This morning a great article was published in the Globe and Mail that touches on a couple important subjects that every first time condo buyer should think about before purchasing your first condo.

The writer speaks about how condo buyers are allowing emotions to get the best and are not fully prepared for condo ownership. They see short commutes, no maintenance, and the lifestyle that developers are selling, before fully doing the math.

The buyers ‘ass’u'me’ that it is cheaper to live in a condo since you only pay one fee per month and wont have to pay for a furnace, roof or any of the other costs that can suddenly pop-up. But the writer explains that you might still have unexpected expenses that the reserve fund cannot cover and will have to reach out to the unit owners for additional funds. The writer gives some pretty extreme examples, but still very important.

Good little article that might take the wind out of your sail, but rightly so, you should be financially ready to own a home. The last thing I would want to do is help you sell because you cannot afford to live in your dream home.

Do you agree with me/the writer? Do you disagree? Tell me in the comments below or call me 613-286-9501 or email Matt@MattRichling.com.

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Almost daily, I get the question about what exactly separates one unit from the other. I took a little trek over to the Mondrian which is still under construction to show what is keeping the elephants out!

Please leave your comments below! And you can also call me direct 613-286-9501 or email Matt@MattRichling.com!

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http://www.MattRichling.com

"pumpkin season" by émiliep on flickr

When you purchase a condominium in Ottawa we include in the offer a condition that allows you to research the condominium and read over its “status certificate” with your lawyer. This also gives you time to get in contact with members of the condo board and talk to them about the following questions. During the process you will learn how responsive and organized its members are. More importantly it will allow you to find out if there are any problems before it is too late.

1. What percentage of units is owner-occupied? What percentage is tenant-occupied? Generally, the higher the percentage of owner-occupied units, the more marketable the units will be at resale.

2. What covenants, bylaws, and restrictions govern the property? What grandfather clauses are in place? You may find, for instance, that those who buy a property after a certain date can’t rent out their units, but buyers who bought earlier can. Ask for a copy of the bylaws to determine if you can live within them.

3. How much does the association keep in reserve? Plus, find out how that money is being invested.

4. Are association assessments keeping pace with the annual rate of inflation? Smart boards raise assessments a certain percentage each year to build reserves to fund future repairs.To determine if the assessment is reasonable, compare the rate to others in the area.

5. What does and doesn’t the assessment cover? Does the assessment include common-area maintenance, recreational facilities, trash collection, and snow removal?

6. What special assessments have been mandated in the past five years? How much was each owner responsible for? Some special assessments are unavoidable. But repeated, expensive assessments could be a red flag about the condition of the building or the board’s fiscal policy.

7. How much turnover occurs in the building? This will tell you if residents are generally happy with the building. According to research by the Canadian Real Estate Association®, owners of condos in two-to-four unit buildings stay for a median of five years, and owners of condos in a building with five or more units stay for a median of four years.

8. Is the condo building in litigation? This is never a good sign. If the builders or home owners are involved in a lawsuit, reserves can be depleted quickly.

9. Is the developer reputable? Find out what other projects the developer has built and visit one if you can. Ask residents about their perceptions. Request an engineer’s report for developments that have been reconverted from other uses to determine what shape the building is in. If the roof, windows, and bricks aren’t in good repair, they become your problem once you buy.

10. Are multiple associations involved in the property? In very large developments, umbrella associations, as well as the smaller association into which you’re buying, may require separate assessments.

I came across a list by NAR (National Association Of Realtors, basically our USA counterpart) and decided to Canadianize the list. You can check out the original list here.

If you  would like to talk about buying a condo here in Ottawa, please contact Matt Richling directly 613-286-9501 or by email Matt@MattRichling.com.

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http://www.MattRichling.com

So it is the middle of the month. PERFECT opportunity to breakdown the current statistics for the Ottawa Condo Market. We are going to talk about three markets - Entire Ottawa, Downtown Core, and West Ottawa North.

ENTIRE OTTAWA

Currently in Ottawa there are 560 condo properties for sale across the entire Ottawa Real Estate board (107 of which are conditionally sold, but not sold firm). The average price for all these listed is $350,101. Over the last month (most accurate current information), the average price listed was $234,115 with the average sale being $230,111 - providing a 98% list to sale price ratio with average of 30 DOM (days on market). Total amount of condominiums sold in Ottawa, year to date is 2,650.

DOWNTOWN OTTAWA CORE

Currently in the downtown Ottawa core (see above map) there are 124 condominium properties for sale (16 which are conditional sold, but not sold firm). The average list price for these units is $543,868, which is high, mainly due to a fair number of new construction buildings listing the penthouse/larger units - in return raises the average). Over the last month (most accurate current information), the average price listed was $335,025 with the average sold price being $333,799 - providing a 100% list to sale price ratio with an average of 13 DOM (days on market). Total amount of condominiums sold in the downtown core, year to date is 375.

WEST OTTAWA NORTH

Currently in the west Ottawa north area (see above map) there are 62 condominium properties for sale (12 which are conditional sold, but not sold firm). The average list price for these units is $439,958, which is high, due to a couple high priced resale listings. Over the last month (most accurate current information), the average price listed was $294,412 with the average sold price being $289,578 - providing a 99% list to sale price ratio with an average of 39 DOM (days on market). Total amount of condominiums sold in the west Ottawa north area, year to date is 221.

RECAP

What does this mean? If you are looking in the downtown core, units are NOT lasting on the market. If you are relying on solely checking the MLS website, *YOU WILL MISS OUT ON PROPERTIES* especially in this market. Get signed up on an auto-notification search through your Realtor. Ensure he/she is sending you the listings asap, not one a one email per day or week setup. Also this data also shows that if you are willing to move outside the downtown core how much you can save. In most cases $40,000 or even up to $100,000 for certain parts of the city. Where do you want to live? What is your pre-approved (through a mortgage broker) amount, and what is your budget (sometimes these are two very separate numbers)?

If you would like more specific data about your area, or would like to talk about selling your home, please contact Matt Richling directly 613-286-9501 or by email Matt@MattRichling.com.

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http://www.MattRichling.com

Claridge Plaza phase one was finished last year and construction is underway for phase two which has an unofficial completion date of 2011. Take a look at the progress below, which is currently at the 10th floor.

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http://www.MattRichling.com

Matt Richling is a sales representative with RE/MAX Affiliates Realty Ltd., Brokerage, Independently Owned and Operated - The opinions of the authors expressed herein do not necessarily state or reflect those of the RE/MAX or RE/MAX Affiliates Realty Ltd., Brokerage.

Today I was able to tour the units at 200 Besserer street (corner of Cumberland), also known as “The Galleria”. Built by Richcraft,the 12 floor building contains 149 units mixed mainly with one bedroom, one bedroom plus studio, two bedrooms, and two bedrooms plus studio. The smallest unit, the Holgate, is 615 sq. ft. compared to the largest units, Harris and the Jackson both 1,135 sq.ft. aproximately.  Prices for the units range from $279,943 for the Holgate (one bedroom 615 sqft) on the 10th floor to $473,747 for the 12th floor Jackson (two bedroom plus study 1,135 sqft). Don’t forget parking is an additional $27,500 for the third floor, or $30,000 for the first and second floor.

The units themselves feature “higher ceilings” (basically vary by unit - some up to 10ft!), full hardwood, ceramic tile, and berber carpet, six appliances, and lavish bathrooms. The finishing touches are currently being put on the units, so there are not any interior pictures, but you can take my word that the finishes in the building were impressive. The recreation area and pool are quite large compared to the surrounding condo buildings. As well the entrance and hallways were equally as impressive and created a grand feeling as I toured the building.

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http://www.MattRichling.com

Matt Richling is a sales representative with RE/MAX Affiliates Realty Ltd., Brokerage, Independently Owned and Operated - The opinions of the authors expressed herein do not necessarily state or reflect those of the RE/MAX or RE/MAX Affiliates Realty Ltd., Brokerage.

Night Scene in Ottawa - Taken by Robbie's Photo Art on Flickr

Yesterday, a deal that I had been working on fell through. Both sides could not come to an agreement, and decided that it was best not to continue. Although my client was initially unhappy with the outcome after investing her time and money to get where we had, she was very happy to realize things about the property now, before she had possibly taken ownership.

Okay so why are you telling us this Matt?

Because this situation happens, and most people do not prepare you to look at the facts. Regardless of the property type (income producing or not), there is a conditional phase (building inspection, due-diligence etc) where we take a closer look at the property and “dig a little deeper”. We try and take away the emotional side (”I really want it”) that we as buyers have, and bring in the “truth professionals” also known as the building inspector, lawyer, etc.  We pay them good money to look at the facts, and to give it to us straight.

My role in this, as an agent (some clients call me their secret agent, please feel free to do so as well) is to work with the other side to get you what you want. You want that lamp, alright let me see what I can do. You want that hole that a squirrel uses as the entrance to your home fixed before you move in, let me see what I can do. Keep in mind, both parties (buyer and seller) are both human beings. Both sides have goals, which most often are not financial, and are looking to have the other side provide it.

We (as in the team) are going to find things (some good some not so much), and nine times out of ten we can negotiate them into/around/out of the purchase. But sometimes at the end of the day there will be a fact that just can not be negotiated, or fixed about a property. We will do our best, but that deal might not be the one for you and we will have to understand that.

The great thing is that I will stay with you through this deal and the next. I will be there to help you find those squirrel holes and get them fixed.

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http://www.MattRichling.com

Matt Richling is a sales representative with RE/MAX Affiliates Realty Ltd., Brokerage, Independently Owned and Operated - The opinions of the authors expressed herein do not necessarily state or reflect those of the RE/MAX or RE/MAX Affiliates Realty Ltd., Brokerage.

I recently posted the first five steps that a home buyer would (or should) go through when purchasing a home. I called the first five as “the shopping” steps and the last five below as “the sale” steps. To find the first five steps GO HERE.

6) Preparing the Offer
Once we have narrowed down the homes, and you have found your perfect home we will prepare the Agreement of Purchase and Sale. We will sit down and evaluate the circumstances and comparables for this property and the neighborhood sales, along with your situation and what you are looking for. We will determine the dates, price, and clauses (terms and conditions) as well as plan the offer strategy (in person, through other agent etc.).

7) Negotiating the Offer
The offer is presented to the vendors. They will either accept, reject or counter the offer and it will go back and forth until an agreement has been met. Often it is not the price that is the “tough sell” it is dates, or timelines, or inclusions/exclusions etc.

8)Fulfilling the Conditions
Once the offer is accepted we will have a certain amount of time (usually 7-14 days maybe longer) to fulfill the conditions which we placed in the offer. These conditions could be upon financing (being approved for the mortgage), insurance (being approved for property insurance), home inspection (getting the “A-Okay” from the inspector), septic and water potability test for rural properties, or review of status certificate (in the case of condominiums). There could still be negotiations that take place before going firm (everything has been agreed and sold), if a major problem arises from the building inspection, both parties must agree on how to move forward ( price reduction, work being done, etc).

9) Firm Offer
Once the offer has been firmed up (all conditions met and agreed), I will forward all of the sale documents to your lawyer and financial institution.

10) Closing
CONGRATULATIONS! Today you get the keys to your new home. Generally do not expect to get the keys before mid afternoon as the lawyer rarely releases the keys before then.

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http://www.MattRichling.com

Matt Richling is a sales representative with RE/MAX Affiliates Realty Ltd., Brokerage, Independently Owned and Operated - The opinions of the authors expressed herein do not necessarily state or reflect those of the RE/MAX or RE/MAX Affiliates Realty Ltd., Brokerage.

The Ten Home Buying Steps... :)

As a home buyer, you have three main goals: to get the right home in the right neighborhood, at the best price possible – and with the least amount of stress! When working with a buyer agent, you benefit from having your best interests represented through the whole process. I decided to do a basic breakdown of the steps that one should go through when purchasing a home. I have split this list into two parts (”the shopping” and “the sale” steps) to make it a little easier of a read.

1) The Agency Relationship
This is where we sit down before even looking and start the relationship. We will go over the Buyer Agency Agreement and we will discuss how I as an agent get paid. This is also where you will receive the buyer package which has all of the maps for the area, and tons of information that you will find useful when dealing with mortgage brokers, lawyers and building inspectors.

2) Mortgage Pre-Approval
GET PRE-APPROVED! I cannot stress this enough. Too many people start looking before they have sat down with a mortgage professional and are just wasting their own time by looking. By understanding how much you can afford, you will be able to make a much better decision and when you find that perfect property, make a much stronger offer. It takes a large chunk of stress out of it, and you don’t risk disappointment when you are not approved after finding the perfect home.

3) Buyer Profile
This is the step where we sit down and talk about homes. I will try and find out your wants, needs, must-haves, and nice-to-haves in regards to features of the home. I will ask you when you prefer to move, where you would like to be and most importantly WHY do you want to move? Since we are now under agency law, you can feel confident in explaining your motivation behind moving, which would certainly help me when we are in the offer stage. By understanding that you need to move by a certain date because your current lease expires, or your son/daughter are going to be attending school in September etc, will help me tailor searches and represent you better when negotiating with the other party.

4) Computer Search
I will then go to my secret lab and find you the perfect home. Okay, not exactly, by using the criteria that we set in the above stage I will find and narrow down the homes that are available to match what you are looking for. I will send you the matched homes so that you can look in the comfort of your own home and can look at your own pace. At the same time I will place your search criteria into an auto-notification for new listings allowing you to see them before they are available for the public. They will get sent to your email again allowing you to view them at your own time.

5) Viewing Properties
This is where we get out and see first-hand, the matches that you have narrowed down. We will spend the time and visit the homes, and get a much better feel for each home. We will further narrow down the homes until we find the one that is perfect for you. We might even do a second showing on a property with other family members or friends, to ensure that there is enough living space for them when they visit during the holiday (it comes with home ownership - cant get out of this one).

Stay tuned for “the sale” portion of the home buying process.

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http://www.MattRichling.com

Everyday I check to see how you are finding my website, whether it was by direct link or searching in Google. I check the search terms to accurately see what the visitor had typed in Google, Yahoo, etc. and then I sometimes check to see how high I ranked. Many of the search terms lately have been a combination of either certain buildings, streets, or developments, my name (with some very funny ways of spelling it), or general market information. For example, the search term just a moment ago which inspired me to write this post was, “is it a good time to buy a home in Ottawa over the next 4 months?”

Obviously the answer is YES! Well as long as you are thinking long term, it is an obvious yes. First you must think long term, and then understand your goals. Just like how I felt the first time buyers from a previous post should take some time to understand where they are and where they want to be, you should as well.

Once we are clear and fully aware of ourselves, then it is time to understand WHY real estate is the greatest investment and why it is a good time to buy.

If you don’t do it now, it will cost you more later. In 2008 the average home price in Ottawa was $289,766. In 1998 the average price was $143,953, in 1988 it was $128,434, and if you look back 30 years, in 1979 the average price for a home in Ottawa was $61,896.00. In the past 53 years there were only five years where there was a decrease (year over year) in average sale prices, with only two of the past 53 years having over a 2% drop. Re-read this sentence if you are like me and need to allow it to sink in.

So far this year we are seeing minimal changes in pricing with January experiencing a 1.5% raise in prices.

YES because of the credit “crisis” housing has been affected. Things have corrected them selves and we are not experiencing the BOOM similar to what we have seen over the past ten years. Ten years ago we saw the prices dip and then come rallying back. It is a cycle and we are enduring the “hard portion”.

What does this mean? For buyers this is the time to buy, jump on the train now, while you can and experience the ride up the mountain. For homeowners that are looking to sell, make sure everything you do shows your home at its best so that you can get the most dollar for your home.

So YES, over the next four months it IS a good time to buy in Ottawa!

Are you ready to make your move? Do you still need more convincing? Do not worry, I wont send the Soprano Family over to “help” you understand. I will take anyone that asks out for a cup of coffee and explain and answer any question that you might have about the Ottawa economy and our real estate market.

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http://www.MattRichling.com

Matt Richling is a sales representative with RE/MAX Affiliates Realty Ltd., Brokerage, Independently Owned and Operated - The opinions of the authors expressed herein do not necessarily state or reflect those of the RE/MAX or RE/MAX Affiliates Realty Ltd., Brokerage.