For many of us, real estate is our biggest investment, so both emotions and dollar signs can run high when we’re thinking of buying or selling. The real estate game is never an easy one, and in Southern Georgian Bay it can be ever more challenging. Ours is a sensitive market, with ups, downs and unique attributes that often make it rough to navigate. If handled carefully, the journey can be smooth; if not, mistakes and missteps along the way can be expensive and even lead to lengthy legal battles that can take years to resolve.
Buying or selling in our area means buying or selling within six municipalities and two counties, each with their own rules and regulations, geographical considerations and niche characteristics. Below are some helpful, and often overlooked, tips from broker Chris Keleher, highlighting the importance of local knowledge.
TIPS FOR BUYERS
#1. Take it Slow
The reasons people are moving to Southern Georgian Bay are as diverse as the local areas people have to choose from, each with their own unique attributes. Different areas attract different types of buyers, from those who are moving their family here to retirees, weekenders and investors.
“There is so much to learn about each little pocket here,” says Keleher. “You can’t buy here in the same way you buy in the GTA, where you act quickly and realtors make you feel like you have to go go go or you’re not going to get it.”
Those looking to buy in Southern Georgian Bay don’t always know what they want when they get here, and there is such a variety of different options in this area that there’s no such thing as a one-size-fits-all scenario. Take the time to get to know the area, says Keleher; it is large and diverse with many lifestyle options, from living near the slopes at Blue Mountain or golf course living at Lora Bay, to waterfront or in-town living in Collingwood or Wasaga Beach.
“There are swampy low-lying areas. It’s far more buggy up the hill than down the hill. Living in Thornbury is very different from Collingwood in terms of your day-to-day life,” notes Keleher. “Take your time to really learn. ‘What type of condo do I want to own and what’s the rental program on it? Do I want to live in Collingwood or the Blue Mountains? What is my life going to look like here? What is my long-term plan? Where are my kids going to go to school?’ ”
Gone is the frenzied panic of multiple offers, replaced by calmer, educated offers from buyers who are willing to wait for the property that is right for them.
Thankfully, in our area we have the luxury of time to make the right decision versus a quick decision. See as many homes as you can before you make your choice; it’s part of the learning experience.
#2. Get the Scoop on Short-term Rentals
Because Southern Georgian Bay is such a vast area, rules and regulations can change within a five-minute drive.
“We have different rules, like short-term accommodation and licensing processes, and you can’t make assumptions,” says Keleher. “With short-term accommodations and Airbnb, people are trying to do it but don’t recognize where they can do it and how that can affect their investment big time.”
When people aren’t informed and don’t know where certain regulations or restrictions apply, it can be hard to protect their investment. “Some people can no longer pay their mortgage because they were buying a property on the premise that they could rent it short term and make big money,” says Keleher. “Use a local realtor who understands rental rules and different municipalities.”
Another hurdle in our area is the Niagara Valley Conservation Authority (NVCA) and the floodplain that runs through much of this area. The NVCA regulations affect much of Southern Georgian Bay and the rules can have major impacts. If a buyer doesn’t have the facts, they may end up with a house they can’t expand as they’d like because it’s on the floodplain. “You could buy a house on Birch Street in Collingwood and you could double it in size because it’s not on the floodplain, but if your home is on the floodplain, you can only expand it a certain percentage,” notes Keleher. “It can be very limiting as to what you can do.”
#3. Flip Smart
The flipping market has always been strong in our area, but the margins are tight. Spending loads of money on renovations doesn’t necessarily mean a big payout when it comes time to sell; it’s important to understand what the market will bear.
“If you’re going to get a margin, it will be a small margin,” says Keleher. “The fault is people try to make a big margin or they over-improve the house.”
Keleher sees those investing in local real estate tend to assess the value of the house based on alternatives, not the replacement cost or what has been invested in the house. “Buyers see it not as, ‘What is this house worth? But what else can I get for this money? Is this the best I can get for this money vs. is this worth this money?’ ” says Keleher. “There is such a variety of options. They may switch completely, from condo to freehold, based on alternatives.”
Whether buying or selling, there have never been so many sources of information available. Using a local real estate professional can help you navigate that information while applying their local knowledge and connections in your favour. When choosing a local realtor, word of mouth goes a long way. Ask friends, neighbours, family and co-workers who they have used to help buy and sell homes in the past. Look online at realtors’ websites. Are they easy to follow and well put together? Have investments been made on the realtor’s part to get the best price possible?
Once you have a list of potential agents, interview them and see who is the right fit for you, making sure you choose someone who is willing to take the time to help you maximize your investment.
TIPS FOR SELLERS
#1. Size Up the Market
When considering putting a ‘For Sale’ sign on the front lawn, sellers undoubtedly have a myriad of questions and doubts. What is the market doing now? What will it look like six months out? Should I price it low in hopes of sparking a bidding war or try and get maximum dollars out of the gate? The neighbour’s house sold for this amount; can I get the same? Is my house likely to be worth more than recent sales in my neighbourhood?
Consulting a local realtor may help tame those doubts and answer those questions, and in the process save you time and anxiety. “Tell me where your house is and the condition of it, and we can tell you how the market is for that house,” says Keleher. “Right now, if you have a condo in Shadow Ridge, it will sell in multiple offers for over asking. And right now if you have a house in Georgian Meadows, it will sit on the market.”
There are a host of considerations realtors analyze when pricing homes to sell. The exact same house on a different street could be in a completely different price range. What school district your property is in will influence what it’s worth. Which side of the downtown core your house sits on might mean a higher price tag.
“There are all these nuances,” says Keleher. “And it cycles back to local knowledge.” If you want to sell your property, price it right. It’s that simple.
#2. Price it Right
“Your property won’t sell if you’re not pricing your home correctly, which people have been doing recently based on the 2017 hangover,” says Keleher. “People are pricing it high hoping for what we call the ‘unicorn buyer.’”
When you price your property high, you put buyers in the position to disagree with the price, finding flaws they may have overlooked otherwise. On the flip side, if they agree with the price, they find things they love about the house and this could drive up the price.
“When things are priced right, they sell quickly in multiple offers,” maintains Keleher. “This does not mean they are going for crazy over-asking prices. It could be $5,000 over asking, it could be asking price but they have created momentum of more than one buyer to bring the price to the highest it can be in that market.”
Like any market, our local real estate market can be slow at times, but when priced right, properties have more of a chance of selling quickly.
“I kind of imagine Southern Georgian Bay with a big hedge around it and all the buyers are hiding behind the hedge waiting for something good,” says Keleher. “When things seem quiet and a listing comes up at a great price, everyone jumps over the hedge and pounces on it.”
For the past three years, low inventory and the type of inventory are the only things holding this area back.
Local agents will tell you there is always momentum in our area, but the demand is unique because people often don’t need to move here right away. “People don’t need a vacation home NOW,” says Keleher. “It is all tempered urgency, so it has to be the right product at the right price at the right time.”
#3. Get Prepared
The nature of the real estate business means that with every transaction you have a buyer versus a seller.
“The buyer is going to come in and try and find ways to get that price down and not agree with the seller,” says Keleher. “When people see flaws, they start looking for more flaws; it multiplies.”
Do everything you can, months in advance, to get your house buttoned up, within reason, advises Keleher. Don’t break the bank and gut your kitchen, but everything that you don’t do – such as small renovations, painting, staging, or preparing the home for each showing – is going to affect your chance to get top dollar.
“I always compare it to dating,” says Keleher. “You don’t go out with messy hair and track pants and say, ‘Don’t worry, I freshen up nicely.’ Showing your house is like a first date; people are coming in critical.”
#4. Marketing Matters
Find an agent with a marketing plan that matches your expectations. In today’s market it is all about having an online presence. “Marketing matters,” says Keleher. “It’s a big deal because there are so many out-of-town buyers. Your online marketing has to be great because people aren’t going to see a road sign from Toronto.”
Ask your realtor if staging consultation is included in their listing services. Look at their other listings and evaluate the quality of their photography, video tours and drone footage, all part of the standard package. Properties should be presented online as professionally as possible. Virtual visits mean potential buyers can eliminate homes without ever seeing them in person. But don’t overdo it, warns Keleher. Because of where we live, buyers often drive great distances to shop for homes in our area, and false advertising can leave a bitter taste.
“Don’t oversell it online; you don’t want it to seem too good and have people disappointed when they arrive.”
Whether you’re thinking of buying or selling, following these tips can make the difference in your experience, your wallet and ultimately, your satisfaction. ❧
