Nanaimo Real Estate Blog
The news seems to have a never-ending stream of stories of buyers making unconditional offers on homes that sell for hundreds of thousands of dollars over asking price. Simply put, this is a dangerous game for buyers to play as it can end up costing them thousands of dollars after the fact. Some sellers have decided that even full-price offers are undesirable! Lindsie Tomlinson, a realtor in Vancouver, recently wrote about a North Vancouver seller who turned down 4 offers and then contacted one of the potential buyers the next day and advised that if the buyers added an additional $100,000 to their offer (which was already well above asking price), that they would accept it. Needless to say the buyer walked away from the property. We are hearing more stories from Mainland agents that suggest that home sellers are not seeing the dozens of offers on a home far above asking price as they were even 6-9 months ago. Sellers who fail to heed the changing market are beginning to see their home sit unsold on the market.
Muhammad Ali was passionate about real estate. When he visited Vancouver in 1972, he was awestruck by the beauty of Stanley Park and commented that “it would be a great place to train”. In fact, when he returned 2 years later, he stood outside his hotel and did magic tricks for the children walking down the street – much to the amazement of the parents! Earlier this year, Ali’s childhood family home was purchased and renovated so that it looked identical to when a young Cassius Clay lived there in Louisville, Kentucky in 1955. It is a 2 bedroom, one bathroom home and has been repainted the bright pink color it originally was. A Las Vegas investor and longtime Ali fan co-own the home and have turned it into a museum whereby visitors can tour the home exactly as it was when Ali lived there. They also purchased the home next door and have turned it into the gift store. Interestingly, the museum opened for business in May, shortly before Ali’s passing.
Happy Canada Day to all of you! While you enjoy the holiday to mark the start of summer, I hope that you read a book, spend time with family or get out and explore our beautiful city. If you are going to read over this long weekend, I have a book selection that I would like to share with you. I read a fascinating book entitled "Decisive" by Chip Heath & Dan Heath. Psychology research has shown that it is "hair trigger" or "short term emotions" that really do affect our decisions in life. In the blink of an eye, our brains literally scan our biases, irrational fears, beliefs and replay past experiences to create the catalyst for our decisions. With the internet now a source for everything, most of us actually use it to reaffirm the beliefs that we already hold, and simply ignore or downplay any information which we deem not in alignment with our beliefs. A good example of this (which can also be quite dangerous without seeking the professional advice of a doctor) is when you have a rash suddenly appear on your arm. A quick search of this condition on the internet, and you can easily confirm that the rash appears to be similar in nature to that of a heat rash, or if you are a little more pessimistic, you can find another website that will confirm that you are indeed dying of a rare disease.
Canadians are avoiding a record high household debt SOLELY due to the increased home values seen across many parts of Canada. Stats Canada reports that for every $1.00 of disposable income, Canadian households possess $1.65 in total household credit market debt. What is household credit market debt? This type of debt includes consumer credit (all types of credit cards including stores), mortgage and non-mortgage loans. It really means that many of us are adding to our debt to maintain a standard of living that is simply not aligned with our earning ability. What has changed? For many Canadians, we are buying into the notion that our credit cards REWARD us for our thrifty actions. A lot of consumers use credit cards like debit cards – whether it is to buy a coffee at Tim Horton's or groceries. If we use our credit cards, we earn "reward points" that can be used for things that we often want (but likely don't need). What most people don't realize is that UNLESS you diligently pay off your credit card in full each month, the potential "reward" from using your credit card is overshadowed by the excessive interest charges that continue to accrue. Credit card companies market a lifestyle to consumers that is false and can be dangerous to your finances and relationships.
I hope that you enjoy this week’s article which I dedicate to Father’s Day this coming Sunday about what the toughest SOB taught me about real life, and in turn, anything you do. “Muscles McCullough” as he was infamously known in our working class neighbourhood of Thunder Bay, Ontario, was not a tall man, maybe 6 ft, was head of the boxing club and school gymnastics and probably not the guy you would want to fight. He also happened to be my dad.
It’s official. The Playboy mansion, owned by Hugh Hefner, has finally been sold. At 90 years of age, Hefner had added a clause to the listing that would require any owner to allow Hefner to occupy the property for the balance of his life AND keep the famous Hefner bedroom untouched until after his death. Originally listed for $200 million, the selling price has not yet been revealed, although the name of the buyer has. It turns out that the next door neighbor, Daren Metropoulos, who is only 32 years old, purchased the Playboy Mansion because he wants to reconnect the 2 estates which was the original concept of the architect and original owner. The Metropoulos family has owned Pabst Brewing Company and co-owner of the Hostess Brands (company who makes Twinkies) and an investment company. Did you know? The first owner of the “Playboy Mansion” was Louis D. Statham, a celebrated chess player who worked for NASA as an engineer.
It can be an overwhelming decision to purchase a home, regardless if it is your first home or your last one (you hope). Over the years, buyers have shared with our McCullough Team members some of their greatest fears when buying and we thought it might be a good idea to share with you and see if any match your concerns. 1. The "Stalker" Home Seller. Without question, having a seller present during a showing can create a huge sense of unease for a buyer. There is the type of home owner who will take the realtor and buyer through the empty home and point out each of the non-furnished bedrooms and tell you that the mold on the windows is "nothing". There is also the type of home owner whose initial greeting is to tell you that they have priced the home at market value and won't take a penny less. For many buyers, dealing face-to face with a seller can be a huge fear, especially if they don't really like the home!
You are cordially invited to our RE/MAX Customer Appreciation Celebration to be held on Saturday, June 11th from 11:30-3:30pm at RE/MAX of Nanaimo (1-5140 Metral Drive). There will be lots of FREE entertainment and FREE food for the whole family including a BBQ, petting zoo, amusement rides, face painting, rock climbing, games, and balloons for everyone. Everything is FREE and it is a great way to enjoy the sunshine with your family! Please stop by and say “hi” to us, enjoy some lunch and help us welcome Kiel Lukaniuk, the newest member of our McCullough Team! For more information, please feel free to give us a call at 250-751-1223 or email us at email@example.com or firstname.lastname@example.org . We are truly thrilled to be part of such a great RE/MAX organization and each time our McCullough Marketing Team sells a property or home, a donation is made to the Children’s Miracle Network as well as local charities and youth organizations. As a result of contributions like ours, the hospital was able to provide family-centred care, life saving equipment and research for children and families throughout BC. Almost 500 local children in our area were assisted last year alone. To date, our RE/MAX of Nanaimo office has contributed over $550,000 to this worthwhile cause! Looking forward to seeing you Saturday, June 11th!
Over the past 36+ years in real estate, I have prided myself on the exceptional clients that I have had the opportunity to work with. Many of my clients have become great friends, and I have had the privilege of helping their children and even some grandchildren with their real estate needs. Over the years, there have also been a few of the “unreasonable” clients that I simply wanted to have disappear into the Bermuda Triangle and never return. I thought that you might enjoy a story or two of the worst real estate clients I have ever had, as I think that that many of us have met a CHEATER, LIAR or a simply INTOLERABLE character throughout our lives.
Earlier this week, the BC government outlined changes that will take place beginning May 16, 2016 that are targeted towards stopping the rampant “shadow flipping” that was prevalent in Metro Vancouver recently. It does appear that the government had no choice but to intervene in the matter following a scathing article published in March by the Globe and Mail detailing the shady real estate transaction. However, it won’t be enough to slow down the insatiable thirst for home ownership that has prices skyrocketing in Vancouver and even parts of Victoria.