Buyer Case Studies
JOSH AND JESSICA
Young family searching for a house
Josh and Jessica are a couple in their early 30’s who are both employed and have a 4-year-old child. One of them works in Richmond and one in downtown Vancouver. They owned half of a two-bedroom home in Vancouver which gave them the funds for a higher down payment, but with a lower income. They were looking for a house or a large townhouse with a yard and room for a second child. Unfortunately, they both liked different areas and were having a problem agreeing.
- To refine the area to one that both found appealing (Ladner).
- To view homes that each partner fancy to establish to the other their expectations and requirements.
- Ensure “plan B” for temporary housing once the condo completes until we find them a new home.
We focused on homes in Ladner under $950K, ideally with a suite to provide an extra income stream as a buffer because of the lower family income. We patiently waited for the right home and found them a superbly built home under $900K, near good schools that needed some renovations.
Married professional seeking a unique loft
Mikaela was living in a condo that was not suitable for pets. She desired a townhouse and loved lofts. There was very little suitable inventory available.
- In a more active market, to buy before selling.
- To put plan B in place, ensuring bridge financing if the two-bedroom didn’t sell in time.
- To monitor new listings and market client needs through a network of realtors and clients.
We found an off-MLS, rare loft townhouse in downtown Vancouver that was below market value. Mikaela redesigned it entirely and loves her new home. The listing agent was in-house at my brokerage which proves the importance of network marketing.
Sam had a 10% down-payment and a budget below $350K. He is a self-employed individual who had saved the down payment and wanted a home for him and girlfriend in North Vancouver. The market was heavily competitive at this time.
- To view new listings every weekend and compete only when it was realistic.
- To get the firmest pre-approval possible from a strong lender relationship.
- The original condition would be ok as Sam is in the construction business.
- To look for areas of North Vancouver that will appreciate fastest based on the knowledge of city plans, demographics, human behaviour, city planning and intuition.
We competed with 17 other offers by writing the offer without subjects (with a firm Plan B in place), doing an inspection before offer date, and being able to complete quickly on an estate sale. Sam successfully got a 1-bedroom with a massive patio under $350k, before the market took off more. The day after completion, he was notified of developer buyout interest. His down payment investment multiplied X 6 overnight.
Seller Case Studies
Investor looking for the right time and strategy to sell
Ethan had purchased two investment units in the Olympic Village during the presale. At this time the market was roaring while the talk was coming of government measures to cool the market. Both units were rented with actively good incomes. However, Airbnb regulations were on the horizon. One of the units faced a wall.
- To sell the less-desirable unit quickly and hedge against the market.
- A dual-pronged marketing strategy directed toward someone who wanted to get into that specific area and was willing to compromise by taking a smaller space, and toward an investor who would value solid rental revenue.
- Marketed the unit at a price just below market expectations of what entry-level pricing would be for newer construction in Olympic Village.
- Listed slightly below market value and line up with any other similar listings and attract buyers.
- Advised the seller to review offers after the first weekend of open houses.
The seller reviewed 11 offers on Monday evening following the first weekend of open houses and sold for $62K above list price and at least $3K above market value at that time, in one week. My intuition was correct as the Foreign Buyer Tax was introduced suddenly one week following completion of this sale and the market immediately cooled.
Nonresident sellers with a condo that showed poorly
Ayla owned a one-bedroom unit in Kitsilano, North of 4th with bridge-to-bridge forever views, that was in its completely original state. The retired non-resident sellers opted to sell due to the new empty homes tax, but only if a certain number was achieved.
- Advised the sellers on the market and a realistic sale price that was below expectations but still a larger return on investment.
- Brought in my Home Team – painter, stager, handyman, electrician, cleaner – to prepare the unit for sale as an original but well-kept unit. Our marketing strategy was to showcase the property as original but well-maintained to allow buyers to make it their own, rather than reduce demand by doing work that buyers may not like.
- Project managed the refresh for the sellers, who live in the USA.
- Provided advice on non-resident tax implications and referred to a lawyer and tax accountant for further advise.
- Advised the sellers to wait for offers until after open houses.
The sellers received ten offers; we used relationships with realtors to achieve a sale price of $131,000 above list price and $40,000 above the seller’s high expectations in one week.
ANTHONY AND NORA
The sellers were a divorcing couple, living on the East side of Vancouver. They needed to sell their well-renovated 1940’s home in Fraserhood with a gorgeous, landscaped yard. The timeline was flexible, and they began preparations early in the year. The seller’s expectations on price were likely too high for the market.
- Advised my clients that February and April/May were the two best times to list this home.
- Advised the sellers of the ideal list price, however, listed the first time at a price chosen by them.
- After three weeks, took home off the market to wait for new buyers to come to market in April/May after repainting the exterior to sell the home as move-in ready.
With a slightly more active market and a price at market value, the home attracted two offers in one week and sold $50,000 above listing price.