“The woman suggested to the realtor they list her Westside home at assessment value to start. No way said the realtor, they told her 200K below assessment was much closer to market.”

“I was at a function on the weekend and spoke with a woman who just listed her West side home. She had just met with one of the ‘Super Star Realtor to the Stars’ (which is another sign of how nuts this place is).
The woman had suggested to the realtor they list at the assessment value to start. No way said the realtor. They told her 200K below assessment was much closer to market.
What is fascinating in Vancouver is that the common belief is that the assessment is lower than the actual value. This, of course, helps us all stomach the high taxes. Except in many cases it is obviously not true or at least not true anymore.”

Junius at greaterfool.ca 27 Aug 2012 9:55am

Throughout the mania it was indeed ‘common knowledge’ that properties were ‘worth’ more than ‘assessed value’.
We’ve noted, too, that this has now changed.
– vreaa

29 responses to ““The woman suggested to the realtor they list her Westside home at assessment value to start. No way said the realtor, they told her 200K below assessment was much closer to market.”

  1. The story sounds about right to me. Last week we set a new recent low price point where a 50×120 lot in Kits sold for about 1.47. Assessed at 1.75, which was under the original asking price. At the peak, we would have seen close to 1.9.

    I would say that used non-view properties are all selling below assessed. It is typically 5-10% now in Vancouver v. 10-20% in Richmond.

    As an FYI, the August market has brought to us the stopping of sales in West Vancouver. Strange however that unless we can get down to 19 units this month (current projection is 22), the sales will still be over 2008. We do however now have close to 550 listings and this gives us MOI of 24.

    You know we like to bash Used House Salespeople (UHS) but really, it is owners who have denial sometimes and a smart UHS will tell the owner the correct price on listing. If I was a UHS (Note- you saw this acronym here first) I would not take listings for units where the owner was not reasaonbel with asking price and had unrealistic expecations that went against the market.

    • “Used House Salespeople”

      I like this. I like this a lot.

    • @YVRHousing endorses UHS

      “it is owners who have denial sometimes”

      I would humbly suggest *most times

      • Burnabonian blesses UHS

        Someone fire up photoshop and kick this meme into high gear


      • I WholeHeartedly! “Ditto” that, ZurichHighFlyer… Albeit, something a tad ruder would have been even more pleasing. Especially if so abstruse that UHS didn’t ‘get it’…

        PS – It’s Nem’s BDay next week… Accordingly, organizing some entertainment for the soirée is pretty much up there on the impending ToDos… Hmmm…. Yes!!!!

        [NoteToIllustriousEd; Chubster; Dr. J… Do you approve? Oh yes, Paul S. – if you would be so kind, would you consider that to be an astrologically propitious/auspicious choice [from a MonkeyKing’s perspective]???

      • hmmm let’s see … born labor day, conceived new year’s eve … well, that explains everything … sir_nem, you arrived pre-approved … but i recommend an accordion … and some of this … http://tinyurl.com/258dvht … + optional viewage supplement … http://tinyurl.com/cprenhq

      • Thumbs up to UHS! It’s a keeper!

    • I talked to a used house salesman at an open house in West Van. He told me that the price was reduced twice already and is down 20% from original asking.
      He also said that I would have to be crazy to buy in today’s market.
      Then he started complaining about all the Chinese that have moved to WV in the past few years and are changing the character of the place where he grew up.

      UHS’s have a lot of frustrations these days…

  2. List it low, chances are it sells faster and agent gets her commission sooner.

  3. My dad still thinks he can get 1.2-1.3 for his 25 year old newly renovated Killarney home, assessed at 1.1m this past cycle. I laughed at him and he told me Killarney is a great neighborhood and won’t drop, unlike areas of van east like Fraser and main and the overpriced west side areas. Talk about drinking your own kool aid

    • “It’s different here” used to apply to all Canada. Then to Greater Vancouver… then to Vancouver city… now applies only to “my” neighborhood…

    • A 50 footer will get him that price. Maybe not in a few months though.

  4. 4SlicesofCheese

    Visited the parents house and an open house down the block from their place over the weekend.

    1.99 million a 65x 184 lot

    Even if they could split the lot in two the numbers do not work. New builds on smaller than standard lots do not get 1.3 each and that is cutting margins razor thin already.

    If the realtor set the price he is delusional, if the owners set the price I would never have even taken the listing.

    • As delusional as that is, a 6000sqft lot in the same area (and also close to where I live) sold for $1.039 a couple of months ago. Listed for $899K and it apparently had almost 10 offers… It was sold to a developer who is going to lose a laughable amount of money on this one considering a 4500 sqft nicely built 3yr old home with 2 suites across the street has been sitting at $1.8 million for the last 18 months with no sale.

      To build that home would cost him $800K bringing his total cost to $1.84 million for a home I doubt he will get $1.4 million for by the time it is done.

      Lots of over leveraged developers are in the process of getting wiped out and they don’t even know it yet. Popcorn time!

  5. Renters Revenge

    Uh oh, property tax revenues about to take a big hit. Time to get rid of the homeowners grant.

  6. How about taxes for:
    1). flipping properties
    2). unoccupied properties

    Or a Land Value Tax.

    These are worthwhile suggestions from many points of view, as far as I know.

    • symptoms not cause … root pb is credit bubble – if you prevent it going one place, it will just go make the mess elsewhere … there are unintended consequences for those taxes – eg. could, in principle, starve investment/development when it would be needed … until something sticks a fork in easy credit (generically, not just RE), expect … well, you know

  7. @zrh2yvrh And that $1.47million for a Kits lot is still hideously overpriced.

    @brian, might want to have your dad compare the Main Street vibe to that of Champlain Mall 😉

  8. Carioca Canuck

    I just spent a week in YVR on business. Stayed @ the Holiday Inn Express in Richmond and worked at a client’s office at Cambie and W.Broadway.

    Last time I lived in YVR was mid 80’s for 2 years in New West…….and I commuted downtown to 666 Burrard for work.

    We had 5 days of sun in a row…….wow !!……but even that could not have convinced me to want to move back if I won the lottery, or had the perfect job offer. Seriously………no way in hell would I have done it. After commuting in my rental twice a day the disease knwon as “DWA” was too much for me to bear.

    Stereotypes exist because they are true.

  9. MLS listings in Quebec will be assigned RANDOM numbers (as opposed to the current method of them being consecutive). This means that buyers will no longer be able to “guess” how long a property has been listed. Is this happening here too?

  10. 666 Burrard… guilty as well.. geez has anyone not worked in that building…LOL

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