Just a few years ago it seemed like the easy way to get rich was to buy a pre-sales condo in the Lower Mainland and wait for appreciation to kick in. Well, a funny thing happened on the way to the bank: property values deflated. That means that many people who bought condo units under construction in the last couple of years now owe more for their condo that it’s current market value. We’ve posted before about buyers trying to get out of their contracts and developers suing buyers.
Bat posted this link to a craigslist comment, it appears some buyers at D’Corize in Surrey are frustrated with the drop in property values and would like to ask the developer to return some of their profits:
First of all my apologies as I did not know where else to post this info. :
The project is pretty much complete and you are probably being asked to make arrangments for financing. Financing is based on the appraised value of your suite…guess what? Appraisals are coming in well below the price you signed up for back in 2007, this means you’ve got to come up with a bigger down payment. I hear that there are alot of people that are not qualifying due to the poor real estate market, job losses and these individuals may walk away, this won’t be easy as you’ll lose your deposit and then the developer can come after you for further losses….well you’re not alone. Some individuals are approaching the developer to re-negotiate the price and in my opinion there is strength in numbers, if you know of others that have purchased these units in a presale…your friends, your family….talk to them and approach the developer as a group or have someone represent you as a group (lawyer). Where are all the realtors who said that this would be a “Great Investment”. Well they’ve all disappeared and I guess they were looking after their own best interest….. Well good luck…and if anyone else has anything to say,,,,,just post your comments.
In the same boat as you…..