Warranty? What Warranty?

Over the last month there has been a great many stories appearing about the effects of shoddy construction practises here in Alberta... particularly concerning stucco exteriors with faulty membranes.

A quick googling turns up this and much more:

No bailouts over faulty condos: gov't

Faulty new homes not widespread, builders say

Thousands of Alberta homes could rot, experts say

No tally kept on rotting buildings

Membrane, not stucco, is the problem

Shoddy workmanship blamed for leaky homes

Dream home a nightmare of problems

Edmonton condo owners face $8M bill for repairs

This is some scary stuff, people are getting hit with some massive bills for repair. In that last story a woman who paid 150K for her condo 5 years ago, is now being hit for a 45K repair bill. There aren't too many young adults who can swallow that kind of hit to the wallet easily.

Hell, it can even knock the established for a loop, one of the stories talks about a couple nearing retirement now forced to take out a second mortgage just to cover repairs to their home.

Seeing we've been talking about asking prices, I thought it would be interesting to see if we could find any listings from the complexes mentioned in the above articles. In this article they were talking about a building on 102 Ave and 120 St, which is now faced with about 450K in repair costs for the 29 unit building. There are a couple... a 1000 sqft unit for 270K, and a 1055 sqft on for 300K.

Then in another article from just this week, we hear about a 200 unit building that is now faced with an 8 million dollar price tag to repair mold and rot damage in their six year old building. Couldn't discern from that article where it was, but Global TV did a little piece on it last night, and from that I figured out it was at 104 Ave and 122 St. Just a few block from the other building.

Since in the piece they talked about the developer, Tessco, I took a look at their site... and yup, there it was, Glenora Gates. Also found six listings on MLS from the building, (one, two, three, four, five, six). Ranging from a 770 sqft unit for 200K, to a 1137 sqft unit for 290K.

It would be interesting to hear how forthcoming the real estate agents are with the information about the damage and cost of repair. Or if perspective buyers will be left to find out about it in the condo board minutes... cause, there is nary a mention of any such deficiencies on their listings.

Obviously one must feel for those who currently own, and are now faced with these huge repair bills for problems that should have never been. Many will now be faced with taking a second mortgage, or forced to sell (likely at a significant discount to boot).

Going forward, for those looking to buy, whether new or old, be sure to do your homework... and if you see any building with a stucco exterior, condo or otherwise, be asking even more questions and don't stop until you get answers. All those people talking up a property will want nothing to do with you once problems arise... and as we've been seeing, new homes are no exception as the new home warranty program has been exposed as no help whatsoever to these people.

Asking Prices - Condos

So, the nominations are in and the selections made. Added a couple more to represent all the new building in Terwillegar as well as to represent the university area, so we'll be tracking 12 complexes. Since we can focus on buildings/complexes with condos it should be far easier to track and find good comparables should these listings sell or expire.

I'll do the houses sometime in the next week or so when I get some time. One of our commenters, CM, also found a rather ingenious way to track the median listing price for areas, so we'll also be able to keep an eye on that. But without further ado, the condos...

Northeast - Canyon Ridge - 451 Hyndman CR complex

We have two listings, E3179050 & E3185140.

• 1250 sqft townhomes
• similar conditions
• built in 2004
• condo fees - 145/month
• taxes - ~1,600/year
  
• DOM - ~10 and 60 respectively
  
• asking prices 230K and 240K

Northwest - Cumberland - 13215 153rd Ave NW complex

There are four listings in this complex, all never been lived in. Cheapest is a 1250 square-footer listed at 300K, most expensive an 1825 square-footer listed at 350K. We'll focus on the two in the middle, assuming they're the most common E3165890 and E3173613.

• 1470 sqft townhomes
• identical units
  
• built in 2007, never been occupied
• condo fees - 100/month
• taxes - not available
• DOM - ~110 and 210 respectively
  
• asking price 330K per

West - Ormsby Place - 64th Ave - 178th St complex

We have two listings, E3170325 and E3185243

• ~1040 sqft bi-levels
• similar conditions
• built in 1978
• condo fees - ~240/month
• taxes - ~1,350/year
  
• DOM - ~10 and 140 respectively
  
• asking prices 212K and 218K

Central - Downtown - 10125 - 109th St complex

There are currently three listings from this building. Cheapest being an 870 sqft 1 bedroom listed at 200K. Most expensive being a 915 sqft 2 bedroom corner unit listed at 245K. We'll focus on this one, E3183255.

• ~911 sqft apartment
• built in 1981
• condo fees - ~330/month
• taxes - ~1,550/year
  
• DOM - 20
  
• asking prices 220K

Central - Downtown - 10024 Jasper Ave complex

A ton of these lofts available, 14 to be specific. To be brief here is the price/sqft for each - 135K/465, 140K/457K, 149K/409, 149K/400, 150K/398, 150K/441, 155K/465, 157K/441, 160K/464, 175K/645, 180K/490, 189K/678, 190K/570, 300K/1135. We'll focus on E3182099 and E3179906, there is a third 465 square footer, but no pictures, so I'm suspecting that's a foreclosure and there is no telling the condition of it.

• 465 sqft apartment
• built in 1998
• condo fees - ~254-320/month
• taxes - ~900/year
  
• DOM - 30 and 50
  
• asking prices 155K and 160K
  

Southeast - Ellerslie - 230 Edwards Drive complex

There are currently four listings from this complex. All units appear to be about the same (same size, structure, fees, taxes). E3185206, E3179401, E3183029, and E3172019.

• 1200 sqft townhomes
• built in 2005
• condo fees - ~125/month
• taxes - ~1,700/year
  
• DOM - 10-60
  
• asking prices 240K, 246K, 247K, 260K

Millwoods - Meyonohk - 2703 79th St complex

Seven currently listed in this complex. Cheapest being a 960 square footer for 180K. Most expensive a 950 square footer for 200K (which ironically is also the smallest, and with the oldest furnishings. There are four with identical size (all with 3 bedrooms, or 2 and a den) so we'll assume they are the most common, E3184778, E3176919, E3185046, and E3177684.

• 1119 sqft carriage homes
  
• built in 1982
• condo fees - ~280/month
• taxes - ~1,250/year
  
• DOM - 11-280
  
• asking prices 190K, 190K, 190K, 200K

Southwest - Sweet Grass - 11255 - 31st Ave complex

There are currently three listings from this complex. All units appear to be about the same on paper anyway. E3170513, E3185720, E3184464. Low prices and taxes, but some rather large condo fees.

• 800 sqft apartments
  
• built in 1977
• condo fees - ~420/month
• taxes - ~925/year
  
• DOM - 10-140
  
• asking prices 130K, 135K, 140K

Southwest - Queen Alexandra - 7907 - 109th St complex

Eight of these units listed that have never been occupied in this new university area building. Range in price from a 826 square footer for 325K, to a 875 square footer for 387K. We'll look at these two, E3145626 and E3145633. Actually you only really need to look at one, since they're both totally identical listings.

• 940 sqft apartment
  
• built in 2008
• condo fees - 390/month
• taxes - not available
  
• DOM - 60
  
• asking prices 361K

Southwest - Haddow - 2503 Hanna Cr complex

Three up for sale currently in this building. Cheapest being an 1144 square footer listed at 275K. Most expensive being a 1300 square footer listed at 330k. We will give you the details on the middle sized/priced E3178631.

• 1220 sqft apartment
  
• built in 2007
• condo fees - 340/month
• taxes - 1840/year
  
• DOM - 60
  
• asking prices 325K

St. Albert - Woodlands - 260 Sturgeon Rd complex

Two very similar listings in this low rise complex. E3180356 and E3175405.

• 1050 sqft apartment
  
• built in 2002
• condo fees - 253/month
• taxes - 2260/year
  
• DOM - 90
  
• asking prices 250K per

Sherwood Park - Lakeland - 115 Chestermere Drive complex

Three units in this complex are listed. E3165443, E3180060, and E3180404.

• 1200-1275 sqft townhomes
  
• built in 2005
• condo fees - ~115/month
• taxes - 1875-2000/year
  
• DOM - 50-210
  
• asking prices 295K, 305K, 316K
  

Asking Prices - Update

Sorry for no mid-week post, it's been a busy one... sure sucks when they want a guy to do some actual work during office hours!

Thanks for all your submissions, I've been wading through all the comments and e-mails and this is what we have so far (if I missed one, please let me know). We have a few areas that haven't had properties suggested for them yet, so we'll are now looking for those areas... particularly houses.

Keep 'em coming!

Condos:

Northeast - Canyon Ridge - E3179050 & E3185140 - 451 Hyndman CR - Appears the one Aaron suggested has been sold or otherwise removed, but their are two others in the same complex.

Northwest -

Central - Downtown - E3183255 - 10125 109 ST - a couple others in this building on MLS

Central - Downtown - E3168564 - 10024 Jasper Ave - tons in this building on MLS

West - Ormsby Place - E3170325 - 64th Ave and 178th St complex - several on MLS

Southwest - Sweetgrass - E3184464 - 11255 31 Ave - several from this complex on MLS

Southeast -

Millwoods - Meyonohk - E3175352 - 2703 79 ST - several from this complex on MLS

St. Albert -

Sherwood Park -


Houses

Northeast -

Northwest - Beaumaris - E3184265

Central -

West -

Southwest - Allendale - E3176787 - E3184977 , E3184982, just down the street.

Southwest- Steinhauer - E3175848

Southeast -

Millwoods - Crawford Plains - E3180036

St. Albert - Kingswood - E3185012

Sherwood Park -

Homework: Asking Prices

Doing something of an interactive project today... we're going to start tracking asking prices. If you've been following some properties you've probably noticed that even with prices largely holding this year, asking prices still seem to be dropping. So we're going do a bit of an unscientific sample of our own and see how prices progress the next few months.

Just to give it a loose framework, I figure we'll pick 20 properties, each with a fair number of immediate comparables (neighbourhood, square footage, condition, etc)... 10 single family homes, and 10 condos, from all over the city and all price ranges

Shouldn't be hard to find comparables for the condos since they'll very likely be other units available in the building/complex, but the single family homes could be a bit more nuanced, especially with older homes, but we'll do our best.

So, for the next week you can submit any properties you think will fit the bill via e-mail or comment... just submit the MLS# or the url of the listing (ex. http://www.realtor.ca/propertyDetails.aspx?propertyId=8150762).

Now, why don't I just do it myself you ask... well, maybe I want to promote reader participation... or maybe I'm just lazy... okay, well, there really isn't any 'maybe' about that last one, but it's not mutually exclusive with the former.

Then we'll narrow it down to 20 properties in various price ranges and neighbourhoods, and start tracking them. Obviously some will probably sell, that's why we want to make sure there are direct comparables available.

So if you come across a listing that you think would work, please fire me an e-mail or post a comment.