Toronto home buyers renegotiate with sellers after market slow down

Reports said the buyers are coming up with a new price days before closing.

Several buyers are realising that the house for which they have agreed upon to pay a certain price is presently below its worth.

CTV News tracked down one such seller who has fallen into a trouble just days before the closing due to the recent trend in Toronto.

Rudy Ionides was almost done with the packing the moment he received a letter from the lawyer of his home buyer. The lawyer clearly stated his client wants to adjust the price at which the deal was finalised.

The lawyer said the buyer wants to reduce the home price by $50,000 and also extend the closing date to September 7.

Ionides was quoted by CTV News as saying: "He’s asking me to enter into a contract with him that he will return this money, but he’s breaching his contract once already. What trust do I have he’s not going to breach it a second time?”

However, Ionides has decided not to accept the terms of his buyer.

“The repercussions of the house not closing entail us going to court and fighting to get the funds that are owed to us, which is not obviously something that I want to have to deal with" Ionides added.

Real estate lawyer Jason Gottlieb, who claims to have dealt with several similar cases, told CTV News: "I think that the buyers are finding it difficult to come up with the money that they went into the deal and priced the properties at."

The prices and the sales of Toronto houses recorded the third consecutive month-to-month reduction in July.

The average prices of all types of houses were up by 5% year over year.

Apart from the prices, the sales of houses also dropped by 40.4% year over year in July.

The maximum drop in sales occurred in single-family houses where the number of detached house transaction dropped by 47.4% year over year.

The condo sales came down year over year in July by 30%.

(Reporting by Souvik Ghosh)

Image: Creative Commons.