6 Tips for Buying a House in Ottawa
Written By Liam Swords
If you’re looking to buy a home in Ottawa, you might be a little confused about where to start. It’s a competitive market after all, and let’s face it, buying a house is never easy.
Whether you’re just moving to O-town and are a first-time buyer, or you’re a lifelong Ottawan looking to buy your next home, you must take the time to fully understand the process of buying a house and best equip yourself before you go out looking for a house to buy.
Buying a new home isn’t like buying a new pair of jeans, or even a new car. You can’t just take a look at some listings, check your wallet, and if everything’s green, click the buy button. Though the process here in Ottawa is a bit more complicated than that, and home prices aren’t cheap, we can also assure you that it’s nothing scary once you understand it.
And what’s more, if you’ve looked into how to buy a house in Ontario, you’d be happy to know that the cost is usually less for new homes here than in Toronto or elsewhere in Ontario.
So let’s start by breaking down the process of how to buy a house in Ottawa, and we’ll share some advice that we’ve been using over the past two decades to find the perfect home for over a thousand Ottawans.
1. Identify Your Needs vs. Wants
Before you even begin thinking about buying a home, it’s a good idea to take some time and reflect with yourself and your partner (if you’re buying together with a special someone) on what you need in a home, and what might be cool to have, but not absolutely necessary.
What Are Your Needs?
Maybe both you and your partner have a car, in which case it might be a must that your new home has two parking spaces. Or maybe you can’t bear the thought of having just one bathroom to share with the whole family, so a minimum of two bathrooms is a must-have.
And What Are Your Wants?
Now take a minute to think about this. If you’re not planning to have kids in the near future, maybe that second bathroom isn’t all that necessary, but just nice to have.
And other things too – maybe you want a fireplace, a study room, an attic, a basement, an open kitchen, and an en suite bathroom. Ask yourself, before you begin planning your buy, how many of your checklist items are wants and not needs.
Because you’re not always going to get everything, especially with today’s housing prices. It’s often said in real estate that an 80% solution means perfection. If a potential home has 80% of your wants (and all of your needs, of course), then it’s a golden opportunity, and it might be a great idea to decide to buy!
2. Consider Your Timeline for Finances, Buying, and Moving
“So when can I move in?” is often the first question we hear from excited Ottawa first-time home buyers when they finish viewing a perfect-looking home.
And, fortunately, if you’re moving to Ottawa, there’s usually a simple answer to that. The typical closing date for Ottawa home sales is 60 days, so as a rule of thumb, you can expect to be able to move in approximately two months after the agreement of purchase and sale, and you’ve made a down payment.
Down payments are typically required within 24 hours of a home purchase offer being accepted and must be paid in liquid funds. That is, cash, check, or electronic bank transfer. So you’ll need to have these funds available and ready to go before making an offer on a house. Though it can vary a bit depending on the sale price, the typical down payment for a home in Ottawa is about $10,000.
The next payment timeline you’ll need to keep in mind is the land transfer tax, which is due within 30 days of closing. The land transfer tax is an important factor to consider when considering the cost of buying a home, as it’s typically between 1% and 2.5% of the total price of your home and must be paid upfront in liquid assets.
3. Understand What’s on the Ottawa Real Estate Market
Now that you’ve made a list of your wants and needs and know when you can realistically plan a move, it’s time to take a glance at what’s available on the Ottawa property market. It’s no secret that real estate prices can be high (as with the general cost of living in Ottawa), so doing some searches and making sure you can afford a home within your criteria will help you prepare yourself for the next steps. The average home in Ottawa sells for 98% of the list price, so there is some room for negotiation, but not too much.
At this point, it might be a good idea to enlist the help of an Ottawa real estate agent. A knowledgeable agent can set up a portal for you that will search your criteria among listings on multiple sites and give you tips to narrow down your search and find the golden opportunity.
There are about 4,000 realtors in Ottawa, and the best agents will have personal connections with many of them. So a good agent can not only help you find homes online, but might also be able to show you some excellent houses for sale that aren’t publically listed, or “pocket listings” as we call them in the industry.
4. Know the Necessities
So you’ve checked your savings account, and you’ve got the funds to make a down payment as soon as you see the home of your dreams. But there are a couple of other things that are absolute must-haves when purchasing a home or buying a condo in Ottawa, and you can’t expect a seller to accept your offer without them.
Financial Pre-Approval
First things first, almost all home sellers will require pre-approval from a bank or mortgage broker, especially if you’re buying your first home. Getting pre-approval is fairly fast and straightforward. A bank or mortgage broker will examine your credit score, history, and assets and provide you with the maximum dollar amount you’re eligible to borrow for a mortgage.
Many even provide this online at no extra cost. As long as the amount you’re pre-approved for is the same or higher than the value of your home, it usually means you’re able to buy it.
Family Letter
While not always required, we also recommend that home buyers in Ottawa prepare a family letter, as it can make a significant difference when buying a home. This is essentially your cover letter, except instead of explaining to an employer why you’re a good fit for a job opportunity, you’re explaining to a landlord or realtor why you (and your partner and/or family, if applicable) are a good fit to buy their house.
Tell them who you are, what you do for work, and why you want to live in this home and neighborhood. If it’s your first home in Ottawa, this can really make a difference.
5. Cast Your Net Wide
Once you begin the process of calling sellers and viewing properties, our number one tip is to adopt an abundance mentality. As we mentioned – you’re not going to get everything you want. Not in Ottawa in 2024.
So rather than putting all your eggs in one basket once you see one perfect listing and fall in love, schedule a number of viewings for properties that match your criteria and keep your options open.
We always recommend that you schedule viewings as close together in their calendar as possible, not only to make things easier in your schedule, but also to make it easier for your mind to remember what you liked and disliked about each viewing and avoid confirmation bias. A good real estate agent can help you set up an optimal viewing schedule.
6. Don’t Be Afraid to Knock on Doors!
As we mentioned, many of the best houses for sale in Ottawa aren’t listed publicly. While a good Ottawa real estate agent will have connections and can usually pull a few strings to find some of these “pocket listings,” not even the best agent will know everything.
The only way to find those golden offers that not even the best agents know about is to go through good old-fashioned word of mouth. Don’t be afraid to take a walk through your ideal neighbourhood and ask around. You can go door to door, or ask locals at a neighborhood bar, diner, grocery store, or community center. Neighbours will know when neighbours are selling, and if you introduce yourself as a friendly home buyer looking to move into the neighborhood, they’ll probably be happy to help. Don’t be shy – Ottawa is known to be a city of good neighbours, after all, and if you’ll soon be living in Ottawa, it’s best to meet your future neighbours!
If you’re looking at buying a house in Ottawa but still feeling a bit confused or overwhelmed by the process, maybe it’s a sign that you should speak to one of the best real estate agents in Ottawa.
Liam Swords has been selling homes and working with Ottawa house buyers for over 20 years and can come up with a home buyer’s plan based uniquely on your needs. And satisfaction is guaranteed! If for any reason you’re not satisfied with the home we’ve found for you within the first year, we’ll help you sell it at no cost.
If you want to see how we can help, contact us or give us a call today, and we’ll set up a consultation right away to get you into your dream home in Ottawa as soon as possible!
Liam Swords is an accomplished real estate agent in Ottawa, having sold over 1,000 homes. As the team leader of Liam Swords Team, he combines extensive market knowledge with a commitment to client satisfaction.
