Over the summer of 2021 there was a sale that got the attention of a few mid town agents, it was a home on 55 St. Edmunds Dr in the coveted Lawrence Park neighbourhood that sold for $3.45M in March of 2021. A neighbourhood with a median price of ~$4.2M for 2021.
At face value there was nothing notable about this sale or listing until the deal fell through and the property was relisted for sale again for $2.99M and ultimately selling for $2.6M in August 2021.
While it’s uncommon for deals to fall through due to the high probability of damages that will be awarded, these things happen. In this instance it is speculated that the original listing did not disclose the home was designated or was about to be designated as “Heritage”, which was deemed a material misrepresentation leading to the deal falling apart. Upon relisting, with full disclosure the property sold for an $850k discount or 25% less than its original sale of $3.45M.
Heritage homes, depending on municipality and association must abide by certain rules in terms of what can and cannot be done with the property. In my opinion the buyer took advantage of a great opportunity to get into a sought after neighbourhood at a steep discount. They are forgoing the optionality of potential development in the future (something majority of home buyers don’t even consider with their purchases) and they have to abide by a few rules, two relatively small compromises relative to the value of this purchase. My next two posts will highlight two other examples of the opportunity with heritage homes at significantly lower price points relative to the current market. #realestate #toronto
