Today, Adrian and Ariel reviewed responses from their top 3 TikTok’s.
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Can I Kick Out a Tenant to Sell My House?
In response to this question, Ariel’s TikTok explains you cannot ask a tenant to leave solely for the purpose of selling. Even if the rental contract has expired and they’re on a month-to-month, it doesn’t matter. If you have a tenant and want to sell your house your best option is to try and negotiate with them.
- “The Residential Tenancies Act does not allow landlords to evict tenants solely because the property is being sold.”
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Real Estate Agents Downplaying the Market
In a TikTok with Adrian, he talks about seeing real estate agents either being in denial or not wanting to speak the truth about the current market. Prices were down 14% across the board, and you need to be aware of and account for this when pricing your home. It wasn’t a seller’s market anymore.
The key is to hire someone who’s in touch with the market. Everything is relative. If you’re upsizing, the market can work in your favour because the gap in price between your home and the larger home is less than when prices were higher.
On May 3, Klausfritz626 posted, “It’s going to be a bloodbath. The market has not finished its downward trend.” Maybe a little graphic, but his prediction was correct.
It prompted a response from a realtor on May 27, “The market has normalized. Properties are selling at market value.” Adrian’s response, “You’re right because market value is today’s value, but you’re wrong because they’re still going down.”
In this case, the non-professional was more accurate than the agent.
Suspicious Realtors and The True Definition of Market Value
Beware of realtors trying to sugarcoat the market. Saying that the house sold for market value isn’t wrong, but it doesn’t mean anything.
The definition of market value in real estate is ”the amount that a current buyer is willing to pay and what a current seller is willing to sell their property for.”
Statistics aren’t compiled until a month later, and even those are skewed because the same house can be listed multiple times.
Remember the game M.A.S.H (Mansion, Apartment, Shack, House)? Ariel takes a turn with Adrian during our podcast, and the results are pretty funny.
Building Up Unrealistic Expectations for Your Clients
Enginerd Life says, “People who set unrealistic expectations for the clients will constantly be dealing with pissed-off clients.
Home sellers keep in mind:
- Interview multiple realtors
- In a seller’s market, you will get five realtors with different opinions on your home’s value, but they’ll be in the same range.
- In a buyer’s market, nobody can tell what a buyer might be willing to pay when there’s downward pressure and a lot of supply. You might be getting desperate as a seller, and a savvy buyer’s realtor can beat you up on price.
- When it comes to selling your home, a lot of agents will give you a high number to earn your business and then reduce the price.
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House Prices Increasing + The Need for More Houses
A discussion about the problem of spending too much money on fun purchases, which started with KT Confidential episode 190 – Real Estate Advice for Gen Z, got some mixed responses.
A Gen Zer said, “Home prices are up how much in the last ten years? We never had a fair chance.”
A report from CMHC states:
- Ontario needs 1.5 million more homes by 2030
- In 2003 the average home in Ontario cost approximately 40% of a household’s disposable income. In 2021 that ballooned to 59%
Ariel’s advice from the original podcast was to buy a home in a less expensive city, rent it out, and use that money to pay the mortgage and build equity until you can afford the home you want.
For more real estate updates and tips, check us out on TikTok @kormendytrott.