Personal Finance

Rule of thumb for condo offer?

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  • Feb 18th, 2009 3:12 am
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[OP]
Deal Addict
User avatar
Dec 19, 2007
1604 posts
265 upvotes
Toronto

Rule of thumb for condo offer?

I realize that there can be multiple variables for what a potential buyer offers relative to the listed price of a property. Just wondering what a general rule of thumb would be in the current market in Toronto.

General attributes of the properties I'm looking at...

- In "good" area's of the city, generally convenient with regard to TTC/schools
- Generally 1 bed/1 bath
- price range of $200-250k

Is a good rule of thumb to start at 10-12% off the listing? Is that a good starting range and not too "insulting" to the seller? I have read that property (especially condo's) are looking to go down by around that much over the next few months. That is the period of time I am looking at.

Again, I know there are variable's, I'm just looking at a general consensus or what YOU would deem reasonable as a buyer/seller in today's market.
8 replies
Deal Addict
Jan 11, 2006
1103 posts
3 upvotes
Alliston
if its at market vale say $200,000 I t dont think anyone would take $180,000 or less unless they were desparate, we are selling our and its listed at $229,000 wich is market value for the building and area, been listed for 16 day and got our first offer of $213,000 wich we countered back at $228, showing we would work with them but I think they were just low balling......we want $220,000 to be happy.......so if its a decent condition and market value that low offer....but then again your a buyer.....
Deal Addict
Oct 1, 2006
2053 posts
1541 upvotes
Montreal
The best advice I can give you is not to buy a condo right now. Prices are falling every month. The longer you are going to wait the more you are going to save. Price fell 5% from Dec.08 to Jan.09 alone. Months of inventory in Toronto has exploded since September and is still raising. This means that prices are going to fall further. We had a world wide real estate bubble which is deflating right now. Do not be a fool and buy close to the top of the market.
Sr. Member
Nov 2, 2006
872 posts
24 upvotes
Ideally you would want to buy during an upswing in the market. All indications are
that the market is not at the bottom yet. I would also wait a bit.
Newbie
Feb 10, 2009
75 posts
Germack wrote: The best advice I can give you is not to buy a condo right now. Prices are falling every month. The longer you are going to wait the more you are going to save. Price fell 5% from Dec.08 to Jan.09 alone. Months of inventory in Toronto has exploded since September and is still raising. This means that prices are going to fall further. We had a world wide real estate bubble which is deflating right now. Do not be a fool and buy close to the top of the market.
I am thinking about buying but I am going to hold it off until a few months later, in april and may should be buyers paradise, then I should be able to buy in a better area.
Deal Addict
May 28, 2006
2389 posts
181 upvotes
reason I wanted to buy in winter months was because I knew there wouldn't be many buyers/competition. Prices might have declined more this year for this reason and that I think last winter was summer like weather with no snow.

My thinking is summer-time there would be more buyers/investors wanting to buy a house thus not leaving much negotiation room. But we'll just wait and see how summer goes nothing is predictable.
Deal Fanatic
User avatar
Aug 19, 2001
5089 posts
34 upvotes
Vancouver
spintheblackcircle wrote: Is a good rule of thumb to start at 10-12% off the listing?
There is absolutely no rule of thumb.

Every condo is different. And each of them are priced differently vs. their "true market value". And every condo owner has different motivation to sell.

Take the time to research what the condo is worth *TO YOU* and then try to find out how anxious the sellers are. Both will affect the ultimate selling price.
Deal Fanatic
User avatar
Aug 19, 2001
5089 posts
34 upvotes
Vancouver
Psycho44 wrote: My thinking is summer-time there would be more buyers/investors wanting to buy a house thus not leaving much negotiation room. But we'll just wait and see how summer goes nothing is predictable.
You're right it's unpredictable, especially since real estate is only partially a commodity item.

Statistically, buying in winter offers a slight price advantage. Basically it's because winter sellers are more motivated.. or else they'd wait til spring to list.

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