Newmarket Landlords and Investors ask: Why Do Some Real Estate Agents List Your Rental Property at an Under-Valued Price And What Can Landlords Do About It?
Many landlords who want to sell or buy an income or rental property feel frustrated about the difficulties in find the ‘sold’ prices of similar homes in the area. After all, we need sold data to know how much to list our house for (if you are seller) and need to know if the price is reasonable (if you are a buyer).
According to an article in the Toronto Star sellers and buyers in the U.S. can do their own research on properties using websites like Zillow and Trulia. Unfortunately in Canada we usually have to rely on a real estate agent to access vital information on prices in the Multiple Listing Service (MLS).
The Canadian Competition Bureau challenged the Toronto real estate board to open up competition and to allow better access to real estate information on the MLS system for the general public. The case went to the Canadian Supreme Court and is still going as there will be a Hearing at the competition tribunal at the end of this May.
In the meantime real estate agents don’t allow investors and landlords to see the prices of houses that have sold on the MLS system for themselves. They protect this invaluable information and keep it secret.
Newmarket Landlords Make Sure You Sell Your Rental Property For Real Value
It’s hard to find out what the house down the street sold for. What about a property similar to yours? How can you find out and know what you should really price your rental property for?
Real estate agents often don’t want you to know.
Many real estate agents will advise you to list at a certain price based on “their knowledge of the market.”
The problem is by listing your property for a lower price a real estate agent can usually get a quicker sale and a quicker commission…so do they really have your best interests at heart? Do they really want you to list at a competitive price or do they want to low-ball you so you list low, sell cheap, and they get a quick commission?
We see a huge disparity in prices of rental properties in Newmarket. There are sometimes price differences of tens of thousands of dollars between a property that has been listed and a very similar house that sold for a lot more just down the street!
Prices are rising fast for Newmarket rental properties
The reality is Newmarket rental properties are rising fast and becoming comparable to Richmond Hill rental properties. The problem is because the MLS ‘sold’ prices are not allowed to be viewed by the public, many sellers are simply unaware of how much value their Newmarket investment properties are really worth.
You are forced to ask a real estate agent for help and they usually want to be the ones listing your property in exchange for this ‘help.’ Sure there are some good real estate agents who will give you good access to comparable properties that sold in the area. There are also bad ones who want to rip you off by low-balling your sale price so they can get an easy and fast commission.
We see some property owners losing $20,000 to $100,000 on what they could have sold their property for if they knew what other similar properties were sold for.
Let’s Look At Some Recent Sold Prices
To make sure you list at the right price you need to know what other rental properties are selling for in Newmarket. This is exactly what some do not want you to find out and why we will show you what the real value of typical Newmarket rental properties are.
708 Mountview Place, Newmarket ON L3Y3P7 – Sold for $474,000 in November, 2014
The Patterson Street area is nice and a great area for income properties. Mountview Place is a good street in a happy and safe neighbourhood. It’s close to schools, Southlake Hospital and Richardson Park (a truly beautiful park with soccer fields, basement diamonds, trails, and a pond).
This is a semi-detached bungalow that was listed for $469,900 and sold for $474,000 in only 3 days on November, 28 2014. You can see the MLS record at #N3O72529
It’s a great indicator of what rental properties with basement apartments should be selling for in the family friendly and cozy Patterson St. area.
Let’s take a closer look at the property and why it was sold for that price.
The living room is average. The window isn’t a bay window and it the lighting hasn’t been upgraded.
The kitchen is average. The cupboards don’t look upgraded and there isn’t an island.
There is a separate entrance into the basement apartment which is important. The space for the basement tenant to get in has limited space. The individual mailbox is nice.
The carpet on the stairs looks old and the flooring is simply laminate that isn’t very expensive to put down.
The kitchen is pretty nice, although not very large.
The bathroom is average.
The backyard is also average. There is a small shed which is handy but no lawn for children to play on. The central a/c is nice.
Overall this is a pretty nice property, legal, and in a good are but it’s nothing spectacular and it sold for $474,000 in only three days.
Why Did This Property Sell At Such A High Price and So Fast?
It’s because it has value. The area attracts a lot of terrific renters who pay on time and pay high rents.
If you have a rental duplex in the the Patterson Street., Newmarket area you should be looking at selling at least $450,000 and possibly list for over $500,000 in 2015 Don’t trust a real estate agent who doesn’t give you the real facts on the value of Newmarket rental properties.
256 Penn Avenue, Newmarket, ON, L3Y2S6- Sold for $480,000 in January 2015
The area around Penn Avenue is not as nice as the Patterson Street area. Even though the area is often called the “dog patch” of Newmarket by long-term residents it’s an area that is improving each year and has a lot of rental properties.
As it’s improving, smart sellers are realizing the true value of their rental property and getting the prices they should get for this value.
For example, let’s look at 256 Penn Avenue. It was first listed at $478,800 and sold for It sold for $480,000 on January 27, 2015. It was sold by RE/MAX Hallmark York Group Realty Ltd in Aurora (Hmmm, not a Newmarket real estate agent!)
The front of the property is average. If you drive past the property this is actually a flattering picture of it.
The living room looks nice, but it’s small and not breath-taking.
Very small kitchen in the downstairs unit and it’s out-dated.
It’s always a good idea to provide your Newmarket tenants with a washer and dryer. This is pretty small though.
The downstairs bathroom is nice and has a bathtub.
Why Did This Property Sell For A High Price?
This is a great example to read because other similar properties in the area have been listed by Newmarket real estate agents for tens of thousands of dollars less!
Why? Don’t get ripped off and make sure you list your rental property for what it truly is worth!
People want to buy income producing properties and they are now coming to Newmarket.
Buying or Selling a Newmarket Rental Property or Aurora Rental Property
Newmarket and Aurora landlords who want to sell their rental properties are basically blind when it comes to knowing how much your property can sell for.
Make sure you do lots of research and don’t let a real estate agent “low-ball” you! Newmarket real estate is booming and investors and buyers from Toronto and the rest of the GTA are coming.
No half-decent rental property duplex in Newmarket should be listed at anything less than $450,000 in 2015!
If you are in a great family area such as near Patterson Street you should be looking at $475,000 to over $500,000 in 2015.
Income properties in the Toronto and the GTA are sky-rocketing and investors are coming to Newmarket. Make sure you know the true value of your Newmarket rental property!