Archive for the ‘Chris’ Blog’ Category
Posted on: January 12th, 2017 by Chris Scott
I am pleased to provide you with my year-end review of the real estate market for the Stittsville area.
In December, 17 homes were sold in Stittsville compared to 12 homes in December 2015. In terms of sales since January, Stittsville has seen 472 sales this year compared to 481 over the same period last year. That is a modest decline of 1.9%. This decrease in sales volume has had no negative impact on sale price though.
The average sale price of a home sold in Stittsville rose by 1.4% to $423,364 from $417,543 last year. When we look more closely, we can see that it is the single detached home category that supported this rise, as these homes sold on average for $471,004 which is about a 1.9% increase over the last year. Row home prices are also up slightly to $316,988 or 0.9% increase.
Where the biggest real estate change can be observed is in the total days on market. In Stittsville, much like the rest of Ottawa, total days on the market continues to increase. Year-to-date, the average time to sell a home in Stittsville is 65.5 days. That number is up from 59.7 days average last year. For row homes, including semi-detached homes, it has taken 49.8 days to sell this style of homes, yet for a detached home, it took 72.6 days, on average. Last year, these numbers were 50.5 and 63.7 days respectively. The average days on market for the entire Ottawa Real Estate Board and for all residential home styles combined was 85 days, January to November.[1]
And how do sale prices stack up against listing prices? In Stittsville, this figure stands at approximately 97% which is a 2.2% increase over last year.
If you would like to know your home’s value, please fill out our Home Evaluation Form here: Sellers Home Evaluation
All data from Ottawa Real Estate Board © 2016.
Posted on: January 4th, 2017 by Chris Scott
Imagine going into a bidding war on a house against one of your best friends.
Well, I was the Realtor caught in the middle.
It was a cold, snowy night in Ottawa. I was on my way to show a house that had just come on the market to some really close friends of mine. It looked to be a perfect fit for them. It had only been on the market for a few hours. As I approached the house I got another call from another couple who also happen to be very goods friends of mine who wanted to see the same listing. You have to understand that these two clients were also very close friends themselves (in each others wedding party’s close). My first thought when I got the call was that this was going to be awkward. But really….what was the chance of this house being “the one” for both of them?
Well, that question was answered about an hour later. After showing it to each of them back to back; my first thought was bang on. This was going to be awkward!
They both loved the house and wanted to place an offer on it. We couldn’t find a solution where everyone was happy. So…. they went into a bidding war. What are the chances of facing off against a good friend for the same house!!!
I excused myself from dealing with my second friend (because they were call #2) and set them up with a top Realtor in another office. That way everything we did was confidential and I wasn’t in a more awkward position of representing both parties.
Naturally, the client I was working with ended up securing the house. In the end, my inspector Sean uncovered some issues the seller was trying to conceal. That was the end of that house. In the daylight some of the whackiest neighbours I have ever seen were also revealed……but that is a story for another day.
All that agony, awkwardness, sleepless nights and no deal!
We have laughed about this many times since. Both clients found great houses shortly thereafter and we are all still good friends today. It could have been a lot worse!
Posted on: November 16th, 2016 by Chris Scott
On Monday, the Ontario Liberal Government announced it is doubling the rebate on the land-transfer tax for first-time homebuyers to $4,000. This effort is to encourage first-time home buyers. The increased rebate will take effect January 1, 2017.
According to the Ontario Finance Minister Charles Sousa doubling the refund will result in over half of first-time home buyers in Ontario not paying the land-transfer tax on the purchase of their first home.
This tax break may be the just the right encouragement to help Ottawa first-time home buyers buy a place of their own. The average purchase price for first-time home buyers in Ottawa is $368,000 which means they will pay no land-transfer tax because of the new rebate.
– Chris Scott
Posted on: October 11th, 2016 by Chris Scott
The Federal Government is taking steps to ease emerging risks in the country’s housing market. The new measures should slow the injection of foreign cash and will tighten the eligibility rules for prospective borrowers. The sizzling Toronto and Vancouver markets are out of reach for many Canadians and some fear that foreign investment money in these markets has helped drive up prices. There is also growing concern that Canadians have too much debt.
Beginning on October 17, 2016, all insured mortgages will have to undergo a stress test to determine whether a borrower could still manage to make his/her mortgage payments if the rates went up or their income went down. Currently the test will be to ensure all insured borrowers can qualify based on the posted rate for a 5-year rate mortgage (now 4.64%).
On November 30, 2016, several eligibility rules will tighten on mortgages where borrowers made down payments of at least 20% of the purchase price.
The Government plans to tighten a loophole on an exemption that allows homeowners to avoid paying capital gains on tax on the sale of a principal residence such that this exemption will only be available, going forward, for Canadian residents and families will only be allowed to designate one home as their primary residence.
Other key measures that will affect all insured mortgages is a maximum amortization of 25 years, a maximum purchase price below $1 million, only owner-occupied properties being eligible and a total debt service ratio of 44% at the time a loan is approved.
Experts believe these measures will serve as a “tap on the brake” that could lead to a “slight, additional slowing of a market that is already slowing”.
New consumers unable to meet these requirements could be shut out of the market and even consumers with existing mortgages might be unable to easily switch lenders. It remains to be seen whether the changes will have a cooling effect on hot housing markets or how much more difficult it will be for would-be homeowners to secure mortgages.
If you have any questions about this – or anything else related to real estate, please give me a call.
Chris
Posted on: September 24th, 2016 by Chris Scott
It’s hard to believe we got off to a quiet start this year. The market has been so hot as of late. We have had some record-breaking months in units sold. August was another hot month. There were 1484 homes sold in August – a 16.4% increase over the same month last year. This represents the best August on record for the Ottawa Real Estate Board.
The average price of a residential property is up 2.5% compared to August of last year. For August we were at $389,786.
Condos made a big jump last month compared to August of last year. Condo prices are up 11%. The average price of a condo in Ottawa for August was $262,166.
These stats are monthly. This past month there were more than usual 1 million+ homes sold which could account for some of these increases.
It is an interesting market. On the one hand you have all of these positive statistics and then I look at the average time on market. The average home is taking 92 days to sell. That is up 34% from August last year. For condos it is taking even longer to sell at 106 days on market – up 12%.
There is more competition on the market right now. Lots of inventory with builders – especially downtown condos. I predict a strong finish to the year.
By the way – Ottawa was just named the 2nd best city in Canada to raise a family!
Chris
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: 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: 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
