Monday, December 10, 2012

We now have an entry in the -60% below assessed value category

Even I have to admit that it's a surprise to see an entry in the -60% below assessed value category this early into the collapse of our housing bubble. I wasn't expecting the first one until at least late spring of 2013.

Naturally it is another property with 'issues' that breaks this barrier.  As we have noted before, these are the properties that will lead the way.

That doesn't mean their dropping value isn't impressive. A year ago it would have been unthinkable to even conceive they would listed for 25% below assessed, let alone -30%, -40%, -50% and now... -60%.

And today's entry is a new one for us.

Courtesy of Observer and Vancouver Price Drop, this is 28241 108th Ave, Maple Ridge (click on image to enlarge):

As the description notes, this 16 acre parcel with a slight slope sits in an area of nicer homes.

It only has a 1 bedroom, 1 bathroom 1,200 square foot structure on it, so the interest is - obviously - in the 16 acres of land.

This is a court ordered sale. And not a simple foreclosure, either.

As the listing notes, you can't get a mortgage for this property because the site is in violation of Ministry of the Environment, the Agricultural Land Commission and the District of Maple Ridge's Regulations and Bylaws because the property has been used as a dump site.

But for those who are liquid enough to take advantage (and can cover the cleanup costs) this property - assessed at $800,000 - is currently listed for $300,000.

Will it get bid up in the foreclosure process?

Or is this another property which will dance the price limbo to see how low it will go?


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  1. Cheap for a reason. When real properties go on sale at this price, then the bears can party. Van price drop only lists shit homes. Shit homes will not sell in Any market. I'm a bear, but there's no value to that site

    1. Granted and I have noted this. But as I said, a year ago these types of 'shit' properties wouldn't even hit the market with an asking price below assessed value.

      Now not only are they begging for offers below assessed value - we have one at -60% below assessed.

      The shit properties will lead the way and it is coming.

    2. Weren't Richmond properties still in massive bidding wars just 12 months ago?

      Now they are routinely selling for 25% under assessed value.

      If Richmond SFH's are going for 25% below assessed value, the shit properties have to drop.

      And the fact they are dropping this much is a sign that the regular properties are falling even more as well.

    3. There are some pretty decent listings on that site especially if you go into the city-specific listings.

  2. LOL at the mortgage calculator in the corner saying $1037/month despite the description saying that you can't mortgage this property.

    I know it's just an automatic feature of the site, but I still find it amusing.