It looks like we are into another seller’s market for 2020. The predictions are that the numbers will once again keep Ottawa in the Seller’s market range.
WHY?
There just isn’t enough housing to meet the demand! Even though builders are building at a fevered pace, they are, in many cases, a year or so away from delivering finished new homes. Plus there just isn’t enough home owners willing to or needing to put their homes up for sale.
WHAT’S THIS ALL MEAN FOR YOU?
It depends on were you fall in the real estate market. First time buyers are going to have to come up with excellent financing well before they can even attempt to bid on a home. They should also be prepared for bidding wars. It has not been unusual over the past couple of years to hear of ten, fifteen, twenty or more offers on the same home. And, in many cases, those homes are perfect for and marketed to first time buyers. Once we get into more luxury homes the demand as would be expected cools off but not that much. We still see many multiple offers on $600,000 to $900,000 homes.
If your buying and selling you have the goods and the bad. You’ll likely get much more for your home than you may have thought but you’ll also pay more for that new home and will have to deal with multiple bids. Again, get prepared. You may have to sell your home first and make a double move until your new home is ready or until you can find one that matches your needs.
The best scenario if for those moving to either a location that is not booming or leaving the housing market all together. Maybe you’re retiring and renting or moving to more affordable cities with a balanced or even buyer’s market. Under these circumstances you’ll reap the maximum benefit of this hot seller’s market.
What ever your circumstances are, a real estate professional can guide you though all the twists and turns in this crazy market. Write of call us today. Helping you is what we do!
Once again sales at the Ottawa Real Estate Board have exceeded last years sales and have shown significant increases in value, especially in the condo market.
A shortage of available condos have driven the market to new values helping what has traditionally been a week market in Ottawa. Lots of bidding wars, lots of buyers but a shortage of available units is the formula that has created this increase in sales and value.
The freehold market has also seen increases in the number of units sold and the values too. This market has become a little more balanced but remains a strong seller’s market.
What do you do if you’re in a seller’s market?
Well, that all depends on which end of the transaction you’re on. If you’re buying it is more important than ever to do your homework! Working with a professional real estate agent with lots of experience is your first step. A good sales rep should be able to guide you through the steps you’ll need to be prepared.
- A solid mortgage commitment from a lender. This will make sure you’re ready at a moments notice to put an offer in on that hot property. Get something in writing so you can prove, beyond doubt, that you are qualified.
- Have a building inspector on speed dial. Your sales rep should be able to provide referrals to several inspectors. Make your choice early in the process.
- Get yourself a lawyer who works with real estate transactions. You’ll need one for any transactions in Ontario.
- Be prepared to move fast in today’s market. Make sure you are available to be in constant contact with your agent. Cell phones, email and texting are all important tools when the pressure is on. Don’t head out on an African Safari in the middle of an offer to buy a home.
- Finally, be ready to break the rules. Putting an offer in without what has always been considered common and practical conditions such as financing and inspection may not get you the home you want. That’s why we have strongly recommended making sure your financing is in place and accurate. You may want to also consider, if time allows, to do a pre-offer building inspection. Yes, if you don’t get the home you will loose the cost of the inspection which today ranges from $500.00 to $800.00 but it may give you peace of mind.
These are just a few of the things to think about when you are getting ready to buy.
Selling in a Seller’s market?
- Don’t think that any home in any condition will sell. Prepare your home properly as if you were competing with many other homes.
- An experienced REALTOR® will help you read the market, set the right price and guide you through some of the strategy you can use in a seller’s market.
- Delaying offers until a specific date is a strategy that has been very effective in building interest in a home and creating multiple offers. BUT if must be done at the right time in the right market. As markets cool, this strategy can backfire and chase potential offers away.
- Know what your plans are for the future. Buying another home? Moving to a rental or to retirement living? You may now become a buyer so you’ll need a plan on where you are going.
There is a lot more to know when selling even in a hot market. If you’re thinking of buyer, selling or both, fell free to write or call and we’ll be happy to work with you to get to your end goals.
Viewing new homes on the market, especially in the hot market we are seeing today, can be a very exciting. fast, and bewildering. You see a home and you fall in love with some of its main features. Your excitement level is high and before you know it your in the middle of making an offer! The pitfall to all this speed and excitement is that if you haven’t taken the time to consider all the details, you may find the upon a closer look, the home does not meet all your needs. This can have disastrous consequences!
In today’s fast paced market, you may have to act quickly when you find a property that meets your needs. Just need to make sure that the home really the right one for you and that you’re not being completely influenced by first impressions.
When you’re viewing a potential new home, or checking out a property during a public open house, yop should look for things beyond the paint and decor.
Here are some tips on what to look for:
- Will the property require a lot of immediate repairs, upgrades or renovations?
- Is it in an area that supports your family’s needs and activities. (Parks, schools, public transport, access to roads and highways, community facilities such as sports facilities, hockey rinks and swimming pools and shopping?)
- Is the property big enough?(Play structures, future pool)
- Is the driveway and garage space suitable for your needs?
- Will your furniture fit the space of each room or will you have to look at changing pieces?
- Are there enough bedrooms, bathrooms, closets and storage space? (Think about your current AND future needs.)
Avoid focusing in on only the major features of a home, such as the large kitchen or large living room.. Get down to the smaller details. This is a major purchase and you want to get it right!
Ottawa is having one of the hottest real estate markets we can remember and we’ve been selling real estate for over 30 years! Everyone wants to know what’s causing this, how can I take advantage and when will it end!
None of the answers to that are easy or very predictable. A new government in Ontario, Alberta provincial election and a federal election are just around the corner. Plus the ongoing tug of war over trade with the U.S. can individually and in combination make significant changes to a real estate market.
But Ottawa is somewhat insulated. There are two major economic forces here. Public service and high tech. For the foreseeable future (unless a new federal government launches major cuts) Ottawa will remain very stable and this is part of the reason Ottawa’s market has always been a good. Almost no declines in value and steady although too slow for some, growth. But with prices in other major cities out of sight high, (Toronto and Vancouver just to name two) Ottawa has become very attractive to those who can be mobile either due to retirement or job opportunity. Won’t you rather be in a city where $500,000 – $600,000 could get you a nice single family home in a good neighbourhood or in a city where the same dollars gets you a rundown fixer upper in a not so great areas.
Sure, Toronto has it all, Broadway theaters, concerts from all the big names in music, Film festivals, aquariums and more. But that doesn’t address the day to day living that an affordable city and very well serviced city like Ottawa has to offer.
On top of an influx of movement to Ottawa there is a housing shortage here. New home builders can’t keep up. I the “good old days” you could walk into a builder an have a home built and ready to move into in 90-120 days. Now you’re looking as 10-12 months.
With a hot market some potential sellers are holding back as they are scared that they will sell their homes and have no place affordable to go. So it goes round and round and round. Not enough homes to buy? Let’s stay where we are. Therefore that house is not for sale and buyers can’t find enough homes.
In the past few moths we have sold seven of our listings within a week and that counts days that we did not accept offers. In fact, all of them sold on the first day offers would be looked at. And all of them sold above asking prices. Some only a few thousand dollars and others as much as $30,000.00.
So, the good: If you’re selling, values are high, homes are selling quickly and for top dollar. All that being said, we are still finding homes that are not in good condition or poorly marketed, not selling at all.
The Bad: Exactly the opposite of the above for buyers. To get a chance at a good home you MUST get your pre-approval at a lender ASAP. Be prepared to either spend $500-$600 for a pre-offer inspection (if you even get a chance to do that) or risk going in with no inspection condition.
The Ugly: When a market is unbalanced in favour of either the seller or the buyer, there are always hurt feelings, finger pointing, loss of funds and disappointment on one side or the other. Right now it’s a seller’s market so we are seeing many buyers and their agents upset and angry. “Why didn’t we get that house? We offered more money but the other buyer got it. How come we can’t know what the other buyer is offering? We could have then beat it!”
These are the realities of real estate in Ottawa today. What you need is a representative who can guide you though this. Is their a representative out there that can guarantee to get you the home you want? NO! There are too many factors and people involved to make that kind of claim. What we can promise it that we’ll give you the straight facts. No fantastic promises. Just the facts and how to best navigate the market!
So, you want to save money. That’s the goal of most people who try to sell their home privately and go the For Sale By Owner (FISBO) route. It certainly can’t be for the fun of it. Making appointments, showing strangers through your home, not knowing if the stranger is a legitimate buyer or just casing your home, not knowing what to say to buyers and what not to say, dealing with lawyers, inspectors and reviewing offers that you have no idea what is really in them. You need all the facts when making a decision to sell yourself and one of those facts is that even for sale by owners or those using mere posting real estate services (lower commission but no representation or services) end up paying a real estate agent some commission. And that agent is working for the buyer and not for the seller. Real estate agents will search for the best homes like the ones from lbarza.com.au that are for sale that they have information about but they won’t bring their buyer to a FISBO for free. If the buyer has to pay their own agent they will just deduct it from their offer as it is normal practice for the seller to pay commission. Right away you are not saving as much as you might have thought and more times than not, loosing money.
Let’s face it, selling a home without a real estate agent is just plain risky. FSBOs jeopardise time, money, and most importantly, an advantageous outcome.
But, despite research that shows that FSBO listings sell for about 5.5 percent less than comparable properties sold through the MLS, some sellers still want to go the do-it-yourself route, forgoing the cost of commission and the aid of an agent. Toronto real estate experts provide exceptional service and results to her clients.
In reality, a listing agent brings more to the table than most homeowners realize. Here are 8 valuable reasons why you should use the services of a full time, full service real estate agent.
- Knowledge
What you don’t know can absolutely hurt you, and it can come back to bite you even worse.
A real estate agent’s knowledge is priceless.
Agents know what the internet doesn’t tell consumers, and we can provide insight that consumers can’t get online.
Agents know how to make sense of the data and the entire selling process so that sellers and their home are fully prepared before hitting the market.
- Time
Everyone’s time is valuable, but do sellers truly have time to attempt to play the real estate agent role?
Are sellers available to show their homes in a safe manner, and is it accessible on a moment’s notice?
How will sellers handle showings when they are on vacation for a week and there are cash buyers in town?
Can you say “lost opportunity”?
Do sellers have the time to devote to scheduling and managing showing appointments? What about feedback? Do sellers know what questions to ask and the best way to reach agents to elicit a response?
Are they able to aptly respond to agent and buyer questions, concerns and objections in a manner that will help overcome the hesitation to move forward?
Are sellers able to offer solutions to buyer-perceived obstacles with the property? Can they furnish expert resources such as architects, contractors, designers, engineers or other experts?
- Presentation
Image is everything when it comes to real estate. You never get a second chance to make a first impression, and the same goes for putting a property up for sale.
Do sellers know how to properly prepare their home for sale, and do they know what it needs or doesn’t need?
- Are they able to stage it or bring in someone who can? What about professional photography, drone, video and 3D? Are they able to orchestrate photo and video shoots with ease and know who to contact? What about photo styling and having an eye for how a space will translate on camera?
- Marketing
How are sellers going to market their property? Do they know who the buyer demographic is for their home and/or neighborhood? How do sellers reach buyers?
Do sellers have access to predictive analytics or know how to strategically promote the listing to other agents in the community and on social media?
What kind of print media is appropriate for the property, and how will sellers have that created and printed? What agents are most likely to have buyers for the home?
Are they local or regional, or must sellers reach out nationally or internationally?
In real estate, the world doesn’t seem so vast as agent networks are strong, and six degrees of separation often ensues when an agent in Ottawa, Toronto or Vancouver reaches out to his or her agent contact in Calgary, Halifax or Montreal about a buyer for a property.
- Negotiation experience
So the sellers received an offer. Now what? How do they respond? What do they look for in that purchase agreement? What is good or bad? Are they protected or left exposed?
In this hot seller’s market, are sellers prepared to take multiple offers and milk a bidding war to get the best deal?
What terms and conditions could be disadvantageous to the sellers? What costs should or shouldn’t they incur? Do they know how to negotiate to keep the buyer in the game versus walking away?
How do they strike a delicate balance between protecting their interests as a seller and working with the buyer toward the goal of putting an agreement together?
Here’s where what sellers don’t know can hurt them the most. And there is a lot that most seller don’t know that they don’t know!
Recently I came across the concept of VA home loans, I personally have seen many homes being financed for veterans, but none offered the services such as VA home loans are offering. If you are a veteran and are having a hard time in finding the right house for yourself due to financial issues, then I highly recommend you check out VA home loans to avail offers like 0% downpayment and low-interest rates.
- Inspectionand repair know-how
This is one of the most difficult parts of a real estate transaction, even for real estate professionals. Do sellers know what inspections they should expect?
How should they handle items that are flagged as needing repair or replacement by an inspector? What kinds of repairs are usually done by a seller, except for the obvious ones: HVAC repair, flea management with the help of services like Pest Control Chicago, etc?
Do they have a roster of repair people at the ready who can come out on a moment’s notice?
Hint: It’s typically not who you find in the Yellow Pages or by doing a Google search.
If sellers don’t know better, they could find themselves making an improvement, not a repair on their home for a new buyer.
- Transaction management
So the home is under contract with a buyer. What do sellers do next? Do they know who they need to be in contact with?
Who is going to be handling the closing? What items should they be following up on? How will they handle challenges like the property not appraising for the contract sales price or the deal potentially derailing due to home inspection issues?
What happens if the buyer’s financing is shaky?
- Closing finesse
Do sellers know what the closing protocol is in their market and what the expectations are? When do sellers have to be completely moved out of the house?
In some markets, that means by the day of closing, and in others, the seller has possession for a few days after closing.
What condition are sellers expected to leave the home in? How do they handle unexpected, last-minute issues that may arise: the movers damage the home when moving belongings out, the air conditioner is on the fritz, or worse yet, the moving crew doesn’t show up when they are supposed to.
Selling a home without an agent is like throwing caution to the wind along with the commission.
The perceived savings can come back to bite sellers in terms of uninformed decisions and costly mistakes that — in the long run — end up costing sellers more money than if they would have used an agent to protect their interests and help them justify their home’s value in the first place.
