Listing strategy and tough seller decisions for 2019

when is the best time to list my property?

While our Ottawa market has been favouring sellers for a year or two now, they still have a lot of important decisions to make in arriving at their listing and marketing strategy for a successful sale and maximizing the equity from their property.  Here are a list of items we think sellers will wish to consider:

When do I list my property?
Always a critical question, of course and one mostly determined by where one is moving and how long a current property may take to list, sell and close.
Our 3 biggest sales months of the year are typically April (#3), May #1 and June #2 which many sellers consider as the best time to sell.  Given our current low listing inventory situation, however, just about any time is probably OK for most properties.

How long will my property take to sell?
Days on market has improved with our strong market and most midrange properties should sell in approximately 30 days (or less!) and close in 45 to 60 days, although this varies with every property, buyer and seller.

MLS® listing or “exclusive” listing?
The best exposure to the most buyers is always via a full service MLS® listing that is exposed widely to all Realtors and their buyers through the MLS® ecosystem, especially realtor.ca. Some Realtors are plugging an “exclusive” listing strategy which has its purposes but is not as widely seen and generally not as effective for a seller in maximizing their marketing opportunity.

Pre-market via use of a “Coming Soon” sign on my lawn?
These signs have become quite prevalent, as listing agents seek to both do advance marketing and try to prospect for new clients via this grey marketing of listings that are not widely published via the MLS® system.  Though there are some legitimate uses for such a strategy, in most cases we think is more to the listing agent benefit than that of the seller.

Do I hold back offers until a certain date?
A very common strategy is to hold back offers during the first week or so a property is listed.  This gives as many buyers as possible the opportunity to view the listing in person and determine if they wish to submit an offer.  Multiple offers generally means the best market selling price available at the time but sellers may lose some buyers as a result.

Some buyers are not interested in the multiple offer process which can be stressful and seem like an auction.  Military or out of town buyers may not have the time to wait around until a seller offer date, as they are on tight timelines to identify and purchase a property, so one will lose most of these buyers by holding back offers.

What about a “bully” offer?
A “bully” offer is one that is submitted during the offer holdback period.  Such offers are typically very strong offers and also call for an immediate decision by the seller.  Tough call for sellers to make, as this buyer may come back on offer day or they may move on to the next property on their list instead and a seller may or may not get as good an offer come offer night.

Do I need to have an Open House in this market?
We suspect the number of open houses is way down these days, as properties sell quickly.  An occasional open house may still be useful for that casual buyer who is not working with a Realtor or the “I’ll-know-it-when-I-see-it-buyer”

How much commission should I pay?
There are two important components here: one is total commission to be paid but also the split between listing agent/brokerage and buyer agent/brokerage.  Sellers should understand both carefully, as there are a number of commission plans out there that may offer an attractive lower commission rate but also restrict the amount of commission being offered to the buyer representative and brokerage which may impact the interest level around that listing.

We are able to offer significantly lower commission costs than almost all other realtors, due to our status as an independent non franchise brokerage with less overhead to cover.  Give us a call and we can discuss your plans and how we can optimize your marketing opportunity and transaction costs.

 

Gord McCormick, Broker of Record
Dawn Davey, Broker
Oasis Realty Brokerage 613-435-4692  oasisrealty@rogers.com oasisrealtyottawa.com 

Why Ottawa will have the best winter sales in a decade or more

sales should help “warm” Ottawa winter

Ottawa real estate normally pretty much hibernates from late November to late February but this may not be the case this year.  Buyers and sellers will want to consider the following factors and consider whether they wish to move up their buying or selling plans accordingly:

 

Listing inventory at decade lows:
The level of available properties to purchase continues to be extremely low and the number of new listings coming on the market, shows no signs of reversing this trend. Supply/demand alone would suggest that this has to put more upward pressure on selling prices.

Residential listings are currently 17.5% lower than last year, 35.5% lower than 2016 and 48.8% lower than 2015.

Condo listings are 34.5% lower than 2017, 45.5% lower than 2016 and 55.8% lower than 2015.

Even rental listings are down quite significantly, 31.6% lower than last for MLS rental listings.

Beat the price increase!  Your next house is going up $2-3K a month!

With residential prices on the way up (+5.7% through Oct 2018) that dream house is getting more expensive day-by-day.  For example:  a $500,000 property today may well be $525,000 or even $530,000 by the end of 2019 peak selling season.  That’s an increase of $2,000 to $2,500 per month and with mortgage rates also headed north, the cost of servicing a mortgage is also increasing.  The mortgage “stress test” which is typically 2% above the mortgage rate being offered is also moving upwards as rates rise thus making approvals more challenging for some buyers.

New construction price and availability:
Builders are also facing limited availability, after two record years of sales and also are facing some labour shortages and price pressure.  All of these factors will also continue to push up the price of new construction.

Mortgage rates:
Rates are pretty well guaranteed to rise a half point in the next 6 to 12 months, with an outside chance of going up a full % point.  This adds challenge to the approval process (mortgage stress test) and monthly cost for buyers and homeowners, so buying now and locking in at a lower rate will have some advantages. *new construction buyers will have to make sure they get a guaranteed rate from their mortgage broker or bank to cover them for the longer new build timelines.

Local economy is strong:
The local economy seems pretty solid regarding employment and there appears to be no signs of the Federal Government doing any significant belt tightening in advance of next year’s election. (Though one never knows?)  So our market should continue its current moderate upward path in the immediate future.

Provincial and municipal budgets:

A “new” city council in Ottawa is in place and we also have a relatively new Provincial government in Toronto.  The Provinces’ fiscal challenges are well noted and there are also signs that the City of Ottawa has its own issues.  Here are a few things that could happen that might add cost for buyers and sellers:

  1. If Ottawa council feels really in a budget pinch, is it possible that a Municipal Land Transfer Tax (MLTT) could be implemented here? This would add $5,000-$10,000 to the typical residential purchase transaction cost here and would cause a bubble and price run up in advance of implementation.   To put this in perspective: the total land transfer tax on a $500K home would jump to almost $13,000 and $21,000 for a $700,000 home purchase.
  2. What is the Provincial government going to do to fix their huge fiscal problem? Could they raise the level of the Provincial Land Transfer Tax? Add some other “luxury” or other tax on housing?
  3. Could Ottawa raise development charges which once again adds to the cost of new construction homes and condos?
  4. What effect will “inclusionary zoning” have on costs of new construction? This principle requires builders and developers to include provision for lower cost housing in their new projects but will certainly affect the cost of new properties, as it becomes more prevalent in the near future.
  5. Do the Feds have any plans in their National Housing plan that might affect buyers, sellers or homeowners?

 

Gord McCormick, Broker of Record
Dawn Davey, Broker
Oasis Realty Brokerage

613-435-4692 oasisrealty@rogers.com

Optimizing real estate transaction costs

 

Trends in legal services for real estate closings

Lawyers play a critically important role in closing real estate transactions and providing advice to buyers and sellers along the way.  At a recent legal seminar presented by Mark Weisleder of realestatelawyers.ca, we got a short update on several new trends in the closing process that are focused on making life simpler for both consumers and realtors.

Some lawyers will now come to you:
There are more than one lawyer around offering mobile services but it is certainly a great option for many buyers and sellers.  Having the lawyer (or representative) come to your office or home can be a time saver and very convenient.

Electronic funds transfer:
Lawyers can now do electronic funds transfer more readily in both accepting deposits and closing funds plus disbursing proceeds.  Super time saver for all concerned.  Saves trips to banks for certified cheques or bank drafts.

In the case of realtors, we receive commission funds immediately upon closing, along with notification that the deal has actually closed.  Age old system has relied upon lawyers mailing a commission cheque upon closing and the listing agent brokerage processing that cheque through their own banking network, while also cutting a paper cheque to the co-operating brokerage. Sellers of course, had to make another trip to the lawyers’ office to pick up a cheque for any net proceeds of their sale.

Multi-site closing locations:
Though interaction is minimal on real estate closings (1-2 meetings) many lawyers are now offering closing services in multiple locations across the city (or in the case of realestatelawyers.ca, at 35 locations across the Province)

House Key Management:
A cute and interesting timesaver for buyers and sellers, is that realestatelawyers.ca provides a lockbox to a seller which they install on or before closing day with a set of keys inside.  Once the transaction has closed, the sellers’ lawyer provides the lockbox code to the buyer and their lawyer and the buyer can gain immediate access to the property without having to drive to the sellers’ lawyers’ office or other physical location to pick up the keys.  The lockbox is gifted to the buyer, thus saving the necessity of a representative returning to the property to retrieve it.

Condo Status documentation package available electronically or on a rush basis:
Condo status certificate review is a critical function of a lawyer on a condo purchase.  Property Management companies have 10 days by law to produce these docs for a lawyer representing a buyer at a fee of approximately $100.  This is typically quite a pile of legal docs and schedules that have been photocopied numerous times but finally, these are being made available electronically.  (although most here in Ottawa still seem to require paper and a physical pick up or courier charge to get these to the buyer’s lawyer.

The 10 day allowable timeline for Property managers to produce the docs (though most are done within 5 business days) does drag out the conditional sales period for a condo sale.  This is not advantageous for a seller, as their property is pretty much “off the market” or suspended while awaiting these condo docs. Many property managers will provide an expedited service (24-48 hours) for double the typical fee (ie. Therefore $200) which becomes the buyer expense.

Condo docs good for 90 days:
We think a better idea all around, is for sellers to order the condo Status documentation package at time of listing and make it available to buyers and their agents to review when in advance of making an offer to purchase and thus shortening the need for an extended conditional period.  These are normally 5-7 business days for residential properties and 10 business days for condos. Condo status document packages are good for legal purposes for 90 days from date of issue, so as long as closing is within 90 days of the package date, they are very useful.

Multiple offers:
Having condo docs immediately available greatly facilitates multiple offers.  In Toronto, approximately 50% of sellers invest in condo doc package at time of listing, although it is still fairly rare here in Ottawa.  Some are doing it but probably less than 5%.  This is an idea worth pursuing for anyone selling a condo.  Buyers will want to make arrangements with their lawyer to review these docs ahead of making a purchase, as what is contained in those docs may determine whether or how much they wish to offer for the condo.

Fees and Disbursements:
A reminder for both sellers and buyers to be sure to ask for the cost of legal fees (the lawyer fees)  and disbursements necessary to process a specific transaction.  These fees include land transfer tax, mortgage registration, title insurance, courier fees, govt fees and other services necessary to complete a transaction.

Fees are usually slightly higher for a buyer than a seller. (+$200)

Gord McCormick, Broker of Record
Oasis Realty Brokerage
Ottawa 613-435-4692

oasisrealty@rogers.com  oasisrealtyottawa.com

 

 

 

 

 

 

Smoking cannabis at home compromises market value and marketability of real estate

how does cannabis smoke affect home sellers?

As Canada starts a brave new world with the legalization of cannabis, we have to remind all property owners about the dangers of residual smoke and its impact on market value.  Here are a few things to think about:

Most buyers aren’t smokers: Only about 20% of adult Canadians smoke tobacco and non-smokers are very sensitive to residual smoking odours and shun properties that exhibit a long term smoking habit.  We have had buyers enter properties for showings or open houses, who immediately turned around and left the property after smelling cigarette smoke.  These non-smokers will be equally not interested in a property with a heavy cannabis smoke residue.

Ambient odour often unknown to owners: As with many other household odours, the degree of smoke smell may be under appreciated or even unknown to those who live there every day, as one gets accustomed to it.

This is why buyers entering a property for the first time should “listen to their nose” upon first entering a property, as this is the best time to detect potentially out of bounds smells.  A damp basement is usually a giveaway from the first moment of entering, for example.  After a few minutes, however, our perception adjusts and the odour is not as prevalent at a cognitive level.

Hard to remove: Long term smoking in a property is not easily or inexpensively remedied and buyers will either walk away completely or very much de-value a potential property, to facilitate the remediation.

Growing personal marijuana: 4 plants per household should not create a major mould worry but will people stop with 4 plants? The “grow op” stigma created over the last few decades will be a tough one to shake and even if legal, we suggest those selling remove any and all plants and materials from their property prior to listing.  Why turn off even one buyer?

Don’t think it is OK to smoke in the garage: Many wisely smoke outdoors but just as many feel that smoking in the garage is OK.  Doesn’t help much with most buyers in our opinion, so smoke outdoors or better yet, not at all.  This applies equally to tobacco and cannabis.

Stigma remains: Hopefully, your neighbours are not big smokers, either-as this may scare away many buyers also.  Though this may fade as legalization moves forward, the stigma attached to cannabis smoke odour will impact sellers and buyers for some time.

Renters and medical marijuana users: These are two legal battlegrounds we can expect to see unfold in the coming months/years with legalization.  This will be an interesting challenge for both investor owners and corporate rental building owners and managers.

Gord McCormick, Broker of Record
Oasis Realty Brokerage
613-435-4692 oasisrealty@rogers.com
Ottawa, Ontario.

 

 

how to pay less real estate commission and get full service

The savvy seller can find a quality agent and broker and still get full service at lower commission rates.

What is normal commission?
The accepted norm for real estate commission is 5% of the sale price of a property.  Typically, the listing agent and the buyer representatives (and their respective brokerages) split this amount equally with 2.5% going to each.  With average prices continuing to climb, this adds up to a fair amount of a seller’s equity to cover the cost, as sellers normally pay both ends of the commission.

Don’t forget the HST! The average residential real estate transaction in Ottawa these days is almost $450,000, so this requires a commission payment of $22,500, using the 5% model…but wait…there’s more!  The HST is charged on the real estate services, adding another 13% or $2,925 to bring the total to $25,425.  So this is clearly and expense that a prudent seller will want to optimize.

As one can see from the photo enclosed, this seller paid only 3% commission which would be a savings of over $10,000 in commission and hst in the example of the typical $450,000 property above…that’s worth considering, right?

Typical commission splits between the sales person and the brokerage:
Most large brand name brokerage sales agents need to charge the 5% rates to cover their corporate overhead.  Though individual Realtors are able to determine their own listing fees as independent contractors, most are constrained via contract, company policy and management practice plus they also need to maximize their earnings, accounting for the split they must pay to the franchise and corporate real estate company.  These splits take 10-30% of the commission revenue earned in *most cases. (splits vary greatly across the industry)

Optimizing real estate commission:
There are many different commission approaches out there these days, many of them available from smaller or mid-size brokerages such as ours.  (to be fair, some agents with larger brokers also have variable commission fees but they are very hard to find-since they are typically not permitted to advertise their commission rates)

The challenge most sellers face is how to get a lower commission cost without having to sacrifice the level of service received.  Even the “for-sale-by-owner” companies (who misleadingly advertise “no commission”, IMHO) do most often require a commission payment to the agent and brokerage representing the buyer on top of the fees charged to “sell it yourself”.  Almost all buyer agents expect 2.5% (+HST) when providing a buyer and facilitating the transaction on behalf of both parties.  So “ for-sale-by-owner”  is not commission free and though it may cut down the total commission being paid, the seller does not have the same level of representation or service they would have had by engaging a listing sales person or Broker.

Mere Posting services:
There are some brokerages who offer very low “ listing end” fees but for limited services and of course, the buyer agent/representative is still looking for their 2.5%, so while this works for some, it may not be ideal in this high paced market.  While intuitively, our sellers’ market would suggest it is easier to sell and therefore marketing and service effort should be less (with commensurately lower cost)  this is not the case.  This market puts a lot of pressure on Realtors to get the price and marketing strategy right and manage a complex set of issues to get the best deal for their client.

The happy medium:
The growth of small and medium sized firms has proliferated in recent years, as many Realtors choose to lower their costs and also become more independent, away from the umbrella of the somewhat restrictive corporate franchise broker.

Firms like ours are able to offer lower commissions and more flexible programs, as we do not bear the overhead of the larger brokerage entities.

Types of commissions that work for sellers:
A seller who also buys with the same agent should expect to get some level of discount on the selling side.  We charge only 3% or 3.5% in this situation) A seller whose agent represents both the seller and a buyer of that property should also expect to pay less, since there is no other agent to pay. (we charge 2.5 or 3% only in these circumstances)

Day-in-day-out lower fees:
We offer the government contract rate of only 3.7% (+HST) for residential properties and 3.99% for condos or country residential properties on well and septic systems.

 Flat fees:
Some firms offer flat fees on the listing end ie $2,995 but typically there will also be a % charge for the buyer representative/brokerage, too.

Volume discount or negotiated discount:
Each property is different and each situation is different, so there may well be some discounts available based on the situation that can be negotiated.

Tips on commission hunting:
Make sure you know what services are being offered.  If you expect the typical suite of Realtor services, make sure these are being offered at the reduced price.  Ie if no professional photography, online marketing, showing feedback or open houses are included, you may not be getting the same value.

Make sure you know the commission rate being offered to the buyer representative who brings the buyer of your property.  Many lower commission plans also drop the % paid and this can have adverse consequences to a seller.

Make sure you know the distinction and are getting a full MLS® listing, as some agents offer a lower commission rate package on what is called an “exclusive listing” but this listing does not get published on MLS and the individual agent is often trying to sell the property themselves (like a pocket listing)  and not have to pay another Realtor for the buying end.  While this lower commission may be attractive, the power of MLS is that all listings go on realtor.ca and all Realtors and their buyers are exposed and engaged to get the listing sold to the widest possible audience. (2 million+ visitors per month)

Is the firm and individual offering the value priced commission experienced enough to manage your listing and are you comfortable with them?

Get all commission rates and service levels committed in writing and included as an addendum to the listing contract and that way you know what you are paying and what you are getting in return.

There are dozens and dozens of independent firms covering every corner of Ottawa, so don’t be shy about seeking one out and using them for your listing brokerage!

For more information about our boutique brokerage services, feel free to give us a call at 613-435-4692 or email oasisrealty@rogers.com  (not intended to solicit those working with other Realtors)  You can also find more Ottawa real estate information and tips at our social media accounts and blog below:

Gord McCormick, Broker of Record
Dawn Davey, Broker
Oasis Realty Brokerage Ottawa, ON

Oasisrealtyottawa.com
https://www.facebook.com/oasisrealtyottawa/
https://twitter.com/OasisrealtyOTT
http://blog.oasisrealtyottawa.com/

12th year in business!

 

How overuse of exclusive listings undermines MLS®

 

Given our existing low listing inventory situation, many Realtors are convincing their buyers to “try” an exclusive listing to sell their property. While anything a seller and listing agent choose to do is up to them, it does have some consequences for the overall market, including that particular seller.

These exclusive listings are often flagged with sign toppers that say “exclusive listing” or “Coming Soon…” and we believe many listing agents wish to cash in on the listing scarcity for their own marketing and prospect generation purposes. What better way to entice a buyer to contact them than to offer something they may not be able to access otherwise?

Seller cannot be sure they actually get full market value for their home/property:
Selling to a small subset or “VIP” audience of buyers does not necessarily generate a full market value offer. Full market value can only be obtained by the widest possible exposure of a listing to the full MLS® market over time and this does not happen with these grey market listings.
The bottom line is that if the seller is happy with the price they get…then so what? …but just like the seller who sells quickly and then wonders “ should I have listed higher?” the exclusive listing seller may wonder the same thing.

No oversight on “exclusive” listings:
These listings are not on MLS® and therefore not subject to the extensive policies and processes administered by our Ottawa Real Estate Board to ensure fairness and equal access. The Board has no authority to investigate such listings and the 63 pages of OREB MLS® rules do not apply, so though not probable-abuses are possible.  Ie. Might a listing agent choose to give preferential access to their exclusive listing to their own buyers?  Or to their own small circle of Realtor friends or preferred Realtors?  One of the reasons MLS® works so well is that it is available to all 3,000 plus Ottawa Realtors and their buyers with equal access.

Loss of listing inventory may artificially inflate demand in the MLS® marketplace:
Further limiting supply in the listing starved MLS® market, will only enhance demand and potentially push prices higher. Our Ottawa market has been successful over the years by being steady and not as subject to the peaks and valleys of some of our Canadian neighbours.  Spiking demand and driving prices up to double digit increases, risks a longer and flatter market when demand eventually does level off.

Loss of listing data hurts buyers, sellers and Realtors:
By selling a property on the open non MLS® market, the MLS® system gets no data capture from that transaction and that information cannot be used by future buyers and sellers (and their agents) to assess their own buying and selling plans. MLS® data (and photos!)  is critical to helping the marketplace judge what market value should be and losing out data makes that process more difficult.

Searching listings for buyers is a real challenge in this marketplace and the more places a buyer or buyer agent has to sift through to find new listings, makes the search process that much more difficult and frustrating.

MLS® listings should not be “old news”
If a large % of listings get advance marketed as “exclusive” listings for 2-4 weeks and then ultimately get listed on MLS® for full exposure then MLS® listings run the risk of being deemed “old news” which is not good for the credibility and integrity of MLS® as “the” place to go for new listings.

Just because you can, doesn’t mean you should:
Just because online marketing and social media presence make it easier and more immediate to market properties today than in the dark printed past, doesn’t mean one should short circuit the central MLS® system.

While many coin operated Realtors may choose to find the shortest, quickest way to a closing and a commission cheque, most will realize that continuing to utilize the MLS® system and protecting its integrity, is still the best way to market listings. Trying to short circuit the system for marketing advantage ultimately weakens our MLS® system and makes losers of us all.

Why is the listing agent proposing an exclusive listing?
We are clearly not in favour of the widespread use of exclusive listings and we certainly didn’t see too many of them when we had a buyers’ market back in 2015 or 2015. So most sellers should have the discussion with their listing agent and try to really understand what it is they are selling and why.  Ultimately, whatever seller and listing agent agree is fine but both parties should be aware that they could be missing out on “top dollar” by not marketing the property first on the full-fledged MLS® system where all buyers and their agents can easily find and consider the property on an equal access basis with well-defined policies and procedures in place.

If you wish to discuss this or any other residential real estate matter with us, we are happy to do so! Feel free to give us a call at 613-435-4692.  You can also follow other items of real estate interest on our website, blog and social media below.

Gord McCormick, Broker of Record
Dawn Davey, Broker
Oasis Realty Brokerage
www.oasisrealtyottawa.com   http://blog.oasisrealtyottawa.com/

https://twitter.com/OasisrealtyOTT   https://www.facebook.com/oasisrealtyottawa/

now at 1,500+ facebook “likes” and 12th year in business!

Why there are a lot fewer open houses on long weekends

Good time or bad time for an open house?
There is a very strong inherent bias against doing open houses on long weekends by many real estate professionals. The party line goes: “everyone wants to spend time with their families and won’t take the time to come to my open house”. You can also expect such sentiments to be heard from the “open houses don’t matter” crowd.  We believe that the reality is, many Realtors also prefer to have the weekend off (albeit probably well deserved!) with their family and thus pooh-pooh the notion of there being any value to holding an open house.  To be fair, many sellers may prefer to have family time, especially if their property has already been on the market for a while.

One can expect to see more open houses happening either the weekend before or the weekend after a long weekend. But does this mean one should avoid holding an open house on a long weekend?

In our opinion, absolutely not! If it fits the schedule and marketing plan for widest and timely exposure of a listing, there is absolutely nothing wrong with scheduling an Open House on a long weekend.  While it is true that many potential buyers will be spending time with their families or travelling, if a home purchase is a high priority and the property fits the buyer purchase criteria, we believe most will find a way to get to a pertinent open house.  In fact, the most highly motivated buyers may well be those that show up at these, though one should expect fewer visitors overall.

It is equally true that many buyers or out of town buyers may use the extra day of a long weekend to focus on their home search or at least include it in their plans.

Why there are even fewer open houses in 2017:
We have a strong market in 2017 with limited listing inventory. Consequently, things are selling faster and Realtors have to hold fewer open houses to showcase listings.

This can be a challenge for the casual “I’ll-know-it-when-I-see-it” buyer or those not engaged with a Realtor, as quite often homes will be sold or conditionally sold, before the first open house even rolls around.

So how are we spending this long weekend?
A very recent listing is ideally suited for showcasing this Labour Day weekend, so we are scheduled Monday 2-4 PM at 5K Banner Rd. This is avery reasonable townhouse condo near Algonquin College that has been fully renovated. Check it out! http://oreb.mlxmatrix.com/matrix/shared/5Z7Hy8fgMh/5BANNERROAD

Buyer top: search for all Open Houses being held this weekend on MLS® at www.ottawarealestate.org ….although there are just over 100 to choose from this Labour Day.

Gord McCormick, Broker of Record
Dawn Davey, Broker
Oasis Realty Brokerage
oasisrealty@rogers.com
www.oasisrealtyottawa.com  blog.oasisrealtyottawa.com
https://www.facebook.com/oasisrealtyottawa/
https://twitter.com/OasisrealtyOTT

11th year in business as a lower commission brokerage

 

 

 

 

Selling next spring? ….why time may be running out!

You’re kidding me right? We are not even at the end of August, yet “time may be running out”.

Well, think about it, there are only a few weeks of summer remaining (sorry!)  with weather warm enough to do a lot of outdoor prep that you will not have time to do in the early spring, because of cold or damp weather. This is true for anyone who may be contemplating a sale anytime between November and May but especially so for military personnel that are expecting a “posting notice” out of Ottawa which means an April listing.

Here are some sample projects that will help you get ready for a spring sale now:

Any outdoor painting, caulking, staining, sealing, parging or other concrete repair

Repair or replace any tired fencing or decking.

Thin out, weed and mulch gardens and plant new spring bulbs for colour.

Trim hedges, shrubs and replace any plants, trees or sod affected by bugs or heat.

Aerate, top dress and overseed the lawn and fertilize, so it will look great next spring. Hire a professional lawn service company or landscaping company if your lawn and gardens are in really poor condition.

Hint: extra watering in the fall right up to the time the snow flies is a great way to have lawns, trees, shrubbery and gardens look good early in the spring.

Clean out the eavestroughs once all the leaves are down this fall.

Get the windows cleaned inside and out.

De-clutter garage, garden shed and remove any extraneous items or materials from outside spaces.

Replace any tired outdoor furniture or accessories.

Dig out your home inspection manual and see if there are any outstanding items on the list that have not been completed.

Hint: consider a pre-listing home inspection right now! This may uncover things that need to be addressed and it may save a sale later. Many inspection items are a lot less expensive to fix before listing than after. A general home inspection may also conclude that a roofer, HVAC, foundation, WETT or other household system may require professional servicing or further inspection.  Better to find it now than later!

If there is a swimming pool, have it professionally closed and inspected this fall and keep copies of work orders, invoices and any repairs or quotes.

Get your driveway sealed, so it will look well maintained come spring.

You could also take some photos of the exterior of the house and yard, garden, shrubs, trees etc.  right now, as they probably look better right now than any time until early May.  Having some nice color photos to use for online in in home presentation during listings, is a great tool and allows prospective buyers to see the summer state of the exterior landscaping or other features.

This is by no means a complete list and you have not even started inside yet! If you would like to discuss what you need to do to be 100% “listing ready” for a spring or winter sale, by all means give us a call, if you are not already working with another Realtor.

 

Gord McCormick, Broker of Record
Dawn Davey, Broker
Oasis Realty Brokerage
613-435-4692
oasisrealty@rogers.com www.oasisrealtyottawa.com

A lower commission brokerage

Tick-tock: why the clock is ticking on getting a property listed, sold and closed in 2017

 

Forgive us if it sounds a little odd to be “counting down” on real estate sales and closings for 2017 but in reality, this is the case as we approach mid-August. How so, you say?

There are several key factors that create this tightening timeline:

1) Seasonal slowdown:
Our market unit sales volume steadily eases from its peak in April, May and June to the start of winter hibernation in mid to late November when things are really quiet for 60-90 days. Sales are progressively lower for each month following the end of June to the end of year and unit sales are lowest in December and January. Most buyers don’t want to move in during the winter (if they have a choice) and seeing properties in the winter and making a buying decision is more challenging.

Many buyers also like to get moved in time to enjoy Xmas season in their new home or before the snow flies, in early to  mid-December.

2) time-to-sell and time-to-close
Typical selling time in our strong market for midrange properties should be 30 days or so and remember one must add at least a week for a buyer to firm up their conditions.

Most buyers are looking for a 45-60 day closing period, particularly first time buyers or those coming from rental properties where 60 day notice to the existing landlord is required.

3) prep and lead time to get a property on the market:
There are always a few more things to do to get ready for professional photos and for the onslaught of strangers visiting your home at the outset of a listing period. Realtors need time to schedule photography, sign installation and marketing, so this “prelist” phase in most cases, will be at least 7-10 days.

While every property and sale will differ, adding the above takes somewhere in the order of 75-100 days, so the typical property listed by the end of August, is most likely to sell and close somewhere between mid-November and mid-December.

These timelines may be further skewed or lengthened if the property being sold is a higher priced or unique property or presents some selling challenges.

The best thing a prospective seller can do is to check with a Realtor and see how these timelines apply to their own property and what the likelihood is for success in line with the seller’s expectations. Though we have a strong market this year and listing inventory is much lower than in recent years, it is important to remember that rate of sale for the balance of the year is quite different than what we have seen in the last 3-6 months.

If you are not currently working with a Realtor, please feel free to give us a call and we will be happy to provide a no cost no obligation market evaluation of your property and how we might be able to assist. For more information or to get check out more information on Ottawa real estate, please see our online co-ordinates below.

Gord McCormick, Broker of Record
Dawn Davey, Broker
Oasis Realty Brokerage
613-435-4692 or 613-371-9691
oasisrealty@rogers.com   oasisrealtyottawa.com
https://www.facebook.com/  oasisrealtyottawa/

@oasisrealtyOTT   http://blog.oasisrealtyottawa.com/

A lower commission brokerage, 11th year in business

Let’s dispel a major myth about Ottawa real estate in the summer!

Let’s dispel a major Ottawa real estate myth: that summer is “dead” in real estate

It has long been held that summer is dead in real estate and things pick up in the fall…but is it really true?

….not so much, as our research has proven! (See monthly unit sales chart)

We hear this all the time from sellers, home owners and even other Realtors who seem to think that there are two “prime” or “peak” seasons in Ottawa real estate: spring and fall.  We hear statements like “everyone is on vacation” or “gone to the cottage” etc. thus explaining why real estate “dies” off in the summer and somehow is magically reborn and “things pick up after Labour Day”.

While it is true that summer sales do dip compared to the super peak season in May and June, July and August are the next best sales months the market will see until the following April, so serious buyers and sellers should not put their real estate plans “on hold” until the fall’s purported “2nd season” in the Fall.

Summer unit sales: July and August 4th and 5th strongest months

Sales in July and August are some 20-25% less than those in April-May and June but are still usually well ahead of sales in September and October which are a further 10-20% lower, followed by November when sales start to go in to the winter hibernation phase of Ottawa real estate.

New Listings and total listing inventory are also typically higher in the summer months than in the fall and winter, so it is a great time to be buying also.

How did this myth get started?
…hard to say but possibilities include:
After a busy spring season, some Realtors may be looking for a bit of a break themselves, which is hard to do when one has to be “on call” and readily available close by to support a new listing or buyer client. So if a buyer or seller plans can be deferred a couple of weeks, the Realtor can sneak in some summer vacation time for themselves.

Also, some Realtors may feel that for whatever reason, a certain property may get more attention in the fall or they may simply be trying to save some business activity to anchor the balance of their business year, especially with the typically slow winter season approaching from mid-November on.

There may be some valid reasons in terms of market circumstances, competitive listing inventory, seller vacations, property preparation for listing and so forth but let us be perfectly clear: don’t delay listing your property in July or August because you think business is stronger later!

Gord McCormick, Broker of Record
Dawn Davey, Broker
Oasis Realty Brokerage
613-435-4692 or 613-371-9691
oasisrealty@rogers.com

One of Ottawa’s best liked/followed real estate pages: https://www.facebook.com/oasisrealtyottawa/

Our real estate guide/blog: http://blog.oasisrealtyottawa.com/

2 experienced brokers working for you…11th year in business!