The real estate industry brings in millions of dollars every year, yet the regulations don’t seem well aligned with a hot Sellers Market.
While Ottawa’s housing market isn’t the craziest in Canada, it gets plenty of traction. According to the Ottawa Real Estate Board, the first Quarter has shown housing prices having a significant increase, and they are only continuing to climb. The market is continually changing right now, so basing a price off of last month’s sales is very much out of date.
This citation is very favourable for sellers but isn’t great for buyers. In the past, the asking price was usually realistic for what the seller hoped to get for the sale, and buyers wanted to spend a little less. With the market currently, the asking price is just an indicator of where the bidding will start.
In reality, anything is worth what people are prepared to pay, but how you establish the sale is extremely important. Now that multiple bids are the norm, buying a house has essentially turned into an auction. The problem with that, though, is that it is essentially a blind auction since realtors are legally not allowed to disclose what the bids are. This means you could put in a significantly higher bid than all the other bids, and you could end up paying more than necessary to purchase the home. All of the power is in the seller’s hands now rather than equal, which causes enormous disparities within the Ottawa housing market.
The Ontario government can take a few different basic steps to ensure that buyers have protection with getting a new home. The easiest and most straightforward way would be to compel sellers to have a home inspection and present it to the Buyer. This way, those entering into a deal can know that state of the home instead of just blindly trusting what they see. The other thing to consider is moving toward an open auction process, much like Australia.
Whether you are looking to buy or sell property in the Greater Ottawa Area, it is critical that you have a real estate agent on your side who understands your needs. At Adam Mills Realty, our team has been in business for over ten years and have a proven track record for success with our loyal clients. Our team is comprised of knowledgeable and experienced professionals who are happy to help you navigate the ever-changing Ottawa real estate market whether you are looking to buy, sell, or just need advice. Please contact us at 613-825-7653 or email us at info@ottawaishome.com for more information or help with your relocation.
