Toronto City Council plans to introduce a new tax on vacant Toronto homes starting in 2022. This vacant home tax aims to increase the housing supply by encouraging homeowners to sell their vacant homes. The resulting tax revenue will be used to fund affordable housing projects. As a house seller your vacant house will soon become more of a financial burden and we want you to know about your selling options. Most people know what a real estate agent is and they have pre-determined ideas or experiences about what they do for you as a seller. On the other hand, some sellers might not know what to expect when working with a professional home buyer in Toronto. Sellers can expect a professional homebuyer to provide simple, stress-free transactions. Here are some pros and cons of selling a vacant house in Toronto with a direct buyer.
Pro – Straightforward Closings
way to sell your vacant house in Toronto
Direct buyers in Toronto, typically close faster than traditional home buyers, and usually pay in cash. Traditional home purchases usually require qualifications from banks, mortgage underwriting time, property inspection time and the buyer may not end up qualifying in the end. There are also normally no commissions paid to a buyer’s or seller’s agent which means thousands of dollars in savings. Direct buyers can also provide sign unseen offers which can be great during Covid or if you are out of Province.
Con – Below Market Offers
One of the biggest complaints buyers have about working with direct buyers in Toronto is that the offers are usually below market, but this is for a good reason! The buyer is taking on a huge risk when selling a vacant Toronto house as-is, for your house may be more damaged than you realize! Plus, you won’t spend any money on commissions or holding costs.
Pro – Purchasing Houses As-Is
Direct buyers in Toronto will usually purchase vacant homes as-is. As a seller, this means you do not have to worry about repairs before closing or any other additional expenses you were not planning on. Maintenance and upkeep can be challenging on a vacant house, especially if you live far away. Selling sooner than later is often a good idea if your vacant house is heading towards disrepair. There are some companies that do not require inspections which makes it a truly as-is transaction when selling a vacant house in Toronto.
Pro – Lower Risk Transactions
Direct buyers are in it for the investment. They are not expecting to move into the home on the day of closing. Most home buyers will allow a move-out timeframe after closing to allow you to move at your own pace. This is extremely helpful, especially with such quick closing timeframes and if you still have furniture and belongings in the house. When you are selling a vacant house in Toronto, you won’t have to clean it at all, you can walk away to your next property and wipe your hands of any mess!
Selling to a professional home buyer is extremely straight forward. They will layout every step of the process and usually have shortened, very clear contracts that are simple as-is purchase agreements. You will also have lessened exposure to legal risks. You won’t have to worry about the buyer finding something you didn’t know you didn’t disclose or something they don’t like about the home or the neighborhood. Direct buyers already know the state of the property, and they are willing to take on that risk when you are selling vacant house Toronto.
Pro – No Showings
When you decide to use a professional home buyer in Toronto, you will not have to worry about going through a roller coaster of emotions. There are no frustrating, middle-of-dinner phone calls asking if you are available to show your vacant home. You don’t have to worry about a buyer using the toilet in your vacant home and no one flushing it for days… this does happen much too often! You don’t have to worry about a buyer’s agent or their clients not shutting off lights, not locking the door and not being around to keep an eye on all of this.
Pro – Time to Closing
Many Direct buyers are flexible on the move out timing that the seller desires. Direct buyers can be flexible because they are not relying on the banks or credit unions for a mortgage. Since your house is vacant we expect that you probably want it sold and have the funds now. We can close in a matter of days if you need rush service. But we also understand you may also have reasons to close many months away. If you own multiple vacant houses, then maybe you want to sell one property per year to spread the tax impact on your gains. Direct buyers can close quickly and easily if you’re selling vacant house Toronto, allowing you to have your cash sooner.