Small town real estate surging from pandemic

BY JAY BRIJPAUL

The pandemic impels us to make adjustments, and one of the biggest is working from home. With more people working from home, buyers are moving to small towns. There, the air is fresher, the towns are less crowded and home prices are cheaper. Rural living is slower paced and quieter but buying an out-of-town property requires more diligence.

Families with young children should research the schools in the neighbourhood. Visit the schools and chat with the teachers so that you can get a feel for what your children will experience. While online classes are becoming more prevalent, social interaction is essential. Recently, one of my clients moved back from their out-of-town home because the children did not feel comfortable at the school. It is smart to encourage other friends and family members to move to the same town. This will make it easier to settle in.

A town that is growing is a good place to plant roots. Visit the amenities such as recreation centres, shops and hospitals. These amenities dwindle in small towns and someone may have to travel across town to use them. Since location is key in real estate, settle in an area close to schools, shops and amenities. The property price might be higher compared to homes a little further away, but you will enjoy the amenities and when you are ready to uproot again, buyers will pay premium for your homes.  A trip to the municipal office in the area is insightful.

Look at the major employers in the area. With sustainable employment, the town would generate more revenue. More people would be employed, and the wheel of commerce would spin faster. The cost involved in running the town is split among the employers and homeowners. If there are only a few employers and the population is small, then chances are property taxes will be high and the town will have fewer amenities.

In the GTA, we are spoilt with homes that run on natural gas and we have electricity, water and a sewer system. However, an out-of-town property might have well water and septic systems. It is vital to have these systems checked out. Well water must be tested for bacteria and flow rate. Water samples must be taken over a period of time.  The septic system must be at a lower gradient than the well to prevent contamination. If there is oil heating, then, an environmental assessment might be required by the lender. Make your offer conditional upon inspecting the property. It is important to use a local inspector. Ask the homeowner for the contractors’ information who usually takes care of the well and the septic system. These contractors are helpful.

Buying a home in small town is not “a do it yourself” project. An experienced realtor can assist. Realtors will research the area and look for homes that match your needs. Is it better to use a local realtor or a realtor who is representing the seller? There is no right or wrong answer. A local realtor would know the neighbourhood better. A realtor who represents the seller might be bias when it comes to negotiation and due diligence. A good realtor can make a major difference although they may not be local.

An exit strategy is good to have in the event that things do not work out the way you envision it. As such, always buy what is easy to sell. If you buy premium, you will live in premium and eventually sell premium. Choose a home first by location, then size and then amenities. It is easier to update a bigger home than to extend a smaller one. In small towns, you will have fewer contractors to assist in repairs. The cost for such services will be more and the waiting period longer.

If it is a pre-built, then research the builder. There are some great builders in small towns. However, you will find a few rotten apples. Look at other subdivisions they have already built and approach some of the homeowners. Let them know your intention and ask for advice. Always seek legal advice before finalizing any offers.

While small towns offer a more relaxing lifestyle, it is not for everyone. The big cities are fast paced and have many choices to consider such as universities, hospitals, public transit and recreational facilities. My recommendation is that before uprooting, look at all the options. For example, seniors can sell their home in the city, buy a cheaper home in small town and free up some of their wealth to enjoy retirement.

Buying an out-of-town property has many advantages such as bigger properties, lower price and quieter neighbourhoods. If you are working from home or retiring, then it’s a great option. In a changing world, social distancing is essential. Enjoy the fresh air.