Real Talk!

All of the “big names” in real estate are reporting that the market has recovered… and then some! Certainly, my colleagues in the big cities (Toronto, Ottawa) are reporting a brisk market with many, many multiple offers (bidding wars). To be honest, we’ve had a few here; too… but there are still some superb deals to be had.

This morning, I did a quick review of our MLS ® data base and discovered 21 listings for houses priced $100,000 or lower. I would classify 1 or 2 of them as pretty hefty projects (handyman’s specials), 1 is a trailer on leased land and a couple of them are out on the edges of our territory. Still… pretty amazing possibilities!

There are 135 matches when I do a search for “vacant land” under $100,000 and 58 are under $50,000; four of them are about $15,000. Our area has a listing for a waterfront (small, no motor boat lake) cottage on ½ acre- 2 bedrooms, 4-piece bathroom, with nice sandy, shallow shore for $149,000! There’s a rustic cabin on about a half acre, too, but not waterfront… they’re asking $49,900.

Sure, we have lovely, beautiful cottages- year round; on motorboat lakes… they’re priced from $200,000 and up…. And we’ve got spectacular homes on lakes and acreages (several hundred acres in some cases) that are completely private… for the discerning buyer or the celebrity looking for an excellent hide-away… one in particular that is outstanding is priced at $2,100,000.

It’s staggering to think that our average cottage price would barely purchase a condominium apartment in the city… and the property taxes are close to the same… without the maintenance fees!

Now, having been enlightened about the super deals that are available, I feel I must touch on a significant item of note… at least, I think it’s significant.

I’ve noticed a disturbing trend… it’s called the request for abatement. It seems to be a bit of a dirty trick that is being foisted on sellers. Typically, offers these days include a condition that the Buyer obtains a home inspection WITH results considered suitable to them (in their sole opinion). That’s a good thing. Now, pretty well EVERY home… including a brand new one will have something the home inspector will find… after all, that’s their job. I’m talking about things like: they would recommend a gfi-plug in a certain location… or, there’s a hairline crack in the ceiling but it’s from settling and it’s old and it’s nothing to worry about… or, the roof looks like it will need doing in a year or two… usually they are things that are plain to see.

Once in a while, a good home inspector will come across something serious… for instance… there is absolutely NO insulation in the attic… and that IS a problem. In cases of serious deficiencies (things that can’t be seen by the untrained eye), it is not uncommon for the prospective Buyer to go back to the Seller and request some sort of abatement (or reduction) on the price. I’ve done it myself!

The problem is… lately; abatement seems to be the game. Even on properties being sold “as is” or those with obvious issues… and advertised as “unfinished” or “needing tlc” and, asking a price that reflects such deficiencies are seeing Buyers come back and requesting a reduction… in some cases a few hundred dollars.

Now, I realize that ten dollars is ten dollars and sometimes a home buyer is tapping their resources to purchase a property, however, when a Seller has identified that there are issues, it is in the best interest of the Buyer to address the cost of remedying those issues, before the price is agreed upon.

Sellers who are offering their property at what they feel is a “steal” and have identified it as a “fixer upper” (etc.) become rather disgruntled at being asked to replaced missing register cover or light switch plate- especially when their listing agent has already pointed this out to them and they've priced accordingly.

AND- a good Buyer’s agent will explain this to their client, when preparing an offer. A deal is meant to be fair and reasonable- a good Realtor ® will show their Buyers comparable properties and give them good advice.

Now, once in a while, a Seller demands a certain price and there is nothing that is going to sway them from it. Not even an unfavourable home inspection! Again, a good Realtor ® will explain that to a prospective Buyer- before an offer is drawn.

I do agree, that when something substantial is found (i.e. bats are infesting the attic) the parties should meet and decide on whether a price abatement might make a difference in the deal moving forward!

I just wonder sometimes, what happened to common sense?

Some of my colleagues will shrug and tell me that the vultures keep circling until there’s nothing left to gather around!