Wednesday, March 26, 2014

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.


Click 'comments' below to contribute to this post.

Please read disclaimer at bottom of blog.


  1. Can anyone help to solve this mystery? Was it a fake sale a few weeks ago? Can realtor put a “SOLD” sign on the street even it is not sold, or realtor fired?

    6002 Chancellor Blvd (Van West, UBC), sold a few weeks ago, back on the market for the same listing price $1,890,000

  2. Maybe it was sold but the deal fell through... so back on the mkt to try again.

  3. The point of my blog post was that the voluntary sale in October 2012 by the previous owner was at the mid $800s (I cannot divulge the sales price online)whereas the “foreclosure” listing price now is $1,049,000. Had the relevant portions of my blogpost been extracted, one would see that the current mortgagee is in the fine situation of likely being able to sell the property for well above the purchase price. So, while the extract appears to demonstrate a real estate market in some kind of roller coaster ride and out of whack, in fact the market in Richmond has improved substantially since October 2012. The reason for he disparity in 2012 between the market price and the assessment price was simply because the subject property was the “poor sister” on a million dollar plus street and therefore “suffered” from higher assessment values on the whole block.

    Foreclosures now, according to my research last week ( are running at .8% of all listings in Vancouver East, West, North Vancouver and Richmond combined. Even in the recreational market of Whistler, the total foreclosure to listings rate is only 1.6%.

  4. The property at 6002 Chancellor was sold in December of 2013 and has now been relisted for sale by the selling gent on behalf of the buyer, as of February.... Go figure. The same thing once happened to me and it could simply be a disagreement between spouses or a job transfer. Obviously they are just trying to recover their money.... It looks to be tight after PTT and commissions....

  5. Arnold: they can list it for whatever they want; let's see what it actually sells for.

  6. So listing a house for 20 or 30% above what you have a chance to get for it signifies a strong market? If he would have been able to make a profit on his mid $800K sale then it wouldn't be in foreclosure

  7. To clarify, the current owner/borrower never before listed it at a lower price. It is the "lender" who is "going for it" at $1,049,000. There could be a few reasons for this, although in my experience, most lenders simply try and recover their money as quickly as possible.
    1. The market really warrants this price.... remember, as a court ordered sale, the parties probably came to court armed with an appraisal;
    2. I personally know the listing Realtor and he is not one to waste his time with frivolous listings;
    3. It could be that the lender may not be at arm's length and that part of the marketing strategy is to show the property as a "Court ordered sale" to make it look like a bargain, but I doubt this.
    4. In October of 2012 the average price of a sold SFD in the neighbourhood of Riverdale was $1,091,000 whereas at the end of February 2014 it was $1,049,000. However, the days on market (DOM) in 2012 for this area was 95 whereas in 2014 it is 33; Inventory for sale in this neighbourhood in 2012 was 68 whereas now it is at 45; and, finally, the sales to active ratio for Oct 2012 was 4% whereas at the end of February it has recovered to a robust 33%.
    5. The house is still the poor sister on the street at $1,049,000 as there are 6 others for sale ranging from 2.188 Mill to 3.85 mill, so that the asking price for the area is not some pipe dream.... and is not far-fetched.

    So in summary, it is simplistic for you Anon 1 to imply that I somehow buy into the notion that the property as listed for 30% higher signifies to me that it is a strong market... I have other metrics to rely on other than the listing price.....Wouldn't ya think?

  8. Let's look at your metrics:

    1) Average prices are meaningless
    2) Days on Market is meaningless since properties are continually pulled and relisted days later resetting this number

    4891 Tilton has a DOM of 26 days but it has been listed for almost a year with 5 different MLS numbers

    4191 Westminster has been listed for almost 4 years yet has a 186 DOM

    5800 Riverdale has been listed for 200 days and has a DOM of 7

    5652 Forsyth 74 days DOM but really 500+

    4691 Webster 59 days DOM but really 700+

    5680 Bouchard 74 days DOM but really 650+

    6360 Bouchard 49 days DOM but really 600+

    6811 Cairns 74 days but really 700+

    This is all from Riverdale and the list goes on and on

    3) Sales to Active is reasonable but it is predicated on having a reasonable price which this home does not as evidenced by the recent sale at $850ishK. Being a foreclosure sale reduces the list of potential buyers dramatically

    So your conclusion that the market is improving and as an example of this using the initial listing price of a foreclosure over 25% higher than the last sale is a bit ridiculous... Wouldn't ya think?

  9. Epiloge to tongue in cheek "Anons" above: Gibbons just sold for a used Harley over 1, yes, the market is up since Oct 2012 and if the previous owner didn't blow his brains out with useless renos, which I doubt he did, it looks like it moved back up 15% or more from his cost. But granted, that's just this house....under a court ordered sale and all.... wouldn't want to speculate with my real name on an armchair economist hobby board that any of this might be applicable to other homes in Richmond not being foreclosed... still recovering from the "Touche"

    Incidentally, to those who wonder who is buying, looking etc in Richmond.... In the last 35 showings I have done on my Richmond listings, I have not seen a Caucasian property "hunter"....