House in Riverdale on the Market for $1

$1 House TorontoCall it a gimmick, call it a brilliant marketing move, or call it crazy, one home owner in East York has put their home up on the market for $1.00.

The home is located near Dundas and Carlaw, an area where similar homes routinely sell for $375K +. It has 3 bedrooms, 2 baths and was recently renovated by a professional home flipper.

Perhaps this is a sign that spring fever has hit the Toronto Real Estate Market. Although sales are down from last years record pace, the fair weather of late seems to be bringing back some of that only-in-Toronto insanity. More likely though this is a sign that savvy sellers are realizing that in order to stand out in a changing market you have to stand out from the crowd. Pricing your house for a dollar will do the trick as evidenced by this story being on just about every Toronto-based 6 o'clock news program today.

For the pragmatically curious reader, no, the seller is not obligated to accept an offer on their house if that offer is for $1. By law, they are free to accept or reject any offer they receive. This extreme example illustrates the arbitrary nature of asking prices in real estate and one reason why bidding wars are so common.

Just for fun: put your guess on what you think the final selling price will be in the comments section. Closest to the sale price without going over wins bragging rights and a lifetime supply of awesomeness.

Andrew la Fleur is a registered real estate agent and regular contributor to blogTO.

Photo from Asim Khan.

Reader Reviews and Comments

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$375,001

Posted by: Jerrold at April 18, 2008 7:01 PM

Badgerow Ave. Wasn't that the street where the mummified
infant was found? I can't find anything anywhere, but
that street name sticks in my mind and I think it's the
mummified baby. Am I wrong?

Posted by: David Toronto at April 18, 2008 7:10 PM

I called the agent and the house is set up for auction. Great marketing ploy though! I think it will sell for $390K.. Looks great...

Posted by: AZ at April 18, 2008 7:45 PM

The baby was found on Kintyre Ave, in the Broadview/Queen area.

I say $297,677.78

Posted by: John at April 18, 2008 8:25 PM

I'll go for $367,990.

Posted by: Kat at April 18, 2008 11:45 PM

405K

Posted by: khalid at April 19, 2008 2:55 AM

$401,000, Bob.

Posted by: CanuckNurse at April 19, 2008 6:51 AM

It's going to go for 425,000.

It's a nice neighbourhood... I wonder of the reno is any good?

Posted by: Steve at April 19, 2008 9:52 AM

@Jerrold
I bid $375,002

You just got Price is Righted!

Posted by: Markus at April 19, 2008 11:27 AM

East York? Is that fancy registered real estate agent border shifting magic?

Posted by: Y at April 19, 2008 12:38 PM

@Markus

I'm not worried... I got it nailed exactly (and Bob Barker will give me a hearty high five when I go up to play for a newwww caaar!).

Posted by: Jerrold at April 19, 2008 12:43 PM

lower than all that...
356,000

Posted by: johnnyfromtheblock at April 19, 2008 4:15 PM

406k bob!

Posted by: Ryan Marr at April 19, 2008 10:14 PM

This guy needs to do this in a slow real estate market. Speculators/flippers like him are running for cover now. Canadas Real Estate Boom just went POP!

Canada's housing boom is officially over
http://www.theglobeandmail.com/servlet/story/RTGAM.20080417.wcrea0417/BNStory/Business/

Slide ends housing boom
http://www.nationalpost.com/news/story.html?id=452948

Posted by: proud canadian at April 20, 2008 8:42 PM

By the way, a great read on the state of Real Estate Market in Canada

Greater Fool by Garth Turner
http://www.greaterfool.ca/

Posted by: proud canadian at April 20, 2008 8:45 PM

My first guess was $463K - might get more...depends.

Posted by: Allan at April 21, 2008 11:45 AM

Andrew - invest in a map and learn about your city before you write about it. This isn't East York.

Posted by: Jay at April 21, 2008 1:31 PM

$2! I win!!

Toronto's $1 home experiment fails
http://www.cbc.ca/money/story/2008/04/22/one-dollar-house.html

Sad, really, really sad. $2?

Wait till the Speculators/Flippers like this guy start panicing.

Posted by: proud canadian at April 22, 2008 5:54 PM

I'm a little late in posting, but this story also caught my eye. Check out my thoughts on the merits of the "one dollar listing" marketing strategy.

Posted by: Lauren Mitchell at April 26, 2008 5:00 PM

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