Is $ 779,000 overpriced for this old bungalow in Ajax? This real estate agent says it’s crazy

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Price: $ 779,000

Quarter: Ajax – Southeast

X-factor: Near the heart of downtown Ajax and close to Lake Ontario, this bungalow is currently the neighborhood’s cheapest detached house on the market, located below $ 1 million. It has also been listed for almost three weeks.

With two bedrooms and a bathroom, this can be ideal for first-time buyers and developers who see potential in the property, as it boasts a huge plot size of 76 x 147 feet.

If you are a first-time buyer, you may be asking, is this a good deal? We picked up our expert, real estate agent Othneil Litchmore, to get a better understanding of why this property costs what it does.

Why is it priced this way: The 76 Kings Crescent house is currently priced at $ 779,000, but was lowered from its original roof of $ 799,000. Litchmore says, however, that this property is still overpriced, as a similar house around the corner is selling for $ 730,000.

Litchmore adds that this home will likely have to lower their price tag even further to make $ 700,000 to sell. Another indication of why it’s overpriced is that a larger home on 4 Forest Road – which has an extra bedroom – was sold for $ 775,000 in September.

“Who has to pay $ 779,000 for this little (house) in Ajax? I mean it’s cute, but it’s $ 779,000 for two bedrooms and a bathroom. It’s crazy,” Litchmore said.

The house has been sold twice in the last three years. In 2018 it was bought for only $ 505,000 and in September 2020 sold for $ 630,000.

“They feel they can charge $ 150,000 more than they paid for it a year ago. It’s crazy,” Litchmore said. “Someone will buy this in a second for $ 720.00 or $ 730,000. Nobody wants to pay $ 780,000 for this. “

The bungalow was once very popular in Ajax, but is now an “anomaly”, says Litchmore, as the city is flooded with new townhouses and brick houses that have at least three bedrooms and are two storeys high.

There is a potential for raising a family here as there is access to transportation, the lake, schools, shopping and recreation centers, but Litchmore says there are better options in town.

“I think it’s going to be hard to find someone who will bring their young family to Ajax to a house like this,” Litchmore said. “The vast majority of people who come to Ajax, they come for a new house and a house with space and a community where they can raise their family.”

For the price, Litchmore thinks it is not appealing to any specific demographic, but it may be for someone who wants to buy it as a rental property. In the future, the property may also be expanded to become more townhouses due to its massive plot size, but it does not appear that the particular neighborhood is developing yet, Litchmore says.

Tips for finding a place like this: You’ll probably search for older homes in newer neighborhoods to land something like this, Litchmore says.

Although these houses may be old, there is interest from buyers as it is relatively close to nature while still having quick access to transportation to Toronto with the Ajax GO Train and Highway 401 nearby.

On 17-11-2021 at  23:25 Osman, Lebanon (losman@thestar.ca) Subject: 76 Kings Crescent P {margin-top: 0; margin-bottom: 0;}

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