Why is the market going crazy?

[PsYcNeT]

Absolutely insane. Are there still places around nowadays that sell for 2%-3% under list like a normal city?

[lorenavedon]

the way the multiple offer thing currently works is BS on so many levels. It screws both the buyer and seller. If there are multiple offers, it should go auction style and let the bidders bid up as much as they want and know what their bids are. This might encourage more to get involved in a real bidding war and bid knowing what the price is, get more money for the seller, yet get a fairer price for the buyer.

Currently any realtor can just say "there's another offer on the table". ok, lets see the proof. So shady

[calgarygeologist]

Originally Posted by Flamenspiel

I disagree, its a simple business transaction and about making the right deal and i would have no scruples about dealing with a "bad" or "difficult" seller. Sometimes that's where you get the best deals, because everyone else walked away.

The real estate laws and your realtor are there to make sure your interests are protected.

We were able to find a great deal on a property a few years ago because the seller was all over the place, we laughed about it and kept our realtor at it until we were the last people in the game.

I've been involved in many situations which involve submitting/tendering proposals and bids. They are sealed bids with deadlines and specific requirements. If a company, agency or government ever sent out a similar email stating they had received "x" number of bids and were providing an opportunity to modify I would pull my bid as well. I just don't like doing business with people who act in that type of manner.

[Bill Bumface]

I'm also sure the if the bidding/selling realtors are buddies that it NEVER happens where the highest bid is disclosed to one of the bidding realtors and not the others...

[DoubleF]

I've been under the assumption if you get a call like that, you can contact the seller/realtor and ask specifically what they want, if it's strict cash or changing a possession date etc.

For our house, I believe the family wanted out asap originally but for whatever reason started getting wishy washy. Turns out there was a snafu on the other side and there was a 3 week delay so they wanted more money (full asking IIRC to deal with hotel costs and stuff). We agreed to delay 3 weeks if they took a +0. Sealed the deal.
That was probably like a sway of like $50 in property tax? They lost out on about $3,000 but I guess for them, it was still way less than the cost of housing up in a hotel for 3 weeks as well as the added inconvenience.

Not sure if there's rules against this, but that's what I remember of the deal from many years ago. I recall the realtor telling my parents it was possible that the deal could fall apart over $1k, but he was confident that sticking to our guns was the best bet if we agreed to change the possession date. IIRC, the realtor even sheepishly admitted the family wasn't even properly packed to move out. Maybe we lucked out, who knows. But just saying that I don't think it hurts to contact them and ask what it is they truly are looking for. If it's just extra cash, then walk if you're not comfortable in bumping the offer.


A feel good story. Bungalow in the same neighborhood. We offered something like 8k below asking price due to issues with the home (cosmetic damage and the like). Seller said no. Added a K and asked again. Seller claimed they were already selling the home 10k below market. So we walked. Bought the house in the aforementioned story and checked the bungalow house's listing. Turns out they were asking 6-7k less than our original offer and still not sold. Felt good.

Anyone know if contacting the seller to ask what they actually want or if any non-monetary deals would work better is allowable?

[lucky1]

recently put an offer an a bungalow (with the help of Travis) - initally told 'we're not accepting offers until tomorrow' - waited until the next morning and submitted the offer - After the sellers realtor recieved my offer, she once again said she was not accepting offers - and would not present my offer to the sellers.......they had some walk thru's that day, and it was plainly obvious she was hoping for a multiple bid situation.
I was pissed off, I felt it was a Dbag move - an offer should be presented when its received....long story short, she got her multiple offers, came back to me to 'present my best offer' - we basically walked

Travis, what did that place end up selling for anyways? did you ever have a look?

[bizaro86]

Originally Posted by lucky1

recently put an offer an a bungalow (with the help of Travis) - initally told 'we're not accepting offers until tomorrow' - waited until the next morning and submitted the offer - After the sellers realtor recieved my offer, she once again said she was not accepting offers - and would not present my offer to the sellers.......they had some walk thru's that day, and it was plainly obvious she was hoping for a multiple bid situation.
I was pissed off, I felt it was a Dbag move - an offer should be presented when its received....long story short, she got her multiple offers, came back to me to 'present my best offer' - we basically walked

Travis, what did that place end up selling for anyways? did you ever have a look?

In a similar situation, I've put a tight deadline on an offer, (two-three hours for acceptance) and verbally said that the offer dies then as I have another place I'm interested in.

[Travis Munroe]

lucky1 - sold for 4,900 under list.
Bizaro - that's the best approach. I am actually doing one as we speak where I was just informed another offer is coming in within the next few hours. I told them our best and final price and said they have a hour to agree to it or we walk. If we walk it is no longer multiple offers for the other side and their offer might come in lower than ours. As our offer is fairly strong I suspect they will take it vs risking someone else's offer in a couple hours.

[DoubleF]

Gotta know when to fold em' eh? If you declare walking (even if it hurts) onus is back on them to panic.

[kaisin82]

seems like there's gonna be a soft landing to the property prices

http://www.calgaryherald.com/busines...636/story.html



travis, what's your take on this?

[lorenavedon]

Originally Posted by kaisin82

seems like there's gonna be a soft landing to the property prices

http://www.calgaryherald.com/busines...636/story.html

travis, what's your take on this?

would be nice to know how much demand is people looking for a home to live in vs investors looking for #### to do with their extra cash. People will always need a place to live in good times and in bad, but the huge demand from investors can dry up in an instant if the economy turns even slightly. That's the big risk. Lots of stuff being brought up, especially in the condo market, is probably a huge portion investors. Not to mention that if the economy turns, those investors will no longer be buyers but they might turn into panic sellers as well. While true home owners won't panic to sell as they still need a place to live, investors might panic sell to create some liquid cash to pay leveraged debt. This is why volatility is so scary. Insane price rises during a boom and fast crashes during a bust. I don't think Calgary will ever have a long term balanced market.

[Red]

Originally Posted by lorenavedon

would be nice to know how much demand is people looking for a home to live in vs investors looking for #### to do with their extra cash. People will always need a place to live in good times and in bad, but the huge demand from investors can dry up in an instant if the economy turns even slightly. That's the big risk. Lots of stuff being brought up, especially in the condo market, is probably a huge portion investors. Not to mention that if the economy turns, those investors will no longer be buyers but they might turn into panic sellers as well. While true home owners won't panic to sell as they still need a place to live, investors might panic sell to create some liquid cash to pay leveraged debt. This is why volatility is so scary. Insane price rises during a boom and fast crashes during a bust. I don't think Calgary will ever have a long term balanced market.

Agreed, investments are driving this market a lot. Seems that everyone that is buying is keeping their old house to rent out. Leveraged to the ears.

As far as soft landing? No such thing as soft landing in RE. Especially in our conditions (debt debt and more debt). But then again, who knows, this may go on for another decade and by then inflation will wipe the debts off.

[Badgers Nose]

I'll be listing my double garage 1800sqft house in Somerset soon, probably in the $445-450 range to expedite things. I want to be fully moved out first. New place possession is the 18th.

Hopefully the market stays hot for another month or two.

[Badgers Nose]

I don't have to sell it at all, it is just a few months from being paid off. I was planning on carrying it for a month or two. So I'd like an Oct 1 or earlier possession for whoever buys it.

So once we are moved out I will list it. Probably right after Labour Day. I dunno.

We have a family connection to a top Calgary realtor and he gave us staging tips, so I still have a few minor projects around the house. Also, just had a new roof done.

[Knut]

If you guys want to see an area with a crazy market right now check out the new Currie Barracks development. 100-200k higher than a similar house in Garrison Green/Garrison Woods.

[calgarygeologist]

Originally Posted by Hesla

If you guys want to see an area with a crazy market right now check out the new Currie Barracks development. 100-200k higher than a similar house in Garrison Green/Garrison Woods.

I really love the Currie Barracks development but the prices are pretty crazy. I`m hoping to possibly revisit the area once the additional phases start to become available. I wasn`t really too interested in Phases 1A,B,C especially with the prices that there were being thrown around. I`m hoping to one day be able to afford to build a house towards the northern end (near Richmond Greens) of the development. It sounds like that is still many years away though so I have time to save my nickles.

The new plan for the area looks like it is going to be developing a large portion of the park which is centrally located in the Barracks. The last time I was in the sales office (before the updated plan earlier this year) the park and running track area was supposed to be left alone. If that stuff gets developed it will kind of kill the appeal.

Hopefully they get traffic planning correct because it could become a nightmare in that area especially if they hope to get 11,000 people in that area. I use to live in Marda Loop and 33rd Ave over Crowchild was brutal during peak hours. Flanders would obviously need some sort of upgrade and it is encouraging that they are talking about those plans now. Richmond Road and 37th is going to need a serious overhaul as well.

[Flamenspiel]

Yes, that's interesting, i have had some business interest in the area for a long time but I have always thought that Garrison Woods is a better location then Garrison Green and it looks like the Currie Barracks are also on the far side of Crowchild Trail. The houses and lots in GW are very small but I can't see the land values being higher on the east side of Crowfoot.

[calgarygeologist]

Originally Posted by Badgers Nose

I'll be listing my double garage 1800sqft house in Somerset soon, probably in the $445-450 range to expedite things. I want to be fully moved out first. New place possession is the 18th.

Hopefully the market stays hot for another month or two.

The market is pretty crazy in some areas. My brother just sold his 1 bedroom condo in Bankview this weekend. He listed it on Thursday and had it sold on Saturday.

[nickerjones]

Originally Posted by calgarygeologist

The market is pretty crazy in some areas. My brother just sold his 1 bedroom condo in Bankview this weekend. He listed it on Thursday and had it sold on Saturday.

My mother in law listed her place is forrest lawn. It sold in 48 hours at 2k below the listing price. She had a number of people drive by and ask about the house after she signed the contract. I thought for sure she was asking to much but the realtor said lets just list it here and see what happens. The guy who bought it has been looking for 4 months and got beat by the last two. He walked through it, made an offer, and even waived inspection.

[ExiledFlamesFan]

Originally Posted by nickerjones

My mother in law listed her place is forrest lawn. It sold in 48 hours at 2k below the listing price. She had a number of people drive by and ask about the house after she signed the contract. I thought for sure she was asking to much but the realtor said lets just list it here and see what happens. The guy who bought it has been looking for 4 months and got beat by the last two. He walked through it, made an offer, and even waived inspection.

This is gotta be a sign things are getting a little too crazy. Forrest Lawn is becoming an attractive place to live. No offence to your mom but I'm sure she's happy to be getting outta the hood.

What's next? Airdrie is suddenly the place to be?