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HELP! I think I paid too much!

T

torontobuyer

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I've just paid $320K for a bungalow in St. Clair West. This seemed a reasonable price a month ago when similar properties were listing for $350+. Now I see 2-storey properties in the area listing for what I'm paying, and bungalows for considerably less.

My questions: Is this the promised cooldown, or could it still be a reflection of the qualities of the individual property (mine has parking, a basement apartment and lots of light)?

And if I do think I've overpaid, do I have any recourse? I've already signed the agreement and waivers, though it won't close for another couple of months.

I'd appreciate your thoughts.

Sam
 
Hahah. Sorry, I had to laugh at this. Well I think your fine. You've paid the equivalent of what a 1 bdrm condo is going at currently, plus you have a driveway, a lot, and a house so I wouldn't be to worried in the long term. This is your residence right?
 
That's the reality of real estate and the risk you take. The past couple months has seen a slight softening of the market and if you read the economic indicators and trends correctly, you can make a good prediction of when would have been the right time to buy. Buyer beware...

I'm pretty sure you're SOL unless you find a way to flip it at the same price.
 
You'll be fine. That's a very reasonable price, considering that you have parking and a basement apartment. Assuming it's licensed, you always pay more for an income property. If you bought this place for a home, and you can afford the mortgage, it hardly matters what's going on in the rest of the neighbourhood. Even if prices drop slightly, you'll presumably be there for years to come, meaning several more real estate cycles. St. Clair West is an up-and-coming area. I'm sure houses will go well above $350,000.
 
Dude, don't worry about it like the other posters suggest. The only problem is if you don't want to live where you chose to live. Your basement apartment, if rented, can easily justify 100,000 in mortgage or if you want to think about it another way takes a big chunk out of your fixed operating costs.

My question is did you put 25% down? Infact this is a general question does anyone ever put 25% down anymore? In my opinion people who buy without the ability to accumulate 25% down, regardless of how much they actually do put down or how much mortgage their income can justify, are living beyond their means.
 
Well I'll have to agree with caveatemptor. :eek: (Astonishment from some of the readers here!)

"Timing" the real estate market, the stock market, your purchases of gasoline, cabbages, etc. ... a waste of time and too much mental wear and tear. If you liked the house and the neighbourhood a month or two ago, why would you not still like it?

To answer your other question, if you have signed an Agreement of Purchase and Sale, and all conditions have been waived, you have a binding contract. You are obligated to complete it, or you may find yourself being sued.

Don't worry! Good luck with your move!
 
Paid too much

Real Estate is not a business you can micro manage with daily or weekly adjustments.

Those people who thought they paid too much between '92 and '95 saw the greatest return on their investment during '97 to 2007.

Toronto continues to be a destination.
 
I appreciate all your input.

I put 20% down to avoid the CMHC insurance, but am using the rest for closing costs.

The apartment is for a family member who's sharing the home with me, though I may rent it out one day down the road. And I'm thrilled to be moving to that area after a decade of living in North York (Bastard & Steals).

I guess it's just my new-buyer jitters. I'm hoping for a modest return in five years or so -- 3% a year would be just fine thank you. You're right, though; overparsing the market is a straight path to madness.
 
That's not a bad price for a detached with driveway, there may be some dips in the short-term but like others said, real estate is cyclical and if you're planning on living there a few years then it's all moot anyway
 
What neighbourhood/part of St. Clair is this house at? Regardless, I think it's a value, unless you have rewire the house, or do some other major renovation/modernization.
 
I think it's called Oakwood Village, just beside Oakwood, north of St. Clair.

And, strictly speaking, the driveway isn't mine. It's on my "property" but not on my lot, so I have to pay for a permit. I don't own a car, so it's not a major inconvenience, but I assume it hampers the resale potential if someone wanted to build a McMansion in its place.

The roof will need to be fixed in five years, the side walkway before next winter, and I'll need an electrician to clean up the last owner's DIY mess. That's it for major renos.
 
blackpool said:
Just our of curiosity, if he wanted to get out of the deal, could he?
Click to expand...

Blackpool, I would not think so, based on what he said in his first post. It's a legal and enforceable contract.

Torontobuyer, it sounds like you have a good grasp of what needs to be done. Don't delay on the electrical work, "DIY mess" sounds a bit worrying.

Again, best wishes. Feel free to post thoughts on anything else which may be of interest. :)
 
The key here is that the others are listed at a lower price... with bidding wars becoming more and more common in the city, list means nothing.

Last summer I was outbid twice on a $260k listed condo [went for $290k] and a $235k townhouse [went for $287k]. List means nothing in an in-demand area and if the property shows well.

Edit - I should say that list prices are sometimes set below market value to stimulate interest and get a bidding war going. I look at what places close for than what they are listed at.
 
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