David McDonald says buying his first home in the latter half of 2021 was stressful — though maybe not for the usual reasons.
Even though he was working with a Realtor he trusted, he didn’t like that he couldn’t speak directly to the people selling their homes around North Bay, Ont., or that he’d repeatedly lost to other house-hunters in blind bids.
That’s partly why, when a friend forwarded a private listing in the area, he and his girlfriend jumped at the chance to view it.
“Being able to meet with someone, look at the house and make an offer and have a handshake agreement right off the bat … that was, like, so much more of a transparent, clear process that I definitely found pleasing,” said McDonald, 38.
He closed the deal without his Realtor, which McDonald estimates saved both sides roughly $15,000 in commissions.
And while that might be reason enough for some to entertain the idea, industry insiders warn that going without a Realtor comes with risks.
David McDonald of North Bay, Ont., bought a house privately with his girlfriend in 2022. He estimates it saved both sides roughly $15,000 in commissions. (Submitted by David McDonald)
“It was difficult to know where to find information about private sales,” said McDonald.
For most people, the buying and selling of any properties involves a Realtor or other agent. But there are those who go it alone — and ways to get help.
Rob Reay runs For Sale By Owner, a flat-fee platform for private-home sales where people can post and browse listings and get a breakdown about how such transactions work.
He says private sales might be particularly beneficial to people now, in light of inflation, a slowing housing market and steep interest rates. They just might not know where to look.
“Letting the consumers know that they have this option has not been easy for us,” Reay told CBC News.
The most popular tools available to buyers and sellers are controlled by the Canadian Real Estate Association (CREA) or local real estate boards and associations — including the Realtor.ca site and its Multiple Listing Service (MLS).
Rob Reay, president of For Sale By Owner, says private sales might be particularly beneficial to people now, in light of inflation, a slowing housing market and steep interest rates. (CBC)
CREA represents more than 160,000 licensed brokers, agents and salespeople through over 65 boards and associations in the country. Only its members are allowed to use the trademarked word “Realtor” in Canada and are subject to a “high standard of professional service and a strict code of ethics” according to its website. It declined to be interviewed for this story.
Even Reay has to use some of CREA’s tools. About 70 per cent of his customers opt to list their homes on MLS, even if they intend to sell privately.
While specific numbers are hard to come by, all indications suggest that private sales make up a tiny sliver of overall real estate deals in Canada. For example, For Sale By Owner recently had some 116 listings in all of Ontario, while some mid-sized cities in the province showed more than 1,000 on MLS.
Reay says interest in private sales has increased as technology has allowed people to browse the market themselves, and then accelerated once the COVID-19 pandemic started.
“There’s a couple of people that are not winning,” with private sales, he said. “I don’t need to say who they are.
“But the two winners are the buyers and the sellers — and they are both very happy at the end of the day.”
Broker Davelle Morrison says buying a home is typically the biggest purchase the average person will make in their lifetime. (Davelle Morrison/Facebook)
The other professionals most often involved in real estate deals are, of course, lawyers.
In a private sale, they can still co-ordinate funds and oversee the transfer of property, says Daniel MacAulay, a partner at McLeod Law in Calgary who specializes in real estate.
But, he warns, they can’t provide any insight on the value of a property, on market trends or a contract’s conditions — all things agents tend to do before the contract gets to the lawyer.
Lawyers are largely reliant on what clients present, MacAulay says, meaning it’s up to clients to make sure they’ve done their due diligence.
“Having a good Realtor and having a good lawyer, that’s a good situation for everyone involved,” said MacAulay.
He especially doesn’t recommend private sales for first-time buyers.
Ben Black, a software engineer in Squamish, B.C., bought a house privately for north of $800,000 with his partner in 2021. (CBC)
For Davelle Morrison, a Toronto-area broker for Bosley Real Estate, the thought of a buyer or seller being unrepresented makes her uneasy.
“It’s like someone walking around without any insurance, and I hope people wouldn’t do that,” she said.
She says good real estate agents can make the process easier for their clients by helping them net more when they sell and conducting thorough research on properties they want to buy.
“You don’t know if there could be something faulty with the house unless you get a home inspection done. You don’t know if a big train station is about to be moved in next door. You don’t know if the land is sinking. You just don’t know what you don’t know,” Morrison said.
Realtors also have access to a wide network of fellow agents that can increase traction on a given property, Morrison says, which could be the difference between getting a few eyeballs on a listing to getting dozens of offers on a house.
“Having boots on the ground and knowing what’s going on … is a big difference from just doing it yourself,” she said.
While commissions may be a pain point for some, she says they aren’t all pocketed by the same person. In Ontario, typically five per cent of the sale is split evenly between the seller and buyer’s agent, with a portion of that going toward their individual brokerages.
On top of that, making a sale is never guaranteed, and typically only top-performing agents get frequent sales. Many don’t make a sale at all in a given year, she says.
“It’s not just as simple as saying, ‘Oh, well, you guys are overpaid,'” said Morrison.
Ben Black, a software engineer in Squamish, B.C., bought a house privately for north of $800,000 with his partner in 2021. He says he tried working with an agent but found their price recommendations to be higher than what he thought the houses were worth.
“It’s like the default to go with the Realtor, but I don’t think it should be,” said Black, 31.
While he understands Realtors can put in a lot of work for each sale and can be handy in smaller markets, Black says he still can’t get behind a percentage-based commission model. He’s confident in contracting a lawyer or a notary to oversee the transaction while he does the research himself.
That’s what he says he’s doing with his second property. He hopes to sell it with the help of a flat-fee real estate service and says he’s more likely to sell to someone who also wants to buy privately.
“It’s more easier to bypass that whole process,” said Black.
MONTREAL – Two Quebec real estate brokers are facing fines and years-long suspensions for submitting bogus offers on homes to drive up prices during the COVID-19 pandemic.
Christine Girouard has been suspended for 14 years and her business partner, Jonathan Dauphinais-Fortin, has been suspended for nine years after Quebec’s authority of real estate brokerage found they used fake bids to get buyers to raise their offers.
Girouard is a well-known broker who previously starred on a Quebec reality show that follows top real estate agents in the province.
She is facing a fine of $50,000, while Dauphinais-Fortin has been fined $10,000.
The two brokers were suspended in May 2023 after La Presse published an article about their practices.
One buyer ended up paying $40,000 more than his initial offer in 2022 after Girouard and Dauphinais-Fortin concocted a second bid on the house he wanted to buy.
This report by The Canadian Press was first published Sept. 11, 2024.
MONTREAL – The Quebec Professional Association of Real Estate Brokers says Montreal-area home sales rose 9.3 per cent in August compared with the same month last year, with levels slightly higher than the historical average for this time of year.
The association says home sales in the region totalled 2,991 for the month, up from 2,737 in August 2023.
The median price for all housing types was up year-over-year, led by a six per cent increase for the price of a plex at $763,000 last month.
The median price for a single-family home rose 5.2 per cent to $590,000 and the median price for a condominium rose 4.4 per cent to $407,100.
QPAREB market analysis director Charles Brant says the strength of the Montreal resale market contrasts with declines in many other Canadian cities struggling with higher levels of household debt, lower savings and diminishing purchasing power.
Active listings for August jumped 18 per cent compared with a year earlier to 17,200, while new listings rose 1.7 per cent to 4,840.
This report by The Canadian Press was first published Sept. 6, 2024.
In the quest to find cities where renters can enjoy the best of all worlds, a recent study analyzed 24 metrics across three key categories—Housing & Economy, Quality of Life, and Community. The study ranked the 100 largest cities in Canada to determine which ones offer the most to their renters.
Here are the top 10 cities that emerged as the best for renters in 2024:
St. John’s, NL
St. John’s, Newfoundland and Labrador, stand out as the top city for renters in Canada for 2024. Known for its vibrant cultural scene, stunning natural beauty, and welcoming community, St. John’s offers an exceptional quality of life. The city boasts affordable housing, a robust economy, and low unemployment rates, making it an attractive option for those seeking a balanced and enriching living experience. Its rich history, picturesque harbour, and dynamic arts scene further enhance its appeal, ensuring that renters can enjoy both comfort and excitement in this charming coastal city.
Sherbrooke, QC
Sherbrooke, Quebec, emerges as a leading city for renters in Canada for 2024, offering a blend of affordability and quality of life. Nestled in the heart of the Eastern Townships, Sherbrooke is known for its picturesque landscapes, vibrant cultural scene, and strong community spirit. The city provides affordable rental options, low living costs, and a thriving local economy, making it an ideal destination for those seeking both comfort and economic stability. With its rich history, numerous parks, and dynamic arts and education sectors, Sherbrooke presents an inviting environment for renters looking for a well-rounded lifestyle.
Québec City, QC
Québec City, the capital of Quebec, stands out as a premier destination for renters in Canada for 2024. Known for its rich history, stunning architecture, and vibrant cultural heritage, this city offers an exceptional quality of life. Renters benefit from affordable housing, excellent public services, and a robust economy. The city’s charming streets, historic sites, and diverse culinary scene provide a unique living experience. With top-notch education institutions, numerous parks, and a strong sense of community, Québec City is an ideal choice for those seeking a dynamic and fulfilling lifestyle.
Trois-Rivières, QC
Trois-Rivières, nestled between Montreal and Quebec City, emerges as a top choice for renters in Canada. This historic city, known for its picturesque riverside views and rich cultural scene, offers an appealing blend of affordability and quality of life. Renters in Trois-Rivières enjoy reasonable housing costs, a low unemployment rate, and a vibrant community atmosphere. The city’s well-preserved historic sites, bustling arts community, and excellent educational institutions make it an attractive destination for those seeking a balanced and enriching lifestyle.
Saguenay, QC
Saguenay, located in the stunning Saguenay–Lac-Saint-Jean region of Quebec, is a prime destination for renters seeking affordable living amidst breathtaking natural beauty. Known for its picturesque fjords and vibrant cultural scene, Saguenay offers residents a high quality of life with lower housing costs compared to major urban centers. The city boasts a strong sense of community, excellent recreational opportunities, and a growing economy. For those looking to combine affordability with a rich cultural and natural environment, Saguenay stands out as an ideal choice.
Granby, QC
Granby, nestled in the heart of Quebec’s Eastern Townships, offers renters a delightful blend of small-town charm and ample opportunities. Known for its beautiful parks, vibrant cultural scene, and family-friendly environment, Granby provides an exceptional quality of life. The city’s affordable housing market and strong sense of community make it an attractive option for those seeking a peaceful yet dynamic place to live. With its renowned zoo, bustling downtown, and numerous outdoor activities, Granby is a hidden gem that caters to a diverse range of lifestyles.
Fredericton, NB
Fredericton, the capital city of New Brunswick, offers renters a harmonious blend of historical charm and modern amenities. Known for its vibrant arts scene, beautiful riverfront, and welcoming community, Fredericton provides an excellent quality of life. The city boasts affordable housing options, scenic parks, and a strong educational presence with institutions like the University of New Brunswick. Its rich cultural heritage, coupled with a thriving local economy, makes Fredericton an attractive destination for those seeking a balanced and fulfilling lifestyle.
Saint John, NB
Saint John, New Brunswick’s largest city, is a coastal gem known for its stunning waterfront and rich heritage. Nestled on the Bay of Fundy, it offers renters an affordable cost of living with a unique blend of historic architecture and modern conveniences. The city’s vibrant uptown area is bustling with shops, restaurants, and cultural attractions, while its scenic parks and outdoor spaces provide ample opportunities for recreation. Saint John’s strong sense of community and economic growth make it an inviting place for those looking to enjoy both urban and natural beauty.
Saint-Hyacinthe, QC
Saint-Hyacinthe, located in the Montérégie region of Quebec, is a vibrant city known for its strong agricultural roots and innovative spirit. Often referred to as the “Agricultural Technopolis,” it is home to numerous research centers and educational institutions. Renters in Saint-Hyacinthe benefit from a high quality of life with access to excellent local amenities, including parks, cultural events, and a thriving local food scene. The city’s affordable housing and close-knit community atmosphere make it an attractive option for those seeking a balanced and enriching lifestyle.
Lévis, QC
Lévis, located on the southern shore of the St. Lawrence River across from Quebec City, offers a unique blend of historical charm and modern conveniences. Known for its picturesque views and well-preserved heritage sites, Lévis is a city where history meets contemporary living. Residents enjoy a high quality of life with excellent public services, green spaces, and cultural activities. The city’s affordable housing options and strong sense of community make it a desirable place for renters looking for both tranquility and easy access to urban amenities.
This category looked at factors such as average rent, housing costs, rental availability, and unemployment rates. Québec stood out with 10 cities ranking at the top, demonstrating strong economic stability and affordable housing options, which are critical for renters looking for cost-effective living conditions.
Québec again led the pack in this category, with five cities in the top 10. Ontario followed closely with three cities. British Columbia excelled in walkability, with four cities achieving the highest walk scores, while Caledon topped the list for its extensive green spaces. These factors contribute significantly to the overall quality of life, making these cities attractive for renters.
Victoria, BC, emerged as the leader in this category due to its rich array of restaurants, museums, and educational institutions, offering a vibrant community life. St. John’s, NL, and Vancouver, BC, also ranked highly. Québec City, QC, and Lévis, QC, scored the highest in life satisfaction, reflecting a strong sense of community and well-being. Additionally, Saskatoon, SK, and Oshawa, ON, were noted for having residents with lower stress levels.
For a comprehensive view of the rankings and detailed interactive visuals, you can visit the full study by Point2Homes.
While no city can provide a perfect living experience for every renter, the cities highlighted in this study come remarkably close by excelling in key areas such as housing affordability, quality of life, and community engagement. These findings offer valuable insights for renters seeking the best places to live in Canada in 2024.
