Ah, the infamous corner lot.  You know, the one you always see while driving in and out of your street?  That house that ends up getting all the attention; both good and bad...

When people are asked their opinion on what they think about homes located on the corner, one thing is certain: opinions vary.  But facts are hard to deny, so let’s examine the facts, shall we?  Corner lots are usually the first units to go up in a new subdivision, sold to the public by builders at a premium.  They tend to have slightly wider lot sizes, with less depth.   Often, the front door is located on the side of the home and the backyard may, at times, be replaced with a side-yard. 

Now, although opinions may vary because people’s preferences are different, everyone can agree on both the pros and cons that corner lots have to offer.  On the pro side, they are often larger than their neighbours, giving visitors a grand feeling.  This is why they are often the showcase pieces of the neighbourhood.  By being the most visible, they obviously will get the most attention.  This is perfect for proud homeowners who take good care of their property and love to entertain.  Perhaps for those who enjoy spending spare time on their street and socializing with neighbours.  Also, corner lots can be perceived to have more privacy, in light of the fact that the homeowners only have one set of neighbours to contend with, as opposed to most lots that have neighbours on either side.  A few examples of properties that are true premium corner lots are those large homes in affluent neighbourhoods with oversized lots and end-unit townhomes. 

That being said, let’s examine the cons.  Being that a home on the corner is the most visible, by definition, it’s the most exposed.  Residents may feel a slight lack of isolation.  Corner lots usually attract the most action and are often the busiest sections of the street.   It can be a common occurrence for pedestrians to use the front-yard of a corner lot as a shortcut when on foot, as sometimes walking across someone’s lawn can be quicker than walking around it.  Generally, corner lots come with slightly more land, which will need more maintenance and upkeep.  Lastly, the unorthodoxy of the slightly-altered layout that a corner lot entails can, in a down market, prove to be less attractive to potential buyers than their “cookie-cutter” neighbours.   In many cases, buyers making an offer or bidding on a corner lot, will use these discriminatory factors and attempt to justify an offer that is significantly lower than list.

So, to summarize, corner lots are valued differently by different people.  More often than not, a corner lot's true market value will be highly dependent on the neighbourhood that it is situated in, the crossroads that the lot intersects and the amount of privacy that exists surrounding the lots (shrubs, fencing, etc.)  In other words, the value of a corner lot is very circumstantial and there is no single perspective of vantage point.  But generally speaking, in a buyer’s market and if not a true premium corner lot, they can pose a bit of a challenge if the right marketing techniques are not applied.  Here at the TheRealtorGroup.ca (powered by Re/Max Ultimate Inc.), we specialize in selling all types of properties, even the difficult ones.  You see, we don’t just want to sell your home; we want to locate that perfect buyer who will pay top dollar for it.  There’s a big difference between the two.  This is what we do full-time and it’s what we do best.  In the past month alone, we got 3 of our sellers multiple offers on three separate listings.  We will do the same for you. 

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Muliple-offer situations in the GTA are not uncommon... In fact, in a very hot market, they are often the norm. The listing agent does his/her research, sets a list price just slightly under market value (to increase showing activity) and after offers are taken, the buyer who's willing to spend the most, ends up with the home (usually for a few percantage points above asking). This is normal, because homes, unlike others goods, can never be exactly duplicated. Therefore, demand will always be (to some people) completely inelastic (always be high, like milk). Someone will always be willing to pay more. This is fine. In contrast, we're noticing a trend where homes in prime locations have been listed for a buck or two ( http://www.torontomls.net/PublicWeb/CL_CF.asp?link_no=31242773.498700&t=l&fm=F -- this link will be dead as of 05/29/10), eventually selling for much more than what should have been the case. This is something we at TheRealtorGroup.ca find a bit alarming and we'd like to share with you why that is... When homes are listed for ridiculously low, there are a few things that buyers should be aware of. The lower the list price, the more activity the home will receive. Ultimately, it will receive more offers, many from buyers who will not be actual contenders to purchase. What this does to actual contenders is skew their offer price, as they're not really sure how many offers actually hold weight. In a hot market, this can lead to superinflated prices, which in the long-run, will hurt our economy. Not to mention, if you're putting less than 20% down on the purchase of your home and you spend over 5% above the asking price, it's likely CMHC will not insure your mortgage. This, unfortunately, is not common knowledge to most buyers.... Which is why, when's it's time to make that big purchase, you'll need a team on your side that will watch out for your best interests. Contact us here at TheRealtorGroup.ca to find out how we can start helping you today. We work harder, so you can live better. TheRealtorGroup.ca on the Pulse of the Market...