Will Real Estate Changes Save Home Buyers?

Will Real Estate Changes Save Home Buyers?

“When you are dealing with what is probably your most valuable asset – for most people, your home is your most valuable asset – I think it is foolish in the extreme to embark upon a sale transaction without the benefit of advice.” – BC Finance Minister, Mike de Jong 

 

 

Earlier this week, the BC government outlined changes that will take place beginning May 16, 2016 that are targeted towards stopping the rampant “shadow flipping” that was prevalent in Metro Vancouver recently.  It does appear that the government had no choice but to intervene in the matter following a scathing article published in March by the Globe and Mail detailing the shady real estate transaction.  However, it won’t be enough to slow down the insatiable thirst for home ownership that has prices skyrocketing in Vancouver and even parts of Victoria.

The change that will apply only to licensed real estate agents is that they must add a requirement that a seller be notified and consents to assigning a contract and provide any profit from “flipping” back to the original seller if the property is resold prior to completion.

The government will also be cracking down on real estate offices that do not comply with the FINTRAC documents which provide a record of buyer’s identification, data on foreign ownership and purpose of transaction (such as investment or primary home purchase). It appears that many real estate offices in Metro Vancouver have a very “relaxed” attitude when following these requirements.  I am proud to say that EVERY SINGLE deal that a RE/MAX of Nanaimo agent handles is required to provide a FINTRAC form or else commissions are withheld and management will personally follow up.  I think that full compliance must be mandatory because those agents who flaunt the rules are the very same agents doing predatory real estate deals.  After 39 yearsas a real estate professional, I feel that harsher penalties such as permanent loss of real estate license or longer suspensions should also be looked at to curb the vile practices that many of us hear about in the media.

Will any of this slow down the price increase in Vancouver real estate?  Probably not.  However, with respect to our Nanaimo real estate market which has increased by about 5% over the last 12 months compared to 30% increase for many parts of Vancouver, it could help prevent our market from experiencing “shadow flipping” which not only skews our sales prices, but removes the ability for local residents to own a home.

If you have ever considered moving to Nanaimo, I would encourage you to check out our team’s newly updated website at www.mmshomes.com.  The front page features a video with some of the most dramatic and impressive aerial videography of this area.  It will certainly make you want to call Nanaimo your home afterwards.  Feel free to contact us today for a free market evaluation of your home or property at 250-751-1223 or email us at brian@mmshomes.com.  We look forward to getting you moving in the right direction this year!

Regards,
Brian & Myles McCullough

 

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