Why Is That Property for sale?
By:  Shane Toews

There are many possible reasons why homes may be for sale in the Fraser Valley or Lower Mainland area.  Possibly the property is poorly managed, poorly maintain or has excessive vacancies.  In many cases the property can be turned from it’s poor state into a state of making you cash flow.  It’s time to explore and find out why this property is for sale in Vancouver, Richmond, Burnaby, Surrey, Coquitlam, New West, Maple Ridge or Abbotsford. 

Inexperienced Owner!

            There is a possibility the owner has a first time investor who bought beyond his skills, resources and comfort zone.  He feels intimidated by the responsibilities, time and risk involved with this investment.  Now he’s changing his mind and wishes to sell due to the stress factor.

Tax Benefits!

            This owner has depreciated the building as much as possible and wants to sell because the land value has increased.  The owner wants to minimize the capital gain aspect by selling it off in the current red hot market of the Fraser valley!

Settling of an Estate!

            Perhaps the owner has died.  The executor of the estate wants to settle the estate reasonably and quickly.  The property will then be priced at fair market value our slightly below to make for a speedy sale. 

Partner Disputes!

            Approximately 80% of business partners at some point break up and have conflict at some point.  Perhaps the property is for sale due to unresolved disputes.  Or maybe they have changed their goals of investing.  Maybe one partner is moving away which triggers the other partner to change his or her investment outlook.

Distress Sale!

            The owner is forced to sell, generally due to legal action by the mortgage company in the form of a court ordered sale or foreclosure litigation.  The reason for legal action would be due to breach of the terms and/or conditions in the mortgage.  It really depends on the circumstances, market demand and nature of the price. 

After you have gone through the preparation steps, next is the negotiation stage of the process.  Try to put down the smallest amount of deposit down if you are the only one with an offer on the table.  In contrast, if you are in a multiple offer situation you should try and come up with at least 15,000 as a down payment.  Generally a smaller deposit would be 5000 on removal of subjects.  Attempt to offer the lowest possible price without making your vender angry.  Think positively and give reasons as to why your coming in at the price you are.  Ask the realtor what would be more attractive, quick completion dates or long completion dates.  The trick is to make all conditions and dates attractive, but get the price that you want to pay.  If your offer is unattractive from all angles it’s hard to sell it to the vender.  Conditions in a contract are referred to as “subject” clauses.  You should include as many conditional clauses as you feel are appropriate for you needs, such as subject to “financing” or getting a building inspection done and so forth.  Stay positive and never show that you need to buy the property.  There are always other investments out there, be patient and always refer back to your outline and plan when you feel out of your element.