Contrary to what it might seem, not every Toronto house sells for over asking. While the trend is perhaps more visible than ever, it's common for homes to be snatched up for less than the listed price.

This rundown property at 7 Edgedale Rd., at the northern end of St. James Town, offers some insight into the circumstances that can lead to this scenario. It's a home that's seen better days and will require a major renovation before a new owner will want to move in or resell.

It's been used as a rental property for many years, but the sale comes in conjunction with progress on the Viabloor condo development, which is about to built a stone's throw away at Bloor and Parliament.

Listed at $1,349,000, it was ultimately bought for $219,000 under asking, a price that surely reflects the extensive amount of work required to restore the property as a single family home.

The attached home next door at 5 Edgedale is in a bit better shape, but it also sold for $1,130,000, hinting at the the likelihood that one buyer nabbed both properties. It wouldn't be surprising to see both renovated and re-listed in the future.

The Essentials

• Address: 7 Edgedale Rd.
• Realtor: Sotheby's Realty
• Hit the market at: $1,349,000
• Time on market: 43 days
• Sold for: $1,130,000

Why it sold for what it did?

This property (and its next door neighbour) sat on the market for a month and half before being snatched up. That partially explains the sale price. These homes need a lot of work, but the property itself is still highly valuable given the location and the condos soon to come.

Was it worth it?

Definitely. There are good bones here. Beyond that, it's close to the subway, Rosedale ravine, and the neighbourhood is in the midst of transformation. If the property is ultimately flipped, you'd bet that it'll be a money maker.