“They are shocked/angry that there was no bidding war. They were hoping for $3.7M, they had some offers around $3M. They are now taking it off the market to relist when the market improves.”

“My best friend’s hot sister’s boyfriends’s parents listed their Vancouver house three months ago. They are shocked/angry that there was no bidding war (they were hoping for $3.7million at least, they had some offers around 3 million).
They are now taking the house off the market to list when the market improves and they can get what the home is “worth”, at least in their view.”

‘Happy NOT to be Smoking Man’ at greaterfool.ca 31 Jul 2012 8:43 pm

Next year they’ll be rejecting offers of $2.25M and wondering how they could have passed on the $3M offer. And so on.
– vreaa

32 responses to ““They are shocked/angry that there was no bidding war. They were hoping for $3.7M, they had some offers around $3M. They are now taking it off the market to relist when the market improves.”

  1. In these types of markets, your first offer is your best offer.

  2. Reminds me of this clipping I had from The Financial Post 1965: http://postimage.org/image/qsgnmbsvb/

  3. “best friend’s hot sister’s boyfriends’s parents”

    I think I know them.

    • actually, we’re shocked/angry that our son’s hot girlfriend’s brother’s best friend blabbed to everyone we were hoping for $3.7M … that’s why we pulled the listing

    • That was the most interesting part of the submission!

  4. pricedoutfornow

    haha…hilarious!

  5. Awhile back I posted my experience (as a RE agent in Los Angeles in the ’80s) of the seller who chased the market down. The problem is that sellers fixate on a figure they believe their house is worth. While they were thrilled by the ride up, they are sickened by the fall. But it is after all a market and your house is only worth what someone will pay.
    BTW speaking of LA many of the gorgeous mansions of the late 20s fell out of favour during the GD and literally could not be given away as their upkeep was too expensive. That could happen again.

    • pricedoutfornow

      I could see that happening with a lot of condos. The strata fees are so high in some cases, plus the maintenance required. I’ve been following one condo for sale in New West for about 2 years, V943543, the price hasn’t dropped much and yet they persist. It looks quite reasonable when you consider how big the unit is, yet the strata fee is $541/month. And the realtor admitted to us at the open house that a lot of work needed to be done on the building in the near future. ($$$$).

      • 4SlicesofCheese

        That is a 7 year old building? My god that building looks ancient.

      • There are some condos in Toronto where the strata fees are $800/month … years of underfunding and delayed maintenance … just a matter of time before it happens here?

    • Similar the 8-bedroom 4-bathroom McMansions, utilities+maintenance must be high, keeping warm in winter. Also where are the demographics supporting those ?

  6. LS in Arbutus

    Seriously and really, who can afford $3.0 million for a house? Not too damn many. And how many SFH are now listed for > $2.0 million? More than not…. and how many can afford a $2.0 million house? Seriously, it’s what one would call a “no-brainer” that this market can’t last. Particularly when 10 years ago, NONE of it sold for more than, what? I don’t know, average price was probably about $350,000…..? Anyone have that stat, 2002 average price for SFH on the west side? I’d say about $350,000 to $450,000….

    • Lots of fresh air between current prices and a price floor determined by fundamentals. We wouldn’t be surprised if some houses now at $2.5M-$3M-ask will end up changing hands for <$1M in the trough.

      • LS in Arbutus

        Agree. It’s going to be damn terrible for some families and honestly while it has to correct, I, for one, already feel sorry, very sorry for a few people who have bought in the past 6 months. They will likely lose > $1.0 million. Who can afford to lose $1.0 million and not feel SICK about it for the rest of their lives? Not many.

      • Yes, LS in Arbutus. But I would go back further than 6 months. Anyone who bought in the past 6 years (or longer) is going to feel the pain. This bubble arguably started around 2003/04. Prices have a loooong way to go down.

    • In 2001, we looked at an old SFH in West Point Grey on a rare 50 ft lot that was listed at 550K. That same year, one of my coworkers bought his very nice house in Mackenzie Heights (also a 50 ft lot) for 650K. Further east on the west side there were many nice homes listed for 425K back in 2001. Marpole homes were generally listed around 350K back then. So over the course of 10 years, westside home increased by a factor of 4. In other words, home prices doubled every 5 years.

      • LS in Arbutus

        I agree El Ninja, wholeheartedly. I guess it’s just that the prices rose to more and more spectacular prices in the last few years, particularly the last year. And thanks for the price checks Airedales. We bought our house in Sept 2002, in Arbutus for $470,000. One of the cheapest on the West side, 40 years old, needed a lot of cosmetic work, 33 by 122 foot lot, but structurally sound. We sold it in Jan 2011, for $1.240 million. Maybe we spent $20,000 in painting, new roof, nothing that significant and some TLC. I guess if we had of waited 6 more months…. it would have topped out at $1.5 to $1.6 million? That’s what I mean about the last year, it just kept going… to more ridiculous heights. And btw, I am totally happy with my choice to sell and the price we got. To me, it wasn’t worth over $1.0 million to stay, and the writing’s been on the wall since 2006 forward this market was overpriced. (We still rent on the west side.)

      • LS – what a beautiful trade! -while collecting full utility of living there! And I thought a half million for a knock-down was too much back then. My SIL made a quick million (7 yr hold) on their place on the westside only to watch the buyer flip it for another million two years later. Similar houses were priced over $3 million last year – what a blow off top! – and to think that some people still can’t see the bubble!

  7. People always thought the money from China would keep flowing. But the truth is Vancouver is nothing special to the Chinese. They much rather be in the US. Fact. Canada is always known as the second fiddle, for those whose kids are too dumb to make it to a US school a la Harvard, Berkeley, Stamford, etc.

    Now with the Chinese economy faltering, where is the money going to be coming from? There is a 2.1M new house in Killarney selling. No local will buy a house for that much in Killarney, sorry. Investors have moved on from Vancouver. It’ll take a while for RE agents, the media, and sellers to realize that Vancouver is nothing special, that we were one of many girlfriends dumped by the popular boy in school

    And I say this as a homeowner of a west side house bought in fall 2010. Fall baby fall, so I can finally upgrade and rent out my current place.

    • I don’t get it – are you trying to dollar cost average your west side houses? Why not sell your current house if you think prices will fall?

      • I have enough money to refinance and rent it out in a few years rather than sell because I know it won’t sell. I don’t need to upgrade now because we are happy where we are

      • Hal -> Brian appears to be saying that the potential downside on his westside house is a small enough percentage of his net-worth as to not make it worthwhile for him to sell now (at whatever price the market gives him) and then upgrade by buying later at lower price levels. There is inconvenience and timing necessary to go through all that.
        Some people are in that position, but they have to have considerable net-worth to make it so. For most citizens, a $500K-$1M+ windfall/hit is very significant.

      • My house will not sell for what I paid for it in 2010 plus commission, taxes and lawyer fees. I am under no illusion that I have lost money on this property that my wife and I call home. I can put this on the market tomorrow but given that for sale signs have dotted my neighborhood for months at prices about 10 to 20% higher than what i believe were fall 2010 prices, we would have to price our place at a significant loss before it would sell. Lucky for us though, we are young. I’m 32, my wife is 28.we are thinking of having kids soon so we will need to upgrade eventually but probably not for at least five years, and by then I have a feeling prices will fall quite a bit considering that I believe real estate is over valued by 50 percent at least (SFH) in this city. I’ve lived in major cities across the world, including NYC, Chicago, San Fran, and my gut is that Vancouver does not compare. Chinese investors have moved on. Local incomes can’t support the prices. Rents are ridiculously low in this city for a supposedly “world class city”. My wife’s parents rent a 2br in a neighborhood in SF much like the east side for over 3k a month. I have friends renting a 2br in a new house on the west side for 1700 a month in Vancouver. If people really “wanted to be here” rents would be through the roof, like in SF and NYC.

        The market doesn’t crash overnight. Prices won’t drop overnight. But as sellers become desperate as they need access to their cash, prices will eventually fall.

    • Or one could just drop $1M for a tear down listed on 41st Ave in the same neibourhood by a realtor with a name I just can’t pronounce for the life of me!

  8. Here’s an interesting comment, didn’t know exactly where to fit it. Effects of RE mania ?

    Comments ThomasSmith

    2:33 PM on 7/26/2012

    ” ….It’s too late to start “worrying. The ball was in motion several years ago. ” A friend in the film biz said he was hearing grumblings from location scouts that it was getting harder and harder to find unique and interesting locations because Vancouver was becoming just like every other city of glass and predicted in a few years film would head to Toronto, etc. He was right. … “

    • As to the film business, condomania has made it virtually impossible to film downtown as there are few surface lots to accommodate all the required support vehicles. And the ones that are left charge extortionate rates.
      As to the gaming article, just shows the futility of trying to buy business with tax breaks.

  9. Just came from DQ where I got a take-out burger. While there in line making my coffee I met an elderly lady and her husband and to we got talking about home prices and the economy. She was surprisingly tuned in to what is going on and I was not expecting that. Nor was I expecting her vocal comments that were overwhelmingly bearish. She told me she has seen this all before. She was born in 1924 and remembers the problems of the past clearly. The odd thing was how polite she was and the small voice she used. I mean to say she was physically tiny but also that her voice was hardly carrying over the noise in the restaurant. She said “nobody saves anymore….they get it all for free”. And then she added “pretty soon all the smiles will fall off those peoples faces. I have seen this all before”.

    • Wise words.

      • Only problem is that nobody listens to little old ladies. The opinions of the elderly carry no weight whatsoever. I think that is where a lot of people have gone wrong. They don’t consult those with experience, preferring instead to accept the wisdom of fools, charlatans and commission sales people.

  10. My bank called the other basically begging me to increase my credit card limits, add a higher limit to my line of credit, increase my over draft amount, etc, etc. They were really aggressive and dismayed when I mentioned I don’t need any cheap money. Had to hang up on them just to shut them up!

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