Know condo rules before listing

We recently ran in to an issue with a condo and a fairly cranky Property Manager.(at least initially) We had agreed with the seller that based on the location of the townhouse condo, it made good marketing sense to have 2 sets of “For Sale” signs; one right in front of the unit itself and the other at the entrance off the main road.

Immediate removal and repair of “damage”!
Little did we know that the condo had restrictions on where signage could be placed and both of our signs were inappropriate and required immediate removal or repositioning.
The condo limits the location of real estate signage to one small grassy area at the far end of the development from our listed property, so with the clients help we removed the incorrect signage and reinstalled the other one appropriately.

Why do condos have such rules?
The principal reason is to facilitate grass cutting, snow removal and other maintenance and perhaps cluttering up the common areas is an issue, too. (we would probably ban signage altogether but that is a topic for another day)

Mea culpa:
The Property Manager was 100% correct in saying that we either should have known or should have checked prior to installing our signs, so this is a good tip for both sellers and realtors when listing condos. Though not justification, in our defence:  the seller was a new owner who had just purchased the property for renovation and resale purposes and we had not listed a property in this complex for some time, if ever.

Also, we had seen at least one other sign in place in front of another unit listed when our client originally purchased the property, so perhaps that influenced our thinking.

Other condo restrictions:
Lockboxes:
Placement and duration of lockboxes at condo apartment complexes is an ongoing issue for property managers and realtors alike. Take a look around at the proliferation of lockboxes on railings near condo entrances in larger complexes and just think: what could go wrong?

Parking restrictions:
there may be parking limitations or restrictions that make it difficult for realtor showings and open houses

Security matters:
security may also play a role in limiting access, particularly for open houses, as some condos require visitors to be escorted, once inside the building.

Open Houses and signage:
there may be specific regulations aimed at Open Houses and open house signage which owners and realtors should know and support.

In building marketing or posting of flyers or promotional material:
I have seen marketing information posted on condo bulletin boards and also seen flyers dropped outside unit doors. Most condos will have some kind of guidelines for such practices.

Every condo is different:
Also remember that every condo is different and may have varying rules and restrictions, depending on ownership and Board wishes.

A word about property and building managers:
Property managers and in-building managers are very important resources for condo owners and realtors alike. They can be invaluable assets and sources of information and provide critical services, so it is always best to have a good relationship with them.  So do everyone a favour and make sure to check out all condo rules, policies and procedures to facilitate the listing, marketing and sale of your condo property.

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

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

https://twitter.com/OasisrealtyOTT

11th year in business as a full service lower commission brokerage

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

 

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

 

 

 

 

Kanata starved for resale listing inventory in 2017

 

Ottawa listing inventory down 25% vs last year, 40% vs 2015

The Ottawa resale estate market is getting more than light on inventory after a year and a half of increasing unit sales coupled with a 10%+ decrease in the number of new listings, the overall market is down 25% on the number of available listings compared to a year ago and almost 40% from two years ago.

Even worse in Kanata!
As we approach the end of August, Kanata has barely one month’s worth of listing inventory to feed residential sales and about 3 months of condo sales. Normally, 4-6 months listing inventory is deemed to be a “balanced market”

How is this translating in to sales results?
Sales results have been surprisingly mixed with residential unit sales up 4.1% through July 2017 and condo unit sales up 22.6%. Somewhat surprisingly, residential sales are up an average of only 2.4% to $410,345 and condo sales basically flat (no increase) at $221,839.

Builders winning big this year:
While statistics are not readily available, it seems that new construction is having a runaway success in 2017. The last number we saw reported had builder starts up 44% this year and at least one builder has reported a 100% increase in sales.  Builders are also running out of inventory homes and we have seen numerous price increases and pull back on buyer incentives.

Neighbourhood synopsis:
Beaverbrook:
 (MLS® zone 9001)
Residential unit sales up 26.5 % through July with average selling price up 8.1% to $448,469.  The average house is selling in 1-2 weeks on the market, at slightly above listing prices.

Katimavik: (MLS® zone 9002)
Residential unit sales up 30.6% YTD with the average price up just 2% to $374,869.

Acute residential listing inventory shortage with less than a month of listing inventory currently on hand.
Typical sale is happening in 2-3 weeks on the market and selling at just below listing price.

Glencairn: (MLS® 9003)
Unit sales are up 18.3% with the average selling price up 6.2% to $312,878. Also acute listing inventory situation with less than one month’s anticipated sales available. Typical sale occurs in 2-3 weeks on the market.

Bridlewood: (MLS® 9004)
Residential unit sales up 4.9% and average selling price up 6.7% to $416,272, also experiencing acute listing inventory shortage. Typical sale occurs in 1-2 weeks on the market.

Kanata Lakes: (MLS® 9007)
Residential unit sales down 11.9% YTD with average selling price also slightly down to $487,882 (-1.0%) Listing inventory very limited, less than one month’s expected sales. Typical sale in 1-2 weeks on market and selling almost right at average listing price, if not above.

Morgan’s Grant: (MLS® 9008)
Unit sales down 15.8% with average selling price up 10.8% to $406,293
Very acute listing inventory shortages, further enhanced by limited new midrange construction in the immediate area. Also only 1-2 weeks on market to get a conditional sale.

Emerald Meadows/Trailwest: (MLS® 9010)
Unit sales have surged 29.9% through July 2017 (residential sales) and the average selling price is up 8.1% to $367,751. Very acute listing inventory shortage in this area! Also 1-2 weeks to achieve a conditional sale.

Note: to put the above in to perspective, overall residential unit sales have increased by 9% through July 2017 and the average selling price is up 6.9% to $426,365. Residential listing inventory at the end of August shows slightly more than 4 months of listing inventory available across the Board, with the average selling time in the 30-40 day range.

Summary:
lots of multiple offers and sales above list price which makes things easier for most sellers but then the buying side is a whole lot tougher.  Strong market should continue unless there is a larger than expected backlog created by those who bought new construction for future delivery start to feed their existing homes in to the market in large numbers.

With prices going up…what is your home worth in this market? Given that the price of your next home is probably going up faster than your current one, it might be a good idea to review your plans.

If you are thinking of a housing move, we would be happy to analyze and discuss your specific situation, assuming you are not already working with another Realtor.

We have some of the lowest fully supported MLS® listing rates in the city, especially for those who are both buying and selling with us. Give us a call at 416-435-4692 or check us out online at the co-ordinates below.

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

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

Ottawa broker rant: real estate listing photos

is this really a key feature of this home?

 

 

 

 

 

 

We really do have a lot of excellent people in our profession and it is on behalf of all these quality sales people and brokers that we offer the following rant on what we feel are really poor real estate practices by some that should not reflect poorly upon us all!

The “snow in June” listing photos:
C’mon guys!…how tough is it to pop by your listing and get a photo update? How is one serving the seller by telegraphing that the listing has been on the market for quite a while…sheesh!

The 1 photo or no photo listing:
Do you think that this is going get people’s attention or that they will come back to check out the listing later?….keep dreamin’!

Too many listing photos:
6 photos of the front door or the bowl on the dining room table….who needs this? There are very few properties that cannot be effectively shown with 25-35 quality photos that show the layout with some perspective.  Some artsy photographers get carried away but few consumers (and trust me, way fewer buyer agents) want to click through 100+ photos!)

The focus on something you’re not buying photos:
How many listings do you see where the focus is the flower arrangement, the staging, the accent wall, the furniture, the artwork, the dining room table, the knick knacks, etc. Do I really need to see a close up of a vase in the middle of a table when I can’t see the room it’s in?

The (old) cellphone photo:
Some of the listing photos we see look like they were taken with an old flip phone. I guess it works for those going for the dark and fuzzy look…but it does nothing for the online viewer and even less for the seller.  This works especially well (not!) with text that brags about the “bright, airy space with lots of natural light”.

The companion photo set is the one from the agent with the latest and most expensive phone but you can tell they took all the listing photos in about 2 minutes (while walking through the property-hence the blur), since they had to rush off and get the Beamer detailed, pick up their commission cheque or get to their mani-pedi, workout or yoga.

The missing photo scam:
Do you really think that smart consumers won’t figure out the yard is ugly, there are hydro towers or an expressway in the backyard, the garage is falling down, the roof is doomed or that the Army Corps of Engineers are needed for kitchen and bathroom renos?

The super wide angle photo:
…don’t you just love the ones where the fridge or stove looks 6-8 feet wide?

The “why-is-this-in-the-photo?” photos:
Sometimes you just have to shake your head at the unusual things that catch your eye in listing photos. The pet, the diaper pail, the garbage can, the Realtor reflection in the shower door or mirror, the car in the driveway, dishes in the sink….anything that distracts the buyer from assessing the house for their needs is bad news.

The-too-many-too-few conundrum:
Condo listings specialize in this awful practice: you get 3 photos of the unit and 12 of the view, the building complex, lobby, gym, pool, or neighbourhood/surrounding area.  Sure you have a great park or bike path down the street but I want to see the darn place I may be buying!

The “why bother” photo set:
Tenant occupied properties lead the way but are not the only source of incredibly messy, disorganized properties that are clearly not ready for prime time. To be honest, some are so scary; you hope you never have a customer call who might want to see one of these suckers!  You are not doing yourself or the seller any favours by listing those in this condition…so why bother?

Shame on you for not investing in professional photos!
Our industry in Ottawa is serviced by many excellent and reasonably priced photographers who do fantastic photography and hosting services at very reasonable rates. If you are listing someone’s property and asking them to pay $15,000-$20,000 (or more) in commissions and won’t shell out $150 to get some decent photos done? …sorry, you shouldn’t be in the business! Oh, and by the way…shame on your brokerage and manager, too!

The “I-forgot-what-the-point-was” photo spread:
The objective of the exercise is to have the prospective buyer see enough of the key features of the property that they will want to come and see it in person and soon! The photos should highlight the critical features, be consistent with the text and be just enough to keep them wanting more.  Too often, these simple objectives seem to be forgotten.

More of the same (and worse!) in the video world:
All of the above issues and more are present in the now ever present video/Utube/social media marketing which is far from an exact science for the amateur productions too many turn out to be.

If we have forgotten any mind boggling real estate photo practices that you see regularly, please let us know!

 

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

A full service, lower commission brokerage

 

 

 

 

 

Ottawa real estate “stellar” midway through 2017

 

 

 

 

 

The Ottawa Real Estate Board (OREB) June results report another strong month of sales and price gains. Virtually every indicator is positive and suggests continuing growth in the months to come.

Average prices and unit sales continue upward trend:
Our best average price increases in many years with the average residential selling price up 7.2% to $427,721 and the average condo up 6% to $274,974 through the first half of 2017.

Unit sales:
Residential unit sales are up by 10.8% and condos by 26.2% on a year to date basis.

Listing inventory plummets:
 The one somewhat challenging statistic is the continuing decline in new listings (-10.3% year to date) and the overall listing inventory at the end of June which shows the number of residential listings down 27% from a year ago and condos down 22.2%.  (compared to historical highs at the end of June 2015, residential listings are down 36.4% and condos down 28.1%)  This is a good situation for those selling but not so much for buyers.

These inventory levels suggest continuing strong demand for the foreseeable future.

New home sales up 44%
The Ottawa Home Builders Association reported that housing starts are up 44% this year to date, compared to last-so builders are seeing very strong activity also. Accordingly, builder prices have bumped up this year and buyer incentives have generally decreased from a year or two ago.

More sales falling through:
Conditional sales that do not firm up normally run about 5 or 6% but we notice that this is up to more like 8 or 10% this year. This may be caused by buyers who make an offer quickly and then have some buyer remorse.  Another possibility may be that sellers are less inclined to adjust prices after home inspections discover some latent issues, thus causing buyers to walk on signed conditional agreements.  Tighter mortgage qualifying rules may also be a factor.

These sales “fall throughs” are worrisome, as they effectively take a property off the market for 5-7 business days and then potentially leave a stigma as to why the deal did not proceed which may turn other buyers away from the property.

More offer dates and multiple offers:
We are seeing many more offer dates or “no offers before”, as listing agents try to ensure as many buyers as possible get exposure to the property to optimize value for their sellers. Ottawa has always been more of an “early-bird-gets-the-worm” type of market but listing scarcity and stronger demand are forcing more agents and sellers to hold back offers. Note: while multiple offers have certainly increased this year they are not the norm, generally only a small %  (perhaps 5%) will see multiple offers and over listing price sales., although this may be higher in very high demand neighbourhoods.  There is a tendency for some in our industry to be over enthusiastic and make it sound like every property is selling overnight and with multiple offers and an over list price result.  This may lead to faulty expectations and perhaps some impulsive buying and selling decisions.

The average days on market to sell a property (though improved) is still 40 days for residential properties and 60 days for condos.

So it is a strong market which brings some different challenges than we faced a year or two ago and buyers and sellers are encouraged to stay engaged with their industry professional to be fully on top of the market dynamics.

Gord McCormick, Broker of Record
Dawn Davey, Broker
Oasis Realty Brokerage
613-435-4692 or 613-371-9691 (mobile)
Oasisrealtyottawa.com

Quality brokerage services at lower commissions, 11th year in business

 

 

 

 

 

Why “discounter” shouldn’t be a dirty word in real estate

do discount brokerages work?
do discount brokerages work?

We took a different path from most in organized real estate when we started our own independent brokerage. We had previously worked with two large international franchise brokerages and felt we could offer a very viable service at much lower commission than is necessary to support the infrastructure a large franchise brokerage requires.

We have done this successfully for 10 years now and our sellers pay 20-40% less than the typical 5% commissions charged by most of those working for brand name brokerages.  This can add up to thousands in $ commission and HST savings for those who work with us, particularly as house prices continue to rise.

How we can do it:
We have been able to provide excellent service and save our sellers a lot of money because we don’t have the overhead of the corporate franchise structure, so we can afford to provide the same level of service at a much lower price. Sounds like a win for the consumer, right?

So what’s the problem?
The problem is far too many consumers are led to believe that “discounter” is a dirty word (if not even a lower life form!) when used to describe a salesperson/brokerage that does not charge the more typical 5% commissions. Somehow the perception has been created that such brokerages offer lower levels of service and are “not as good” as the higher priced brokerage.

Realtor school 101:
Within the first month or two a new Realtor will attend a seminar or sales meeting on “handling the commission price objection” and they will all be taught the similar FUD (fear-uncertainty-doubt) to explain to a prospective seller why they should pay a much higher fee rather than go with the lower priced service provider.

“These firms don’t last long”

“These firms don’t advertise”

“Other Realtors won’t sell your listing”

“You get what you pay for”

Without going in to detail, these types of statements are simply untrue and disparaging a competitor in this fashion is contrary to Realtor codes of ethics and may be anti-competitive, too-yet it happens every day over kitchen tables, in blogs/websites and on radio shows… “ya gotta watch some of these discounters” might even be a tag line for some 5% Realtors.

Who wouldn’t like lower commissions?
Our experience tells us that most consumers would like to see lower commissions yet many are afraid to embrace the dreaded “discounter” because of continued fear-uncertainty and doubt spread by the higher priced agents.

Shop your local, independent brokerage!
Smaller and independent brokers are more likely to have a viable and lower cost MLS® listing model, since administrative, management and franchise fees are all lower for these firms and there are many good smaller brokerages here in Ottawa.

So if you believe that real estate commissions should be lower then don’t be swayed by corporate FUD and choose a lower commission or discount broker for your real estate needs. Many firms like ours are out there and offer some innovative service models that might work for you….so don’t be afraid to work with a non-name brand firm or affiliated Realtor.

To take advantage of our low cost programs for full service MLS® listings or buyer representation services, give us a call at 613-435-4692 or check us out online at the co-ordinates below. Excellent preseason listing rates of only 3% or 3.5% currently in effect.  The cash you are saving is your own!

(subject to change without notice, some conditions apply, not intended to solicit existing listings)

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

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