PURCHASED UNDER ASKING!! A story of how a home was bought for less than asking in Toronto's crazy market.

What makes you choose one agent over another?  What skill sets are you looking for?  Do you ask for a commissions cut?  Do you bother asking what duties and services the agent provides prior to asking for a commissions cut?

There are approximately 40'000 realtors licensed through TREB. Roughly 80'000 properties sold last year in Toronto.  Thats 2 deals per agent.

Does your agent drive a cab, work in the service industry or public sector part time?  I'm asking because each question is worth money. You should be asking.

A realtor needs a variety of different skills to be effective, to do their job properly.  A realtor's true job is to act as your spear and shield on the battle field of negotiations.  You could teach a monkey to send you listings or point to the pantry in the kitchen while visiting open houses. Monkeys are cute and can be bought with bananas but you don't want one handling the biggest financial transaction of our life.

A realtor essentially fights to get as much money as possible for your home while trying to reduce the purchase price of the property you're buying.  In this hot, crazy, multiple offer riddled market I'm mostly determining value based on intimate knowledge of comparable sold listings while managing the expectations and emotions of my clients so they don't do something they regret like miss the perfect house over a few thousand dollars or agregiously overpay.

The home above was listed for multiple offers but on the offer date my clients and I where the only game in town.  I presented our below asking offer and was quickly told that the sellers where looking for over asking.  The house was worth it.  Recently sold, comparable homes suggested a price point at least 15K over asking.

It took some negotiating but we got the house 10K under asking, 10K less than a house that just sold on a less desirable section of the same street without a garage.  We were all looking at the same information and statistics but I was able to present our position in a way that swayed the minds of the seller and listing agent.

If I was worried about paying my realtor desk fees, or being late for my "real" job if negotiations took too long I wouldn't have been capable of bending the will of the sellers.  If I was doing this part time I would not have had the confidence, intel and skill necessary to demonstrate I'm an authority in the industry, that my research is valid, that my position on value is correct.

My clients were willing to pay more but they trusted me to shave the price just enough to get the best deal possible while not blowing the negotiation.

When choosing a realtor look at the big picture, focus on the big number, the number with 6 to 7 zero's behind it. A competent realtor will more than makeup the full commissions simply through negotiations, research, and design alterations to make prior to listing your home will dramatically improve value.  

Money is just dirty paper until you wield it in a way that changes your life. Don't march into battle with a cheap spear or shield.  When your ready to make a move call me I've got you covered.

Jimmy Vlachos
Royal LePage Signature
416-953-0781

Murray Anderson, CPO

Manager, Client Service at Paragon Security

To put it as simply as possible; Jimmy is the "YODA" of realestate. Jimmy has helped my wife and I with the purchase of our first home, the sale of that home and now the purchase of our new home. To say I recommend Jimmy, is an understatement!

May 8, 2015

SOLD (Purchasing Agent) $810,000 - Trendy Bloor West Modern Custom Reno

After a month and a half of multiple offers, 19 people showing up to compete for the same home  (162 Fern Ave in Roncesvalles), purchase prices $150000 over asking, all before Christmas shopping started, my clients were showing signs of fatigue.

Market fatigue sets in when bidding wars are the norm.  It's like PTSD for purchasers and it's no joke.  When hundreds of thousands of dollars are on the line the last thing you want to do is add stress, exhaustion, and  feelings of hopelessness to an already emotionally fueled decision. 

Luckily, my clients Danielle and Greg are champions and with just a few days rest over the Christmas holidays were able to rebound and refocus. 

We found this lovely home which had been sitting on the market for over 30 days during Toronto's first major snow storm.  It was just before Christmas. The asking price had recently been reduced by 30k  and our preliminary discussions with the listing agent suggested the seller were sticking to their guns on the new price. 

The odds of a home selling during the last 2 weeks of the year, especially one that has been sitting around for awhile are next to nil. It's also highly unlikely that anything is going to move the first week back from holidays as everyone is in a mad scramble to fill gym memberships and organize for 2014.  We decided to let the sellers sit for a time and re-consider the value of their home while we took a much needed break for turkey and wine.

The magnitude of the renovations on this property are incredible...  from the hand made, extra large wood planks milled for the floor, to the most money I've ever seen spent on residential light fixtures in a home under 1 Million Dollars, you couldn't help but feel like you walked into a magazine.

It's important to address issues as they arise.  Based on my conversations with the listing agent I didn't believe we were going to get everything I was asking for in the offer (staging furniture, art, price point etc..) BUT... you only have one chance to ask and if you wish to avoid regret it's best to use the negotiation period to ask for what you want!

After a lot of  negotiating and some ruffled feathers we managed to settle on a price and closing date that suited both parties.  A home inspection revealed some minor "upkeep" work that the sellers were willing to take care of prior to closing. 

Both parties are happy with the way things turned out and I'm certainly looking forward to the awesome parties that are sure to take place in this swanky new pad. 

If you need help Buying or Selling a home give me a call.  I'd be happy to help protect your interests.

Jimmy Vlachos - Income Properties - 416-953-0781