Toronto Real Estate Blog

The listing price is a key component of the valuation and sale of a property in the Toronto real estate market. The closer the list price to market value, the more likely that a higher sale price will be realized within a reasonable period of time. A list price at or close to market value will attract the most number of serious buyers. A heightened demand will usually translate into a higher selling price.

Simply put, a buyer, upon seeing a well priced property, will become anxious to make a good offer before anyone else realizes the property’s excellent value. As a result, it will be the seller and not the buyer who will be able to negotiate from a position of strength. Therefore, under normal circumstances, it is very likely that the buyer will pay top price to get the property before anyone else does.

While there are no absolutes concerning listing prices, it is generally recommended that the list price be no more than 2-3% above the estimated value or value range. If the estimated value is $305,000, then perhaps a list price of $314,900 should be recommended. Of course you should also look at your competition in determining the proper listing price.

Often, sellers misunderstand the process of determining a listing price. You can often hear them say “let’s list the property 10% higher just in case we get lucky” or “we need to list the property 10% higher to leave room for negotiations”. In both cases, a listing price 10% higher than the market value could very well be overpricing the seller’s property.

If the list price is indeed too high, then the seller’s property will probably be eliminated by the serious buyers who otherwise would have considered buying it. In fact, serious buyers may either not look at the property at all or will use it to justify buying another property that is much better priced in comparison.

Of course a buyer may still make an offer on an overpriced property. However, in these situations, it is the buyer that will be in a position of strength in the negotiations as he/she will be aware that they will not be in competition for the property. Indeed they may be the only offer that comes along. As a result, they will often be able to negotiate a price at the low end of or below market value (depending on how long the property has been on the market and how frustrated and desperate the seller has become).

Some sellers will counter the argument that the listing price is too high by saying “you can always lower the listing price later”. The problem here is that a property will after a time suffer from the problem of Market Staleness. As the weeks drag on, fewer and fewer buyers will look at the property. Buyers will often ask how long a property has been on the market for and be very suspicious of a property that has been listed for a while.

Even where property is finally realistically listed after nine months of marketing, buyers will make remarks such as “there must be something wrong with the home, its been on the market so long” or “the property has been on the market so long it must be overpriced” or “the property has been on the market so long, the sellers must be desperate”.

The end result is often that an overpriced property is on the market longer than necessary and the price received is generally lower than it would have been if it had been listed realistically in the first place.

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Monarch offers final inventory of two popular layouts

The purchasers are calling the shots at Monarch’s Battery Park building in Liberty Village. Demand has been incredible at this popular site, and Monarch has responded with the introduction of a new selection of condos to accommodate requests for two of their most sought-after layouts.

By remodeling floor plans, Monarch has introduced new offerings of the two-bedroom Richmond model and the Niagara studio condo. Both have proven incredibly popular for Battery Park buyers, who are reacting to the condos‘ expansive rooms and efficient use of space. Both condos feature large balconies, extensive storage space and principal rooms truly designed for living. The value-laden price points found throughout the building also help make these condos a feasible option for the young urban buyers making their way to Battery Park.

“Though the building in its entirety has been incredibly successful, these two suite designs have obviously wowed Battery Park buyers,” says Linda Mitchell, Monarch’s vice-president of Sales and Marketing, High-rise. “In order to accommodate the demand, we’ve reworked our floor plans to offer more of these units. And of course, all the same wonderful features will still be available.”

Suites come fully loaded with a range of features, including ensuite laundry, a full appliance package and strip laminate flooring in the living and dining areas, den and hallways. Like the Niagara and the Richmond, most condos also include balconies and all come with one storage locker.

Situated in downtown Toronto’s thriving King West Village, the building features sweeping views of the surrounding area from many suites. But that’s not all. Battery Park also offers a range of amenities, including an electronic news lounge, 24-hour concierge/security, a car wash bay in the underground parking, two designer-decorated guest suites and a fully furnished meeting room.

There is also the fabulous Battery Park Club, featuring a decorated party room with a caterer’s kitchen and bar opening onto a private patio with barbecue. The building also has an indoor swimming pool and whirlpool, steam rooms, a fitness room and his/hers change rooms with showers and lockers.

But the amenities don’t stop at the front door. Located within the 45-acre master-planned Liberty Village community in the heart of King West Village, Battery Park is located steps from a new 24-hour Dominion grocery store, as well as a Blockbuster Video and several other shops and services within the community itself.

The building is a short walk to the CNE and the lakefront as well as to King and Queen Streets West, a vibrant part of Toronto’s downtown. There, Battery Park buyers will be able to take advantage of all the trendy shops, restaurants and clubs located throughout the area.

Named the first ever Builder of the Year by the Ontario Home Builders’ Association, Monarch is one of Canada’s most respected builders, with thousands of commercial and residential properties throughout North America. The company, founded in 1917, has developed countless single-family neighbourhoods and continues to build successful condominium communities throughout the GTA.

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From New Homes & Condos Magazine

Construction is well underway at Zip Condos + Lofts – Monarch Corporation’s successful condominium that’s now under construction in the 45-acre Liberty Village master-planned community at King and Strachan. Zip is now 90% sold, and a choice selection of suites remains for those who act quickly.

One of Toronto’s most hip downtown locations, Liberty Village has a lot to do with Zip’s popularity. Right in the vicinity, residents will be able to access boutiques, cafés, galleries, pubs and nightclubs, plus there is a 24-hour Dominion next door. Major highways are handy, making this location even more desirable.

The striking 24-storey condominium crafted from glass, brick and precast will offer a wide variety of amenities and services. Zip will rise from a podium housing retail, recreational and residential elements. Uniformed 24-hour concierge/security will see to pampering residents, who will also have the use of two designer-decorated guest suites, and a car wash bay in the underground parking.

The Zip Club will include a designer-decorated special occasion/party room with a caterer’s kitchen, bar and a landscaped patio with barbeque. Also in this recreational and entertainment venue will be a sports lounge with a billiard table, dart board and television and a high-tech cyber lounge with computer stations.

Also in this building are a theatre equipped for private screenings; a fitness room with cardio, yoga and aerobics areas, plus commercial grade fitness equipment complete with TV viewing during workouts. And because Zip follows on the heels of Monarch’s Phase 1 Battery Park condominium, Zip residents will have access to The Battery Park Club, which encompasses a meeting room, indoor swimming pool, whirlpool, and his and hers change rooms complete with steam rooms, showers and lockers.

The extra wide floor plans at Zip maximize light from expansive windows. Luxurious features include strip laminate flooring in the living/dining room, kitchen, foyer, den and hallways; 40-oz. broadloom or sisal carpeting in the bedrooms; cultured marble bathroom countertops with an integrated contemporary wash basin; and ceramic tile bathroom flooring. Interior design firm Cecconi Simone custom designed Zip’s kitchens with ceramic tile backsplashes, pantries and/or breakfast bars, and a complete brand-name, white appliance package. For a limited time, purchase at Zip and receive a complimentary stainless steel kitchen appliance package and granite kitchen countertop.

One of Canada’s most respected builders, Monarch was named the first ever Builder of the Year by the Ontario Home Builders’ Association. The company has thousands of commercial and condominium properties throughout North America in its impressive portfolio.

Condominiums at Zip range in size from studios of 390 sq. ft. to two-bedroom-plus-den designs at 1,111 sq. ft. and are priced from $130,990.

New Homes & Condos Magazine is an excellent source of housing information for those looking for information on new homes in Ontario, Canada. We offer the most up-to-date information on new communities across the Greater Toronto Area.

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CBC News

Toronto Mayor David Miller suffered his biggest political defeat Monday as council narrowly voted to delay any decision on bringing in two controversial new taxes until at least October.

In a 23 to 22 vote, council decided that any decision on new taxes on land transfers and vehicle registration should wait until after the provincial election.

Miller dodged questions after the vote about whether this was a personal defeat, and instead warned massive service cuts and huge property tax increases are now likely.

“It’s not been my style to create a crisis,” he said. “But we’ve reached a point where the city’s budget is not sustainable.”

Coun. Case Ootes said the vote is a stark wake-up call to Miller that citizens want more control on spending at City Hall.

“He lost big today. And he better start listening to the people of this city. They’re not happy with the way this place is run,” he said.

Miller had argued that the new taxes were essential if the city is to prosper.

As debate got underway Monday on the controversial taxes, Miller told council the city must follow other cities such as New York, Berlin and Shanghai, and break away from dependence on property taxes.

“If we do not invest, this city of Toronto will be left behind,” said Miller.

Admitting the taxes are not popular, Miller said if introducing them were easy, that would have been done already.

The measures are an annual vehicle registration fee of $60 for most passenger vehicles and $30 for motorcycles and a tax to match the provincial land transfer tax on house purchases. The taxes are expected to raise more than $365 million per year.

The house purchase tax would add over $4,000 to the cost of a $400,000 home.

Groups such as the Toronto Real Estate Board and the Canadian Federation of Independent Business have condemned the proposed plan, but the mayor and supporters say the taxes are needed to prevent either large service cuts or big property tax increases.

“This has struck a chord, so the members of council are getting lots of calls from the residents, and there’s pure anger,” Coun. Denzil Minnan-Wong told CBC News before the debate began.

“And on the other side is David Miller doing his arm twisting on the council floor.”

The public viewing areas at City Hall were standing room only as the debate got underway Monday.

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Jeff Gray – Globe and Mail

The Greater Toronto Area’s standard of living sagged over the past five years as its manufacturing sector shed 100,000 jobs – a trend that threatens the city’s future prosperity, according to a report to be released today by the TD Bank Financial Group.

The region is lagging behind its competitors in the U.S. and the rest of Canada, said Don Drummond, the bank’s chief economist. And for the first time in history, the city of Toronto’s unemployment rate, at 8.1% on average over the past five years, was higher than the national average at 7.2%. The central city’s rate was also much higher than the surrounding 905 area code’s unemployment rate, which was 6.5%.

“I think a standard view, certainly of people who don’t live in the city of Toronto, is this is the economic capital of the country – but arguably not any more,” he told a meeting of The Globe and Mail’s editorial board yesterday.

The comments came as Toronto city council debated two controversial new taxes, which Mr. Drummond – who had previously dismissed claims the taxes would have major economic impacts – argued yesterday should be considered only as a last resort.

Mayor David Miller has been pushing for two new taxes, one a fee of up to 2% on Toronto real estate purchases and the other a $60 surcharge on motor vehicle registrations, to help fix the city’s financial problems. But city council, in surprising defeat for Mr. Miller after hours of debate, voted to defer considering the two new taxes until October.

While not completely opposed to any new taxes, Mr. Drummond said the city should first look to cheaper and more “innovative” ways to deliver services, such as contracting out and working with the private sector.

He also said that the city should use any new taxes it imposes to achieve public policy goals, such as imposing road tolls to help deal with traffic congestion.

Neither of the two proposed taxes would likely influence public behaviour, he said, although the land transfer tax might “feed into” an already slowing trend in the city’s housing market.

Mr. Drummond’s report does declare that the GTA is a global player with an economy that has been “resilient,” averaging 2.5% annual growth from 2002 to 2006.

But that growth rate was 0.5% behind the rest of the country, and even farther behind other city regions such as Calgary (5%) and Vancouver (3.4%). Growth in gross domestic product per capita also lagged other Canadian cities. And personal income per capita lagged many major U.S. cities by an average of 30%.

To blame for the problems, the report says, are the strong Canadian dollar – which makes exports more expensive – increased competition from China and rising commodity prices.

The job losses, amounting to one in five manufacturing jobs, have been counterbalanced by a strong housing market and very strong overall job growth averaging 2% a year, with the creation of 65,000 jobs in financial services, retail and wholesale trade and professional services. However, the Toronto real estate market is cyclical and already slowing, Mr. Drummond warned.

Mr. Drummond’s report recognizes that Toronto’s municipal government has a “structural deficit” of up to $1.1-billion a year, and urges the provincial government to “upload” $500-million in social services off the city’s books. But it also urges the city to cut fat from its programs and agencies and pursue public-private partnerships to reduce costs before imposing new taxes.

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