How You Can Make Sure You Sell Your Newmarket Rental Property For the Best Price
Newmarket continues to grow quickly and that’s good news for landlords and property investors.
Davis Drive is finally beginning to show signs of being completed. And for all the delays and frustration while it’s being constructed when it’s completed it will be an incredible improvement for Newmarket. Not only will we have a modern artery to move from east to west, it will lead to more commercial business investment and better public transportation.
Better transportation and more investment will mean more jobs and that will lead more people to want to make Newmarket their home. For landlords and property investors, this means more people will come to Newmarket in 2015 looking to rent and a larger tenant pool.
With all the construction leading to a huge new look and economic expansion many experienced landlords and Realtors are saying ‘Newmarket is the next Richmond Hill” or even better. The future of Newmarket looks good.
Selling Your Newmarket Rental Property
Even though the future of Newmarket looks good and there will be more jobs, better public transportation and more tenants, some landlords and investors want to sell their rental properties.
Why Do Newmarket Landlords Want To Sell Their Rentals?
There are many reasons.
1. Rental Property Price Appreciation
Many landlords and investors who own properties in Newmarket have seen some really fantastic appreciation over the past five years. Some properties have even doubled in price compared to fifteen years ago. Other properties are now selling for hundreds of thousands of dollars more compared to 2008-2009.
This means some landlords want to sell to cash out and enjoy the money they made off of this house appreciation.
2. Looking For Larger Investment Properties
Many landlords start off with a duplex or single family home with a basement unit. They have learned what it takes to become a successful landlord and want to move on to larger income properties. They decide to buy larger multiplex houses or even small buildings.
3. Had Enough With Bad Tenants
Newmarket is filled with good tenants…and also filled with bad tenants who know how to manipulate the system. While professional landlords who screen their tenants carefully (including a credit check) do well, some new landlords who don’t screen right end up with bad tenants.
These bad tenants can make your life incredibly stressful. They might not pay rent or pay rent late each month. They argue with other tenants. They might bring in lots of pets (even though you rented to them as a ‘no pet property’) or worse. You add this in with the unprofessional circus-like environment at Landlord Tenant Board hearings in Newmarket and some people feel they are just not up to being landlords in Ontario. They want to sell and move and do something else.
How To Sell Your Newmarket Rental Property For the Best Price?
Buying and selling residential property in Canada is far from being consumer friendly. Real estate agents control the MLS system (which is used to advertise properties) and they guard it carefully.
Complaints to the Canada Competition Bureau might lead to some changes in the future, but the reality is that at the moment the system gives real estate agents a lot of power and especially hurts real estate sellers.
How Much Should I List My House For?
For example, if you want to sell your house how can you know how much you should list it for?
With the current flawed system sellers don’t have access to ‘comparable’ properties in your area that have sold. You have to contact a real estate agent and they will use their closed system to look things up and then give you their opinion on how much to sell your property for.
Warning! Should I Trust My Real Estate Agent?
Some real estate agents are honest and will give you a good recommendation for a selling price. The problem is that others do not.
You have to realize that most real estate agents who will sell your property are going to get 2.5% of the sale price. What this means is there isn’t a huge dollar value to them if your house sells for $20,000 to $50,000 more or less.
What is important to them is the house “sells.” Because if it sells it means they get their commission.
When a house sells, it also means these types of real estate agents can pocket their fees from you and they don’t have to spend any more time with you and look for their next victim…ummmm, next clent.
What Does This Mean For Landlords Who Want to Sell Their Rental Property?
It means a couple of important points.
1. Low Listing Price and a Quick Sale
There is no incentive for the real estate agent to sell your property at the highest price. In fact, there is an incentive for real estate agents to “low ball” you and try to list your rental property cheap. Why? If they list it cheap they will make sure it sells (they get their commission)! As we just mentioned a lower listing price usually leads to a quicker sale.
2. Sellers Are Blind
Because non real estate agents don’t have access to the prices that other properties sold for in the area a real estate agent can ‘low ball’ you and you don’t even know you are being low balled!
We have even heard of situations where a real estate agent has selected a few comparable properties in the area that have sold for the lowest prices to give to the house seller. They only give the lowest comparable properties and conveniently don’t give information about properties on the street or in the area which sold at much higher prices. This way it’s easier to justify a lower selling price.
Newmarket Rental Properties Are Now Selling For High Prices
Don’t get ripped off by an unscrupulous real estate agent who undervalues your property to get a quick sale and a quick commission!
Newmarket landlords selling their investment properties need to be very careful who they hire as their real estate agent and be diligent in learning the true market for Newmarket rental properties.
Things have changed in Newmarket over the past few years and no decent duplex with a basement apartment should ever sell for less than $400,000 in today’s market.
Unfortunately we still see some real estate agents listing rental properties far below what they should be listed for.
Things Your Newmarket Real Estate Agent Doesn’t Want You To Know
Here’s an idea of what actual prices are in Newmarket for rental properties.
57 Longford Drive, Newmarket Ontario
This property is in what experienced Newmarket landlords call the ‘Patch.’ It’s a huge rental area that has traditionally been know to be run down.
In fact, it’s generally considered to be one of the worst neighbourhoods in Newmarket.
This little semi-detached at 57 Longford Dr. Newmarket, with an unregistered basement apartment, sold for $448,000 in November 2014! Ask real estate agent to give you a copy of the listing: MLS # N3030704
Newmarket Landlords Be Careful We see huge price differentials in properties being sold in Newmarket
The reality is there have many duplexes in Newmarket that have sold for well over $400,000 in the summer and fall of 2014.
Unfortunately we still see houses that are being listed far under market value in Newmarket. We see houses that are comparable to the two examples we provides (which sold for $458,500 and $448,000) being listed for tens of thousands of dollars less!
Contact Real Estate Agents In Other Areas, Not Just In Newmarket
Why not call a few real estate agents in Markham and Richmond Hill and ask them what they would list your property for. Don’t only rely on Newmarket real estate agents only. Make sure you shop around! Because there are tens of thousands of dollars at stake and don’t get ‘low-balled” and sell cheap.