Toronto real estate agents use new tactic to fuel competition and raise house prices
TORONTO – If it sounds too good to be true, it almost always is.
A new trend in the Toronto real estate market, in which realtors are listing residential homes in the Greater Toronto Area for just a dollar, has left some buyers with questions.
Just because a property is listed for a dollar, it certainly doesn’t mean that buyers will pay that much.
Toronto real estate agent Paul Poliszot currently owns a property at 15 Rebecca Street, listed for a dollar. While he does this to bring attention to the property, he says listing prices haven’t reflected the real value of the property for some time.
âWe have had six months of madness. He has been extremely volatile. Prices have fluctuated and asking and listing prices haven’t reflected a property’s value for long enough, âPoliszot told CTV News.
“Everything we really try to do [is] to be innovators in real estate investing in Toronto and to serve our clients the best that we can, âsaid Poliszot.
He says the low listing price has attracted hundreds of inquiries.
Marco Momeni, a Toronto real estate agent who is testing the same strategy at 16 Kenrae Rd. In Leaside, has different motivations.
“I have been in the real estate business in Toronto for 20 years and this is only the second time that we have not released the price as this is a very unique property,” Momeni told CTV News Toronto. .
This particular property has approvals in place that could allow it to be redeveloped into two semi-detached homes, so its current property value would not reflect the potential it holds, Momeni says.
âThey have all the approvals in place to convert the property to semi-trailers, which is why they don’t really know [the value.] They’ve been approached by a few developers over the past year, so they didn’t want to disclose any pricing. They want to know what is the highest number the market can reach for this property rather than imposing a price, âMomeni explained.
Desmond Brown, Toronto real estate agent and podcast host Soldinthe6ix, told CTV News Toronto about the trend, which he says is nothing more than a marketing strategy.
“We see [the trend] periodically. In residential real estate, for me, if an agent puts [a listing] for $ 1, [..] it’s about generating as much activity as possible on it. So they can get multiple bidding wars or multiple bids.
However, when representing a buyer, Brown says it can be irritating.
âIt ends up generating a lot more competition [than is] really necessary. So it’s a waste of time for a lot of people, âBrown told CTV News Toronto.
Although Momeni implements the strategy himself, he does not recommend it to everyone, but only to unique properties.
âI don’t recommend it to the average seller,â Momeni said, âand it comes from 20 years of experience with buyers and customers.â