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.

Curious about all the buzz about the new Claridge Homes in the Mer Bleue Conservation area?  Have you been hearing about these homes but haven’t had the chance to get out there yet?  In this piece I will be taking a closer look at this development and giving you an insiders peek at what has been eating up the new home market share in Orleans / Navan.

 First and foremost, I should provide you with the Spring Valley website, which is http://www.claridgehomes.com/Find%20A%20New%20Home/Spring%20Valley%20Trails/index.html .

 Second, a little history…

 In 1971, Bill Malhotra immigrated to Canada and took up jobs as a consulting engineer and then Chief Structural Engineer for the city of Ottawa, where he developed a strong understanding of the local development community. In 1986, Mr. Malhotra built his first home and started the Claridge Homes Group of Companies which now employs more than 150 full-time people and has become a market leader in home building and high-rise property development. Enough History.

Fast forward to today: One of their more recent developments is Spring Valley Trails, located in the Mer Bleue conservation area in Navan.

Entry to this development starts at $231,900.00

One of the major appeals of this area has to be the surrounding environment and its appeal to the outdoor enthusiast. This community is riddled with stunning views, sprawling parklands and walking trails that will attract buyers just as much as the homes themselves will ( don’t worry – I’ve included pictures!)

 Spring Valley Trails has a variety of bungalows, semi-bungalows, singles homes varying frontages to give you as much yard as you desire, semi-detached homes and the ever row-unit townhome models. Between these five housing types, there are up to THIRTY NINE models to choose from, so you can find a great match to suit your personality and lifestyle.

Some of the more popular features and finishes in these homes include:

• Embossed, colonial-style steel sectional, overhead garage door
• Architecturally styled, exterior and brick details as per plan
• Central vacuum system rough-in
• Water saver low-flush toilets
• Pre-moulded or Roman tub in ensuite bathrooms as per brochure
• China sink in all bathroom vanities as per brochure
• Gas burning fireplace as per brochure
• Solid oak handrails and spindles as per plan
• Quality crafter kitchen cabinets and countertops from builders standard samples
• Pre-cast patio stone walkway
• One year warranty with Claridge Homes

It should be noted that the official website boasts over 80 features and finishes in their new homes!

Furthermore, they are offering a special bonus offer on their Semis and Towns that see a fridge, stove, dishwasher, finished basement recroom and gas fireplace (excluding the Avondale model) all included! Singles are offering included hardwood in living/ dining and lower hall area, ceramic in main and ensuite baths and nine foot ceilings!

To get to the Sales office, you can go down Page Road, then right after Navan road you would turn right down Renaud. Alternatively, you can take Mer Bleue down to Renaud and go right as well.

Note: These photos are slightly outdated.

Quick shots of surrounding environment:

Friends of mine who have recently purchased a Claridge home have said the following:

“We chose to buy from Spring Valley Trails because of the amazing location in the rapidly growing area of Orleans. They have gorgeous floor plans, many of which have that open concept which we truly adore. The prices were quite reasonable, and while we chose to purchase some upgrades, the base models were also very attractive and of high quality.”

 Another one said :

“Here are some of the reasons why we bought our Claridge home (which, P.S. we’re moving into in about TWO WEEKS TIME! Eeeeee!)

• Spring Valley Trails offered us great incentives which included hardwood flooring on the main level, ceramic tiles in the kitchen, foyer, and bathrooms, a finished basement, air conditioning, a gas fireplace, and $1250 towards appliances.
• We are outdoor enthusiasts and love the location of this new development. It’s very close to the Mer Bleu Conservation Area and the Navan Township.
• The Trim and Innes (Avalon) areas boast beautiful homes, but we find it much too congested for our liking. Although it will grow, Spring Valley Trails is tucked away from the busy shopping and traffic on Innes Road but still provides great access to everything we need.
• We wanted to buy into Phase 1 of a new development to allow for a greater profit when we sell.”

For more information on Spring Valley Trails, please feel free to contact me at any time! It would be my pleasure to provide you with any kind of information or services that I can.

 I’m here to help!

 All the best,

A good friend of mine wants to sell his condo in the beginning of the new year.

He tells me he wants to catch the ’sales wave’ to make sure he throws his condo in the market at the best possible time, when buyers are out in the masses and he can target the largest and most active market.

I point him to the Ottawa Real Estate Board Sales Statistics, and show him a Trends Analysis for the Ottawa Condo Class…

Here is the wave of activity:

I would advise him to get prepared in January and February, then make his jump in late Feb/early March.

Get it?

On the other side, if you miss the tail end of the Fall wave, you might have to wait for the next one in the Spring!

Cheers

Hi Rob,
Thanks for writing.
You’re area is Fallingbrook/ Ridgemount, which mainly consists of the Pricess Louise Crescent and the smaller crescents that come off of it. Did you know you live right next to Adam and Zeyad Elsaadi?
Here we go…
Within the past 12 months there have been 118 total sales in your direct area.
The top 10 highest selling homes are all on different streets, so there is no real ’sweet spot’ per se. I do notice however, that you have many 4, 5 and 6 bathroom houses!
No real consistency in features either besides two car garages and big yards. Some have incredibly landscaped backyards, very spacious and unique living areas and others have very rich flooring. What this means is that you can play to both your strengths and whatever natural feature your current home has, and really blow the market away with one or two huge selling features. There seems to be no magic upgrade that is doing it for everyone in this area.
Specifically on Briarfield would be a good way to look at things. Maybe I can narrow a valuable trend or two down. Lets see…
9 homes on Briarfield in the past 12 months.
208K to 234K for an average of 221K and 28 days on market on average.
The consistencies I find with the top three on Briarfield are Hardwood floors, excellent paint jobs and one more extra – be it hardwood upstairs, a deck in the back, or a beautifully finished basement.
The bottom three all need a paint makeover! IF YOU HAVE UGLY PAINT in YOUR HOUSE when you TRY to sell – eesh. I will come over and paint it myself if I have to! This is a consistent factor amoung the cheapest houses on your street. The other factor is cheap flooring. Now carpet and laminate arent necessarily bad – but the wrong kind or quite frankly an ugly kind, are bad! If you are making some upgrades and decide to stay on a tight budget – go real heavy on the workmanship and overall appearance.
One thing I noticed – REALLY INTERESTING. No one has upgraded kitchens or bathrooms. Ok, I should quantify that – no one has DRAMATICALLY updated kitchens. Quite often you see some that have stainless steel appliances, or the granite counter tops. NOPE, not here! Looks like you can get away with some average upgrading in those respects (which is weird because they are usually the biggest selling feature). For that matter, if you really want to stand out, maybe you want to be the only one with dramatic upgrades in those areas.

I hope that gave you an idea of what the sales acitivity is like in your area, and what kind of features are getting what kind of response when it comes to buying and selling.

Thanks again for asking,

Cheers

Keep the questions coming folks!

Want an analysis on you’re area? Just ask!

Danniston Crescent and Turnberry Road!

Danniston is off of Wildflower and backs on to the ravine, while Turnberry is just down Wildflower on the other side of Des Epinettes.

What did they have in common BESIDES upgraded kitchens, bathrooms and hardwood floors?

• Hardwood on the main level stairs
• Interlocked and landscaped backyards
• An in-ground pool

 What about the top selling features in other Orleans pockets?

Convent Glen, Chapel Hill, Fallingbrook, Avalon – What do you want to know?

I recently dug into the sales activity in my neighborhood of over 27 years – ORLEANS.

I wanted to look at the most popular housing in my age group – TOWNHOMES.

I identified what price ranges all the activity is happening in – here it is (I plotted it in an MS PAINT graph to make it easier to understand):

As you can see, most of the activity flows around 250K.

Lets say you put 5% down, or $12,500 – your mortgage amount would be $237,500.

Your MORTGAGE PAYMENTS would be around $1,070.00 with todays posted rates from one of my recommended mortgage brokers.

Are you paying more than that in RENT right now? I sure hope not!

You should know, this number does not include payments on  mortgage insurance or property taxes – which you can very well pay seperately.

One last thing – almost all of these towns sold within a 1km radius of Innes and Tenth Line!

Coincidence that this is the kind of house I’ve been helping people buy in that area?

I am where the market needs me to be!

Cheers

Remember my rant about the best things in life being free? Free things like information?

Remember how I said some people would find it scary that I would make this information public to you, since they would rather make it seem like they came with the information themselves, or they would rather bait you with it?

Well, too bad for them…

I want you and everyone to have this information so we can elevate ourselves in terms of our savviness, real estate positioning and subsequent financial success. Let’s all have incredible properties!

Here is a start – INFORMATION. This stuff is actually PUBLIC information – but I doubt any of you know how to access it!

First up – Month over month information. Remember all the buzz about a recession? Lets look at Ottawa activity, month over month since 2003.

See the 2009 months I highlighted? (the ones we have gone through already) On average, ther are not too off from 2008 averages – slightly above in some cases, slightly below in others.

See the decline in 2008 prices from about June to December (in red?) Then our latest few months have indicated an INCREASE!

Now look at a specific batch of years by month. lets look at January for arguments sake (first one). 2003 to 2009 = see the increase? A little over 200 to just under 290 in 6 years!!

These numbers are from the Ottawa Real Estate Board a.k.a the horses mouth – so dont just take my word for it!

Here is another quick one: Year over year since 1996 – so 13 years and a few months

What does that say – about 137.5K to about 268-270K ?

Think about that… if you bought a house for 137.5K ten years ago, you would now have 132K in appreciated equity PLUS whatever the principal went down to over time, PLUS whatever POSITIVE CASH FLOW you would have earned over time as a result of making the most out of your equity in your house (i.e. after 5 years, taking out equity to finance a low maintenance investment property that earns you hundreds of dollars a month IN YOUR JEANS).

Ever feel like wealth is just too far out of reach to even properly imagine? Ever wonder how people have made their fortunes, and dream of having seemingly endless supply of cash to rely on?

I do! All the time! Thats why I got into this business. To build wealth over the long term and to pass that on to my family and future generations.

This is what a fortune looks like in the beginning.

How about over a longer period of time? Here you go! (from an earlier post)

Imagine what kind of Fortunes a 60 or 70 year old person could be leaving his family based on these figures!

Imagine if that person would have properly leveraged themselves in Real Estate and grown their portfolio over time!

Pick yourself up some Real Estate for some of the best rates this country has had in over 50 years!

Bank of Canada will show you the record lows we are experiencing right now – Prime at 2.25%!!!!

CPI (Consumer Price Index – average price increase of a basket of goods) is down to 1.2% while the average wage increase is up to 4.3% this year! Purchasing Power is HUGE right now!!

I’ve given you the information – what are you going to do with it?

You know what really threatens people? INFORMATION.

Information about them, information about where they live, what they do, what language they speak, and what religion they practice.

One would think that we are fortunate enough that by living in Canada, we don’t have to worry about these types of differences causing any kinds of major problems, right?

Now I’m not so ignorant to think that small prejudices don’t exist and won’t impose themselves on people in their everyday lives –but there really isn’t any reason, in my opinion, to want to hide anything.

 As you know, I work in Real Estate. I am blessed to be doing something that I love, with co-workers that are incredibly devoted, and I get to work with people in an exciting time of their lives. One thing that I like to do with my clients – is provide them with INFORMATION. I give them insight into different areas and housing types, specific information and research on certain specific houses, sales history, sales trends, and surrounding sales comparables. Quite often enough, my clients are blown away by the resources that I have at my disposal – and rightly so. I think they are pretty darn powerful myself! After all, in this day and age, privacy is a thing of the past, right? My affiliations within Organized Real Estate (Municipal, Provincial and Federal) give me access to a tremendous amount of information from the Land Registry System, Statistics Canada, Various Boards of Director’s professional opinions, and a seemingly limitless amount of related professionals to tap into (Mortgage Brokers, Lawyers, Home Inspectors, Engineers etc). All of this is INFORMATION – and I am not afraid to give it to you.

 But there are people who are.

 Some people would rather hoard information as to make it seem like they are pulling magic strings and digging up this information from a mixture of expertise, elbow grease and connections in the marketplace. As a matter of fact – my mentor and Broker at Partners Advantage GMAC , Dr.Bruce Firestone, has advocated ‘free information’ for YEARS! On his personal website – www.dramatispersonae.org – he writes: 

 “MIT has taken the position that it will put all of its course outlines, course materials, even examinations on the web for free. The engineers at MIT are among the smartest in the world. They feel confident that this will enhance the MIT experience- essentially; they are saying that they don\’t care if someone on another part of the planet wants to teach a MIT course or use their material. They believe that the spread of knowledge can only benefit humankind. MIT will instead, as my friend Professor Tony Bailletti says, sell the \’delta\’ factor- that is, the opportunity to actually be in a classroom with the creators of the material; to be exposed to their minds; to experience first hand the Socratic method of student/teacher interaction”

 So where am I going with this? Here is my dilemma – I want to give out INFORMATION, and I am a week or two away from doing so. I want to provide my people with relevant information about their housing types in their areas so they can make informed decisions, have accurate opinions, and make good judgments about their own property values. How would you feel if you got a monthly report card in your mailbox that outlined the location and size of sales activity in your neighborhood? I think it would be pretty cool. I think it would not only help people as I described above, but I think it would help stabilize the equilibrium in our Real Estate market – albeit a small effect as it may be. What I mean is – people would not think their property is worth 30K higher or lower that it really is, as they perhaps would have had they not had access to such information I want to provide them with. People just don’t know! And its not their fault. I want to help. If the prices on the marketplace can more accurately reflect what their true market value should be – then the marketplace will be more efficient. People will sell their houses faster, no parties would be getting ‘ripped off’, and all stakeholders would benefit from the transparency and logic of free market influence. What is so scary about that?

As I said earlier – some people would rather protect that information and make it seem like they are the experts that came up with this information on their own, and it is part of their value proposition. Well – it is part of a Realtors value proposition.

 Here is the key – its only PART of my value proposition. A very small part. I would call it a given.

 I am not afraid to make that information available and risk a FSBO (For Sale By Owner) try to sell their homes themselves. I am not afraid of people taking this information and going to another Realtor out there. I am not afraid of other Realtors copying my idea and giving you the information in my place. Why?  Because the information is NOT what makes the difference between me and others. The information is FREE – take it. I want you to be more informed!

 Regardless of who out there has information – I would bet I am in the top 1% of the hardest workers out there in the game. The difference that I bring to the table is I push the limits of effort exerted for my client’s interests. I get out on the street and I work HARD. Part of my business model is to focus on my core competencies and make my own ground rules (within rules and regulations of course) that brings Real Estate activity to a platform where I am king – where I am the new common denominator and I do it best. I wont be part of the rat race and focus on getting the biggest ad in the paper, or getting the nicest pair of shoes to woo my clients. Im not about perception – Im about substance. I believe that people are savvier than ever and can recognize the difference between  style and substance.  A quote that I like is “You can pile on the lettuce and tomatoes and special sauce, but people are looking for the beef, the content that you offer”.

 So that’s my spiel. Style Shmyle. Im young, healthy, I exercise and dress well enough to hold my own in that department – but Im not going to pretend like that is why you should do business with me – because of my style. I don’t have to rely on an image to speak for me. My results speak for themselves.

 So take the information and run with it if you want – I can make it available and I plan on doing it soon – shake things up a little.

 But when you get tired running around between 8-10 different parties at once, trying to navigate legal documents, prepare marketing campaigns and sales strategies, crunch numbers, find and rationalize market data, negotiate price, terms and conditions, all while being at work or at home trying to eat dinner on a Sunday night – and potentially all for someone who is not qualified or experienced enough to hold up their end of the bargain – THEN you might think about getting a hard worker on your side. One that is smart, sharp, and able to get the job done.

 I am one of those people.

New homeowners often find there’s more to keeping up a house than cutting the grass and clearing snow from the driveway.

Tools
To start with, a new homeowner needs to have on hand a ‘basic tool kit’. A number of basic tools are a must C a metal hammer, screwdrivers with a variety of heads, a small saw, electric drill, adjustable wrench, pliers and measuring stick. Sandpaper and an assortment of screws and nails are also very handy. These tools will help with simple repairs such as securing loose tiles, adjusting a door, installing a lock, etc.

Meters
Once you’re equipped to perform the most basic repairs, take a look around. Do you know where your gas/electricity and water meter are located? Usually these are found outside the home by a side or back wall. This makes it easy for the meter reader who can take the readings without bothering you. Sometimes these meters, especially the water meters in older homes, are located indoors — usually in the basement.

As new homeowners, it’s a good idea to check your meters on a weekly or monthly basis. This will help you gain an understanding of seasonal increases and decreases in consumption and enable you to take measures to become more energy/water efficient.

Plumbing
Another area where a little knowledge can go a long way is in the plumbing system. House plumbing is divided into two separate parts. One is the fresh-water system that provides cold and hot water from the various fixtures throughout the house; the other is the drainage system that carries waste out of the house.

The fresh-water system can be completely shut down by closing the main valve, which is usually located in the basement near where the underground water line enters the house. Most lines that branch out from the main line also have individual shut-off valves so water can be turned off to one area without disturbing the flow in another. Most plumbing jobs require at least the partial shut-off of your home’s water supply.

Meanwhile, the drainage system connects all the plumbing fixtures to a main sewer line that carries waste out of the house to a sewer or septic tank. The main sewer line extends above the roof of the house to allow gases to escape. The opening of this pipe, above the roof, is called a vent and must never be covered or allowed to become clogged with debris.

Electrical
Knowledge of your home’s electrical system is also valuable in case you have to turn off all power in case of an emergency, such as a fire. You should know the location of the main electric switch in the house and how to use it. You should also know the location of the fuse box or circuit breaker and how to reset a breaker or replace a fuse in case one blows.

The main switch, along with the circuit breaker panel or fuse box, are located near the electric meter at a point close to where the power lines come into the house. They may be in the basement, utility room, or even the kitchen. The older the home, the more likely it will have a fuse box instead of a circuit breaker panel. Always replace fuses with ones of the same capacity.

Heating
Another important aspect of your new home is its heating system. The more familiar you are with it, the less likely you might find yourself cold on a winter’s day. Heating systems are usually fueled by oil, gas, electricity or wood.

Gas-fired and oil-fired heating systems have burners and should be inspected regularly, usually once a year before the start of the heating season. Gas burners have pilot lights. You should learn to re-light the pilot light on your gas burner in case it ever goes out. You should also know the location of the gas shut-off valve so you can turn off the gas in case the burner doesn’t light or you smell gas escaping.

Heating systems operate in a variety of ways. The better you understand your system, the safer and more efficient you can make it.

Hazards
Fire in a home is a major hazard that all new homeowners should be aware of. Early detection is the key to protecting your family and keeping damage to a minimum. Ensure your home has smoke detectors installed in hallways and bedroom areas. Smoke detectors sound an alarm when smoke is in nearby air, even if there is no intense heat. Ideally, you should have a smoke alarm in each bedroom.

If you have a gas-fired heating system or a fireplace in your home, it’s also a good idea to install carbon monoxide detectors in the bedroom areas. Carbon monoxide is a colorless, odorless, tasteless toxic gas that, at high levels, can cause flu-like symptoms and even death.

While carbon monoxide detectors are not a substitute for proper care and maintenance of your home, they provide a good second line of defense by sounding an alarm when carbon monoxide reaches an unsafe level.

When we purchase a home, most of us want to turn it into a safe and secure haven for our families. The more we know about the home we have purchased, the more efficient and effective we can be.