We've all seen the headlines of these homes selling for $300k, $500k or more over asking price in Vancouver, Metro Vancouver and other areas of BC. So what's the deal?

First thing I want to say is, in our current market Asking Price is BS 85% of the time.
I tell my clients to ignore it or at the very least, take it with a big dry grain of Maldon.

Where in the past asking price has typically been an indication of the Seller’s expectations; the go-to marketing strategy in the Vancouver market is to use a low asking price as an invitation to treat.

What is an invitation to treat? An invitation to treat is when one party delivers information in order to entice another party to make an offer. The originial party is not, and has no intention to be, legally bound by this invitation.
So when that townhouse is listed for $990,000 depsite an identical unit in the same complex having sold for $1,268,000 3 weeks ago; the seller is inviting buyers to bring their best offer but is not legally bound to accept any of those offers, whether they meet or exceed the asking price.

Something that catches my clients off guard about this? If the seller doesn’t get that $300k over asking they wanted, THEY WILL DECLINE ALL OF THE OFFERS and re-list the day after offers were reviewed, raising the price by $300k. Yes they can do that. That’s often when we get to see the true asking price and one of the reasons I say Asking Price is BS only 85% of the time.

In this example, they list the property at $960,000. The agent and seller decide to hold offers off until the following Tuesday. Buyers with low budgets will think this place is a steal under a million and will want to see it along with the townhouse shoppers that missed out on the neighbour's listing last month. Showing appointments will be booked, open houses will have lineups pouring onto the streets and the agent at the open house will tell every buyer and agent just how busy it's been.

And damn, Vancouver loves a line. Makes me think of a restaurant I used to work at that had an amazing breakfast with waffles (yum) and lavender lattes (not for me but you do you, hon) and they served Mon-Fri with no wait because locals and tourists alike were 3 blocks down the street waiting in line for the other belgian waffle, lavender latte spot because *get this* it was known for how long of a wait it was to get a table.

Back to the towhnouse, we now have the frenzy of activity for viewings and when the home shows well there will be mulitple offers. Tuesday rolls around and they get 12 offers, 9 of which are way under market hoping for a miracle and 3 serious offers at around 1.2 million. The listing agent leverages the 3 top offers against each other and the home sells for 1.3 million. $310k over asking and a new record in the complex.

There we have it, a home sold in market but advertised as $310k over asking.

This technique is certainly seeing results and I can't blame the Seller or listing agent for going this route. These sellers want the best and quickest sale of their home and I'm assuming you will too when you sell your next home. But would that unit have sold for 1.3 million if they listed it at 1.26? Maybe, because there were still 3 buyers willing to pay at least 1.2 million. 

Bottom Line; as a buyer, you can't control how a seller chooses to list or market their home. What can you do?
Don't take it personally! Adjust your expectations, stop believing the over-ask hype and have a chat with your trusty Realtor about whether this home is priced in market and if it will actually sell within your budget.

Happy to answer any questions about this pricing strategy, the buying and offer process or anything else Vancouver Waffle Spot or Real Estate related.
Use the Let's Connect form below or text/call direct at 604-401-9199.


- Kade Lacasse | Vancouver Realtor

In the first three weeks of working with new clients in the Vancouver market, like clock work; they'll send me an amazing property that popped up in their budget. "Is this place for real? Ideal location, 2 balconies and we'd have a guest room! Tell us this is for real!"

Short Answer: Let’s jump on a call.

Long Answer: It is for real but it may not be for you…

When you purchase a leasehold strata; you do not own the land or the building but are purchasing the rights to exclusively occupy your unit or home through a lease granted by the landlord. The initial length of the term can vary but is typically 99 years and can be bought or sold like any other home up until the expiration date. The landlord could be the City of Vancouver like the publicly owned land in South False Creek and the River District or privately owned land.

The lease may be pre-paid or not pre-paid and due monthly along with your monthly maintenance fees. Upon expiration of the lease, the leaseholder and landlord will either renegotiate a new term or an end to the tenancy depending on the details of the lease.

The positives; Leasehold properties are valued below Freehold properties giving buyers with smaller budgets the opportunity to avoid a commute, stay close to the neighbourhoods they’ve previously rented in and afford a home that is bigger with room to grow for a family. Also, if rentals are allowed then, depending on the area and your downpayment, you may be able to turn a leasehold into a cash-flowing asset*.

The negatives; Leasehold properties will not appreciate at the same rate as Freehold. Where Freehold properties in Vancouver have doubled since 2015, some Leasehold properties with longer terms have seen appreciation from 20-50% while those nearing their expiration in False Creek have seen modest appreciation and even a possible loss with the uncertainty of renewal and the cost of renewal. Leaseholds are also harder to sell as not every buyer is interested in that product.

Barriers; financing is more difficult with leaseholds than freehold. Your lender may have different minimums for downpayment as well as maximum amortization terms (the length of your mortgage) equalling higher payments. Chat with your Mortgage Broker about whether your finances line-up for a Leasehold **


With the above in mind, buyers with a healthy budget that are looking for a way into the market to move up the property ladder or investors looking to leverage credit for equity short-term instead of long term cash-flow should stick with Freehold. But, Buyers with a tighter budget who have location and size as the top priorities should take a serious look at leasehold properties. Your mortgage payments are contributing to your principal and your equity is growing year-over-year even with modest appreciation so they are still a much better alternative to renting.

As always, get a hold of me with any questions by filling in the Let's Connect form below or text/call me directly at 604-401-9199 and let's talk freehold vs. leasehold.

- Kade Lacasse | Vancouver Realtor

* A Cash-flowing asset is one in which the revenue (rent) exceeds the expenses (mortgage+fees)

** If you don’t have a great broker that you can ask about how leaseholds may or may not work for you financially, send me a text at 604-401-9199 and I’ll get you connected Because You Deserve a Knowledgable Mortgage Broker!

We've all seen the headlines of these homes selling for $300k, $500k or more over asking price in Vancouver, Metro Vancouver and other areas of BC. So what's the deal?

First thing I want to say is, in our current market Asking Price is BS 85% of the time.
I tell my clients to ignore it or at the very least, take it with a big dry grain of Maldon.

Where in the past asking price has typically been an indication of the Seller’s expectations; the go-to marketing strategy in the Vancouver market is to use a low asking price as an invitation to treat.

What is an invitation to treat? An invitation to treat is when one party delivers information in order to entice another party to make an offer. The originial party is not, and has no intention to be, legally bound by this invitation.
So when that townhouse is listed for $990,000 depsite an identical unit in the same complex having sold for $1,268,000 3 weeks ago; the seller is inviting buyers to bring their best offer but is not legally bound to accept any of those offers, whether they meet or exceed the asking price.

Something that catches my clients off guard about this? If the seller doesn’t get that $300k over asking they wanted, THEY WILL DECLINE ALL OF THE OFFERS and re-list the day after offers were reviewed, raising the price by $300k. Yes they can do that. That’s often when we get to see the true asking price and one of the reasons I say Asking Price is BS only 85% of the time.

In this example, they list the property at $960,000. The agent and seller decide to hold offers off until the following Tuesday. Buyers with low budgets will think this place is a steal under a million and will want to see it along with the townhouse shoppers that missed out on the neighbour's listing last month. Showing appointments will be booked, open houses will have lineups pouring onto the streets and the agent at the open house will tell every buyer and agent just how busy it's been.

And damn, Vancouver loves a line. Makes me think of a restaurant I used to work at that had an amazing breakfast with waffles (yum) and lavender lattes (not for me but you do you, hon) and they served Mon-Fri with no wait because locals and tourists alike were 3 blocks down the street waiting in line for the other belgian waffle, lavender latte spot because *get this* it was known for how long of a wait it was to get a table.

Back to the towhnouse, we now have the frenzy of activity for viewings and when the home shows well there will be mulitple offers. Tuesday rolls around and they get 12 offers, 9 of which are way under market hoping for a miracle and 3 serious offers at around 1.2 million. The listing agent leverages the 3 top offers against each other and the home sells for 1.3 million. $310k over asking and a new record in the complex.

There we have it, a home sold in market but advertised as $310k over asking.

This technique is certainly seeing results and I can't blame the Seller or listing agent for going this route. These sellers want the best and quickest sale of their home and I'm assuming you will too when you sell your next home. But would that unit have sold for 1.3 million if they listed it at 1.26? Maybe, because there were still 3 buyers willing to pay at least 1.2 million. 

Bottom Line; as a buyer, you can't control how a seller chooses to list or market their home. What can you do?
Don't take it personally! Adjust your expectations, stop believing the over-ask hype and have a chat with your trusty Realtor about whether this home is priced in market and if it will actually sell within your budget.

Happy to answer any questions about this pricing strategy, the buying and offer process or anything else Vancouver Waffle Spot or Real Estate related.
Use the Let's Connect form below or text/call direct at 604-401-9199.


- Kade Lacasse | Vancouver Realtor

In the first three weeks of working with new clients in the Vancouver market, like clock work; they'll send me an amazing property that popped up in their budget. "Is this place for real? Ideal location, 2 balconies and we'd have a guest room! Tell us this is for real!"

Short Answer: Let’s jump on a call.

Long Answer: It is for real but it may not be for you…

When you purchase a leasehold strata; you do not own the land or the building but are purchasing the rights to exclusively occupy your unit or home through a lease granted by the landlord. The initial length of the term can vary but is typically 99 years and can be bought or sold like any other home up until the expiration date. The landlord could be the City of Vancouver like the publicly owned land in South False Creek and the River District or privately owned land.

The lease may be pre-paid or not pre-paid and due monthly along with your monthly maintenance fees. Upon expiration of the lease, the leaseholder and landlord will either renegotiate a new term or an end to the tenancy depending on the details of the lease.

The positives; Leasehold properties are valued below Freehold properties giving buyers with smaller budgets the opportunity to avoid a commute, stay close to the neighbourhoods they’ve previously rented in and afford a home that is bigger with room to grow for a family. Also, if rentals are allowed then, depending on the area and your downpayment, you may be able to turn a leasehold into a cash-flowing asset*.

The negatives; Leasehold properties will not appreciate at the same rate as Freehold. Where Freehold properties in Vancouver have doubled since 2015, some Leasehold properties with longer terms have seen appreciation from 20-50% while those nearing their expiration in False Creek have seen modest appreciation and even a possible loss with the uncertainty of renewal and the cost of renewal. Leaseholds are also harder to sell as not every buyer is interested in that product.

Barriers; financing is more difficult with leaseholds than freehold. Your lender may have different minimums for downpayment as well as maximum amortization terms (the length of your mortgage) equalling higher payments. Chat with your Mortgage Broker about whether your finances line-up for a Leasehold **


With the above in mind, buyers with a healthy budget that are looking for a way into the market to move up the property ladder or investors looking to leverage credit for equity short-term instead of long term cash-flow should stick with Freehold. But, Buyers with a tighter budget who have location and size as the top priorities should take a serious look at leasehold properties. Your mortgage payments are contributing to your principal and your equity is growing year-over-year even with modest appreciation so they are still a much better alternative to renting.

As always, get a hold of me with any questions by filling in the Let's Connect form below or text/call me directly at 604-401-9199 and let's talk freehold vs. leasehold.

- Kade Lacasse | Vancouver Realtor

* A Cash-flowing asset is one in which the revenue (rent) exceeds the expenses (mortgage+fees)

** If you don’t have a great broker that you can ask about how leaseholds may or may not work for you financially, send me a text at 604-401-9199 and I’ll get you connected Because You Deserve a Knowledgable Mortgage Broker!