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RENTING FURNITURE FOR A GOOD FIRST IMPRESSION

One of the best marketing campaigns I can remember growing up was Head and Shoulders shampoo. Their slogan was “because you never get a second chance to make a first impression”. It is so true in not having dandruff on your shirt and it can also be applied to real estate. Stay with me here. When home buyers walk into your house you want to be feeling good about what they see and excited about what is to come! First impressions are crucial!!

Side note: I looked up that campaign and it was from the ’80s (ageing myself a bit). I still use H&S today because I am petrified of dandruff and making the wrong first impression.

If you are a home buyer what room would make a good impression to you:

Well, I agree with your choice. We suggested the homeowner bring in some rental furniture to outfit this room properly. We then made the room come to life and accessorized it.

Of course, once you commit to the staging you can’t just stop at one room. It all has to come together. In this case, we had a pretty solid plan that the homeowners bought into. We ended up bringing some of our own furniture we use for lots of stagings, to bring it all together.

You will notice the kids room. We felt the demographic buying would be younger families so we showcased as such. That is Aiden’s (my son) old bed and some of his toys/books. 🤫 Don’t tell him! We also brought a desk and chair in for the loft among many other changes.

Why go through all this work?

This is really the big question, isn’t it? Is it really worth it to stage? My answer is, absolutely. Having a fresh, modern, clean look is the key. We want people to feel excited about the house and the possibility of owning it. I bet there are people who would not even offer on the house as it sat before. They might not even realize why. Hard to prove this theory but we have taken over many non-staged homes that could not sell. We keep the prices the same and then like magic! they sell for top dollar. That is why I also invested over $2500 to stage my own place when I sold. Anyways, I am ranting a bit here but it is what I believe with conviction.

OTTAWA MARKET UPDATE FOR MARCH 2019

OTTAWA MARKET UPDATE FOR FEBRUARY 2019

OTTAWA MARKET UPDATE FOR JANUARY 2019

January is usually one of the slowest months of the year in real estate and although we had record low temperatures and lots of snowfall… the Ottawa market was hot. In January the residential and condo property classes there were 820 homes sold. That is a large jump to a 15.8% increase in units sold over January 2018. This is the highest increase Ottawa has experienced in decades. This could be a sign of things to come for our 2019 housing market.

The average sale price for homes in Ottawa continues to rise over last year’s numbers. In January we saw a 1.5% increase in the residential class property and in the condo property class we saw an increase of 7.7% over January 2018.

The $300,000 to $449,000 range remains the most active price point in the residential market contributing to 42.5% of homes sold. The $175,000 to $274,999 price range was the most active price point for the condos market in Ottawa, accounting for almost 54.1% of the units sold. If you are interested in finding out the market trends in your neighbourhood, please feel free to get in touch.

OUR NEW CONCIERGE MOVING SERVICE!

Our team has just invested in a moving concierge program that will be a game changer for our clients. This new platform will assist our clients with everything from changing addresses, transferring home services, updating identification, and getting helpful advice. This can include anything from setting up short term Airbnb accommodations to organizing moving company quotes. Each client will have a dedicated concierge agent. We are completely committed to the client experience. We hope this new service will bring value to our clients and make the transition into the new home as easy as possible.

WHAT HAPPENS AT A HOME STAGING CONSULTATION

Many of our Ottawa home sellers are nervous about home staging. Many do not understand the process. I thought I would clarify what it looks like with our team. We take a hands on approach and understand that every house has its own unique challenges. Here is an example of a staging consultation where the home was in good shape but making slight adjustments made it shine. A little can go along way in preparing an Ottawa home for market and our team knows what works. This home ended up selling for a record price in multiple offers.

ROOM BY ROOM ANALYSIS

Our staging team walks through each room with our clients and suggestions are made on everything from furniture placement, what to remove, what to bring in, paint colours, and minor repairs. Everything is from the perspective of how we can maximize the price and showing condition.

Based on our client’s circumstances we make a priority list to ensure the best possible results. Photos will be taken of each room for note-taking. Our clients do not have to take notes. Once the consultation is complete we email a detailed personalized report (usually within 24 hours) summarizing everything discussed.

Each page of the report discusses an individual room. It has a photo of the room along with a list of everything to remove, where to place furniture, exactly what to edit, and what our team will bring in if necessary.  The checklist is easy to follow. We want to make this experience as straightforward as possible for our clients.

Here is an example report:

DINING ROOM

• This room looks great. Please keep the bowl and the balls.  You said you also have some red ones that we will experiment with as well.
• We will bring a runner to break up all the wood

KITCHEN

• We can tweak the last-minute things in the kitchen on Sunday but just leave the red appliances and the coffee maker. Remove everything else.
• We can bring some greenery.
• Please keep your little blue and white pot with the greenery in it.
• Please leave the stools.

LIVING ROOM

• Please remove any signs of pets for photos and showings
• If possible, use the faux fur cushions just for the photos and then you can use your Christmas ones.
• Chris brought this area rug that will help warm up the space once everything else is added
• We have a tray and accessories to put on the coffee table
• Please remove everything from the end table and put the black lamp from the master bedroom on it
• Keep the little tree on the end table
• We will also bring some tan cushions that will tie in the area rug

• Please remove the mat under the red cabinet. You might want to put felt pads on the legs to protect the floor.
• We will tweak what is on top, but it looks good. Chris brought his big plant for photos.  Afterwards, it can go in the basement where the dog bed is now.  You can put your Christmas tree up by the window if you want after photos.

LOFT

• Please leave the furniture as we placed it today (before photo taken before we moved it).  Your artwork will go to the basement
• Keep the lamp on the desk. I will bring some greenery for the desk.
• Chris will bring in desk and grey chair
• Place one of your navy cushions on the chair.
• Keep the table, floor lamp and some books beside the chair.

MASTER BEDROOM

• This lamp should go beside the sectional in the living room.
• We will bring some lamps and cushions.
• Please remove the photo artwork but leave the large floral one.
• We will bring cushions for colour

MASTER BATHROOM

• We will bring accessories and artwork for this bathroom to complement the master bedroom.
• We always suggest buying rubber bins for the shampoos, toothbrushes etc. That way items can be removed and put in a closet.  You don’t want personal hygiene products showing for photos or showings.

MAIN BATHROOM

• We will bring artwork, towels (for show only) and accessories for the vanity.
• Please keep your shower curtain.
• Remove everything else off the vanity.

LAUNDRY ROOM

• We will bring artwork and accessories for this room.
• Please just remove anything on or in the machines for photos and showings.

BEDROOM TWO

• We want this room to appeal to an older child. I will bring artwork, cushions and accessories for this room.
• Please put your paddle from the dining room in the far corner by the window. It will fit in with the theme of the room.
• Please keep all the lanterns that you have around the house.
• Please remove the artwork.
• Keep the lamp.

BEDROOM THREE

• Please remove everything from this room except the cube storage unit.
• Chris will bring in bed and some staging acesories with Cars theme.

BASEMENT

• This room looks great. Ideally, I would love to bring the artwork closer together if the holes don’t show.
• Turn your movies around the shelves so you can’t read the labels.
• Remove everything from the top of the higher unit.
• Tidy the desk as much as possible.

• Remove the dog beds, the heater, the 4 pictures and the lamp. We might put the floor lamp from the loft here instead.
• Clear off the top of the bookcase and all the little pieces on the shelves except the books.

If you are curious about what we can do for you please feel free to get in touch.

WHEN SELLING MY OTTAWA HOME AND BUYING A NEW HOME IN OTTAWA, DO I PAY CMHC?

As an Ottawa realtor, I’m often asked by my clients that are both selling and buying a home, if they will have to pay CMHC again. It is an important real estate question and we want our clients to have all the answers before proceeding.

What is CMHC?

Canada Mortgage and Housing Corporation is insurance which protects the lenders and thereby allows buyers to put a lower downpayment on a purchase and in most cases allows more competitive rates.
Now knowing what CMHC is, we know it is applicable depending on the size of the downpayment and whether or not the lender would like the mortgage insured.

Here are some scenarios to help you better understand if CMHC would be applicable to you.

Staying With Your Current Lender

Conventional Uninsured Mortgage – If you are staying with your current lender and your new purchase will have a 20% downpayment or higher, you will most likely not have to pay CMHC unless your current lender requires it as part of their guidelines to be a Conventional Insurable Mortgage.

High Ratio Insured Mortgage – If you are staying with your current lender and your new Ottawa home purchase will have less than a 20% downpayment, you will most likely have to pay the top-up premium on the new amount. For example: Your home sells for $400,000. Your Mortgage amount owing is $350,000. You use the equity from the sale of your home for your new purchase of $500,000. This would approximately only be a 10% downpayment and would require you to pay CMHC and the top-up difference. The difference would be $500,000 (purchase price)-$50,000 (downpayment)-$350,000 (previous mortgage amount) = $100,000 (additional new mortgage amount). As of January 15, 2019, with a 90% L-T-V (10% downpayment) the premium on a top-up is 6.25%. So your top-up CMHC premium would be $100,000 x 6.25% = $6,250 (as a new premium would be 3.10% which would be $450,000 x 3.10% = $13,950) Also please note: your mortgage must stay at the existing amortization remaining on your current mortgage for the top up premium to be used in most cases.

Changing Lenders

Conventional Uninsured Mortgage – If you are changing your lender and your new purchase will have a 20% downpayment or higher, you will most likely not have to pay CMHC unless your new lender requires it as part of their guidelines to be a Conventional Insurable Mortgage.

High Ratio Insured Mortgage – If you are changing lenders and your new purchase will have less than a 20% downpayment, you will most likely have to pay the top-up premium on the new amount or full CMHC on the total loan amount. Whichever is less. This is where having a mortgage broker’s guidance can help answer whether it is better to pay full CMHC or the top-up premium.

ANNUAL REAL ESTATE REPORT: OTTAWA 2018

RECAP OF 2018

When I set out last year to undertake this exercise I was optimistic 2018 was going to be a good year. I could not predict just how hot our market was going to be. Early in 2018, there was a significant shortage of housing inventory across the city. This is usual in places like Westboro and the core of the city. This past year that shortage spread to the suburbs-especially in the west end of the city. The lack of inventory was apparent in almost every class of property and price range. The most active being between 300-450k. In many cases, our clients were offering against as many as a dozen or more other buyers. This is common practice in cities like Toronto but a newer phenomenon here in Ottawa.  The spring brought lots of new inventory and this helped stabilize things. It was still a seller’s market but as the year went on it became less competitive for properties. Instead of 12 offers on many of the listings, we started seeing 2-4 offers depending on price range. Let’s have a look at the numbers driving our market.

KEY INDICATORS 

AFFORDABILITY

Ottawa households have one of the highest household income averages in Canada. If you see the graph on the following page you can see that prices are still relatively affordable for Ottawa buyers. This graph looks very different for buyers in cities like Vancouver and Toronto.

IMMIGRATION

If you Google best places to migrate to in Canada, Ottawa seems to be the number one choice. I am seeing many more immigrants choose Ottawa as their final destination. Toronto and Montreal are of course popular but when someone researches where to live in Canada,  Ottawa comes out close to number one in almost all categories.

The common misconception out there is that these immigrants do not have the funds to purchase real estate. That is not always the case. In many instances, it is their credit or lack thereof that may be holding them back. In any case, these immigrants are coming at a record pace and will likely be purchasing real estate in the future.

	MORTGAGE RULES AND INTEREST RATES Banks have been forced to stress test buyers at a full 2 percentage points higher than the interest rate of their mortgage. This can impact purchasing power by almost 20%.  I see the need for this but as house prices rise in major market centres there has been plenty of pushback. Interest rates have been slowly rising and this has put pressure on affordability for some buyers. If this trend continues it will have an impact on the market for sure. With the economy being more sluggish, the need for further increases may be curbed.
	LOCAL ECONOMY Ottawa has always been an underrated city in my view. We have a strong local economy with one of the highest median household income averages in Canada. Our unemployment rate is at historically low levels. It is a prototypical government town that has a growing technology sector and lots of solid, high paying professional jobs. It is only a matter of time before our prices surge and we become a global player in real estate. For a world-class capital city our prices still might be a bargain. Time will tell!
	ELECTION YEAR Housing affordability has climbed up to be one of the top issues for millennials. This makes it an election issue. A recent poll found that 64% of millennial voters want the government to do something about climbing prices. We will see the politicians respective platforms later this year. My prediction is that some of these platforms will have policies that will make it easier or more affordable for buyers to purchase. It could mean the return of 30-year amortizations. The stress tests might be eased or there could be a new policy altogether. Something to watch for sure.
	VACANCY RATE This year renters are facing a 1.3% vacancy rate in Ottawa. This is an all-time low. It has made finding a rental very competitive. Often times renters are actually in multiple offers for rental properties. There is a similar pattern in other major market centres across Canada. As house prices increase it is forcing some people to rent rather than buy. Might be a great time to purchase a property to rent out.
	GROWTH AND INFRASTRUCTURE Ottawa is growing and maturing into a world-class city. We should all be grateful to live in a city with such a high quality of life. By March we will have light rail going right downtown that will make life easier for commuters. This will just be the start of a much broader transportation plan. We have a super hospital that will be coming online in the years to come. Lebreton will eventually get the green light for redevelopment. Lots to be excited about. These will help fuel our economic growth in the years ahead.

2019 FORECAST

I believe it will be another strong resale year for Ottawa homebuyers and sellers in 2019. There is still pent-up demand and lots of buyers looking to purchase. This was reinforced just before Christmas as our team was involved in 2 multiple bid situations in the Fairwinds area. The targets were modern semi-detached townhomes, one that we sold for a record price with 3 offers. This is not the kind of activity you would typically see just before Christmas. It is indicative of the market in the entry level price points. The $350k-450k market will continue to be red hot this year. I have spoken with a few builders who had record years. Next year many homebuyers will be on the move to their newly built homes. This will hopefully create some much-needed inventory in 2019.

I predict we will have another seller’s market that will slowly slide to a balanced market by the time 2019 is complete. Barring an international crisis, it will be another great year for the Ottawa Real Estate market.

If you are curious about your homes worth please fill in this form for a no-obligation market assessment.

OTTAWA MARKET UPDATE FOR NOVEMBER 2018

The Ottawa real estate market has been so interesting to track over the past 12-18 months. It simply continues to stay heated while other major markets in Canada cool.

Here is great insight from our board president Ralph Shaw:

“When you look at what’s happening in real estate markets across Canada, Ottawa’s market performance is the polar opposite, Our market fundamentals are very strong, and we have experienced steady growth for many years, and indeed decades.”

This is kinda what I have been saying in all my recent newsletters. The foundation of our market is so solid with record unemployment and high consumer confidence. Affordability is still very good in relation to our incomes. As we examine November sales numbers we see the drop in sales by 7.2% Over November of last year. This is a reflection of the lack of inventory available to buyers, not any type of cooling in the market. Good inventory is tough to find. Keep in mind most sellers also need a good property to purchase before they put their houses for sale. I think next year we will see some easing of this inventory challenge.

OTTAWA MARKET UPDATE FOR OCTOBER 2018

Each year CMHC releases detailed reports on each of Ottawa’s major market centres. Interestingly, Ottawa is the only city to experience continuous growth in both sales and prices since 2015. We are outperforming other markets because of our healthy economy and relative affordability. The unemployment rate is at its lowest rate in a decade. CMHC suggests prices will continue to climb in both 2019 and 2020 in Ottawa. Which makes me wonder why everyone does not have an investment property.