me a shout and we'll schedule a time to swing by and pick it up.

Acceptable items for donation are as follows:

  • Furniture in good condition
  • Books
  • CD's & DVD's
  • Small appliances & electronics
  • Toys with all parts
  • Jewelry
  • Kitchen ware
  • Decorative accessories like candleholders, art prints, etc
  • Sporting goods
  • Tools

To learn more about the Royal LePage Shelter Foundation, check out their website here and their Facebook Page here.

Looking forward to a great turnout on the 15th and a successful garage sale!

Ossington Art Hub Alive And Vibrant Despite Moratorium

Ossington Art Hub Alive And Vibrant Despite Moratorium Photo      Anyone familiar with that strip of Ossington Ave running north from Queen Street up to Dundas knows there's been quite a bit of change there in the last few years.  The number of bars, restaurants, shops, and galleries that've sprung up is impressive.  I live in the surrounding area myself and can attest to the difference a few short years makes.  In terms of real estate values alone, the area has certainly experienced an increase.  I helped some clients purchase a townhouse on Halton St, just east of Ossington, and the prices there have certainly benefited from what's happening in the area.

So much change though, so quickly, isn't going to sit well with everyone.  A number of residents in the immediate area voiced their concern about the increased nightlife and the city responded by placing a moratorium on new bars.

Personally, I'm somewhat divided on the moratorium.  I'm happy for anything it's done to curb the over-saturation of clubs that some feel was on the horizon.  But I'm also disappointed that a less restrictive solution wasn't adopted - a solution that would've allowed for more bakeries, daytime restaurants, etc, to find their way onto the strip. 

This isn't to say that there hasn't been any growth along the strip since the moratorium went into effect last year.  In fact, galleries and art spaces have really flourished.  There was an article in yesterday's Toronto Star touching on this very subject.  Take a look:

Following is Sarah Barmak's article from the March 14th Toronto Star in full:

One year after a controversial moratorium on new bars on the street was passed, much on Ossington Ave. has seemed frozen in time, with no new eateries and few new shops.

Other than the growth in gallery space, that is. More than ever, the Ossington art hub is alive and vibrant.

Jamie Angell's Angell Gallery relocated to the foot of Ossington from 890 Queen St. W., moving from 700 square feet to a cavernous 4,000. With its grand central space and satellite wings, it isn't hard to imagine Angell as a bustling bistro. Instead, it's now one of the bright lights of a booming creative nexus.

Further north on the strip, Meta Gallery is busily renovating their new space – formerly the eclectic art, market, concert, and event venue Rolly's Garage – for their grand opening on April 2.

The most impressive newcomer to the neighbourhood, the Artscape Shaw Street Centre, will add a mind-blowing 75,000 square feet of dedicated gallery and working space for artists to the area when it opens in 2012. A repurposing of the beautiful century-old Shaw Street School, which had been shuttered for a decade before Artscape bought it in January, the centre will be the largest project to date for the not-for-profit urban development organization behind the Wychwood Barns art community in the St. Clair and Christie neighbourhood.

Artscape's request for expressions of interest from artists – due Thursday – is helping them envision how the space will be used. The prospect of all that room, however it's used, seems likely to lure more artists and arts businesses to the area.

"Galleries could be a part of it," says Liz Kohn, director of communications for Artscape. "Also, music or performance or theatre. The options are endless, really."

The bar moratorium, put in place by ward councillor and now mayoral candidate Joe Pantalone, had split residents – who complained about late-night noise – and business owners, who said the ban penalized people who wanted to open daytime restaurants and bakeries.

Council since replaced that ban with more permanent rules: new bars, cafes, restaurants, bakeries and takeout places are limited to the ground floor and 175 square metres (1,800 square feet). Fears voiced by locals that the strip would wither under the restrictions, however, don't seem to have materialized – for galleries, in any case.

"It's like a village between Dundas and Queen," says Angell, whose gallery has its official launch April 3. "I personally think it is easier for galleries to grow on Ossington."

Angell more than quadrupled his floor space by moving to Ossington while only doubling his rent. He also moved to the area himself, with an apartment above his gallery.

"Much more space enables me to have three distinct galleries," he says – a dramatic main wing for group shows and up-and-coming artists, an east wing, and a project space where visitors see more inventory. The high-ceilinged white rooms elegantly show off the work of talented locals such as Geoffrey Pugen and Alex McLeod.

It isn't just the space, however. One of the most distinctive additions to the new Angell Gallery is a permanent video room. The mini-theatre, with a flat-screen video monitor, speakers and space comfortable for about four to six people, is unique among smaller galleries, which usually install screens temporarily for specific exhibits.

"It's a serious medium," says Angell. "But how many galleries have the space to dedicate to it?"

Jody Polishchuk, owner of Meta Gallery, says he's happy Ossington didn't become a club district. "People were worried it was going to turn into a kind of Richmond Street," he says. "It's such a gem and it would be a shame for it to go that way."

He says he looked for spaces along Dundas West – theorized by many as the new, new art district – before settling on Rolly's. He's happier to think of Dundas West as part of a giant art nexus that includes Ossington and the Shaw complex, anyway.

The new Meta seems likely to become a strip destination: though it will be a gallery in the main, it plans to retain some of the events that made Rolly's Garage such a creative hotspot – such as its unique Night Market, where local vendors sold hand-made designer goods while shoppers drank and socialized.

It has even hired Phil Terry, the same contractor who has worked on the Drake Hotel, W Burger Bar and Mercatto restaurants. Not that it will get a permanent liquor licence. "As if Ossington really needed another bar," says Polishchuk.

Architect Breck McFarlane owns the building at 9 Ossington, which houses electronic media arts centre InterAccess and Imperial Tattoo. He agrees that galleries seem to have emerged from the moratorium unscathed. And he is happy to remind newcomers that the street is a long way from what it was when he bought the property in 2001.

"It was like a country road," he says. "I think there were tumbleweeds, honestly. It's got to be a 25-fold increase in foot traffic (since then)."

Many small business owners along the strip are far less sanguine about life since the ban, however. They say the moratorium didn't stop kids from drinking – and it hurt daytime retail.

"I'm the newest vintage store and I've been here for a year," says Lindsay Fernlund, who owns Silver Falls, across from Angell. She says without places to have lunch, shoppers simply don't linger on the street.

"Restaurants would get foot traffic going," says Tim Hanna, the owner of Ossington bookstore Frantic City. He says that when Pizzeria Libretto opened nearby, he stayed open late and benefited from more walk-ins.

Two daytime restaurants and a bakery have closed since Pantalone's moratorium was put in place – businesses that haven't been replaced. The councillor says eateries and bars are welcome if they comply with the new rules; what's wanted, is variety, not just a bar strip.

"Art galleries, clothing stores and food stores are particularly needed in this area to add to the diversity, and their absence was actually creating a problem to both the business people and the residents," he told the Star's Bruce DeMara last week.

There is also a danger that the new rules and the drop in daytime traffic will make the art community also sour on the street.

"There is not another strip in the city that has so many restrictions," says Gary Hall, executive director of Gallery TPW, which relocated to 56 Ossington in 2006 after 20 years at 80 Spadina Ave.

He says the gallery will "consider all its options" – including the idea of the Shaw Street Centre – when their lease expires in three years.

Others are already thinking about life after Ossington – west of it, that is. Next month will see the opening of Parts + Labour on Queen West near Sorauren Ave., masterminded by owners from The Social and Oddfellows, two hectic hipster hubs within blocks of the Queen/Ossington axis. The group gutted a huge old building that housed a hardware store for decades and spent months creating a slick restaurant and live music venue. What results is sure to transform a forlorn stretch of street – and finally, perhaps, Parkdale.

While Ossington galleries continue to thrive, only time – mainly the summer and its crowds – will tell what the future of the strip holds.

If you’re thinking of making a move to or from the Ossington Ave area, or downtown in general, feel free to contact me for more info.

Spotlight: "Massey Harris Lofts" In The King Street West/Liberty Village Area

Massey Harris Lofts In The King Street West/Liberty Village Area Photo      The King Street West/Liberty Village area is home to a handful of architecturally historic buildings.  One of the best examples of these is located right next door to my brokerage's office.  I'm talking about the "Massey Harris" building.  It's without a doubt one of the more desired loft buildings in downtown Toronto, due to its location and the fact that the suites here are simply gorgeous.  I helped a couple purchase their first home together here a few years ago and it's certainly one of the more unique properties I've sold.

The Massey Harris Building was designed by Toronto architect Edwards James Lennox in the late 1800's and served as the Massey Harris farm equipment headquarters.  The building was designated a heritage property by the city in 1973 and was converted into residential lofts by Canderal Stoneridge Equity Group Inc. (also responsible for DNA Phases 1, 2, & 3 just down the street) in 2002/2003.

The building is located at 915 King Street West and has 5 floors and 46 units.  The majority of suites are characterised by exposed brick walls, wood posts & beams, 11+ foot ceilings, bathrooms with modern glass showers, and Cecconi Simone designed kitchens.  If you take a look at the building you'll notice that the top levels consist primarily of glass instead of brick.  This was built as an addition to the existing structure during the conversion and houses the 2-storey penthouse suites.

I've included some photos of the building and adjacent park below.

Massey Harris Lofts In The King Street West/Liberty Village Area Photo          Massey Harris Lofts In The King Street West/Liberty Village Area Photo          Massey Harris Lofts In The King Street West/Liberty Village Area Photo

Massey Harris Lofts In The King Street West/Liberty Village Area Photo          Massey Harris Lofts In The King Street West/Liberty Village Area Photo          Massey Harris Lofts In The King Street West/Liberty Village Area Photo

If you own a suite in the Massey Harris building and are thinking of selling, feel free to contact me for an evaluation of your property or for more info on my listing services.

If you're thinking of purchasing a suite in the Massey Harris building specifically, or in the King West/Liberty Village Area in general, feel free to contact me for more info.

Is A Home Inspection Condition Always Necessary When Purchasing A House?

Home Inpection Condition Always Necessary When Purchasing A House? Photo      I showed a property to some clients of mine a few weeks ago, a fixer-upper in the Parkdale area.  We all agreed that the house had plenty of character but that it would potentially need plenty of work as well.  There were 16+ offers on the table come offer night and it sold FIRM for more than $100,000 over asking.  The thing to note here is that the property sold FIRM - no home inspection condition.

Shouldn't you always include a condition in your offer-to-purchase that allows for a home inspection?

I certainly wouldn't advise a client to make a purchase without having an inspection done.  Reason being, there are sometimes underlying issues with a property that are not obvious to the untrained eye.  Having a professional come in and spend a few hours doing a thorough inspection is crucial if the buyer is to make an informed decision.

This isn't to say that a buyer shouldn't move forward on a property just because the inspection report isn't perfect.  Older homes are almost always going to have some issues (the boiler may be nearing the end of its life expectancy, there may be some dampness in the basement, etc).  But having an inspection done will shed some light on what the potential issues are and the buyer can proceed accordingly.

Getting back to the house in Parkdale...  Even though the property sold FIRM on offer night doesn't mean that a home inspection wasn't done.  Any number of the 16+ potential buyers may have had an inspector come in at some point during the week that the property was on the market.  This is actually quite common in a seller's market where offers are "held-off" until a specified date (generally a week-or-so after the property first comes on the market).   I touched on this in a previous post, which you can read here.

In this way buyers still get the benefit of having a complete, thorough home inspection done prior to making a purchase without actually having to include a home inspection condition in their offer.  The work is done ahead of time so that they can come to the table with a clean offer, thereby bettering their chances of getting the property. 

For more info on submitting an offer, visit my website here.

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

Spotlight: "DNA 3" Coming Soon To King Street West

DNA 3 Coming Soon To King Street West Photo      Last month, in another of my "Condo/Loft Spotlight" posts (read it here),  I focused on DNA Phases 1 and 2 in the King Street West/Liberty Village area.  There's no doubt that both rank as two of the most sought after buildings in the downtown core.  Well, there's another building soon to be added to this list - "DNA 3".

DNA 3 is being developed by Canderal Stoneridge Equity Group Inc. (also responsible for the Residences of College Park on Bay St, Aura, DNA 1 and DNA 2) and designed by Graziani & Corazza Architects.

The building will be located at 1030 King Street West, on the north side of King at Shaw, where the former Chrysler dealership building now stands. 

Aside from the building itself, the marketing for DNA 3  has been the focus of much interest.  Back in October they were a sponsor of LG Fashion Week, the headquarters of which sat at the future location of the condo.  It was an inspired piece of marketing and certainly generated an initial wave of buzz that has been building since.

The project will be launching this spring and from the rendering it looks to be an impressive addition to the King Street West area...

DNA 3 Coming Soon To King Street West Photo

If you're thinking of purchasing a suite at DNA 3 and would like to know how I can help, feel free to contact me for more info.

Spotlight: "SPIRE" In The St Lawrence Market Area

SPIRE In The St Lawrence Market Area Photo        SPIRE In The St Lawrence Market Area Photo      The St Lawrence Market area is, in my humble opinion, one of the best places in all of downtown Toronto to call home. It offers an impressive blend of history, architecture, and entertainment, and it's located steps to the TTC, Financial District, grocery stores, the Market itself, St James Park and Cathedral, etc...  My first few years as a realtor were spent working primarily in this area and it continues to be one of the main areas I do business. There are a number of quality condo/loft buildings here to choose from (some of which I'll spotlight in future blog posts), but at the moment I'd like to take a look at "SPIRE".

SPIRE was developed by Context Develpoment (also responsible for Tip Top Lofts, Radio City, and MOZO, among others) and designed by Architects Alliance.  Completed in 2007 and sitting at the corner of Church and Adelaide, the municipal address is 33 Lombard Street.  The building has 45 floors and the suites are characterised by floor-to-ceiling windows and open layouts.  The majority of suites have balconies and 9 foot ceilings. 

SPIRE is without a doubt one of the more highly sought after buildings in the area and as such suites generally sell for top dollar compared to some of the older buildings in the area. 

The building amenities include 24 hr concierge, exercise room, rooftop terrace/garden (located on the 5th floor podium rooftop), party/meeting room, and visitor parking.  I've included photos of some of the common elements below.

SPIRE In The St Lawrence Market Area PhotoSPIRE In The St Lawrence Market Area PhotoSPIRE In The St Lawrence Market Area Photo

SPIRE In The St Lawrence Market Area PhotoSPIRE In The St Lawrence Market Area PhotoSPIRE In The St Lawrence Market Area Photo

If you own a suite at SPIRE and are thinking of selling, feel free to contact me for an evaluation of your property or for more info on my listing services.

If you’re thinking of purchasing a suite at SPIRE specifically, or in the St Lawrence Market Area in general, feel free to contact me for more info.

Spotlight: "DNA" In The King Street West/Liberty Village Area

DNA In The King Street West/Liberty Village Area Photo      My brokerage’s office is located in the King Street West/Liberty Village area and it’s a part of the city where I do a good deal of business.  One of the buildings that I find myself consistently viewing with clients and answering questions about is “DNA".

DNA (“Downtown’s Next Address”) is widely regarded as the crown jewel of the many condo/loft buildings in the area.  And for good reason too.  The quality of features and finishes here are impressive, with granite counters in the kitchens and bathrooms, open layouts, large windows, and an overall contemporary urban feel.

DNA was developed by Canderal Stoneridge Equity Group Inc. (also responsible for the Residences of College Park on Bay St) and designed by Graziani & Corazza Architects.  It consists of two phases, with a third phase planned for the near future.

Phase 1 was completed in 2005 and is located at 1 Shaw Street, at the corner of Shaw & Douro.  This phase has 15 floors and the suites are characterised by 9 foot ceilings and generally have more of a loft feel than phase 2.  The suites here have gas stoves and the balconies have gas barbeque hook-ups.

Phase 2 was completed in 2006 and is located at 1005 King Street West, at the corner of King & Shaw.  This phase has 9 floors and the majority of ceiling heights here are the standard 8 feet, except for the top few floors which are 9 feet. 

The building amenities include concierge/security, fitness center, party room, rooftop terrace, and visitor parking.  I've included photos of some of the common elements below.

DNA In The King Street West/Liberty Village Area PhotoDNA In The King Street West/Liberty Village Area PhotoDNA In The King Street West/Liberty Village Area Photo

DNA In The King Street West/Liberty Village Area PhotoDNA In The King Street West/Liberty Village Area PhotoDNA In The King Street West/Liberty Village Area Photo

If you own a suite at DNA and are thinking of selling, feel free to contact me for an evaluation of your property or for more info on my listing services.

If you're thinking of purchasing a suite at DNA specifically, or in the King West/Liberty Village Area in general, feel free to contact me for more info.

Bungalows: The Great Condo Alternative!

Bungalows: The Great Condo Alternative! Photo      This week I helped a young couple purchase their first home, a detached bungalow in the Briar Hill – Belgravia area.  Without going into the specific financial details of their purchase, I'll say that they got the home for below the $325,000 price point (this includes purchase price + approx $5000.00 in reno's that they'll do prior to move-in).  We’re talking a fully detached house with a living room, separate dining room, large master bedroom, and a 2nd bedroom on the main level... plus a family room, 2nd bathroom and 3rd bedroom on the lower level... plus front pad parking and a great backyard.  All for under $325,000!

Can you really find something that affordable in Toronto?  Yes, you can... but you have to know where to look and you have to be willing to invest some sweat equity and a few $$$ down the line to maintain/update the property as needed.  You’re not going find such a home in Little Italy or the Annex.  In fact, you’ll be hard pressed to find a decent freehold home under the $350,000 mark unless you’re willing to venture north of Eglinton (if you want to stay central) or into the western (generally defined as west of Dufferin) or eastern (generally defined as east of the DVP) areas of the city.

If you want something located in the downtown core then you’ll be shopping for a condo, it’s that simple.  Of course you can go the route of a condo townhouse, which offers something of a compromise between condo and house, sort of.  But here you’ll only be getting approx 800-900 sq ft and you’ll still have people living directly below and next to you.  You will get a rooftop terrace (up to a few hundred sq ft in size), but certainly nothing that compares to a real backyard.

The choice between house and condo generally boils down to two dichotomies: location vs. size and no maintenance living vs. hands on maintenance living.  I work with a number of buyers where this issue is a no-brainer – they want to be downtown where the action is and they don’t want to lift a finger when it comes to maintenance.  And they’re more than willing to give up square footage for these luxuries.  Of course, I also work with buyers where the opposite is true.

I helped another couple purchase a bungalow in the Old East York area earlier this year (note: the bungalows here are valued more in the $375,000-and-up range).  These buyers started out considering both condos and freehold homes.  After exploring what was available on the condo market in their price range they decided, for many of the reasons described above, that a bungalow home outside of the downtown core was the right choice for them.  Yes, it needed a bit of work to bring it up to a level they're happy with.  And if anything goes wrong down the line (roof repairs, plumbing issues, etc), it'll be their responsibility (as opposed to the property management company in a condo).  For them though, this trade-off was well worth it and they're very happy with their purchase.

Needless to say, each buyer has their own hierarchy of criteria and it's this ordering of wants and needs that will determine whether a condo or a bungalow is the way to go. 

If you’re thinking of making a move but aren’t sure what your budget will get you in the condo market and/or the bungalow market, feel free to contact me for more info.

"Holding-Back" On Offers

"Holding-Off" On Offers Photo Save for those two frosty seasons of uncertainty, stagnation, and price reductions that we experienced last fall and winter, “multiple offers” have been and are now a very common occurrence in the Toronto real estate market.

In a seller’s market, which is what we’ve been in for the last four months, demand outweighs supply and there are more buyers that there are properties for sale.

As a result any attractive, well priced property is going to receive quite a bit of attention.

A recent listing of mine in the St. Lawrence Market area had a handful of showings booked within just a few hours of going on the market.

Over the course of the next few days we had almost 50 showings in total, received 3 competing offers, and sold the property for an above-asking sale price!

In such an active market, what’s the best strategy for a seller looking to maximize the exposure of their property?

My personal feeling is that it’s in the seller’s best interest to “hold-back” on reviewing any offers until a specified date (which is exactly what we did for the above mentioned listing in St Lawrence Market).

For example, let’s say that I list a client’s property on a Wednesday morning.

By late afternoon we may have had three or four showings and by early evening maybe even a submitted offer.

And this offer may be an attractive one - full asking price, reasonable terms, etc.

But... there have only been three or four showings at this point.

There are potentially another 20, 30, 40.... other active buyers out there that haven’t had the opportunity to see the property yet.

What if one or more of these others buyers would submit an offer if they had the chance?

What if they're willing to pay more than what the current buyer is offering?

What if they're willing to submit a firm, unconditional offer?

Not allowing any offers to be submitted until a specified future date (generally 5-7 days after the property first comes on the market) ensures that everyone who is currently in the market for such a property gets a chance to view it and potentially submit an offer.

The sellers then can rest assured that whatever happens come offer day, the property has received maximum exposure.

Holding-back on offers actually benefits the buyers in a number of ways as well.

For example, I’m often working with buyers who need a day or two’s notice to make themselves available for showings.

Or sometimes buyers are out of town for a few days and unable to view the property until they return.

In this way, leaving the property on the market for a reasonable amount of time before considering any offers ensures that more than just the handful of buyers who are able to drop everything at a moment’s notice have a shot at buying the property.

Holding-back also helps to avoid buyers feeling as though they're rushing into a decision, as it allows them plenty of time to:

• Speak with their mortgage broker about the possibility of not including a financing condition in their offer.

• Review the comparable sales figures with their Realtor to arrive at a maximum dollar amount that they’re comfortable spending.

• Review the pre-listing home inspection (in the case of a freehold home) or the status certificate (in the case of a condo/loft) if either of these is available prior to the offer date.

It's safe to say that as long as the market keeps up the current pace and there's a steady stream of motivated, qualified buyers, multiple-offers will continue to be commonplace and hold-back offer dates will remain a fixture on many calendars.

If you’re thinking of selling and would like to find out more about my marketing plan, feel free to contact me for more info.

For more info on submitting an offer, visit my website here.