Crazy Bull Anecdote of the Week

Oneangryslav wrote this in the comments:

Crazy bull anecdote of the day (week?):

My brother lives in North Burnaby in the area bounded by Hastings and Parker, Willingdon and Gilmore. His neigbhour a couple of doors down (whom both he and I know as we played soccer on the same youth team) many years ago) tore down a nondescript bungalow and built himself a large house. Almost to the day of the one-year anniversary of the place having been completed this friend is sitting at home watching television early in the evening (this happened a couple of weeks ago), when he hears the doorbell ring. He opens it to find a gentleman standing there asking if the house was for sale. The friend asks sarcastically “do you see a for sale sign?” “No”, responds to (as it turns out) real estate agent. The real estate agent continues, “would you be willing to sell it, anyway?”

The friend thinks about it for a second and says “sure, the price is $1.3 million dollars” thinking that would scare the real estate agent away. Anyway, long story short, the real estate guy goes to his car to call someone, comes back and says “okay!” Now my brother thinks that his home is worth about a million dollars.

Crazy! I’m going to get in touch with our friend to find out more of the details.

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Dog
Guest
Dog

That’s awesome. The guy scored from the sounds of it. Or maybe not. What if the place was actually worth more?

an observer
Guest
I’ve been watching south surrey (specifically Elgin / Ocean Park / Crescent Beach / Morgan Creek / Grandview in the $1.2 to $2.8 million range) for a while and get details on sold listings through email. Here are some interesting data points from a region that had been doing pretty well until just recently: * Elgin had 16 sales in June, 17 in July, 9 in August and 1 so far in September * Those 4 regions combined have 6 sales this month with an inventory in that price range of 175 homes for a projected MOI of 20 * Elgin has 68 properties for an MOI of almost 50 * There has not been a $2 million+ sale this month in any region with an inventory of 44 units for an MOI of, well, infinity I guess * Morgan… Read more »
patriotz
Member

@Dog:
“What if the place was actually worth more?”

If someone makes you an unsolicited offer for your house the price is almost certainly below market. Remember that the market price is the highest price that anyone is willing to pay.

Not hard to figure out but unfortunately many people don’t get it.

curious lurker
Member
curious lurker
another quick note for you all, and something to look forward to. Imagine this in Vancouver’s future 5-6 years from now. After our move to the US we bought a house, and we had to buy homeowner’s insurance. When you buy insurance, the insurance company wants to assess your home for the cost to rebuild, as that is the value of the insurance coverage required. Get this. The cost to build our house is the same as our purchase price. (It’s actually a few thousand more than the purchase price, but a mostly insignificant difference) So we are insured for the full purchase price of our house. Contrast this with houses in the Langara area, or anywhere in the lower mainland really. When is it a good time to buy a house? when the purchase price is equal to or… Read more »
Anonymous
Guest
Anonymous

“Now my brother thinks that his home is worth about a million dollars.”

I was at a persons house the other day in West Van. It was a decent house on a large lot. They told me in conversation their place was probably worth about a million dollars now. The thing is their place is probably worth more like 2 million plus. I was tempted to offer a million.

This crazy bull story is more like crazy stupid story if this guy sells for 1.3 million without getting further advise on the real value.

specialfx3000
Member
specialfx3000

We bought one of the ‘day-tents’ from Costco at clearance for about $35 to keep the kids cool when at the park/beach. Lots of use this summer 🙂

One day, a couple strolled by and said that it was a great idea. They wondered where we bought it and guessed that it’s probably about $120.

We smiled and offered it to them for $80. They smiled back and went their merry way.

So until money changes hands, its bs all around.

Anonymous
Guest
Anonymous

@patriotz: “Remember that the market price is the highest price that anyone is willing to pay. Not hard to figure out but unfortunately many people don’t get it.”

By your definition it is impossible for someone to pay above market price for anything. If I offered you $100 for a pencil you would consider that market price?

specialfx3000
Member
specialfx3000

@Anonymous:

… until money changes hands, its bs all around.

Ralph Cramdown
Guest
Ralph Cramdown
What if the place was worth more? How do you determine what a place is worth? Hire an appraiser or trust a broker to come up with a figure, then market it competently and wait/hope for an offer near asking to come in. IF it sells, that’s probably about what it was worth. Then the bank will send an appraiser or ask a computer, and might come back with “That doesn’t appraise, we’ll only lend this much,” which is a polite way of saying “You, Mr. Buyer, are an idiot.” This whole process works great with a patient seller or a fast market, not so much in a slow one. While I agree that an unsolicited offer isn’t too often higher than what one MIGHT achieve, there’s value in not having to stage, photograph, clean, vacate, haggle, play phone tag,… Read more »
boogeybear
Guest
boogeybear

Market price is what two people buy the pencil for, or $100.

Market value is the range that most pencils are selling for, or 1 to 2 bucks.

N
Guest
N

Here is a story about how household formation in Vancouver is down. The amazing thing, however, is how the reporter describes attitudes toward buying and renting. I cannot understand how someone fresh out of school would get it in their head that they should buy real estate.

http://www.vancouversun.com/news/national/Census+finds+young+adults+choose+stay+home+with+parents/7269268/story.html

patriotz
Member

@Anonymous:
Market price requires that buyer and seller are making a bona fide effort to obtain the highest and lowest price respectively. In the case of a pencil, there are other parties who are willing to sell an identical pencil for less. So the price is above market.

Every house is unique, but the requirement to try to get the best price still stands. Selling to someone (e.g. a family member) when you know that you could sell for more (or buy for less for the buyer) is not market price.

patriotz
Member

@patriotz:
” buyer and seller are making a bona fide effort to obtain the highest and lowest price respectively.:

Should be seller and buyer are … of course.

oneangryslav2
Guest
oneangryslav2

@Dog: No, he definitely ‘scored’. He won the lottery, that’s for sure. I’m just curious as to what he’s going to do now. Whether he’ll understand that some greater fool just secured our friend’s retirement or whether our friend will buy again. I’ll keep the group informed.

Oh, and no home in that area should be worth even half of what was paid.

jay
Guest

Hi, Everyone,

Do not forget to watch CBC TV “The National” tonight, continued discussion of Canada housing market. Tonight it will focus on Vancouver.

http://www.cbc.ca/thenational/about/tonight.html

Meh
Guest
Meh

@N: The brainwashed Sociology Prof equates paying rent to simply paying someone else’s mortgage.

26 y/o Marta is living her life based on an old TV show. She’ll see things differently when she’s 36 and faces a choice of losers as potential husbands. Your charms don’t last forever, my dear.

b5baxter
Member

http://vancouverpeak.com/groups/data-hounds/forum/topic/september-2012-daily-numbers/?#post-2599

Inventory, the little engine that could, is climbing the mountain to 20,000. I think I can. I think I can.

Over the last two weeks the average daily increase was:
79
At this rate we would reach 20,000 in 12 days (Oct-02-12)
and we would reach 21,000 in 25 days (Oct-15-12).

Many Franks
Guest
Active Member
Many Franks

It’s been a long slow climb, but we’ve finally made it to 300! Congratulations to Vancouver’s own Jason Nesseth.

http://realestateagentsincars.tumblr.com/post/31926991197/congratulations-to-vancouvers-jason-nesseth-our

Jason is technically a mortgage broker, not a real estate agent, but I think you’ll agree that he fits the bill nicely.

G
Guest
G

V969563
How is the Pure building in dt? This one was listed at $688k last year and now it’s down to $568k. Assessment is around $580k. Owner paid about $540k in 2010. The strata fee is high in the $400s.

Anonymous
Guest
Anonymous

what time does CBC’s “The National” air?

jesse
Member

Rumour Kodak is moving back one of its large industrial equipment manufacturing lines back to Vancouver from Mexico. That will be a handful of hundred manufacturing jobs.

zonk
Guest
zonk

@jesse: Thank goodness! Vancouver will finally be cutting edge, providing product to fill all that demand for film. 😀

Anonymous
Guest
Anonymous

@curious lurker: you dont get it, do you? if your home insurance value as same as your purchase price, then there is no value in your land.

Deliverator
Member
Deliverator

Check this out. Canadian Business magazine published an article on September 14th, titled “Canada’s housing crash begins”. Searching for it in Google brought up a link, but try and follow it, and you get a Page not found error. But Google still has a cache of the article:

http://webcache.googleusercontent.com/search?q=cache:NxM1pKjG3IsJ:www.canadianbusiness.com/article/98306–canada-s-housing-crash-begins+&cd=2&hl=en&ct=clnk&gl=ca&client=firefox-a

To make matters worse, go to the Real Estate section of the Magazine, and first article on the list is titled “Housing bears make more unsubstantiated claims”.

A little advertiser backlash, perhaps?

Many Franks
Guest
Active Member
Many Franks

@Deliverator: I don’t think it’s any conspiracy, but that’s just my sense.

See here for their editors’ response to an inquiry. See here for its new location.

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