Newmarket Real Estate Prices – What Many Real Estate Agents Don’t Want You To Know!
A recent story in the Toronto Star surprised a lot of people not only in our area but across Ontario. It was about the rapid rise of property values in the province.
Rising prices you say? That’s hardly surprising, right? But this story was specifically about what is happening in York Region where prices are rising faster than any region. York Region saw the biggest price gains in September with detached homes going up by nearly 15% over September 2014.
It’s a huge price increase and shows how dynamic our area is. It’s also in line with what we wrote earlier about the higher prices for Newmarket rental properties.
Newmarket Real Estate Prices – Know Your Real Value (and don’t get ripped off by a bad real estate agent)
Despite the huge gains in York Region and prices rising fast we still see some people selling their properties far under their real value. We see a bunch of house selling on a street in Newmarket for a similar high price, and then another that is tens of thousands of dollars less. There is a definite pattern visible.
Homeowners aren’t stupid and certainly want to get the best price possible for their home. So why are some Newmarket houses so undervalued and selling tens of thousands of dollars less than what they could get?
The Real Value of Your Home Could Be A Lot More Than Your Real Estate Agent Is Telling You
Unlike in the United States, real estate sold prices are “hidden” in Ontario. You see, most sales are done via the MLS system which is controlled by real estate agents and their representatives.
The MLS is the multiple Listing Service where most properties get advertised to other agents and potential buyers. While you can go online to the MLS webiste and see the listing prices, you (the general public) are kept from seeing the “sold” prices for homes in your area or the area you want to invest in.If you want to find out what a property sold for you need to ask a real estate agent to log in to their system and get them for you.
Why Is This A Problem?
It’s a potential problem because you need to rely on the real estate agent to show you the ‘sold’ prices. You must rely on what they decide to show you.
We’ve heard from many people who say the information that was provided to them was very limited. This means you should ask yourself if the real estate agent presented you with a complete list of properties sold. Did they show you the higher priced properties?
Did they show you all properties similar to yours? With the current system you just don’t know and are essentially kept blind.
I Still Don’t See A Problem
Let’s discuss this some more. Some people think every real estate agent will try to get you the highest price because it means they will make more money themselves, right? Wrong.
The real estate agent only gets a percentage commission as the “selling agent.” In Newmarket many still even want to charge 2% (when agents are only charging 0.5% in Richmond Hill and Markham) and this high price is another reason you should “shop around” when choosing a real estate agent.
A property that is listed at a higher price will require more ‘work’ by the real estate agent. They will need to do things such as having open houses, networking with other agents who might have buyers, etc. But if the property is listed below market value they will get a quick sale and can move on to the next property to sell.
And because they are getting a percentage the difference between selling a property at $450,000 instead of $500,000 is negligible (although it’s a huge hit for the property owner who sold at the low ball price!)
Be warned: this type of low balling happens all the time in Newmarket.
By listing the property lower than others in your area (which the real estate knows about as they have access to the MLS “sold” records and you don’t) they can get a quick and easy sale and it’s fast money in their bank account. You, the owner, are blind to the market reality. So even though your home is probably the biggest financial investment in your life the current system makes you rely on the ethics of one person (your real estate agent).
Is this fair? No it isn’t. And it’s a risk, so be careful.
Sure there are good and ethical agents out there. The problem is it only takes one person to lead you to losing tens of thousands of dollars. As we mentioned, experienced Newmarket real estate investors have seen properties sell for $10,000 to even $100,000 less than what they could have sold for. The real estate agent gets a fast sale with little to no work done, collects their percentage fee and you are the one getting ripped off. Do you see the logic involved?
Don’t Get Ripped Off and Sell Your Property At the Right Price
Make sure you don’t become a victim by making sure you know what the real value of your property is. The reality is Newmarket, Aurora, Bradford, Queensville, Stoufville, Keswick are all booming.
To provide our huge readership with some helpful information here are some recent sales in our area.
Newmarket Detached Houses (and what they really are selling for)
Detached homes in Toronto are selling for well over $1,000,000. And for that price you are usually getting a very small house that requires a lot of work.
According to the Aurora Banner York Region is the next hot spot with detached homes soon to also average over $1,000,000. This is a great news for home-owners. In Aurora new exciting developments such as Aurora Glen (on Leslie and Wellington) sold out in a couple of days for single family homes selling at over $1,200,000. New developments in Newmarket, such as in Glenway, are starting at over a million dollars as well.
Here are a couple of Newmarket detached homes that sold recently to give you the REAL STORY on what properties are selling for in Newmarket. (Remember, some real estate agents don’t want you to know this!)
22 Old Field Cres. N, Newmarket, Ontario L9N 0A5 Sold For $870,000
This is a nice property in the popular Minto community near Yonge Street and Green Lane (great shopping area) that’s behind Costco.
104 Thatcher Cres. Newmarket, Ontario Sold For $835,000
This is a nice property. But it’s nothing special. If you drive by it you will see it’s really squished between the neighbouring houses.
More Proof of Low-Balling House Price Listings: Take a Look at 206 Aspenwood Drive, Newmarket.
This house was listed at $749,000.
It sold in a little over a week for...$806,000. The real estate agent undervalued the property by $56,000!
Be careful when selling your home. Don’t get ripped off!
Stouffville Property Prices
This will be another post later on, but even Stouffville real estate is rising fast with townhouse selling fast and for high prices.
3 Lodestone Lane, Stouffville Ontario Sold For $630,000 On Oct. 13th, 2015
Newmarket Rental Properties
This site is primarily for landlords and property investors so let’s talk about the prices Newmarket Rental properties are selling for these days. The super healthy market and appreciating prices have caught the attention of landlords and investors across Canada.
100 Sheldon Ave. Newmarket Ontario Sold For $508,000 on October 24th.
Yes, you read that right. This little semi-detached bungalow sold for over 500k.
Why? It has a basement apartment, also know as the “cash flow generator” or “tenant pays my mortgage suite.” And the basement isn’t even legal! But these types of properties are hard to find in the GTA. You can live in the upstairs and rent your basement and you basically have no mortgage.
Newmarket is one of the last markets in the GTA where these types of properties can be found for less than $600,000. This property is in the “dogpatch” area of Newmarket, which is considered the worst part of Newmarket. However with all the new investment coming in and rising prices the “dogpatch” is becoming the “goldenpatch” and changing fast. This is especially so as Davis Drive has been redone and the whole area is improving.
Yes over 500k is now the “new normal” for a semi with a basement apartment in Newmarket.
The living room is nothing special.
Bathroom needs some major upgrades. Here’s the basement apartment to be rented out.
Where are the walls for a living room and where are the bedrooms?
Another look at the property. So if your real estate agent wants to say this was a “special place” you can now see the truth and your real estate agent is lying to you.
Remember, people want to buy places with basement apartments and if your house has one you can sell it for a premium price. Don’t let a shady real estate agent low ball you and rip you off.
Now let’s look at another rental property that sold recently.
88 Newbury Drive, Newmarket Ontario Sold For $515,200 on October 16, 2015
Another property in Newmarket that sold for a high price. This is the “real story” on Newmarket house prices. Let’s take a closer look at this property in case a shady real estate agent tries to convince you it’s a “special case”. Now let’s look at another rental that sold recently.
This is also a semi in what is considered the ‘worst part of town’ (although this is changing fast).
Typical, small living room.
Bedrooms are also common and nothing special.
Basement apartment is nothing special at all. And it’s not even legal!
The stairs need to be stained.
The backyard is just okay, needs work.
Newmarket Property Prices Are Rising Fast.
Make sure you sell your property for the right price and don’t get ripped off by real estate agents who want to low-ball you. If you are a landlord or property investor we recommend you joint the Ontario Landlords Association for the tools and services you need to succeed.