TORONTO — A six-bedroom Toronto home was listed for a mere $1 on November 17th, with offers for the home only being accepted on that same day. The house, which has two bathrooms and a finished basement, is said to be listed for $1 as part of a revolutionary new marketing strategy. It ended up selling for$1.2 million just over a week ago, Located in the Bendale neighborhood of Toronto, at the intersection of Lawrence Avenue East and Brimley Road, the house was recently renovated. With a new kitchen, bathrooms, and flooring, you may be wondering exactly how this house is being listed for a shocking $1 asking price.
Desmond Brown, a real estate agent in Toronto, commented on the home’s viral popularity:
“We see the trend periodically,” said Brown, “It’s to generate as much activity as possible on it. So they can get multiple bidding wars happening or multiple offers on it.”
And this is far from the first time such a strategy was implemented in Ontario, or even Toronto for that matter. This past May, a once-dilapidated, now-renovated Trinity Bellwoods house was listed for $1. Later, it would hit the market again for $1.4 million. The CEO of Rexig Realty Investment Group Ltd., the realtor who listed the home, Paul Poliszot, described the reasoning behind the tactic:
“Just to get a lot of action and a good amount of interest, we opted for this strategy and so far it’s been going well,” said Poliszot “There’s a ton of interest on the property.”
This trend even dates back to at least October of 2019, when it was reported by Narcity Canada . In that case, the house was sold for over one million dollars, a stark increase from the original $1 asking price. When combined with Ontario’s recent real estate boom, you can begin to see how the price can increase so drastically in such a short period of time.
This is even more evident when you look at the previous prices for the Bendale house. In 2016, the house sold for $990,000, while in 2010, it sold for just $320,000. Keep in mind that this is prior to the renovations, but even then, the price increase (not including the $1 asking price) is astronomical.
The $1.2 million price point once again far surpassed the paltry original asking price. Whether this sales tactic will continue is unknown, but one thing’s for sure: if a $1 price sounds too good to be true, it most likely is.
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