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

 

Almost 3,000 fewer listings than the same point 2 years ago!

Listings (or lack thereof!) continue to be the dominant story in Ottawa real estate based on 3rd quarter results through the end of September.

Almost 3,000 fewer listings than at the same point only 2 years ago!
New listings in September are down 10.5% for residential properties and 20.3% for condos vs last year and 22.6% and 26.8% vs 2015.
Total listing inventory at month end is down this year 20.1% for residential listings and 24.1% for condos. Compared to 2015, listing inventory is down 35% for residential and 33.6% for condos.  Combined this means the current market has a 2,922 fewer properties available for sale at the end of September than the same point in 2015.

Sales up, inventory down, scarcity looms
With total sales demand up 12.1% vs 2015 for residential and 24.6% for condos, it is easy to see how we are seeing average prices rise and more multiple offers.

Residential sales: price growth fuelled by demand
Unit sales were actually down 1.8% in September but average selling price was up 8.2% to $416,464. On a year to date basis, residential unit sales are up 6.6% and the average selling price is up 7.2% to $425,139.

Condo market continues to show strength:
2017 has been one of the best condo markets in many years with unit sales thus far up 23.5% and the average selling price up 4.6% at $272,220.

Who benefits:
Sellers benefit in this market but of course, those who are also buying face a challenge on that end. One of the basic facts of real estate is that those who own a home are stuck both buying and selling in the same market conditions, so while one may gain on one side, they suffer on the other.

Buyers face more multiple offers, a very fast moving market on new listings and limited decision making time.

Builders have had a record year from anecdotal reports and we can certainly confirm that builder prices have been increasing and buyer incentives decreasing in the face of strong results and limited listing inventory in new construction also. Buyers are encouraged to keep an eye on new lot or phase releases or in demand inventory homes.  Also take your Realtor with you to the sales centre and consider asking for a “hold” or “reservation” for a short time from the builder, if possible.(though builders may also be tightening up on their willingness to accept such good “faith” agreements)

Bottom line and what to expect:
Though mortgage rates are creeping up with the Bank of Canada recent rate changes and there are continuing steps to tighten mortgage qualifications, our market appears pretty solid and poised for more growth.

Investors are still trying to figure out how new rental rules from the provincial government may affect them, so we could see some slackening in demand from this sector as a result.

As long as the federal government does radically alter their headcount and spending plans going in to the latter half of their mandate, our local economy should continue to be fairly buoyant and allow us to continue with the positive real estate trend lines which have been strengthening for the last 18 months.

This could be the best fall and winter in the last decade to be listing a property, given all the foregoing, so sellers should be reasonably confident they can find a buyer even in our historically seasonal hibernation between mid-November and mid-February.

Buyers should keep a close eye on the market as there may be some off season listing gems hit the market from sellers who have been awaiting a new build completion and have to list in the off season to accommodate their move in plans.

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

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

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

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

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

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

Repair or replace any tired fencing or decking.

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

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

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

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

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

Get the windows cleaned inside and out.

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

Replace any tired outdoor furniture or accessories.

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

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

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

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

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

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

 

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

A lower commission brokerage

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

 

 

 

 

 

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?

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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

When should I list my Ottawa home or condo? (part 2)

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Should I wait until summer to list my house?

This is a question we often hear and the answer depends on the individual homeowner circumstances and objectives. Quite often the “best time to list” discussion is determined by other factors but here are a few items to consider in a listing and timing strategy:

Spring is King:
The April through June period is by far our busiest sales time here in Ottawa and our ratio of new listings to sales is also strongest during these months. Competition is also the heaviest then as well, so sellers with overpriced listings may not realize it until it is too late to react to market feedback.

February-March are great lead in months:
Open houses are full of buyers in February and March, so this can be a good time to be listing also.  If buyer feedback suggests listing tweaks there is time to adjust before peak sales season.

Don’t avoid listing in Summer!
Contrary to real estate myth, the 2nd best selling season is July-September based on monthly sales.  While one often hears that “real estate is dead” in the summer and “things pick up in the Fall/after Labour Day” this is totally inaccurate when one looks at monthly unit sales history.  So don’t avoid listing in July or August, because of this Realtor equivalent of an old wives tale.

Listing timeline most often tied to purchase:
Quite often the listing timelines are dictated by when one can find their “dream home”. This can rarely be preplanned, as it is subject to the whim of what becomes available on the market and a buyer being able to successfully secure a purchase on that property.
A key issue in the purchase of a property is always the sellers’ timeline and desired closing date, so one cannot always pick when their new home will be available.

Resale property vs new construction:
Resale properties are typically available within a 45-60 closing time frame. New construction is typically much longer (except for inventory homes or model home sales) with 4-6 month lead times or longer.  This can especially complicate listing timing for a new built home that is going to close in January-March which means selling an existing home later in the year which is the slower time for the resale market.

How long will it take to sell my existing property?
Most are enthusiastic and assume their palace will sell very quickly and at the price they expect and plan for. This is quite often not the case, unfortunately.  Just over 40% of new listings sold on the Ottawa real estate board during 2016-so a fast sale is by no means guaranteed.  In fact, the average residential property took 56 days on the market to sell in 2016 and the average condo 70 days.

What are the competitive issues that will affect my sale?
The level of competitive listing activity from resale homes and new construction will vary by area and time of year but obviously have a huge effect on when and whether to list. Overall inventory levels have come down quite a bit over the last year, so this may be a pretty good year to list compared to previous years, assuming we continue to see the slightly better demand level we experienced in 2016.

Can I list my property now for a closing in 6 or 8 months?
Most resale properties close within 45-90 days of a sale on average, so by trying to listing for a much longer closing, one is decreasing the number of potential buyers and hence demand and possibly market value.

How do I “time” the market?
If peak sales are April-June, does this mean one should list in April? Or get a head start by listing in March?  Most properties look their best in mid-May or June, once leaves are back on the trees and gardens start to bloom, but is this too late to be listing?
If one thinks in competitive terms: the first person to list has the advantage of being available to buyers in the market at that time but also has the disadvantage that those listing later will be able to price their listings knowing the listing price of the earlier listing.

Do I sell first or buy first?
Age old question which varies with buyer circumstances and both have their pros and cons.  A high % of buyers with existing homes typically find their new dream home first and then put the existing property on the market but it is not unusual for someone to sell first, particularly if planning to buy in a high neighbourhood.

Bottom Line:
There are many factors which affect the timing and marketing of a property and a Realtor is best equipped to consult on all factors specific to an individual property and neighbourhood.

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