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Real Estate Broker Arbitrage in Vancouver

60 点作者 cpymchn超过 9 年前

14 条评论

gburt超过 9 年前
From the perspective written in the article, I don&#x27;t understand why the seller is portrayed as upset: they did the deal at a price they agreed upon. Just because another buyer came in &quot;after&quot; that had a better price changes nothing; this could happen in a non-assigned transaction too. This part, at least, is a natural part of the mechanism of price finding in the market.<p>It is an interesting question why the sellers are mispricing their homes by as much as 30%, but if you know anything about the Vancouver real estate market, it is perhaps not that surprising: numbers move very fast, a lot of inexperienced non-investors own property (that they have usually owned for a very long time) and have perhaps never been involved in a deal of such scale.<p>If I were the <i>buyer</i> in the first transaction, however, I&#x27;d be very upset with my real estate agent though: his job was to advise me, not to be my adversary in an internal negotiation. He did not act in my interest, despite representing himself as my agent. I would be promptly reviewing my real estate contract and the real estate laws in my province for words like &quot;fiduciary duty&quot; and given the size of the transaction, probably consulting a lawyer.<p>A stark reminder that real estate agents are <i>not</i> your friend -- and actually, that is true regardless of what side of the transaction you are on. They are almost always paid by the selling party and still even have non-aligned incentives even for that party: preferring to get a sale done quickly than to get a better price for their client (as they only earn a fraction of the increase, but there is a high fixed &#x27;minimum&#x27; property price in any given jurisdiction; a second sale will do much better for them than a 5% increase in their current sale).
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wired8超过 9 年前
Vancouver sw eng here. I&#x27;ve lived in this city for 14yrs, bought in 7yrs ago. My house has doubled in value since then. The min buy in has now reached the 1million mark and continues to climb. The ratio of real estate to salary is out of wack and the talent is starting to leave. Vancouver is becoming a playground for the wealthy.
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JTon超过 9 年前
Here&#x27;s an image from the article that explains it all:<p>&gt; <a href="http:&#x2F;&#x2F;www.theglobeandmail.com&#x2F;news&#x2F;national&#x2F;article28634862.ece&#x2F;BINARY&#x2F;w940&#x2F;image.jpg" rel="nofollow">http:&#x2F;&#x2F;www.theglobeandmail.com&#x2F;news&#x2F;national&#x2F;article28634862...</a>
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reverend_gonzo超过 9 年前
Where&#x27;s the seller&#x27;s agent in all of this?<p>The article mentions that the buyer&#x27;s agent find another buyer who will pay more than Buyer #1. So, what&#x27;s the problem with that?<p>The buyer&#x27;s agent has a fiduciary duty to the buyer, not to the seller. If the buyer&#x27;s agent convinces the seller to sell at a price below market, and then finds Buyer #2 to buy at market, and Buyer #1 picks up the profits, that&#x27;s a great agent ... for the buyer.<p>The seller should have his own agent, who&#x27;s job it is to find the highest bidder and to not sell below market.
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biot超过 9 年前
It sounds to me like the solution is to introduce legislation where the seller receives the final closing price (minus fees and commissions), not the pre-close sale price. Assign as many times as you want prior to closing the deal, but if that $2M house gets reassigned a few times and ultimately closes at $2.6M, that&#x27;s what the seller should receive. Essentially, the sale isn&#x27;t complete until the property is actually transferred.<p>This would protect the interests of the seller and align the agents with their interests, something which is required to happen in theory but seems lacking in practice with rules easily skirted by an agent making laughable claims like &quot;oh, I wasn&#x27;t aware that I would be interested in having a financial stake in this property until an hour after the buyer accepted the offer&quot;.
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matrix超过 9 年前
And to think that I thought the Vancouver real estate market was crazy back in 2005...<p>This story is very relevant to tech. As much as I would love to, I wouldn&#x27;t even think about locating a new business or office in BC today. And I&#x27;m sure I&#x27;m not alone. Attracting and retaining good employees is just too difficult when housing is more expensive than San Francisco - in a city where pay and buying power is much, much lower.
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maxerickson超过 9 年前
I wonder why the sellers are miss pricing their homes by so much? I guess there is an aspect of trusting the agent too much, and a lack of experience making such lucrative deals (I think I&#x27;d still love the chance to make a horrible deal on $3 million of appreciation).
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sharemywin超过 9 年前
Where it gets tricky is the agent has a fiduciary duty to the client. Making multiple deals isn&#x27;t int he interest of the buyer. Not sure about Canada though.
rgbrgb超过 9 年前
If only all real estate agents were transparent and accountable agents in the AI sense, hard-coded with fiduciary duty to their clients. Working on it... :)<p>I do think there&#x27;s some confusion in these comments about buyer vs seller agent, but that goes back to the fact that traditional real estate deals are often murky and intentionally obfuscated to benefit the brokers.
holigey超过 9 年前
Similar to this happens all the time in India. Seller1 sells his property to buyer1 and gives all the property papers after transaction. Before _registering_ this property with the government Buyer1 finds another Buyer2 and sells the property. Buyer1 now avoids paying tax which is what registering property is.
pakled_engineer超过 9 年前
When they demolish and sell in Vancouver its given to the lowest contractor bid so will fall a part in a few years. Common to see huge cracks in new house walls, uneven garage doors that can&#x27;t close and loose tile work galore. Glued together homes sold to absentee buyers made to last until next sale.
buzzdenver超过 9 年前
This is house flipping, not arbitrage.
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sharemywin超过 9 年前
wonder what these houses are getting appraised at. and if appraisals are just ignored and&#x2F;or disclosed. I would think an agent that sells a house with knowledge of an appraisal that was 300k below what it sold for without disclosing could get in a lot of trouble.
msie超过 9 年前
Don&#x27;t complain about your block becoming a ghost town if you&#x27;re selling too.