Real estate in Calgary - another bubble?

[blankall]

Originally Posted by powderjunkie

The issue isn't builders, it's how we look at the thousands of kilometers of street parking.

NIMBYs want a guaranteed spot in the street in front of their house instead of taking the extra minute to use their garage (or they can't because of all the #### they own and never use). Put a price on that space and the issue will resolve itself.

Typically this is resolved in most cities with a nominal fee for street parking and permits. I have no problem with a reasonable pay per use fee. Contrary to popular belief, people do not own the sidewalks or roads in front of their house, and the city, not them, pays for their upkeep.

Growing up in Calgary, I always hated people who parked unnecessarily on the roads. Very disruptive to my cycling, skateboarding, and street hockey games.

[Bill Bumface]

Originally Posted by jwslam

Name a builder that offers this... It doesn't exist.

The first condo I ever bought, I had the option to buy a second stall. Also, nothing is stopping builders from selling places with 4 parking spots if they want. As powderjunkie said, all of this is a moot point. The problem is people thinking they own the street in front of their house, due to historical precedence of its use. That is public property, and you own the spot in front of my house just as much as I do.

[Shazam]

Originally Posted by blankall

Typically this is resolved in most cities with a nominal fee for street parking and permits. I have no problem with a reasonable pay per use fee. Contrary to popular belief, people do not own the sidewalks or roads in front of their house, and the city, not them, pays for their upkeep.

Growing up in Calgary, I always hated people who parked unnecessarily on the roads. Very disruptive to my cycling, skateboarding, and street hockey games.

Developer has to pay for sidewalk repairs for the first 10 years (maybe 15). After that it reverts to the city. The city used to split the cost 50/50 with the homeowner but this was changed about 10 years ago so now the city pays all of it.

[timun]

Originally Posted by Macman

Gio also selling his house.

https://calgary.ctvnews.ca/former-fl...sale-1.5900692

Ha, I had no idea he lived there. I live only a few blocks away, and my grandparents' house was a few parcels east and across the street.

[Jason14h]

And here we go. Final shoe to drop

https://www.theglobeandmail.com/busi...ices-drop-for/

https://www.bloomberg.com/news/artic...-on-rate-hikes

US housing data also showing same trend

Hold on it going to be a bumpy ride - but will be interesting to see what Calgary does as we have had the least dramatic price increase historically and have macro factors - oil prices - that should somewhat support price levels and increasing rates

[81MC]

Originally Posted by Jason14h

And here we go. Final shoe to drop

https://www.theglobeandmail.com/busi...ices-drop-for/

https://www.bloomberg.com/news/artic...-on-rate-hikes

US housing data also showing same trend

Hold on it going to be a bumpy ride - but will be interesting to see what Calgary does as we have had the least dramatic price increase historically and have macro factors - oil prices - that should somewhat support price levels and increasing rates

Can’t wait tbh. The influx of ‘wealth’ the housing market has created is good for a select few, mostly investors with no ties at all to the communities they’re ####ing.

Avg purchase price:income is like 10% higher than it was at the peak of the bubble behind the crash of 08, and is way higher than historical averages. The other foot will drop.

[BlackArcher101]

I think the key thing is that the globe and mail articles says "Canada" but in reality it's the massively overpriced markets that are seeing the drops, not here yet.

"Economists expect higher borrowing costs will lead to a significant price drop in some of the hottest markets."

I'd say given a choice for someone to buy a home and are willing to move, Alberta still looks attractive and we won't see that same % decrease they are predicting for say Toronto or Vancouver


Kinda PO'd though, I finally see some decent gains in my house value from 10 years ago, and now it's possibly going to be wiped out. One step forward, one step back.

[Sliver]

Hey so I have a deal on a condo I own closing today. Like, all conditions (financing and condo docs) lifted and the deal is done by 8pm (or something). Possession for the new owner would be in about a month.

If the guy squelches unrelated to financing or the condo docs (the docs will be perfect, so it could only be financing), do I get to keep his deposit? My realtor gave me a vibe like the guy might crater the deal because he's looking at some other places all of a sudden, which would mean his financing is fine. Plus I googled the #### out of him and would be 1000% skeptical of him having any financing issues whatsoever.

If he kills the deal - and in the meantime interest rates have gone up further and the market has gotten worse, thus making people less interested in buying in a recreation area - I kind of feel entitled to the deposit. Like, that's what it's for, right? To compensate me for him fataing up the sale of my property? Plus I'll have longer carrying costs of owning this one I'm selling, plus the new one I bought.

Hopefully it all goes through and closes fine tonight, but if not, any thoughts?

[fundmark19]

Originally Posted by Sliver

Hey so I have a deal on a condo I own closing today. Like, all conditions (financing and condo docs) lifted and the deal is done by 8pm (or something). Possession for the new owner would be in about a month.

If the guy squelches unrelated to financing or the condo docs (the docs will be perfect, so it could only be financing), do I get to keep his deposit? My realtor gave me a vibe like the guy might crater the deal because he's looking at some other places all of a sudden, which would mean his financing is fine. Plus I googled the #### out of him and would be 1000% skeptical of him having any financing issues whatsoever.

If he kills the deal - and in the meantime interest rates have gone up further and the market has gotten worse, thus making people less interested in buying in a recreation area - I kind of feel entitled to the deposit. Like, that's what it's for, right? To compensate me for him fataing up the sale of my property? Plus I'll have longer carrying costs of owning this one I'm selling, plus the new one I bought.

Hopefully it all goes through and closes fine tonight, but if not, any thoughts?

If they back out after waiving all conditions and the sale is firm you are entitled to losses incurred but that will between yourself and a lawyer to figure out and if you want to start litigation.

[blankall]

Originally Posted by Jason14h

And here we go. Final shoe to drop

https://www.theglobeandmail.com/busi...ices-drop-for/

https://www.bloomberg.com/news/artic...-on-rate-hikes

US housing data also showing same trend

Hold on it going to be a bumpy ride - but will be interesting to see what Calgary does as we have had the least dramatic price increase historically and have macro factors - oil prices - that should somewhat support price levels and increasing rates

Living in Vancouver, 10-20% corrections are par for the course. They seem to occur ever 2-3 years. Wouldn't consider it a "bumpy ride" at all.

[opendoor]

Originally Posted by Sliver

Hey so I have a deal on a condo I own closing today. Like, all conditions (financing and condo docs) lifted and the deal is done by 8pm (or something). Possession for the new owner would be in about a month.

If the guy squelches unrelated to financing or the condo docs (the docs will be perfect, so it could only be financing), do I get to keep his deposit? My realtor gave me a vibe like the guy might crater the deal because he's looking at some other places all of a sudden, which would mean his financing is fine. Plus I googled the #### out of him and would be 1000% skeptical of him having any financing issues whatsoever.

If he kills the deal - and in the meantime interest rates have gone up further and the market has gotten worse, thus making people less interested in buying in a recreation area - I kind of feel entitled to the deposit. Like, that's what it's for, right? To compensate me for him fataing up the sale of my property? Plus I'll have longer carrying costs of owning this one I'm selling, plus the new one I bought.

Hopefully it all goes through and closes fine tonight, but if not, any thoughts?

It sounds like he hasn't waived the conditions yet? If not, you're kind of in a tough spot if he backs out. Technically a buyer can't normally refuse to remove a financing condition because they get cold feet, but actually proving that they're not acting in good faith is another matter. You can elect to not release the deposit and try to negotiate some money out of him, but that might also just open up a legal can of worms.

[Sliver]

Correct, he hasn't waived the conditions yet and today is the deadline. It wouldn't even be on my radar to be concerned more than normal, but my realtor gave me a head's up she thought he was getting cold feet.

Hopefully it's a non-issue - I just wanted to be prepared for what to say if he asked if he could back out.

[Leondros]

Originally Posted by Sliver

Correct, he hasn't waived the conditions yet and today is the deadline. It wouldn't even be on my radar to be concerned more than normal, but my realtor gave me a head's up she thought he was getting cold feet.

Hopefully it's a non-issue - I just wanted to be prepared for what to say if he asked if he could back out.

In practice if there are conditions such as condo document review, he literally could back out for any stipulated reason if he found something of concern from things such as board meeting minutes, health of the contingency fund, etc. It wouldn't be worth the legal trouble of withholding any of his deposit back.

And again, as mentioned, financing is also quite grey - perhaps they didn't secure the financing they wanted at the rate they wanted.

[Slava]

Originally Posted by Sliver

Correct, he hasn't waived the conditions yet and today is the deadline. It wouldn't even be on my radar to be concerned more than normal, but my realtor gave me a head's up she thought he was getting cold feet.

Hopefully it's a non-issue - I just wanted to be prepared for what to say if he asked if he could back out.

It's so frustrating as the seller in these scenarios. Basically the buyer gets a week or two to reconsider and pull the plug, whereas the seller thinks they have a deal and there's very little recourse.

[Sliver]

Originally Posted by Slava

It's so frustrating as the seller in these scenarios. Basically the buyer gets a week or two to reconsider and pull the plug, whereas the seller thinks they have a deal and there's very little recourse.

Yeah, this is the first time I've bought before I've sold and it's definitely more stressful this way.

[cKy]

Originally Posted by Slava

It's so frustrating as the seller in these scenarios. Basically the buyer gets a week or two to reconsider and pull the plug, whereas the seller thinks they have a deal and there's very little recourse.

We had a conditional sale on our house (in Victoria) 2 weeks ago. They made an offer on Friday afternoon. We countered Friday night and they accepted that Friday night.

We had scheduled open houses on that Saturday and Sunday. People who came into the Saturday showing were told there was an accepted offer. I suspect we lost some walkthroughs based on the offer.

Come Sunday, the offer was pulled by the potential buyer. Basically nothing we could do. We had already cancelled the Sunday OH by that time, so it was a waste of an entire weekend. The fact there is no recourse is garbage. It wasn't a banking issue (as they are obvs closed on weekends) so the reason for pulling out is unknown.

We suspect the buyer put in an offer or 2 on other houses to see which one they can get cheaper, and when the dust settled they took another deal and cancelled ours. Could never prove that though.

I think there should be a deposit included in the offer that the sellers get if the buyer backs out for any reason that isnt getting the finances from the bank.

Incredibly frustrating.

[bagofpucks]

Exact same situation happened to us while selling our house and we did not get to keep the deposit, which seemed a little silly to me, but apparently is how it goes. From what I understand, it’s pretty much impossible to prove they completed the deal in bad faith. I have also heard of a few situations where the buyer backs out after a fairly flawless home inspection. It definitely seems like the terms are more favorable for the buyer as they can take 5-10 days to make their decision and survey the market. I guess the seller can technically keep showing the property and try to get other offers in the meantime, but I’m not sure I’ve ever heard of that happening.

[Slava]

Originally Posted by bagofpucks

Exact same situation happened to us while selling our house and we did not get to keep the deposit, which seemed a little silly to me, but apparently is how it goes. From what I understand, it’s pretty much impossible to prove they completed the deal in bad faith. I have also heard of a few situations where the buyer backs out after a fairly flawless home inspection. It definitely seems like the terms are more favorable for the buyer as they can take 5-10 days to make their decision and survey the market. I guess the seller can technically keep showing the property and try to get other offers in the meantime, but I’m not sure I’ve ever heard of that happening.

I had buyers back out after a home inspection a few years ago. They basically found the most inane reasons to kill the deal in that inspection (which I rectified for approximately $100). But they got cold feet; we had lost two weeks on the market and of course had to relist and go through the process again. There's nothing you can do though...you just get stuck hoping they don't change their mind. I think in our case the conditions were to be removed at 9pm and they pulled the plug at like 8:55pm. I have no idea why you would wait until the 11th hour and drag it out, but it was frustrating.

[GGG]

Couldn’t you demand more explicit terms?

For the buyer to back out he needs to prove he could not obtain financing at x interest and the seller reserves the right to select a mortgage broker to validate financing could not be obtained.

or on Home inspection give the option of the seller to remediate a defect instead of canceling the deal.

Now whether the buyer accepts the more stringent conditions would be up to them but I don’t see why you couldn’t add more stringent conditions drawn up by a lawyer to limit the ability to back out and stipulate direct penalties for backing out.

Or even add a clause saying there is a $1000 penalty for backing out for any reason.

It’s really a function of whether it’s a buyer or sellers market.

[Bring_Back_Shantz]

It kind of sucks guys, but that's what you signed up for when you accepted a conditional offer. Sure there are standard sets of conditions, but there's nothing stopping you from specifying specific conditions only, or none at all.
If you don't want someone to be able to walk away from a deal, then don't accept conditional offers.
Yeah, it'll make selling your home harder, but that's the trade off.
Easier sales come with some risk to the seller.
Harder sales come with some risk to the buyer.

As the seller you get to choose which of those you want.