“By the time they listed, buyers were no longer competing for the privilege of overpaying. She accepted the fact that her condo just wasn’t worth what she had hoped.”

“Last summer, having surveyed their local real estate market, and finding themselves spooked by deteriorating prices, Rheanna Mushet and her husband, Justin, decided to sell their Burnaby condo. “We wanted to cash out,” Mushet says, adding that they may end up living in her parents’ basement for a while as they wait out the downturn in the Vancouver market. “We’re going to make sure we get the most for our money. There’s no hurry.” She only regrets not acting sooner. By the time they listed, buyers were no longer competing for the privilege of overpaying. For six months, the Mushets waited for an offer and showed their condo to prospective buyers who seemed to be almost looking for a reason to pass. “They were very choosy,” she says. “‘It’s not on the right floor. The ceiling’s not high enough. There’s a stain on your carpet.’ Just the silliest things that before wouldn’t even be a consideration.” They finally agreed to sell for $22,000 below their original asking price to the first person to make an offer. She accepted the fact that her condo just wasn’t worth what she had hoped. Many other sellers are soon going to have to come to the same realization.”
– from ‘How low will house prices go? Prices are headed down for the long term.’, Tim Shufelt, Canadian Business, 17 Jan 2013 [hat-tip Cyril Tourneur, Anon and CanAmerican]

17 responses to ““By the time they listed, buyers were no longer competing for the privilege of overpaying. She accepted the fact that her condo just wasn’t worth what she had hoped.”

  1. So did they know they could have sold more quickly last year or are they assuming so based on media reports?

  2. I wonder how much they made on their condo. Sure they didn’t get the price they wanted, but what was the affect of riding the biggest bull market in vancouver real estate history? If they bought in 2007 they probably lost money. But if they bought in 2001 they may have made hundreds of thousands of dollars sitting on their fat asses.

    And now they’ll be bottom picking like the bears. Except that they’ll have HUNDREDS OF THOUSANDS OF [expletive deleted] DOLLARS more.

    • So, you are making this point: Selling in the vicinity of a top in a speculative mania allows a small percentage of market participants, usually by virtue of little more than good fortune, to profit.
      But how is this observation helpful?
      We can’t go back to 2001 and buy, can we?
      You seem to be advising owners to sell, and we’re completely with you on that.

  3. I’m always amazed at people’s ability to nitpick and disregard a property on really the little things they could easily change – color of cabinets, walls, bathroom, etc, and yet totally ignore important things that they can’t change – building condition, strata management, house/TH structure and construction quality, etc.

    • My ex once refused the most awesome house because she didn’t like the closets! The place was a bargain with a great yard. She was not persuaded. That was when I learned the true meaning of a “personality quirk”.

    • Real Estate Tsunami

      Remember they are “Property Virgins”.
      They will have much to learn on their move up the “Property Ladder”.

  4. “They were very choosy,”…

    Indeed. ‘Choosiness’ is the new black, you know… Could be worse though… SantaMonica, for instance.

    DearReaders, your FridayMorningZen and Quote ‘O TheDay:

    “It’s under-built for the neighborhood! The kitchen is nothing! Two words, it’s not functional, and it’s not for modern living.” – Anonymous LAX WestSide SpecBuilder Couple

    [LA Times] – Home sweet home or merely a teardown? – On the Westside, what one person might see as a gem of a house, another sees as an obstacle in the way of a gargantuan new dwelling.

    …”Judging by the number of empty lots on the Westside with cranes idled over piles of dirt, the teardown phenomenon is also revving back up. This comes as no surprise. The reasons for teardowns are simple: Somebody thinks they can make more money or live better by knocking down a house and building a newer, bigger and shinier one. Way bigger: many of the new houses are gargantuan, built out as close as they can get to the lot lines to maximize resale value down the line.

    What was eye-popping were the prices people will pay for the privilege of ripping down a home. One Brentwood fixer-upper featured misbegotten design choices such as square bathroom tile in a light mauve and a gaping Jacuzzi tub. The fireplaces in the living room and bedroom were hung with rusty chain curtains, and mold was growing on the garage ceiling. It was listed at $1.5 million.

    “I hope that comes with a bulldozer,” said one viewer.”…

    http://tinyurl.com/9wv2zk3

    [NoteToEd: One wonders – given the globalizing tendencies of the larger dynamic driving the TearDown phenomenon and its ebullient adherents – just how widely diffused has the spectacle become?… Are the more ‘enterprising’ nomadic Mongolian pastoralists purchasing and demolishing their neighbours’ Yurts? Do they ‘lord about’ on lavishly upholstered, ornamented yaks while consulting their SmartyPhones? Do they have StretchyYogaPants?]

  5. It is nearly impossible to get the top or bottom in any market, The fact is these two are smart enough to put their emotions aside and sell. Most investors do not know how to do this.

    Good for them.

    • For real estate, unfortunately, you never really know how much your house is really worth until you put it on the market and hope that you price it right and someone is willing to bite. Greedy sellers in this market, pricing their property well above what someone would pay are stupid. Even though assessments can help in pricing, as we have seen, many properties are not selling even when priced below assessment.

  6. At least they followed the “your first offer is often your best, and only, offer” advice that many vendors ignore.,

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