“Sell Me Twice” | 2014 vs. 2015 Vancouver East Market
CASE STUDY: 5285 Bursill Street, Vancouver
“Sell Me Twice” | 2014 vs. 2015 East Vancouver
So far, 2015 has been a very interesting year for Vancouver real estate – particularly for older detached homes in East Vancouver.
Ashley Smith and Thu Pham of Klein Group, Royal LePage City Centre recently listed and sold a property *twice* – an experience that appropriately highlights the recent change in the market.
5285 Bursill Street is a decent enough address. The home, in the increasingly popular Collingwood neighbourhood, is a stone’s throw from Kingsway. The location may not be suited for everyone, but it is extremely central, has great access to bus transit, and offers good amenities nearby, including a public library and many restaurants.
This said, the home is close enough to Kingsway that a resident can’t avoid hearing some traffic noise, and – probably most importantly – it is on an irregular lot, corner to a lane. With an 18 foot frontage (and 62 foot back), this property is less than desirable for home buyers who are conscientious about feng shui, and is not ideal for builders who typically seek a minimum 33 foot, rectangular lot (who want to maximize buildable square footage, and who today prefer to accompany a home with a matching laneway house, which is unlikely feasible in this situation).
In October 2014, Ashley and Thu were hired to list the Bursill Street home, and were well aware that the market was relatively hot with a 35% sales-to-listing ratio for all detached homes in East Vancouver (a “seller’s market” is said to be in effect when the S/A ratio meets or exceeds 22%). Despite this, they recognized that 5285 Bursill Street would have its unique challenges.
The home is a bungalow, built in approximately 1946. The home has 3 main features:
- Recently renovated (nice, clean – but nothing fancy)
- 3 full bedrooms + 1 bath upstairs (2 bedrooms more typical)
- 4 bedroom, 1 bath basement suite (good income)
CLICK HERE to view the most recent property listing.
Ashley and Thu strategized and determined the way to get top dollar would be to focus on the demographic who would appreciate the property the most, in spite of its idiosyncrasies. They targeted investors (landlords), and buyers (owner occupiers) who would benefit from a good mortgage helper.
First, they listed the property exclusively in order to ramp up demand and inquiries, using creative online and targeted social marketing, and through the Klein Group’s expansive network. Then, they listed the property on the MLS®. It was listed for $788,000 and sold firm for $850,000 – a price which exceeded the owner’s expectations.
The purchaser of the home did not buy to flip. She purchased it for her and her 3 daughters, and took advantage of the income-producing basement suite.
Ashley and Thu spoke to the new owner early in the new year, and advised her that the market was really heating up. After reviewing their evaluation, she decided it would be worthwhile to re-sell the property. In March 2015, the REALTORS® re-listed 5285 Bursill Street. They took similar steps as in October, but recognized that the buyers this time around were a little different. In general, builders were still not a key focus. However, the feng shui requirements appeared much less critical in such a low inventory, high demand market. The property was listed for $850,000, and sold firm for $970,000 after multiple offers were presented.
The sales-to-listing ratio for all detached homes in East Vancouver was at 59% in March 2015 versus 35% in October 2014. This resulted in $120,000 (over 14%) increase in sales price in less than 6 months.
CLICK IMAGE TO VIEW INTERACTIVE STATS GRAPH