38 replies to this topic

[MarkoJ]

A 2 bed/1 bath in the Oaklands area on a 5,000 sq/ft lot would most likely be selling for teardown value.

[tjv]

And then there are those properties that just sit. Sit. And sit some more.

There are these two homes I’ve perused on the MLS that are price at that outrageous amount I mentioned and they’ve been on the market for 100 days. If they were priced below outrageous, they’d move.

Oh, and here’s another thing to consider. Have inspections done on your home before you list. I’m encountering sellers who have no idea about major issues that are only uncovered once a buyer has an inspection done. One home in particular that I viewed had a huge problem brought to the seller’s attention and that killed an accepted offer, threw a real monkey wrench into the whole equation and dropped the asking price by quite a bit. It also frustrated buyers.

Not disagreeing with what you are saying, but I think a lot of people are trying out the market after all there is no cost for them to list their house for sale.  Why not list your house for an outrageous price, nothing to lose!

 

I think someone here stated no subject to's go to the head of the line.  If you as the buyer want an inspection you should get it done super quick because the line up of people behind you wants to make an offer

[Mike K.]

I know we hear of these instances, but is that really the case as often as we think it is? I mean, you can’t even get financing unless certain checks and balances are undertaken.

I think we do see the odd cash purchase that circumvents all sorts of hurdles but some of those are likely made with an inspection already having been made available.

I’m seeing this market bringing out the real nasty in people. High expections, no regard for outstanding maintenance, and an almost, I dunno, attitude like “I’m forced to sell today due to a circumstance and you’re going to profit in two years anyways, ya jerk, so give me what I want and stop complaining that the septic system is leaking.” That’s what I’m seeing and it’s a little peculiar in a region that koombayas so much about housing prices, social disparity, the housing “crisis” and how developers are only out to get rich, lol.

[tjv]

^I did see that with some people I know where the house hadn't seen any upgrades in 50 years since it was built, basic maintenance was done, but it was drafty as heck, septic failing, etc.  The sellers attitude was this is the price, not giving you any money to replace the septic system, etc take it or leave it and it sold.  A year later its increased in value 20-30%

 

PS.  I have heard from several septic experts that the life of a conventional septic system is around 50 years no matter how much you pump it

[Mike K.]

What about the lines? Is it a massive undertaking to replace them? The tanks themselves are fairly robust.

[tjv]

^usually they are replaced now with an engineered package treatment plant with compressors and pumps.  If I recall correctly new systems have to be designed by a licensed professional and very few will allow the conventional old school systems to be installed

[Mike K.]

Interesting.

Thank you.

[tjv]

FYI the cost is about 35 to 40k for a system

[Matt R.]

Yep. No more gravity fed systems, all pressurized now and all must be signed off by an engineer. You can do the work yourself mostly, but good luck getting anyone to sign off on work they didn’t do.

It’s also increasingly difficult to remove native soil, so if your failed septic lines are located in such an area and you have little room to work with, you may be looking at constructing a four foot high sand mound to handle the effluent.

Very common on salt spring, as almost none of the island is on sewer. We looked at a few houses where this was a serious issue, and in fact one of the main reasons we didn’t buy the rental we were in. $30k to start, then who knows what they find when they start doing soil samples and such. No thanks. We looked at a couple that were positively atrocious, with things like gray water lines just running down the hill or into the ditch out front.

The place we bought was owned by the brother of one of the main septic installers on the island (he installed the super high tech system at my shop) so we felt confident. If only they had taken care of the fireplace too!

Matt.

[Mike K.]

I’m looking at a place right now that has issues with the septic. I suspect it’s in the line(s) but I’m not privy to the inspection that other interested buyers paid for. All I know is there are “issues.” Certainly lots of room to work with, however.

[Matt R.]

It’s possible to clear clogged lines but if the problem is severe (biomatting) you are probably just buying time.

Few hundred bucks for an inspection. Money well spent. Strangely we spent about a grand inspecting the house we never bought and nothing on inspections where we did buy.

Matt.

[Mike K.]

Someone else has undertaken an inspection but they won’t give up the report. So my strategy is to try to beat their accepted but soon to be amended offer and hope the seller takes it over theirs.

This market stinks for buyers! (No pun intended).

[tjv]

no question its not a buyers market, I am trying to buy property to subdivide and build spec homes and its hard.  I thought you bought at The Wade?

 

A septic engineer explained to me that the old conventional systems where designed to fail in that eventually the effluent would always overflow into the field because it will never completely settle in the small tanks that they came with.  As it overflowed it would fill up the first set of holes/clay pipe joints, and then the next set, etc, etc, until the field is basically plugged and can't handle the volume.  The lifespan of a typical field is around 50 years and that assumes it has been well maintained.

[Mike K.]

Yes, I did, but it’s time to look at something a little bigger before the market goes into total overdrive.

Thanks for the heads-up. I must admit there’s a whole whack more to wrap your head around when looking at a home and land. Pre-sale condo shopping (thanks, Citified!) is a cakewalk by comparison.

[tjv]

Curious, you really think the market is going to go into total overdrive, even more so from where it is now?  Why do you feel that way?  I feel its leveling off, but prices will continue to climb.  Hey, I could be wrong, I never saw this current real estate market 2 years ago, at the time I thought we might head into a recession

 

And my apologies, its not my intention to pull this thread off topic with real estate market and engineered package treatment plants

[Mike K.]

It’s all good.

It’s the lack of inventory, to be honest. Yes, we’ll see a slowdown among the most expensive homes but competition for lower priced homes will become fierce. I could be wrong but if folks now in the market for $1M homes are forced to look at $700k-$900k that’ll place grater pressure on prices.

I’m seeing buyers falling over themselves for decent inventory in that price range already. What I imagine will happen come the spring when pre-approvals fizzle out is a mad rush for anthing under $700k, which will lift the bottom end of the market to today’s mid-range.

[tjv]

All good points.  The lack of inventory I agree will definitely continue to drive prices upwards no question about that, its basic economics.  However, new construction costs continue to be driven into the stratosphere with material price increases and labour shortages.  What usually happens is someone wakes up with the finger on the button and it crashes overnight.  Going back to 2008 I remember seeing signs in the early part of the year that it was going to end and 7 or so months later it died like someone shut off a light switch.  I haven't seen any of those signs in 2017, but believe me I am watching for them

[lanforod]

All good points.  The lack of inventory I agree will definitely continue to drive prices upwards no question about that, its basic economics.  However, new construction costs continue to be driven into the stratosphere with material price increases and labour shortages.  What usually happens is someone wakes up with the finger on the button and it crashes overnight.  Going back to 2008 I remember seeing signs in the early part of the year that it was going to end and 7 or so months later it died like someone shut off a light switch.  I haven't seen any of those signs in 2017, but believe me I am watching for them

 

When that happens, you can finally take a vacation .

[tjv]

Gee, thanks