One more suggestion. Please dont depend on some blogger who has lot of time on his/her hand and writes BS on the web. The article is offensive including the picture. Even the person who wrote it calls himself/herself as kwoo. Scared to provide real name, I guess.
So much for the advice.
DIO
http://www.realtyexecutivesapex.com/search_mls_map_form1.php
Total Calgary listing is more more than 15K including mls,welist and private sale. Some people took out condo from market as they are looking for spring.
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EXACT same pattern as what we have witnesses in previously hot US markets.
1. Many years of steady price gains
2. Belief amongst general population that RE only goes UP
3. As price gains start to accelerate, people panick and start bidding up prices even further.
4. Prices accelerate to hights WAY beyond fundamental justification. (ie. price/rent ratios or income growth)
5. When 80% of people in city are "priced out" the market starts to stall.
6. Inventories start to build
7. Both buyers and sellers are very confused about market, and the "bid-ask" spread widens, causing inventories to skyrocket, while prices remain flat to slightly down.
THIS IS THE PART OF THE CYCLE WHERE CALGARY IS NOW!!!
How do we know what's going to come next? Easy, we have a perfect display to the south of us. They are about 2 years ahead in the cycle as us.
So let's figure out the next steps:
8. Prices start to decline month to month, but media keeps spinning the "Year over Year" comparisons where prices will remain up for another 8-10 months or so.
9. After about a year, Year over year price declines become apparent, but the media spins the story that "prices are only down ~3% Year over Year so no big deal.
10. Banks start to get nervous as they watch their collateral values drop. Begin to tighten lending standards and once again require down-payments for most borrowers.
11. As credit tightens and potential buyers get scared, the prices start declining faster. This is a vicious cycle for the banks, because as prices drop further, collateral values on mortgages start to be more impaired, so they tighten further, causing further prices declines and so on.
12. The realtor reminds everyone that "RE is the best investment, and never goes down over the long run"
13. Builders start slashing prices / offering incentives to lure buyers to their over-priced piece of sh*t product.
14. To compete with new builders, existing sellers are forced to reduce asking prices, although reluctantly and only by small increments at a time.
15. At some point over the next few years, prices will drop to a point where the average family can again afford to buy using traditional borrowing methods, and the inventory will eventually clear, allowing the market to "normalize" and houses to once again appreciate at approximately the rate of general inflation.
We know the steps, the question is how long will this take to play out?
Location: Canada-Glorious and Free
Posted on: 27-09-07 14:49:14
Sorry I had to edit this post by rahul but i can tell that Rahul has NEVER bought a property in his life. I wonder how long and hard he had to think about these "negotiating techniques"?
1) Do you know that if you back out of a firm offer - which is what it the contract is called after you've had your chance to discuss any issues with the seller, that you will LOOSE all of your deposit? Depending on the loses that the seller incurs after his next deal, he can come after you for more money to make up the difference. You'll loose not only your shirt but your shorts too. Mess with someone like me and I could wipe you out.
2) It is never just a buyer or a sellers market. The buyer is paying money for something he/she wants. Why else would you even consider putting an offer and a deposit? Once you put in an offer - the seller can accept of decline. The buyers only one choice - to put the offer. The seller has the power to accept or decline. If the seller declines - he looses nothing. He continues to live in the house you want! And you move on to look for another condo.
3) Like DIO was saying about the desi family. I sell and buy my properties based on the first offer only. I only give or take one offer. That offer is accepted or rejected and that is it. I make it clearly known to the other party.
4) What is the 5 days for the deal thing?? 48 hrs is the standard. Most times, it takes me about 4 - 5 hours in the most complex of deals where there is VTB and other fancy finance involved. The seller makes you sweat if they don't give you an answer quickly - because you cannot do anything in the meantime. Not the other way. Think about that for a minute.
5) I find negotiations and good information before putting the offer is the best way to get a deal. This is when things are informal and there is no legality involved. But you've gotta follow up with a deal that matches your conversation. You cannot come back with childish behaviour like Rahul is suggesting.
I am not advocating using an agent. I certainly have made deals without an agent in sight. But an agent is there to help you. Just like any professionals out there, there are good ones and there are bad ones. Your job is to find the good ones.
BV
Quote:
Originally posted by rahul_singh23
Buyers have the Power
Conclusion
Not everyone has what it takes to implement all of these price-busting techniques. However, the more of these you put into practice, the lower the price you will pay for the home you want. You will never see the seller or the seller’s realtor ever again. It does not matter if you offend them.
Quote:
Originally posted by Big Vee
Sorry I had to edit this post by rahul but i can tell that Rahul has NEVER bought a property in his life. I wonder how long and hard he had to think about these "negotiating techniques"?
Rahul did not have to think of the techniques. He spends office resources to search websites like this ( http://kwoo.wordpress.com/2007/09/25/a-buyers-market/ ) .
Quote:
Originally posted by Big Vee
1) Do you know that if you back out of a firm offer - which is what it the contract is called after you've had your chance to discuss any issues with the seller, that you will LOOSE all of your deposit? Depending on the loses that the seller incurs after his next deal, he can come after you for more money to make up the difference. You'll loose not only your shirt but your shorts too. Mess with someone like me and I could wipe you out.
LOL
Quote:
Originally posted by rahul_singh23
Buyers have the Power
Conclusion
Not everyone has what it takes to implement all of these price-busting techniques. However, the more of these you put into practice, the lower the price you will pay for the home you want. You will never see the seller or the seller’s realtor ever again. It does not matter if you offend them.
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Rajeev Narula, Broker, REALTOR®
ACE TEAM REALTY INC., Brokerage
10 Kingsbridge Garden Circle, Suite 704
(Opp Square One - HWY10/403)
Mississauga, ON L5R 3K6
Bus: 1-888-355-3155 Ext. 300
Fax: 1-888-443-3155
Email:
Web: http://www.RAJEEV.ca" rel="nofollow">LINK
Sept 27:
http://www.canada.com/calgaryherald/news/calgarybusiness/story.html?id=24ddd512-b6d7-4898-ba44-dbd21aa7da9e&p=2
"As of Thursday, the average sale price of a single-family home in Calgary metro over the last 30 days had dropped by more than $33,000 to $472,155 from the record high of $505,920 set in July. The median sale price in the last 30 days has dropped by $19,000 to $420,000 from the high of $439,000 recorded in June."
This is Sept 28th
http://www.canada.com/calgaryherald/news/calgarybusiness/story.html?id=24ddd512-b6d7-4898-ba44-dbd21aa7da9e
"I see no indication to indicate that the market will verge off its current course, however, sellers must be realistic in their expectations. The fall and winter of 2007 is dramatically different than the spring of 2006 and it is unlikely the market will return to that frenetic pace anytime soon."
