“The house above, at 2556 Trinity Street, frame covered with a coat of stucco, was built 60 years ago. It has two tiny bedrooms, one bath, contains just 940 square feet and is butt-ugly. It was listed in March and sold in two days to a realtor who paid $773,000. Now it’s back on the market, this time aimed at Asian buyers – at the ‘lucky’ price of $888,000. That’s an increase of 15% in 75 days, and multiple offers are expected. Says blog dog Doug: “It’s one thing for Joe Public to be speculating on real estate, but when realtors are effectively buying and selling to each other pocketing the commissions or cutting them out completely while inflating the price adds another level to the pyramid and one more ball in the air.” - Anecdote and opinion from Doug via Garth Turner at greaterfool.ca 15 Jun 2011
One thing that I haven’t seen discussed much here is appraisals. Are appraisals required in Canadian real estate transactions? If so, is it your impression that there is fraud in that industry? For instance, how can one get an appraiser to sign off on the “fact” that this home is worth 775k one month, and $888k the next?
Of course, we had this same thing in the US. Some appraisers were participating in outright fraud, colluding with buyers and/or sellers to rip off banks. Others were just caught up in the ridiculousness like everyone else.
http://www.century21.ca/Property/BC/V5K_1E3/Vancouver_East/Trinity_Street/2561
Similar home across the street from the one at 2556 Trinity now on sale for $888,000. That one sold for just over $300,000 in Feb. of 2002. Tell me how these price increases can be justified. That is almost triple the price in 2002. Strange how on the latest listing that they show a previous price of $1,250,000 when in fact, it sold for $773,000 to the current owner/realtor. This same thing was going on in the early 70′s before it all came crashing down in September of 1974. Minus 30% within a few weeks from the topping that summer. This is going to be even more catastrophic. Many realtors got caught holding several properties they couldn’t sell back then too. Good luck to them finding a greater fool. It seems they are still out there lurking in the bushes.
“Strange how on the latest listing that they show a previous price of $1,250,000 when in fact, it sold for $773,000 to the current owner/realtor. “
is this legal?? what a shyster industry