NEW COAST REALTY

 

RESPONSE TO GLOBE AND MAIL ARTICLES
APRIL 8 AND 13, 2016
Allegation #1:
October 14, 2015 Recorded Meeting
1.

It has been alleged that, at an informal gathering of New Coast management and
realtors on October 14, 2015, Mr. Wu advised realtors how to move properties
quickly by persuading clients to sell for less than market value.

2.

These quotes from Mr. Wu were taken out of context. In context they do not
support the allegations against him.

3.

The topic of discussion was a case study of a Richmond property which had just
sold for $1 million below the original list price after sitting on the market for over
a year. The seller’s unreasonable expectations had caused him to reject an offer
approximately $400,000 higher than his final sale price.

4.

Mr. Wu’s advice was about how to assist a seller with unreasonable expectations
understand the true value of their property, and so avoid the problems
associated with this Richmond homeowner.

5.

Mr. Wu accurately described the Richmond homeowner’s situation as follows
(all quotations have been translated by an British Columbia court certified
English/Chinese translator):
“At that time, the asking price was over $3 million. Later on, it was adjusted to $2.2
million, and placed into price bidding. There were $2.4 million, $2.6 million offers,
again, the Seller wouldn’t accept. And afterwards, the Seller eventually switched
agent to that [third party brokerage and agent]. And, they spent another several
months. Possibly, there was no offer at all. Eventually, they switched back to us,
switched to [agent’s name]. Then finally, at $2.25 million, the deal was sealed at
$2.25 million. “
“From the beginning of the asking price at over $3 million to the final closing price
of $2.25 million, how do you bring down his price expectation, how do you let him
accept. It requires a series of explanation.”

6.

Mr. Wu was alleged to suggest that sometimes realtors “must consider your own
interests” over the interests of their clients. In fact, Mr. Wu emphasized the
importance of New Coast realtors conducting themselves ethically, helping their
clients achieve sales, and contributing to society. His advice to consider their
own interests was limited to the situation where the agents’ efforts are of no use
because a homeowner was so unrealistic about price that a sale cannot be
achieved.

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 -2“Do not, at all, break any rule or regulations. Only under this principle, you can
then bring other things into play. If your licence is revoked, regardless how
profitable is the business placed before your eyes you cannot take it or even look
at it. Do not just see money and disregard everything else. This will affect your
licence.”
“That’s right. You are helping your client when it is sold. It took so long, so long
to sell. This explains that this price, that this offer is at a good price. After the sale
is done, it will generate transaction tax, and this is contribution to the society. You
then help him buy (a property) with potential for appreciation, and this is helping
the client with investment. You must learn how to help the client make an
investment and manage wealth. You must also learn how to contribute to the
society, right? From a smaller perspective, you can put it this way, ‘I am feeding
my family, I am living a better life, this is a duty’. From a larger perspective, this is
for the society, for creating wealth. I want to take up my duty towards society.”
“With the owner’s high asking price, the gap still cannot be closed. If the gap
cannot be closed, our agent must then keep running, keep running, wasting time
and wasting gas. No one will reimburse you for it, not even the Company. … So
you must consider your own interests.”

7.

Mr. Wu was alleged to recommend telling homeowners that the first offer was
the best offer, even if that was not true. In fact, Mr. Wu was saying that first offer
is often the best offer (because the buyer was motivated enough to be first). In a
rising market there would always be higher offers down the road but they could
be years away:
“Typically, you want the first offer. Typically, the first offer is the best offer.
When you take them out and look, typically the first offer is the best offer. (But if
you ask Mr. Wu, actually it is not). Actually it is not, if you leave it to next year or
the year after, it will be even higher.”

8.

Mr. Wu was alleged to recommend printing out only “the lowest prices in the
neighbourhood to show to the homeowner”. In fact, he recommended showing
all relevant neighbourhood prices including the lowest prices:
“Another is price comparison in the same area. If that is not available, then use 1
km radius, 2 km, 3 km, 5 km to make your comparison….
“…You must include the lowest prices in the neighbourhood and show it to the
Seller. You see this house sold for $2 million. I help you sold for $250,000
more….”

9.

Mr. Wu was alleged to recommend persuading a client to pay a bonus to the
buyer’s agent which would then be shared with the seller’s agent. In fact, Mr.
Wu was once again discussing the case study of the homeowner whose
unreasonably high expectations was discouraging any offers. Mr. Wu said that if
an agent, through connections and hard work, could still obtain a high price for

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 -3the homeowner, such as $250,000 above a neighbour’s price, the agent might
request a shared bonus from the homeowner. Mr. Wu went on to say that this
should only be done in full compliance with an agent’s professional obligations:
“There was not even one offer. ‘Using my own ability, and just because our client
sources are broad, just as our company has lots of clients, or just it so happens that
it was a client of our company, or just as it is an agent of a particular brokerage
who I know well, I did my best to draw him over to buy your house’. Now is the
time to show off your ability. ‘If not for my facilitation, you won’t even have an
offer. See, next door only sold for $2 million. I got him to go up to $2.25 million.
He deserves some bonus, right?’”
“Do not, at all, break any rule or regulations. Only under this principle, you can
then bring other things into play.”

10.

Contrary to what has been alleged, when properly translated and taken in
context, Mr. Wu’s advice is reasonable and consistent with agents’ professional
responsibilities and duties to their clients.
Allegation #2:
Attempted Vancouver Assignment

11.

An unidentified realtor has alleged contacting New Coast realtor Tracy Niu
about a property which she had listed that day and being told by Ms. Niu that
the property had already sold. The unidentified realtor alleges that, two days
later, Ms. Niu offered to assign the contract to his buyer for $135,000.
New Coast's Response:

12.

Ms. Niu obtained a sale for the homeowner more than $150,000 above the asking
price. The buyer has in fact never assigned the contract or sold the property, and
Ms. Niu denies ever offering any such assignment to any realtor.

13.

New Coast has the Listing Contract, the Contract of Purchase and Sale, and the
MLS Listing and Sales History to support these facts.
Allegation #3:
Richmond Assignment

14.

A homeowner has alleged that a New Coast agent, Sandra Li, acting for both the
buyer and seller of a property, pressured the seller into accepting an offer for
$300,000 below market value and then assisted the buyer in assigning the
contract to an unidentified couple for $100,000.

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 -4New Coast’s Response:
15.

Ms. Li helped the owner sell the property for $232,000 above the asking price and
at the high end of the market for comparable properties.

16.

The buyer did subsequently assign their contract, but Ms. Li and New Coast had
nothing to do with this. The buyer used a realtor from a different real estate
company.

17.

New Coast has the Contract of Purchase and Sale, the MLS Listing and Sales
History of the property, and recent neighbourhood sales to support these facts.
Allegation #4:
Attempted Richmond Flip

18.

A Richmond homeowner has alleged that, just hours after his property was listed
by an agent from another company, New Coast agent Claire Li persuaded him to
sell to her client, Ms. Hui Ping Huang who is Mr. Wu’s wife, and that Ms. Huang
subsequently tried to flip the property.
New Coast’s Response:

19.

The homeowner and his agent negotiated Ms. Li and Ms. Huang up to a price
$100,000 over asking. Ms. Li gave up her commission to close the deal. Before
the completion date, Ms. Huang had second thoughts about purchasing the
property, but instead of backing out she completed the purchase with a friend
and then a few days later they listed the property for the exact same price which
they had paid. They have subsequently tried to increase the price as part of a
plan to renovate the property, but the property remains unsold.

20.

New Coast has the Contract of Purchase and Sale and the MLS Listing and Sales
History of the property to support these facts.
Allegation #5:
Commission Elimination

21.

A Richmond homeowner has alleged that he sold his house using a New Coast
realtor who later signed an addendum to the contract to waive her commission
because she “felt badly for selling his house under market value”. The
homeowner alleges that New Coast later added the full commission back into the
contract and only agreed to waive the commission after the seller threatened
legal action against New Coast.

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 -5New Coast’s Response:
22.

New Coast never authorized the elimination of its commission. It nevertheless
agreed to forego its entire commission which the seller kept. New Coast has
sued its former agent, now working at a competing agency, for forgery, the
unauthorized elimination of its commission, and other matters in the Supreme
Court of British Columbia.

23.

New Coast has the Contract of Purchase and Sale and Listing Agreements to
support these facts.
Allegation #6:
Withheld Offer

24.

It has been alleged by an anonymous realtor from a competing agency that a
New Coast realtor refused to consider an offer of $1,580,000, which was $130,000
higher than the sale price.
New Coast’s Response:

25.

New Coast’s realtor presented all six offers to the homeowner and the highest
offer of $1,450,000 was accepted. No offer for $130,000 higher than this sale price
was presented.

26.

New Coast has the offers and the Purchase and Sale Contract to support these
facts.
Allegation #7:
General Allegations

27.

The allegations against New Coast and Mr. Wu include some additional vague
accusations of unethical business practices and illegal behavior.
New Coast Response:

28.

New Coast and Mr. Wu deny these accusations. They are unsubstantiated and
unsupported by any evidence or specifics. They appear to come from
anonymous sources in competition with New Coast.

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