This average Toronto home is going for $4 million but there's a catch
I might have just stumbled across the strangest house sale of the year.
15 Crossburn Dr., which currently is a very average four-bedroom bungalow, is being sold for $4,350,000.
But it's not really the house in the listing photos that's being sold. In fact, you can't even buy that house if you wanted.
The short listing reads: "Price includes the design and construction of a new house. Architectural drawings are available."
It goes on to say: "Buyer can choose finishes and customize the design before permits are obtained. Cost of permits is included in the purchase price. Ideal for someone looking for brand new, state of the art home built to suit your needs."
Now, don't feel bad if that doesn't make any sense. It didn't make sense to us either, so we reached out to realtor Nona Akhavan to see what the deal was.
"The owner is looking for someone to invest in the construction of [a] house," she explained, going on to mention that the owner is a builder and is selling this house as a pre-construction.
According to Akhavan, the buyers would get to decide on the home layout, floor plan, the fixtures and everything else in the home.
And similar to other pre-construction purchases, ownership doesn't transfer until construction is complete.
Akhavan explained that during the build process the current owner would still have the house under their name, pay the mortgage and property taxes, utilities, etc.
But why this is weird is because usually buying a pre-construction is when there's an entire condo building or neighbourhood being built.
Furthermore, pre-constructions are usually done by good, reliable developers and there are many people that buy in at various stages.
Pre-construction homes are almost never just some owner who wants to build a house with someone else's money... In fact, Akhavan couldn't even tell blogTO if the owner worked for a construction company or owned one.
In short, all of it sounds very suspicious.
Also, no matter how many questions we asked it's still unclear how Akhavan and the owner came up with the asking price when the actual cost of construction is still unknown, and the average price for a house in that neighbourhood is just over $2.5 million.
Sure, there are guidelines on generally how much it costs per square foot to build a new home in Toronto.
But as anyone who's ever done a renovation or tried to build anything in this city knows there's always something that wasn't in the budget.
So while we're not saying buying 15 Crossburn Dr. is a bad idea, we would say get a good lawyer if you're going to buy into this pre-construction.
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