Doesn’t that just get everyone’s blood boiling? You all know what I’m talking about. It’s the little bungalow in Mimico that made headlines in January.

If you haven’t heard, the story is about a run down 1200 sq ft property that sparked a 31 person bidding war. Nothing special, nothing that really deserved 31 people fighting over it.

If I could sum up the whole debacle in one word, I would call it disgraceful.

Madame Toastmaster, Fellow Toastmasters, Welcomed Guests,

Before you start pulling out your hair, know this: Real estate prices have not shot up 150% over night.

So how could something like this happen?

It’s the result of an unethical, uneducated, and disrespectful tactic put forward by the Seller and the Real Estate Agent who listed the property for sale.

Here is the secret that no one else will tell you.

The little bungalow in Mimico was $200,000 underpriced to begin with. A mere tactic to lure in some unsuspecting Buyers.

The tactic goes like this:

1. Listing agent meets with Seller of a $600,000 property.
2. Listing agent may or may not know the market value of the house, convinces the Seller to list for $200,000 less than what the true value is.
3. Listing agent counts on naí¯ve Buyers to ­­­throw in offers, and eventually arrive at a sales price that is 150% over asking.

I’ve been in the real estate business long enough to know this is wrong.

1. It’s unethical. The Real Estate Council of Ontario has distinct rules about this type of practice. What has been demonstrated here is false advertising. The Seller never had any intention of selling a $600,000 property for $400,000.  It’s illegal for Starbucks to advertise a $4 latte, and charge you $6 at the counter. Why isn’t it illegal in real estate?

2. It’s uneducated. I’ve had conversations with my colleagues and we wonder if perhaps the agent didn’t even know how to determine the market value. The most difficult job for a listing agent is to price a house. It’s a moving target, and it takes experience to get it right. If you list too high, you’ll scare off a large pool of Buyers. If you price too low, you may be leaving money on the table.  A knowledgeable listing agent would apply the market conditions, competitive listings, and strategy to determine the listing price.

3. It’s disrespectful. To pull in 30 Buyers into a what is basically a game, shows exactly how little regard the listing agent had for people’s time and emotions.

To add fuel to the fire, the listing agent double ended the deal, which basically means he cheated.  First he reviewed all 30 offers with the Seller. Then he called the 31^st Buyer – his own client – and let him know the highest offer on the table is $600,000. If his Buyer client wants the property, all he needs to do is add a $1 to the highest bid and he’ll come out the winner. Whether or not his Buyer client’s offer was $1 higher or $1,000 higher, we’ll never know. The point is his own client had an unfair advantage and the listing agent was motivated to play unethically because if he can double end the deal, he can double his commission.

So what happened to the 30 other bidders? They walked away stressed out, defeated, and broken hearted.

There will be mixed feelings in the room after this speech. Some of you will be completely appalled and sympathetic towards the 30 poor bidders left with nothing. Some of you might think a listing agent should do everything in his power to get the maximum price for his Seller.  Fair enough.

There’s only one thing I want you to remember, and it’s that there’s a right way and a wrong way of doing business.

When you conduct yourself in a manner that’s unethical, uneducated, and disrespectful — it’s the wrong way.

In my opinion, I think the Seller and Listing Agent could have obtained the same financial outcome without the dramatic misleading scheme.

The lesson I want you to take away is for the potential Buyer.

If you ever find yourself in this position — where you’re up against 30 or so bidders — do your research. Find out what similar houses on the street have sold for. If you know ahead of time the house is worth around $600,000, you won’t waste your time or emotional well being offering anything less.

Disclaimer: The preceding commentary is the opinion of Hanna Stecewicz and does not represent the interests or opinions of Right at Home Realty Inc., Brokerage or the Toronto Real Estate Board. Therefore, Right at Home Realty will not be held responsible and/or liable for any of the opinions herein.

This photo was taken in 1930.

Then:

The detached building with a storefront is an example of Edwardian Classicism. Edwardian Classicism provided simple, balanced designs, straight rooflines, un-complicated ornament, and relatively maintenance-free detailing. These buildings generally have a smooth brick surface and many windows.

The building still exists today, relatively unchanged. Although it’s morbid past creates a stigma.

306 Davenport Rd is the address that’s famous for the “Just Desserts Shooting”. On April 5th 1994, three armed robbers invaded the storefront, which at the time was the Just Desserts Cafe. When a dispute broke out amongst the patrons who refused to hand over their wallets, one of the robbers fired his shotgun killing an innocent bystander inside the cafe.

Today:

The building has been listed for sale in 2000, 2001, 2003 and 2010. Today, the building is leased out to the Subway Sandwiches franchise.

I wonder how Subway’s sales are impacted by the cold blooded murder of 1994. Perhaps the crime has been forgotten?

This photo was taken in 1924.

Then:

The Bloor St  United Church was built in 1889. It’s a prime example of Gothic Revival, an architectural style which brings medieval details and building practices to the Ontario climate. The list of Gothic features on this building is long, but the famous characteristic is the lancet arche. The acutely pointed arche is used in every door and every window. The larger windows are decorated with a trefoil, a pattern overtop of the window composed of three foils or leaves.

The church also features green spires, or steeples, which are the tapering conical structures on the top of the tower.

Amongst the trees, the church is simply majestic.

Now:

Portions of the church have been demolished, and additions have been built. While the new architecture is in sync with the old architecture, there’s an obvious age difference between the dark brooding century old brick and the neoteric add on. Take away the romantic trees, throw a hotel in the background, new pavement, streetlights, bikes, cars and anything else modern in the foreground and you end up with a very perplexing image.

It just doesn’t feel right.

This photo was taken in 1952.

Then:

The photo focuses on two houses, 65 Dagmar Ave is the 2 storey house on the right directly behind the tree and 67 Dagmar Ave is bungalow on the left.

Both homes are Victorians, although without the bells and whistles, such a ornate gables, quoining or decorative trim. Regardless, the architecture still reflects the Victorian era, the sharply angled and steeply pitched roofs, and lack or symmetry are a giveaway. The homes on this street, especially 67 Dagmar Ave, were once inexpensive “worker’s cottages” in the Leslieville.

The neighbourhood began as a small village back in the 1850s and was home to gardeners and workers employed at one of the brick-making factories in the area.

Now:

67 Dagmar Ave has since then been demolished and sold as vacant land to a developper in ’91 for less than $100,000. It was developped into a Victorian style triplex in ’92. It was on and off the market for a few years until 2001, when it was sold to a buyer for $320,000. In 2010 it was sold again for $600,000. Not a bad return.

65 Dagmar Ave still exists today, although spruced up. The enclosed porch is gone, new windows, new doors and a fresh coat of paint was added. Since the life span of a sloped roof like the one seen here is 20-30 years, it would have been replaced as well. The end result, a sleeker look to keep up with the modern times, yet still keeping the integrity of the historic architecture.

My how that tree has grown!

CityPlace is Toronto’s largest multi-tower condo community in the Harbourfront District. The 6 building, 1500 unit complex spans across 52 acres of land, including an 8 acre community park.

I’m a real estate agent, and I’ve had a few clients ask me about CityPlace, but I don’t give them sugar coated answers. A real estate purchase is a big deal, for many it will be their largest investment. My clients need to be confident that whether it’s 1 month from now, or 5 years down the road, they will have the same confidence in the purchase that they did on day 1.

So I give my clients all the information they need to make an educated decision when it comes to buying a condo at CityPlace.

Madame Toastmaster, Fellow Toastmasters and Welcomed Guests,

Do you want the good news or the bad news first?

Good: Price, Architecture and Amenities

Price: A quick MLS search for 1 bedroom condos under $300,000 in the downtown core (south of Bloor between Dufferin and the DVP) will produce hundreds of listings. 42% of those listings are from City Place.

Architecture: The architecture impacts the Toronto skyline in a positive way. The materials, glass and brick, seem appropriate for a complex that is contemporary but which also inhabits land that comes out of Toronto’s industrial past.

Amenities: The complex does have a community feel to it, and is designed to bring neighbours together. The amenities, which are shared between the buildings, include a 30,000 sqft recreation center with swimming pools, squash courts, a bowling alley, basketball courts, a rock climbing wall, tennis courts, running tracks and full fitness facility.

Bad: Supply and Location

Supply: There are eight condominiums in CityPlace, and around 4,000 units.  If panic selling was to take place, and “only” 10% of the owners at CityPlace were to list their units, there would be 400 units on the market to choose from. This is an extreme example, but you get the idea. It’s not going to be easy to sell if you have so much competition.

Location: It’s right on the Gardiner – and it’s loud. There’s nothing around either, no restaurants, no coffee shops and it’s still a long walk to the subway. Spadina Ave bisects the complex, creating an enormous traffic nightmare for residents especially during rush hours as commuters use the road to get on and off the Gardiner and Lakeshore.

Ugly: Quality

Quality: These buildings went up so fast, I question their quality. Plus with an inordinately high percentage of renters in the complex, the buildings aren’t cared for – I’ve heard of people throwing cat litter down the garbage chute, and letting their dogs litter the hallways. This all directly impacts your maintenance fees. I would say with confidence, that the buildings at CityPlace are mistreated. When the condo corp is forced to spend money on constant repairs and clean-up — it becomes expensive for the condo owners. As the reserve fund, money set aside for maintenance, becomes depleted – maintenance fees go up.

Conclusion:

In the end, it all comes down to preference. As long as my client’s have all the information, it’s up to them to decide whether they should buy at CityPlace or not. I have helped a Seller client sell a unit at CityPlace, but I have never helped a Buyer client buy at CityPlace, at least not yet. Perhaps my clients acknowledge the fact that there are many condos out there with higher value than CityPlace Either way, I stand by the mantra: You get what you pay for.

Disclaimer: The preceding commentary is the opinion of Hanna Stecewicz and does not represent the interests or opinions of Right at Home Realty Inc., Brokerage or the Toronto Real Estate Board. Therefore, Right at Home Realty will not be held responsible and/or liable for any of the opinions herein.

Due to the amount of content I have to share, I will be dividing my speech into a two part series. Part one is called “Pre-Construction Condos: La Bella Vita”.

“What does Italian Inspired mean? It means knowing that ciao means hello and good bye. It’s knowing that vino time is never being on time. It’s no matter what you do; you have to look good doing it. It’s la bella vita. Treviso condos starting at 170. Now open, visit the sales centre and find la dolce vita.”

It sounds good! Why wouldn’t people line up outside the sales centre for their chance to own a Treviso condo, and live la bella vita???

Madame Toastmaster, Fellow Toastmasters and Welcomed Guests.

It’s all marketing. Some of Toronto’s best marketers were hired to make a horrible product sound so bella.

This speech isn’t about Treviso condos though; it’s about pre-construction condos in general. The point is pre-construction condos are not all what they seem to be, and I want to help you see past the marketing. At the very least, I want to inspire you to think about perception vs. reality.

Let’s examine the three factors you would consider in the purchase process.

The first factor is price. People buy pre-construction because of the perceived price discount. “Treviso condos start at 170”. Is that a great deal? Maybe it is, if it were true. Well it isn’t true. The highest value units were sold off to the developer’s investor friends long before the sales centre was opened to the public. A developer will never sell you a great deal. Not in 2011. In 2005, when the concept was still new and there wasn’t much demand yet and marketing wasn’t enough, developers had to discount the price to lure people in. Anyone who bought back then saw a nice return on their investment, but now it’s too late. Developers have  created long term hype around pre-construction condos, there’s no more need to discount the price since people keep jumping on the bandwagon. The price of a pre-construction condo now is on par with the price of a resale condo, so why do people still think they’re getting a deal?

The second factor is the condo unit itself. What exactly are people buying? You walk into a sales centre, a sales rep hands you a glass of champagne and you follow her into the model suite. It’s bright, airy spacious, the ceiling must be 14 feet tall, the layout is incredible because it feels like 1,500 square feet! It has granite in the kitchen, marble in the bathroom, a walk in closet large enough to be a den. There’s even a fireplace in the bedroom. The sales rep pulls out the floor plan. This is the Sona suite — 626 square feet. Take a moment. Think about it. Look at the piece of paper in front of you. The drawing is the same layout as the model suite, but notice there are no measurements on the paper?  Should you believe the Sona model suite you’re standing in now is actually 626 square feet? Should you take out a measuring tape? Seems like an embarrassing thing to do. No one does that. You are intelligente. No one will take advantage of you. You take a sip of your champagne and follow the sale rep into the office.

The third factor is the contract. Every developer has their own contract. It’s 50 pages long and ironclad. The sales rep is employed by the developer; her job is to tell you that it’s a standard contract, with standard clauses and not to worry. You’re buying the Sona suite, that’s all you need to know. What she doesn’t point out is that on page 27, there’s a sentence that says the developer has the right to make any material change, at any time, without notifying you and there is nothing you can do about it — that includes removing the walk in closet, and the fireplace, and the granite, the marble, the ceiling height which was never 14 feet to begin with. The developer can do whatever the developer wants. After all, the pre-construction industry is unregulated in Ontario.

All you have to do now is sign on the dotted line and you might live la dolce vita. But for now all you have is a piece of paper. You’ve tied up your deposit for the next three years.  Your new condo doesn’t exist today, it won’t exist until 2014, and it might not ever exist.

If you take anything away from this speech, it’s that you should do your due diligence. You still have a rescission period. Take your 50 page contract to your lawyer immediately. Find out exactly what it says. You still have 10 days to back out.

In my next speech, Pre-Construction Condos: La Horrible Vita, I will show you what can go wrong when you don’t do your due diligence.

Grazie, ciao!

Disclaimer: The preceding commentary is the opinion of Hanna Stecewicz and does not represent the interests or opinions of Right at Home Realty Inc., Brokerage or the Toronto Real Estate Board. Therefore, Right at Home Realty will not be held responsible and/or liable for any of the opinions herein.

This photo was taken in 1921

Then:

The Bank of Montreal building is a reflection of the beautiful Beaux Arts style, which was developed in the last decades of the 19th century. Many of the Beaux Arts buildings were banks, post offices, and railway stations.

The most beautiful feature on this building is the pediment (the triangular space that forms the gable surmounting the faí§ade of the building). The pediment is often supported by columns, an element inspired by Greek architecture. Upon a closer look, you’ll notice that the inside of the triangle is decorated with sculptures. This is called a tympanum.

This photo was taken in 1978.

It’s a wider shot of the west side of Yonge St, just north of Eglinton Ave. Just north of the BMO building, you’ll notice the store front for George Richards Kingsize Clothes, and their slogan “Big or tall we fit them all”. The company still exists, but it was sold to Grafton and Co in the late 70s and Yonge and Eglinton location no longer exists. Today, the company is known as George Richards Big and Tall Mensware, with 35 locations across Canada – and only 1 store in Toronto.

Now:

To this day, the BMO building has not changed. The structure has been immaculately maintained, with the addition of signage that reflects the company’s brand. North of the BMO building, you can see that George Richards moved out and Sporting Life moved in. Typical Toronto, it’s normal to see a historic edifice next to an attention grabbing graffiti covered building. Okay fine, it’s a mural.

This photo was taken February 1942.

Then:

An unkempt fixer-upper in Leslieville.

In the photo above, you notice the exteriour finish is stucco and the windows are plain and unadorned.The modern materials and complete lack of historicizing detail is deliberate. The style of architecture displayed here is moving away from ornate detailing and moving towards mass production. The building underwent renovations over the spring of 1942, but much of the style was kept. The suspended canopy above the door modernized the building.

This photo was taken May 1942.

This photo was taken in 1945.

Then:

This building was the “Hotel Quigley”.

The structure draws it’s inspiration from mixed architectural styles. Seemingly, a mix mash of Art Deco and Art Moderne, which were popular from 1920 to 1945 with traces of Georgian and Tudor.

The building features quoining (the stone forming the external corner of the exteriour wall), the entranceway is in the middle and the windows are all common architectural styles of the Georgian Era. The windows are known as 8 x 8 sash windows (consisting of two frames that contain 8 panes of glass). The sashes are placed one above the other so that one can slide over the other.

Now:

The building still exists, but it’s far from what it used to be.

The brick and timber decor has been stucco’d and painted over. Why the owner decided on mustard yellow and blue is anyone’s guess. The decorative windows have also all been replaced. The old hotel signage above the entrance which was a popular feature of the Art Moderne Era is also gone and replaced with a dull banner ad.

Today, the main floor is occupied by Wise Guys Bar and Grill while the upper floors are rental apartments. While the rest of the commercial buildings along Danforth between Woodbine and Main aren’t particularly interesting, 2301 Danforth is just obnoxious (in my opinion of course).

This photo was taken in 1925.

Then:

The photo focuses on a house that is labelled “smallest house on Davenport”, and although it’s very small, it’s also fairly modern relative to the house next door. If you compare the architecture side by side, you’ll notice obvious differences. Examining the feature house, you notice that the brickwork is clean and even, practically perfect. Meanwhile, the house next door illustrates Edwardian characteristics. The brickwork is messier and uneven in areas. Simple, long rectangular doors and windows are also particular to Edwardian architecture. The feature house showcases triangular bay windows, which aren’t typical of any era – perhaps customized to the owner’s taste.

Although the photo shows rowhouses, the feature house was not part of the original build and would have been added on to the set of rowhouses some time after.

Now:

The rowhouses have been demolished. In 1994, a condo townhouse complex was built. Though hard to tell by the recent photo, the architecture can be described as Art Moderne. The look can be summed up in one word – streamlined (note the stucco exteriour). A basic rectangular building can be made “Classical” by the addition of columns, or architraves (the moulding around a window or door).

Circa 2000:

Notice how much the trees have matured over the last 18 years?