Archive for the ‘Chris’ Blog’ Category
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
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: May 28th, 2015 by Chris Scott
According to CMHC, MLS® sales are expected to remain flat between now and the end of 2016 and in spite of flat sales and rising listings, balanced market conditions will prevail in 2015. Listings will edge higher in 2016 and, as a result, the average price of a resale home will show a small increase.
Total housing starts are expected to decrease slightly mostly due to a reduction in condo apartment starts. The inventory of completed and unsold condo units will gradually decrease causing starts to edge up again in 2016.
Housing demand is expected to remain steady in Ottawa in 2015 due to low mortgage rates and affordable prices. This may change in 2016 with modest price growth and potentially higher mortgage rates.
An increase in the supply of secondary rental market units will provide more options for renters this year but this will be short-lived as the demand for rental units is expected to increase in 2016.
If you are curious about property values in your Ottawa neighbourhood feel free to get in touch.
Chris
Posted on: January 8th, 2015 by Chris Scott
Every year I go through statistical reports from CMHC, top brokerages, economists, and our local real estate board. My objective in this research is to try and get a feel for where the market is heading in the upcoming year. I also poll other Realtors in my office to try and get a gauge on the pulse of the market. 2015 has been the most challenging to predict.
I think we are facing a new reality for Ottawa’s real estate market. I am not Nostradamus but I feel I can almost predict what the next few years will bring. Houses will take longer to sell and prices will be very flat with little or no change. CMHC predicts increases in line with inflation. This is good news. Other economists are predicting a decrease in price in the upcoming year. For many the prospect of this is frightening. Many of us have a significant portion of our net worth tied to the value of our home.
With 3 properties in Ottawa I can relate. However, I am not worried. We just purchased an investment property late this year. I understand the next few years could be challenging but it is the long-term 10-20 year big picture I am most interested in. Ottawa has historically had a resilient real estate market. We still have good economic fundamentals and the long term projected growth of the city will eventually tilt the favor back to sellers.
These more challenging market conditions make it imperative for both buyers and sellers to be aligned with an experienced and qualified real estate professional.
Posted on: September 26th, 2014 by Chris Scott
We were talking today about some embarrassing moments being a Realtor. I have had a few. The front runner was pretty easy to identify.
I was waiting in my car for my chance to present an offer on behalf of my clients. We were in a multiple bid situation. It was an unusually dark night. I had a junior agent with me and was teaching him how to present offers. I felt pretty cool that I was a senior agent. It was late, must have been 10pm.
Anyways, I was called to present and had one thing on my mind- get this deal together for my clients. As I approached the front door I could see everyone looking at me at the dining room table. The door was open so I walked right in. However, I failed to spot the mesh wire of a front screen door and walked into it at a very fast pace. If you have ever been fortunate enough to witness someone walking into a screen door you can appreciate just how hilarious it looks. Not the first impression I was looking for. I think the screen actually bounced me back into the junior agent. It was like walking into a trampoline!! Some of the screen also ripped open on the side. It did break the ice! The sellers were cool.
We all had a good laugh at my expense. I felt they may have laughed a little longer then I would have liked. But in the end everyone left happy. The sellers got more then asking, the buyers a house, and the junior agent left with a good story.
Chris
Posted on: August 22nd, 2014 by Chris Scott
Imagine going into a bidding war on a house against your best friend.
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 and very goods friends 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 the 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 craziest 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!
Chris
