Author Archive
Posted on: August 24th, 2016 by Chris Scott
One of the toughest choices facing Ottawa Buyers is exactly where to live. The city extends (on both sides of the Greenbelt) to the east, west and south of the downtown core. Figuring out what your target neighbourhood is can be a daunting task – especially if you are relocating to Ottawa.
Schools and distance to work will play a significant role in your decision. Your wish list will also play a role – how much yard do you want, how much house do you want, how big is your budget, etc. The further out you go from the city’s core you go the further your money will go. That’s why suburban areas like Orleans, Stittsville, Barrhaven and Kanata are becoming so popular.
Your lifestyle is also an important factor – do you want to be close to restaurants, pubs, shopping, or have the ability to bike or walk to work.
For many people they are willing to pay more to have the Urban lifestyle. There are lots of factors to consider for sure.
If you need help figuring out what neighbourhoods are right for you, feel free to get in touch. I am always happy to help.
Chris
Posted on: August 10th, 2016 by Chris Scott
I want to share this article from the Toronto Sun with you – it clearly spells out how real estate commissions work.
The real estate industry operates on being paid only upon a successful result. This means that if your property does not sell or close, you do not pay.
The fact that the fees associated with real estate are based on this contingency is good for consumers. But does this mean that a successful seller pays for the collective work done by real estate agents in all of those unsuccessful transactions? This may be a reason why fees have hovered around 5% for some time now, even as house prices have escalated tremendously over the past 20 years. I guess the real question is what is a fair fee to pay for a successful real estate transaction and how does it all work in paying for the services of both the sellers’ agent and the buyers’ agent?
To put it all in perspective, a lawyer might charge upwards of $1,000 per hour for their services, and where half of the lawyers lose half of the time also happily will take contingency cases on a 30-50 per cent basis. In comparison, the real estate industry offers better value by charging only on success. But how it all works is tricky and requires some understanding.
Once you have chosen a real estate agent to sell your home, they present you with a listing agreement which is probably a Multiple Listing Sale (MLS) and you have to agree on a fee for their services. This is not only for what they will do for you, as it also includes the amount that you will be offering to the buyers’ agent for participating in the transaction. Let’s start here as all buyers’ agents are paid by the seller through their listing agent upon a sale. This means that once the deal closes and the seller gets their money, both agents get paid.
The commission offered to the buyers’ agent is publicly disclosed on the MLS listing, and this is a key incentive to buyer agents. If your listing offers 3% to the buyers’ agent, this is going to be more positively viewed by them than if you are offering 2.5% or less. You should offer a commission that is consistent with what’s being offered in your area. For comparison, ask your listing agent to show you all of the broker full listings, as this is where the commission rates are fully disclosed to the real estate industry. My advice is that if all of the competitive neighbourhood listings are offering 2.5% to the buyers’ agents, you should consider offering the same amount or possibly more for your listing to stand out stronger to the agents compared to the other listings being offered for sale.
This takes care of the buyer agent; however, in most cases, the sellers’ agent is doing more of the work. They should have the incentive to try and earn an amount equal to what’s being paid to the buyers’ agent.
Have a candid discussion with your agent to confirm all of the things that they are including in their package of real estate services: MLS listing, sign on the property, advertising, floor plans,
photographs, video tour, drone photography, full colour brochure, pre-home inspection, etc. Go over everything that they propose to do and the costs (to you as well as to them), then discuss and decide on a fair fee.
What if your agent double-ends the property without the help of a buyers’ agent? Should the overall fee be reduced? This is difficult to do if there are competing offers as your agent is required to make disclosures about this and can alienate the buyers’ agents who are participating in the multiple offer bidding at the time.
Good real estate agents provide excellent and fulsome services that are varied and unique. The ones who deliver you a successful transaction with no problems deserve to earn a fair fee, which may not be the lowest. I always say that you get what you pay for. Make sure that everything is crystal clear from the outset on the total cost of their services to you, as well as what is included and what is not. Consider, as well, that the fees are subject to HST.
Remember: the buyer is really paying the cost of the fees, which are built into your asking price. Allow your agent to be properly incented to do the best job that they can. Let them show their mettle by pushing the buyer to a price that gets you the net that you want!
Stephen Moranis, B.Comm., MBA, FRI, CMR has been active in the North American Real Estate Industry for more than 40 years. He is a former President of the Toronto Real Estate Board and a former Director of the Canadian Real Estate Association.
Toronto Sun, July 2016
Posted on: August 10th, 2016 by Chris Scott
Summer resales sizzle in a hot July
The hot summer continues – both in weather and real estate! Sales continue to outpace 2015 numbers in both monthly and year-to-date comparisons. Members of the Ottawa Real Estate Board sold 1,491 residential properties in July through the Board’s Multiple Listing Service® System, compared with 1,430 in July 2015, an increase of 4.3 per cent. The five-year average for July sales is 1,413.
Things have slowed down slightly from the record-breaking June numbers, but this is typical in the summer. Units listed in both residential and condominium property classes have declined throughout the year, which has affected overall inventory levels. The number of active listings at the end of July 2016 is down about 15 per cent compared to July 2015. At just over the mid-year mark for 2015, year-to-date sales volume is up by 5.3% over last year.
The average sale price of a residential-class property sold in July in the Ottawa area was $398,608, an increase of 1.1 per cent over July 2015. The average sale price for a condominium-class property was $259,794, an increase of 1.2 per cent over July 2015. The hottest segments in our market for July were two-storey and bungalow residential homes in the $300,000 to $400,000 price range.
Buying or Selling a home is likely one of the largest financial transactions you will do and should be handled by a professional Realtor®. If you are thinking of buying or selling – or you know somebody who is planning to do so – please give me a call. I’m happy to help.
Chris
Posted on: July 23rd, 2016 by Chris Scott
Staging is an important part of the selling process. Recently I had some clients come to me with some tight timelines to get their house ready to sell. My stager and I came up with a game plan and the results were great. They sold their Ottawa home in one day for close to asking price. See the transformation here:
http://styledandstaged.com/staging-transformations/3-steps-perfect-staging/5538
Posted on: July 7th, 2016 by Chris Scott
HOT JUNE MARKET!
Members of the Ottawa Real Estate Board sold 1,985 residential properties in June through the Board’s Multiple Listing Service® System, compared with 1,691 in June 2015, an increase of 17.4 per cent. The five-year average for June sales is 1,717. June sales turned out to be the highest sales in any month EVER in the history of the Ottawa market.
There is usually a dip in sales as we move from May to June with May generally being the “peak” month. We will be watching the trend over the summer when sales typically slow down.
Year-to-date units sold for the first half of 2016 are up 5.4% compared to the first half of last year. A total of 3,220 residential and condo properties were listed in June, capping the month off with approximately 8,300 properties on the market, down 11.5 per cent from June 2015.
The average sale price of a residential-class property sold in June in the Ottawa area was $399,382, a decrease of 1.3 per cent over June 2015. The average sale price for a condominium-class property was $264,913, a decrease of 2.4 per cent over June 2015. Residential two-storey and bungalows continue to have the highest concentration of buyers in June.
Referrals are extremely important to me and to the success of my business and every neighbourhood has its differences- so if you are thinking of buying or selling, please give me a call.
Chris
Posted on: June 8th, 2016 by Chris Scott
The May weather was steamy and the May real estate market just as hot. The Ottawa resale market continued its steady pace upwards, continuing an above-average trend for the month of May.
Members of the Ottawa Real Estate Board sold 1,921 residential properties in May through the Board’s Multiple Listing Service® system, compared with similar sales of 1,926 in May 2015. The five-year average for May sales is 1,864. In May, 3,635 homes were listed. Ottawa is riding a strong and steady spring market.
The average sale price of a residential-class property sold in May in the Ottawa area was $406,063, an increase of 0.6 per cent over May 2015. The average sale price for a condominium-class property was $264,801, an increase of 1.5 per cent over May 2015. Residential two-storey and bungalow homes had the highest concentration of Buyers in May.
If you are thinking of buying or selling, or know of somebody who is, please give me a call. I am always happy to help. Don’t forget those referrals – they are so important to the success of my business and I appreciate every one of them.
Chris
Posted on: May 31st, 2016 by Chris Scott
This standard form was created by the Ontario Real Estate Association. It is completed by the listing party and contains information about the house being sold based on the Seller’s knowledge and experience in the house. Some Ottawa home buyers will ask for this as part of an offer.
Sellers are not required by law to complete this form. If you do, then your agent is required to acknowledge its existence and inform all potential Buyers. If the Buyer, however, makes an offer conditional upon having an SPIS, then the Seller either has to complete one, scratch it off the offer or decide not to sell to that Buyer.
There are legal implications associated with an SPIS. If a Seller has completed an SPIS, he/she could be held accountable if the information is incorrect or misleading.
Agents are obliged to make Sellers aware of the implications of an SPIS and the importance of accuracy and also that the Sellers are not legally required to provide this information. However, sellers must disclose all material facts with or without an SPIS.
Posted on: May 5th, 2016 by Chris Scott
April turned out to be the best month for unit sales since 2010! Members of the Ottawa Real Estate Board sold 1,714 residential properties in April through the Board’s Multiple Listing Service® system compared with 1,567 in April 2015, an increase of 9.4%. The five-year average for April sales is 1,568.
Also in April, 3,644 homes were listed – up 13.8% since March but down 2.8% over April, 2015. Inventory levels remain healthy heading into what is normally the most active month of the year. April seemed extremely busy so if May is expected to be even busier, hold onto your hats!!
The average sale price of a residential class property sold in April in the Ottawa area was $403,603, an increase of 0.2% over April 2015. The average sale price for a condominium class property was $261,017, a decrease of 1.8% over April 2015. The hottest segments of our market for April were sales in the $300,000 to $400,000 price range. Residential 2-storey and bungalows had the highest concentration of buyers in April.
If you, or someone you know, is thinking of buying or selling, please give me a call. I’m happy to help.
Chris
Posted on: April 19th, 2016 by Chris Scott
Members of the Ottawa Real Estate Board sold 1,166 residential properties in March through the Board’s Multiple Listing Service® system, compared with 1,200 in March 2015, a decrease of 2.8%. The five-year average for March sales is 1,220. It is, though, a definite increase from the previous month sales – 256 more properties.
Properties are starting to sell more quickly, indicating we are heading into our busy spring market. In March, 3,203 homes were listed – up 38.6% since February.
The average sale price of a residential class property sold in March in the Ottawa area was $394,951, an increase of 2% over March, 2015. The average sale price for a condominium class property was $258,714, an increase of 2.4% over March, 2015. Canada’s capital continues to be a great place to buy and sell real estate!
Every neighbourhood has slight differences so please do give me a call if you are thinking of buying or selling – or know of somebody else who is. Referrals are very important to the success of my business so please do think of me when it comes to real estate.
Chris
Posted on: March 3rd, 2016 by Chris Scott
Leap Year Phenomenon or Early Spring Market?
Members of the Ottawa Real Estate Board sold 911 through MLS. The five-year average for February sales is 908.
There were 46 sales on that extra day in February this year which may account for some of the increase! Listings were also up, with 2,312 homes listed in February alone causing the inventory to rise by 10.7% since January. This is providing lots of options to buyers out there. More homes are coming onto the market in preparation for the busy spring selling season. If you’re thinking of putting your home on the market, this is a great time to do so. It might be good to beat the Spring rush.
The average sale price of a residential-class property sold in February in the Ottawa area was $384,632, an increase of 1.2 per cent over February 2015. The average sale price for a condominium-class property was $249,727, a decrease of 6.8 per cent over February 2015. The condo market continues to struggle – there is still way too much supply in this segment.
Every neighbourhood is unique. Feel free to get in touch with me to find out what’s happening in your area. Now is the time to buy or sell if you have been thinking about it. It is an active market for sellers and for buyers and there is lots of good inventory to choose from.
Chris
