How to Find Discounted Properties in Toronto

It’s no secret that Toronto is home to one of the world’s most robust property markets. With the average home costing over $1.1 million (as of July 2023), to many in the GTA, getting a foot on the property ladder can seem like an unattainable dream. But it doesn’t have to be - there are ways to secure a property in the GTA for less. 

 

 

Finding Cheap Properties in the GTA

There are a few different ways to discover and secure cheaper-than-average properties across Toronto, each with their own risks and benefits. Let’s take a quick look at them one by one:

 

1. Off-Market Properties

The majority of homes for sale in Toronto - and indeed across Canada - are listed publicly via the MLS system. However, a reasonable (and increasing) number are not being listed for sale publicly. These properties are known as “off-market properties,” or sometimes as “pocket listings”. Importantly, this is not the same as when a property is being sold directly by its owner, without a real estate agent or broker representing them. That situation is known as “for sale by owner” or “FSBO”. Most off-market sales are also FSBO sales, but they don’t have to be.

 

There are a few reasons a seller might not want to list their property publicly (such as confidentiality), but whatever their motivation, off-market properties can be available at a discount to traditionally advertised properties. This is largely because there is simply not the same level of competition between prospective buyers when you have to be in-the-know to even know the property is available. The flip side of this is that finding these properties is much harder than finding a property listed on MLS. 

 

You can discover off-market properties via:

• Social media groups

• Online resources

• Builders and contractors

• Developers and property investment companies

• Landlords

• Real estate agents and brokers

• Wholesalers

• Word of mouth

 

The crucial aspect of finding an off-market property is networking, so that you have contact with the people most likely to come across them.

 

2. For Sale by Owner Properties

Similar advice applies to finding homes for sale by their owners, rather than by a real estate professional. FSBO sales can be advertised publicly, so they are not necessarily off-market - though many are - and they are often cheaper than traditional listings, because the homeowner is looking to save on real estate agent fees, and some of these savings can be passed onto the buyer. But because the seller is looking to save on the sale, they likely won’t have spent much time or money advertising it. So these properties can be hard to find.

 

There is an additional risk to buying a home sold directly by its owner, without a real estate professional’s involvement, that has nothing to do with how or whether it was advertised. Real estate agents must adhere to certain professional standards, which in effect protect the legal interests of both parties in a property transaction. Without their help, there is no guarantee that information provided about a property is accurate, or that the price being asked is fair.

 

3. Regionally Cheaper Properties

One obvious, but nevertheless important, way to find cheaper homes is to focus your efforts on areas that are on average cheaper than their neighbours. The property market can vary quite a bit across the GTA; for example, the average house price in the Bridle Path-Sunnybrook-York Mills area is $3.1 million, while the average in the Durham area is just under $875,000. That’s quite a saving for an extra half hour’s commute!

 

You may have to accept fewer amenities, or compromise on how close to downtown you are, but by choosing a less popular area you can get more bang for your buck. 

 

The cheapest areas in the GTA currently are:

• Oshawa

• Clarington

• Georgina

• Brock

• York

• Orangeville

 

If you’re dead set on being near the downtown core, the cheapest neighbourhoods are:

• West Humber-Clairville

• Flemingdon Park

• Scarborough City Centre

• Crescent Town

• Parkway Forest

• Thorncliffe Park

• Black Creek

• Hillside

 

4. Auction Properties

Homes for sale by auction are rare in Ontario, but not unheard of. Auctioned properties can be both much cheaper, and much more expensive, than homes available by traditional means. In this sense, they demonstrate their primary drawback: unpredictability. 

 

Homes of all types can be auctioned off, and the type of auction heavily influences whether or not you’re likely to find a good deal. To find the cheapest options, focus on auctions held by entities other than real estate brokers. Real estate brokers usually hold auctions in order to increase competition and get their sellers the best price, while auctions held by, for example, the City of Toronto, are intended to unburden the sellers of an obligation.

 

It’s important to be aware though that cheap auction properties almost always have issues - such as needing renovation - as many come from foreclosures. In some instances, you may not even be able to view inside the property before the auction. This is why it’s important to understand the risks and rewards of this kind of cheap property. 

 

5. Estate Sales

Lastly, estate sales can be a great way to find a comfortable home for an affordable price. Most estate sale properties are being sold by the executors of a person’s Will, and so speed and convenience are the driving forces behind the sale. This means you are more likely to find a property for below market value. Be warned though, many estate sale properties require a little work, as often executors do not have the time to bring a property up to ‘sale-ready’ standards.

 

Pros and Cons

 

Method	Pros	Cons
Off-market properties	Can be cheaper Confidential Avoids bidding wars Access to unusual properties Sales can be completed quickly	Harder to find properties Greater risk of fraud Hard to get an accurate valuation of the property
For sale by owner properties	Cheaper properties Avoids bidding wars Access to unusual properties Sales can be completed quickly	Harder to find properties Potential for inaccurate information and fraud Hard to get an accurate valuation of the property
Regionally cheaper  properties	Cheaper properties More ‘up and coming’ areas	Fewer amenities Lower resale value
Auction properties	Can find bargains Sales can be completed quickly	Homes often have issues or need work Unpredictable supply and price
Estate sale properties	Can find bargains Sales can be completed quickly	Homes often have issues or need work

 

Embrace the Unconventional to Find a Deal

If you search for your next home in exactly the same way as everyone else, you will be competing with everyone else. But if you think outside the box via one of the methods listed above, you are more likely to find a hidden gem or a fantastic bargain.