buyer tips for tough 2019 seller’s market

With listing inventory at millennium lows (-25.3% vs 2017 and -42.5% below 2016 levels at year end 2018) it is more important than ever for Ottawa buyers to have a strong team in place and a plan for success in 2019.

Have an updated plan:
Make sure you have a plan and update it, if one is up to date with everyone on your buying team then a purchase will definitely go more smoothly with fewer surprises:
Here are just a few things to do to be ready for that dream home:
If you have been looking for a home for a while, it is also a good idea to revisit and update your plan.
-check with your mortgage broker to make sure there is no change in your prequalification level or mortgage rate and see if you can get a rate hold guarantee
-review with your mortgage broker whether a fixed or variable rate is best for you.  70% of mortgages are still fixed rate but variable has been most advantageous over the long run.  Understand the pros and cons for each and plan based on what works for your circumstances.
-speak with your lawyers office and make sure you are up to date on all fees, and other disbursements the lawyer will make on your behalf, including land transfer tax (LTT), title insurance, mortgage insurance (if less than 20% down)
-check with your insurance broker, so you know what information they will require to provide appropriate insurance coverage and if there are any potential issues with a  property under consideration.

Price range:
If you have not been successful in finding an appropriate property, do you need to bump your price search range up to a higher level?

Focus on specific housing type:
Have you evaluated all options in potential housing and narrowed down your criteria to those that suit best?  There is an old saying that home buying is as much a matter of elimination as it is of selection and this is quite true.  The more one can focus on the type of house they are looking for within their financial plan, the better

Geography:
-do you need to add to or subtract from your geographical area of search?  Again, the more focused one is on a particular area or region, the easier it is to stay on top of new listings.

Are partners on the same page?
Being one the same page with a spouse or partner is critical in a successful home purchase.  If there are differences of opinion, try to get these ironed out before you start seeing homes and making offers.  If priorities are too far apart, getting a successful deal done will be painful.

Do you have your buying team in place and up to date?
Do you have a mortgage broker? Realtor? Lawyer? Inspectors? Does your financial planner need to be in the loop?  Are they all available right now if your dream home gets listed tomorrow?

How are you funding the down payment and deposit?
First time buyers will want to review this, especially if these funds are coming from an RSP or TFSA.  Typical deposit on a deal is about 1% of purchase, so $3,000-$5,000 paid at time of sales agreement for the average priced property.  Buyers may wish to offer more though, if they feel it adds strength to your offer, particularly in potential multiple offer situations.

Builder new home deposits are much higher, generally in the 10% of purchase price range, although buyers will have about 60 days to provide these funds in installment payments.

New construction vs resale:
If you are considering a new construction purchase, please make sure your Realtor knows, as they can help immensely in co-ordinating visits and providing advice on lot selection, features, upgrades and builder recommendations.  Realtors are involved in 85-90% of resale transactions but probably only 25%-30% (or less) of new construction transactions, so many of these buyers are purchasing without anyone directly representing them.  (…kind of like going to court without a lawyer…)

Multiple offers and bully offers?
Have a strategy for dealing with multiple offers or “bully” offers.

With our low listing inventory environment, these types of situations occur more frequently, especially for those shopping in the $250-$500K range.  Understanding how these work and determining if and how you will participate, is good to discuss in advance.

Be an ‘active” buyer:
-keep an eye out for new For Sale signs in your area of interest.  Especially look for those that say “coming soon…” or “Exclusive Listing” as these will not immediately appear on MLS® and may even be sold prior to an MLS® public listing being posted. Give your realtor the name of the listing agent and the address of the property and they can follow up for you and get you in to see the property.
Ditto, watch for online postings in facebook groups or kijiji or other online real estate sites that may show listings that have not yet made it to MLS®.  Some buyers and agents are advertising future availability, too and while these can be tricky and not that often successful, they may well could be an opportunity.

Be aggressive and decisive: don’t fret overpaying
Don’t wait for an open house, try to get in to see a newly listed property as soon as possible.
If you have a good market knowledge and see a property that ticks all your boxes, be ready to make a decision and go for it.  Many buyers can be a little nervous about overpaying but remember that if our upward market continues, this property is likely to be worth $20-$30K more next year and you want to get in to the market as soon as possible.  Your Realtor will help guide you in appropriate pricing strategy.

2019 is expected to be another challenging year for buyers, so have a good plan and work closely with your Realtor for success this year.  If you do not already have a Realtor, we strongly suggest you engage one now to improve your chances in finding and securing your dream property this year.

We would be happy to discuss if our approach and philosophy is appropriate for you, if you would like to discuss, please give us a call at 613-435-4692 or check us out at oasisrealtyottawa.com or our facebook or twitter platforms @oasisrealtyOTT or https://www.facebook.com/oasisrealtyottawa/

Gord McCormick, Broker of Record
Dawn Davey, Broker Oasis Realty Brokerage
oasisrealtyottawa.com

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

 

Why this may be the best time of year to buy new construction

Seasonal sales dip:
Ottawa real estate typically takes a pretty good dip from mid-November until at least mid-February and unit sales drop off 40 or 50% from the monthly average for the rest of the year.  It may however be the best time for many to buy a new construction home from a builder.

So why buy now?
Most builder deliveries are currently being booked for summer or early Fall 2017. For those with an existing home to sell, this means one would end up selling the existing property in peak season in April, May or June to facilitate a closing in the summer time.
This is a much better situation than those with January, February or March closings-as these buyers are faced with selling an existing property in the latter part of the year when buyers are fewer and many buyers prefer not to close in the winter months.

Prep to sell time improves:
One of the advantages of buying a new home is that there is lead time to prep and existing property and make sure it is in optimal condition for listing. Given the lead time between now and spring, there is some good “runway” for homeowners to do painting, organizing or minor repairs in advance of listing the property for sale.
It also gives more planning time with one’s Realtor, mortgage broker, stager and trades or service people.

First time buyer advantages:
First time buyers can also take advantage of having some lead time to continue saving for their purchase and also take advantage of RRSP contributions for both 2016 and 2017 tax years, before withdrawing those funds to use for the house purchase. Kind of like double dipping and is perfectly OK with the tax man, as long as the funds are deposited for at least 90 days.

758 Bunchberry Way , Ottawa

Findlay Creek quicker occupancy new construction MLS® 1035381
Findlay Creek quicker occupancy new construction MLS® 1035381 $608,562

*We have deals for new construction buyers (and sellers) !
First time buyers get a $1,000-$2,000 buyer bonus if they buy a new construction home with us.
Those with an existing home to sell can take advantage our super low full service MLS® listing fee of only 3.0% if they buy a new construction home with us before the end of February 2017 and quote this article. (*not intended to solicit those with existing representation agreements, some conditions apply)

We list a lot of homes for a major Ottawa builder and help them meet their sales objectives, so this knowledge and experience can benefit those shopping new construction.  It is one of our specialties!  So give us a call before you head to a builder sales centre and we can be your new home consultant!

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