Most real estate professionals are honest and unless there is a signed offer in place would never use the threat of a competing offer in an effort to drive up a property sales price.
But just to make sure a few bad apples don’t spoil the bunch Ontario plans to crack down on phantom bids.
The scam involves a sales agent hinting to prospective buyers there are other bids as a way to coax them to bid higher.“You say, ‘We’re expecting another offer. I do have another offer. You may want to go back to your client and make sure this is their best offer’,” says said Joseph Richer, registrar of RECO. “You are suggesting there might be competing offers when there may or may not be.”
With the new rules, “You cannot suggest or even imply that you have an offer unless you have one in writing, signed sealed and ready to be delivered,” said Richer, while adding there have been very few formal complaints about phantom bidding over the years.
Read the full article here.
Does this stat surprise you?
About 1 in 245 Canadians over 19 is a Real Estate Agent.
We have almost as many people in the country selling real estate as we have building it.
This according to an article in the Financial Post
Royal LePage chief executive Phil Soper blames this increase on what he calls ‘speculative’ agents.
“This is a real regional story. If you look at Quebec, where they took a different approach to licensing and professionalism by increasing the length of time and difficulty to get your licence, their ranks have shrunk,”
So who’s out there getting their real estate license? Sounds like this is the easy path to riches and as long as we get enough churn in the market there should be plenty of commissions to go around, right?
Read the full article here.
It’s that time of the week again! Friday is when we do our regular end of the week news roundup and open topic discussion thread for the weekend. Here are a few links to kick off the chat:
–Vancouver market in full retreat
–Championship of lost sales
–REBGV news release for July 2012
–GVREB news release for July 2012
–How much $ has left the economy?
–New site forces realtors to compete
–‘Think Housing’ contest winners
–BCSC alleges million $ fraud
–No new steps to cool market
–New framework for credit unions
–Global slowdown dashes hopes
–Unsold Toronto condos growing
And here’s a couple of charts, the first one is from VMD and shows what the average Vancouver house price has done in the last two years:
This second chart is from Ben Rabidoux and was linked by Jesse – you can draw on your own red line for July:
So what are you seeing out there? Post your news links, thoughts and anecdotes here and have an excellent weekend!
Over at the CBC there’s an article about the ‘uncertain fate’ of Vancouver real estate.
Vancouver’s real estate market has taken another interesting turn, with listings up and sales down during what is usually a busy time of year.
In May, average prices for houses have dropped about $150,000 compared to one year ago. That 12-per-cent drop wiped out two years of price increases.
The reason appears to be that too many more sellers are trying to cash in at the same time. Listings are up by 23 per cent, but fewer are buying: sales are down 24 per cent.
“Probably, on average, about a 150 or 160 homes in Vancouver are reducing their price every day in the hope of catching, getting ahead of the train and maybe get out before they can’t,” said realtor Larry Yatkowsy.
Larry is an interesting fellow, he seems to change opinions frequently, but isn’t it in most realtors interest to get sellers to lower listing prices to make a sale?
What’s this, builders making a profit on new houses at $130k?
Apparently only in Vegas.
Yes, after a 60% drop in house prices builders are somehow still in business making new homes and selling them for under $200k.
“The single largest impact has been houses under $200,000,” Beville said. “Homes in the $130,000 to $190,000 (range) are getting a lot of love. The ones in the $200,000 to $300,000 are getting a little bit less.
Meanwhile in Vancouver even if you get the land for free it’ll cost you $270k to build a 500 sq foot laneway home.
Construction cost is high in Vancouver for a few reasons: permits, cost of materials, cost of labour.. but there’s really only one reason construction cost is so high: people are willing to pay for it.
It’s not like construction quality here is known for it’s quality (leaky condo crisis) and we even make use of unpaid illegal immigrant labour and still we pay these prices?