Sunday, July 13, 2008

$890,000.00

Thanks to R.Di for pointing out this travesty @2630 FRANKLIN ST, Hastings East, Vancouver East. v718488



$890,000.00?!!! WTF are these people smoking down on Franklin ST.? It reminds me of The Charge of The Light Brigade, or the Kamikaze Cult. No guts, no glory.

IT IS OVER! Shave your price by $600G's, and you might get a low-ball offer of $225K.

I have a mind to get a real estate license - just so that I could arrange to take your 75% off, low-ball offers to people like this. Any bored agents out there?

Actually, I wouldn't buy the place for an even $200K.

Any FTB better hurry to get in on this one to be a FB - as of October 15th, forget about that zero-down, 40 year amort., cash-back action, yer going to have to slap down 5% with a 35 year amortization. The handy Royal Bank mortgage calculator tells us that if you make accelerated weekly payments of $1,245.09 (a measly $4930.86/mo.), you can own this puppy outright in 27 years. It will take an annual income of about $200K to buy this place at these terms. Is here a surgeon in the house? A CEO of a middle corporation?

OK, I know that it is only really move-up buyers that are buying these places, but I am curious as to exactly from where someone would "move up" to this place. The Cecil Hotel?

I'm not normally subject to schadenfreude, but I feel a big, smug smirk coming over me.

27 comments:

Vancouver real estate said...

Hello, here is one bored agent, as you put it :)
Working as a realtor in Vancouver, I can agree with you. Some of the properties in this area are really overpriced. But, again, it is really up to the owner of the house to offer it at a price he/she thinks is realistic. Once the seller realizes that the house is not going to be sold for this stellar amount of money, he or she will lower the price, that's for sure. So, basically, it's the owner's right to offer it as expensive as he wishes and it's the right of the potential buyer to ignore it...
Cheers, Jay

Anonymous said...

It's a misprint. Need to take the "8" off the front of the price.

By the time the bottom is in, they'll be lucky to get $90,000 for that shack.

VERY lucky. That shack won't sell for what they're asking until 2050 at the earliest.

TheCollective said...

Gretings,

Is there any way at all to know how much they paid for it and when?

Regards,

arit

Anonymous said...

Found my way down to that neighborhood on Sunday on my bike - looks like a candidate for a large scale industrial clean up effort.

A real find if you're into abandoned lots full of rusted car parts and God knows what industrial effluent soaked into the soil beneath it.

Something tells me that's also the area everybody is going to be pushed into when they "clean up" the DTES for the Olympics.

Anonymous said...

Dear Real Estate Agent (first poster):

SCREW YOU. It is up to the AGENT to ADVISE THE SELLER HOW MUCH TO PRICE IT AT. That is what YOU WERE HIRED FOR TO DO.

$100k houses priced at $900k, like this bubble, is the fault of your weasel colleagues and your weasel profession.

I hope you personally get caught jacking off in front of little boys at the mall.

solipsist said...

anon. 10:33 AM -

Stay cool. It is incumbent on the agent to recommend a realistic price, but ultimately, it is up to the vendor (though, if I was the agent, I might not take such a listing).

Not all RE agents are weasels, some are very good, and very ethical. The agent for this place is probably a newbie with stars in their eyes, and visions of sugar plums dancing in their head.

I would submit that the bubble was caused by greed and stupidity on the parts of vendors, and buyers. If I was selling a place, I would want the most that I could get for it. The job of the selling agent is to get that. The job of the buying agent (and the buyer) is to get it for as little as possible.

I do not think that it is fair to just blame the agents en masse, nor to imply that they are sexual perverts.

jesse said...

Standard lot with what is effectively a teardown. Structure is probably no more than $30K putting lot value at $860K. To get an idea, putting up a new house would put it at $1.1MM minimum. There are wide lots with well made 10 year old houses on them in Killarney that are listed for less than that.

What's worse the back lane shares with commercial properties. Hope you like trucks. Back the f&%* away from this one, even at $250K.

Art Vandelay said...

10:33 Anonymouse, you need to dial up the Ritalin.

Realtors do not cause price increases. A listing agent's job is to get as much as possible for the seller. He is not obligated to sell you a house at the price you want to pay. That is a rookie mistake a lot of buyers make.

Until recently, lots of people were willing to pay "crazy" prices for crappy homes. Greed being what it is, some sellers refuse to accept the fact that the party is over, even when their realtor tells them so. So it's entirely believable that some sellers are still over-pricing their homes for the current market.

No realtor would deliberately over-price a house because it won't sell and he won't get paid. Just think it through logically before pounding the keys and hitting Enter.



I'm not familiar with that neigbhourhood, but that shelter is worth more than $30K. You don't know the

Anonymous said...

greedy sellers & greedy realtor. that is the most overpriced P.O.S. i've seen to date. homes in the area are $200,000 below what this house is asking.

for anyone who is going to consider buying, they are in for a surprise. the back alley is being shared by businesses who are located on the north side of hastings street.

the only thing dumber than the seller & realtor is the buyer who actually makes an offer close to the askign price.

Anonymous said...

If the realtors who have been advising their clients to overprice their homes are allowed to wash their hands of the entire mess, then let's put this in the hands of the realtors who've spent the last 7 years advising their clients to MASSIVELY OVERPAY for housing.

Because if nobody was willing to overpay, there wouldn't be a bubble. All the "Real Estate Professionals" would have to say is "that guy's dreaming. I'll show you how to calculate a home's VALUE in real dollars". And that would be the end of it.

If that had happened, Bob Rennie wouldn't have sold a single one of his overpriced shoeboxes in the sky. Vancouver would actually be livable, people would buy homes as places to live rather than as speculative gambles, and Canada wouldn't be about to slide into a crippling multi-year recession fueled by the bursting bubble.

Remember that realtors all personally own property, so they benefit directly from every bubble. They make their inflated commissions but they also flip houses all the way up. Then they wait until they've dumped their own "holdings" before they'll admit to clients that the bubble has burst. And they reduce the impact of the crash on their own holdings by advising people to buy all the way DOWN.

Don't believe me? Go see a realtor tomorrow and ask him if it's a good time to buy.

If realtors weren't lower than pedophiles on the social order, they would have looked at these graphs:

http://langley-financial-planning.blogspot.com/2008/07/rebgv-statistics-june-2008.html

...and advised EVERY SINGLE CLIENT NOT TO BUY starting at the very LATESTE in January of this year. That would have cooled the frenzy, softened the blow, and normalized prices.

Every single house that was bought this spring (or since 2006 or earlier, actually) under the supervision of a realtor was a breach of ethics and a white-collar crime. But nobody will do time for it.

These snakes are lining their pockets with millions of dollars that belong to real working Canadian families who are looking for places to live.

And don't forget the fact that they charge staggering commissions for doing effectively nothing. They're among the 10 most overpaid professions in North America.

I'd rather my son be on welfare than sink as low as getting into Real Estate.

Anonymous said...

OH i wouldnt worry too much about realtors... I would be sweating right now if i was one especially all these new unestablished ones. If the party is over for the real estate market then its over for realtors too, i think you're going to see alot of X realtors serving your food and drinks in the next year or so.

alexcanuck said...

Get real! It's easily worth 200K. 250 even. 890? not so sure on that one. What a joke.

Anonymous said...

The kicker is the realtor putting in the ad that the seller will accept all reasonable offers. If the seller was serious about selling s/he would have listed at $500k. What I think is happening is that people are just putting thier properties out for unrealistic prices in the hope of getting a sale.

Anonymous said...

I used to feel the same way as "anon" regarding the ridiculous asking price of this house. However, the current downturn has proven to me that some will definately get hosed. The current market conditions will take care of this one. I agree, this area and that piece of garbage isn't worth more than $300Gs...we know it'll go for a lot more than that...good I say...hope the buyer gets squashed!

pbell

patriotz said...

I would submit that the bubble was caused by greed and stupidity on the parts of vendors, and buyers.

Nope, the buyers only. It is the buyer who decides how much the house sells for, if it sells at all. Not the seller.

The buyer always has the option of not buying. Many sellers do not have the option of not selling. The buyers always control the market price.

That is true for every asset bubble. No seller of any asset can make the buyers purchase it. I'm not talking about consumables like food or oil, but capital assets like RE or stocks.

solipsist said...

patriotz - again you have parsed the hyperbole to plain old bole.

It is the purchasers' issue. Not the MSM, not the realtors, not the sellers, it is the people who don't have a clue about value.

Any "value" was basically gone by 2003 (in this current cycle).

patriotz said...

If the realtors who have been advising their clients to overprice their homes are allowed to wash their hands of the entire mess, then let's put this in the hands of the realtors who've spent the last 7 years advising their clients to MASSIVELY OVERPAY for housing.

Are you the "client" of the guy at Future Shop? The guy on the used car lot? Don't you take it for granted that these guys are going to try to get you to spend as much money as possible?

Like all commissioned salespeople, the job of the realtor is to get the maximum possible price for the seller. Period.

What puzzles me is that people have no trouble understanding this for the former, but not the latter.

patriotz said...

Is there any way at all to know how much they paid for it and when?

Sure, just look it up on BC Online or whatever it's called. It's not free though.

If the previous sale was by a realtor it would be in their database too.

Anonymous said...

Thanks Solipsist for this post. I've had a rough day and this gave the the biggest laugh I've had in a long time.

I'm curious though - you normally keep your emotions in check when you post. This time you seemed to go on a rant (which I rather enjoyed). I could almost see the steam coming out of your ears - why the sudden rage?

jc said...

Someone needs to hunt down the owners and do an interview. I would be curious to see what their views on the market are and how confident they are of selling.

(Tell them it's for a high profile housing blog and they will be getting excellent exposure to the interweb. :)

solipsist said...

why the sudden rage?

Not rage, disgust.

it's for a high profile housing blog

the pope has a high profile housing blog. This one, not so much. Thanks for the vote of confidence though!

TheCollective said...

solipist

Maybe the pope has the high profile, but let me tell you as a user that I log daily first into YOUR blog. Why? Because you have the most convenient LINKS column.
All the blogs I wish to visit are conveniently arranged on your right side of the page. I browse them religiously: Condo info, financial planning, Rob, the works.


In a more philosophical level: When you put out stuff on the web, you never(!) know what other people might find useful.


eg. (bragging alert) I did put a short vid of my daughter learning to ride the bike in YouTube... for the family.

Someone paid me 2300CAD for it... Out of the blue.

Regards,

arit

Anonymous said...

If you ever expected your realtor to advise you not to buy, or even to take your time to buy, then you don't understand basic economic psychology.

The amount that realtors make isn't affected by the level of prices anywhere near so much as the rate at which sales take place. Whether a buyer's agent or a seller's agent, the more sales they are involved in, the more money they make. There's no point in villainizing them for it; that's just the way the system is set up.

A rare realtor may take an unorthodox approach to building a clientele by providing advice that is not in his immediate self-interest (i.e. complete honesty). That takes much more than just a strong ethical position, though. It also requires the realtor to scrupulously avoid the most common of human foibles -- believing what he wants to believe.

So, unless your realtor is (a) a saint, and (b) an enlightened actualized wise person with complete self knowledge on par with the buddha, don't expect him to guide you honestly through a slow market. It's up to you, the buyer, to protect your interests. Not him. Ever.

- awum

Carioca Canuck said...

So where do these purchasers get their RE "education" from ?

Realtors, banks, CMHC, the RE biased print MSM (due to ad revenue) and TV shows (due to prduction revenue and ad revenue)......therefore the blame has to be laid at the feet of those who gave the "advice"..... as well as those who drank the Kool-Aid IMHO......

The entire REIC bears a signifiant portion of culpability for the guilt of this tragedy.

I have never had a realtor tell me the truth in the last couple of eyars, during the off hand conversations I have seen and had online, and in their little shopping mall kiosks with them....etc.....

Anonymous said...

Most buyers get their real estate "education" from real estate porn like "Flip This House" and the granddaddy of them all, "This Old House".

Then of course, they get their REAL ACTUAL education after they buy.

And it's an ugly, crushing, and sometimes bankrupting lesson.

Grumpus said...

What price can you put on pure class? I would totally flip them a check for 900 large right now, as long as there's a clause they must leave those two lions guarding the porch.

Anonymous said...

owner: Dino Bordignon
phone: 604-255-1721

He built the house and hand dug the basement. it is uneven like you wouldn't believe. He built the monster place next door as well which is full of welfare types.

Dino is an ass and an alcoholic to boot.