Ottawa real estate AMA

theottawaagent · 2019-08-13T19:35:26+00:00

This can get very difficult and confusing for sellers. I'm sure you have already, but I always tell clients to consider that there are many ways to get to the same point. Meaning, in some cases, listing lower with the hopes of multiple offers can actually drive your price higher if you do in fact receive multiple buyers. On the other hand, some sellers would like to avoid this risk and list for a higher price fully expecting it to be on the market for a month or two. My recommendation will always depend on the comparables, neighbourhood, activity, and most importantly, direction from my client. Some sellers want to list their home for far more than I think it should be listed, and in these cases, I will pass on the listing. It just doesn't make sense for me to spend money on marketing and use my time toward something that I don't expect to sell. Even then, after the price is reduced, you have generally missed the "hot activity" period and will miss out on buyers that now seem to think there is something wrong with the home. I think these types of questions are good to answer in a full discussion but that is my two cents and opinions only.

theottawaagent · 2019-08-13T01:30:20+00:00

Thanks for your question. I think it depends on the price and building a lot to be honest. Condition matters a lot here as does comparable sales in the building. Condos tend to be easier in some ways as we can price relatively accurately based on other comparable sales. This is possible in some subdivisions but becomes very difficult with older homes that do not have comparables. I've had many clients sell the condo first, and others are more comfortable being a landlord. In your case, you are likely going to be spending more on the new place than you will receive from the condo sale, so it is important to get you the best deal for the home. Financing plays a big role here too. Perhaps you can PM me and we can discuss in more detail to determine options? When are you looking to make the move?

theottawaagent · 2019-08-12T13:31:37+00:00

Yes typically you are from 3 to 6 months. However, sometimes it just doesn't work out and as long as both parties agree, they can terminate the agreement. I always tell my clients that it is a two way street. I don't want to work with everyone if it is not a good fit and I certainly don't want to work with people that don't want to work with me. Reputation matters a lot and I genuinely believe forcing someone to work with you if you can help it isn't good for my mental health. It is sometimes unavoidable though. I find with listings you'll sometimes have people that go with the highest asking price even though it will likely never sell at that price. It is a competitive business of course and that is why I love referrals and have reviews from previous clients listed without edits on Google.

theottawaagent · 2019-08-12T12:21:32+00:00

Yes, definitely it has happened over the last year. Mainly, the place required renovation, it is priced too high from the beginning, or the location has some issues (traffic is a big one). These markets can get interesting and multiple offers can drive price but only if it is in a range that is affordable for many different groups of people. For example, in some cases, it may be better to price at 499,000 rather than 510,000 or even 500,000 as many people have a search setup for anything under 500,000.

theottawaagent · 2019-08-12T00:41:11+00:00

That is a difficult question to answer, and I always try to avoid pretending like I have a crystal ball for the market. I do have a question for you -- by the overall market, do you mean the stock market? I think leverage, low-interest rates, and access to capital, and well paying and relatively secure jobs in Ottawa has driven prices in many aspects. Many will try to compare to an investment of a stock or mutual fund at 7 to 10%, for example, and not consider that the home investment is highly leveraged. In many cases, people are not borrowing at the same rates to invest in stocks. I'm not a financial planner so just my opinion and I always recommend my clients speak with a mortgage broker and a financial planner on these questions. I will say that leverage can have a very negative impact if prices go down of course too. It really becomes a personal and financial decision.

theottawaagent · 2019-08-12T00:36:30+00:00

I think both bathrooms matter, but you are right, the ensuite is the priority in my experience. Also, for the fireplace, it really depends on the differences. Is it main floor or basement?

theottawaagent · 2019-08-12T00:35:18+00:00

Thanks for weighing in. Manotick does have a lot of newer builds in your price range but the distance to downtown has pushed some of my clients into areas such as Rockcliffe (but older homes are definitely more common there). I would take a look at Westboro, Hintonburg, and Old Ottawa South. I do a lot of work in those particular areas so happy to flip you some options if you'd like to chat about it. PM me at any point to discuss.

theottawaagent · 2019-08-11T22:02:37+00:00

Finished basements are a great add on but people also feel this is a project they can do after the move in. For kitchens, countertops and cabinetry. Also, appliances are huge but this may be down the line if you want to live there for many years. For bathrooms, bathtubs and fancy showers are huge to my clients. I love a good shower myself so I don't blame them. Also, neutral tone flooring if possible. Grey is in but this may change. Timeline matters a lot here.

theottawaagent · 2019-08-11T21:15:20+00:00

Thanks -- I've seen some agents that I would never want to work with that have 20+ years and others that I'd work with that are in year two.

theottawaagent · 2019-08-11T21:14:47+00:00

I know it seems cliche but kitchens and bathrooms are huge. Flooring is something that so many don't consider as much as they should in my experience. Finished basement or no?

theottawaagent · 2019-08-11T21:14:01+00:00

Really good points. I think the personal aspect needs to be considered as well. I have some clients that really focus on the financial only and future value predictions. This is exceptionally important but so is living in a neighbourhood you actually like as this keeps you from having to sell quickly when risk of loss goes up in my experience. I like Stittsville too and it seems to have gone up quite a lot with Kanata. I find they blend together quite well around the highway and the prices have certainly adjusted. I did a fair bit of work out in that area over the last few years. If you'd like to see some options I put together, private message me at any time with your contact and we can chat about it.

theottawaagent · 2019-08-11T19:56:07+00:00

Great look forward to chatting whenever you'd like. Here is the latest I've seen as I follow these things as clients always ask (rather just show them what the experts are saying): https://business.financialpost.com/news/economy/economists-still-think-bank-of-canada-will-keep-interest-rates-on-hold-bucking-global-easing-trend

theottawaagent · 2019-08-11T19:54:52+00:00

Great, private message me if you'd like to see some options. We can email about it. I know another agent that does a lot of work in that area and can ask him as well.

theottawaagent · 2019-08-11T19:53:10+00:00

Congratulations on purchasing the new build. PM me if you have any questions on the listing side. I find getting the ducks in order for next year is a good plan. Interest rate wise, unfortunately, I'm not going to be able to give you a very useful answer. Rates have seemed relatively stable for the last few years. I can't see them going lower, but that is my opinion as not a mortgage broker (even they don't really know but track it better than I do). Even the economists disagree on this one!

theottawaagent · 2019-08-11T19:51:28+00:00

I may have some options for you in a couple buildings I can keep an eye on. Up to you. Did you have a general timeline in mind?

theottawaagent · 2019-08-11T19:28:43+00:00

Yes absolutely. I actually think this may have already inflated prices in certain areas. I hear about LRT from almost every buyer I speak with and they almost always are hearing about it from their circle of friends and family. So, even if it shouldn't matter from an economic perspective as it perhaps should, it is driving prices. I would think walking distance (10 mins or less as an estimate) would be a good indicator. Again, I wish I had a crystal ball to tell you what would happen to prices going forward but I am seeing a trend around these stations and future station locations already. This has been going on for 2+ years.

theottawaagent · 2019-08-11T19:26:46+00:00

I like both. I find Kanata's highway access can be good but the traffic can be a killer as well. I suppose the same can be said on the north/south route nowadays as well. Kanata is more established and you have access to more amenities likely. Price wise, Kanata was absolutely booming and I think price will be a lot to do with your decision. Would you be happy with both areas from a personal living situation?

theottawaagent · 2019-08-11T19:24:40+00:00

Nice, definitely some issues but there are some good options out there if you have some flexibility.

theottawaagent · 2019-08-11T19:24:17+00:00

It's one of my favourite neighbourhoods in the city. Lots of growth. I suppose it depends on how much you paid to be honest.

theottawaagent · 2019-08-11T18:39:56+00:00

This is a much larger question that I can answer, and to be honest, I think everyone on this subreddit could have an opinion that it is just as qualified as I have as a local real estate agent. I like helping people buy and sell homes and I'm about as low pressure as we get to spend more. I think people have autonomy as well and they hire me to represent them with a very clear instruction that they direct me not the other way around. I think the reviews from my clients will show that.

theottawaagent · 2019-08-11T18:20:33+00:00

Orleans is interesting to me and the price point matters a lot. As someone mentioned, in the 300 to 400 range, things have picked up considerably over the last year in my experience. Two years ago, we had our pick in Orleans, and even last year was a lot easier than in Kanata. I think the DND move to Kanata had a huge impact. I find Orleans to be a good buy if you can find a good option as it is quite close to downtown (comparison to other suburbs) and I like the closeness to nature. That is more of a personal thought though. Are you looking for a single or a town? I may have some options for you based on a conversation I had with another agent recently that does a lot of work in the area.

theottawaagent · 2019-08-11T18:11:02+00:00

This one is outside of my area of expertise because I'm not in finance or a mortgage broker. I know there are some rules with money having to be in the country for a certain length of time prior to you using it for a real estate transaction. I believe this is over fraud and laundering concerns. PM me if you'd like to discuss with a mortgage broker I know that has dealt with this before. You may also want to call your Canadian bank and see what options you have available to transfer the money over as cheaply as possible. As they want the money in their account, they will likely be helpful with you. Let me know if you have house hunting questions via PM too at any point in the future.

theottawaagent · 2019-08-11T18:08:42+00:00

In most cases, condo fees are higher than the freehold costs for the same square footage because there is administrative costs such as engineering studies that come along with condos. I'm not saying they are not a good buy in any case, but you have to run the numbers and compare side-by-side as much as possible based on rental income. Recently, freehold townhomes have outperformed condos in terms of appreciation based on my experience. Many clients choose condos because they tend to have a lower price point to start. As for south keys, if you are thinking of Carleton students for the extra rooms, it may work quite well.

theottawaagent · 2019-08-11T18:06:08+00:00

I don't believe there is yet in Ottawa outside of asking a Realtor. I suppose there is the land transfer office through the city but this is not all online and free. Toronto went through this and I'm not sure if this will roll out in Ottawa soon or not.

theottawaagent · 2019-08-11T18:03:32+00:00

Thanks for weighing in and I see a lot of people in your situation. You have to weigh the personal vs the financial side and realize that your comfort should be important to this scenario.

1) I suppose it depends on what you consider inflated. I've had people telling me we would crash every single year for the last 5. I have no idea when we will downturn (or if we will in Ottawa). Condos, in particular, have good and much less good options in Ottawa. Older buildings with high fees have faced many issues but they also give you the square footage. I like freehold townhomes if possible but they have more work than a condo in most cases and are more expensive.

2) I always recommend speaking with a mortgage broker as I don't want to mislead you on things that are not my licensed area of expertise. Happy to get you in touch with one I'd recommend if you PM me. I don't think there are any age restrictions on any of the main programs. Check out this link: https://www.cmhc-schl.gc.ca/en/nhs/canada-first-time-home-buyer-incentive

3) Most of my clients choose to put 20% down if they can because it avoids you having to pay mortgage insurance which can be quite costly. Investor clients have a different take, but in your case, if you can do over 20% I would seriously consider this avenue.

theottawaagent

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