All posts by YLTNboomerang

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:

Saving you the HST or just scared to build?

I understand this is only a small subset of a small market and I am not saying this is the case for all of Vancouver

One of the area’s I have been watching for a while is the Capilano Highlands area of North Van. While I have seen price reductions (7 of the 18 current listing have dropped prices since July with an average drop of 3.5%), what is most interesting to me is the 3 listings that are not built but are only at the planning stage:

  1. v853152
  2. v855926
  3. v854980

Are these builders trying to save you the HST or afraid to build these homes on the teardown properties they bought for fear of a degrading market, or am I just reading too much into this?

They are all different builders and different realtors:

Don Eiler’s Listing

Virani’s Lising

Peter Ebner’s Listing