$1.7M Vancouver Home Sells for $825,000 at Tax Auction — But the Buyer May Never Get It

A home on Windsor Street in East Vancouver, officially valued at more than $1.7 million, sold for $825,000 at the City of Vancouver's annual tax auction at city hall on Wednesday (November 4) — less than half its assessed value. The upset price was just $72,051, the amount of taxes owed on the property. The house has admittedly seen better days, The Canadian Press reported: its yard is overgrown, weathered shingles are barely hanging on in places, and the back stairs have completely rotted away. (Cover photo is a file photo of a Vancouver residential street, not the property in question.)

Upset price is just the tax owing; 116 listed, 66 left by auction day

Vancouver's tax sale covers properties whose owners have not paid their property taxes for three years in a row, with the upset price set at the amount owed to the city. This year, 116 properties were initially listed; by the time the auction began at 10 a.m. on Wednesday, only 66 remained, the rest having paid up. All properties auctioned received bids, and only one sold for the upset price — for nearly $1 million. One bidder reportedly cast winning bids on dozens of properties, including the home on Windsor Street.

One-year redemption; only three properties changed hands in a decade

The bargain price comes with a catch: the current owners have a year to redeem the property by paying their taxes, in which case the bidder is refunded plus interest at 6%. On the Windsor Street home, a full year at 6% works out to about $4,323 in interest on the upset price paid. The City of Vancouver told The Canadian Press that just three properties have changed hands through its tax sale in 10 years, and that taxes on almost all listed properties are paid during the redemption year.

Two Point Grey mansions listed with upset prices under $360,000

The sale list also included high-value homes: two houses on Point Grey Road, worth around $5 million and $6 million, were listed with starting bids near $289,000 and $355,000. The city says bidders should do their own research before bidding and warns against trespassing on listed properties.