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Originally Posted by Winsor_Pilates
Depends on the product type, location and pricing.
There's a lot of people thinking the market is crazy so listing at unreasonable prices. A lot of sitting properties are those overconfident sellers.
Edit: ^^And if your building with sitting listings the one with a $1M water deductible and bursting pipes, there's your reason. That sucks.
Multiple offers are certainly a bit of a game or more so a strategy. But it only works if there's enough demand to do so.
If I'm listing something that I know will have 5-10+ buyers wanting it, it only makes sense to position the listing this way.
It doesn't work in a slow market.
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Just about every older building in Vancouver is seeing issues with pipes. The insurance companies do have a good reason for raising their rates, as claims, especially water claims, are plentiful. The building I own in has over 150 units. Any building that size over a few decades old is going to see a water claim once few years, minimum, and there's nothing special about the amount of claim there vs other buildings. In fact, the strata in my building is probably too over eager when it comes to managing issues, which makes renovations a PITA.
The other option major option for any strata is to rip out all the plumbing at once, which wouldn't necessarily stop all claims, as any major renovation is going to result in a few mistakes/issues along the way.
Deductibles are also very high in a lot of new buildings, as the insurance companies can just charge the high rates from the get go, and not have to worry about honoring existing policies and the newer buildings are often more expensive to repair.
At the end of the day, the extra insurance is still pretty minimal when in comparison to the actual price of the units. You're literally talking about an extra $500-1000 at most in insurance payments. It might account for a $5-10k drop in price, but not the larger drops with units still sitting. The much bigger issue is the lack of international travel and flee from the downtown core. Rents are way down and vacancy is up. Having a unit sit empty for many months is a much bigger issues than having to pay an extra $500 in insurance premiums.