Hot Price on a Coquitlam House

We’ve got a new listing at 1958 King Albert.  MLS#V678457.  We’re asking $510,000. Approx.2500 square feet, about 35 years old, and just over 7,000 square feet of lot.  For more info contact Aaron Best at 604-790-1295 or see the pics at www.aaronbest.biz  This one probably won’t last too long.

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50 Comments

Filed under For sale, New Supply

50 responses to “Hot Price on a Coquitlam House

  1. Jack

    sounds a lot hotter than the lot around the corner of me: V676916; Renovation special or builders. 47.1 x 132′ lot (6230 sq ft.) in brow of the hill. Sold as is, where is & buyer to verify all listing information.
    the place has been looking condamned ever since I moved in the area, a year ago.
    $428,880. I need some of the stuff they are smoking 🙂

  2. Wise Guy

    Will they take $240,000?

  3. Grin and Bear It

    Seems like a steep price. I cannot get over the asking prices for the North Surrey residences. Not too far from that mass killing that happened a few weeks ago. That entire area is just horrid. I worked there for a year and it was pretty appauling. Good luck to whoever buys out there! 🙂

  4. robchipman

    Wise Guy:

    There’s only one way to find out. Write an offer. There are a lot of people who recommend low-balling. Consult with them and away you go!

    G&B:

    What makes you think its steep? I actually think its very well priced – which is why I’ve posted it – and I think it may well generate multiple offers. Of course, this isn’t North Surrey, either, but Coquitlam, and a quiet street.

  5. Priced Out

    Its about two blocks away from me. In relative terms it seems less insane than most prices around here. The description indicates its a fixer-upper. Is it habitable?

  6. WoW

    Rob, any idea of how much would a teardown (ie. a lot) in a nice area of east-van cost me, that would allow a 3,500 sq foot house to be built? How about on the west-side?

    thanks.

  7. YVRcom

    “Priced below city assessment.”

    Well, Coquitlam said, Coquitlam knows.

  8. passerby

    There are no pics. “There are no photos available for this property at this time”.

  9. robchipman

    passerby:
    Sorry about the pics. Its a brand new listing. They’ll be up soon.

    YVRcom:

    Some people think market value is always/currently higher than assessed value, so its a good advert. Its also worth noting that the value doesn’t come from Coquitlam. It actually comes from BC Assessment Authority, which determine the values of all the taxable properties in BC. If they do a good job of relative valuation it begs the question: how many other properties are listed under assessment? Like I said, this is a hot price.

    WoW:

    Depends how you define “nice area”. You could get one for about $500,000, with 33’frontage and 122’or thereabouts depth, but probably on a main street. Off a main street you’ll have to add $40,000+.

    Priced out:

    Definitely habitable. Good structure, from what we can see, but it needs updating/clean up.

  10. YVRcom

    Yo, Rob… I know, I know where assessments come from… but well… the city of Coquitlam… the awe of the authority…

    Off topic – 2007 was indeed a surprise, that said, I find this one interesting to look at: http://tinyurl.com/36a3lq

    back to my corner….

  11. Jeff

    I have 3 listings right now that are overpriced. I’ve been trying to get price reductions from all three for months now.
    All three are not motivated. Any suggestions?

  12. /dev/null

    Any suggestions?

    Have Fish stop by and drop a stinker of a lowball on them?

  13. blueskies

    Any suggestions?

    over 90 days? not selling?

    i’d fire the realtors’ sorry ass 🙂

  14. paulb

    Hey Jeff,

    Send them the rollercoaster video thing from you tube! I am a Realtor as well.

  15. Jeff

    blueskies:
    I’ve thought about ‘ripping my sign out of the lawn’ in absolute disgust… lol
    But, I’m not the type of Realtor to cancel the listing.

  16. blueskies

    sunday open house at the Pomaria
    4 RE agents sitting in lobby commiserating
    walked up to door to check sheets
    3 agents get up
    2 head to open door
    almost felt like i was going to be Tasered by a RE agent….
    oops! sorry……wrong building….. my bad!
    beat hasty yet dignified retreat….

  17. Jeff

    blueskies:
    I think the 4 of them hang out there every weekend.
    I checked out the suites a few weeks back and I would consider buying at about 1/3 the price.

  18. vanreal

    Rob I have to say I don’t think you know the E Van market if you think you can pay 540,000 for lot value. Try adding another 100,000. To get anything liveable in a nice area try 800,000. Maybe you should stick to what you know i.e. North Van

  19. blueskies

    http://tinyurl.com/2eob8a

    $100 oil today?
    keep on keepin’ on…..

  20. coco

    Canada’s Dollar Falls to Six-Week Low as Retail Sales Decline

    http://tinyurl.com/23hjp3

    (Not surprising since cross border and U.S. internet shopping eventually takes its toll)

  21. coco

    BoC may lower rates if they see further damage to the Canadian economy from a variety of things, including subprime losses/credit crunch, damage to the economy from the high dollar, loss of exports to the U.S., etc. etc. Cut would be minimal .25%.

    They may hold until January too.

  22. coco

    More Economists See U.S. Recession Ahead

    http://tinyurl.com/2nlkq9

  23. coco

    AIG, the largest insurance company in the US, recently admitted to losing as much as $1.4 billion in mortgage-related losses.

    AIG is now getting sued over subprime losses.

  24. coco

    Ainsworth to shut down 100 Mile House OSB mill over holidays

    http://tinyurl.com/2m2htt

  25. coco

    More hard times coming for B.C. sawmills

    http://tinyurl.com/399wpn

  26. Jeff,
    Instead of withdrawing those 3 overpriced listings, you should welcome the opportunity to use them as cheap advertising.

    If it costs you just $25 to list each on mls, that’s quite a bang-4-your-buck, isn’t it?

    Not bad to pay $25 for 90 days of seeing your pretty face on mls and those signs on sellers’ lawns!

    SAD that those ‘clients’ will find out the hard way when they end up getting much less moula for their properties!

    I don’t like some sleezy realtors, but I’m also sick/tired of people who blame the realtor when their over-priced properties do NOT sell!

    S@#T sells, IF it’s priced right……

    As they say, houses sell themselves…..

  27. robchipman

    Vanreal:

    “Rob I have to say I don’t think you know the E Van market if you think you can pay 540,000 for lot value. ”

    Now that is funny! Thanks for the lob 🙂

    If you can get by with less than “standard” length, you can get lots in the high $400s ( V674004, V677556, V665094); if you want 33′ x 120′ or more you can get them around $500,000 on a busy street (V668095, V675610, V667301) and if you want a quieter street you need to pay more in the mid-$500s (V676313, V633378, V676941).

    So….when are we writing an offer? 🙂

    Jeff:

    Great question. I think Prettywoman is both right and wrong. I remember Dick Burnham once saying that a sign like that wasn’t good advertising at all. What it really said was “Jeff can’t sell real estate”. That assumes a knowledgeable consumer, and frankly, I think that the consumer is becoming increasingly well-informed. The idea is that the sign/add/listing is seen by prospective sellers who say “I’d never call Jeff – he’s a time waster who takes over-priced listings and I want a sale”. If you buy into this you should de-hire the over-priced, un-motivated clients (and ask yourself where they got the price and why it was overlisted to begin with. Do you have any blame there?)

    The other knock against over-priced listings is that it hurts your personal list/sell ratio. If I want to price something well, and demonstrate that I sell 95% of all my listings, while the market is doing 50%, my argument is stronger than if I’ve got a list/sell of 60%.

    On the other hand, Marilyn Jennings sees it another way. If the seller isn’t motivated, but is a good seller (defined as someone that you see eye to eye with, is on the same page as you are and whom you like), you keep the listing and use it to generate additional business. Both you and the seller are doing the same thing in that case, so you’re doing what you’ve promised.

    The real question is: what did you do right when you took the listing, and what would you do differently? I think it goes back to the start and that has to govern your future actions.

  28. WoW

    Thanks Rob. As I’ve indicated before, I’ll be contacting you as my buyer’s agent – I do think you know your RE inside out.

    That said, with the winds blowing as they are, I remain steadfast (but to this point, proven wrong) in my view that RE is set for a period of cooling. Hope the numbers bear out for me, and that I can pick up a great lot at a great price. My expectation is 7-15 months, I don’t think we can avoid the US economic situation, and I’m surprised that ‘investors’ (read as ‘speculators’ or ‘bubble chasers’) haven’t started to head for the exits in droves. Until inventory goes up a few thousand (say, 15,000 in your area), the market remains in pretty good shape for sellers. Like a good bear, I will remain in hibernation until then.

  29. Jeff

    Thanks Rob and prettywoman:
    I’ve sold a lot of properties this year and I have a 100% list/sell ratio so far.
    I took these 3 listings with the knowledge that they were 10% overpriced and clearly advised my clients of my opinion on pricing.
    I took these listings because I saw this as a new trend in pricing, the overpriced listing as we head into the end of the cycle.
    Rob, are you seeing more overpriced listings that aren’t selling lately?

  30. robchipman

    Jeff:

    Its worth trying to maintain the 100% sell/list. Its also good to hear that you knew what you were getting into. Pricing a listing is always (repeat, for those who don’t actually go to listing presentations with opinions of value: ALWAYS) an exercise in guessing what the future holds, so we shouldn’t expect 100% accuracy. Things change.

    When you say you shared your opinion with the sellers I have to ask: does sharing the opinion mean that a) they actually received the message 2) understood the implications and 3) agree with the concept? While we can agree that communication sent is seldom received at a 100% rate, at the same time we often act as if it were. When the seller tells me the benefits of high pricing I like to make sure they also understand the risk, even if that means showing them gory pictures.

    I guess where I’m going with this is that when I take something over priced I always make sure that we all know what kind of a challenge it is (and it will be no surprise to regular readers that I sometimes beat that issue pretty much to death). Surprisingly, that can result in a very well-priced listing instead of an over-priced listing, because the drawn out discussion (complete with stats like the ones you see about days to sale, avg.LP vs avg Sp, and the respective stats for over-lists, regular sales and over 90s) can be very educational for the seller, and can make them re-evaluate their plan of attack.

    Direct answer to your question is that, yes, over-priced listings are more difficult to sell these days, but that’s a normal function of a slowing market (I think). I also think that anytime we have a lower sell/lists we’ll see slower over-priced sales and a higher % of over 90s, regardless of whether the “lower”sell/list is still high (like yesterday’s) or low (like Monday’s) or if the absolute number of over 90s is slipping. Of course we’ll see more correlation between those numbers when we look at them over a longer period rather than individual days, but you get the idea.

  31. robchipman

    Pictures are up for this listing at http://www.aaronbest.biz/Properties.php/Details/67/

    Take a look and see what you think. I’m curious to see the blog’s response to truth in advertising 🙂

  32. DaMann

    Wow! It might be a fixer upper and priced right ( comical, but such is the market) but couldn’t they have at least cleaned up the place? Every picture looks like a dump! Currently rented or the owners living there?

  33. Priced Out

    I bet its rented. The clutter doesn’t bother me unless it hides real problems. Looks like it might need a new roof and deck. Don’t take a chance with an old deck, someone I know learned that lesson the hard way.

  34. coco

    Looks like there is a leak problem behind the stucco due to staining/streaking I see on the stucco in the photos.

  35. An

    Rob/Wow:

    Rob’s prices are for 33foot lots which in the majority of Vancouver’s housing zones won’t allow for a 3,500 sq foot house. If you’re looking for a lot to build a 3,500 sq foot house you’ll be looking at higher prices.

  36. robchipman

    An:

    Great point. For most Vancouver SF zoning take frontage x depth and muliply by.6, I believe. 33X122 = 4,026 * .6 = 2,425 sq. ft. house. 3500/.6= 5,833 sq. ft. lot, which means something around 47 foot frontage. There aren’t a lot of those in East Van. “Standard” East Van lots are 33 x 122 (although the term standard is over-used).

  37. Tony Danza

    “I actually think its very well priced – which is why I’ve posted it – and I think it may well generate multiple offers.”

    Why do you believe it is very well priced Rob? Any analysis to back that up?

  38. robchipman

    Well priced in relation to what you’ll pay for other properties on the market, or, in other words, on a comparitive basis.

    You and I have already done the income analysis part, and as far as I can see, we agree that the investment metrics aren’t great right now. Rent multiplier on this one is 393 (that metric is pretty much an equivelant to cap rate for residential properties, as I’m sure you’d agree, and should be, at the least, under 200).

    Any analysis on a comparitive basis to show that I’m wrong? Or is comparison an invalid approach for valuation?

  39. Tony Danza

    “Or is comparison an invalid approach for valuation?”

    It absolutely is invalid for investment purposes.

  40. blueskies

    ok did the tour… 90 days on market than 180 days on market.

  41. robchipman

    Tony:

    The question was “is comparison a valid method for valuation”, not whether it’s a valid method to value an investment. Any chance you might answer that question? 🙂

    The other question is: are we off on the comparitive valuation? Is it well priced, over-priced, or are we leaving money on the table? Any thoughts?

    blueskies:

    If you want it you better hurry up. Its not likely to last long.

  42. blueskies

    i would need to see the previous sales history.

    2001 price + 3% appreciation per year compounded to 2007….. that’s my final offer.

  43. robchipman

    blueskies:

    I guess you’re not writing an offer on this place, then.

    3% per year? You’re pretty much setting yourself up for never buying a house. I can’t remember when we’ve been below the high 4 percentile rate, and that’s for the worst quality property in bad areas. Generally we’re right around 5%.

    The approach that you should pay what someone else paid plus a certain appreciation rate is…special as well :-). How do you know that the original buyer didn’t over or under pay? How do you kow that the annual appreciation rate you’re picking is accurate when combined with the previous buyer’s purchase date?

    If I were to say that the property sold in 1982 for $105,000, what’s it worth today? To get to $510,00 we need about 6.5%.

    If it sold in 1992 for $230,000, what’s it worth today? At 6.5% we get to $590,000.

    But to get from $105,000 to $230,000 between ’82 and ’92 we’d need about 8%.

    And 3% per year from $1982 would be $220,000 today. I bet you would buy then! 🙂

  44. blueskies

    How do you know that the annual appreciation rate you’re picking is accurate when combined with the previous buyer’s purchase date?

    I don’t, which is why i’m using a proxy approach… I know that 99-01 prices were stable
    so let’s try 4% per year compounded to today

    and what would the house rent for today?

  45. Tony Danza

    “You’re pretty much setting yourself up for never buying a house. I can’t remember when we’ve been below the high 4 percentile rate, and that’s for the worst quality property in bad areas. Generally we’re right around 5%.”

    I thought you said you’ve been around for awhile? Haven’t seen below high 4% appreciation?

  46. robchipman

    TD:

    Annual appreciation over any extended period in the Lower Mainland is generally, as I say, in the 5% area. Its a pretty narrow band. I draw that from 27 years of MLS figures, the majority of which divide the area up into several sub areas, three building types, and 4 qualities.

    Blueskies: The house would rent in the $1300/$1400 area, anyway. That said, I’m not going to make a rental justification for it – the numbers just aren’t there. Why ’99-01 as “stable”? First question, are we talking three years (’99, ’00 and ’01) or two? If three, and if stable means stagnant, can it also mean “not normal”? You see where I’m going. The start date is pretty important, and so your reason for picking a particular date is pretty important (if you said that metrics were fair for all aprties then I might go with you , but as I recall they were actually screaming “buy!”) Expand on your thinking – its an interesting point.

    If you base it on actual sales price, though, you’ve still got the challenge of depending on the guy before you to make a good or bad deal. If he beat the market on his buy you’ll underprice, and if he got taken for a ride you’ll over-pay (unless I’m misreading you).

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