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How Value is Determined Through The Eyes Of...

How Value is Determined Through The Eyes Of.....
Not very long ago, I wrote an article about how sometimes we have difficulties determining the market value for a property that would satisfy the current owners - since the owners always think that their house is worth more. However, We the Realtors need to be able to balance the owners needs, the salability of the house and recognize that the mortgage lenders need to assess the house before the mortgage is issued.

Here is how it works...

The sellers view their house like this:

The buyers always think that there's better homes than yours out there or they think that your house needs a lot of repairs and updates so they view your house like this:

The mortgage lenders have their own fears of lending too much money on the property that is not worth as much as you think and they view your house like this:

The lenders usually hire an appraiser and they see your house like this:

Then we have a view of the Tax assessors and they choose to view your house this way for their own reasons. By now you may understand their reasons.

Recently I was helping a client determine the market value of her home and she asked, “But Tibor why do you say that my house is only worth $548,000 if my tax assessment that I just got in the mail says that my house is worth $573,000?”

The difference between my price and your tax assessors is that the assessor does not have to deliver on his promise and he does not need to help you to accomplish your dreams of selling your home.

I do!

Tibor Bogdan
Your Realtor For Life


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What is a pre-sale?

Example scenario: When the developer intends to build an apartment building and applies for financing, the bank will grant financing under certain conditions. One of them will likely be a certain percentage of pre-sales the developer will need to secure before receiving the funds.
It is common practice for a developer to approach several real estate investors and offer them an opportunity to purchase units of the non-existent building at a discounted price, and on good terms.

Once the number of pre-sales is accomplished, the developer goes ahead with the construction, which will likely take two years or longer to complete. During construction, their marketing team offers the remainder of the units for sale at market value to the public.

If you are a RE investor, you know that it is preferable to be buying at the pre-sale prices, not market value prices.

The question is, how do you get the invitation to buy a pre-sale?
In the past many years, investors have made substantial income by buying at wholesale prices and selling at retail prices even before they needed to complete their purchase. I saw many of them lining up and sometimes even camping overnight in front of the sales center to get a chance to buy at lower prices, but not everyone was lucky enough. You needed to be well-connected to get an opportunity, and you had to act fast.

Today is a bit of a different story. Several projects in the Lower Mainland and Fraser Valley offer really good prices and incentives to secure a unit now and complete the purchase two or three years later. The list of incentives varies from one project to the next. Besides attractive prices, you can get low deposit amounts (5-15%), low or no assignment fees, free updates, a mortgage rate buy-down program, extra parking and more.

A month ago, I helped a few of my clients purchase a presale in Surrey that sold out in 2 days, and I know of another good developer that will be offering a few units for sale as well.

If you would like to know more about these opportunities, I would encourage you to call or email me, and I’ll be happy to send you details on those projects.
Kind regards,
Tibor Bogdan
Century 21 Creekside Realty Ltd.
45428 Luckakuck Way #190, Chilliwack, BC V2R 3S9
cell: 604-855-2521
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