Creative Marketing on Private Sales?

We’ve seen developers hiding price reductions in the form of tax and strata discounts on new developments but what about the private seller?  Check out this new listing:

MLS: v868581

“BEST VALUE FOR $… DARE TO COMPARE! ” NO HST… Concrete Building, 2 levels, 3 bedrooms, 3 bathrooms, in addition to a family room. Living out of the box with plenty of private outdoor space on the 5th floor with exterior doors out to a garden and kid’s play area. Not to mention, swimming pool, media room, meeting room, 2 storage lockers, 1 parking, Pet Friendly, Rentals ok. The main entrance is well secured with card entry and concierge service. Shopping is only minutes away, with Starbucks T&T supermarket, Costco, Home Depot, McDonalds, and great transportation, the skytrain. BONUS: for a short LIMITED TIME OFFER, the seller will sweeten the deal with a $200 strata fee reduction for 5 whole years.

MLS History

First listed for $548,000 on June 9 2010 (v831995)
Price reduced to $527,500 on October 10 2010
De-listed December 22, 2010
Re-listed for $580,000 this week

So what do you think about this creative marketing? The price has increased $52,500 from where it didn’t sell last year but now you have a carrot of $200/month for 5 years (about $11K if you discount it @ 3%). Is there any benefit to the seller from a cash flow perspective? Surely the buyer would demand the $12K be held in escrow?

Personally, I like the graphic work indicating the townhouse location on the listing image:


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registered
Member
registered

#52 Best place on meth Says: “I wonder if Harper cut back the investor immigrant class numbers as well.”

Does the program have a quota? It was was put on hold for most of last year, processing times currently range from 26 (Korea) to 53 (Egypt) months.
I don’t understand the goal of this program. There seems no requirement on the part on the investor to do anything but lend the government $800K interest free for 5 years in a low inflation environment. You also need to prove sufficient funds to support yourself, which Immigration sets at $29.4K for a family of seven.

http://www.cic.gc.ca/english/immigrate/skilled/funds.asp

kwl
Member
kwl
I found this little gem today while reading the Pique up in Whistler. It's an article from the Feb. 9th issue called Whistler 2010: a Blueprint for Business Success. It goes on to talk about real estate of course and I'll quote a section from it. The part near the bottom of the quote about the media wanting to get stories about rising real estate prices is interesting: "For Pat Kelly, owner of the Whistler Real Estate Company, the idea that property values would rise due to the arrival of a two-week event was just a myth. He claims to have seen no noticeable change in property sales leading up to the Games. "There was a few reported sales of people who were looking for real estate prior to the Olympics because they thought it would be nice to have… Read more »
Anonymous
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Anonymous

#76,

good luck!

Bubba
Guest
Bubba

Ulsterman…..

This is an anal… eerrr,,,, I mean annual event.

After Xmas, the RE pimps have to drum up the herd for the springtime RE buying orgy.

If their own mothers were 1/2 assed decent looking, you'd be getting free lay with the RE deal.

Everything is pimped,,people, stats, ethics…..

vomitingdog
Guest
vomitingdog

VHB,

Money is still very cheap. As long as it's cheap, Vancouverites will buy. They can't help themselves. And from what I hear, money is still circulating outside the official banking system in China. That can't help our cause either.

Ulsterman
Member
@VHB: Here’s what I don’t get. Inventory is building at a record pace. Still nowhere near ‘glut’ levels on the market as of now, but we are high for mid-February. On the other hand, we hear all these stories about busy open houses and bidding wars. What gives? Here's what gives in my opinion: 99.9% of lower mainlanders do not read real estate bear blogs. I think that those of us that are interested in this stuff become so involved in the day-to-day analysis that we forget that most do not. They get their news from the Sun, Province, CTV News, Global, Ozzie Jurock on 980, and of course, family members arranged around the dinner table. The average is up 11%. Vancouver appears to have bucked the world-wide downwards trend. The TV "news" shows asian realtors flying around in helicopters… Read more »
Bubba
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Bubba

# 77 chip

We have enough of a problem within the Canadian citizenry than importing external money drains.

Charity begins at home….

I laugh like hell with our token politicians deftly imply a concern re: immigration restriction, knowing full well enough is enough.

Shut the F'n borders and allow us to deal with our problems.

Other countries seem to be doing it.

Are our own politicians so diaper- dependent they can't see the farce for the trees?

REIC is watching us
Guest
REIC is watching us

I was reading the CBC forums about the immigration changes. Even the lefty CBC types are stressed about the impact of immigration. The Conservatives were smart to reduce the family Visas and I fully expect more changes along this line.

Check this poll on the CBC site showing 75% support for the government (among CBC viewers!!!) and the comments below:
http://www.cbc.ca/news/pointofview/2011/02/immigr

Concerns over unemployment and stress on our healthcare system are making a lot of people doubt the wisdom of so much immigration. Boomers are worried about the government supporting them as they get older.

So the REIC better have a Plan B.

chip
Guest
chip
@Bubba: "What PM “Harping -whore” is probably realizing is that the citizenry is finally realizing the immigrant class investment has reached an equilibria point that the cost outweighs the benefit." I'm not sure the investor class is a real problem. It's small and they do bring some form of cash or expertise. The problem, as the govt seems to realize, is the huge share of immigration (about half) taken up by extended family members. When you can sponsor a parent or grandparent while making little more than 20k a year, and that often older relative then gets full access to 'free' healthcare, that's an enormous net cost to the country. Now, on an individual level I totally sympathize with the individuals bringing their parents and grandparents in — who wouldn't want to — but when I used to fly SQ's… Read more »
Kosta
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Kosta

@john:

I honestly think in 2-3 years time you’ll be able to buy that place for $400,000 tops.

Therefore one should wait another 2 years maybe to get it for 180k. Personaly I wouldn't buy it at all but if I have to I wouldn't pay it more than… (120 x 1250) = 150K max.

Anonymouse
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Anonymouse

@john:

"And maybe get the owner to tidy up before taking the pics?"

My personal favourite is where they've left all the blinds/curtains closed….

McLovin
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McLovin

Another net 100+ new listings.

Keep em coming!

Bubba
Guest
Bubba

fixie guy Says:

February 14th, 2011 at 3:32 pm

#52 Best place on meth Says: “I wonder if Harper cut back the investor immigrant class numbers as well.”

====================================

What PM "Harping -whore" is probably realizing is that the citizenry is finally realizing the immigrant class investment has reached an equilibria point that the cost outweighs the benefit.

OR, it is an insult to the Candain citizen that they are not capapble of contributing to the countries economy….and we must import foreigners and foreign capital.

Any idiot can launder money in static asset classes, ie RE….the dynamic entrepeneurial class seems none exisitent

Read the tea leaves prior to the revolution….

jesse
Member

@john: "I just noticed the maintenance fees on that place are $673.55"

Or $8000 a year. Yikes, that really puts the $200/month discount in perspective!

john
Guest
john

Holy crap – I just noticed the maintenance fees on that place are $673.55. Good grief. That's more than half my current rent.

Who would even consider for a second paying out more than half a million dollars and still have to pay fees that high.

I honestly think in 2-3 years time you'll be able to buy that place for $400,000 tops.

john
Guest
john
I love how some realtors, including the one in this post, think that they can sell a home using direct marketing/TV infomercial shouty-style American methods? As if just the power of their words will make someone buy it. Ie, capital letters, exclamation marks, ellipses, and a 'catchy' slogan (DARE TO COMPARE! – what does that even mean?) As well as copy that doesn't make sense and often isn't even proper English, I'm also amazed at the lack of good quality photos in many MLS listings. As a buyer, all I need is a nice bulleted list detailing the rooms, room sizes and the main features; a note of the location; and some good quality pictures, including a floor plan. And maybe get the owner to tidy up before taking the pics? Just a thought. Seriously – why is that so… Read more »
paulb.
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paulb.

New Listings 322

Price Changes 102

Sold Listings 198

12076

space889
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space889

CHMC fires back at critics…..

I like the part where it says CHMC is not a problem because what happened in US, UK, Ireland, etc hasn't happened in Canada yet because we are different and more economically sound. I wonder what happens when Canadian housing really starts slide and CHMC requires a bailout?

http://www.theglobeandmail.com/report-on-business

Keeping An Eye On Th
Guest
Keeping An Eye On Th

@patriotz:

"Executive summary: the Ponzi scheme hasn’t failed yet"

Let's hope it doesn't fail until every fool has purchased, so we won't have a repeat of 2010.

When this market finally falls flat on it's back we want a count of 10, we lift the arm, and make sure it's lights out for a good decade.

jesse
Member

@domus: CMHC firing back? The lady doth protest too much, methinks!

The calculations are simple. Run some stress tests on CMHC's balance sheet with various price change scenarios and ensure they open their books for critical review.

On first blush they are undercapitalized. On second blush, they have significant downside risk if they are forced to insure loans that are decreasing in value, when a private insurer would be flat out refusing business.

registered
Member
registered

#60 domus Says: CMHC fires back at critics

How claiming 1.2 billion a year (net? gross?) from hundreds of billions in loan guarantees is 'firing back' remains unclear.

Joshua
Member
Joshua

@data junkie: "They way things are going on the rate front, by August owning a house in Richmond will be about as affordable as a personal helicopter."

This is the quote of the year. LOL!

oneangryslav2
Guest
oneangryslav2

@patriotz:

@domus:

Executive summary: the Ponzi scheme hasn’t failed yet.

Bingo! I imagine the verdict will be different after prices have fallen 20-25%.

patriotz
Member

@domus:

Executive summary: the Ponzi scheme hasn't failed yet.

domus
Guest
domus

CMHC fires back at critics

From the G&M:

http://www.theglobeandmail.com/report-on-business

…CMHC argues that the Canadian model is cost-effective, and has provided the Canadian taxpayer with $12-billion over the last decade in profits and income taxes.

“Most importantly, the Canadian model withstood the test of the economic downturn, when housing markets in the U.S., United Kingdom, and Ireland failed,” Mr. Stewart wrote.