Open House October 31 2016

Open House is hosted by Steve Gregory, and features Paul Rushforth and Barb Kramer of MortgageBrokersOttawa.com

Air Date: October 31, 2016

Steve: Look who's warming his seat today.
Paul: I am back and I realize I was saying to my—
Steve: We're talking about warming Frank's seat.
Paul: Oh, sorry.
Barb: I'm warming Frank's seat today.
Steve: Frank's at a football game.
Paul: He's at a football game with the Ravens?
Barb: Ravens and Kingston playing Queens.
Steve: Now, back to warming your seat Paul.
Paul: Yes, I apologize Steve. I have not been around lately. I think Lisa's been here, what, probably three of the last four weeks.
Steve: Oh you have courses to go to.
Paul: I have.
Barb: Lisa does a great job, by the way. I enjoy doing the show with Lisa.
Paul: Yes, she's very, very knowledgeable.
Barb: She's very good.
Steve: She's right by the book. She's like, she is so—
Barb: Well, she knows her stuff. You know we had an obscure question last week I thought it was obscure. Lisa's bang on.
Paul: Yes, she knows her stuff. She's very knowledgeable.
Steve: This was the one about the permits?
Barb: Yes, I think so.
Paul: Is there any chance you're saying I'm not knowledgeable?
Barb: Oh Paul. I would never—
Steve: Didn't you teach her everything she knows?
Paul: I taught Lisa everything she knows.
Barb: Lisa is cringing right now.
Paul: I just hope she's not listening.
Steve: No, she is very good, though.
Barb: It is good to have you back, Paul.
Paul: It's great to be back Barb.
Steve: Well, is this all loving all of a sudden?
Paul: Yes. Coming, kumbaya!
Barb: The show is young, Steve. The show is young.
Steve: Trudeau gets elected and Barb changes.
Paul: Don't get me started on Trudeau being elected please.
Barb: This is a real estate mortgage show.
Paul: Is this what you want to talk about, the land transfer tax, right? That they were trying to bring--
Steve: They're trying to bring in Kathleen.
Paul: Yes, I know. It's still Liberal Party, right?
Steve: Yes.
Paul: Kathleen I have nothing good to say about her and I apologize. That's my opinion obviously. Yes, trying to bring in that extra land transfer tax would absolutely—
Barb: That's going to kill the market.
Paul: It will crush the Ottawa market. We're, right now, we're not in a fragile market but we're in a— I guess the word's not fragile because I don't want to say that we're in a bad market because we're in a good market here in Ottawa but we're not—
Steve: It's just a lot of listings.
Paul: Yes, we're not in a real booming market like we've seen over the past. Bringing in that extra land transfer tax would cripple the market here in Ottawa. Absolutely cripple it.
Steve: It would kill it.
Paul: It would kill it. I mean, listen, and you know I put that on Facebook and some guy was like, "They do it in Toronto." Toronto's a different animal.
Barb: It's a different market.
Paul: Toronto's a different animal.
Steve: Toronto's had that forever, though.
Paul: They have but for example for people who don't know, land transfer-- Let's take an average sales price of 375,000 here on Ottawa. It's around that.
Steve: Before you go down that road, right now, there's only one land transfer tax and that's the provincial one.
Paul: Provincial one and the—
Steve: Toronto has two. They have the municipal and the provincial.
Paul: They do.
Barb: The land transfer tax now is I think is just slightly right around one and a quarter percent.
Paul: Well, so for example a $375,000 home which is sort of an average sale price here in Ottawa, it will be $4100 for land transfer tax. If we did bring in the municipal one like Toronto does, it's an extra $3500 in land transfer tax.
Barb: It's slightly less than another 1%.
Paul: Slightly less than another 1% but you bring in first-time home buyer into the market trying to get into a 370 or even a $300,000—
Barb: It doubles your closing cost.
Paul: It doubles your, well, not your closing cost. It doubles your land transfer, almost doubles your land transfer tax. Good luck trying to—We all know that the first-time home buyers spur our market. Good luck trying to get first-time home buyers into this market if they do that to the land transfer tax. I think you're saying that our wonderful mayor, Mayor Watson had said, no they will not do that. Correct?
Steve: Yes, because he's not looking for new money.
Barb: That's great.
Paul: Good, there is a smart mayor right there because he knows what would happen to the economy here in Ottawa if they brought that in.
Barb: You know you look at those first-time buyers, they're saving and they're struggling and add another 5K on an average sale price? Yes, that's—
Paul: Well, that's 5K you don't have for down payment, 5K you don't have for furniture.
Barb: Yeah.
Paul: Well, not even a first-time home buyer. Like, I mean—
Barb: Anybody.
Paul: You're contemplating selling right now. If your— Am I not supposed to say that?
Barb: No, no. That's fine, my kids know.
Paul: Okay.
Barb: Now.
Paul: Now. Sorry. I was pointing at Steve. I was pointing at Steve you know. You know anyone who's upsizing, downsizing, trying to add an extra double land transfer tax, it's already a pain in the butt you have to pay a land transfer tax.
Steve: Yes, you really shouldn't have. There shouldn't be a land transfer tax.
Paul: Land transfer tax, in Quebec they call it a tax. A welcome tax.
Barb: It's a welcome tax.
Paul: What was that a welcome? Welcome to paying for your house.
Barb: Welcome to Quebec.
Paul: That would absolutely cripple the market. I've been very vocal. I put it on Facebook. I know that a lot of Ottawa realtors and real estate board in general has put out a stopthetax.ca.
Barb: That's right.
Paul: People were able to go there and do that. I've been very vocal on social media about that because I come, listen, we're already up against enough tough situations here in Ottawa. We don't need this to cripple our market and it would cripple our market.
Barb: Our market's in good shape, right?
Paul: Very good shape.
Barb: There's only, don't rock the boat.
Paul: No.
Steve: The other problem is we don't what's going to happen in Carlton Place, we don't know what's going to happen to Camp Hill. You know, every mayor gets to choose.
Barb: Good point.
Paul: Well, yes, yes. Listen, I hope they're listening in because they'd be foolish, absolutely foolish to do that. It will cripple those economies. It would really would, those markets.
Steve: Although, you know...
Paul: Cripple it. Yeah.
Barb: People would avoid buying there.
Steve: Cornwall...
Paul: I think they would, too. I think they would, too. I mean, listen, you still get to pick an area and live in an area. If you love the area that's great. You know what; you're going to get less people buying, you're going to get less activity. I think people would probably be listing their houses to get out of there. You know? There are not enough buyers there, that are a lot of listings, that's a lot of supply; that will cripple the market.
Barb: Yes.
Paul: Good on Mayor Watson.
Steve: People are going to start trying to negotiate that and the price. Well listen, I have double the land transfer now so you've got to take off another $3000.
Paul: Yes. They do it in the States, right?
Steve: Right.
Paul: In the States, they always try to get the seller to pay for the buyer's cost. It's almost common all the time that the buyer's cost are paid for by the seller.
Barb: Wow.

Paul: Legal fees, land transfer tax, all that stuff. Well whatever they call it in the States but all the fees they try to get the seller to pay for them.
Barb: You want my house, at your total expense.
Paul: That's right.
Barb: Is it a give me or is it negotiated on every deal?
Paul: It's negotiated on every deal.
Barb: You could, depending on your negotiation skills, you could end up having the seller pay in one circumstance but you could pay the next time you move.
Paul: Absolutely, yes, yes. It's always negotiated. All those fees are negotiated in the States.
Barb: Wow.
Steve: Kind of like when you hear, "Can you kick in $1000 off your commission we can make this deal happen?"
Paul: Yes.
Steve: You've ever heard that, Paul?
Paul: Oh my God. You know what—
Barb: You take 1K, the other agent takes 1K. We got a deal. That happens a lot actually.
Paul: The worst part is if it comes from the seller and you want to sell your house, I mean, my kids aren't going to eat if I don't sell your house, I'm trying to help you sell your house but now you're trying to take my dollars, my income off so you can get your house sold. But it happens. It's common. It happens all the time where two agents might have to split off; eat a little bit of the pie.
Steve: Well, only if they agree.
Paul: Only if they agree. A lot of times on the buyer side, that doesn't happen. Right? I mean, they can go buy any house. Why would they take something on the buying side. But it happens. It happens if you want to get a deal together.
Barb: All about the client.
Steve: Aren't you glad I brought that up?
Paul: Yes, thanks Steve. You know what; you fired me up with the land transfer tax. Then you brought up Kathleen Wynn. Then you—Don't get me started.
Steve: Now you know why Paul really likes to see me an hour a week.
Paul: Yes.
Barb: He hasn't seen you one hour in the past five weeks I think.
Steve: That's right.
Paul: Yes, I've been lonely without you, buddy.
Steve: I guess so.
Paul: Yes.
Barb: I think you were having fun on your trip.
Paul: Yes, I was. I've had lots of fun with Rhonda.
Steve: We're going to get to Lisa in Ottawa when we come back. Don't forget the official meal for Halloween.
Paul: Is?
Steve: Take a hotdog. You take the center out of it and you have a Halloweenie.
Barb: Steve! Seriously?
Paul: He's been waiting to say that all day. That was good. Halloweenie.
Steve: We'll be right back.

[00:07:51 music and program ID]

Steve: All right, to the phones we go. Lisa's been waiting for a while. Has it been painful?
Lisa: Are you ready?
Paul: I'm ready Lisa. My staff's ready too.
Lisa: Excellent, excellent, excellent work that you're doing.
Paul: Thank you.
Steve:Thank you.
Barb: Thank you.
Lisa: Just to give you an idea. For a young kid, a young man with a secured job. He's finished university a couple of years ago you know. I think [00:08:31 inaudible] $7000. I think, is it the right time now or just wait—
Paul: To get, to buy—
Lisa: To buy a house. Not a house; I'm thinking about an apartment. An apartment, up to a certain amount of money, not more than a hundred thousand, 120. Then you have to pay the mortgage. I do and it's actually $7000 debt.
Paul: Is he renting right now?
Lisa: He's thinking to buy in Ottawa. He saw something in a basement you know an apartment. Right now, he's renting. Which one, is it better to do it right now or to wait perhaps two years things would be better.
Paul: No, no, no, no.
Steve: Does he have money for a down payment?
Barb: Now is—
Lisa: What do you think?
Paul: Does he have money for a down payment?
Lisa: Yes, yes.
Paul: Okay. Now is definitely the time.
Barb: Now is a good time Lis.
Paul: The market is flooded with listing so it's a perfect time to get into the market right now. Our market over the last two years hasn't really increased too much. There's never been a better time to get into the market than right now.
Barb: With rates as low as they are, and it sounds like he's a good candidate for pre-approval. If he only has $7000 in debt and he has—
Lisa: University, university debt.
Barb: Oh, and so student debt which is, yes, we see that all the time. If his full time salary, do you know from a qualification standpoint there are very loose numbers we say based on whatever outstanding debts you have, you qualify somewhere between four and five times your gross income in the form of a mortgage. I don't know what his—
Lisa: Let's say his net income is 48, 48,000.
Paul: Oh.
Barb: Yes, he'd qualify for a more than a hundred thousand apartment. It all comes down to— I often say to people, what you qualify for or what you're willing to pay or what your down payment is—
Lisa: Yes.
Barb: They all sort of work together in the your approval process.
Lisa: Let's say 10,000 mortgage you know.
Paul: He sounds like he's somehow approved anywhere from a 200 to $250,000 mortgage.
Barb: Yes.
Paul: I know trying to find something in Ottawa, a hundred thousand is—
Steve: Nova Scotia.
Paul: Yes, you're going to have a hard time finding something for—
Lisa: He saw something; it was in a basement in an apartment building to buy.
Paul: My advice to you would be talk to Barb and Frank and see how much he can afford and then see if he's comfortable with those payments. If he didn't go a little bit higher he'll find something a little more attractive than potentially a basement apartment.
Barb: Yes, something maybe a little long term.
Steve: Has a better resale value.
Paul: A better resale value.
Barb: Is he renting now or is he— Presumably he's your son?
Lisa: Yes, he's renting now.
Barb: He's renting. What's he paying in rent?
Lisa: He's paying 800.
Barb: For slightly more he could get a lot more than what he has now.
Lisa: Yes.
Barb: He's paying his own mortgage and not somebody else's?
Lisa: Yes, yes.
Barb: It sounds like he's a good candidate. It's a great time to buy. The rates are, it's just such a positive rate environment.
Lisa: I found the rate is [00:11:26 inaudible] One 125%. How much is it? One percent or 2% now?
Barb: Oh, it's not quite 1% although rates are really low. We've got rates, I mean as low as 2.59 on the fixed side. One or two lenders still at 2.59; a lot are 2.64s and 2.69s. On the variables side, prime which is 2.7 right now -.7 so 2% on the variable side.
Steve: This is the lowest they have ever been Lis.
Lisa: He goes with a broker. Then that would be a safe road, you know?
Steve: Yes, yes. more options.
Barb: Yes, more options. Absolutely, we can chop it around for the best rate and the best features that he's looking for.
Paul: Barb, what's your number?
Lisa: If he says, "I'm going outside a bit of Ottawa," let's see or lease, would he have a better choice I would say you know.
Barb: Well I think that comes down to what community you want to be a part of. Where he works, maybe he want to be close to work, doesn't want to fight the traffic.
Lisa: In a basement you know.
Paul: Yes, yes.
Lisa: In a basement—
Paul: I would start by calling Barb and Frank and get that mortgage pre-approval done and then we'll help him find something.
Lisa: What's their name and phone number?
Paul: [What's] your phone number Barb?
Barb: 656-
Lisa: 656.
Barb: 0758.
Lisa: 0758.
Barb: That's direct to my desk.
Lisa: 656-0758.
Barb: Yes.
Lisa: You're a broker and a mortgage broker and for a pre-arrange—
Barb: A pre-approval. We're happy to help him out.
Paul: Yes.
Lisa: Are you on the West end or East end or where are you located?
Barb: We're everywhere. We have offices all across the city. Our central office is on Woodward; we just moved.
Lisa: In the West end.
Paul: Yes.
Barb: I think that's kind of central. I like to think of Woodward as central.
Lisa: I said, let's see or lease the worse law, not the worst but very close to Ottawa, you know what I mean. We're close to Ottawa you know what I mean. They chose because the West end is more expensive than the East end.
Steve: It depends where you go.
Paul: Yes, yes. Here's where you start.
Lisa: I've learned that.
Paul: Start by calling Barb. We'll get you all pre-approved and let him know what he can pay and Barb will send him over to me and I'll help him find something, okay?
Barb: We'll get him all set up.
Paul: Great. Thanks for the call.
Steve: The smartest call she'd ever made.
Paul: There we go. Thanks Lisa.
Steve: Well done.
Paul: Yes.
Steve: It's almost like you guys know what you're talking about.
Barb: It's scary.
Steve: If you can find me a house for a 125, I'd like to buy it.
Paul: Then I will have to get a rate of 1% though.
Barb: Yes, yes. That is a good deal.
Paul: Yes, that would be a great deal.
Steve: This is just like a real estate negotiation you know. Like where all time lows for interest rates. I want more.
Barb: I want 1%. Now, purchasing an apartment in the basement, would that be a condo-type set-up? I'm not familiar with that sort of—
Paul: Yes, it would probably be sort of, she's probably be talking about a terrace but even a terrace I don't know where you'd find one for a hundred, 125. Unless it's, I don't know what she's talking about to be honest with you. I'm not sure what she's talking about for that price where a basement you know.
Barb: Yes, I've never heard of a basement apartment for sale. Typically apartments for sale are condos, are they not?
Paul: Yes, they are.
Steve: Here it is. We've waited long enough.
Barb: Oh.
Steve: We need the music for the "Did you know?"
Paul: Oh, I forgot about "Did you know?"
Steve: That's why I'm here.
Paul: Chris can't find the music.
Steve: There we go.
Barb: There we go.
Paul: Time in "Did you know?"
Barb: Is anybody going to comment on Chris's costume?
Paul: It's just a normal hat to me, Barb.
Barb: Oh, okay.
Paul: Yes.
Barb: Did you know, just simple straight forward "Did you know?" today. Did you know that the maximum amortization is not necessarily 25 years on your mortgage? It's 25 years if your mortgage is insured but if it's not insured, it's conventional with more than 20% down. Then you can go to a 30-year amortization still. I think there's a misconception out there and I get the odd question about is it maximum 25 years? To get your payments more in line if you choose and you want to choose a 30-year amortization and you have a 20% down then it's still available.
Steve: I have a "Did you know?" for you.
Barb: Oh, okay.
Steve: Did you know that the anniversary of your mortgage say, five years—
Paul: I was just about to ask this question.
Barb: I don't believe you.
Steve: You can add to the amortization again.
Barb: Yes, you can stretch it back out.
Paul: You can, so if I'm on a five-year 25M, I can then get a new mortgage at 30M.
Steve: Yes.
Barb: But did you know that you don't have to wait for the anniversary of it? You can do it midterm.
Steve: Midterm?
Barb: Yes.
Steve: I didn't know that.
Barb: You can.
Steve: How many "Did you knows?" have we got going on today?
Paul: Well that's a lot of "Did you know?"
Barb: Who are you waving at?
Paul: I'm waving at man George you know. I'm saying hi today.
Barb: You're confusing me. Why are you saying hi to me? I'm right here.
Paul: I was waving to them. They're waving to me so I was waving over your head. Sorry.
Steve: She's all excited. She's got three minutes from now, she gets to play again.
Paul: Yes
Barb: Oh funny.
Steve: Rates are the same then, unchanged?
Barb: Rates are unchanged, yes.
Paul: It's good news. How's the bond market? Oh, I shouldn't have asked because I know you've been sick the last two days and haven't looked. I'm sorry.
Barb: I haven't checked on the bond market. I'm presuming it's maybe in line and keeping rates the same.
Paul: Well said.
Steve: Have you think of running for government?
Barb: No, rates are still nice and slow. It's still a great time to get pre-approved. We're still seeing lots of pre-approvals come in. Get your rate hold; it's into the New Year now, 120 days. Yes, it's still a great rate environment.
Steve: That's true we're into March now, aren't we?
Paul: That's—
Barb: Well, February, right?
Paul: That's the middle of our spring market, believe it or not. You know like our spring market starts in mid January. That's when things start to really pick up so we're going to have a quieter time now as everyone knows. The homes are still selling but I think we're going to see a little bit of a slowdown going into Christmas and then start to pick up January 15th people start looking again.
Steve: Don't forget if you're buying in January you're moving in on April.
Paul: You could be moving in later. It could be May, June closing.
Steve: What is the average closing?
Paul: Anywhere from 60 to 90 days is very average.
Steve: Sixty?
Paul: 60 to 90 days, yes. We've got a couple on the books like 3-week closings. Like, it's really tight closings.
Steve: Really?
Paul: Yes. Well a lot of people, if you're buying right now, you want to be in for Christmas. You definitely want to be in at Christmas.
Barb: You do; or you want to be in well after Christmas.
Paul: That's right.
Barb: Like mid-January. Let me get my Christmas, leave some decorations out.
Paul: Yes.
Barb: Not a bad time to list your house right now.
Paul: No, I mean, like we've talked about—
Steve: Paul, is there ever a bad time?
Paul: Yes, I like when you ask me that?
Steve: When should I have listed? When should I have bought?
Paul: Yesterday is when you should have. I tell you, right now, yes, you're going to have less people looking. We're starting to see homes coming off the market now as people are taking them off for Christmas or maybe they're expiring they're going to try again in the spring market. There's not as much competition right now as there was three weeks ago. It's coming down a little bit so it's a great time to list. There's not as much competition. There may be less buyers looking right now but less competition. I can't say it's because of the market right now that you'll be able to cheat on price. Past market you'll be able to cheat on price but not anymore.
Barb: Well, as you mentioned I was speaking with one of Paul's very qualified agents this week about listing my home and thinking it's not a great time to list. Actually when there's less on the market there are more specific price points sometimes.
Paul: Yes, absolutely.
Steve: Whoever's looking at your house is interested.
Paul: Is interested. You don't have too many people kicking tires at this time of the year. I mean nobody wants to go out.
Steve: Minus four—
Paul: Yes, minus four and as we get into minus ten and twelve—
Barb: The boots and—
Paul: Yes. People don't want to be looking at homes unless they're serious.
Barb: They're serious.
Steve: Or it's an open house and it's your neighbor.
Paul: Yes. Even though, like open houses now, like our team starts to really slow off the open houses now.
Steve: 521-TALK. 521-8255. She's been chomping at the bit for the last three minutes. She's been doing sit-ups, jumping jacks and she's ready to bring you all the news you need to know to live. The one and only May Habib is next.
Barb: May Habib.

[00:19:43 music and program ID]

Steve: Welcome back to the show. Let's go all the way to Ottawa say hello to Bob. Hey, Bob.
Bob: Hey, good morning. How are you?
Steve: Great, how about you?
Bob: Great.
Barb: Hey, Bob.
Bob: Here we go. I'm 63 years old this month.
Hosts: Happy birthday!
Steve: Happy birthday to Bob.
Bob: I pulled in about $2200 a month; I'm on a pension. I've been living in the same place for 14 years.
Paul: You're owning or renting?
Bob: Renting. Keep renting and renting. How hard would it be for me to buy a house?
Barb: Is that 22 hundred your gross pension?
Bob: That's why I get a month $2200.
Steve: In your pocket?
Barb: That's net.
Steve: You have money for a down payment?
Bob: No. First time buyer.
Barb: That's a tough one, Bob. I mean, it used to be there was, you could get into a home without a down payment when we had a 100% financing but that went by the wayside a few years ago. The minimum down payment is 5% which is challenging when you're on a pension, right? There are some non-traditional sources of down payment that you can look at. If you have a line of credit you can draw on it and it factors into the affordability of paying back a lot of credit payment in addition to the mortgage but also on 22 hundred a month, I mean the qualification amount, if you use that, do you have other debt, Bob?
Bob: No, I'm clean. Clean, clean, clean as a whistle.
Barb: Oh, good for you.
Paul: Do you have good credit though, Bob?
Bob: Oh yes, absolutely. I got I think seven credit cards. They're all clean. Not a penny owed or nothing. Fourteen years of where I'm living in [00:21:34 Mintil] never, never, never a day late in rent. I mean, it's pretty stupid here. Something's wrong here you know.
Paul: What are you paying in rent right now, Bob?
Bob: Nine, ten.
Barb. Nine, ten.
Paul: Let me ask you a question, why didn't you buy back in the day? Then all of a sudden like 63 years I want to buy now. What's the reason for buying now?
Bob: Well, you see, again, at 63, the wife is 67, I have a daughter living with me. I mean, why not leave something to the kid?
Paul: Yes, great idea. That's how you build wealth.
Barb: Now, is your wife on a pension as well?
Bob: Yes, together it's $2300 a month or close.
Barb: Okay. If you're daughter's living with you, is there potential that she would maybe want to go on the mortgage and if she's bringing in an income?
Bob: Yes, she would. She's making about 58,000 a year I think it is. She's an insurance broker.
Barb: Well, that would definitely increase your—
Paul: Probability.
Barb: Probability of being approved for mortgage. You still got that little down payment hurdle, though.
Bob: Yes, but her credit is not good.
Paul: Oh.
Bob: I guess I'll be going with my credit.
Steve: You'd have to have everybody's credit.
Barb: Yes, you'd have to have everybody's credits especially is she's the major, if she brings the major source of income to the deal, then yes, she'd need to have credit.
Steve: By her credit being no good, is it recent or—
Bob: I think it's been on like that for the last five years. I mean, late payments, late payments, late payments.
Steve: If she could clean it up in the course of a year, would they have a better opportunity, Barb?
Barb: They like to see two years of clean credit history. Yes, she'd need to have two solid years of clean credit history.
Steve: I think the short answer Bob is no.
Paul: No, maybe not a no. It's still worth a call.
Barb: It's worth a call. I mean, we could run the numbers. It depends on what you're looking at but if we use that sort of baseline loose figure between four and five times your income in the form of a mortgage, I guess, too, it depends on where you want to live. Are you talking in Ottawa or potentially outside of Ottawa?
Bob: No, I'd like to get out of Ottawa a little bit. Not too far, Streetsville, Richmond, North Gore.
Barb: Okay. Well call into the office.
Paul: Yes, call Barb.
Barb: We can talk into more detail. 613-656-0758.
Bob: 656-0758.
Barb: If you want to talk to Frank, I don't know, you might, 0757.
Bob: 0757. Will do, you'll get a call from me.
Barb: Oh, thanks Bob.
Paul: Good luck, Bob.
Bob: Okay, thanks a lot guys.
Paul: Thank you.
Barb: That down payment, it is prohibitive to a lot of people.
Steve: Yes, it is, too bad. Let's go to Mark in Carp.
Mark: I have a question. Right now I have a property valued in around the 8 and a half price point in a six and a half price point neighborhood. I live in Carlton Place right now in a $500,000 house. I'm wondering should I be listing my Carlton Place and head back to Carp?
Paul: You've over-improved your house, is what you're saying?
Mark: Yes, I got carried away.
Paul: Listen, I'm in the same boat, Mark. It's frustrating. Yes, so you always like to be the, you know, you're smarter to be the lower-priced home in a great neighborhood than you are to be a great home in a lower-priced neighborhood. It will be a tougher sell. You're in a price point that's not unattainable by some people. It's still a chance. Now, what's the easier sell? The price point of 500 in Carlton Place would probably be an easier sell but—
Mark: Would it be giving Carlton Place market compared to Ottawa's [00:25:20 inaudible] Carp area?
Paul: You're both good markets. They're both very good markets. You know we have a lot of people as you've heard already in the show, we have a lot of people that are looking for the outskirts. Both Steve and I are both in the outskirts and we have land and they're not, it's not what the millenials are after these days. That's for sure. It's not, you're not unattainable at those price points in both those areas. It's whatever house you want to live in, the one of them will be sold for you.
Mark: Now apart, now this has been my big thing. Apart from MLS in my average housing, what other ways should I market my house?
Paul: Online is the easiest way. I mean, we obviously use the Homes Land magazine. We have the whole center spread. The Homes and Land which is a good magazine to attract buyers for your property. Online marketing, search engine optimization things like that, I mean we're bringing in about six to 700 leads a month on our properties. The online presence is where you really need. You need someone to master that online presence.
Mark: Now, when you say online presence, you're not referring to like Facebook, or TG or any of that sorts of things?
Paul: No. I mean we do that but that's just a very small, small portion of what we're doing online. We're talking different websites, search engine optimization. As soon as you hit our websites it just spirals to a ton of websites. When people are Googling your name or your property or properties that you have there, your property will pop up. Everyone from empire of China will see your property.
Barb: There's nothing more frustrating than when you go to Google somebody's address and you get no hits.
Paul: Yes.
Barb: You're looking for information on the property and there are no hits.
Paul: Yes, see what we are marketing about is, I always say this, I'm not a realtor, I'm not there to sell your house. I'm there to market your house and that's the best I can do is get traffic and bodies to your door. The house then has to sell itself. You need somebody who's going to have that online presence who knows what they're doing. I mean I have a very capable team that makes sure that all our properties get tons of traffic. That's what the goal is, is to get the traffic to your door.
Mark: So far, I'd be honest, five weeks and zero traffic. It's gotten me a little bit concerned.
Steven: You have it listed right now?
Barb: It's listed now?
Mark: Yes, it's listed right now. If you go to Outlandish Properties in Cartville you'll probably find mine.
Paul: Okay.
Steve: Five weeks and not a showing?
Mark: Nothing.
Paul: What did you have it listed at?
Mark: $879,000.
Paul: It's not with my company?
Mark: Oh no, no. It's with another realtor.
Steve: First mistake.
Paul: There's your first mistake. No, I mean, I'm going to comment on your realtor on that. I mean at that point you need to have a price set chat with your realtor or what are they doing to get the traffic to your door. It's five weeks and not one showing is either screaming price condition or not enough marketing and advertising dollars towards your property.
Mark: Yes, I was concerned that it would be more of the price division.
Paul: Well, it very well could be. You need to have that conversation with your realtors is one, show me the evidence that I need to have to get me to that 850. What are buyers looking for? When they're looking at my property, when they're talking about price, do they see the value in my price? If they don't then it's a price problem.
Mark: Yes.
Steve: What about, could it just be the fact that it's an expensive house that takes longer?
Barb: Yes, because there's not as much interest at that price point, right?
Paul: Five weeks and no showings?
Barb: Yes.
Paul: There's something going on there. That's definitely— It doesn't sound like it's a condition problem because you've over-improved it so it's probably beautiful.
Mark: Yes.
Paul: It's either a price problem or you just listed with the wrong person. Most likely it's a price problem.
Mark: Okay, now I appreciate that.
Steve: Good luck, Mark.
Paul: Good luck, Mark.
Barb: Thanks, Mark.
Steve: Do we have time? Yes, let's go all the way to Ottawa again. Say hello to Kyle. Hey Kyle.
Barb: Hey Kyle.
Kyle: How's it going?
Steve: Going great. You have an easy question for Barb, right?
Kyle: Yes, it's a very easy question. I'm posting on an investment property on November 9th.
Barb: Yes, next week.
Kyle: I wanted to know what the experts would go at in terms of in terms of rates. I have two other investment properties, both at variable. My primary residence is fixed but I'm debating on these investments.
Barb: Whether to go fixed or variable?
Kyle:Yes.
Barb: You know what?
Kyle: I know the difference is minimal but I want your—
Barb: Yes, you really can't go wrong either way and if you go fixed, I mean, you're writing off your interest anyway, right?
Kyle: Yes, exactly.
Barb: You want to pay as little as possible and you want to net as much as possible out of that properties so the variable being lower is probably more attractive. Either way, right now with rates fixed or variable, you really can't go wrong either way. They're just so low.
Paul: I think probably that you know, if it's an investment property, with the way the rates are right now, I personally would probably go on a fixed rate.
Barb: Yes.
Paul: I'm variable across the board but I personally would probably go because of the way the rates are and because it's an investment property, I personally probably would go fixed rate.
Steve: You have the guarantee for five years.
Paul: You know what the payments are going to be for five years.
Barb: You know how it's going to cover. He has a couple of other investment properties that are variable in as well, right? He's comfortable with that.
Paul: Yes.
Barb: I guess each property's individual and what you're netting out of it at the end.
Mark: Correct. Okay, that's great.
Steve: Thanks Kyle.
Barb: Thanks, Kyle.
Mark: Take care.
Steve: That is mad. I once said, you said you couldn't go wrong.
Paul: Listen, I just finished saying I'm variable across the board but I just—
Barb: We see both.
Paul: The spread is so little right now that you know what, if it's an investment property you want that guaranteed, you know what the payment is going to be, and fixed might be the way to go. It sounds like Mark was, it was Mark, right?
Barb: Kyle.
Paul: It sounds like Kyle is pretty knowledgeable when it comes to the investment side.
Steve: Yes.
Barb: He's experienced.
Paul: He's experienced so maybe—
Barb: If this is your first investment property you may want that security but if he's experienced... We see both. We see fixed and variable on the investment side.
Steve: We're going to Greely when we come back. 521-TALK. 521-8255.

[00:31:25 music and program disclaimer sequence… The advice and recommendations in this program are those of the participants and not necessarily those of Bell Media or this station. Listeners are advised to obtain personal consultation, should they wish further information.
We return to open house, the real estate and mortgage show on Newstalk Radio 580CFRA. If you have any questions about mortgages or real estate, give us a call at 521-TALK, that’s 521 8255.]

Steve: Beautiful Greely. I love Greely. Hello, Rita.
Rita: Hi. Thanks for taking my call.
Steve: It wouldn't be a show without you.
Rita: Well, we are retired and we want to downsize. We have a four-bedroom, three bathroom bungalow.
Barb: Nice.
Rita: —and a half acre lot in Greely. We've had our house for sale since the spring. It had many, many showings. There has never been an issue of price or it's been in any need of any upgrades or care. It's a well-maintained home but it hasn't sold.
Paul: Okay.
Steve: Have you had any offers?
Rita: We had one very, very low conditional offer initially which was not acceptable.
Paul: If you were a buyer right now Rita, what's the showability of your property on a scale of one to 10.
Rita: It's perfect.
Paul: You would say you're a ten?
Rita: Yes.
Paul: Okay. Here is—
Steve: Is it dated at all Rita, or not?
Rita: It's 15 years old.
Barb: Oh, so—
Rita: It's not open concept.
Paul: Okay.
Rita: It does have a kitchen that is not 100% open to the family room or to the dining room or to the living room.
Paul: Here's the only issue, well, there's a couple of things here I tell you. Greely is a saturated area because you have a lot of builders in there. You have a lot of— Frank started here but a lot of the Italian boys have gone in there, bought up lots of land and they're building a lot. Your competition is pretty fierce in Greely. That's one thing. Here's what I tell people when they say I have lots of showings but it hasn't sold. Two things, if you get no showings, there's a price problem. If you get lots of showings and no offers, there's a price or a condition problem. I don't know. I can't say it's a price or condition because I haven't seen it but I can tell you that's the general rule or thought when you get lots of showings and no offers. People are finding better value somewhere else. Let's be honest, they're looking at your house, they're looking at other homes and they're buying other homes. They're seeing better value for the features in other homes than yours.
Barb: Now, isn't there, between realtors, the people who are showing Rita's homes, so they're bringing prospective buyers through—
Steve: Feedback?
Barb: Yes, feedback. Are they not giving feedback to Rita's agents so they'll know they get a little more insight to why her home is not selling?
Paul: Feedback is, listen I've said it before, the bars of entry in the real estate is so low, and there's some crappy realtors out there. Indeed there are. There really are. If you're trying to get feedback, it's a struggle sometimes to get feedback from agents, which sucks because Rita wants to know like what is the problem? Why aren't you buying my house?
Barb: That's in her best interest for her agents to be properly servicing her. It's in her best interest to get that feedback.
Paul: Yes. I would think right now that you either have a condition or a price problem. If you can tell me that your house has a 10 showability, it's probably is a condition problem. You might be looking at a price problem because you've gone through some good months since you've been listed since spring.
Steve: Yes.
Rita: Should I keep the house on the market over the winter?
Paul: The competition is coming down so I would. Unless it's a bother to you, I would keep it on the market.
Rita: It seems there are a lot of things listed still.
Paul: There is. There is. In Greely, because like I said you have a lot of new builders in there it's a saturated market in Greely.
Steve: You don't live next to a junkyard, do you?
Rita: No.
Barb: They've seen trash in the backyard.
Rita: No, nice neighborhood, tree block.
Paul: Yes, it sounds nice. It sounds nice. I think it might just have a price problem there Rita.
Rita: Okay.
Paul: Okay.
Steve: Good luck.
Barb: Good luck Rita. Bye.
Steve: Let's go to Sylvia in Ottawa. Hello, Sylvia.
Sylvia: Hi. I'd like to know, my daughter, she's renting in downtown Ottawa and she's looking into moving into suburbs. She's looking into Bell's Corners. I'd just like to see if you have any opinion in that area?
Paul: Yes, well, Bell's Corners is—
Barb: Bells' Corners is lovely.
Paul: Bell's Corners is a decent area. You'll find that it's a little older and dated. You're going to find some properties that need lots of, especially cosmetic works because it is a little bit dated and the population in Bell's Corner is a little bit older age-wise.
Barb: Mature lots and stuff like that. There are lots of nice trees.
Paul: t's definitely an affordable area. I mean I'd give you go a little more west, you're in Kanata, much more expensive, Streetsville much more expensive. Bell's Corner is certainly a decent area. It's not a huge sought after area but it's a decent area.
Sylvia: Okay.
Steve: Thanks Sylvia.
Sylvia: Thank you. Ba-bye.
Steve: See, her daughter, that would be Sylvia's mother.
Barb: Paul is not old enough right now.
Steve: Birthdays. Birthdays.
Barb: No birthdays today.
Steve: No birthdays.
Barb: No birthdays today.
Paul: I just want to mention to Mike who's on hold there maybe to give Barb's number because he's looking to getting a mortgage.
Steve: Yes, yes.
Barb: I'll talk to Mike after the show.
Steve: Of course she will take care of that. Birthdays. Brad Beckler my good friend, his son turns 24, Jeff Beckler.
Paul: Yes. Jeff.
Barb: Happy birthday, Jeff Beckler.
Paul: Happy birthday, Jeff. I have something really cool here I'd like to talk about. We have adopted a dare for the blood drive. The blood clinic here in Ottawa is in desperate need of blood. We've taken on a day. We've sponsored a day. It's on November 6 from 8:30 to 12:30. You can go and book an appointment to give blood at blood.ca. My whole team is going to be on staff. I have pizza. I have lots of tin bits and it's donated from our good friend Mark and Kathy Dicky from the Bell's Corner or the managers at Tim Horton's as well as the central park Tim Horton's so thank you very much for that. We're in desperate need of blood here in Ottawa, desperate need. Please go to blood.ca and book an appointment November 6 from 8:30 to 12:30 or any other day.
Barb: It's on Carling.
Paul: It's on Carling. We will be there November 6 from 8:30 to 12:30. We'd love to see you guys out and book an appointment, have pizza and come meet us and have a lot of fun.
Steve: Beautiful.
Paul: Yes.

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