$100k price drop guarantee

With more and more noise in the news lately about falling sales and prices in the Vancouver real estate market developers are getting creative.

When even the real estate industry predicts prices to be lower in the future how do you sell new condos?

How about offering a $100k price drop guarantee?

Crabman points out that’s what the Kimpton in North Van is offering.

It’s not entirely clear how it works, but lets assume they don’t mean that they guarantee prices will drop $100k in the next two years.

“New guaranteed prices are what you will pay today and are net of the $100,000 price protection guarantee provided by the developer and registered on the title on closing”

Here’s the ad:

And here’s a shot of the sign currently on the building exterior:

This is certainly an interesting alternative to the many stealth price drops that we usually see: free car, etc.

What do you think? If you’re looking to buy but concerned about falling prices would the price drop guarantee make you more willing to purchase?

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outbound calls
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Not much of a name...
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Not much of a name...
@patriotz: So the market price on the property has dropped below the amount owing on the mortgage and the homedebtor gets paid his $100K or whatever? Doesn’t that imply that the homedebtor’s claim is senior to the mortgage? Have these guys run this one past the banks or CMHC? Or maybe it only applies if the buyer pays cash? Correct me if I’m wrong, but the add states that the price paid is net of the $100k price drop and that amount is registered on title. Wouldn’t the buyer essentially have to come up with $100k cash just to put into trust? So much for the down payment. Instead of having to have $150k as a down payment to avoid CMHC, the buyer will now have to have $230k ($130k dp plus the $100k into trust). No wonder they didn’t… Read more »
painted turtle
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painted turtle
Foo
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Foo

Canada needs to allow more immigrants from white countries like Persia, because they share the same culture. It’s not about race, it’s about the ability of new comers to fit in and be successful.

More Data Please
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More Data Please
@rp1: Shovel Ready or Ready to Shovel IT? Flaherty gave few details of what measures he might bring in to stimulate the economy, but he said he’s learned a few lessons from the 2009-10 stimulus packages — one being that moving fast is good. “One example that did work very well was colleges and universities…they have a lots of pent-up infrastructure to do,” he explained. “It employs people and it employs people quickly and it doesn’t take a long tendering process. “At a time of economic crisis … the quicker a project can go the better.” Any tips on how to get in on this? The real comedy gold of stimulus/QE is imagining Bernanke giving up on buying instruments and simply directly hiring workers to move dirt from one pile to another in the parking lot of the Federal Reserve.… Read more »
DOW
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DOW

Flaherty says: “we are not going to stand by and have the Canadian economy slip deep into a recession with high unemployment.”

so printing presses are getting warmed up. this will not end well.

Naked Official #9000
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Naked Official #9000

@patriotz:

flaherty is hilarious when he gets flustered..

if the ‘fiscal cliff’ scenario happens, what will the CCP say to the 1.5 billion in the working/peasant/lumpenproletariat classes when their export market crumbles and their t-bills are worthless? should be a fun century! better get that deep water navy started..

patriotz
Member

@rp1:
This is just another attempt to blame the inevitable collapse of the Canadian RE/consumer debt bubble on external events.

rp1
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rp1

http://www.680news.com/news/national/article/419766–flaherty-says-u-s-budget-crisis-could-push-canada-into-a-recession

Flaherty says: “we are not going to stand by and have the Canadian economy slip deep into a recession with high unemployment.”

This sounds like over-reaching to me. To his credit, he did say “in response to an external shock”.

kansai92
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kansai92

Very easy to offer a $100,000 price drop guarantee.
Simply price the unit $100,000 more than it is actually worth.

FlipFlop
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FlipFlop
I think there’s a case to be made for the harm reduction on the user side as well. It’s not like we’re talking about 5% of the populace here. There’s a lot of nasty weed out there that I certainly don’t want to smoke (or want my kids or father smoking). The current medicinal channel in Vancouver provides a high quality (no pun intended) consistent product, in many forms (edibles, tinctures, oils, hashish, buds, etc), by people that are knowledgeable about the plant, and keen to help you choose the right application for your preferred usage. It’s a safe place, it’s convenient, it’s controlled and requires ID. The fact that this type of safety and efficacy isn’t afforded to everyone is a travesty, when you consider the numbers involved. How many honest, hardworking Canadians are being forced to acquire their… Read more »
M-
Member
@FlipFlop: assuming “giggle stick” is a euphemism for marijuana, nope, not me. Despite not using it, I support legalization & regulation, if only to take the criminality out of it… We should stop wasting police resources (those cost tax dollars!) chasing criminal gangs, when we could easily just get the gangs out of the business by legalizing it. As it stands now, anybody who wants marijuana can buy it easily, so the police impact can’t be that big. It’s just expensive and harder-to-find because of the prohibition premium. Put it in liquor stores, give the criminal profit margin to government in the form of taxes, and use those taxes to pay police to chase down the hardcore drugs. It takes forever for the cops to get enough information to get a warrant to break up a grow op; policing is… Read more »
jesse
Member
A few quick calculations and comments for November sales (and beyond). – The average daily sales change from 2011 to 2012 aggregated monthly has been -22% stdev 5%. – If we take the average drop and apply it to November’s relative to 2011 it suggests 88 average daily sales, with 1stdev range 82-93 average daily sales. – November 2010 and 2011 daily sales did not exhibit any significant trend or bulge — sales remained relatively consistent throughout the month though were slightly worse in the second half of November 2010. We are currently trending on the lower bound of the 1stdev range. It’s a bit too early to place a high confidence on November month-end sales but, as of now, things are looking to be tempered a bit compared to October. (August-October averaged 75,80,88 daily sales.) It looks like there… Read more »
FlipFlop
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FlipFlop

So, for shits and giggles, which of you hit the giggle stick on a regular basis?

Patz? Jesse? VHB? M? ZHR? (we’ll leave paulb out of it)

Come on you annymous pussies. Fess up!

I’m chronic (fresh off a 60 day break, but back at it like a champion).

FF

an observer
Guest

460 sales in the last 6 work days is the lowest 6 work day total of the year since Jan 23 besides a 2 week stretch in late August to early September. We’re getting accustomed to these low numbers but they are actually very bad even compared to the rest of this horrible year in sales

data junkie
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data junkie

I think boogeybear needs to hit the vape and chill out a bit.

C’mon man, join the Choom Gang- if it’s good enough for the most powerful man in the world, how bad can it be?

Naked Official #9000
Guest
Naked Official #9000

@Yalie:

maybe we can cement boogeybear into the foundation

probably won’t shut him up, though

cheetos! praise the lord, heathens! bong water!

Yalie
Guest
Yalie

Meanwhile, back in Toronto, some are trying to fight the plan to turn a huge commercial bakery into 27 condo towers:

http://news.nationalpost.com/2012/11/07/mr-christies-bakery-workers-at-centre-of-fight-to-keep-industrial-land-from-condo-developers/

I don’t see what the problem is, really. After all, we don’t need things like jobs and factories any more. As long as we keep building more condos, eventually we can all get rich from real estate without having to work.

spasam
Guest
spasam

boogey you are on the role 🙂 keep going

boogeybear
Guest
boogeybear

Well, it seems to have passed in Washington and Colorado. It seemed it was the snowboarder vote that swung the decision. Since this conflicts with Federal law, I would expect a lot of Senators visiting these states. Let’s just hope they have enough Cheetos.

boogeybear
Guest
boogeybear

Are they going to put warning photographs on the pot, like they do cigarettes. And what are they going to be. A fat guy with a bag of Cheetos.

boogeybear
Guest
boogeybear

@Patiently Waiting:

Dude? Dude?

Even Ashton Kutcher grew up. You’ve lost an entire decade smoking that crap.

Fabio
Guest
Fabio

” but it seems to me that it doesn’t really capture what is happening “on the ground”.”

yeah, i know a person that is part time and on/off for 4th year. she does not have even steady part time. but in official statistics she is counted as employed. she is desperate.

jesse
Member

@thepartyisover: “Underemployment is a huge problem right now”

So is overemployment, people being asked to do more work for the same pay. Everybody’s screwed!