This Toronto house just sold for $470K over the asking price (PHOTOS)

Everyone likes to say real estate is a great investment and for the owners of this Toronto house, it really paid off after their home not only sold over asking but went for almost $2 million more than they originally paid for it.

Located at 186 Ranleigh Avenue in Toronto’s Lawrence Park neighbourhood, this house last sold in 2003 for $505,000. Then this month, it hit the market with an asking price of $1,998,000 and sold one week later for a whopping $2,468,825.

Although the current real estate market is likely responsible for some of that profitability, the owners also put a lot of work into the house. They converted it from the three-bedroom, two-bathroom, partly finished basement home they bought it for in 2003 into the four-bedroom, four-bathroom, fully finished basement they just sold.

They also added a two-floor extension at the back and made the house solar-powered, which is also able to bring in income.

“This is a true testament to putting money into your home,” Zoocasa agent Colton Rice told Daily Hive. “Whether it’s digging out your basement, replacing windows, or gutting the property back to the studs, it’s worth it! It’s not hard to see that dollars in, pay extra dollars on the way out.”

Although from the outside the house looks relatively small, the inside feels spacious — likely thanks to the additions — with a spacious kitchen, formal dining room, and multiple living areas. Not to mention the desirability that having four bedrooms bring to Toronto homes.

“The fundamental necessities to raise a large family in Toronto are driving the prices wild,” Rice said. “It’s hard enough shopping for a three-bedroom house in the city — easily the most common — the competition for four and five is even higher.”

With all those factors to consider, Rice says the property was listed about $200,000 lower than it would have been valued at given past sales in the neighbourhood.

“It’s easy to see why the property was listed just shy of $2 million to drive up additional interest and set up for a multiple bid scenario,” Rice said. “I’m sure the traffic was busy, and a lot of false hopes unfortunately for many buyers.

• See also:
  • Foreign homeowners may soon be federally taxed for having vacant properties
  • Ontario tenants could be fined $25K for sharing videos of eviction hearings

So for anyone hoping to make a competitive offer in today’s Toronto market where every house seems to go well over asking, Rice says it’s important to do your research.

“My tip to the buyers in the market is to review recent sold data, talk to your agent, and review the street,” he said. “It is important to understand the pricing and inventory in the areas you are looking.”