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Ian thinks 50% low ball offers aren't going to work in the luxury Vancouver market - it's just too low.  Ian says Vancouver's not like New York and San Francisco and those other places that are correcting.

50% off?  Not yet.  But more to the point, what would be a cagy starting point for low Vancouver offers?  10% off?  20% off?  30% off?  And whatever discount makes sense now, where is it going to get to in another two years?

That Dubai guy might just have to wait a couple more years, Ian.  50% off takes us back to where this bubble all began, and Vancouver is one of the bubbliest cities around.

Comments?

Ian Watt has some interesting blogs from time to time, but it sounds like he only gets half the equation here - he heard what he wanted to hear, because he's trying to sell condos.  If the majority of empty nesters are downsizing -- WHO IS GOING TO BUY THOSE BIG HOUSES AT PREMIUM PRICES?

It's clear from the stats thrown out there by Ian referencing CMHC there are nowhere near the number of first time buyers necessary to absorb that inventory, and even if the numbers were right, that set up is all wrong.  First time buyers generally don't start into the market buying the biggest most expensive properties available.

Ian Watt says "There's no way a computer is going to beat me and my services."

I admire Ian for standing up and taking on a big start-up like Redfin, but while Redfin may not beat Ian and his "services" that don't "compete on price", isn 't it possible that this service, or one like Zillow, could compete and drive other realtors out of the business?  And while Ian may continue, if an alternative business model starts to compete as a sales platform, isn't it possible that some realtors may be out of business sooner than later with the Redfins, Zillows and Googles of the world encroachingand shaving the margins in the housing market?

Considering the staggering commissions involved, isn't it plain common sense that a business model that can produce sales just as fast or conveniently could put some realtors to the ultimate test?

Time will tell....

Vancouver realtor Ian Watt gets worked up about a buyer who had a bunch of realtors working for him.  Do you agree that a buyer owes any loyalty to his or her realtor?