Since we have been having a soaring market for about 10 years it has become increasingly challenging to buy a home without encountering multiple offers in the Toronto area. So the impression has become that all homes sell for more than the asking price. In reality only about 12% of homes whether house, condo or loft sell over asking price and that there are plenty of other well priced homes that sit for a few weeks to a month before an offer is accepted.
Ironically most of the first time buyers spend their time chasing that 12% and quite a large number of the second time buyers do the same. This is a phenomenon that i have watched for years.
I explain to clients what they are doing. I share with them it is a bit like when they were back in school and they lusted after the hottest girl or guy in the class hoping and praying to be the one to make the catch.
A few get it immediately, some figure it out after a few weeks, others take a couple of months until they are completely frustrated with their inability to buy a home unless they overpay entirely for the property. There is the small group that continue to pursue only the hotties until finally they land one paying more than anyone else would.
So what is the difference between the Hotty and the Ugly Betty. There are plenty of homes out there that don’t have great street appeal or need some elbow grease inside or maybe a new kitchen or bath. Maybe they need both. Sure, everyone wants to own the perfect home with the perfect kitchen and bath and the right color of paint on the wall so they can just put down their furniture and live. However, only about 15% of the homes actually look like that.
Sellers are getting smarter and more and more of them are employing stagers, clearing out a bin full of stuff or putting their belongings in storage while they sell. Some even move out of their home.
So, this tells you a little secret right there. Many of these homes were Ugly Betty’s when the agent first walked in the door and recommended to the seller that they would get thousands more if they turned that home into a Hotty before putting up the for sale sign.
If the seller can do that to their home then it makes sense that you can just buy the home of a seller that couldn’t be bothered going to the trouble and do the same work. You will save tens of thousands of dollars if you do.
Your home may start out as an Ugly Betty a not so great looking gal with fantastic skills and great utility, but with a little effort and perhaps some professional design help you can re-do the front and upgrade the interior and bring out that homes beauty.
I never had a name for these type of homes until recently.
I have explained this concept to clients for years. Many have seen the light and stopped chasing the Hotty just as they did years ago in school. Today they are settled in fairly priced homes and made their beauty shine.