In the past, we’ve talked about how while there may not be such a thing exactly as Black Friday for real estate, there are opportunities to buy homes at a discounted price.
When we wrote that article back in November 2020, one opportunity we identified was when a home is sold conditional and then that deal falls through. Such situations often result in sellers being motivated to find a new buyer and finally be done with the deal.
In that article, we talked about a specific home that was for sale and we thought we’d update you on what happened! Here’s what we said back then:
As of right now, there is one property that fits these criteria. It is vacant, want to close immediately and their previous conditional sale fell through.
It’s a detached two-storey home in east Toronto, near Kingston Road and Meadowvale Road. 4 bedrooms upstairs, a den in the basement, two and a half washrooms and is less than five years old.
It was listed September 29, 2020 for $849,900, holding back offers in the hopes of receiving multiple offers. That didn’t happen and on October 28, 2020 they upped the price to $949,900, accepting offers anytime. On November 16, 2020 it was sold conditional. Two days ago it came back on the market at $949,900.
Something went wrong with one (or more) of the conditions and as of today, it’s for sale again and has now been on the market for just under two months – 59 days.
Do you think an offer well below the current $949K would be considered on Tuesday, December 1st as the seller looks to another month on the market starting, with the holidays only weeks away? We would almost certainly classify the seller as motivated and willing to give on the sale price if they can get a firm deal done that closes soon.
We went back to check and see if we were right and whether there was in fact an opportunity for a buyer to scoop up the home at a discount. The answer is yes – we were right, and someone did seize the opportunity.
The home sold a week after their return to the market at $949,000 to a lucky buyer for $925,000. After 64 days on the market, multiple price changes and a failed conditional sale, the seller settled for 97% of their asking price.
That’s a good deal, but arguably not a great deal. In Black Friday terms, it’s a deal, but not a Door Crasher.
If we take the idea of a Door Crasher and apply it to real estate, it would mean a property that sells for a significant discount below the list price. In order to make sure it’s actually a great deal, it would also have to be a property where the sale price is considerably lower than what people typically pay for a similar home.
We’ve searched the GTA for the best deals that buyers have managed to obtain and here they are, your Black Friday Real Estate Door Crashers!
Door Crasher # 1 – Richmond Hill Townhouse
On November 18, 2021 our first Door Crasher sold in the Langstaff area of Richmond Hill.
Listed at $1,088,000, it sold for $880,000 after six days on the market. That’s only 81% of list price!
It’s a freehold townhouse with three bedrooms and two and half washrooms and a built-in garage.
A very similar home just a few doors down sold almost two years ago (December 2019) for $907,500. The average price for a townhouse has gone up 42% in Richmond Hill since then, so the fact that our Door Crasher townhouse sold for less than a comparable from back then makes this an absolute steal.
We can’t know the specifics around why the seller chose to accept such a low price, but it is clear from reviewing the sale and comparables that this home sold for a considerable discount. With a sale price of almost 20% below their list price and likely a similar actual discount versus the average on the street, this was absolutely a Door Crasher for a lucky buyer!
Door Crasher #2 – Toronto Semi-Detached
On November 13, 2021, our second Door Crasher sold in the Trinity-Bellwoods area of Toronto.
Listed at $1,600,000, it sold for $1,300,000 after 30 days on the market. Again, that’s just 81% of list price!
It’s a freehold semi-detached that is actually zoned as a legal duplex. It has 5 bedrooms, two full washrooms and two half washrooms and two kitchens. There is a detached two car garage that qualifies for conversion to laneway housing.
A very similar home a few doors down sold in April, 2021 for $1,650,000. It was also a semi-detached on a very similar lot but was not zoned as duplex. It appears to be a similar size but has fewer bedrooms and washrooms. It again has a detached garage that qualifies for laneway housing.
From an income perspective, the duplex would actually be worth more than a single-family home, but it clearly didn’t achieve that as it sold for $350,000 less than a nearby neighbour.
Again, it is impossible for us to know all the specifics around why the seller chose to accept such a discount on their list price. It was an estate sale so that may have impacted their willingness to do helpful work on the home or wait for a better offer. Given the sale price of $300K below their list price, which was already lower than a comparable sale price from earlier in the year, this was definitely a Door Crasher sale for the purchaser.
Door Crasher # 3 – Toronto Detached
On November 14, 2021, our third Door Crasher sold in the Lawrence Park North area of Toronto.
Listed at $1,499,000, it sold for $1,200,000 after 47 days on the market. That’s 80% of the list price!
It’s a freehold detached home with three bedrooms, one and half washrooms, a private driveway with three parking spaces and a finished basement with a separate entrance.
A semi-detached home across the street with a narrower and shallower lot sold for $1,620,000 in March, 2021. It has the same number of bedrooms and washrooms but only had one car parking.
We don’t know the reasoning behind why the seller of the detached sold for $420,000 less than the seller of a semi-detached across the street earlier in the year. We do know that the seller of this Door Crasher originally wanted $1.799M, which means their eventual $1.2M sale price is almost $600K less than what they hoped for initially. That definitely qualifies as a Door Crasher for the buyer of this home!