$9,000 off a $430,000 asking price is NOT a reduction, it’s a rounding error. The 2% is barely statistically significant, the buyer is effectively paying ask. The article cited below makes out it’s a big deal, and turns out to be a puff-piece trying to keep buyer interest buoyant. As listings rise and sales stall or drop, buyers will find out that ‘low-ball’ offers start at 20%, 25%, 30% below asking price. BC MOI is 9.3 months and climbing. If you absolutely have to buy, wield a big stick. – vreaa
This anecdote from an article by Derrick Penner, Vancouver Sun, 15 July 2010 -
“When Maple Ridge’s Monika Novosadova went house hunting this spring, she faced an embarrassment of options looking at 28 homes before coming putting an offer down on a three-bedroom single family home at the end of June. And it was a shrewd offer since, like much of British Columbia in June, she faced a buyer’s market with rising inventories and declining sales putting home-hunters more in control.
“I felt I had cards in my hand because it was a buyer’s market,” Novosadova said in an interview. “And I felt fairly confident the price could be negotiated down.” So the single mother wound up getting the house, in a “perfect family neighbourhood” for $421,000, not the $429,900 it listed for. Now she’s excitedly looking forward to moving into the home with her 10-year-old daughter in September, and her realtor Ron Antalek said Novosadova’s experience is typical of what other buyers are facing. “There’s not the necessity of multiple offers and competing bids,” Antalek said. “People are able to shop. They have time to compare.”
From the same article:
Across B.C. in June, realtors recorded 7,722 sales, down 22.5 per cent from the same month in 2009. Active listings in inventory, climbed almost 21 per cent to hit 59,232 units in June, which equalled a 9.3-month supply based on the pace of sales. [9.3, where have we seen that number before? Oh, yeah, it's also Vancouver's price:income ratio. - ed.]