One uneducated opinion after another. Media needs to sell stories – so they think of a good title, figure out what scares people, provide information with little to no substance and hope they sell – tons. And clearly, all media outlets are experts on every topic, real estate being no expection.
Here’s my problem with it – if you’re going to speak on a topic like real estate – ensure you provide educated opinions backed with good information so as to empower your audience – not scare the sh*t out of them.
Like this article published by The Star last week on 58 Armstrong Ave: http://read.thestar.com/#!/article/513a64a37b1eac01a900230d
And the follow-up scare: http://read.thestar.com/#!/article/513f5c9f7b1eac58020028ce
First off – let’s get it right, the property is not in The Junction but rather in the Wallace-Emerson community.
Here’s The Star’s version of the story: 58 Armstrong Ave. A detached 2 1/2 storey, as-is home, needing over 200k in renovations with nothing to salvage and oh yes … it’s gotten over 300+ showings!! Followed up with – this unsalvageable, as-is, and seemingly undesirable property sold for 200k over asking with over 40 offers on the table.
If I read this, and didn’t know any better, I would most likely think there’s a bubble happening … how else could there be so much demand for such a sad property???
Here’s Amir’s version of the same story told to my client – who by the way was one of the 40 offers that night: 58 Armstrong Ave is a detached 2 1/2 storey property located in a very desirable and convenient location in Toronto. The property affords you the opportunity to live less than a 10 min drive to the core or jump on the Bloor line instead. Shops, retail etc. only add to the lure. At 419.9k, this property is listed FAR BELOW market value. Matter of fact, the MPAC tax value of the home was around 520k – and this is an objective value far lower than the subjective value on which market prices are based on. Further, a semi-detached renovated home down the street sold for 800k+ less than 1 year ago.
Don’t be fooled by how many offers there were on the table. If I priced a 2012 Corvette at $500 even, I’m pretty certain I would get tons of takers.
What’s more important – is what the Corvette is actually worth.
Real estate is specific and realtors who do not understand the core – misguided their clients into thinking that a 419.9k semi with 2 parking spaces in Wallace-Emerson could sell for under 550k – WRONG! Look at the comps – the comps don’t lie. The are reflection of the demand for an area.
Of the 40 offers on the table – what would interest me is seeing how many were REAL – and not put forth by agents who work in Richmond Hill, Mississauga, Pickering or elsewhere and have no real understanding of the core.
58 Armstrong Ave is not an example of a bubble. If this same property was listed at 529-549k with an offer deadline – it would like only see a small fraction of the 40 offers and still only go for around the 600k mark … do you now why??
Because that’s what it’s worth! Just like the 2012 Corvette is worth closer to 50k.
But hey … Real Estate is a hot topic – and if The Star didn’t write about it’s doom & gloom .. they’d have to write something with actual substance behind it .. unlikely.