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 

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

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!

 

April 2018 poised to break monthly sales records?

3rd largest sales month:
April is typically the 3rd largest unit sales month of the year and this year looks to be no exception.  Despite an ever lingering winter, sales have been strong through the first 3 weeks of the year.
Our totally unofficial numbers suggest a sales increase that will be at least in the 10-15% range for the month which would take us over the 2,000 mark for combined residential and condo monthly sales.  (last year there were 1,795 properties sold in April and the 5 year average was 1,613.)

New listings:
April is typically the 2nd largest month for new listing activity and listing activity looks pretty strong this year also and should be equal to or greater than the number of new listings in April 2017.  Given our very tight listing inventory situation, this would be some good news for buyers, as new listings have trended down for much of the last 18 months, but with sales trending strongly up, sellers’ market conditions are expected to continue.

Total listing inventory:
Our current overall listing inventory is not even enough to cover sales for two months, when normally a balanced market would be 4 or 5 months of listing inventory, so no respite foreseen from our current tight inventory with the number 1 (May)  and #2 (June) sales months next up.

Sales to new listings this month:
Again unofficially, our numbers show that the ratio of sales to new listings (and key performance indicator in real estate) is 70.4% during the month of April thus far.  For reference: a balanced market is said to exist when sales: new listings is between 40-60% and a buyer’s market when the ratio drops below 40%.

Sales cancellations continue on the higher side:
Typically, about 5-6% of conditional sales fall through and do not “ firm” up and result in a completed sale.  Our current run rate on this stat is more like 10-12% or double the normal.  Financing and inspection issues are the principle cause but good old fashioned buyer’s remorse may also be a factor in a hot market where buyers have little time to consider whether to purchase or not.

What to expect?
Expect to see a lot of exclusive and “coming soon” listings, offer dates, “ bully”  offers and multiple offers. The next few weeks are also the main time for out of town buyers (mostly military, RCMP and other government employees relocating) to be in the market, so activity will be fast and furious.

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

Moving to Ottawa in 2018? …here’s how to get ready:

 

It could be “slim pickings” for buyers in 2018 Ottawa real estate:

The Ottawa real estate market has been improving steadily since spring 2016 and 2017 was probably the best year in a decade, with overall unit sales up 10.2% and prices up 6.8% for residential properties and 3.4% for condos.

The good news is Ottawa is still very affordable compared to many places across the country and one of its most stable markets.

Average selling prices 2017:
Detached single home: $ 451,306   +7.6%
Row townhome:            $ 343,958    +4.9%
Semi-detached home:   $ 420,042    +5.7%

Apartment condo:         $ 298,537    + 3.7%
2 story town/condo:     $ 230,141    + 2.9%

Tougher news for buyers will be scarcity of listing availability in 2018 and definite upward pressure on prices, as listings have fallen to very low levels all across the city.

New listings were down 8.7% over the course of 2017 and that trend is worsening already in 2018 with new residential listings in January down 30% compared to the 5 year average. Overall listing levels are down 21.7% for residential listings at year end and 27% for condos.

With increasing numbers of sales and lower numbers of new listings, the supply-demand balance will be swinging even more in favour of sellers, so buyers will have to be very aggressive and prepared for a tough seller’s market.

Here’s some things to do to be ready to buy:
1) have your team in place, so you are 100% ready to buy: Realtor, mortgage broker, insurance broker, inspectors, lawyer.  Make sure you and your spouse/partner are on the same page concerning priority level of housing features.

2) know your financial plan and pre-qualification levels before even looking at a property. Know whether you will need a property appraisal and if the new 2% qualification threshold applies to your file. Understand home operating and utility costs, as this may vary from your existing geographic location.  For example:  property taxes may be higher or lower and ditto for heating, electrical or water costs.  Ottawa has much higher property taxes than Toronto per $ of assessment, for example and we also have rental hot water heaters which those from out of Ontario may not know.

3) have a realistic target of home by type, area, features and price and narrow that as quickly as possible. No sense chasing rainbows in a tough market for buyers.  Wishing you can get the $525K house for $475K will not make it so.

4) have a plan for multiple offers. Well priced new listings will be attracting multiple offers, so discuss your position in advance with your Realtor.

5) consider builder quick occupancy inventory, as many builders are building some homes on spec to be available for peak delivery months ie summer.

6) search online for exclusive listings and other non MLS® posted properties. Many are “trying” listings out on 3rd party sites and social media before posting on MLS®, so you may find listings on social media groups or via search engine alerts.

7) drive through your geographic areas regularly (if possible) to look for new lawn signs popping up. New ones may have toppers that say:  “coming soon” or “exclusive” listing.  These may be good choices if you can find them before other buyers.  The fragmentation of listings from the central MLS® system makes it difficult for buyer agents to stay on top of all new listings appearing in your areas of interest and one cannot be satisfied that electronic means will be sufficient in getting you in to see the hot new listings, before other buyers.

If we can assist with your Ottawa purchase plans this year or answer any questions, please do not hesitate to call 613-435-4692

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

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

 

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!

Are Realtors sabotaging MLS® with “grey market” listings?

We have experienced a relatively strong market over the last 18 months and listing scarcity has become an issue, as many areas have only a month or two of listing inventory. Listings in 2017 were down approximately 25% from the previous year (35% over 2 years) and with healthy sales, this made things difficult for buyers and their agents, especially those with an existing property to sell.

“Grey” market listings abound: (non MLS®)
In the face of dwindling listings, many Realtors (and their sellers) are getting creative about how they plan to market the listing to the best advantage of seller and Realtor. This includes the use of “exclusive” listings, “pocket” listings and future sale listings.  In most of these types of listings the listing agent does not publicize the listing widely/openly on the MLS® system.  (or at least initially) Instead these Realtors market via social media and a variety of 3rd party online sites.   Have you seen those “Coming Soon” or “Exclusive Listing”signs on front yards in your neighbourhood?  This is most likely an indication of a grey market listing.

How is this advantageous? (and to whom?)
Realtors do this for a number of reasons in our opinion:
-Realtors leverage the listing to potentially generate other buyer or seller prospects
-Realtors have a chance of “double ending” the listing, if they are able to find a buyer without having to pay another Realtor.
-The listing agent in many cases will have used these marketing concepts, combined with a lower listing commission to help close the listing in the first place.
-Realtors may be able to avoid the cost and time involved in some steps of the listing process ie professional photography, staging and also get to a sale sooner.
-are all the above consistent with the Realtor pledge of “first duty to client” or is the Realtor’s own marketing and prospecting activity subverting their principal duty to their seller client?
-some sellers may prefer not having a “wide open” MLS® listing where everybody and their brother are free to book random appointments to see their home.

So what’s the down side?
-these “ secret” listings become a bit of a holy grail and many Realtors really play this up:  Ie “ deal with me and I will get you the inside scoop on all the new listings, so you get to consider them BEFORE they hit MLS®.  Nobody, has access to all the “secret” listings, no matter how strong they may be in the neighbourhood.  The fairest and most democratic way is for all listings to make their way to MLS® where they can be considered by all buyers and their agents.
-all buyers do not get to consider the property and therefore demand is generated by only a small portion of the overall market.
-Buyers may be encouraged in to making a more impulsive offer, given the relative scarcity. This can result in buyer’s remorse and more conditional sales falling through which has been a factor in our market.
-these grey market listings that do not get to MLS®, also then further diminish the level of listing inventory available to MLS® buyers and therefore enhance the supply shortfall and help cause prices to rise.
-MLS® in recent years even includes most of the FSBO listings, so it is a fantastic central repository and marketplace. By withholding listings from MLS®, Realtors are not doing their seller, buyers or Realtor colleagues any favours.  Think for a moment if there was no MLS®?  Would you want Google or facebook to decide what listings you got to see?  MLS® is still ad free, too!
Do you want to have to scour hundreds of websites daily to find and stay on top of new listings in the marketplace?

Selling scarcity is nothing new:
Realtors, buyers and sellers will always adapt to scarcity and attempt to find ways to take advantage and this is no different, unfortunately, it can also lead to further scarcity in MLS® listings and possibly further demand spikes and price increases which is not good for buyers. It also removes some credibility from the MLS® system, if “ new”  listings are deemed to be old news by the time they are published on MLS®.

Seller choice:
A seller may find a deal without having to go through the full-fledged MLS® prep and marketing process and if they are happy with what they get, then so be it. Clearly, however, the best market value is to be obtained with the widest possible exposure to all buyers and their agents and that only happens with a listing on MLS®

Proponents will argue that they are only “getting the best deal” for their seller client but in many cases, we believe Realtor marketing and differentiation are the principal reason for use of these “grey marketing/non-MLS®” listings and that on balance this is not good for the overall market as it fractures and weakens the  central source of MLS® supply and exacerbates already existing supply problems.

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

12th year in business as a lower cost brokerage