Case Study / Toronto, Beaches
The Value Proposition
Two sellers in the same neighbourhood: one selling a house, the other selling an opportunity.
The Uninformed Seller: A homeowner lists their 3-bedroom, detached house. Their agent looks at comparable sales of other 3-bedroom houses in the neighborhood. It’s valued as a single-family home and sells for $1.3 million to an investor who plans to rent it out.
The Informed Seller: We have the homeowner approved for a 6500 sqft sixplex and 1800 sqft laneway suite. They are not selling a “house”; they are selling a 7-unit residential development site. The seller adds our report to their listing and attracts multiple developers.
Instead of attracting investors and individuals, this seller is now in a bidding war between builders. Based on their projected profit from building and renting 7 new units, the developer pays $1.9 million for the exact same piece of land.
