Rob Viccars

This past week I investigated a couple of the 'discount' condo sales that are currently all the rage.  As the market has dropped, and hopefully, at this point leveled off and stabilized, developers are still trying to unload unsold product, and it seems with a relative amount of success.

I took a client to go through the receivership sale at the Sophia at 298 East 11th ave.  They had about 25 or so units (1 and 2 bedrooms and townhouses) and we were mostly impressed by the units and the pricing, a 1 bedroom starts at 295K, 2 bedrooms at 425K and the townhouses are 499K.  All the units are finished nicely.  They all have the same dark wood floors and granite counters.  The colours they are unlikely to offend any potential buyers and have mass aesthetic appeal.  After going through about 10 of the 1 bedrooms they all blended into one.

While I can't complain about the product, I do have some minor issues with the marketing.  Realtors were first notified about the sale about three weeks ago.  There were two previews for realtors and their clients, the first was on Thursday, March 26 and the second on Thursday, April 2.  After that they opened for the public.  Here's my complaint, initially the units were to be sold-off in a "1-day sale" on Sunday, April 5.  However, after the first preview on March 26, the rules were changed and offers were taken on a first-come, first-served basis.  By the time of the second preview on April 2, virtually everything already had an offer on it and I'd be surprised if there was anything available by the time of the public open house. 

I think some buyers missed out an opportunity (mine decided the building wasn't for them) and wound up disappointed because the rules were changed in the middle of the game.  I will say that the Receiver Manager's (The Bowra Group) goal is to sell the units as quickly as possible.  It's their sale and if they want to change the procedures mid-stream they are well within their rights to do so, but I'm sure they faced off with more than a few angry and disappointed buyers.

I also went by The Beasley presentation centre downtown as I have a client interested in downtown studios and one bedrooms.  The Beasley has been offering what they claim are deep discounts (their website indicates buyers can save 100K - 250K).  As far as I've heard sales have gone well for the last round of pre-sales and a final release occurs on April 5.  They even have a tent set up for people to camp out until Sunday morning.  I counted about 4 people already on line and this was Thursday afternoon.

I have to question the wisdom of buying a pre-sale in the current market.  The developer requires 5% down on an accepted offer, another 5% 90 days later and an additional 10% one year before the building completes in 2012.  Assuming the market stays relatively flat for the next 3 years couldn’t that money be better invested?  The days of flipping assignments for profit are over for now.  In my opinion, it’s hardly something worth camping out for three or four days in downtown Vancouver for.

Note -  It's been a long time since I've written on my blog, but as I'm revamping my marketing for a web 2.0 world, I thought time was right to get back at it.  Starting today, I'll have regular new content regarding the Lower Mainland real estate market and whatever else comes to mind.  Next week, I'll be launching a video blog.  I'm not sure yet if the video blog will replace my current blog or if I'll do a combination of writing and video.  Check back next week.