Real Estate Bubble, and how Buyers Make It Happen

I am looking for a small bungalow in Alderwood area for one of the clients and the situation on the market reminds an old high school joke:
–  Do you date anyone?
– No
– Ok, then I won't date you either…
But then when someone is "wanted", he/she is "wanted" by everyone.

Bubble

Property 1 – listed for $499 900, 5 offers, sells for $585 200!!!! "as is" condition – read – falling apart

Property 2 – listed for $489 900, 14 offers, sells for $562 700, again "as is" condition, slightly flooded and smelling accordingly

Please, note that this is an area of old bungalows, lots are mainly 42×130 – 140, houses are over 50 years old, most of them 3 bedroom, with square footage under 1100.

There is a number of recent sales in the area (less then 60 days) for the properties similar to our Property 1 and Property 2, but fully renovated, top to bottom, price range $550 000 to $575 000. Homes listed over $585 000 are just sitting there and not selling.

Property 3 – listed for $589 900 is on the market now. Fully renovated, looks amazing. Just checked with the agent – no offers….

To bring property 1 and property 2 to the condition of property 3, the owners would need to spend minimum $70K not including the labor. You could do the math….

Both property 1 and property 2 were bought using real estate agents. I am guessing doing a market analysis for your buyer is not "trendy" anymore….

Please, make sure the property you are buying is worth what you are paying for it, or at least has some potential – get your free market evaluation.

More on Home Value
Home Appraisal – Why is it Important to Know Your Home Market Value

More Tips for Home Buyer

12 Steps To Buy Your First Home
Types of Homes – Learning Real Estate Terms
First Time Home Buyers – Wonderful Video For You by CMHC
Discount Real Estate Brokers – Illusion and Reality or Free Cheese, Get now – Pay later
Moving Checklist –  based on the list from Martha Stewart
Some More Mortgage Terms and Rates
Mortgage Basics
Your Home and Maslow's Hierarchy of Needs
10 Reasons Why You Need a Realtor to Buy a House

More Tips for the Home Seller:

Home Seller Tips – Take Lots of Photographs of Your Garden
Closing Your Pool for the Winter – Homeowner Tips
National Do-Not-Call-List – Do You Really Know What this is?
Video Tours, Virtual Tours or a Combination of both
Making Your House Buyer Friendly – 10 Seller's Best Friends
Please, Don't Let the Cat Out – you gotta be kidding me!
Handymen Gone Handless or possibly brainfree!
Moving Checklist
Discount Real Estate Brokers – Illusion and Reality or Free Cheese, Get now – Pay later

Compliments of Marina Gavrylyuk
Real Estate Agent with Sutton Group Summit Realty

www.MarinaG.ca

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