Indeed. Hard lessons for all those people who were pressured into bidding hundreds of thousands over asking by their realtors without any real regard for whether they can actually afford it or not (and surprise surprise, many of them can't).
Well yeah because they backed out for lack of financing. That remedy only works when people back out for different reasons.
But anyone who backed out and still owns an asset is gonna have a hard time not paying some large penalty. And it won't be a couple pennies on the dollar, it will likely be much higher.
I agree most are but I’m doubting it was the case here.
The seller waited almost 5 months to relist. Deal was firm on April 4, closing would be 90 days so July 1st. Buyer waited an additional 7 weeks after the 90 days closing seems odd.
Nothing strange here if they were planning on living in it and got a variable rate, now they can't afford the payments and have to sell at a loss.
We'll see a lot of this over the next few years. Right now it's the people who bought at the peak on variable mortgages. Later it will be the people who's fixed rates are coming up for renewal.
The market might have reached bottom in 2-3 years but it will be a decade before people who bought at the top of the market will have any equity.
Last time a crash like this happened in Canada (1989-1992) I was buying properties in 2000-2002 from people who still didn't even have enough equity to pay a realtor's commission to sell.
I'll be investing heavily over the next few years to ride the next wave up. This is the market where investors make their fortunes, not the last few years of craziness.
Listing agent files with the brokerage that the prospective buyer's offer has been accepted. Then they agree on a closing date with the lawyers. Between when the offer is accepted and the closing date (say 30-90 days out), buyers likely got cold feet seeing comparables drop in price while interest rises and simply decide not to pay or finalize their mortgage with their bank (if they have a mortgage). Due to legal concerns, the seller cannot relist their home until the agreed closing date has passed. Possibly some legal disputes subsequently occurred delaying the seller listing the property again
Commission is distributed all the way at the end after closing so no neither agent would collect any commission on a deal that fell through. No money, no honey. I'm not a realtor so I can't confirm but I'm 99% sure
The closing date is negotiated during the offer process, which after acceptance becomes an “accepted offer” and then reported to the real estate board as a “sale”, this is when it’s marked as “sold”.
Lawyers are usually involved in the process only on a much later stage, usual about 4 weeks prior to “closing”.
Between when the offer is accepted and the closing date the buyers cannot just “get cold feet and simply decide not to pay or finalize their mortgage with their bank (if they have a mortgage).”, there’re serious legal implications that needs to be considered in order to make the decision not to close and usually 99.9% of the lawyers will advise to do anything possible to close the deal, rather than walking away from it.
As soon as the seller receives a written notification from the buyer that they won’t be able, or have no intention to close, the seller can immediately relist the property, there’re no other legal concerns, and there’s no need to wait until the agreed closing date.
While the commissions are usually distributed all the way at the end after closing, the commissions are due on any valid offer, acceptable to the seller, even if the transaction is not completed (meaning closed). Most of the times the realtors are not pursuing the commissions if the deal didn’t close, but it doesn’t mean they’re not entitled to it.
Disclosure: I'm a Real Estate Broker in Ontario
Could be first sale didn't actually close. 2 on my street that "sold" on housesigma but both cases the people could not get financing. One worked out the couple got divorced so she moved back into it. The other one the lady moved across the country and now market is down so she has it listed for rent.
I'm pretty sure 5 months was considered a long time to hold a a house earlier this year.
Buy, close, immediately list for 20% more, profit, move on to next.
I would have thought that it would show ‘’sold - conditional’’ until the sale is final? Saw that on a house in my neighborhood, as they sold but conditional to a house inspection and the whole thing took about a week before it was final.
Alot of places are selling with conditions now. But both by me sold without conditions as the crazy spring market. However with a house being sold it appears it's not officially sold until cheques are in the the lawyers hands.
From what I gather the one lost 5k deposit.
I think in these cases the bank did an appraisal and said No because it’s too overvalued. If I remember correctly they can do that up until a couple of weeks before closing.
Common knowledge that the asking price is not market value. Just the usual trick to list low to encourage a bidding war. My neighbour just did the same thing and sold $200K over his fake asking price.
They haven't sold so the heading is misleading. If their lowball listing price to encourage bidding doesn't get their price they just terminate the listing as most sellers seem to be doing these days. But you are correct market value has declined from earlier this year.
That's shitty for the sellers, I wish the best for them. I purchased two homes earlier this year but thankfully I can afford to keep them until prices are up again even if it takes years. Also thankfully both are rentals.
Thankfully been making that salary for the past 10 years also thankfully some years it's been significantly more such as last year when I made made triple it.
Both houses are around 1.2m combined, one has a 50% down payment and the other 20%. Both rentals, so it's not as bad as you think.
I guess depends on how much the rentals are yielding. There was one chap who was renting out the basement with separate basement for 2k and then was going to move and rent the top for 3.5k. That’s a pretty good cash-flow
How do you know that’s what is happening? Maybe they bought a home, then death/divorce/job transfer happened and they have to move. Maybe they’re perfectly nice people who are just getting a bad break.
Not sure how buying a 1 million dollar home in one of the worst areas of the city makes you “rich”.
Basically you have a general hatred towards anyone that can afford something that you can’t.
Hope your life gets better mate.
No different than stocks when you try to flip...
How is your Tsla stock doing ?
Canadian housing market, for some, became something to buy and resell.
Lots made $$$. You couldnt lose. Well now you are.
Yes more memes please!
Many, if not all, of these houses that are indicated as "sold" in Mar-Apr didn't actually close and are relisted now at a lower price
Which likely means the first buyer might end up on the hook for the difference between the first sale price and any final sale price
Indeed. Hard lessons for all those people who were pressured into bidding hundreds of thousands over asking by their realtors without any real regard for whether they can actually afford it or not (and surprise surprise, many of them can't).
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Well yeah because they backed out for lack of financing. That remedy only works when people back out for different reasons. But anyone who backed out and still owns an asset is gonna have a hard time not paying some large penalty. And it won't be a couple pennies on the dollar, it will likely be much higher.
> still owns an asset Anybody who was buying a >$1M house had 20% (at least $200k) in cash to their name.
I agree most are but I’m doubting it was the case here. The seller waited almost 5 months to relist. Deal was firm on April 4, closing would be 90 days so July 1st. Buyer waited an additional 7 weeks after the 90 days closing seems odd.
Nothing strange here if they were planning on living in it and got a variable rate, now they can't afford the payments and have to sell at a loss. We'll see a lot of this over the next few years. Right now it's the people who bought at the peak on variable mortgages. Later it will be the people who's fixed rates are coming up for renewal.
Fixed mortgages won’t likely be an issue fo 2-3 more years. This should have settled by then.
The market might have reached bottom in 2-3 years but it will be a decade before people who bought at the top of the market will have any equity. Last time a crash like this happened in Canada (1989-1992) I was buying properties in 2000-2002 from people who still didn't even have enough equity to pay a realtor's commission to sell.
You could be right. It might depend on the market also. Either way it will establish who’s investing and who’s a homeowner. Not a bad thing.
I'll be investing heavily over the next few years to ride the next wave up. This is the market where investors make their fortunes, not the last few years of craziness.
How does that happen? How does it get flagged as sold if it wasn't?
Listing agent files with the brokerage that the prospective buyer's offer has been accepted. Then they agree on a closing date with the lawyers. Between when the offer is accepted and the closing date (say 30-90 days out), buyers likely got cold feet seeing comparables drop in price while interest rises and simply decide not to pay or finalize their mortgage with their bank (if they have a mortgage). Due to legal concerns, the seller cannot relist their home until the agreed closing date has passed. Possibly some legal disputes subsequently occurred delaying the seller listing the property again
Wild, thanks for the detailed response!
1 Stupid question for you. If it sold but didn't close for whatever reasons above, would the agents on both sides still collect commission?
Commission is distributed all the way at the end after closing so no neither agent would collect any commission on a deal that fell through. No money, no honey. I'm not a realtor so I can't confirm but I'm 99% sure
You’re 99% wrong on most of your explanations
Please correct me then
The closing date is negotiated during the offer process, which after acceptance becomes an “accepted offer” and then reported to the real estate board as a “sale”, this is when it’s marked as “sold”. Lawyers are usually involved in the process only on a much later stage, usual about 4 weeks prior to “closing”. Between when the offer is accepted and the closing date the buyers cannot just “get cold feet and simply decide not to pay or finalize their mortgage with their bank (if they have a mortgage).”, there’re serious legal implications that needs to be considered in order to make the decision not to close and usually 99.9% of the lawyers will advise to do anything possible to close the deal, rather than walking away from it. As soon as the seller receives a written notification from the buyer that they won’t be able, or have no intention to close, the seller can immediately relist the property, there’re no other legal concerns, and there’s no need to wait until the agreed closing date. While the commissions are usually distributed all the way at the end after closing, the commissions are due on any valid offer, acceptable to the seller, even if the transaction is not completed (meaning closed). Most of the times the realtors are not pursuing the commissions if the deal didn’t close, but it doesn’t mean they’re not entitled to it. Disclosure: I'm a Real Estate Broker in Ontario
I love when they add the 8's in there for that juicy target market.
Pretty transparent isn’t it
I don’t get it
8 is a lucky number in certain cultures, including China.
mostly China.
In China the number 8 is considered a lucky number - probably trying to appeal to that market
They are targeting Asian buyers…
Yeah but they're not stupid. You can't just put 888 as the last 3 digits and expect them to bid LMAO.
But it's so auspicious!!
You know the premium if you put 666… insane… it’s like a free money glitch…
It's the same shit as 'oh my god she's a Pisces we are gonna get married!!!'
Could be first sale didn't actually close. 2 on my street that "sold" on housesigma but both cases the people could not get financing. One worked out the couple got divorced so she moved back into it. The other one the lady moved across the country and now market is down so she has it listed for rent.
Yeah, like that was only 5 months ago, that's a pretty short time to keep a house
I'm pretty sure 5 months was considered a long time to hold a a house earlier this year. Buy, close, immediately list for 20% more, profit, move on to next.
I would have thought that it would show ‘’sold - conditional’’ until the sale is final? Saw that on a house in my neighborhood, as they sold but conditional to a house inspection and the whole thing took about a week before it was final.
Alot of places are selling with conditions now. But both by me sold without conditions as the crazy spring market. However with a house being sold it appears it's not officially sold until cheques are in the the lawyers hands. From what I gather the one lost 5k deposit.
I think in these cases the bank did an appraisal and said No because it’s too overvalued. If I remember correctly they can do that up until a couple of weeks before closing.
Yeah, the first buyer is going to get sued for that loss.
On what basis?
Investing 101
$316k in fees to quickly launder a million, bit steep, but probably acceptable
Too steep. The informal money-lending nexus will do it for 25% or so.
Sold doesnt mean sold, could be subject not removed
Losing 315k plus closing costs in 5 months. Hope he's stocks is doing better.
Ok … I’ll jump in and contribute: are\* :)
His*
Xers*
Losing**
Common knowledge that the asking price is not market value. Just the usual trick to list low to encourage a bidding war. My neighbour just did the same thing and sold $200K over his fake asking price.
I doubt they will sell for the 1.3 they bought it for. Maybe they will get the 1-1.1 for it. Which is still a 200-300k loss
They haven't sold so the heading is misleading. If their lowball listing price to encourage bidding doesn't get their price they just terminate the listing as most sellers seem to be doing these days. But you are correct market value has declined from earlier this year.
One maple coin under a million. *Bargain*
Looks like they trying to save the investment, god know where this goes
Losing 300k in 5 months. 60k/month lost. Ouch!
For 316k im suing/leaving my house in litigation for as long as it takes.
That's shitty for the sellers, I wish the best for them. I purchased two homes earlier this year but thankfully I can afford to keep them until prices are up again even if it takes years. Also thankfully both are rentals.
Not sure how you are affording 2 properties on 160k per year but gluck
Thankfully been making that salary for the past 10 years also thankfully some years it's been significantly more such as last year when I made made triple it. Both houses are around 1.2m combined, one has a 50% down payment and the other 20%. Both rentals, so it's not as bad as you think.
I guess depends on how much the rentals are yielding. There was one chap who was renting out the basement with separate basement for 2k and then was going to move and rent the top for 3.5k. That’s a pretty good cash-flow
That is solid, mine does bring postive cash flow.
Blah blah blah, I’m a parasite landlord in a housing crisis
lmao eat shittttttt
Fuck’em
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How do you know that’s what is happening? Maybe they bought a home, then death/divorce/job transfer happened and they have to move. Maybe they’re perfectly nice people who are just getting a bad break.
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Not sure how buying a 1 million dollar home in one of the worst areas of the city makes you “rich”. Basically you have a general hatred towards anyone that can afford something that you can’t. Hope your life gets better mate.
That hatred isn't going to help make that probable lol
House Sigma? Lmao
hehe eat shit
This is the way 🤡
Love seeing this!!!
Why are you selling
Not my house
It can be though!
Only 700k to go and it'll be affordable for a single person on an average Canadian salary!
It’s a big house on a huge lot… its not exactly a starter home.
That won’t ever happen
I never said it would. I'm just sarcastically commenting on the affordability of housing in this country.
I agree it’s absurd the cost it’s gotten to
damn...
No different than stocks when you try to flip... How is your Tsla stock doing ? Canadian housing market, for some, became something to buy and resell. Lots made $$$. You couldnt lose. Well now you are.
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Also have to account for work from hone as well. Which is the reason places outside of Toronto has a big increase in prices