#10259021 - 05/19/22 05:15 AM
Re: dat real estate v.2021
[Re: A2B-Lexus]
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Risky Business (he/him)
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I just went through this and it was very painful.
People hardly every walk away from deals though, tons of prior market precedent of them getting bent over in court. If you plan to not close on a purchase prepare to declare bankruptcy or your assets will get wiped out.
Good article, Mark Morris is one of the best lawyers in the city btw!
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#10259428 - 05/19/22 02:06 PM
Re: dat real estate v.2021
[Re: SuPeR-MaRiO]
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Risky Business (he/him)
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If you bought for 1.5M and put 100k down...3 months later you don't close and walk away.
It starts by you losing the 100k,
Then the seller has to relist, let's say they get 1.1M because market took a dump (like now).
Now they got 400k less than what you paid plus there will be legal fees and other carrying costs for this. There is plenty of case law that the court will award the damages to the seller, so now 100k deposit goes toward that payout, then you are personally liable for the other 300k+ in addition.
Walking away from a deal here is not for the faint of heart, which is why most deals close.
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#10259525 - 05/19/22 03:43 PM
Re: dat real estate v.2021
[Re: Hatorade]
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Risky Business (he/him)
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I was in on a convo with Mark (the lawyer) that was quoted in the article that was posted a few posts up, this was a week or so ago.
Effectively in 2017 when this exact same thing happened people ran to the bank of Mom and Dad to come up with the difference to close if appraisals came in short.
What he said is different this time around compared to 2017 is that the bank of mom and dad which relies on HELOCs is much more stretched, parents usually already raided the HELOC to help with the downpayment or bought other properties, so there is less cushion.
The way i see it now they will be raiding the RRSP and withdrawing early because it's probably still the better alternative than not closing and getting wiped out.
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#10259636 - 05/19/22 05:20 PM
Re: dat real estate v.2021
[Re: Hatorade]
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Risky Business (he/him)
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Good luck man, it's a shitshow. I got a firm offer on my Integra GSR Wismer listing last week, we sold firm below market but they came in with a high deposit, firm, no conditions, and 30 day close. We had higher offers, people were putting ridiculous conditions, escape clauses, and 90 day closings lol
Post up what happens after you sell, should be entertaining.
edit: just saw listing, you are in prime shitshow territory, should be ok though lots of demand for that type of place  dis gun b gud
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#10259832 - 05/19/22 09:55 PM
Re: dat real estate v.2021
[Re: Risky Business (he/him)]
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A2B-Lexus
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Registered: 04/19/01
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Loc: Raptors Land
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sounds like a solid offer. GL!
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#10263722 - 05/26/22 01:10 PM
Re: dat real estate v.2021
[Re: RatZero]
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furball
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Registered: 09/24/03
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Loc: Toronto, ON
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Dat ass …. Err dat real estate. https://instagram.com/the.yueyue
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#10263993 - 05/26/22 05:07 PM
Re: dat real estate v.2021
[Re: RatZero]
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Risky Business (he/him)
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Oh my fuck the whole real estate process has changed since the last time we sold a house in 1998, pre internet. Used to be you'd tidy up, and list it.
Had stagers in last week, told us what needed to be dealt with, basically moving all the packrats (wife and son) stuff out. They were back for the froo froo shit, then photos, video, drone shots and some sort of 3d scanning operation of the whole house. Ok boomer, I know.
Listing should be up tomorrow or Friday. Fuck I hope this is over soon. Never again.
Good luck man, timing wise this is probably not the best time to list, we have a rate hike announcement next week and it's likely to be 50bps so it's going to further cool the market.
Hopefully you get some of the old pre approved buyers looking to buy to lock in their old rates. Be ready to do a quick closing. It's a very tough market for sellers right now unless you are in Toronto proper or have some unicorn property.
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#10266663 - 06/01/22 03:06 PM
Re: dat real estate v.2021
[Re: Hatorade]
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Risky Business (he/him)
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Just to update how the sale of the townhouse went. Just sold it for 6% under expectation.
Had the home listed with an offer date about 21% under expectation to drive traffic. Worked great had over 30 showings over 7 days and here's how it went down:
- received preemp on day 2 7% over asking with full conditions LOL
- offer night - 2 offers one was just over asking and the 2nd offer was 10% over. Well below expectation so no deal
- adjusted price following day above expectation for wiggle room
- ZERO showings for a week
- adjusted price again to 6% under expectation with offer presentation
- ZERO showings again LOLOLOLOL
So how did I end up selling it? I insisted on doing open house, my clients were reluctant. When the home first came to market I did an open house the same weekend. 2 sisters came in (1 is an agent). Didn't do open house during long weekend. Did an open house this past weekend and who comes in again... This time it was the non-agent sister with her parents. Hook line and sinker. Told her to have her sister call me. Long story short, the entire family came to see the home over the weekend during the open house. By the way, they were also the ONLY people to come to the open house during the past weekend.
All in all I'm pretty happy with how it went. Clients are not though, but with how fast things keep changing and with the next rake hike just days away I strongly believe this was the right call. Otherwise the already stale listing was just going to sit and we would eventually end up selling for less.
You got horseshoes dude, this is like the best open house to offer ratios evAR lol. Sellers should be grateful they managed to unload (hopefully short close), more pandemonium now from today's 50 bps hike, now they are saying July is already confirmed for another 50 bps. (although somehow I am not that confident, by then we will get data the economy is in the gutter and people are getting crushed from inflation).
Pickering is getting smashed bad, probably one of the worst performers along with Whitby, Brampton, Burlington.
I pulled a bunch of stats covering how bad the situation is here:
https://youtu.be/pcG-rynqBuc
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#10267066 - 06/02/22 07:10 AM
Re: dat real estate v.2021
[Re: Risky Business (he/him)]
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c2k
Post Master Supreme
Registered: 05/21/00
Posts: 19309
Loc: Wiesloch-Walldorf, Germany
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Just to update how the sale of the townhouse went. Just sold it for 6% under expectation.
Had the home listed with an offer date about 21% under expectation to drive traffic. Worked great had over 30 showings over 7 days and here's how it went down:
- received preemp on day 2 7% over asking with full conditions LOL
- offer night - 2 offers one was just over asking and the 2nd offer was 10% over. Well below expectation so no deal
- adjusted price following day above expectation for wiggle room
- ZERO showings for a week
- adjusted price again to 6% under expectation with offer presentation
- ZERO showings again LOLOLOLOL
So how did I end up selling it? I insisted on doing open house, my clients were reluctant. When the home first came to market I did an open house the same weekend. 2 sisters came in (1 is an agent). Didn't do open house during long weekend. Did an open house this past weekend and who comes in again... This time it was the non-agent sister with her parents. Hook line and sinker. Told her to have her sister call me. Long story short, the entire family came to see the home over the weekend during the open house. By the way, they were also the ONLY people to come to the open house during the past weekend.
All in all I'm pretty happy with how it went. Clients are not though, but with how fast things keep changing and with the next rake hike just days away I strongly believe this was the right call. Otherwise the already stale listing was just going to sit and we would eventually end up selling for less.
You got horseshoes dude, this is like the best open house to offer ratios evAR lol. Sellers should be grateful they managed to unload (hopefully short close), more pandemonium now from today's 50 bps hike, now they are saying July is already confirmed for another 50 bps. (although somehow I am not that confident, by then we will get data the economy is in the gutter and people are getting crushed from inflation). Pickering is getting smashed bad, probably one of the worst performers along with Whitby, Brampton, Burlington. I pulled a bunch of stats covering how bad the situation is here: https://youtu.be/pcG-rynqBuc
That was a great video! What about Hamilton Area? Specifically Dundas / Ancaster / Waterdown / Burlington area?
_________________________
Who cares
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#10267095 - 06/02/22 08:43 AM
Re: dat real estate v.2021
[Re: c2k]
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Hamilton Mountain/Ancaster holding up fairly well, as long as you aren't in Hamilton near the Industrial areas it's definitely outperforming the GTA.
Burlington getting smashed, Oakville too, just a little less, Mississauga the only one being somewhat resilient, but still going down.
Edited by Risky Business (06/02/22 08:44 AM)
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#10270548 - 06/08/22 07:17 PM
Re: dat real estate v.2021
[Re: RatZero]
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Oh my fuck the whole real estate process has changed since the last time we sold a house in 1998, pre internet. Used to be you'd tidy up, and list it.
Had stagers in last week, told us what needed to be dealt with, basically moving all the packrats (wife and son) stuff out. They were back for the froo froo shit, then photos, video, drone shots and some sort of 3d scanning operation of the whole house. Ok boomer, I know.
Listing should be up tomorrow or Friday. Fuck I hope this is over soon. Never again.
Any update on this? Hopefully you were able to sell.
Totally dead right now, although some of my investor clients are starting to wake up again.
https://youtu.be/3Prz9QF6Juk
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#10273208 - 06/13/22 06:51 PM
Re: dat real estate v.2021
[Re: Risky Business (he/him)]
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RatZero
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Registered: 04/28/02
Posts: 10930
Loc: Canadar
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Oh my fuck the whole real estate process has changed since the last time we sold a house in 1998, pre internet. Used to be you'd tidy up, and list it.
Had stagers in last week, told us what needed to be dealt with, basically moving all the packrats (wife and son) stuff out. They were back for the froo froo shit, then photos, video, drone shots and some sort of 3d scanning operation of the whole house. Ok boomer, I know.
Listing should be up tomorrow or Friday. Fuck I hope this is over soon. Never again. Any update on this? Hopefully you were able to sell. Totally dead right now, although some of my investor clients are starting to wake up again. https://youtu.be/3Prz9QF6Juk
Nope no sale yet, still getting showings but I'm pretty pessimistic at the moment, timing is really bad. Actually had the couple selling the place we are buying see it twice, but no offer.
Just had a 6:30 showing request tonight, at 6:05. Hated to deny but damn that's not much lead time.
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#10273365 - 06/14/22 04:55 AM
Re: dat real estate v.2021
[Re: RatZero]
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^That's scummy (the 25 minute heads up from an agent - typical shit).
Are you going to be able to close on the new place without the sale of this one?
I don't know how long you've been on the market, but I'd get very aggressive with trying to sell in the next week or two. Might have to drop the price, possibly up the co-op commission. Really depends on your specific market and if there are competing listings.
In the next 3 months I think things will get worse before they get better, just a guess anyway.
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#10273378 - 06/14/22 07:23 AM
Re: dat real estate v.2021
[Re: Risky Business (he/him)]
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RatZero
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Loc: Canadar
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Won't be closing on the new one without the sale of mine, have that as a condition, so I'm willing to let the whole deal fall apart. If my seller were to list today, it wouldn't be at the price they did, ours would be listed lower as well, but I have an agreed upon deal, so only way to not take it up the ass is to not sell for less.
It's still early, only been listed about 3 weeks, so it's waiting time. I've read a bunch of analysis, there are people who will want to secure something before their locked in rates expire, so there's that.
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#10273482 - 06/14/22 10:56 AM
Re: dat real estate v.2021
[Re: RatZero]
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Risky Business (he/him)
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That last part somewhat sailed about a month ago, ppl looking to lock in old rates. Everyone is on the sideline simply because prices are dropping faster than the rate savings they would get from locking in.
Well at least you have that condition, if you didn't you'd be totally screwed right now. The sellers are best suited to buy your house at this point otherwise this thing will fall apart.
Keep us posted either way, will be good learning for everyone.
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#10276508 - 06/20/22 10:09 AM
Re: dat real estate v.2021
[Re: Hatorade]
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furball
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#10276891 - 06/21/22 04:53 AM
Re: dat real estate v.2021
[Re: furball]
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Risky Business (he/him)
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Elevators in houses sound cool and all, until you go to a house with one and realize you are typically dealing with some Walmart level quality 'elevator' and would rather take the stairs.
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#10276892 - 06/21/22 04:56 AM
Re: dat real estate v.2021
[Re: Risky Business (he/him)]
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Risky Business (he/him)
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#10276943 - 06/21/22 09:18 AM
Re: dat real estate v.2021
[Re: Big Tasty]
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I figured the aventador would be a hit so I had to troll near it as well
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#10278959 - 06/24/22 12:05 PM
Re: dat real estate v.2021
[Re: Risky Business (he/him)]
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Risky Business (he/him)
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#10279311 - 06/25/22 11:29 AM
Re: dat real estate v.2021
[Re: RatZero]
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I gotta say when you first posted your thread in OT, in my head I was like  the timing was pretty bad.
Everything was tanking at the time with no stopping (it still is, just slower) Good thing you had that condition or you'd be majorly fucked right now like a ton of people getting sued left and right.
You will definitely do better now buying a bigger place at a discount even if you sell yours at a discount, the spread will be smaller.
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