Rooted is all about the people, places, and events, that make us proud to call our community home.
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Real Estate investment is putting North Bay on the map. According to Money Sense, 2024 will be a big year for the Gateway City as North Bay was ranked as the fifth best place to buy Real Estate in the country (https://www.moneysense.ca/spend/real-estate/where-to-buy-real-estate-in-canada/ ) with a value score of 3.89, behind the top four of Greater Moncton, New Brunswick, Saint John, New Brunswick, Sault Ste. Marie, Ontario, and Fredericton, New Brunswick. According to the article, “For our 2024 edition of Where to Buy Real Estate in Canada, MoneySense partnered with Zoocasa—an award-winning consumer real estate search platform—to reveal the best places to buy property in Canada, including the top neighbourhoods in the country’s most in-demand real estate markets.”
While it's great to be listed so high in a national ranking, it doesn’t tell the whole story as Kate Ricci says, “It’s a mixed bag.”
“A lot of listing agents are finding it difficult right now to price homes, myself included. It is tough.”
Ricci, who is a realtor with Century 21 Blue Sky Reality Brokerage in North Bay was a recent guest on the podcast “To North Bay with Love” with Lisa Boivin and talked about the ups and downs of buying a home in North Bay in 2024.
“People want a lot for their house, but if you put their house against the market it is not coming out to where they really think it should be. But if you put it to where they think it should be, more often than not, it’s going to sell anyway,” says Ricci adding that comes down to the demand for housing.
“Too many people, not enough houses, and people don’t want to compete. And even if a house is priced, or as we say underlisted, it might get 10 offers and it still goes way above that price.”
Ricci warns that that isn’t always the case.
“There might be something about the house the seller doesn’t see, but the market does see,” says Ricci.
“That could be a busy street, or it doesn’t quite have those really nice finishes. Maybe it needs work in the backyard or it has a leak that needs to be fixed and the buyer just sees that as extra work.”
Ricci says this is where, as a realtor, you have to have patience when working with your clients.
“Buying and selling a home is a major life event and so you need to have patience and have empathy. You don’t know what someone just experienced that day and it is an emotional decision they are making. People are emotionally attached to their homes and they feel it's worth a certain amount of money in their minds, and that’s something I have to respect,” says Ricci.
“Sometimes you have to be a therapist, you have to be able to relate to people and people have to build trust with me and vice versa. At the end of the day, this is their pride and joy and it is their biggest asset and they want to see it going to the right people, or that the right family ends up in their home. Sometimes a letter on offer day can make the difference.”
Ricci says some homeowners feel like their home is worth more in their eyes initially but eventually they can come to the realization that the expectations need to come down a bit.
“There is that odd time where it is listed as where it should be, but the buyers out there are seeing it as it being too much work for that price point. Then no one comes to the table on offer day. All of a sudden, the seller has expectations of selling it for more than it should have been, even though they priced it lower,” says Ricci.
“I really think having a keen eye for those obstacles that buyers see, and pricing accordingly based on those obstacles is a good trick.”
Ricci talked about the growth the city of North Bay is experiencing with new builds which affects those prices.
“North Bay seems to be growing. A lot of new builds are happening, as well as on the outskirts and in areas like East Ferris and Callander. Of course, the big developments are happening up on Airport Hill. The city is expanding new subdivisions there. Sturgeon Falls is also creating a lot of new subdivisions as well, so we’re seeing some exciting activity there,” says Ricci.
“Waterfront property is definitely more than your average lot. The land value is increased by at least $50,000 when compared to other similar properties, sometimes even as much as $100,000, it would depend on the lot and the makeup.”
Ricci has been a realtor for six years now but says she feels like she has been the industry for a lot longer.
My mother was in it for 30 years and so I grew up in the industry. That’s where I went in Grade 9 on Take Your Kid to Work Day. I’ve seen my mother face all kinds of challenges within the industry. There was an instance when she had a duty call and they asked to speak to a man, they didn’t want to talk to a woman, they didn’t think she could do what they were asking of her. She’s definitely broken down some barriers for me and made me feel more comfortable getting into the industry, knowing that I had her support,” says Ricci. “It’s been a cool journey and part of me wishes that I had got into it a bit sooner, but I was ready when I was ready. I’m happy I’m here now.”
Ricci says those happy moments are evident when she helps someone buy their first home, but it can be a long process to get there. She says the first step is making sure you are pre-approved by a lender.
“I did one deal where there was a buyer who said they were pre-approved, and we put in an offer on a house, but little did I know they weren’t actually pre-approved. They sent the bank their T4s and the pay stubs but they did a website pre-approval, and it wasn’t official. That’s an important clarification to make, you have to talk to a lender and make sure you have those numbers in place and make sure that it’s good to go ahead of time,” says Ricci.
She says another piece of advice is to have a home inspection done, especially as a first-time buyer.
“Even if you’re looking at a fairly new build or something that has been recently updated, I would still say for a first-time buyer you should have a home inspection done. Get someone to go through it with you to make sure you understand what everything means. Typically, the first-time buyer doesn’t know very much about what it takes to own a home,” says Ricci.
“Sometimes agents will do their own pre-inspections which are super helpful and you can go through that report ahead of time.”
Ricci says with the market on the higher end, there are other options for current homeowners or prospective homeowners to manage their mortgage payments better.
“If you’re looking at going after something with a lower price point, you’re also looking at possibly doing some work on the house to get it up to where you want it to be, so being prepared to do some of that work when you move in is a good mindset to be in,” says Ricci.
“Another thing to look at is if the property includes a rental option, someone who can live in the basement and can help you pay your mortgage. That’s the way I would suggest first-time buyers look at the market right now. Get something that needs some work, try and do the work yourself, or get something with an income-earning opportunity and help pay down that mortgage. Then you can rent out your portion and buy another house and that is how you build wealth.”
Ricci says that’s what she wants to see people do in North Bay.
“I don’t want them to be afraid of home ownership. This is how you get ahead in the world. If you’re renting, you’re helping someone pay their mortgage. And as much as it is convenient to not have to worry about replacing a hot water tank or a furnace or fixing a leaking roof, those are part of that investment you’re making where you know it’s going into something that is going to give you money later on in life when you go to sell it,” says Ricci.
Ricci says she tries to be upfront on all of this with her clients because “Building loyalty and providing customer service goes a long way in this industry.
She says, “You sell someone a home and hopefully as a realtor you gave them an enjoyable experience and so they come back to you on their next home, or their kids come to you when they are looking for their first home. Maybe it’s another family member or a neighbour, but loyalty and customer service go a long way. Taking care of them and making sure they can depend on you is the number one focus.”
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