MarketWatch MAY 2015 04/05/15 12:09 PM Page 1
WHAT’S INSIDE: Helping your kids buy a home? Keep emotions out of the mix. PAGE 9
HOMES FOR SALE | PAGE 4 Hamilton, Stoney Creek, Ancaster, Dundas & Glanbrook LUXURY & WAtERFRONt | PAGE 8
HOMES FOR SALE | PAGE 6 Grimsby, Lincoln, West Lincoln & Niagara
May 2015 - Vol 76
$100,000 over asking The Hamilton real estate market is definitely one of the hottest in the country! Hamilton’s smoking hot real estate market generated what is believed to be a record-setting sale in April when an agent with the Rob Golfi sales team sold the Stinson neighbourhood house for $100,000 over its $199,000 asking price. That’s a 150 per cent jump over the home’s list price. What makes the sale even more remarkable is the fact that the home – a typical two-and-ahalf storey red brick located east of downtown – is not in a particularly fashionable neighbourhood of Hamilton and it needs some work. While selling features included original hardwood, doors and trim, the Grant Avenue three-bedroom house saw few improvements over its 100plus years. Still, that didn’t deter the nine interested buyers who placed an offer on the house, which was on the market for six days. “The Hamilton real estate market is definitely one of the hottest in the country,” says Golfi, who leads a 15member team of agents for Remax Escarpment. “This sale was quite a coup. I’ve been in real estate for 16 years and even I was shocked by it.” Aiming for a price of $230,000, Golfi and listing agent Laura Bielak aggressively priced the house and held back offers for a week. They
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couldn’t believe their eyes when the $300,000 offer came in with no conditions. Golfi says the buyer was likely tired of losing out on other properties and was determined not to let it happen again. The practice of holding back offers is commonly used in brisk real estate markets. The seller sets the price at or below market value in an effort to generate significant interest. A time is typically set when the seller will accept bids on the property. The technique often results in bidding wars in which buyers pay more – sometimes incredibly so – than the asking price. "We're seeing big leaps in bidding wars in central Hamilton now," he says. "The market is heating up very nicely there.” These inner-city neighbourhoods are appealing to buyers thanks to lower prices, proximity to the GTA and public transit. Not only do home owners want relief from Toronto real estate prices, but so do investors looking to realize a higher return on their money. “In certain markets it’s hard to find a house you want because inventory is quite low,” Golfi says. “Often, when that happens, you’ll find you’re competing with ten other buyers who also love the same house.”