3 tips to sell your house in a falling market
There are a huge number of houses and condominiums for sale in Vancouver and the Lower Mainland with fewer and fewer buyers who have the desire and/or ability to buy. Recently we got the alarming news that in the first 12 days of November not a single west side Vancouver house was sold out of 968 listing.
So how can you make your house, townhome or condo stand out from the crowd and snag a buyer that still has access to credit?
There’s a saying: you can’t make money without spending money. So with that in mind we offer the following tips to increase foot traffic at your open house and sell your Vancouver property in a falling market:
1. Paint your roof gold. This will really make your house stand out amongst your neighbors, particularly if you use real gold-leaf, not that cheap fake gold stuff.
2. Hire underwear models. Want foot traffic at your open house? Hire a few underwear models to lounge around the yard and entry way.
3. Offer free beer and weed. Or if you want to be family-friendly coffee and cookies, etc, but the underwear models will prefer the beer and weed.
If these techniques don’t work for you, the market may have gotten worse. In that case you have two options that may still work as a last resort:
A. Pray to the money god for a buyer with great credit and a lousy eye for value
or
B. Lower your price.
Hey, it just might work!
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November 18th, 2008 at 6:59 pm
You might also try building a moat around your property house to keep it isolated from the economic realities beyond.
November 18th, 2008 at 7:20 pm
-
Price of Southern California homes falls 41% from peak
November 18th, 2008 at 7:26 pm
Mr. Pope I am truly disappointed with you.
You left out something which is a cardinal sin to omit, and that is to have a statue of Saint Joseph, the patron of real estate.
http://www.luckymojo.com/saintjoseph.html
Just what kind of a Pope are you?
“PREPARATION: This spell is used to make a home or other property sell quickly once it is listed on the real estate market. It is up to you to see that the premises are clean and that the asking price is within market value. In addition to the items here, you will need a picture frame for the print (it is 8″ x 10″ and fits in a standard frame) and a trowel to dig. If the property has no yard, you will also need a house plant in a large pot.”
November 18th, 2008 at 7:35 pm
PS: Just to show the bears have class, let’s post the prayer on Maggie’s and Rob’s blog at no charge!
PRAYER TO SAINT JOSEPH FOR SELLING A HOUSE
O, Saint Joseph,
you who taught our Lord
the carpenter’s trade,
and saw to it
that he was always properly housed,
hear my earnest plea.
I want you to help me now
as you helped your foster-child Jesus,
and as you have helped many others
in the matter of housing.
I wish to sell this [house/property]
quickly, easily, and profitably
and I implore you to grant my wish
by bringing me a good buyer,
one who is
eager, compliant, and honest,
and by letting nothing impede the
rapid conclusion of the sale.
November 18th, 2008 at 8:20 pm
V A N C O U V E R
R E A L E S T A T E
N E V E R
G O
D
O
W
N !!!!!
November 18th, 2008 at 10:03 pm
If a person wanted to sell tomorrow, what price should they list at?? I know everyone says “low” but what does that mean? 10% less, or 15% less than peak? What would you say is the discount factor for a near-new westside townhouse?
November 18th, 2008 at 10:03 pm
*sigh*… there were 7 detached properties so far reported sold in the first 10 days of November. That number will likely rise. Still not great but certainly not a big fat doughnut.
Why the discrepancy? Because Larry reports way too early. It takes time for offers to be accepted, subjects to be removed, and then sales to be reported to the board. There are only two ways to report sales: Hotsheet sales (those reported sold that day and referring to some day in the recent past) and Date of Sale (which then you really have to wait to get them all in and really is not as accurate.
When you get a really scandalous and shocking piece of data like “no sales in the first 12 days” or “only two sales last week”… double check on your source. They may be right but, well, aren’t always.
November 18th, 2008 at 10:09 pm
I hope real estate prices fall 50%, but realistically prices are dictated by both buyers AND sellers. As in the stock market, once all the weak hands are taken out (speculative investors and sub-prime buyers), I expect some stability because the rest of the owners in this market do not NEED to sell. They have sufficient equity in their homes and they have no intention to move out of Vancouver, that they couldn’t care less what the monthly or even year to year fluctuations are. Someone who bought a home 20 years ago for $200k and have nearly paid it off are not suddently going to panic and dump their primary residence just because the market value has fallen from 900k to 600k.
November 18th, 2008 at 10:23 pm
Completely bogus argument. Market prices are set by those who are buying and selling, not those who aren’t. The vast majority of owners do not put their houses up for sale in any market. Also, nearly all “do not have to sells” intend to buy another property anyway, so it makes no difference to the supply/demand balance whether they sell or not.
Somebody always needs to sell, but nobody has to buy. In a declining bubble market you get an increase in “must sells” on cash flow negative properties and pre-sale defaults. At the same time investors stop buying. Prices are set by the few participants willing to buy. NOT the sellers.
Zero sales in Van West for two weeks says it all. Some of those listings HAVE to sell, and they are going to HAVE to accept whatever is offered.
November 18th, 2008 at 10:53 pm
oh yeaah bunslappers! paul is right, steady the ship until m2 moneys injection lifts all boats! steady she goes! larrys’ rocket going down for bogus bear attack!
November 18th, 2008 at 11:13 pm
what is m2?
browntown are you a janitor?
November 18th, 2008 at 11:16 pm
I love the argument Paul used because it’s true (most people don’t have to sell) but also completely irrelevant to real estate prices (patriotz explained why). A classic red herring!
Someone used that argument in a conversation with me a few years ago before I paid much attention to real estate. I didn’t have the rebuttal handy back then, but the logic didn’t make much sense either so I gave it some thought. If someone isn’t buying or selling, then who cares?
November 18th, 2008 at 11:26 pm
Don’t buy now & regret later. Wait for the housing value to drop by at least 20%. More bad news are unfolding, & very soon lot of people will have problem servicing their housing loan. Don’t listen to all those greedy commission real estate agent. For those patient buyer, fortune await you
http://www.canada.com/vancouve.....3896a129b9
November 18th, 2008 at 11:28 pm
Best tip ever–free from my storehouse of howknow:
You put lots of 8 in sale price.
Lots of rich Asian likey those luckie number.
November 18th, 2008 at 11:53 pm
Hey evelybody
This man veddy veddy smart
http://www.infomercial-hell.com/tom-vu/
He know many tings.
He got many good brains
You listen vely vely closlely OK OK
November 19th, 2008 at 12:53 am
@rubberduckie: If you want to get ahead of the price-cutting curve, you should be priced at 2008 assessed value (at most). There are still sales here in Victoria, for example, above 2008 assessed, but the premium has shrunk. And the number of sales below assessed (which was unheard of as recently as six months ago) has increased.
Your goal is to sell your house, but not give it away. The more urgent your need to sell, the sharper your price needs to be.
Although the commenters on this board like to believe nobody has to buy, people still buy in all kinds of market conditions. There’s no such thing as zero transactions. Your goal is to be competitively priced so that you’re property is one of those transactions.
November 19th, 2008 at 1:59 am
“You might also try building a moat around your property house to keep it isolated from the economic realities beyond.”
Then it will be a water front property
You can claim to be the new yaletown.
November 19th, 2008 at 2:06 am
@rubberduckie: islander has some good advice. You have to consider how many properties are being sold arround you… ie supply. Compare yours to some of the lower priced properties; its likely those sellers are trying to be more realistic.
I would try to target 2008 assesed value – 10% *depending on the properties arround you* (this is the most important). Agressive cuts now will prevent you from chasing the market to the bottom. Also consider the presentation of the poperty and any quick fixes you can do before/in between showings.
November 19th, 2008 at 2:18 am
This comment is off topic and is strictly a rebuttal.
#7
Will
“There are only two ways to report”
“Only two ways” is absolute, unbridled nonsense!
There are any number of ways to report market activity. In support, consider the market NOW, the ANTICIPATED market and the market’s “HISTORY”.
“It takes time for offers to be accepted, subjects to be removed, and then sales to be reported to the board.”
From a historical perspective, that is correct, however, the fact of the matter is that in saying that “Larry reports way too early” is strictly your opinion. Starting your missive with a “sigh” intrisically suggests that the methodology used by me to arrive at a “big fat doughnut” is incorrect, therefore unacceptable, misleading or worse, patently false.
My question to you Will, is when were you appointed judge and jury.
Will, please appreciate that your opinion of market status is valid within your paradigm, so too, is mine. That you consider it otherwise is to do yourself a diservice by your limitation of that understanding.
Noted, is that you have postulated this postion countless times. You have done this on my blog, private emails and again here.
Once more I say to you Will, you are entitled to your opinion and the use of historical numbers as your basis for market validation. That is your choice. Others seek the NOW. The facts presented on my blog are verifiable and accurate in terms of NOW.
It’s not a difficult course to follow and has been explainded to you a number of times privately and under separate cover in a post on my blog. It’s valid, it’s real, it’s not rocket science! Simply, it a snapshot of the market at that moment. That this method does not suit the cut of your cloth is irrelavent to me. What is relavent, is that you continue to color the discussion as “scandalous” and “shocking”. Will, it is fact and is as valid as the air you breathe!
Your continuing suggestive rhetoric tires me. It serves no purpose other than to taint my reputation. Will, be clear in noting that I am strongly recommending to you that you cease your disparaging personal attacks.
November 19th, 2008 at 2:38 am
The more urgent your need to sell, the sharper your price needs to be
That only works in a rising or stable market. In a falling market, the longer you take to sell, the more the market will fall and the less you will get.
Or to put it in more concrete terms, someone who priced sharply in September and sold quickly got more money than someone who priced higher and ended up selling in November at way below the listing price.
November 19th, 2008 at 2:41 am
#11 Anonymous wrote:
>what is m2?
M2 is the type of money supply as defined by economists circulating in the economy. For a more complete definition, check out:
http://en.wikipedia.org/wiki/Money_supply
Browntown is saying the injection of money by the Central Banks into the economy will lead to an inflation of the nominal price of houses. What he fails to note though, is that regardless of how much money the Central Banks print, the real value of homes are going DOWN, DOWN, and DOWN.
Whenever house prices bottom out, people will be spending less of their disposable trying to support their mortgage payments versus what they spent at the peak of the bubble. The problem today is that many Vancouverites are spending almost all of their disposable income and savings on overpriced housing.
Rest assured, once the real values of house prices bottom out – future buyers of houses will have more disposable income to spend on other things such as cars, travel, electronics, etc, rather than putting all our disposable income into supporting shoebox condos that are overpriced because of the biggest real estate bubble in modern times.
In a nutshell, real estate is one of the worst asset classes to invest in right now, with or without inflation.
November 19th, 2008 at 3:01 am
It’s the property with the best per sq.ft. pricing, plus it’s professionally staged. But not even an offer. Nobody’s buying! It might just suffer from bad layout, bad feng shui, or bad juju, whatever you call it. (It’s a friend’s condo, not mine thank god.)
November 19th, 2008 at 3:27 am
I asked a realtwhore the other day: “When would it be a bad time to buy or sell?”
He looked confused for a second and then his head popped.
November 19th, 2008 at 5:06 am
Larry,
Sorry to correct your spelling, but it’s relevant.
November 19th, 2008 at 5:15 am
Have you guys noticed that when sales are down the realtors come out of the closet and start posting on blogs and the bulls and speculators completely disappear?
This happened on the U.S. blogs starting in the fall of 2005 when their housing market collapsed.
It’s happening here now.
What next?
November 19th, 2008 at 5:48 am
Was talking to the painter at my workplace yesterday. He has a fulltime job painting the building.
He said he has a lot of friends in the construction industry — particularly working on the millenium project who are completely maxed out and he was wondering what they will do when the work runs dry.
I told him about the sales and price stats and he sounded very surprised, although he did say that people who bought 2 and 3 million dollar homes will be just fine. I corrected him on that assumption, too.
November 19th, 2008 at 6:28 am
Buy duplex get “FREE” BRAND NEW HONDA CIVIC!!!
http://vancouver.en.craigslist.....65570.html
November 19th, 2008 at 6:43 am
p.s. The Langley townhome listed at $449,000 above is assessed at $407,000 and was bought in Feb 2007 for $415,260.
The new Honda Civic will only cost you
Assessment value: $407,000 X .85 = current value $345,950;
Asking price: $449,000-345,950=$103,050
The cost of “Free” Honda Civic? $103,050.
November 19th, 2008 at 8:15 am
Holy schnitkes!
http://www.bankrate.com/brm/ne.....alues1.asp
Can someone more industrious do the math and see how much people are losing per day? (I typed this with my nose)
November 19th, 2008 at 8:19 am
I meant to ask, how much are people in the GVRD on average losing per day since the start of the decline? I know that if a one million dollar home lost 10% in the last year, that equals 273.97 cents per day, every day for the last year. That is a very sobering thought.
November 19th, 2008 at 8:25 am
larry! you da man!
the average bear is looking for info…
a snapshot from the trenches is spot on
no spin no digression… just the facts
November 19th, 2008 at 8:40 am
>ohnoyoudidnt Says:
>
>I meant to ask, how much are people in the GVRD on average
>losing per day since the start of the decline?
The detached benchmark home in the REBGV dropped $30K in October. At that rate, if you owned a comparable home to a detached benchmark home, you would be losing approximately $1000 per day.
November 19th, 2008 at 8:43 am
Anyone who thinks prices will only drop 20% from peak is extremely deluded. We’re already 9.8% down from peak on the benchmark and it’s only been six months! At this rate we’ll be 30% off peak by the end of 2009, and that’s notwithstanding that the drop is picking up steam and will get worse as there are construction and related-sector layoffs.
November 19th, 2008 at 8:56 am
From an article in today’s sun:
“METRO VANCOUVER – West Vancouver builder Sean Hanley thought Canada’s real estate market would be immune to the housing recession that sent values tumbling in the U.S. Then the economy slowed and oil prices fell….
“It’s been a little bit surprising the consequences of the subprime crisis have been so far-reaching,” said Hanley, 48, who has cut his asking price to $3.99 million and is now offering a $100,000 bonus, on top of regular fees, to the agent who delivers a buyer, according to a Bloomberg News story.”
*********
How does one become a successful (so far) developer and builder and yet be so obviously retarded?
November 19th, 2008 at 9:07 am
Re Millenium project:
Well, any construction worker on that site should consider themselves lucky. Unlike others who have had the rug pulled out from under them with all the other projects stalled or outright cancelled, , this Millenium group of workers has literally guaranteed work for almost a year ( Millenium is scheduled to be completed by Sept. 30 , 2009 ). Like Montreal’s 1976 Olympics … my guess is the Millenium will be a gravy train till then with lots of O/T based on nervous Gov’ts desperate to save face.
Maybe the Millenium contractors should bring in financial advisors etc. for the site’s workers so they can better face reality, given everyone else being impacted by the global financial meltdown will have had over a year head start adjusting to these new realities.
November 19th, 2008 at 9:47 am
Vancouver real estate reported at bloomberg.com today. Here is the link http://tinyurl.com/5cfugt (I hope that works as this is the first time I have tried tinyurl).
November 19th, 2008 at 9:53 am
“The only other option is to reduce my asking price by C$600,000 to C$700,000 to where I’d be virtually giving the place away,” Hanley said. “I’m not about to do that.”
Do it now, or do it later!!!
November 19th, 2008 at 10:08 am
“The only other option is to reduce my asking price by C$600,000 to C$700,000 to where I’d be virtually giving the place away,” Hanley said. “I’m not about to do that.”
The arrogance astounds me. A perfect example of someone who will chase the market all the way down.
November 19th, 2008 at 10:14 am
One of the top news stories in Bloomberg today:
http://www.bloomberg.com/apps/.....refer=home
See, Vancouver is famous.
November 19th, 2008 at 10:15 am
Sorry, Shima already posted the bloomberg story above.
November 19th, 2008 at 10:25 am
If a person wanted to sell tomorrow, what price should they list at??
You would probably have to list at $0 and take the highest bid received by the end of the day. I’m pretty certain this would result in a sale. Just tell your friend not to worry they can always rent the place out, after all according to Petard Ladner “we have like what a 0.001% vacancy rate in Vancouver?”.
November 19th, 2008 at 10:35 am
“The cost of “Free” Honda Civic? $103,050″
Excellent point. Also, it is amortized for 25-35 years, assuming the bank allows it in the mortgage. Typically, car loans are 3-5 years and can be had a very low rates right now, if you have good credit.
November 19th, 2008 at 10:36 am
…said Hanley, 48, who has cut his asking price to C$3.99 million…The only other option is to reduce my asking price by C$600,000 to C$700,000 to where I’d be virtually giving the place away,”
This guys thinks $3.29 million is “giving the place away”?! What a tool!
November 19th, 2008 at 10:38 am
@6 rubberduckie said:
If a person wanted to sell tomorrow, what price should they list at?? I know everyone says “low” but what does that mean? 10% less, or 15% less than peak? What would you say is the discount factor for a near-new westside townhouse?
If you wanted to sell tomorrow, I’d say price the house for 150x what its monthly rent would be; so a townhouse that would rent for $2000/month should be priced at about $300k. Alternately, follow mohican’s “fair price equation”, which you can find by digging around at the Langley Financial Planning blog. So basically, price it at a point at which it makes financial sense to buy it.
That price should attract buyers, who may then bid it up amongst themselves. This would also have the effect of giving you a data point on what the local market currently thinks the “ownership premium” is for real estate.
November 19th, 2008 at 10:51 am
Price drops ;
Isn’t it simple ? It is always an equilibrium between a motivated seller and a motivated buyer.
If , at the extreme end of the spectrum , people are placed in a situation they can no longer own their asset, and have to sell ASAP, they become a motivated seller.
However, if there is no motivated buyer,….then what ?
Reminds me of an old joke:
2 old men , Joe and Bob, were discussing business.
Joe said he had an elephant to sell Bob for $100 .
Bob then said, ” What can I do with an elephant? I would have to feed it, clean up after it, provide shelter, Vet bills, oy vey !!!! I have absolutely N-O use for an elephant ”
Then Joe said ” Ok Ok … tell you what…. $50 and I will throw in a camel”.
Bob said ” OK….You gotta deal !!! ”
November 19th, 2008 at 10:53 am
This ad is confusing, but it looks like this pre-sale speculator is giving up on their $73K deposit on a Brentwood condo.
http://vancouver.en.craigslist.....26161.html
November 19th, 2008 at 11:17 am
Yes, rather confusing. A little grammar is a dangerous thing.
November 19th, 2008 at 11:17 am
“West Vancouver builder Sean Hanley”
*Builders are not like home owners interest rates that apply to home owners are different than builder,Builders interest rates are very similar to credit card so $100,000 or $200,000 bonus is still a profitable for Hanley type of builder as he is being rat on bloomberg let him scream for exit but home owners no need to scream as rents are higher and interest rates are low http://cuer.sauder.ubc.ca/cma/.....erates.pdf
“For Hanley, that’s meant nary a buyer for his five-bedroom home.”
*Scream Hanley Scream greedy builders you should have measure the size of population and supply of other projects.
“At the same time investors stop buying. Prices are set by the few participants willing to buy. NOT the sellers.”
*Patriotz,There is a technical error in what you saying i mean to say you are not different than what paul is saying,when satisfaction for sellers does not meet than buyers reconsider the merging sense so you and him are moving around each other.
“Your continuing suggestive rhetoric tires me. It serves no purpose other than to taint my reputation. Will, be clear in noting that I am strongly recommending to you that you cease your disparaging personal attacks.”
*Larry you deserve some rants for poping out too early WILL’s point is if you know the insight you should wait atleast a month to report something however What makes you to pop out to report 10 days while real estate count month over month and year over year?Are you trying to scare the sellers or telling the buyers not to jump in?Check your age and your attempt does not match with your outcome.
*Other side Paul has a good point and i know where he is coming from now he know one thing for sure that is one and the only true fact that VANCOUVER REAL ESTATE NEVER GO DOWN
November 19th, 2008 at 11:39 am
I will buy your house/condo.The price will be:
1. Current market rent fixed for 25 years
2. 0% down
3. 100% vendor financed
4. Strata fee to be included rent
5. No GST
6. No credit check
* My risk: Real estate values are likely to drop by 40%+.
* Vendors risk: I may walk away.
This is my final and only offer!
November 19th, 2008 at 11:59 am
That Brentwood listing is confusing.
He’s suggesting that 5% down equals around $350k and he wants his interest back.
Regardless who’d have thought paying over $450/sq ft to live at Brentwood Mall is a good idea?
Anyone want to pay $3000 a month for a rental worth $1600?
Buy now or someone else might!
November 19th, 2008 at 12:32 pm
Brittanny,
Is that your final call before you loose your job?
November 19th, 2008 at 2:09 pm
Pope, I am shocked….SHOCKED! At this outrageous and offensive post.
Underwear models do NOT drink beer and smoke weed.
Beer has too many calories and weed makes their eyes all red.
Underwear models drink clear premium liquor and do pills and powder excessively.
I can’t be the only one around here who has dated an underwear model…. can I?
As Captain Jack said “I really have to write my autobiography, and if you’re lucky I’ll illustrate it.”
November 19th, 2008 at 2:17 pm
Are you drunk?
November 19th, 2008 at 2:19 pm
Other side not have a good point. VANCOUVER REAL ESTATE GOING DOWN HARD!!!
November 20th, 2008 at 2:22 pm
Price the listing right and they’re going to sell. It might be a bitter pill for Sellers, but thats what the real estate market demands. The key in this market is to get to the front of the line and be better priced than your competition.