Written by Hagen D. Redeker, CNN
When selling a home, sellers should strive to make their properties stand out, in order to attract buyers who will appreciate what makes them unique and in-demand.
However, for homeowners in North America and Europe, chances are there won’t be a shortage of properties on the market vying for their attentions. That is not necessarily the case, however, in Canada, where actual estate sales in the markets of Toronto and Vancouver, Canada’s two largest, as well as in Montreal, Vancouver’s domestic rival, are still rare.
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A variety of factors, from market conditions to political stances, could affect the number of such properties sold in the city. On the other hand, auction sales are also a possibility, and auction specialists are able to attract more attention to a listed property than conventional ones.
Canada-based live auction specialist Fred Punkel is interested in the relatively uncommon trend of multiple auction sales in Canada, particularly in Toronto.
“I find that they tend to attract a different group of investors and they have quite a good following. I would expect that more than half (of the buyers) will be new investors,” he said.
Some buyers make up their minds well before an auction sale is launched, he added. “People often let their agents know that they are interested when they are really close to their target price. They don’t come in for the auction.”
A multi-listed property in Toronto. Credit: Rob Stothard/Getty Images North America/Getty Images
Why would one choose to participate in an auction of a property? Hagen D. Redeker, senior housing analyst at CMHC, said that it may be that an investor’s primary concerns include market performance, financing sources, and level of investment freedom.
“Although we think there is potential for asset allocation to housing markets to increase as a result of rising interest rates, investors may also be interested in appraising their home’s value and potential, however this is dependent on the prevailing market conditions,” he explained.
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Giovanni Anzaldoli, of the Annandale-St. James-area of Toronto, wanted to sell his home on Saturday, but hadn’t decided on an auction. “My goal is to raise $1 million; the inventory is very light,” he said. “People think, why pay $7 million when you can get $1 million for it?”
Anzaldoli thinks that an auction is preferable to an online listing because he doesn’t have to attend the open house as many times as he does for an online listing.
“When I meet with a buyer, everything has to be on the table: keys, contract, photos, your address, everything, which makes you comfortable. It’s less stressful. I prefer auctions,” he said.
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Anzaldoli estimates that the sales prices of auctions last year reached a peak of $30 million in Toronto, and that there are eight such properties currently listed on the market.
“The market will do well because it’s always a buyers’ market,” he said.