On a regular basis, I see things being shared online, in newsprint and in conversation that frankly, are just hogwash. Let’s take some time and play around with commonly shared thoughts and myth-busters.

Prices in Durham Region are continuing to drop. Fact or fiction?

Fiction.

The average detached home in Oshawa is selling for $880,000. In July/22 the same home sold for $815,500.

Bidding wars are a thing of the past.

Fiction.

Although the bidding contests are not happening as much as in the past few years, in the past week 50% of all homes in Oshawa sold for more than asking. In Whitby the number was 65% and Clarington saw 37% sell for full price or over asking.

We are in a Buyers market?

Fiction.

The definition of a Buyers market is one where there is 4 – 5 months of inventory of homes for sale. Currently, from Newcastle to Whitby there is under 2 months of inventory of homes for sale. (Meaning, at the current rate of sales it would take less than 2 months to sell of the homes currently on the market.)

If I sell my home to a “cash for homes” company I will get a better deal than selling with an agent.

Fiction.

Cash for home companies, or “wholesalers” are in the business of buying homes at rock bottom prices and selling them at a profit. If a homeowner sells with an agent, the agent has a duty to sell at the highest price. Wholesalers operate buying at below market prices.

All Landlords are bad/ all Tenants are bad.

Fiction.

Most of the landlords and tenants want the same thing. A safe and comfortable place to live and for rent to be paid on time. No question there are bad actors on both sides, however in over 35 years working with property owners and tenants, I will say most are honorable people.

Immigration is causing the values to increase.

Fiction.

There is no question that if you add 250,000 people to Ontario on a yearly basis there will be stress on housing. Prices of homes react to “supply and demand” and when you increase demand without addressing supply prices rise.

Getting a pre-approved mortgage will secure today’s mortgage rates if I buy a home.

Fact.

By getting a pre-approved mortgage a lender guarantees today’s rate for a certain amount of time. Typically, 90 days from the date of the pre-approval is the most common time period a lender will commit a rate to a Buyer.

If I list my home with a Toronto agent more Toronto Buyers will notice it?

Fiction.

All realtors use the same MLS system locally. The Multiple Listing System is managed by the Toronto Real Estate board. When you list with a local agent you get local knowledge of where to advertise that will find the most Buyers for your home. If a Bowmanville agent listed a home in Brampton, they can place the home on the MLS system, however, they would have not current Buyers interested in a home in Brampton, along with not knowing where the most effective place is to advertise in the Brampton area.

You don’t need online virtual tours, brochures or floorplans to sell you home?

Fiction.

When the market shifts as it is currently, the need for online presence increases. 3D virtual tours are critical when someone from out of the area notices your home, and floor plans allow the Buyer to see the room flow prior to making their way for an “in-person” viewing.

Using a full-time Agent is not important.

Fiction.

When you hire an agent, you can choose to use a full-time or a part-time agent. There is a saying if you were going for heart surgery and had the choice of a full-time, part-time or semi-retired surgeon who would you select? The same applies to Real Estate.

I will get a better deal using a Bank rather than a Mortgage Broker?

Fiction.

When you use a reputable Mortgage Broker, they will shop the market and typically have access to over 40 lenders, including most of the Banks in Canada. They find the best deal for the Buyer, and in most cases collect a fee from the Lender not the Buyer.

Many homes are being sold conditionally currently.

Fact.

Sellers are accepting offers that have conditions on a home inspection and on financing in this market. In the past week from Newcastle to Whitby there have been 44 homes sold conditionally, up from 41 the previous week.

If I buy a home privately, without an agent, I will save the commission?

Both fact and fiction.

When you buy a home that is not listed for sale with a Broker, typically the Seller is hoping to save the commission, as is the Buyer. Rarely have I seen the 2 parties split the commission. Typically, one party wins and it all depends on who the strongest negotiator will be. Also, when a home is sold privately if a mistake is made, either party has to litigate to settle the issue, whereas if an agent is involved, they carry errors and omissions insurance.

If you are in the market to sell a property, or to buy one, using a professional Realtor will increase your odds of getting not only a good deal on what you purchase but also will help to ensure that the transaction closes and that there are no issues.

If you are interested in working with an agent, one that is full-time and has been selling homes in Durham Region for almost 40 years, I can be reached at lindsay@buyselllove.ca

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