Boxing Day Bubble

Don’t Tell Me

That this, the Vancouver Real Estate market is cooling – on the contrary! If one listing is a story, then follow along, strap yourself in and hold on for the ride.

Snowman Globe

Building a Snowman

Friday – The First Snow Ball

  • 15:44 – Confirmation from Board that listing is entered into system
  • 15:50 – Begin uploading property pictures to system
  • 15:53 – 17:30 – Field 6 calls wanting to view property – Time to view => 18:00 (a testament to the power of MLS®)

At the appointed time agents and buyers arrive. Questions are answered, documentation is handed out and instructions with to respect to form of contract. Scheduled date and time to conduct due diligence are provided as is the date for offer (if any), presentations.

Saturday and Sunday – The Second Snow Ball

Further viewings accompanied by similar questions, answers and stipulations.

Monday Masochists – Making Sure it Will Stand

  • 09:00 None who viewed and expressed interest booked time to conduct due diligence.
  • 18:00 Further viewing requests are accommodated.
  • 18:25 Interesting but not unusual, one unrepresented buyer wants to submit offer under the auspices of dual agency. Though unadmitted, surmised is intent to gain bargaining advantage – a gracious no thank you if proferred.
  • 19:50 Viewings conclude – Scarf and Hat On

Tuesday’s Tale – Coal Lumps and Carrot, Lookin Good

  • 09:00 The first of 8 offers arrive via email and fax.
  • 13:00 Receipt of offers concludes and are forwarded to Seller for consideration.
  • 17:00 Seller has selected and accepted 1 of the 8 offers and accordingly advised selling agent.
  • 17:10 Accepted offer is received, checked for any notable changes and all required signatures.
  • 17:20 – 18:05 All offering participants notified accordingly in reverse order of presentation

Wednesday – Scarf Wrap-Up with Toque Topper

  • Successful Buyer’s agent confirms that deposit of 10% of selling price is lodged with stakeholder.
  • There is a deal in place!
  • Parties to the transaction are pleased with their decisions!

Strapped Up? – Inside the Globe

  • This is a 70 year old home.
  • It has 3 bedrooms, 2 large 1 much smaller
  • It is clean and livable but, in serious need of updating.
  • It is a back split with half a basement that would be difficult to make into a suite.
  • It has no particular features that are outstanding – it is a Plain Jane
  • It has a single car garage.
  • It is on a pleasant street with a pleasant outlook
  • It is on a large lot
  • It is located in the east of the East Side
  • Its location would not attain a high score for walk-ability.

Asking price $859K. Selling price $929K.

De-Briefing – Checking it Twice

The level of anxiety exhibited by the 8 buyers who made an offer for this property was extraordinary. The offer format while though relatively restrictive, phased no one.

From this REALTOR’s® perspective, the reactions were both surprising and fascinating. Not one single buyer exhibited anything other than glee at having the opportunity to buy.

This example stands in abject contrast to the many visitors to this blog who have touted and reasoned the collapse and destruction of the current real estate market. Many have projected its demise while fumbling hard answers.

Empirical opposition to those proclamations abound within this experience. It makes you wonder, can this single example be the real market? If it is, then it is clear, the market is obviously continuing its escalation and buyers are lining up. The question is why?

Why are people prepared to pay almost $1,000,000 cash for an eastern east side property? Surely the pundits of market catastrophe will shake their heads and ask are these people uninformed or simply irrational! Assumed is that they have read the warning signs – many contained herein at YatterMatters. Stumped by such boldness, curiosity asks what do they know that we don’t?

Real Reason – Confidence

Strapped to your chair do you still have doubts that cause you to question the real reason this property sold quickly and at an extraordinary price?

We sales types are attuned to body language and inflection. As you watch and listen to buyers you analyse the traits they exhibit. In this instance the range of characteristics covered immediate speculation to long term players. None left an impression that the purchase of this property would be their last – they were serious players. As well, an overall sense was that they accepted that there may be a change in market status at a point in time but, that change would not be for long and ultimately the future value would supersede it’s current purchase price. Notable was the confidence in this thinking – you could almost feel it!

Boxing Day Bubble – Non Fat, No Foam

If these questions and observations plague your thoughts then, it may be time to lighten up your holiday as you ready yourself for the New Year where you pledge to consider answers that are more esoterically bubblicious.

Being egocentric, and possessing just a touch of self deprecation, allow me to offer a suitable Boxing Day Bubble. The real reason for this short period-high sale has absolutely nothing to do with the noted observations. Proposed, is that the success of this sale instead had everything to do with certain REALTOR’s® superior marketing expertise. 🙂

Wishing you Happy Holidays!

Thinking of Selling your Vancouver home? Put on a cup of coffee and let’s talk.

About Larry Yatkowsky

Larry is a recognized real estate expert. A veteran professional, his experienced counsel leads Vancouverites in his west side community to place their trust in a man passionate about his work. Uncompromising ethics bring a balanced approach to realizing your real estate dreams.

When Life Moves You - contact Larry:

*Disclaimer: Statistics Courtesy REBGV. While believed to be accurate they are not guaranteed.
**Numbers provided may vary as they are dynamically posted by the REBGV.

Reader Comments:

Boombust Says:
December 27th, 2009 at 11:14 am

Tulip bulbs or houses. The end result is the same.

vreaa Says:
December 27th, 2009 at 11:46 am

GREAT post, Larry.
If it is okay with you, I will archive the majority of it at some point, it’s an excellent example of the current frenzied must-buy mood.

For my sober take on this and other factors, see “Prediction For The Coming Decade: A Real Estate Bear Market Will Be Vancouver’s Defining Social And Economic Event”, at –
http://tinyurl.com/y97ex74

December 27th, 2009 at 1:06 pm

vreaa – archiving – you building a book?? 🙂

Larry's Mom Says:
December 27th, 2009 at 4:27 pm

That is wonderful Dear.

Now, please come in the house, I hear the wolves howling at the gate.

Luv

Mom

December 27th, 2009 at 6:08 pm

Geez Mom

Don’t you remember – you sold the house at a speculatively high profit. The howling you hear is due to having the hearing aids on high. 🙂

Boombust Says:
December 27th, 2009 at 7:45 pm

Y’know, Larry?

It would be interesting to see the look on the buyer’s face when the market corrects and he/she/it realizes what they COULD have bought if they had only waited awhile.

Dumb is as dumb does, I s’pose.

Boombust Says:
December 27th, 2009 at 8:53 pm

Just think of it…

Worn, avocado green shag, tired, faded lino, a harvest gold washer/dryer combo, cracked, peeling dark blue walls, ugly exterior stucco, a sagging front portch…

Ugh.

December 27th, 2009 at 10:34 pm

bOOmbust

re seeing their face. – There are green pastures on either side of the fence. It’s a matter of perspective.

The house was actually quite livable. None of the charming ‘ugh’ negatives you describe. You may not like green toilet fixtures but considering what the purpose is, does it matter.

While there were no granite counter tops or slate floors I will say it had the best workmanship I had ever seen performed on cabinets. Not my taste, not your style, but damn there were well built. Dated of course!

Chris Taylor Says:
December 29th, 2009 at 9:49 am

People who buy $1M houses are different, despite the skeptics saying otherwise. They either have very high incomes or very high downpayments, both of which will protect them from any coming problems.

The blog focuses a lot on detached houses and we forget the first time buyers of $300-600K condos.

How are they faring this holiday season?

December 29th, 2009 at 10:08 am

Chris,
“blog focuses a lot on detached houses” – true that is. it’s a matter of choice and easier parking 🙂
.

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