Why has this $800,000 listed home near downtown Toronto been on the market for over 60 days?

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Registration price: $799,900

Piece: Wallace Emerson

The three-bedroom, two-bathroom semi-detached home has been on the market for over 60 days.

X factor: Location. The home at 580 Lansdowne Avenue is a short walk from the Lansdowne subway station, making it very appealing for a plethora of lifestyles. Along these same lines, many bus routes are within walking distance of the house.

At the intersection of Bloor Street, 580 Lansdowne is also close to bike paths connecting the neighborhood to the hustle and bustle of downtown Toronto.

Sporting a large backyard and elementary and secondary schools just a few blocks away, this three-bedroom, two-bathroom semi-detached home has the potential of a forever home.

If you’re a buyer in Toronto, you might be wondering if this listing price is too good to be true for the location? We tapped our expert, realtor Othneil Litchmore, to better understand how a property with so many perks could cost less than $800,000.

It's a short walk from the Lansdowne TTC station and costs $799,000.

Why is the price like this:

The two key elements that seem to determine the price of 580 Lansdowne are a balance between the condition of the house and the location.

“Generally speaking, the reason these neighborhoods are so sought after or highly valued is because they’re close to public transit,” Litchmore said.

The house is a two-minute walk from the nearest TTC station, giving anyone who lives there easy access to the whole city.

One of the bedrooms in the three-bedroom semi-detached house.

Still, at its $800,000 price tag, the 580 Lansdowne gets a steep discount. In July, the average cost of a townhouse in the area was $1.2 million.

“The average price for a family with three bedrooms and two bathrooms in this neighborhood is around $1.2 million,” Litchmore said. “The cheapest price sold was $980,000.”

Realtors often set a low asking price to start a bidding war, but according to Litchmore, that’s not the case here, the discount for this property comes from the condition of the home.

Despite the excellent location, the listing clearly indicates that there are a lot of repairs to be done.

Litchmore said real estate agents most often highlight the home’s most attractive features, but the list includes photos of holes in the walls and ceiling.

“I think they’re deliberately sending a message to someone who wants to flip the house or an investor,” Litchmore said. “Or someone who wants to be an end user but has access to contractors or is a contractor themselves and can do the job.”

Anyone who buys this home is considering a renovation in addition to closing the deal, something that could cost between $100,000 and $200,000, Litchmore estimates.

Estate agent Othneil Litchmore said that given how transparent the photos accompanying the listing are?  offering close-ups of holes and disrepair?  the seller is probably waiting for an offer from someone like a contractor or an investment buyer.

The house has also been on the market for over 60 days. Home sales in Canada fell for the fifth consecutive month in July, so there are a ton of people looking for an offer on a home in Toronto.

But Litchmore says that with the current ownership stipulations, selling could be even more difficult than you might expect in a chilled market.

“Your average buyer is looking for a move-in ready home,” Litchmore said. “It’s marketed to someone who wants to do work, and it’s a smaller pool, so it’s obviously going to take longer to sell.”

Any other tips for those looking for places like this?

For a house this size, priced and ready to move into, you’ll probably have to travel much further east or west, outside of the city center.

“It won’t be near the subway,” Litchmore said. “If you want something full it will be Scarborough deep or Etobicoke deep.”

For a home that size, price, and move-in ready, you'll likely have to travel much farther east or west, outside of downtown, Litchmore said.

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