Luxury homes

I thought that this was an interesting article to show that the market is still super hot. The expectation seems as though things might cool off around the fall. HST, rising interest rates, and tighter government restrictions on lending rules will likely cool things off a little. This is just an opinion, not fact.

Feathersold!

I sold my first re-sale condo this week. It was a stressful experience as there is a hot market right now for downtown condos. It is very difficult to find a condo that is not overpriced, or has a lot of buyers bidding up the price. The unit was at 429 Somerset (at Kent) and it was a one bedroom, plus den. I think we managed to get a great deal considering the location and price we paid for it. If I had the money last week, I would have bought it myself. It was a grapevine listing, so we were able to get ahead of most agents and buyers out there.

Facebook

Up until about a month ago, I didn't really have an idea of how many people might be reading my blog as it is posted in a few different forms. It is posted on my website, my facebook page, and my facebook fan page. The numbers have been pretty good from my facebook fan page. I guess it's a part of some people's everyday facebook creeping they are doing. I'm happy to share my knowledge.

It is encouraging to know that people are interested in what I write or write about. I will try to continue to keep posting, to talk about as many topics as I can, and be a source of insightful information. I think it's a great way to build trust in a real estate relationship.

Homework time

It's a crazy real estate market out there. I've been helping some people buy and emotions are quite high right now. As the lending market becomes tighter, buyers are rushing to try to buy with the record low interest rates we have been having. I've witnessed people getting into crazy bidding wars, and I think this is the best time to have an agent.

I know I am biased, but hear me out. There are people out there using private listing services and are trying to cash in on the hot real estate market. They price their house based on what they want to get, not on the advice of someone that knows what the market is worth. This can be troublesome in two ways.

The first way, the seller does not know what his house is worth. He/she may undervalue it. They may not be informed enough about their house and what the market is going for. What the market is going for this spring is very different than the fall. You need to know what a place is worth in order to save possibly 10's of thousands of dollars, well worth an agent's fee. This information can be shared with an experienced agent, and one that recognizes the different market factors involved.

This is important for both the buyer and seller. As an agent, I have advised clients multiple times to go over asking price to try to buy a house. In some cases, it has worked, and in some cases it wasn't enough. It was important though, as an agent, to be able to advise my clients as to what the house was worth. My clients were ok with walking away from a property because they knew what the house was worth. We didn't have one of our offers accepted because someone offered $35,000 more than asking. It wasn't worth it at that price, but certainly warranted a bid over asking. Hence, we lost the house, but we didn't go broke looking for one.

The other way, the seller overvalues the house. Buyers can sometimes be had in this case because they think they are saving money without the services of an agent. First, they may be exposed legally by not going through the proper procedures and paperwork. Second, the existence of an agent or no agent does not change the value of the house. You need an experienced agent to know what a place is worth. If someone overvalues the house, it is sometimes deceiving from the seller that you are truly saving money. Houses are likely going to be your single greatest investment in your lifetime. You should get professional help to ensure you won't be set back for years. Hire an agent.

Anti-competitive behaviour

There was another interesting article today on ctv.ca. It discusses the recent request of the competition bureau to the Canadian Real Estate Association. CREA has decided to oblige by this request and has suggested a solution that reduces the anti-competitive nature of real estate agents. The competition bureau looks like they will challenge CREA on their proposed solution. They do not believe it goes far enough to help reduce prices.

It is a well-known fact that real estate agents yield higher prices for homes, on average, than private sellers. It is questionable, in some cases, why this may be the case. It may be because real estate agents know their business, or, according to the competition bureau, it is because they run the MLS system.

The MLS system is the biggest tool real estate agents have to collect and share information. CREA has proposed that private sellers be able to list on MLS for a flat fee, so that they may represent themselves. It should resolve the issue of the competition bureau, but they do not believe that this will help reduce prices of homes. The competition bureau has completely rejected the proposed changes.

I expect quite the dog fight to continue. Stay tuned.

I love Larry.

For some people, they might have heard that I had a great scheme to one day to move the Greyhound bus station, when I was big and rich, and to develop the site into a commercial or residential high-rise. I wish that was still the plan. I'd be rich. It would be the act that would let me retire. There was only one problem with that plan. I am nowhere near rich enough or connected enough at this point to pull off such a move.

So, what's the next best thing?

Well, check out this article.

This article talks about Larry O'Brien's plan to have Greyhound move out of the downtown core and move to Vanier along with the Via Rail Station. I think this is a wonderful idea. First, the piece of land where the Greyhound sits should be redeveloped. From a transit perspective, I could see light-rail going to the train station before I could ever see it connecting to the current bus station. The current bus station is somewhat cumbersome for travelers to maneuver around town once they arrive from the bus station. The current infrastructure is not very convenient.

Second, urban planners for the city of Ottawa are trying to get people to move back into the downtown core. With the hot sale of condos in the area, the plan seems to be working, but by redeveloping the eyesore the bus station is, the city has a better chance to continue to do this. Part of the reason for the city's plan to do this is because urban sprawl costs a lot of money. Roads, buses, and light-rail need to be constructed to service outlying areas. If we create a downtown core that is suitable for pedestrian traffic, the city has reduced its costs significantly.

I would be lying if I didn't have an interest in this plan. My house is directly behind the bus station. I love the location due to the proximity to downtown and the highway, but the bus station can be a little noisy. I would certainly prefer to see a new condo or office tower built. It would be new and would make my neighborhood that much more desirable. I think my property value just went up. :)