Why are so many conditional sales falling through in 2017?

We have noticed a marked increase in the number of sales that have “fallen through” this year and not firmed up, once conditionally sold.

A conditional sale is reached after an Agreement of Purchase and Sale has been agreed to and signed by both parties and typically calls for a conditional sales period during which the buyer satisfies their purchasing conditions such as inspection and financing. This period is generally 5 business days for most properties but may run to 10 business days or more if additional inspections are required or in the case of condominiums where buyers must wait for the property manager to produce up to date condo status documentation.

What metrics do we have on the issue?
Unfortunately, this data is not recorded, reported or available in any meaningful way by our real estate board or realtor system. On our realtor dashboard, we have a section of the screen that keeps us informed about the number of new listings, price changes, conditional sales, sales, listing cancellations and the telling “back on market” category.  (here is what a section of our realtor dashboard looks like and our only source of data)

 

New Listing (111)
Back On Market (18)
Price Decrease (48)
Price Increase (1)
Conditional Sale (100)
Sold (87)
Expired (21)
Leased (0)
Cancelled (34)
Rented (13)
Suspended (2)

Back on market listings are those that are returning to active status and are mostly made up of those that were previously conditionally sold and are now being returned to “active” sales status.

Historically, this “back on market” category runs about 5% of new listings in our experience over the last several years. This year however, that number is more like 8-10% or more which means that the number of sales falling through is approaching double what it had previously been.

What causes sales to fall through and why so many more this year?
Good old fashioned “buyer’s remorse”
Buyer’s remorse can always be a factor in sales falling through. One partner may have liked the property more than the other or perhaps the buyers are just not prepared enough or on the same page regarding key buying criteria.  When this happens, unfortunately, many other parties are affected and their plans sidelined.

Because of our stronger market this year, many buyers may feel rushed to put in an offer before they are really ready, as they fear “missing out” on the property if they don’t.

Seeing a property once for a 30 or 40 minute visit may not be enough to get a full grasp or comfort level, so we may be seeing some impulsive buying decisions as a result. We recommend at least two visits to a property for buyers but this market doesn’t necessarily allow time for that level of investigation and research..

This can be especially so for buyers shopping high demand areas and price points who may have lost out on other properties or multiple offers by not being “quick enough”.

Inspections:

Inspections are the number 1 cause of sales falling through, because hidden or pricier to fix than expected items in a home, once understood, often lead to a renegotiation of a selling price which means there is a chance for the deal to fall apart.

In our market favouring sellers, many sellers may believe that there are lots more buyers out there waiting to buy their property, so may not be motivated to adjust the agreed selling price or fix issues pointed out in inspections. This is very true for properties which sell fairly quickly after listing or those sold in multiple offers.

Buyers in these circumstances may be feeling they are paying a premium price for a property and therefore can have an expectation that certain things should be addressed by a seller, so there is good potential for a disconnect between buyer and seller.

Financing:

As mortgage qualifications have tightened (and now with rising rates) more buyers may be getting surprised when the time comes to get the final mortgage approval during the conditional sales period. If there are hiccups in mortgage approval, some buyers may have to walk away from a house they really love.

So why is this is this a worry in a strong market?

Sales that fall through waste a lot of time, energy and money. A seller’s property is effectively “off the market” during the buyer conditional period and they may lose other qualified buyers who buy something else in the interim.

The seller’s plans are totally “on hold” and they cannot go forward until the sale firms up, so it can be a stressful waiting period for all involved. Realtors meanwhile, get no extra compensation for having helped buyer or seller through a transaction that does not complete.

Stigma on conditionally sold property:

Like it or not, there is a bit of a stigma attached to a property which has been conditionally sold but then falls through. So much so, that the real estate board allows the record of that conditional sale to be expunged from the sales history record, so as not to prejudice future buyers and their realtors.

Most buyers and Realtors will be suspicious and assume there was some inspection issue that surfaced.

Can you imagine how many fall through in private sales?

If a large number of sales are running in to problems with professional realtors advising both buyer and seller, can you imagine what the factor might be in the private sale arena?

Bottom line:

This is an offshoot of what is essentially a very healthy market with strong demand and enthusiastic buyers possibly jumping too soon for fear of losing out on a new listing. It also tests realtors who must do their utmost to make sure their buyers are fully prepared to complete conditional sales and negotiate the inevitable rocky patch that may occur between conditional sale and firm.

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 full service lower commission brokerage

 

 

Why fall and winter may be the best time of year to buy a new construction home

Our Ottawa real estate season tends to “bloom” in the spring with the greatest portion of resale transactions being done from March 1st to September 30th.  We do not have access to stats on new construction sales but we suspect they may follow a somewhat similar pattern.

A strong argument can be made that fall and winter may be the best time to purchase a new construction home from a builder. Here are some of the factors that work in favour of buyers purchasing during these somewhat quieter months of the year.

Less frantic buying environment:
When it is peak selling season (or a major launch) builder sales centres are packed and this puts extra pressure on buyers to “make a deal now” before someone else reserves that special lot. This can result in an almost timeshare or boiler room atmosphere which is not conducive to well-reasoned and researched decision making.  Buyers may be swayed more by a “fear of loss” motivation and thus make some hasty decisions.  This is fine if one has done one’s homework but it can also produce impulsive and immature buying decisions.

This environment and the genuine risk of losing out on an opportunity should be slightly less during quieter selling months.

Closing date a critical factor
Most new home deals being signed in the fall or early winter, will call for deliveries in the summer or early fall of the following year. Buyers will really want to consider all aspects of how this availability date impacts their individual situation, as there are both pros and cons and builders have limited ability to adjust scheduled deliveries to meet buyer criteria in a significant way.

Sale of existing home timeline is also critical
Those with an existing home to sell will want to be able to sell their property during the peak selling season, if at all possible. Understanding the timelines is important: ie. When should I list my house to meet the builder closing date?  How long will it take to sell?  How long will it take to close?  How much am I going to get from the sale of my home? A Realtor can help with all of these items and more concerning a new construction home purchase.

Design Centres may also be less busy and stressed
A critical stage of the home buying process is getting the design centre options researched, decided and planned. This timeline can be daunting for those who have not done it before and if a builder design centre is super busy or understaffed this can impact the process and the quality of the buyer decisions and ultimately, the finished product.   Since you only have a short window to get these choices right, it may be advantageous to do this phase in a quieter time of the business year for the builder.

First time buyers RHOSP “double dip”
First time buyers using their registered home ownership savings from their RRSP, may be able to make a savings deposit for the current fiscal year and qualify for that year’s tax deduction, as well as being able to utilize those funds for a purchase the following year. There are some rules around this, as funds must be present in the RRSP account for at least 90 days, before they can be withdrawn for home buying purchases.  Check with your mortgage professional to check on each specific situation.

Saving and planning time
Having several months to plan a move, allows time for additional saving, facilitates scheduling and also allows time for the purchase of new furniture, appliances or household items.

Don’t forget your Realtor!
Many new construction buyers forget to get their Realtor involved early in their new construction home buying cycle. A Realtor can be a really good “Coach” in helping plan and execute a new home purchase. Those buying new construction for the first time and those with an existing home to sell can very much benefit from Realtor experience and counsel. So…”don’t go to the builder sales centre without them”

New construction is one of our core areas of involvement and we are always happy to discuss and advise for those who are already not already working with another Realtor. We feel we have a bit of “inside track”, too-as we have been listing new construction homes for a major Ottawa builder for7 years now.  So give us a call at 613-435-4692, if you have some questions about how the process can work for you.

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

 

Is there a shortage of quality listings in Ottawa real estate?

 

It wasn’t too long ago that buyers had the upper hand in Ottawa, as we were saddled with excess listing inventory, flat sales and very low average price increases. It is looking like 2017 may be a whole new ball game though and we may be in the first stages of another seller’s market, which we have not had  for at least 5 or 6 years.

2016 was a transition year:
Between 2013-15 we experienced a period of excess listing inventory which combined with flat sales and price increases, created a market favouring buyers in general. (Although some high demand urban neighbourhoods may not have experienced this quite as much)

Starting about a year ago, we have seen unit sales improve consistently and though prices have remained fairly flat until recently, the number of new listings and overall listing inventory has decreased steadily…a good sign!

Overall listing inventory right now: (early March 2017)
Our current available listing inventory is well below (20%) some peak levels experienced in 2015 and new listings continue to lag behind by approximately 10%. Unit sales improved in 2016 and currently seem to be improving further.   As these trends continue, we end up with a supply/demand shift favouring sellers and more competition among buyers for fewer available listings.

“Chronic”, overpriced, stale or unique listings:
There is always a certain percentage of listings that fall in to this category and these lower demand listings are bypassed quickly by most buyers. Though these listings are shown in overall “available” listings totals, they are not in high demand, regardless of the improved overall environment.

One buyer example:
In doing a search for a current buyer, we found the following out of 31 listings that met their general specifications:
Chronic listings on the market for extended period: 9 listings or 29% (anything beyond 90 days we consider chronic which means either the property has a problem and/or is overpriced.)

Busy street or other location issue: 7 (this young family does not want a primary or secondary collector street)

Unique listing or one with an obvious issue: 5 (not looking for a fixer upper or one with has obvious resale challenges in future)

Total: 21/31 listings or 67.7% of available listings are not viable for this particular buyer couple, leaving only 10 properties to consider. So while there might seem to be a fair number of listings, there really is not for these customers.

As it turns out our buyers have submitted an offer on one of these properties but it looks like it will be their 2nd go round in a multiple offer situation, in as many weeks.

New listings sell fast:
The sell through of new listings at this time of year is 50% or more of new listings selling in less than 30 days, so buyers don’t have a lot of research and decision making time. Being prepared and having a well prioritized search can really help ensure one is ready to jump on new listings, as soon as they happen.

Bottom Line:
There is not a major shortage of overall listings (a la Toronto) but the demand for quality listings is improving and in many cases,  greater relative to supply, so buyers and their representatives need to be on top of their game or someone else will beat them to the hot new listings hitting the market.

Having a Realtor buyer representative fully engaged in one’s search is even more critical at this busiest time of the year.

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

www.oasisrealtyottawa.com   oasisrealty@rogers.com

One of the highest ranked and “liked” real estate pages:  https://www.facebook.com/oasisrealtyottawa/

“all the real estate news that’s fit to tweet”  https://twitter.com/OasisrealtyOTT

One of Ottawa’s best real estate blogs: http://blog.oasisrealtyottawa.com/

A full service, lower commission brokerage

Multiple offers puts additional stress on all parties

lots of twists and turns but ultimately only one across the finish line
lots of twists and turns but ultimately only one buyer gets the prize

Our Ottawa market is showing some strong signals that we may be seeing a return of seller’s market conditions, with stronger demand, rising prices and the increase in the number of multiple offer situations. This can be a stressful experience for all parties, particularly buyers who have not experienced the process.

We recently competed in a multiple offer (representing a buyer) on a detached single home in the south end which attracted 5 offers within 48 hours of being listed on MLS®. We were not successful with our offer and our buyers were very disappointed but we gave it our best shot in the fast paced process surrounding these types of situations.

Here are some of the key challenges in the process:

Compressed timelines:
The listing was just posted on MLS® later on Monday. We alerted our buyers to the new listing that evening and requested a showing directly via the listing agent that night.  We actually viewed the property twice on Tuesday, once with one of our buyers and the 2nd time with both buyers. (one of our buyers was actually able to take the day off  work to get in to see property as early as possible)

We submitted an offer on Tuesday evening that was slightly over asking price, as we expected that demand would be reasonably strong given the amount of showing activity on the listing. We were aware of the fact that another offer was pending and it had been submitted just prior to our own offer.

Our buyers revised their offer price upwards, based on the 2nd offer.

The listing salesperson had now established an offer presentation time for Wednesday later afternoon. By early-mid afternoon Wednesday, we were aware that there were now a total of 4 offers registered on the property.  (there ultimately ended up being 5 offers submitted)

Our buyers revised their offer price upwards a 2nd time to their absolute maximum and we submitted revised documentation to the listing sales person.

Buyer roller coaster:
Buyers are caught on a roller coaster of emotions: from the elation of seeing a property they both really want in their price range and area, to happily submitting an offer which is over the listing price and hoping there are not too many offers, to frustration from waiting around without any control of the situation, to stressing about how much one should offer and avoiding temptation to overpay or remove some important condition from the offer which may help “win” the property bid but prove costly later, to the anticipation of waiting and hoping your offer will make it to the top of the pile, to the disappointment that comes from finding out that it was a good offer but not quite good enough.

Sellers are happier but not stress free:
Sellers are definitely the beneficiaries of the best possible market value in these scenarios but they are certainly not stress free. This young family was pretty much shut out of their home for the better part of 2 days while buyers and their agents toured the property.

These sellers also have a home they are buying, so until their own property sells and firms up, they are not 100% sure of securing their own dream home. Even if it looks pretty good right now, it is still not over until the final paperwork is done with any buyer conditions satisfied.

Buyer representatives have a lot of conflicting pressures:
All buyer representatives want the right property for their buyers and at the right price. While one-on-one negotiations with a listing agent and seller have one set of challenges and variables, multiple offer situations are completely different and the buyer representative has far less control or influence over the outcome.

Price, closing date and conditions are the critical factors and we want our buyers to win but not pay too much or sacrifice important conditions. i.e. like foregoing a home inspection or not including a financing condition.

Add to this the uncertainty of knowing what the “winning” price might be and how to properly advise buyers is a challenging task.

No “cake-walk” for the listing salesperson, either:
The listing sales person has their own set of pressures in professionally representing the seller, co-ordinating access for showings, communicating on a timely basis with all interested parties and running a well-organized and credible multi offer submission, advising sellers on bid selection, negotiations and debriefing all who have submitted offers. This is a pressure packed process for them as well.  In this case, we had a very professional listing salesperson who very ably managed all of these from our vantage point.

Everyone’s life is “on hold”:
All parties to these situations are pretty much “on call” as the dynamics of these situations unfold and the process lurches towards a conclusion. Don’t miss out on a phone call, text or email-as you may lose out on timely information or ability to act upon that information. When the ultimate prize is so important, everything is circumspect and under a microscope.  Did we do everything we could?  Was there more information we should have had?  Should we have been more aggressive?  How much risk should we take?

This is definitely starting to look like a “you snooze…you lose” kind of market:
What about the buyer representative who missed the listing or the buyer who wasn’t quick enough to even get in to see it? What about the buyer representative who wasn’t available to get their buyers in to see the property?  What about the buyer who said: “let’s wait for an Open House”?

Bottom Line:
It is always disappointing to “lose” but our buyers did everything they possibly could and are moving on to the next one. Our job is to find them an even better one than the one that got away and it’ll happen for them!

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

One of the highest ranked and “liked” real estate pages:  https://www.facebook.com/oasisrealtyottawa/

“all the real estate news that’s fit to tweet”  https://twitter.com/OasisrealtyOTT

One of Ottawa’s best real estate blogs: http://blog.oasisrealtyottawa.com/

A full service, boutique brokerage with lower listing fees

Will it be a “balanced” market or a “seller’s” market in 2017?

OLYMPUS DIGITAL CAMERA
Lots of these in Ottawa January 2017
Listing inventory is trending down which may indicate a market favouring sellers
Listing inventory is trending down which may indicate a market favouring sellers

Though January is typically the lowest sales month of the year, (along with December) there are some very positive trends in the current market.

Strong residential sales in January 2017:
Unit sales have been trending up steadily since April 2016 and January continued that trend. Unit residential sales were up a solid 16.6% for the month and overall residential and condo sales were 8.6% higher than the 5 year average for January.  Condo unit sales were flat in January but did sell at a higher price than a year earlier.

Listing inventory trending down:
This is a key category and indicator of overall market activity. We experienced several years (2013-2015) of increasing inventory levels which led to a supply/demand imbalance favouring buyers.  Starting in spring 2016 this indicator started moving in the opposite direction and moved in to a balanced position during 2016. See chart:
https://public.chartblocks.com/c/5895b4b79973d295631e48dc via @chartblocks

January 2015 listing inventory is 15.2% lower for residential listings and 10.7% lower for the number of condo listings, compared to a year ago.
New listings in January were 11% lower than a year ago and condo listings for the month 4.6% lower.

Balanced market or seller’s market?
If we continue the combination of higher unit sales with lower numbers of new listings and total listing inventory, then we may see more pressure on buyers and higher prices and move more towards a seller’s market.  This is what can occur when demand outstrips supply and can be characterized by shorter selling times, higher prices and the existence of more multiple offers on listings.  We have not had sellers market conditions (except perhaps at a neighbourhood level) for 4 or 5 years now, here in Ottawa.

We have also had reports of strong sales from builders on new construction and inventory homes.

Prices:
Overall average prices are not leaping forward, as has been the case for the last number of years but the trend suggests this could change if supply limitations drive prices up.

Bottom Line:
This is a very important time of year for both buyers and sellers, as market activity grows on a daily and weekly basis from now through peak season in May and June, so it is a good idea to get one’s plans in place and existing properties ready to sell.

These overall numbers may not apply to all neighbourhoods, so if you would like to get an analysis done for your own property or area, feel free to give us a call or call your Realtor. 613-435-4692

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

One of the highest ranked and “liked” real estate pages on facebook:  https://www.facebook.com/oasisrealtyottawa/

Follow us on Twitter for “all the real estate news that’s fit to post”  https://twitter.com/OasisrealtyOTT

One of Ottawa’s best real estate blogs: http://blog.oasisrealtyottawa.com/

A full service, boutique brokerage with lower listing fees

Moving to Ottawa? some things to know about real estate

ottawa-tulips-and-peace-tower

Average house prices mostly a bargain:
Those moving from the GTA or Vancouver will view overall Ottawa average prices (average residential selling price approx. $400,000) as a real bargain and that would be correct. Averages are just averages though and price ranges vary considerably across the city and the Ottawa real estate board reporting area. Urban residential price averages in 2016 were in the $600-$750K ranges and topped $1.2 million in Rockcliffe Village.

Geography:
Ottawa is quite spread out east to west along the Ottawa river some 45 km (Carp Rd to Trim) and about half that distance north-south. Dominate features include the Ottawa and Rideau River systems, the Rideau Canal and the “Greenbelt”, all of which have factored in Ottawa’s development. North of the Ottawa river is western Quebec, the Gatineau hills and the city of Gatineau. Realtors must be separately licenced/registered to practice in Quebec, so very few, if any, can provide services on both sides of the Ottawa River. Average prices are about $100,000 less on the Quebec side, so buyers should determine which province is of most interest from the beginning of their search.

Big difference between urban and suburban living:
Much of Ottawa’s residential growth over the last couple of decades has been at the fringes in the east (Orleans), west (Kanata and Stittsville) and south. (southwest in Barrhaven and southeast in Findlay Creek and Riverside South) Home prices have increased most in urban areas and this has fostered many condo developments and infill housing development in the highest urban demand areas.  We currently have several of the largest mixed residential urban neighbourhood projects in Ottawa history underway or planned.  These include: Wateridge, LeBreton, Greystone and Zibi plus numerous large (and tall!) condo projects.

High demand urban areas:
Westboro/Wellington West and Carling/Woodroffe area , Hintonburg/Mechanicsville, Civic Hospital, Glebe, Old Ottawa South, Ottawa East, Manor Park, New Edinburgh, Sandy Hill

Students, Students, everywhere!
Ottawa is a big education centre with over 80,000 full time post-secondary students (140,000+ counting part time) at University of Ottawa, Carleton, Algonquin, Cite Collegiale and St. Paul’s. This demographic has an impact on housing, entertainment, dining and the work force.

Transit oriented:
Ottawa has always been a transit oriented city with commuter ridership % among the highest in North America. The OC Transpo system has been built on a mix of dedicated transitways (bus only roads) and express bus lanes which connect urban and suburban commuters with the downtown core.

2018 brings Phase 1 of Ottawa’s LRT (Confederation line) which will connect 13 stations over 12.5 KM, including a 2.5KM tunnel underneath the downtown core. Phase 2 will expand the scope both east, west and south (Trillium Line) by 2023.

This has created a “transit oriented development” focus for city planners and a great deal of activity is planned around LRT transit hubs.

Greenbelt:
When one drives through Ottawa from the downtown towards the suburbs, the city seems to stop and then restart after large swathes of open space. This was created way back in the day when the original plan was to keep Ottawa within the borders of this “Greenbelt”.  Over time, persuasive developers found a way to build new communities beyond the Greenbelt and this is where much growth has taken place since the 1970’s.

Schools:
We have a gamut of schools at the elementary and high school level encompassing English, French and immersion programs from public, Catholic and French school boards. The widespread geography of Ottawa has become a bit of a problem in this regard, as demographics have changed school enrollment patterns and many schools are on the “to be closed” list due to lack of students while others are overloaded and still others have no local services at all.  Researching schools for both current and future requirements can be a key factor for many parents, so it is a good idea to review this early in your Ottawa home search to determine your geographic focus.

Real estate is local:
Every market is different, so be careful not to assume that things in Ottawa real estate will be the same as the market you are moving from. Housing types/styles, trends and key features and highest demand items in one local market may vary widely from those in another.

If you are relocating and looking for an experienced brokerage team to consult on your home or condo buying plans, we are more than happy to help! Give us a call at 613-435-4692 or check us out online at our co-ordinates below:

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

One of the highest ranked and “liked” real estate pages on facebook:
http://www.facebook.com/pages/Oasis-Realty-Brokerage-Ottawa/209265863918

Follow us on Twitter for “all the real estate news that’s fit to post”  https://twitter.com/OasisrealtyOTT

One of Ottawa’s best real estate blogs: http://blog.oasisrealtyottawa.com/

When is the best time to list my Ottawa property?

Here is a chart we have compiled from monthly Ottawa real estate board published unit sales results (residential and condo property unit sales/month) for the last 5 years. This demonstrates a pretty consistent annual pattern in the Ottawa market.

Spring is key:
April through June are typically our peak sales months and this will come as no surprise for most. Government employees are relocating and families looking for a summer closing and move before the next school year, give this season a major boost.  Each year Ottawa real estate handles some 800-1000 moves in to town by government personnel with an equal number moving away from Ottawa.  The highest % of these are military and RCMP relocations.

Summer surprisingly strong:
There is a significant myth that “real estate is dead in summer” and this table shows this is totally incorrect! July and August are typically the 4th and 5th busiest sales months of the year, so those who “wait until the market picks up in the Fall” are really doing themselves a disservice.

March, September and October:
These are “shoulder” or transition sales months. March activity is increasing for the busy spring and September and October are marked by erosion of peak demand heading in to the slower fall and winter season.

November-February:
Ottawa sales take a breather, as fewer people want to move during the winter time and seasonal vacations, holiday activity and weather all play a role in making house buying not quite as active. A lot of planning and preparation for the peak season can be done during January and February, so still an active period-just not as many sales.

Personal Objectives most important:
What dictates selling or buying times is often based on a specific property being available and this then drives the sale of an existing home. Those with homes to sell will want to consider their buying and closing timelines in a way that optimizes selling an existing property if at all possible. For example, buying a new home that closes in February means one is selling an existing property in late fall in order to co-ordinate the new home purchase.  This however, is not the best-selling market for the existing property-so the seller will have to take this in to account when doing their pricing and listing plans.

When will my property show best?
Most properties will not show their best until mid-May when leaves are on the trees and everything has “greened up”, so some may wish to time their listing (and photo) plans accordingly. For example, a house with a pool will look much more inviting when the pool is open and warmer temperatures occur.

Is my property ready to list?
It can take longer than one thinks to get a property in HGTV condition for listing and selling, so this must be planned in to the listing cycle.

Competition also a factor:
The quality and number of head to head competitors to the property being sold (both new and resale) also factors in to the timing decision.

How long will it take my property to sell?
Sellers will have to factor in both selling and closing time in to the planning timeline and these can vary widely by location, price point and property type.

Bottom line:
There are a lot of variables to be considering in the listing, marketing and selling process and your Realtor is best equipped to help facilitate the process and optimize results based on all these factors. If one is planning a purchase or sale this year, January and February are the ideal months to sit down and have a planning discussion with your Realtor and any other key 3rd parties ie mortgage broker, stager, trades people.

If you are not already working with another Realtor, we are happy to provide a no cost, no obligation market evaluation of your property to help you with your real estate objectives.

Gord McCormick, Broker of Record
Dawn Davey, Broker
Oasis Realty Brokerage
613-435-4692 or mobile 613-371-9691
oasisrealty@rogers.com
oasisrealtyottawa.com
One of the highest ranked and “liked” real estate pages on facebook:
http://www.facebook.com/pages/Oasis-Realty-Brokerage-Ottawa/209265863918

Follow us on Twitter for “all the real estate news that’s fit to post”  https://twitter.com/OasisrealtyOTT

One of Ottawa’s best real estate blogs: http://blog.oasisrealtyottawa.com/

Is buying an Ottawa property for a visiting student a good idea?

Over the years we have assisted many out of town buyers looking to purchase homes or condos to provide housing for their children who are coming to Ottawa to attend one of our large and growing post-secondary colleges or universities.

With limited on campus residences and cost factors in mind, many parents have bought apartments, townhomes or homes to accommodate student needs and also as an investment or cost offset.

Many have successfully bought and then sold several years later and either made some money or minimized the cost of accommodating the student during their years here in Ottawa.

Once a “slam dunk”….
For most of the new millennium, this practice has been pretty positive, particularly for those who have rented out rooms to other students as well as their own children and those parents who have more than one child who will be living in Ottawa during the same period.

Now that we are in a period where prices have not been advancing at 5%-7+ annually, as they did during the 2000-2011 timeframe, this practice is no longer the “slam dunk” it was for many parents. We recently completed a sale for an out of town family who bought in 2010 in a strong seller’s market and were able to sell in 2015 but only appreciated a very small increase in the price of the property from what they had paid 5 years earlier. While this was disappointing, these owners had kept the property well rented out to other students during the 5 years of ownership and therefore, still came out pretty well financially, despite the limited uptick in the value of the property.

Do you want your university age child to bear the burden of ownership and property management?
Some out of town parents may not wish to burden their children with the responsibilities of managing and maintaining the property; collecting rent, divvying up utility costs, being a disciplinarian and so forth, in addition to their school work and perhaps part time job. Other parents may deem this a good “learning experience” and see it is as an opportunity.

Many factors to consider:
Those considering the purchase of such a property here in Ottawa should carefully research all financial factors in buying and selling in a remote city and the best source of information is a local Realtor who can assist with competitive issues, neighbourhood choice, property choice, local rules, buying and selling costs and so forth. This practice is certainly no longer a “slam dunk” in our  market and should not be carefully researched with local professionals.

For more information or to discuss particular circumstances, feel free to 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

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