Shadow Flipping in Vancouver

You all probably know her; daytime talk show host, comedian, actress and one the TV’s top personalities “Ellen DeGeneres”. With an estimated net worth of $300+ million dollars it’s not surprising that she recently purchased an $18 million dollar house located in Trousdale Estates, Beverley Hills, California. Hey? The pricing seems pretty identical to the Vancouver Real Estate market don’t you think? This single story “rancher” has 8,500 square feet of living space with four bedrooms, six bathrooms and was designed by Hall Levitt – a well sought after American architect. This beautiful home has it all: a monolithic entry colonnade, a soaring marble atrium, 15 foot floor-to-ceiling glass walls, a glorious outdoor living space and a custom made outdoor pool. Lets just have the pictures speak for themselves (Please Note that the images are not the greatest):

Are you looking to purchase a home similar to Ellen DeGeneres’s? Although we may or may not be able to find you a home that is identical to it in the Greater Vancouver or the Fraser Valley Region, but we will try our best to find you a beautiful custom home that best suits your needs; so please don’t hesitate to contact our professional real estate team at Info@MyHomeSearch.com

Shadow Flipping in Vancouver

By : Michael March 31, 2016March 31, 2016

There’s a big controversy going on in the Vancouver Real Estate industry due to “contract assignments” which the media now phrases as “Shadow Flipping”. Don’t know what shadow flipping is? Shadow flipping is when someone purchases a property and then finds another buyer willing to pay more for the property before the deal is closed. For example, let’s say “Andrew” is wanting to sell his home through his real estate agent “Sam”. Sam is approached with a full ask offer of $1,000,000 with 30 days closing by another real estate agent named “Leo” and his client “Doug”. Once the contract is accepted Leo advises Doug that he has another client willing to purchase the property for $1,300,000 for a profit of $300,000. Doug, the buyer, agrees to sell the property and Leo reassigns the original contract to the new buyer. Both Doug and Leo are now happy because Doug made $300,000 in profit and Leo made a commission for both sales. This is known as shadow flipping.

Now that you know what shadow flipping is, Christy Clark, and BC Government have recently imposed a new rule on contract assignment “Shadow Flipping”. This rule imposes that you can no longer reassign a contract unless you are provided with consent from the original home owner. Moreover, if a contract assignment is made, all profits from the assignment must be returned back to the original home owner. I find this ridiculous, don’t you? Contract assignments have been going on for ages, and to date the real estate board has not yet received a formal complaint from the public in regards to shadow flipping. This is just something that the media likes to blow way out of proportion to create headlines! The more headlines they make the more ad revenue they receive! We all know that don’t we? If shadow flipping were a big issue, and you the reader personally had a bad experience from it, don’t you think your real estate agent is to blame for pricing the home incorrectly?

So What are your opinions on Shadow Flipping? We would love to hear from you! Our email address is Info@MyHomeSearch.com

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