REAL ESTATE: The Weekly Drop – September 3, 2012 ( PART 1)
Documenting Vancouver real estate price movements
Here are the 20 properties that dropped their price the previous week AND have dropped the largest percentage overall from their original asking price.
Some highlights for this week:
- 30 listings dropped to a cumulative total of 20%+ this week, 7 hit 25% and 3 hit 30% this week
- 4 listings from the Sunshine Coast, 3 from Hope and Mission and 2 from Richmond
- 11 of 15 listings with assessment information are now listed below assessment. 73% is a new record for this weekly drop list
- #1 – we’ll see this one topping this list again in the near future. It has been relisted at 33% below the original price and has been at this price for 4 and a half months.
- #3 is now over 30% below assessment
- #4′s first price drop was $750K. Their second price drop six weeks later was for $1K.
- #5 “Vendor willing to help clear building site and build on property. Vendor motivated to sell!”
- #6 is littered with spelling and grammar mistakes and finishes the description of this $2 million home with “The owner treat it as vacation home.”
- #7 – this apartment building had one sale last year and it was for 36% above assessment! This unit is currently listed 11% below assessment and the special assessment for rain screening has already been paid by the owner
- #8 has a front yard that looks like a garbage dump and comes with the standard “Land value, sell “As is” “Where is”.”
- #12 – this apartment had 13 sales last year averaging 1% below assessment. This unit is currently listed 17% below assessment. ”Units needs some TLC” is realtor speak for “This place is trash” in case it wasn’t obvious
- #13 “Motivated seller!”. A new build that has dropped $900K – bankruptcy is definitely good motivation
- #16 is over 30% below assessment
- #17 – this apartment had 2 sales averaging 4% above assessment. This unit is currently listed 24% below assessment and the realtor couldn’t come up with a description despite it being listed for 6 months
- #20 is an awful looking half duplex that managed to be made to look even worse by the horrid description… “BETTER THAN DARK CHOCOLATE”, “there’s a storage shed with ladder-accessed loft level – cool!”, “Work is needed throughout, bring along that work-ethic your parents told you about.”, “good way to get your start and build your equity!”. Apparently this obnoxious description is not unique to this listing for the realtor. Other doozies from his listings include “Better than hot buttered corn on the cob!”, “Better than fruit salad with chocolate ice cream and drizzled with chocolate sauce!”, “Like a perfectly done medium-rare ribeye steak!”, “Sizzling Skillets!”, “Better than chocolate cupcakes!”, “Just like UPS, this Brown can deliver!”, “BETTER THAN CRISPY BACON”…. Ok, I guess this is the guys schtick.
#1 ) Address:25977 DEWDNEY TRUNK RD, Websters Corner, Maple Ridge
11.96 Acres with 2 homes on city water. the barn is renovated into a nice home with main house. Property has great potential wood & tile finish & european flair.
#1 – we’ll see this one topping this list again in the near future. It has been relisted at 33% below the original price and has been at this price for 4 and a half months.
MY COMMENT: Another case of delusion, asking far over assessment, and likely scaring off any potential buyer. Does not state if in the ALR but likely is….this must be checked out , as ALR properties are their own zoning with many restrictions. Be aware of these first , or one may be caught up in a lot of red tape AFTER you purchase it.
#2 ) Address:59895 HUNTER CREEK RD, Hope Laidlaw, Hope and Region
Assessment: No Assessment
This is ideal property on the out-skirts of Hope. Located on a rest stop exit. Has water license, geo technical Report is done, building site is approved. Bring your ideas. Owner may be flexible on terms. Ideal property of that dram home, get away, mini resort.
MY COMMENT: Always read each description, often they reveal little clues wittingly or unwittingly . Why is their no assessment ? What is the size….one thing I like to do right off the bat is find a $/acre value. Geo tech report? Implies red tape, as opposed to existing home which are generally grandfathered.
#3 ) Address:13091 PORTERS RD, Pender Harbour, Sunshine Coast
Remarkable Pender Harbour waterfront acreage with a gated private driveway that meanders through the trees to a stunning setting overlooking Oyster Bay. Elegant and architecturally impressive 4500 sq ft home on 1800 ft of waterfront. Hardwood and tile floors, vaulted ceilings and expansive living set amongst the privacy of your own forest. 3 bedroom older guest house is in good shape and directly overlooks a deep water moorage for up to 4 vessels. Sub-dividable development property offers an excellent retreat and long term potential for a number of waterfront lots or community. A must see for big thinkers. Road access is via a private road.
#3 is now over 30% below assessment
MY COMMENT: Properties that require access that is not by roads (ie via ferries) is not a one I would invest in. What has happened is these were recreational properties, probably bought relatively cheap, but then everyone caught the R.E. bug that they would /could turn any piece of land into a mansion that would have a line -up of buyers. No…it won’t happen, a whole new demogrpahic of buyers is emerging, and they won’t be rich .
#4 ) Address:27752 MONTESINA AV, Aberdeen, Abbotsford
Stunning 5487 sqft, 4 yr old Log Home with breathtaking views set on 5 acres. This worry free home has it all, including granite countertops, stainless appliances, continuous hotwater, heat pump, central air, two car garage, beautiful deck off master, a full size pool table stays in the games room, a pond, even the dog has its own water! Nevery worry about being without power as this home has it own generating system. Two detached workshops (27×52 and 25×70), one with overhead crane. This home needs nothing as the current owner recently had everything cleaned and tested. Make this home yours today!
#4′s first price drop was $750K. Their second price drop six weeks later was for $1K.
MY COMMENT: Again, overbuilt. May have value for someone that has a business at home. In addition, the original asking price is way over assessment…may as well have a sign that says “Looking For Suckers”
#5 ) Address:# BLK A PARADISE VALLEY RD, Squamish, Squamish
Assessment: No Assessment
2.99 Acres of beautiful forested land along the Cheakamus River. Build your dream home and live full time or use as get away. Access is by foot or ATV over footbridge. Power at lot line . Vancouover 1 hr. south, Whistler 45 min. north. Renewable Crown Land lease. Vendor willing to help clear building site and build on property. Vendor motivated to sell!
#5 “Vendor willing to help clear building site and build on property. Vendor motivated to sell!”
MY COMMENT: This is leased land…..not clear title. The Gov’t owns it. You pay taxes and rent. I would stay away from these, or perhaps approach the Gov’t if it is willing to sell. You want control…not invest in something that you may ultimately have to forfeit. This happened to parties who built cabins on First Nation land in the Pitt River area,lease was up….and many parties simply had to abandon their cabins, no compensation.
#6 ) Address:7288 GILHURST CR, Broadmoor, Richmond
|Open House: May 27|
|Open House: Jun 02|
|Open House: Jun 10|
|Open House: Jul 08|
|Open House: Jul 15|
|Open House: Jul 22|
Tastefully deluxe custom-built house in central Richmond Broadmoor area, decorated with 5 star 2 master bedrooms, huge 2 kitchen with special antique cabinet & high end BOSS appliance. Main floor marble foyer/hardwood floor. Air condition and HRV system. Nature stone exterior with underground sprinkle. Living room and family room with gorgeous drop ceiling and crown moulding everywhere. Close to London High School. The owner treat it as vacation home.
#6 is littered with spelling and grammar mistakes and finishes the description of this $2 million home with “The owner treat it as vacation home.”
MY COMMENT: Treat as vacation home means what…..offshore absentee owner milking the system ?
#7 ) Address:# 209 20200 56TH AV, Langley City, Langley
“The Bentley” Located in downtown Langley, close to shopping, schools, restaurants and all other amenities. South facing balcony to enjoy late evening BBQ. Property is being completely remediated with new rain screening and a new roof. Assessment already paid by the seller. Large 2 bedroom unit with 2 baths. Complex has 2 guest suites, exercise room and bike room as well. Pets and rentals allowed.
#7 – this apartment building had one sale last year and it was for 36% above assessment! This unit is currently listed 11% below assessment and the special assessment for rain screening has already been paid by the owner
MY COMMENT: Pets and rental…not a good sign. too many variables and much possible friction amongst owners. Looks like a leaker via the stucco (I equate the two) .Alway a reason something doesn’t sell, and these types of details help explain it. The strata would have many absentee owners.
#8 ) Address:13814 117TH AV, Bolivar Heights, North Surrey
Huge 10,530 square feet lot, great opportunity for builder and investor, bring your ideas and offer. Land value, sell “As is” “Where is”.
#8 has a front yard that looks like a garbage dump and comes with the standard “Land value, sell “As is” “Where is”.”
MY COMMENT: I am seeing lots of these. Properties bought, tenants evicted….but just sit there and become derelict. FYI, why they are not torn down and often boarded up has to do with GST….if the lot has a building it is not considered a new lot…and thus exempt from GST, which can amount to thousands of $$$$. If the house is left, it is GST exempt. Regardless, likely bought at the peak and the owner is bailing. Remember ” Location Location Location”.
#9 ) Address:# LT.3 SWARD RD, Mission BC, Mission
Assessment: No Assessment
8.17 ACRES at the north end of Hatzic Lake. Access off the end of a dead-end street. Neighborhood has a park and boat launch. Not subdividable. No driveway, property begins at the end of the street. It is wet at the bottom, then rises steeply up the mountain.
MY COMMENT: Well at least honest . One that a person has to tour, as it is clearly not a level lot. IE of the approx. 8 acres…may be half are even useable ? Implies a lot of investment just to get it accessible by vehicle, ie need to create a driveway etc.
#10 ) Address:22080 LAKE COUNTRY DR, Hope Kawkawa Lake, Hope and Region
If you are looking for an affordable, beautiful location to build a home. Lake Country Estates is probably a location you should check out. Stone Village Homes has two lots for sale here. This lot is on a corner with an east facing back yard. Because it is the corner lot you have the potential to set the back yard up for all your toys or for whatever you need the yard for. Yes, even for the kids. Buy this lot and build yourself or have Stone Village Homes build you an attractive, affordable, dream home.
MY COMMENT: I think I drove by this recently. In a hot market, developers start to build these little subdivisions out in the boonies….aka affordable option. However, they generally cater to young couple(loonngg commute to work) or old couples…before they have to downsize. My view is these are not a good idea, better options will present themselves as the market correction occurs.