Tune My Accordion
Posted September 2nd, 2010 in Real Estate, Sharing the Experience | 
Humbled
On my about page I state that YatterMatters is ‘a place where everyone knows something but nobody knows everything’.
Well…this is one of those humbling moments where just when you think you know something fate rises up and slaps you across the head to tell you know less than you thought.
Case in point, a small postwar house in sad repair on East 59th!
Feathers
In the past few posts I’ve been going on about how a cute, pretty, well maintained, ready to move in type of house are selling briskly and often above ask in this current overpriced, low sales, buyer-less market. I also have said that the remaining product could be catagorized as a bit more trashy, are usually overpriced and will sit for a long time at their current prices which I believe are in need of adjustment.
Now based on this one listing I have to eat those feathers that helped me fly so high. But before I do, I qualify that flight by saying that while marvelous it was very short.
7 Days
I saw this house on an agents open last Thursday. None of the lights were working so I helped the agent figure out that one of the breakers was off. We presumed the sellers had turned it off so as to not waste electricity heating water when no one was living in the house. As it was an estate sale, having the hot water shut off seem perfectly normal. Problem was that all the lights and the hot water tank were on the same circuit.
The asking price was $749,000. It was a post war home build in the 50′s. Many had been built and they all look exactly the same. This area – Vancouver Fraserview, has a number of them remaining in various state of repair. Notable is that there is one across the street that was a grow-op recently put out of business.
This one has a south facing lot with true view potential of Georgia straight and Vancouver Island’s mountains. It is situated on a 47 X 113 lot. Structurally the house wasn’t too bad but, all the rooms as was the fashion of the day, are small and while it might be fun to try and make something out of it via renovations, you could never get the sense of space we hope for today’s homes except if you are building a lane-way house.
Mechanically it was pretty sad. A lot of home handy man alterations had been done over the years including the barely functional bathroom in the almost empty basement. The fir floors had all been painted a dark depressive brown. The wooden wall panel was very dating and served only as another example of how our foresty industry reinvents itself to sell us stuff that really has no lasting value. A massive very overgrown cherry tree occupies the rear yard.
The Slap On The Head
I would ask you kindly to forget what I said! This house sold on Monday – 7 days after it was listed. The slap on the head is deserved as this property drew six highly competitive offers. Two were over asking and it sold unconditionally for $762,000.
Slow market! Trashy listings! No buyers! Over priced! We all agreed right? But, is this sale one of those statistically irrelavent indicators that soon coalesce before our eyes to establish a change in market condition?
Forget what the numbers tell you – remember, they are historical. We might just be at the beginning of a change!
At this point, all I know is that it is enough to make me want to retune my accordion!
Can you IMAGINE driving up to THAT for THAT price?
“I’m home! What a great day to be alive!”
I can’t stop laughing…
Oh, and that wheelchair ramp WILL come in handy. After a LIFETIME (and then some) of paying for that dump, you’ll be needin’ a chair, for sure.
@boom
Glad this little story made your day!
Actually there will be a new house on it is a short time and with the sq. footage of the lot it will be a big one. It’s the land that holds the value. Homes like Realtors® come and go. But I admit I was surprised at the aggresiveness of the offers.
As for paying for it I think many of us fail to realize or acknowledge that there are many many people who have a lot of money in this town. That can no longer be underestimated.
If my employer gave me a huge unprecendanted, not supported by fundamentals, raise, because my skill set was in demand, would I say to him…nope its an employment bubble?
My condolences to the new owner.
@meth
hey it’s a great piece of dirt and he owns it. Nothing wrong with that.
“The slap on the head is deserved as this property drew six highly competitive offers. ”
Cool. 1 down and 5 to go. We are almost out of fools soon.
t
“…hat there are many many people who have a lot of money in this town”
I’m not so sure about that. Larry.
I think Jacquie Cohen of the Army and Navy chain is about as ritzy as you’ll ever get in this town.
@special
slap on the head – that’s my point!
WHAT IF SOME AMONG US ARE WRONG who will be the fool then? I for one felt foolish for not grasping the pulse of the market in that neighbourhood.
We stand back and say that something can’t be done or will not achieve a certain level.
Did we think Vancouver would reach $1mil hell no – but it did.
Twenty years ago when I bought my house I thought I bought at the top. I was wrong then and could be wrong now.
MAYBE to quote BTO – Bah Bah Bah Baby – We Ain’t Seen Nothing Yet
@Boom
LOL! exactly how many pairs of shoes do you have?
“WHAT IF SOME AMONG US ARE WRONG who will be the fool then”
Apple stocks were $50 5 years ago. Does it make all those that did not buy the stock fools? Not necessarily.
However, those that bought Nortel stocks over $100 dollars were fools. Crap, I think I got fooled for a thou or two.
Boombust said “I can’t stop laughing…”
hoho…hoho…hoho… I can’t stop crying.
“Actually there will be a new house on it”
Lot value only. Any other teardowns on similar lots being sold in this area? I’ll be interested to see if this is a flip job or owner-occupied.
As a former Wall Street banker in mortgages, let me just say that, unequivocally, there will be an abundance of homelessness and foreclosure-related suicides in the next decade once the prices drop from the stratosphere to 6 feet under the ground.
Sad, very sad. Will you be able to look these people in the eye when their $762,000 shack is worth $150,000 in 2015?
@bear
you’ll find tissues in the drawer
@jesse
i gathered it was to live in. however, as you know things change
@former
well aren’t you just the bearer of good news.
As a Former Wall street banker presumably retired on the bonuses received, were you one of the righteous ones who lent money to people with no income and no hope of ever repaying the loan. Are you one of those guys who peddled bullshit dreams to people who trusted you.
You must have me confused with some of your cohorts. Buddy – it sounds to me like you are the one who has problems with your image in the mirror!
To answer your question – ABSOLUTELY!!! Unlike you I don’t screw clients or the system for personal gain. Stop wasting my time. Spend what little you have left in your search for integrity.
“were you one of the righteous ones who lent money to people with no income and no hope of ever repaying the loan. Are you one of those guys who peddled bullshit dreams to people who trusted you. ”
A little defensive arent we Larry. I think Mortgage brokers, realtors, flippers and speculators can be equally blamed for the peddling of bullshit at hand here.
@N2V
defensive – get a grip. He asked a question and it was appropriately answered.
Larry,
Regarding your comments to @former, a well-deserved rap on the knuckles I say.
Cheers,
Bob
Isn’t this just a tear down? Does it really matter at all what the state of the house is?
Price is stupid, yes, but is someone actually going to move into that house? not a chance.
@rf
did it have granite counter tops – not a chance. did it have italian marble on the floors – not a chance. It have a good roof, the electical would be in good shape with minor adjustments – the bonus – no knob and tube. Could you live in this place absolutely!
Not to lay it on too thick but it would take some work, some paint, a floor sander, a new hot water tank, my guess $35 to $80K and you would have a great 2 bedroom condo with a basement suite that generated cash flow, a gulf island view and a lot big enough for a pool. Sure it wasn’t PRETTY but the bones were in good shape. Someone with a bit of imagination and the willingness to get their hands dirty could have turned this little home in some good living space.
It’s only a guess but I suspect the roadblock for many is that they can’t accept that they all want an instant ready made Martha Stewart home but don’t have the money to pay for it. Bottom line – you need to make a pot full of money or you need to make some money and do the work yourself. I don’t know anybody who said owning a home was easy.
“As a former Wall Street banker in mortgages….”
Hahahhahahaha…thanks for a good laugh.
Well said Larry!!!
But how do the numbers even remotely work on this property? Back of the napkin, 25% down, ~$600K mortgage (3.5%, 35 yr am) with low end renos included. With tax and stuff about $2000/month carrying cost (no principal payment). Let’s say $1000/month rental income in the basement. So $1000/month for a 2 bed shared house in East Van? Factor in opportunity cost of down payment, say $500/month ($200K earning 3%). So we’re talking about an equivalent rent of $1500/month. Pretty sure you can rent a similar ‘upper suite’ for far less than that, say $1000/month. So a $500/month ownership premium, with the risks of future rate hikes and having to become an amateur landlord. Hmmm.
@purp
all true including the Hmmmm. The curve ball assuming all things being equal in a few years, is of course if you sold it for what you paid plus all costs wouldn’t you have lived for free.
what is the exact address of the place? I’d liek to see how far off assessment it sold for
@li8r
over 150k difference
I guess I’ll drive by myself for the address. Thanks for your “help” Larry
@l8rdude
scroll down the net number was there for you all along.