Homes are getting pretty expensive. Im seeing singles pushing 500K in the East and West ends, and Towns pushing 300K.

why? Pent up demand, low inventory and cheap money.

So what happens to the 2nd larget demographic in Ottawa (25-30years old) in a handfull of years when the market is different?

Picture this: You go out, you buy a nice townhome for 270K, you have a child, a dog  – and you live your life.  Now mortgage rates go up (which they likely will), and if you are on a variable rate mortgage it could be a year – or a fixed , maybe a few years – 5 at most.

The past little while has not been a time of economic expansion for yourself, because you’ve been supporting this new family. So what happens when you have to re-negotiate your rate on a home that you were possibly both over-leveraged into and bought for a premium due to affordable rates?  Now you have an expensive home with an expensive loan. hmmm… HOUSE POOR.

Unfortunately, I think this is going to happen to many people.

Makes me happy for all those people I helped buy homes that seemed to be 15-20K under potential market value, and all the while they could have afforded MUCH more – these people will be alright.

What do I think the answer will be? Green Housing. Eco-friendly developments, and heavy government incentives.

I think people are going to need to move to (relatively) more affordable housing (via $$ incentives) that will present a lower carrying cost to offset the volatilty of mortgage rates over the life of the investment.

Incentives for either a green retrofit or new green builds will be a sensible bailout for Canadian homeowners that have overleveraged themselves during THESE times.

I would think that it might be a wise invesment to get into these kinds of homes by buying stock or even buying these homes pre-construction once plans are released.

New technology and architechtural advancements will combine to give Green living a huge appeal in a coutry like Canada – where the land is already are major source of enjoyment.

Cottage living, ice fishing, skiing, snowboarding, hunting, four wheeling, fishing, hiking, sight seeing - all things Canadians enjoy that come from the land.

The harmony between housing and environment has incredible potential – and my prediction is that we will see this relationship grow tremendously over the next 5 years.

Thoughts?

Postscript:

the LARGEST demographic - our parents (50-65 years old) will be looking for LIFESTYLE living solutions that run with the land. Waterfront retirement resorts or granny flats, functional housing backing onto golf courses and wetlands that will provide them with gorgeous views, opportunities to see wildlife and enjoy peaceful walks. These types of housing, being ECO-friendly, will also provide better air quality, more sunlight and perhaps even community gardens. I would PERSONALLY like to see housing for the elderly that not only do this, but also instead of offering RENT  – perhaps the buildings, resort or immediate community could be a corporation – like a condominum arrangment perhaps – where these people can continue to enjoy the benefits of Real Estate investment, while condo fees support staff and management.  Why pay the corporation when you can BE the corporation?

And if you like this blog, check out a few of my other entries:

http://evansmarc.wordpress.com/2008/09/18/agricultural-innovation-out-of-necessity/

 http://evansmarc.wordpress.com/wp-admin/post.php?action=edit&post=26

http://evansmarc.wordpress.com/wp-admin/post.php?action=edit&post=59

Last time it was too canned from an exercise I had done. It didn’t read correctly and was a little scattered.

I took some stuff out, added a little, and re-organized. It definitely reflect the person I am much better. Here goes.

PERSONAL MISSION STATEMENT

My life’s journey is to establish my family as one that is secured, healthy, wealthy, strong and happy.

I will be a person who believed in something bigger than himself, that there was a purpose behind every day of his life and he never lost sight of it. One who devoted all his time and effort to the betterment of his loved ones and raised the bar for the standards in ethic, passion, determination and drive.

I believe that love, passion and caring are to be guiding forces in life.

I am at my best when I am using my unique skills and traits to help others.

I can do anything I set my mind to.

I will lead by example.

I will find opportunities to use my natural talents and gifts.

I will enjoy my work by finding opportunities where I can help people solve problems.

I will find enjoyment in my personal life by providing security, freedom and pleasure.

I will surround myself with family, and a handful of good friends who share my values.

I will stop procrastinating and start working on:

• Realizing my potential.
• Continuously improve my production capacity and set objectives for production.
• Follow through with action steps – implement the knowledge I have gained.

I will strive to incorporate the following attributes into my life:

• Being the only driver in my life. I choose where, when and how
• Dedicated and devoted to my personal mission
• Becoming a true pioneer, an entrepreneur, and a role model

I will constantly renew myself by focusing on the four dimensions of my life:

• Being physically strong and conditioned.
• Personal Values and Principles that guide the person that I am.
• Focus and Unbreakable Ethic. Determination.
• Living with Passion

I’ve been reading The 7 Habits of Highly Effective People – and I have to say it is one of the best books I’ve ever read. I have read many books through University, and I have read a good half dozen books since I have been out (6 months actually – so about a book a month). What is really hitting me hard about reading all these books, and my ENTIRE University experience for that matter, is that it is all a tremendous waste of time unless you implement what you learn.

To me, that is simply the reality of the situation. And it’s funny, I remember professors and mentors saying it – and I thought “yah yah, is class over yet? is this going to be on the test?” Thats actually pretty terrible! I guess I can chalk that up to just being young and maybe a little bit immature as a result. I could also blame it on the fact that I didn’t really NEED to care about what was being said, I was just supposed to.

Fast forward to the real world – I am running my own business, I am now married and have a few obstacles in front of me until I start having children.  Thats quite the progress – and quite the change of mindset to boot.

So back to the book – the first chapter teaches how YOU are the creator of your own life, and then the second teaches you that your LIFE must be your first creation. Does that make sense? I might not be saying it right. It teaches to begin and live your life with the end in mind. One of the most powerful parts is the very beginning where it asks you to imagine yourself going to a funeral of a loved one. You drive over, get out of your car, see friends and family in sadness, togetherness and reflection. You walk through the funeral home and approach the casket and you see yourself lying there. It is your funeral. You get a copy of the Eulogy and see that there will be four speakers – a family member, a friend, a colleage and a member of your community. What would you like them to say about you? How would you like to be remembered?

I actually wrote it down. This exercise helped me realize what is truly important to me- the ultimate drivers behind my life.

The chapter ends with suggesting you write a personal mission statement, and it provides a link to a website that helps you create one.

www.franklincovey.com  (who’s life story is unreal).

So I built my Personal Mission Statement.

Here goes:

I am at my best when I am using my unique skills and traits to help others.
I will try to prevent times when I shelter myself too much.
I will enjoy my work by finding opportunities where I can help people solve problems.
I will find enjoyment in my personal life by providing security, freedom and pleasure.
I will find opportunities to use my natural talents and gifts such as Ethic, Integrity, Caring for others Welfare, Intelligence, Determination, Focus, Honesty, Sincerity, Creativeness.
I can do anything I set my mind to.

I will focus on enjoyment of life, pursuit of creativity and uplifting challenges.

Unite my team and push towards health, wealth, maturity, responsibility.

Add to the quality of life of my loved ones.
My life’s journey is to establish my family as one that is secured, healthy, wealthy, strong and happy.
I will be a person who believed in something bigger than himself, that there was a purpose behind every day of his life and he never lost sight of it.

One who devoted all his time and effort to the betterment of his loved ones and raised the bar for the standards in ethic, passion, determination and drive.

I will surround myself with family, and a handful of good friends who share my values.
My most important future contribution to others will be security, freedom, strength, land to live and profit from, access to resources and positive mind frame (created by leading by example).

Strength of character and ability will be taught.
I will stop procrastinating and start working on:

• Realizing my potential.
• Continuously improve my production capacity and set objectives for production.
• Follow through with action steps – implement the knowledge I have gained.

I will strive to incorporate the following attributes into my life:

• Choice and Control of circumstances and responses to life. Quality of life is created by self and rests in my hands.
• Consistency and perseverance in application. Devotion.
• Pioneering a family with responsibility and love.

I will constantly renew myself by focusing on the four dimensions of my life:

• Being physically strong and conditioned.
• Personal Values and Principles that guide the person that I am.
• Focus and Unbreakable Ethic. Determination.
• Living with Passion, Experiencing Love and Caring for others.

What’s in your attic? Usually when I have to stick my head up through an attic hatch to inspect the space, I feel a sense of dread. It’s like I’m in a horror movie and there are monsters in the attic. It’s easy to see warning signs of attic problems without going up there — ice dams, roof damage, water dripping from soffit vents, ceiling stains. But just like the guy in the horror movie, I still have to look inside, even though a voice inside my head is saying “Don’t go in there!”

What’s in your attic? If I looked in there, I hope I’d find insulation. I hope there’d be enough vents. I hope I wouldn’t find: mould, wet insulation, dirty insulation, vermiculite insulation and/or no insulation, animal or bird droppings, blocked or non-existent vents, or kitchen and bathroom exhaust fans venting into the attic. But believe me, I’ve found them all.

Of the many problems you can find in an attic, most are caused by inadequate insulation, insufficient ventilation and air movement — and the last one is the most damaging.

You have to have enough insulation in your attic. You really can’t have too much unless you’ve put in so much that you are actually touching the underside of the roof or blocking the venting. Insulation is necessary to prevent or slow the transfer of heat from one area of the house to another — like from your living room into your attic and out the roof. You can use a number of different materials like fibreglass, blown-in cellulose, spray foam, rigid foam, batt insulation, even recycled blue jeans. Insulation will help reduce heat loss, and improve the energy efficiency of your home.

Your attic also must be ventilated. If it isn’t, any moisture or water vapour that is present in the space can lead to serious problems, like mould or rot. A lot of moisture from everyday living — from showers, laundry, doing the dishes — will rise into the attic along with the warm air by which it’s carried. Once there, condensation will occur.

Condensation can soak your attic insulation, destroying its effectiveness. In winter, the warm, moist air sneaks into the attic, where it’s cold or freezing, and frost forms on the underside of the roof. Sometimes homeowners have what they think is a leak in the roof, because there’s moisture or staining on the ceiling of the room below. There may be mould on the underside of the roof sheathing, rafters, or trusses. The plywood sheathing may rot out altogether in time.

You definitely need roof vents — either soffit vents (make sure they aren’t covered by insulation), a ridge vent, or a turbo vent. All vents should have screens to prevent wildlife from getting inside. Check with a professional roofer for how many vents you need, given your roof’s size.

Roof vents move hundreds of cubic feet of hot air and moisture out of the attic.

But, if you do have condensation problems in the attic, increasing ventilation by adding more vents might not be the answer. Too much venting will suck even more warm, moist air out of your living space and into your attic where not only are you wasting heat, you are creating more condensation.

The most important thing to do to prevent attic problems is to properly seal the attic and prevent air movement between the warm and cold zones of your house. If you prevent the warm, moist air from flowing into the attic where it will inevitably condense, you likely won’t see problems with moisture and mould.

Air leakage is the cause of ice dams — one of the biggest problems I see with roofs in the winter months. When the temperature outside is below freezing, the top surface of your roof is cold (as it should be) and snow that falls stays on the roof.

But if warm air leaks into your attic, it will melt the snow from the underside. That creates a runoff that will refreeze further down the roof close to the eaves. This melting and refreezing will eventually build up to an ice dam, which can create a lot of damage as melted snow and ice find their way up behind the roof shingles, into your attic and possibly into your living space.

 

Original Source:  http://homes.winnipegfreepress.com/index.php?action=news&step=article&id=1106

Yes I’m going there. Why? Because it’s a touchy subject and a lot of people have a hard time with it. More importantly however, the likelihood of me getting or loosing a client because of this blog is minimal, but the likelihood of this blog doing a lot of good for all of you out in cyberspace is GREAT. So let’s give it a shot, entertain some friendly debate and come to some conclusions.

When I first started in this industry, a lot of my first clients were friends. There was a little bit of potential energy building around me because I was just graduating, getting married, and yes – my Real Estate license. So a fair amount of people were seeing me quite often and on good terms – so the idea of having me help them buy or sell came into my sphere of influence’s head more so than otherwise. Bing Bang Boom, few deals here and a few deals there – and I had learned a tremendous amount in a very little span of time.

I was able to help some of my friends get some incredible homes, in great neighbourhoods, and for a bargain. I’m talking about homes that were 10% under what was the perceived market value, and sometimes more. I found unique units, perfect combination of features, and coordinated the whole shebang to a T.

Some of my other friends pulled a 180 on me, and used my services for a while (one was two weeks, and another FOUR months for example), and then for some reason distanced themselves and ended up getting a backdoor deal done through someone else! I was really mad about it at the time, and to be honest I think I am still a little bitter, but like I have said time and time again – when something goes wrong, look in the mirror for the solution. There is nothing wrong with not getting the deal, as long as you learn from it – and here is what I have learned:

 

1. Friends and Business blurs the line between a business and friend relationship, and you have to put extra attention into making them as distinct as possible.  When you go out with your friends to dinner or over for some drinks – don’t be a douche and talk work the whole time. I’ve done it once or twice (because I love what I do, and people naturally are always asking about the industry), and it kind of steals from the friendship moment and turns it into a conference. Now the same goes the other way – and this is what is important. When you are WORKING for a friend, don’t be their friend the whole time, and be the Business Professional they respect and were hoping to engage. If you smell something funny in a house, or see something strange – save the stupid jokes for after hours when a good meal, drinks and hindsight go hand in hand. What you run the risk of doing is turning the work time into a hang out session, which again, blurs the lines.
2. Its OK not to get friends business. Do I want it? More than anything! That’s why I got into this industry – to HELP and do incredible work – who better for than the ones I like the most? So far it has gone well every time with my friends and I always feel like I am top of a mountain afterwards. Do I expect it? No, I don’t. And you can’t.  Friends have hesitations about using friends for business. They have other friends or family members that might be able to help, or maybe they want to do the job themselves – and that’s OK.  It’s a fact of the matter that you will not get 100% of your friends business, and you are just going to have to learn to roll with it. If you can’t – your career will suffer. This is a business of thick hides, and those that have thin ones will get burned very quickly and end up leaving. If you begin to alienate the people closest to you in your life then all other aspects in your life will suffer. Here is my trick: Treat your friends as your SUPPORT GROUP – not your client base. While they certainly CAN be a source of business, you should look to your friends for mutual support. They will be able to give you honest criticisms, advice and yes – referrals. Who better to help you build your business than your support group! This actually reminds me of a story a good friend of mine told me in high school. This girl was a very good friend of mine, so much that we would hang out all the time, talk on the phone all the time, and even take the same classes together. Now despite the fact that she was very beautiful, this was a strictly plutonic relationship – and I learned from it! I remember one day she found out that another good guy friend of hers was only friends with her because he wanted something ELSE from her (wink wink). She was so upset because this whole time this guy had perpetrated to be a good friend when all he wanted was to get in her pants. DON’T BE THAT PERSON. If you are only friends with people to get into their WALLETS – then you will come across as a perpetrator and alienate these people.
3. I am a RESOURCE – not a one-stop-shop of an answer for the problem of the day. What I mean is, my services are many, my services are unique, and my services cover a wide range of areas. If you treat yourself like a resource then you will start to open up opportunites for yourself and for your friends that you did not see before, and you will learn that you can help every single one of your friends without having to make them CHOOSE you, but rather, go THROUGH you. Going through you can be consultation, advice, opinions, a DEAL, direction, information, referrals to other professionals – whatever. Be dynamic, be valuable and be relevant – you will see that there are many ways that you can help, and they don’t all include your exclusive services.
4. Other ways to get business. Now for you Realtors reading this, you might be thinking: “But what about making any money?” Ever heard of referrals? If your friend doesn’t want to use you – refer them to someone they will use and get a referral cut! Take the high road and make sure they get the best agency possible! Maybe you can refer them to another professional for a client down the road. Maybe you can just HELP your friend (crazy concept, isn’t it?) and be the really nice guy that made it all go smooth and who happens to be available to that friend’s OTHER friends and family should they want to engage you for a full commitment!  

 

My philosophy: Chase good business, not paycheques. Why? Because good business will go much further than your next paycheques will.

 Thoughts?

September 22, 2009 Niagara Fallsview Casino Resort, Niagara Falls, Ontario – Toronto’s popular high rise builder Tridel, captured top honours when it was named 2009 Ontario Home Builder of the Year by the Ontario Home Builders’ Association. The award highlights the home building company that sets the standard for the rest of the industry through its leadership in improving the overall image of the industry. The award is presented to the company that demonstrates the highest levels of performance based on surveys from home buyers along with stringent judging criteria in the areas of sales and marketing excellence, unique floor plan design, community service, support of the industry and its ability to adapt to changing needs. Ontario Home Builder of the Year is among 29 categories in the OHBA Awards of Distinction program which honours innovation and excellence in the areas of design and sales and marketing.

 The 2009 Ontario GREEN Builder of the Year was presented to Durham Custom Homes of Oshawa who clearly demonstrated that it is possible to take an enthusiastic environmental approach and apply it to all facets of their company. Judges of this highly sought after award included representatives from Canada Mortgage and Housing Corporation, Tarion Warranty Corporation, the Consumers’ Association and the Ministry of Municipal Affairs and Housing, as well as Ontario’s former Chief Energy Conservation Officer, Peter Love .

The following companies took home first place awards in 2009:

ARCHITECTURAL DESIGN:

Most Outstanding Production Built Home – 1 storey up to 1900 sqft.: Geerstma Homes Ltd., for Grandview Estates – “The Grandhaven”, Quinte West

Most Outstanding Production Built Home – two storey up to 2500 sqft.: Brookfield Homes, for The Village –“Hillebrand with Optional Loft”, Niagara-on-the-Lake (credit to: Viljoen Architect)

Most Outstanding Production Built Home – two storey 2500 sqft. and over: Reid’s Heritage Homes, for The Residences of Cobble Beach – “The Winthrop”, Owen Sound

Most Outstanding Custom Home – under 2500 sqft.: Oke Woodsmith Building Systems, for “Finch”, Lambton Shores

Most Outstanding Custom Home – 2500 – 5000 sqft.: Christopher Simmonds Architect Inc., for “Arbour Court”, Gloucester (credit to: Lorenzo and Emily Nicolini)

Most Outstanding Custom Home – 5000 sqft. and over: Teddington Homes, for “134 Riverview”, Toronto (credit to: Ray Murakami – Architect; Anne Johnston – Interior Designer; Reza Hosseinian – Builder)

Most Outstanding Attached Multi-Unit Home – semi/town home/stacked: Christoper Simmonds Architect Inc., for “95 Riverdale”, Ottawa (credit to: Guy Robinette)

Most Outstanding High Rise Building: Amexon Development Corporation, for South Beach Condos + Lofts, Phase One, Toronto (credit to: II by IV Design Associates, Arsenault Architects)

Most Outstanding High Rise Condo Suite: Aspen Ridge Homes, for Scenic on Eglinton – “Suite J” , Toronto (credit to: Page + Steele Architects)

Most Outstanding Home Renovation: Oke Woodsmith Building Systems, for “Arnold Crescent”, Bluewater

ROOM DESIGN:

Most Outstanding Kitchen: Christopher Simmons Architect Inc., for “Kenwood Residence”, Ottawa (credit to: BCR Woodworking)

Most Outstanding Bathroom: Landmart Homes, for Bel Air- “The Clara”, Ancaster (credit to: Hampton Kitchens, Ruth O”Neil Inc, McConnell Plumbing & Heating))

COMPANY IMAGE & ADVERSTING:

Best Internet Website: Amicone, for Bob Lo – www.boblo.ca (credit to: Gerry Ryan. G. Ryan Design)

Best TV or On-site Video/Digital Presentation: TAS DesignBuild, for Giraffe Condominiums, Toronto (credit to: Zerofractal Studio)

Best High Rise Ad Campaign: Monarch Corporation., for Couture, The Condominium, Toronto (credit to: The Brand Factory Advertising & Design)

Best Low Rise Ad Campaign: Branthaven Homes, for BeachHouse, Burlington

Best Project Logo Branding: Bazis International, for Emerald Park, Toronto (credit to: Gerry Ryan, G. Ryan Design.)

Best Project Sales Brochure – Low Rise: Branthaven Homes, for BeachHouse, Burlington

Best Project Sales Brochure – High Rise: Empire Communities, for Fly Condos, Toronto (credit to: Montana Steele Advertising)

ON-SITE SALES PRESENTATION :

Best new Home Sales Office – under 1500 sqft: Devonleigh Homes Inc., for Brownley Meadows, Angus (credit to: Lawlor & Company)

Best new Home Sales Office – 1500 sqft and over: Lanterra Developments, for ICE Condominiums at York Centre, Toronto (credit to: Munge Leung Design Associates, Montana Steele Advertising)

Best Design Centre Remington Homes, for The Design Studio by Remington, Markham (credit to: Watt International Inc. Andrew Gallici)

Best Interior Decorating – Model Home/Suite – under 2000 sqft.: Amexon, for South Beach Condos + Lofts, Phase One – “The Delano”, Toronto (credit to: II by IV Design Associates, project3sixty.ca, Euroline Appliances)

Best Interior Decorating – Model Home/Suite – 2000 sqft. and over: HUSH, for Estates of Olde Meadowvale Village – “Reading”, Mississauga (credit to: In2ition Design Division, In2ition Marketing Insights)

PRESTIGE AWARDS:

2009 Product of the Year – non builder: EnerQuality Corporation, for GreenHouse™ Certified Construction, Toronto

Project of the Year – Low Rise: Brookfield Homes, for The Village, Niagara-on-the-Lake (credit to: Duany, Plater-Zyberk & Company, The MBTW Group, and Watchorn Architect Inc.)

Project of the Year – High Rise: Aspen Ridge Homes, for Scenic on Eglinton, Toronto (credit to: Page + Steele Architects, Mike Niven Interior Design, the Brand Factory)

2009 Ontario GREEN Builder of the Year Durham Custom Homes, Oshawa

2009 Ontario Home Builder of the Year: Tridel, Toronto

It was a little less than a year ago that the global financial crisis began to hit home, which is to say that mortgage rates spiked higher. Now, the cost of mortgages is coming down. If you’re buying a home or renewing a mortgage, it’s time to review your options. Fixed-rate mortgages declined a little last week, but the most dramatic changes can be seen in variable-rate mortgages. For the first time in almost a year, it’s possible to get a variable-rate mortgage at the prime rate used by most major financial institutions, which is currently 2.25 per cent.

Pre-crisis, variable-rate mortgages came with discounts that ranged from 0.75 percentage points to as much as 0.9 points off prime. By late last fall, crisis conditions prompted lenders to start charging prime plus a full percentage point or more. Now, some lenders are starting to unwind their crisis-rate premiums.

“Variable-rate mortgages are all over the map right now,” said Gary Siegle, regional manager with the mortgage brokerage firm Invis Inc. in Calgary. “We’re seeing them right in the area of prime with some lenders.”

An example of a variable-rate mortgage at prime: ResMor Trust, a small player that deals through mortgage brokers, is offering four-year variable-rate mortgages at prime in all provinces except Quebec. The catch: You have to have your mortgage approved by Sept. 30 and close the purchase within 45 days.

Can variable-rate mortgages fall back to their pre-crisis lows any time soon?

“Definitely, 100 per cent, no,” said Robert McLister, a mortgage broker and author of the Canadian Mortgage Trends blog (canadianmortgagetrends.com). “Could they get a little below prime? Definitely.”

Okay, it’s strategy time. With prime at 2.25 per cent and fully discounted five-year fixed-rate mortgages going for something in the area of 3.9 to 4.1 per cent, you’re got some thinking to do if you’re buying a home or renewing a mortgage.

The variable rate looks tempting. Sure, the prime is going to rise in the medium term, but it’s expected to stay put until next spring at least. Even when prime does move higher, it will have to increase by roughly 1.75 percentage points to get to where today’s five-year mortgages are.

“The risk is obviously that rates go up a lot more,” Mr. McLister warned. “Rates went down four percentage points from December, 2007, through April, 2009. They could easily go up four – why not?”

Variable-rate mortgages allow you to lock into a fixed-rate mortgage, so there’s no reason why you have to ride interest rates all the way up. Still, you have to recognize that fixed-rate mortgages could be significantly more expensive by the time you decide to lock in.

An academic study of rates between 1950 and 2007 found variable-rate mortgages were the money-saving choice over five-year fixed-rate mortgages 89 per cent of the time. If you’re willing to ride rates higher for a while in hopes of longer-term savings on interest costs, then consider a possible approach suggested by Mr. McLister.

Instead of arranging a variable-rate mortgage now, go for a one-year fixed-rate mortgage. Then, when you’re renewing in one year’s time, you’ll move into a variable-rate mortgage that will ideally have a rate that is discounted below prime.

Fully discounted one-year closed mortgages today go for about 2.55 per cent, so you’re not paying much of a penalty at all compared with what variable-rate mortgages are pegged at right now.

Another suggestion from Mr. McLister is to consider a three-year mortgage, which offers an attractive blend of low rates and security against interest rate surges. Three-year mortgage typically go for around 3.39 per cent on a fully discounted basis, but he knew of one small lender offering 2.9 per cent through the mortgage broker channel.

The case for going with a five-year fixed rate is that rates are very cheap by historical standards. Rates were a little bit lower last spring, but they’re not as high as they were a month or two ago thanks to a pullback in bond yields that has trickled down to fixed-rate mortgages.

Mr. Siegle said over half of his firm’s clients are locking into a fixed-rate mortgage right now. “You can’t ever time the bottom of the market, but are these good rates that you can be comfortable with? A lot of people are saying, ‘yeah, they are.’ “

Source: http://v1.theglobeandmail.com/servlet/story/LAC.20090915.RCARRICK15ART1924/TPStory/TPBusiness/#

When representing a Buyer I often get asked, “Is your commission negotiable?” Quite often, my reply is, “Well, anything is negotiable – but my bottom line does not move, I’m sorry.”

How rude.

Really?

The way I see it, and I am confident that any good Realtor sees it – is that they are worth something. My time is worth something, so is my effort and my results. But enough about me – what about the client?

How does a discounted commission effect the people whom we represent? For one – Buyers signed up under Buyer Agency Agreements (BAA) have me and my entire brokerage behind them finding them the best deal possible. In this BAA we talk about big bad commission and how much money we are going to make by doing all of this work. Quite often enough, the commission is set at 2.5%. I let my buyers know that in the event that the listing end is NOT offering 2.5% to my brokerage, then they will be responsible for the difference up to the stated amount (i.e. Listing offering 1.5% and Buyers agree my brokerage should get 2.5% – the BUYERS will pay the 1% deficiency). I also tell my buyers that there will be a deficiency BEFORE the offer is made, and that they may have to pay themselves. So what do they do? What would you do? Let say the offer price is $250,000 and you now realize you will have to pay me a $1000 shortfall. What would you do? Just as I thought – you would offer $249,000 and pay me. So who’s pocket does the money come out of? RIGHT! – the SELLERS (they got $1000 less in their pocket, and the Buyers still paid the regular price in the end).

So tell me – why are sellers only offering 1.5% up when the offers coming in are going to be 1% less to make up the difference?

What’s worse is that it is possible that these Sellers who are not offering a fair commission to cooperating brokerages, are not getting fair exposure to buyers because other Salespersons may be hesitant to show properties that aren’t paying! These Sellers are often seen as headaches to a lot of people (sorry to say, but Im being honest) – when it doesn’t even make a difference to how much $$ is involved! Why make yourself a headache for no reason? Why put a big X on your forehead for NO REASON?

So the money comes out of the SELLERS pocket regardless, and now the seller is hurting their chances of getting the BEST kinds of Buyers in to their house (qualified by buyer agents aka they HAVE MONEY), AND they have set the stage for a potential deal with two picky and unhappy parties. Who wins? The sellers don’t, I know that much.

So what about the Seller that has a Professional Real Estate Salesperson list their home for them and who agrees to take a hit on their commission to get the business?

To this Seller I have one question: Do you REALLY want a Salesperson to price, list, negotiate, and close on your home – one of the biggest investments in YOUR life (not theirs), one that is supposed to represent your best interests and fight for you and your bottom line – if they can’t represent their own best interests properly, fight for themselves or their own bottom line? Do you? What if I told you this discount commission you are ‘saving’ is actually coming out of your pocket REGARDLESS in the form of a % difference on incoming offers to pay the buyer agent? WHAT IF the salesperson employed is giving you a certain % of their effort for your certain % of pay?

You shouldn’t want that. You should want a strong, smart, resourceful and determined Salesperson that will not only stand up for themselves, but stand up for YOU and YOUR INVESTMENT and YOUR MONEY.

I wouldn’t hire a discount army to defend my country and I wouldn’t hire a discount doctor to look after my loved ones. I don’t even want a discount dry cleaner to clean my suits for Pete’s sake! Why would anyone want a discount Realtor to represent them with hundreds of thousands of dollars in the balance?

Do a good job, deliver what you said you would, and make me happy and you will get my business.

This country was founded on hard work that relied on honourable businessmen with integrity and an unbreakable work ethic. When my grandfathers were working in the bush and risking their lives to feed their families, or working with the military to rescue my relatives from abroad – they did so with by being strong, prepared, qualified, honest, smart, determined, and hard working.

 As they were – so am I.

I will not negotiate my bottom line, and I will not negotiate yours.

PRICE – Pricing the Home – MOST MONEY POSSIBLE

• Know exact Value (Past Trends and Comparables)
• Know Acceptable Mark-up (Street Specific)
• Price to Situation (Low if you need to sell, higher end all else)
• Do NOT overprice (worst thing you can do)

EXPOSURE – Marketing the Home – BEST ODDS OF MOST MONEY

• De-Clutter and Stage
• Signage (Front Lawn + Directional’s)
• Print Advertising (Magazine, Newspapers)
• Website Advertising
• Local Advertising (Flyers, Feature Sheets in local stores)

QUALIFY – Qualified Buyers – BRING MONEY TO THE TABLE

• Make sure they have been pre-approved
• Verify personal circumstances to make sure they can act and aren’t wasting your valuable time
• If they are working with a Realtor, you can be assured they are qualified

NEGOTIATE – Watch bottom line – KEEP MONEY IN YOUR POCKET

• Remember your pricing strategy and stick to your guns
• Play the Buyer’s role and try to identify your own weaknesses
  • Deal with them before the Buyers do

CLOSING – Secure it – FOLLOW MONEY TO YOUR BANK ACCOUNT

• Contracts, Clauses and Conditions
• Schedule Conditions and Manage them
• Be diligent until deal is tendered

 

Be smart, be prepared, work hard and a Profitable Sale can be made – I do it all the time.

To get you started, I would be glad to offer you some of the basic sales statistics in your area to give you a better idea of how to price your home– no obligation.

If at any time you would like to hear how I can significantly increase the odds of bringing good money to the table, keep it in your pocket and make sure it gets to your bank account – please do not hesitate to ask me. It’s my job and I am very good at what I do.

One of the most useful qualities a great Realtor can have is being RESOURCEFUL. That being said – here is one of my greatest resources : The Real Estate Residential Newsletter. If you are a Realtor and you are reading this – you’re welcome! If you are a regular civilian like I suspect ( ) then you will find this little gem very handy when trying to figure out how you’re life is fitting into this big Real Estate game. Make no mistake – you are involved, whether you realize it or not.

Here it is!

http://www.renx.ca/Residential/index.html 

Happy Learning!