An update on a property in Richmond: House that sold for 33% below assessed value in 2012 now in foreclosure.

Faithful reader will recall 6691 Gibbons Drive in Richmond.

Back in Oct/Nov 2012 we made a couple of posts about this property. The hook?  The property was listed - and sold - for 33% less than it's assessed value. Assessed at $1,258,600, it went for $845,000.

Pretty good deal, eh? Well… apparently it wasn't for that particular buyer.

Word comes from Richmond realtor Arnold Shuchat that the property is now a foreclosure sale.  From Shuchat's blog:

Another Court ordered sale (foreclosure sale) hit the market today at 6691 Gibbons-see MLS# V1054760. This property was listed back in March 2012 for $1,258,000 and eventually sold for under $850k in November of 2012. It is just listed for sale at $1,049,000 and is assessed for property tax purposes at $1,112,000.

Foreclosures usually mean that mortgage commitments are not being honoured. Often the owner stands to lose some equity in this process as well as costs for legal fees. Many times the lender will also lose depending upon the loan to value of the property

The listing says: "Excellent building lot or investment property in a prime location surrounded by new Million Dollar homes. Wide 84' frontage with a total of 7834 sq ft allows you to build a 3600 sq ft home plus a 3 car garage. Solid 2 level 2550 sq ft 4 bedroom + den home. Excellent location within walking distance to Thompson Elementary, Burnett Secondary & Terra Nova Shopping Mall"

Ya gotta love how it's being listed at the current assessed value and not for what it sold for.  It will be interesting to see what it sells for this time.

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Thurs Post #2: A Richmond home sells for 33% less than assessed value

Faithful readers will recall that back on October 10th, 2012 we told you about 6691 Gibbons Drive.

The property is assessed at $1,258,600 (click on image to enlarge):

And the realtor's description of the listing is priceless:

VALUE HAS AN ADDRESS and it is this fabulous custom designed 4 bedroom, 3 bath (plus den, family room and wrap around decks on both levels) home ON BEAUTIFUL GIBBONS DRIVE, AREA OF MILLION DOLLAR HOMES!

Area of million dollar homes?

As we mentioned in our original post it would appear that "Million Dollar Homes" aren't what they used to be, at least in terms of financial value.

Here is a screenshot of the property listing so you can see it for yourself (click on image to enlarge):

So despite being currently assessed at $1,258,600, the asking price of 6691 Gibbons Drive had dropped to $898,800.

On October 10th this represented a plunge in value of $359,200 or 29% from the last government assessed value of the property... with no buyer in sight, meaning it would probably actually sell for even less.

We are told the million dollar home of 6691 Gibbons Drive has now sold... for $845,000.

That's another $53,800 off the latest asking price; an end result of a plunge in value of $413,600 below ASSESSED VALUE!!

That's a collapse of 33% in 'supposed' value.

Still think the Boomer Trigger is a myth?

(hat tip 900KCrackHouse on VCI)

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Richmond: another example from ground zero for the real estate collapse in Greater Vancouver

Richmond, for those outside B.C, is a suburb community of Vancouver (and home of the Lower Mainland's largest airport).

Situated on a river delta, Richmond's geography averages just one metre above sea level. Prone to flooding, especially during high tide, the City has grown up surrounded by a system of dykes, which, although not as massive as those in the Netherlands or the levees of New Orleans, serve to protect the City from anticipated sources of flooding.

But will residents of the infamous HAM suburb soon find themselves underwater in another sense of the word?

Last Saturday we profiled yet another property in what may well become ground zero for the bubble collapse in the Lower Mainland.

The topic that day was 3900 Francis Road. Assessed at $1,020,000, the current listing price for the house is down to $799,000 - with no takers yet.

Before that we showed you 7920 Shackleton Drive. Assessed at $1,010,000, reduced several times until it reached $799,000, the house finally sold last month for $765,000.

Earlier this year, back in March, we started it all off with 6231 Gibbons Drive. Originally listed on February 28th, 2008 for $2,388,000, the property stagnated on the market until if finally lowered the asking price to $1,888,000. In March of 2012, the property sold for $1,428,000. That's $960,000 off the original asking price or 40% lower.

Yikes.

And the carnage continues.

In this week's version of the Weekly Drop, the blog Vancouver Price Drop gives us our next collapsing asset to profile from the island delta and it's back to Gibbons Drive again.

6691 Gibbons Drive, to be precise.

Assessed at $1,258,600, the realtor's description is priceless:

VALUE HAS AN ADDRESS and it is this fabulous custom designed 4 bedroom, 3 bath (plus den, family room and wrap around decks on both levels) home ON BEAUTIFUL GIBBONS DRIVE, AREA OF MILLION DOLLAR HOMES!

Here is a screenshot of the property listing so you can see it for yourself (click on image to enlarge):

What did they just call Gibbons Drive - area of million dollar homes?

It would appear that Million Dollar Homes aren't what they used to be, at least in terms of financial value.

For, as you can see from the screenshot, despite being currently assessed at $1,258,6000, the asking price of 6691 Gibbons Drive has now dropped to $898,800.

That's a plunge in value of $359,200 or 29% from the last government assessed value of the property... with no buyer in sight, meaning it will sell for even less.

Richmond, BC: a real estate disaster unfolding before your very eyes.

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