April 2017 by Real Estate Magazine (REM)

Issue #334

April 2017

OREA proposes sweeping changes to governance Page 3

Bea Smith’s wild ride

Canada Post Publications Mail Agreement No. 42218523 - Return undeliverable Canadian addresses to 2255B Queen St. E., #1178, Toronto ON M4E 1G3

Page 8

Discounted commissions changing the industry Page 34

Sutton Group’s

Drew Keddy on the brand’s growth plans

Page 10

CONGRATULATIONS TO OUR 2016 TOP ACHIEVERS! AS AWARDED IN LAS VEGAS, FEBRUARY 26, 2017.

EDITH CHAN RE/MAX Masters Realty, West Vancouver, BC

• Western Canada & *Canada wide – Top Individual – Residential • *Worldwide – Top Individual – Residential & Commercial combined

KEITH UNGER RE/MAX Performance Realty, Steinbach, MB

• Western Canada – Top Team, Manitoba - Transactions

TED CAWKWELL RE/MAX Saskatoon (Downtown), Saskatoon, SK

• Western Canada – Top Commercial (Team & Individual combined)

KEVIN MOIST RE/MAX Performance Realty, Winnipeg, MB

• Western Canada – Top Individual, Manitoba - Transactions

JUSTIN HAVRE RE/MAX First, Calgary, AB

• Western Canada – Top Team, Overall – Residential • Western Canada – Top Team, Alberta – Transactions • *Canada wide – Fifth Place – Team - Residential

RE/MAX Performance Realty, Winnipeg, MB

• Broker Owner: Tom Fulton, Eric Joseph (Pictured: Tom Fulton) • Western Canada – Top Ofﬁce, Manitoba - Transactions

RE/MAX Ocean Paciﬁc Realty, Comox, BC

RE/MAX Real Estate (Central), Calgary, AB

Broker Owner: Dave Procter • Western Canada – Top Ofﬁce, Low Density Overall – Transactions • *Canada wide – Top Ofﬁce, Small Market - Transactions

• Broker Owner: Pat Hare (Pictured: Nick Profeta, Manager) • Western Canada – Top Office, Overall – Transactions • Western Canada – Top Office, Alberta – Transactions • *Canada wide & *Worldwide – Top Office, Metro Market – Transactions • *Canada wide & *Worldwide – Largest Single Office

TIM WALSH RE/MAX Fort McMurray, Fort McMurray, AB

GLEN DAROUGH RE/MAX RHC Realty, Nelson, BC

• Western Canada – Robert H. Cherot

• Western Canada – Broker Owner of the Year, Low Density

RONNI LISTER RE/MAX Ocean Pacific Realty, Courtenay, BC

RE/MAX KELOWNA, Kelowna, BC

• Western Canada – Top Individual, BC – Transactions

• Broker Owners: Jerry Redman, Peter Kirk, Cliff Shillington (Pictured: Jerry Redman) • Western Canada – Top Ofﬁce, BC – Transactions

FARHAN GILANI, JIMMY DIEP RE/MAX iREALTY Innovations, Calgary, AB

DEBORAH MOORE RE/MAX in Penticton, Summerland & Osoyoos, BC

• Western Canada & *Canada wide – Broker Owner of the Year, Single Ofﬁce

• Western Canada – Broker Owner of the Year, Multi Ofﬁce

ALSO AWARDED CHILDREN’S MIRACLE NETWORK AWARDS TOP OFFICE DONATIONS TO EACH FOUNDATION:

MICHAEL THORNE RE/MAX Little Oak Realty, Fort Langley, BC

• Western Canada – Special Service Award

SCOTT PREDENCHUK RE/MAX Crown Real Estate (North), Regina, SK

• Western Canada – Spirit of the West

CHRISTIAN TWOMEY RE/MAX Landan Real Estate, Calgary, AB

• Western Canada – Community Care

SHELLEY WOODIN RE/MAX Select Properties, Vancouver, BC

• Western Canada – Administrator of the Year

WINNERS NOT PRESENT: ADAM SCHMALZ

RE/MAX P.A. Realty, Prince Albert, SK • Western Canada – Top Individual, Saskatchewan - Transactions

DEANNA HORN

RE/MAX Treeland Realty, Langley, BC • Western Canada – Special Services Award

RE/MAX SASKATOON (EAST), SASKATOON, SK Broker Owner: Larry Stewart • Western Canada – Top Ofﬁce, Saskatchewan – Transactions

DORIS BROESKY RE/MAX Performance Realty, Steinbach, MB

BRYAN LOGEL

RE/MAX Real Estate (Central), Calgary, AB • Western Canada – Top Individual, Overall – Transactions • Western Canada – Top Individual, Alberta - Transactions

FRASER ELLIOTT

ALBERTA CHILDREN’S HOSPITAL FOUNDATION RE/MAX First, Calgary, AB Broker Owner: Rick Campos

THE CHILDREN’S HOSPITAL FOUNDATION OF MANITOBA RE/MAX Professionals, Winnipeg, MB Broker Owner: Stan Newman

BC CHILDREN’S HOSPITAL FOUNDATION RE/MAX Kelowna, Kelowna, BC Broker Owners: Cliff Shillington, Jerry Redman and Peter Kirk

CHILDREN’S HOSPITAL FOUNDATION OF SASKATCHEWAN RE/MAX Crown Real Estate (North), Regina, SK Broker Owners: Gary Cossette, Rob Nisbett

STOLLERY CHILDREN’S HOSPITAL FOUNDATION RE/MAX River City, Edmonton, AB Broker Owner: Shami Sandhu

RE/MAX Progroup Realty, Delta, BC • Western Canada – Top Team, Overall – Transactions • Western Canada – Top Team, BC – Transactions • *Canada wide – Seventh Place – Team Residential

• Western Canada – Administrator of the Year

JOYCE TOURNEY RE/MAX Crown Real Estate - North, Regina, SK

•Western Canada – Top Team, Saskatchewan – Transactions

NICK PROFETA RE/MAX Real Estate (Central), Calgary, AB

• Western Canada – Manager of the Year

* AS AWARDED AT RE/MAX R4 BETWEEN FEBRUARY 27 AND MARCH 2 PETE VANDERHAM, RE/MAX Medalta Real Estate, Medicine Hat, AB

• *Canada wide – Top Team – Commercial • *Network wide – Second Place – Team – Commercial

RE/MAX WESTCOAST, Vancouver, BC

TOP OFFICE OVERALL:

• Broker Owners: Allison Cimoszko, Richard Laurendeau, Cory Raven • *Canada wide & *Worldwide – Top Ofﬁce, Single Ofﬁce – Sales Volume

RE/MAX FIRST, Calgary, AB Broker Owner: Rick Campos

RE/MAX CREST REALTY, Vancouver, BC • Broker Owners: Kevin Li, Deborah Upton • *Canada wide & *Worldwide – Top Ofﬁce, Multi Ofﬁce – Sales Volume

RE/MAX OF WESTERN CANADA • *Canada wide – Top donations to Children’s Miracle Network

For the complete list of winners, please visit the remax.ca media newsroom.

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REM APRIL 2017 3

OREA proposes sweeping changes to governance In the face of increasing challenges to the industry, members will vote on proposals that would streamline operations, improve transparency and come up with a plan for the future. By Susan Doran

he Ontario Real Estate Association (OREA) is proposing a series of sweeping governance changes designed to bring more transparency and accountability to its members, says association immediate past president Ray Ferris. Among the changes being proposed to help streamline operations and engage OREA members more meaningfully, are: • decreasing the size of the Board of Directors and the number of committees; • reducing the number of regions; • moving toward more skillbased representation; • adding a couple of independent advisors (non-members) to the board; • moving away from the current Assembly model and replacing it with a more traditional Annual General Meeting with voting open to all members; • providing more comprehensive disclosures on OREA strategy and performance; • clarifying OREA services to avoid service overlap with other boards; • clarifying the division of responsibilities between management staff and the board; and • developing a comprehensive

long-term strategic plan. “These changes will result in an OREA that is transparent and accountable to its members . . . including communications with members on strategic and board priorities and performance, along with accountability on financial matters,” says Ferris. “(This will engender) a better way for individual voices to be heard – through real engagement with a broad cross section of members, rather than a ‘token voice’ at the board table.” Ferris says a lot of support for the changes was evident during the 2017 annual conference in Toronto. “We’re extremely pleased with how Governance Day went. Our members came fully engaged and we see there is an appetite for change. We’ll now take what we’ve heard and start moving forward on building a stronger association for our members.’ Ferris says that he is proud of the fact that every real estate professional in Ontario has been given the opportunity to “have their say” during what the organization terms a “no holds barred” review. The next step is to draft amendments, which will be put to a vote at a special general meeting in the fall. Some of the changes proposed could be put into effect

“The issues faced by Realtors and OREA today are increasingly complex and potentially threatening to the real estate profession as we know it,” says Ferris.

quickly, but others will take time and will need to be phased in. OREA represents close to 70,000 brokers and salespeople and 40 member boards across the province. The organization acknowledges that it is at a crossroads and needs to change in order to navigate changing dynamics for the industry, including: • the increasing empowerment and demands of consumers; • member tensions such as perceived imbalances of influence between large and small member boards (for example, the Toronto Real Estate Board has expressed concerns that it is under-represented based on its membership numbers); • challenges levied under the Competition Act; • negative media exposure that erodes the reputation of real estate professionals; • the impact that the loss of self-regulation in British Columbia could have on the real estate industry as a whole; and • challenges around service overlaps and evolving relationships with other organizations. Also looming over OREA, as reported previously by REM, is that OREA will no longer be the licensing education provider after 2020. Sources say the Real Estate Council of Ontario (RECO) has chosen a different provider to take over licensing education. With a confidentiality agreement currently in place, OREA declined to comment on the issue. RECO’s senior communications officer Adam Hawkins says the selection process “is still ongoing.” According to the 100+ page governance review report that OREA recently commissioned from consultant Watson Advisors, the OREA Real Estate College employs over 100 staff and is the source of two-thirds of OREA’s annual revenue.

Ray Ferris

By any measure, that’s a whopping percentage. As the Watson report notes, if OREA does indeed lose the RECO education contract, it would be a significant change that “would impact staff, members and the association’s future direction.” An important question in any discussion of OREA’s future is what sets it apart – why is OREA needed at all when there are local boards across the province as well as the national organization? “Just as local real estate boards are often best equipped to provide local services to their members, OREA provides products and services of provincial significance to Ontario Realtors,” says Ferris. “A major service such as a high impact provincial advocacy is naturally best served by the provincial association.”

Ferris says that “OREA scored what is probably its biggest government relations win in our association’s history, by stopping the spread of the municipal land transfer tax across Ontario.” He says OREA also produces standardized forms and tools used in Ontario real estate transactions, and offers a set of standard clauses that are “invaluable tools for enhancing professionalism.” Ferris says the proposed governance changes “will allow for more nimble decision making facilitated by more streamlined and efficient governance processes and structures. These changes will foster a culture of continuous improvement in board performance, reflect current ‘good governance’ practices, and work to improve clarity and formality with respect to the division of responsibilities between management and the board of directors.” He says, “The issues faced by Realtors and OREA today are increasingly complex and potentially threatening to the real estate profession as we know it. It is essential that OREA be able to navigate the changing dynamics in the real estate industry to best serve its members. For this to happen, change is necessary.” REM

4 REM APRIL 2017

Multiple Listings By Jim Adair, REM Editor

Do you have news to share with Canada’s real estate community? Let REM know about it! Email: jim@remonline.com

uebec City’s Blanc & Noir real estate agency recently affiliated with the Royal LePage network and will now operate as Royal LePage Blanc & Noir. The agency is managed by Isabelle Parent and Dave Carter, two entrepreneurs from the Quebec region. The office has 12 real estate brokers. Royal LePage says the addition increases the brand’s market share by 13 per cent in the Quebec City region, which now has more than 100 Royal LePage brokers. The agency will continue to offer services within a large territory, from Portneuf to Tadoussac on the north shore and from StAgapit to Montmagny on the south shore, including city centre. Parent founded Blanc & Noir immobilier in April 2010 with the idea of specializing in the development of marketing tools focused on the new condominiums segment. In January 2014 she teamed up with Carter, who holds a bachelor

in business administration, to launch Blanc & Noir. Parent says, “For us, the name Blanc & Noir is synonymous with transparency. It’s either white or black; there is no room for grey areas, which is to the benefit of our clients.” ■ ■ ■

John Peyton will be president and CEO for the Realogy Franchise Group, effective April 1. He will succeed Alex Perriello, who will serve in a senior advisory capacity as chairman emeritus. In his new role, Peyton will be responsible for managing Realogy’s portfolio of real estate franchise brands, including the Better Homes and Gardens Real Estate, Century 21, Coldwell Banker, Coldwell Banker Commercial, ERA and Sotheby’s International Realty real estate brands as well as ZapLabs LLC, Realogy’s innovation and technology development hub. Peyton joined Realogy as

president and chief operating officer in October 2016. He previously served for 17 years as a senior executive with Starwood Hotels & Resorts Worldwide. Perriello says, “Real estate is a relationship business, and I have been extremely fortunate to have worked with some of the very best people and brands in the industry during my 34-year tenure at Realogy. Our leadership team, affiliated brokers, agents and employees are an amazing group of dedicated individuals and I am so proud of what we have accomplished together.” ■ ■ ■

StreetCity Realty’s latest addition is a branch in Sarnia, Ont.,

lead by Donna Mathewson, who was formerly with a competing national firm. Mathewson is also the incoming president of the Sarnia-Lambton Real Estate Board. “I personally feel that Sarnia, and the whole industry, is primed for a new real estate brand and I was particularly drawn to the value proposition from StreetCity,” she says. StreetCity Realty is a Peerage Realty Partner headquartered in London, Ont., with 140 agents operating in seven Ontario cities. ■ ■ ■

Engel & Völkers North America has launched a networkwide initiative to integrate virtual reality technology, capabilities and support into each of its real estate shops. The company will provide each of its brokerages with a virtual reality camera and Google cardboard glasses. It will also provide informational webinars, marketing tools and support. “We realize that virtual reality is not simply a trend and we are committed to integrating new technologies into our network that help improve the home buying and selling experience,” says Anthony Hitt, CEO, Engel & Völkers North America. “This not only supports our domestic business, but adds great value as a truly global real estate network. International

buyers can experience 3D listings on a much broader scale, saving time and targeting their focus as they look to purchase homes in North America.” ■ ■ ■

Groupe Sutton-Humania located in the Laurentians, Que. will join the Royal LePage network on May 1. The company, headed by François Léger and Anne Léger, will operate as Royal LePage Humania. The company has eight offices located in Saint-Thérèse, SaintEustache, Saint-Jérôme, SaintSauveur, Sainte-Adèle, SainteAgathe, Mont-Tremblant and Saint-Donat. Royal LePage says it is “the traditional real estate agency that generates the highest number of transactions in the province.” The expansion adds almost 250 new brokers to its network and increases Royal LePage’s market share by nearly 14 per cent in the province, the company says. An engineer by training, François Léger was introduced to the world of real estate when his mother launched her own brokerage agency in the 1960s under the name Immeubles Léger. François took over the company in 1975. He was one of the first members of the provisional ACAIQ board of Continued on page 6

John Peyton

Isabelle Parent and Dave Carter

Engel & Völkers North America will provide each of its brokerages with a virtual reality camera and Google cardboard glasses. Donna Mathewson

Willemina and Michael Montgomery

Bryan Li

Anne Léger and François Léger

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6 REM APRIL 2017

Continued from page 4

directors appointed by the government and served as chair of the ACAIQ from 1995 to 2001 and chair of the OACIQ from 2009 to 2011. In May 1997 François moved to Sutton and in 2005 he partnered with his daughter Anne to ensure that it remained a family business. ■ ■ ■

Michael and Willemina Montgomery recently opened Renzo Real Estate, a Calgary-based boutique real estate brokerage that is making extensive use of virtual reality. “It is all about leveraging technology tools to help consumers and agents,” says Willemina, who is the office manager. The couple has been selling real estate in Calgary for a number of years and say their approach to marketing motivated the team to open their own brokerage. “The real estate industry is on the brink of a huge shift and we need brokerages to be ahead of the game,” says Michael. The brokerage will provide clients with a headset to experience the technology from their own homes. It says approximately two per cent of listings in Calgary can currently be accessed through virtual reality, “but this number is steadily rising”. ■ ■ ■

Coldwell Banker Canada’s customer satisfaction program, Ultimate Service, reached a new milestone as real estate professionals affiliated with the brand achieved a 98 per cent customer satisfaction rating from more than 75,000 Canadian home buyers and sellers. To mark the event, the company is unveiling a new integrated marketing campaign. A new marketing theme line has been introduced: “98%

Cover photo: DARLA FURLANI

Customer Satisfaction from 75,000 Canadians . . . that’s Ultimate Service.” “Ultimate Service is founded on a business philosophy of listening to the customer and putting their needs first,” says Andy Puthon, president of Coldwell Banker Canada. “The system centres on developing a customized marketing and services plan, backed by a written service pledge and providing the customer an opportunity evaluate our service. The satisfaction ratings derived from these independently tabulated customer surveys deliver proof positive that Coldwell Banker professionals deliver outstanding service.” This year the Ultimate Service Awards program was extended to honour teams in addition to individual and company awards. A new Ultimate Service awards logo was unveiled during a Canadian Awards WebEx. During the live awards presentation, Puthon noted that this year’s Top Ultimate Service award winners all hailed from the No. 1 Coldwell Banker affiliated company in Canada, Coldwell Banker Horizon Realty in Kelowna, B.C. The top Ultimate Service provider in Canada was Marion Lahey, while the top team with one to three members was a tie between Cecile Guilbault Group, based in Peachland, B.C. and Watson Brothers. The top team with four plus team members was Jane Hoffman Group.

organizations such as NAGLREP,” says Anthony Hitt, CEO of Engel & Völkers North America. “This year and beyond, we look forward to strategically working with the NAGLREP network and its leader, Jeff Berger, to help create confidence and solutions to evolve our industry and the communities in which we serve.” As a designated corporate partner, license partners and advisors within the Engel & Völkers North America network receive special rates for NAGLREP memberships and events to create additional connections and extend their professional network, the company says. Hitt will join Berger on Capitol Hill at the NAGLREP LGBT Housing Policy Summit in

■ ■ ■

Industrial property leasing and sales specialist Bryan Li has joined Avison Young as a vice-president in the Toronto North office. Li brings to Avison Young 13 years of experience in real estate sales and leasing. He previously served as associate vice president at CBRE’s Toronto North office. “Bryan is well connected in the Greater Toronto Area (GTA) North and East markets, with a

Winner! Congratulations to Erica Baumgart of Royal LePage Realty Plus in Mississauga, Ont. She’s the winner of a $100 gas card for filling out REM’s Reader Survey.

lengthy track record and an extensive roster of clients,” says Martin Dockrill, principal and managing director, Ontario for the firm. Li has experience working closely with tenants, landlords and investors, the company says. During his real estate career, he has completed more than 400 transactions comprising more than eight million square feet and valued at more than $450 million. ■ ■ ■

Kate Murray, CEO of the Real Estate Council of Ontario (RECO) since 2014, has left the organization. “Kate has been with the organization almost three years and has seen the organization and staff through a period of change and renewal,” says Mike Cusano, chair of the RECO Board of Directors, in a notice to boards and associations. “We thank Kate for her contribution and wish her the very best in her future endeavours.” RECO did not say why Murray left. The regulator will hire an outside search consultant to find a new CEO. REM

R Y

˜ ˜ Samir Kafena ˜ ˜

■ ■ ■

Engel & Völkers North America has partnered with the National Association of Gay and Lesbian Real Estate Professionals (NAGLREP). A non-profit organization based in the United States, the association offers membership and benefits to Canadian real estate professionals as well. “The LGBT community is a powerful force achieving social and legislative milestones because of

Samir Kafena

Publisher HEINO MOLLS heino@remonline.com

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Washington D.C., March 13 and 14. The summit is a gathering of notable LGBT community members and leaders in the real estate and housing industry who are attending to address housing policy impact on the LGBT community, says the company.

Graphic Design SHAWN KELLY

Samir Kafena, the owner of Century 21 Entreprises Immobilières Kafena in Dollard-des-Ormeaux, Que. died recently. A member of the Century 21 System since 1987, Samir was recognized for his outstanding loyalty and dedication to the organization in 2012 with the Long Term Service Award. For almost 30 years, Samir worked alongside his wife Hala, co-owner of the brokerage. Their son Shady joined the family business in 2004. “Those lucky enough to know Samir will remember his gentle spirit, sense of humour and joy for life,” says a statement from Century 21 Canada. “He will be profoundly missed by everyone whose lives he touched, and our thoughts and condolences are with his family, friends and team members at this difficult time.” REM

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Phone: 416.425.3504 www.remonline.com REM is published 12 times a year. It is an independently owned and operated company and is not affiliated with any real estate association, board or company. REM is distributed across Canada by leading real estate boards and by direct delivery in selected areas. For subscription information, email distribution@remonline.com. Entire contents copyright 2017 REM. All rights reserved. Reproduction in whole or in part without written permission from the publisher is prohibited. The opinions expressed in REM are not necessarily those of the publisher. REALTOR® and REALTORS® are trademarks controlled in Canada by The Canadian Real Estate Association (CREA) and identify licensed real estate practitioners who are members of CREA. MLS® and Multiple Listing Service® are trademarks owned by CREA and identify the services rendered by members of CREA. REM complies fully with the CREA’s Trademark Policy (section 5.3.2.6.1). ISSN 1201-1223

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8 REM APRIL 2017

Bea Smith’s wild ride During her 48-year career, Penticton, B.C.’s Bea Smith had doors slammed in her face, worked during the crash in the real estate market, experienced rampant sexism and fled from gun-toting homeowners. By Diane Slawych

he’s had doors slammed in her face, worked during the crash in the real estate market, experienced rampant sexism and fled from gun-toting homeowners – more than once. Subject material for a Hollywood blockbuster perhaps? Not exactly. These are just a few of the dramatic moments in the life of one Penticton, B.C. Realtor. “I can truly say, I have seen and done it all,” says Bea Smith, who retired in March after 48 years in the industry. Her journey started in Vancouver when, as a young mother with two girls, she met a woman in an interior decorating course who was selling real estate and making $300 per sale. “In the ’60s that was a lot of money,” says Smith, whose husband didn’t want her to work outside the home, but eventually relented, thinking she would do it as a hobby for “pocket money.” She would turn it into a suc-

cessful full-time career, one that included serving on countless committees, being elected to the Board of Directors of the B.C. Real Estate Association for two years and eight years on the South Okanagan Real Estate Board including two as president. She also traveled the country lobbying on various real estate related matters in Victoria and Ottawa. Some “hobby!” But starting out in what was then a male-dominated industry wasn’t easy. “You had to be sponsored by a company in order to apply for the real estate course. But most of these companies didn’t sponsor or hire women, so it was tough to do,” she says. The challenges didn’t end there. She recalls once being sent out to follow up with a farmer in Chilliwack who wanted to sell his property. “He opened the door and said, ‘You’re a woman, go home and make babies.’” Smith laughed and chalked it up to ignorance. “I had the same response,

believe it or not, in the early 1990s when my (male) partner and I made a proposal for a 48-unit townhouse development in Oliver, B.C.” They didn’t like dealing with women, she said. “The foreman told me to ‘go home and make cookies.’” So she did – after she got the contract. She baked cookies (something she normally never did) and brought them in for the crew every Friday for three years. “I’m not very domestic and I don’t think they were the best cookies,” says Smith. By the time she was working as a managing broker at Realty Executives Vantage, she decided to bring a lawyer in to give a sensitivity training session to the 20 people (staff, salespeople and property managers) in her office. “We can’t have this (harassment) because if you allow it, you’re part of it,” she says. The real estate market crash in the 1980s marked another chapter in Smith’s life. Interest rates had

Nova Scotia introduces mandatory Buyer Brokerage Agreements

ova Scotia has become the second province in Canada to make Buyer Brokerage Agreements mandatory. While brokerage agreements have been standard practice for sellers, the rule change by the Nova Scotia Real Estate Commission (NSREC) means those looking to purchase a home as a client of a brokerage will also sign a brokerage agreement. “It acts as a source of reference especially for clients in knowing their rights and responsibilities,” says Sarah Hill, communications officer at NSREC. From a consumer perspective it helps a buyer client understand what the brokerage obligations will be and how the brokerage will be paid. “From a licensee’s perspective,

mandating Buyer Brokerage Agreements gives brokers the ability to more easily maintain stock of their buyer clients and ensure compliance of the terms of their relationship with the brokerage,” says NSREC. “From a regulatory perspective, it is just as important to have all client relationships clearly expressed in writing for buyers as for sellers.” While the agreements have already been mandatory for buyers working with some types of brokerages since 2008, Nova Scotia is the second province in Canada to mandate brokerage agreements for all buyers who are clients of real estate brokerages – second to Alberta. NSREC says the purpose of buyer brokerage agreements is to: • describe the role and services of

the brokerage and, if applicable, the designated agent • outline the obligations of the client, the brokerage and, if applicable, the designated agent • explain the extent to which personal information can be shared • establish a clear commencement and expiry dates for the relationship • address conflicts of interest. NSREC offered information seminars for licensees prior to the agreement being made mandatory. For more information, visit nsrec.ns.ca/bba to view the new Buyer Brokerage Agreement, a list of do’s and don’ts and the top 10 questions for consumers. — Penn Javdan REM

shot up and people were losing their homes at a time when she was doing appraisals for a bank. “People couldn’t meet their obligations. It was a sad time.” It was also scary time. She recalled showing up at one farm, which was a grow op, and found a man standing in the window with a shotgun. “So I drove around the house and drove away and said to the bank, ‘you go out there.’” She knew what to do the second time she encountered a homeowner at the door with a shotgun. “He nodded and I nodded and I said, ‘I guess this isn’t a good time’ and walked away.” Her most memorable “sale,” meanwhile, wasn’t really a sale at all. A client had listed a 100-acre farm in Chilliwack that he’d inherited and a buyer was found right away, but the entire family was upset. “A relative stepped in and offered to scrap the deal and pay the Realtor commission,” says Smith. The buyer backed off, she says, “so even though the sale was cancelled, I still got paid.” Over the years, Smith has witnessed many changes in the industry. She once worked with a man who, before there was a provincial licensing system, used to boast how easy and inexpensive it was to get a license. “He always said he paid $5 for his license just like he paid for his hunting license.” B.C. later gained a reputation for its strict licensing system. Was anything better in the early days? “We didn’t have all the paperwork,” says Smith. “Today we feel you have to be a paralegal and have all the answers, which wasn’t (the case) at that time.” She says salespeople are held accountable for everything they say and do, that the public is more educated, everyone is online and people have no qualms about suing you. “Something goes wrong, they don’t like the colour of the dishwasher, let’s sue the Realtor.” Another big change has been the increasing number of women who have entered the field (Smith estimates the male/female ratio is

Bea Smith

now about half and half in B.C.) and an increasing number of younger people entering the industry. “In the past, it was a second career for many men and that has changed.” Would she advise a young person to get into the business now? To do well you have to “work at it,” she says, noting that 20 per cent of the salespeople make 80 per cent of the business. “If you look at a national average of income it’s pathetic.” She says while most will make at least one sale to a friend or family member, you can’t rely on only selling to people you know. Smith says the high point of her career has been the last decade with Realty Executives Vantage, the largest property management firm in the South Okanagan. In February, the company hosted a big retirement party for the 77-yearold real estate professional. And, as a self-described A-type personality and the social convener in the office, it’s not surprising she offered to organize the event with 100 friends and colleagues in attendance! “Real estate is the only career I’ve ever had. I’ve had a good run and it’s nice to end on a high note,” says Smith, who plans to spend more time with family, go for runs with her granddaughter and do some more golfing in her retirement. “One of the company owners brought me a photo of a bed and breakfast sign in Ireland that says ‘Bea’s Way’. This does sum up my REM life a bit.”

2017 ELECTION SEEKING DEDICATED REAL ESTATE PROFESSIONALS Submit your nomination and vote for RECO's Board of Directors in this year's election. Nominations close April 3 at 2 p.m. Voting runs from April 10-24. Check your email for your link to vote!

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10 REM APRIL 2017

Sutton looks to Ontario for growth

Sutton Group president and CEO Drew Keddy says the long-term goal is to increase Sutton’s market penetration in key markets “because there’s a direct correlation between market share and broker profitability.” By Danny Kucharsky

utton Group Realty Services has its eyes on the Ontario market, where the brand is currently under-represented, says its president and CEO Drew Keddy. Ontario, where the company has a market share of five or six per cent, is a priority, he says. By comparison, in Quebec and B.C., where Sutton has a strong presence, its market shares are 14 and 12 per cent, respectively. The “ultimate goal” for the Vancouver-based company is a 20 per cent share in its markets, Keddy says. Given Ontario’s size, it makes sense to focus on the province, he says. “We gain one per cent in Ontario, that’s like gaining 10 per cent in some of the other markets.” Keddy says the long-term goal is to increase Sutton’s market penetration in key markets “because there’s a direct correlation between market share and broker profitability. So rather than spread ourselves thin by trying to get into every market, we want to concentrate on helping our brokers become bigger and stronger in the markets that we’re already in and to ensure that we have sustainable business over the long term.” In Quebec, the focus is being put on strengthening existing brokerage groups. Last year, Sutton acquired a Quebec City brokerage and merged it with two others to form Groupe Sutton Nouvelle Demeure. In B.C., where Sutton has acquired a couple of companies in the last few years, the goal is to expand into some of the smaller markets and to take advantage of opportunities for consolidation in the province’s major markets.

Sutton, which has more than 200 offices and 8,000 sales reps, also opened its first office in New Brunswick last year. Keddy predicts the residential real estate industry will follow the route of commercial real estate, which had a plethora of independent companies 15 years ago, many of which have since left while the big companies have gotten bigger. Opportunities for growth at Sutton will arise across the country because of aging demographics of brokers and increased regulations and competition, he says. “I think we’re in for a culling, if you will, of Realtors in the market. If you look at the last decade, the number of Realtors in Canada has increased by 50 per cent and that to me is not sustainable.” The volume of transactions is slowing and there will be more competition for fewer sales, he says. “You’re going to have people that just can’t make it anymore. And they’ll end up leaving the industry.” As “frustrated” brokers head toward retirement, “I think they’re going to look for exit strategies and that’s going to present opportunities for companies that have the ability to grow through acquisition or consolidation.” Keddy also believes Canada’s financial intelligence unit, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), is going to look more closely at the residential industry, which will lead to more brokers leaving the industry. FINTRAC was previously interested in the commercial industry because of its higher transaction sizes but “with the

escalation of housing prices in Canada, we’re becoming visible,” he says. “I believe they’re going to start doing a lot more audits and I think they’re going to make some examples of some people to get people onside. I believe FINTRAC is going to put a burden on our brokers.” As a result, Sutton recently held FINTRAC training for all of its brokers. Sutton will invest alongside them to help brokers acquire companies and grow their market share and market penetration, he says. Keddy, who arrived at Sutton last year after 15 years with Colliers International, says one of his first goals was to put the brokerage’s house in order by making some personnel changes. He has been putting a focus on culture, which “is really the backbone of any successful organization” and something that takes years to develop. “People want to be part of something good and when they are, they tend to stay.” Keddy would like to create a culture of inclusion and collaboration, something he admits could take some time. “Brokers by nature, they’re competitive and sometimes compete against themselves. Eventually, I’d like to see them competing together as a single team. We all do better by helping one another.” To break the trust barrier, Sutton is getting brokers together at events to hear what’s going on within the company and to share their perspectives. “I believe that’s what’s going to build our culture.” Teaming will become more prevalent as real estate professionals get together and

Sutton president and CEO Drew Keddy (Photo: Darla Furlani)

specialize, he predicts. “Within a team you’ll have speciality tasks for people – you’ll have a marketing specialist, listing specialist, administrative specialist. People are going to have to become more efficient at what they do.” In addition, Sutton is putting a greater focus on technology to help eliminate the amount of time salespeople and brokers waste on what he calls nonvalue adding tasks. Keddy also wants to create a mentorship program that will allow for a transfer of knowledge from baby boomers to millennials. “Our demographics are aging quite dramatically. A

lot of these people, when they end up leaving the industry, are going to take all their knowledge with them.” The program, which Keddy would like to implement in the next two quarters, would take brokers with huge client databases who are close to retirement and put young people who are new to the business under their wings. The newbies would “do all the grunt work” and learn firsthand what’s taking place in the industry rather than learning from a seminar. “That is the fastest way you’ll learn – by being thrown right into the fire.” REM

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12 REM APRIL 2017

How to get better real estate photos

By Yvonne Dick

To take a good picture, you need good equipment.

aving a lengthy portfolio of listings is one key to real estate success. But how do you make it happen? Some agents have figured it out. When you are helping your client get ready to sell their house, you don’t always have a choice about their staging ideas and effects or knickknacks and furniture. Sometimes this results in less than appealing listing pictures. A good photograph, however, is possible nearly every time you list a home if you follow some of the do’s and don’ts tips for better real estate photos. To take a good picture, you need good equipment. While it doesn’t have to be costly, a few dollars invested in new and modern camera equipment can make a huge difference in results. Start by getting a travel tripod. This could be one that sits on the ground or the kind that folds out onto a table or stool. What matters is getting your shots level so that your photos don’t look as though they were taken during an earthquake. Make sure your camera will connect to your tripod – that hole on the bottom of your camera screws onto your tripod in most cases, so be sure it fits. Next, think about what you are taking pictures with. Smartphones are convenient, but their lenses are not wide

enough (even when their MP or MegaPixel capability is large). Plus, they are handheld, which you don’t always want. A compact digital camera will do just fine. You are looking for one with a lens that can zoom from 24 and 28 mm. It does not have to be expensive but try for 14 MP capacity or better. Turn away from the light: When possible, avoid using the flash. Natural light looks best and won’t reflect off windows and surfaces. Avoid the “cave” effect a flash can give in long rooms. Learn to shoot photos without too much of the window in focus – bright light through the windows may make the camera compensate by taking darker photos. It is easy to fix this – experiment with taking photos where the light is behind you or to the side. Sometimes a bookshelf to the left or right will provide enough shade for the camera sensor so that it takes appropriate light readings before you make the shot. Make it big: Sometimes even a large home will look smaller in photographs if it does not have an open floor plan. This challenge can be overcome in a few simple ways. In the living room, start by walking around the room and looking through the lens until you see the widest possible viewpoint. Make sure

When possible, avoid using the flash. Natural light looks best.

that the closest thing to the camera is the carpet or flooring. This can make a room look much bigger, with or without furniture in it. You may have to lower your tripod or angle your camera, but you can fit in the biggest view this way. Also, avoid putting wall and ceiling intersections near the edges of your viewing frame. This helps avoid a distorted look if you are using a wider lens. In other words, it will keep your walls straight! Lawn photography: The same basic rules apply for photographing the property’s lawn. Move out to the edge of the property and take a photograph from the corner in to highlight the space and light. You can also try taking overlapping or panoramic views. Even if your camera does not offer a panorama setting, just take a series of pictures with a small amount of overlap in your view screen. When you put them together on a slide show you can do one long picture, or if you put the original series together from left to right you will get a panoramic effect. Don’t forget to have the lawn mowed, all extra tools and toys

stored away, and if there are family dogs…well, you can guess the rest.

on and the house is a majestic yet well-lit silhouette against the sky.

Bathrooms: The bathroom can be tricky because it is the room with light, mirrors and the toilet. Few home buyers are interested in photographs of the toilet by itself. Try to approach the bathroom by highlighting the focal point of this room too. Make sure mirrors and surfaces are clean and streak free. Toiletries should be hidden away, old towels and bathrobes can be left outside the room. Make sure any towels that are hung are fresh and co-ordinate with the room. You may want to consider adding a flowering plant as a finishing touch.

Planning: A photo shoot should take time. An experienced photographer might take two hours to photograph a home. So should you. Plan what you want to emphasise in each room. What is its best selling point? Then structure your photographs around it.

Exterior: Some of the best exterior shots of a home can be taken right around dusk. You will have soft lighting and the outdoor lights of the home may serve to highlight its features and outline its boundaries. While you will want to practise first – perhaps on your own home – once you get the hang of it, you will enjoy how easy it is to take natural looking pictures. Think of the photos where the sky is darker blue, night is almost falling, solar lights are winking

For example, if the kitchen breakfast nook really makes the room look good, try taking several pictures with it in various angles in relation to the kitchen. Choose the best look. Do this for every room, first clearing the room of clutter. You can put the clutter just outside the door to the room for the purposes of your photo shoot and then replace it. If you are rushed, it is not a good time to take photographs. There is a certain calm and patience required to get the job done well. It is not just a cliché; a picture really is worth a thousand words. You can make your pictures count as an integral part of your listing. It is said that most people rely predominantly on visual cues. Present yours in the right light and your listings will be saying, “buy me” in no time. REM

CONGR ATUL ATIONS

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RE/MAX Premier Inc. Vaughan

20 REM APRIL 2017

This condominium power grab goes too far At a time when condos are getting older and need their money for repairs, and with utility costs rising, condo boards simply should not make discretionary spending choices – even if they think they are entitled to.

By Heather Zordel and Jonathan MesianoCrookston

ondominium living is exploding in Canada. CMHC’s fall report for the Greater Toronto Area reported nearly 50,000 pre-construction condo units were sold in the past two years, with up to 33,000 multifamily units expected for 2017. Skyrocketing home prices, changing demographics and greater acceptance of condo living are all driving this change. With this tremendous growth comes questions about why condos were created, their role and how management, the board and owners ought to interact. A condominium is a specific kind of corporation that manages a

property with a number of “strata” units. Individual owners control everything inside the units and pay maintenance fees to fund the condo’s expenses. The condo, by contrast, maintains and repairs the common property, which is everything outside the strata units. Condos usually don’t have anything to do with what goes on inside the individual strata, except insofar as they enforce rules that affect neighbours. No blasting music at 2 am, for example. However, some condos have over the years begun to buy things inside units, which forces unit owners to pay for them. Cable TV, telephone and Internet services are examples. When owners have given the condo board legal power to buy these services – by adding them to the condo “declaration” that gives the condo its powers – there is no issue. But when the condo is not clearly empowered, these choices are not its to make. One large condo on the Toronto Harbourfront is currently dealing with this authority issue. The condo had, for 25 years, provided unit owners with cable tele-

vision service, paid for by owners’ maintenance fees. Not all owners wanted cable TV. In fact, some didn’t want it at all. But that was the way it had been done for 25 years, so that was the way it was. Recently this condo entered a new contract to provide all unit owners with high-speed Internet and IP TV, which is television delivered over the Internet. The company selected was a newer entrant to the market and was providing its television signal using a much newer and less established technology. The package included high-speed Internet, but was also double the price. The channels being provided changed. The services were not made optional: every owner had to pay for them, even if not used. Further, the condo did this without providing details and without calling a meeting of owners. A large number of owners are not happy. Why? Fundamentally, because a personal choice was being made by the condo. Some owners didn’t want the new services. Some didn’t want the hassle, as technicians had to enter their unit to install equip-

ment they didn’t want. The installation process of retrofitting an older complex ran into difficulties. People were asked to renovate walls and move built-in furniture. Some didn’t want the particular TV channels offered. Some didn’t want to change providers because of discounts or features their current provider offered (such as turning the service off when away). Some needed separate invoices for tax reasons, which they would no longer get. Owners on fixed incomes would see fees unavoidably increase. The cost to owners of this change, including repairing damage, retrofitting walls, running new cable within units and cancellation of existing services, was not analyzed. All this for discretionary services that the condo did not need to provide owners. Making matters worse, when the change was finally disclosed, it was said to be a flat fee per unit, but this was not so. Because the condo pays the costs, larger units necessarily pay two or three times more than smaller ones for the exact same service, sometimes making their fees higher than market. And the contract committed

everyone to this new service for five years! These kinds of bulk services increase fees and costs, may not be legal and remove personal choice in an area of technology that is constantly evolving. The CRTC has made sweeping changes to television and Internet markets to give end users more choice of TV, Internet and phone providers. At a time when condos are getting older and need their money for repairs, and with utility costs rising, condo boards simply should not make discretionary spending choices – even if they think they are entitled to. Service providers are welcome to market their product and battle to win market share, but forcing choice on owners, in their homes, is the wrong way to go. Good governance recognizes individual choice. The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances. Heather Zordel, a partner at Gardiner Roberts LLP, focuses on corporate finance and on corporate governance for public companies & condos. She was a condo board member/officer for 10 years. Co-director of the Osgoode LLM (Securities) program, she has policy and political experience. Jonathan Mesiano-Crookston is a partner of Goldman Hine LLP, a boutique commercial litigation firm in Toronto. He specializes in litigation and dispute resolution across a wide cross-section of areas of law. REM

Scott is thorough, honest and upfront. My clients are always satisfied with his reports and walkthroughs. He also offers to be available to them if they have questions. He goes above and beyond and always answers my questions and even comes on site to help with certain inquiries I have had. Definitely my first choice in inspectors. ~ Michelle Butler, REALTOR® Royal LePage Vidorra

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22 REM APRIL 2017

Survey examines needs and wants of property investors A

survey of real estate salespeople, brokers and investors found that almost one-third of real estate professionals are also investors, having owned at least one rental property at some point. Conducted last year, the survey by TRES Labs asked 1,350 agents and investors for their opinions on investment properties and decision-making tools. The result was a comprehensive report that examines the investor-agent relationship and the niche market of real estate investment properties, the company says. Agents were asked to respond on behalf of past clients if they were not investors themselves. The study revealed that real estate investing is a significant activity among real estate salespeople and brokers. About 91 per cent of respondents said they were Realtors and 30 per cent of this

group said they were also investors. Approximately nine per cent of the participants identified themselves as developers. As the results were compiled, the company says a triangle of priorities emerged: needs, wants and knowledge of what is actually available for sale. An investor’s needs were defined to be factors like a satisfactory CAP rate, return on equity and cash-on-cash returns. An investor’s ‘wants’ seem to be determined by one’s own investing style; a preference for a particular property type, area or equity enhancers like renovations and foreclosure discounts. Next, participants were asked about their specific “wants”. Turnkey, move-in ready homes (income producing) are the most favoured choice among investors. This is followed by “fixer-uppers” (value added), and then properties requiring major renovations or rebuilds (development driven). A perenni-

al favourite is the “classic” rental home with three bedrooms, a fenced yard, located in a blue-collar area and within walking distance to transit and shopping. The study concluded that most residential property investors are not renovators. When comparing specific property types that were desirable to investors, whole apartment buildings to rent scored highest followed by land to develop and then single family homes to rent or flip. Condos to rent were popular but condos to flip were the least popular residential option. Commercial properties to rent, such as retail storefronts and industrial lots, and apartment blocks to flip were all ranked equally at the lowest end of the scale, the survey says. Investors said a typical down payment is 20 to 35 per cent and that the average cost to rehabilitate a residential property to resell is over $30,000.

When asked about the role of foreclosures in investments, respondents said that high expectations were created by the media but the reality of the process led to a generally low level of satisfaction. However, when asked to quantify their opinion, the results were generally more positive. “There seems to be a significant demand for a better selection of foreclosures, which likely speaks to the popular notion that foreclosures are bargains and investors should make them a priority. About 10 per cent of respondents know someone who has paid a subscription fee in order to see lists of foreclosures,” says TRES Labs. “Investment gurus encourage people to look for properties that have classic investment profiles, such as foreclosures, deals with creative financing and homes with unseen value. Respondents said classic investment scenarios are

always in demand and that demand is greater than supply. To investors, these properties represent greater return on investment and lower overall risk through the identification of hidden equity, deferred costs through incentives or unrealized opportunity.” The study relied on an academic essay series titled Research Issues in Real Estate, by Springer Publications. Some of the texts in the series were dedicated to the late James Graaskamp, a breakout theorist on real property valuation and a professor at the University of Wisconsin. “He is often quoted as saying, ‘Much of the risk in real estate investment is created by inadequate research and organization of data’, which, if addressed systematically, would make it easier and more profitable for investors to find and purchase rental homes that suit their needs,” the company REM says.

From “Secret Agent Expired-Chasers” to Multi-Millionaire Business Owners Real success in any business means not only healthy earnings, but also time off to enjoy life. The fact is, however, that most Canadian real estate agents sacriﬁce their entire lifestyle in pursuit of success and, ironically, instead of gaining more freedom, they become slaves to their real estate business. If you don’t have a real business system, you don’t really have a business at all. What you have instead is a “job”, and for most real estate agents, it’s a really horrible job: one that consumes your time, keeps you away from friends and family, and doesn’t pay very well. The fact is that agents

leave our industry in droves, not because they’re not great at working with clients, but because they simply can’t make the business work. They don’t have enough leads, they don’t ﬁnd enough time to properly follow up and thus convert their leads, they don’t know exactly why they win or lose a listing. Even though they work very hard, too much is left to chance. Trying to “do it all” without a clear understanding of what works and what doesn’t ultimately sows the seeds of failure for many agents. A proﬁtable and “real” business MUST be based on a solid system. In real estate, that means a system to automatically

and inexpensively generate leads, a system to convert those leads, and a system to convert the buyers and sellers you meet with into paying clients. Every successful business in the world, from Macdonalds to Google, is based on proven and duplicatable “systems”, and the agents who achieve mega success in our industry (defined as both high earnings and high quality of life -- i.e. making boatloads of money without killing themselves to do it) have done so on the strength of solid, proven, efficient business systems. As revealed in the profile of Milton, Ontario agents Domenic and Jody Manchisi, below, and of multiple other

agents you can read about at HighIncomeReducedEffort.com, creating a highly proﬁtable real estate business is certainly possible, regardless of whether you’re a brand new agent or have been in real estate for years, whether you’re a man or a woman, a solo agent or team, whether you live in the U.S. or Canada, and regardless of which franchise you’re with. Each of the agents proﬁled credits the same real estate system as being responsible for their success: The Ultimate Real Estate Success System pioneered by Canadian Real Estate Coach Craig Proctor. Craig Proctor’s Real Estate Success System has created more Millionaire Agents than

Read More About Millionaire Agents Like Domenic and Jody at HighIncomeReducedEffort.com cold calling. At this time, we did not brand or market ourselves - we were known as the secret agents! We were selling on average 80 homes a year and working 24/7 just the two of us.

by Domenic & Jody Manchisi, Milton, ON For us it all began in 2004 with the Craig Proctor System. Domenic was licensed in 1996 and was an expired chaser and I was the administrator/Buyers Agent. In Canada, the Privacy Act was enforced in 2004 which would not allow us to contact a person who had expired, suspended or cancelled on our Real Estate Board as the prospect’s information was deemed “private”. Needless to say, this disabled our ability to do business. We did not advertise ourselves anywhere. Our entire business model was expired/off market listings and

The only logical next step was to learn about marketing. With no hesitation, Domenic said we needed to call Craig Proctor. As impatient as he is, Domenic called Craig directly, and Craig called back! Giving Craig our story he said, “Dom, have you been to a SuperConference?” Well, no, we hadn’t yet. A month later Dom attended his ﬁrst SuperConference in Phoenix and our lives were forever changed. We worked the system, testing ads etc. and it changed our world. Leads were coming in, Dom was perfecting the call back script and I was implementing the systems and follow up. Coaching was key at this point for us, keeping us accountable and staying on track as the systems y were

supposed to be done. We began building a team, ﬁrst hiring a buyer’s agent, then the administrator and adding on as we grew and needed more help. As a result, we’ve had great success in our career, being number 1 in Canada 20082011 with Prudential. Hall of Fame, Top 100, Top 1% for Re/Max 2012-2016. In 2014 our net income was $830,000. In 2015, after doubling down on our implementation of the system, our net income was $1,300,000 and we

Jody is the office manager, Domenic is also ISA and also goes on appointments of his choosing. We concentrate and focus on training our team to understand what each person’s role on the team is and we are finding this has been a crucial part of each agent’s development. Tracking more precisely to ensure marketing is working, and working with our coach to fill any holes in the business! We can really attest our success to the Craig Proctor System. The members we have become

Needless to say, this disabled our ability to do business. had sold 124 homes – a 60% increase. In 2016 we sold 176 homes and earned $1,834,000 in net income – a 42% increase! WOW Currently in 2017 our team consists of 3 full time administrators, 6 OSAs, and 1 ISA.

friends with, all the program has to offer and the Craig Proctor coaches for their continued support and astute coaching. Our goal for 2017 is $2,500,000 in net income and 234 home sales. n n n

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any other real estate system in the world. Craig Proctor was a highly successful AGENT himself, right here in Canada, for more than 20 years. In fact, no agent in Canada has sold more homes than Proctor has, and by sharing the system he used to achieve his own success, he’s been able to help over 30,000 agents worldwide to transform their real estate jobs into highly lucrative real estate businesses that don’t come at the expense of high lifestyle costs. This is the same system Proctor used himself in his own highly successful real estate career right here in Canada. As you may know, he was twice named the #1 RE/MAX Agent in the world and was in the top 10 for RE/MAX International for 15 years. If you do not have a clear, detailed business system (key word, system) that you are using to move methodically to your goals…a plan you could show a banker or investor or new partner or key associate… a plan you have reasoned, complete conﬁdence in, then why wouldn’t you examine Proctor’s Ultimate Real Estate Success System - free? For a limited time, you can have a “sneak peek” at what your real estate business could look like by attending Proctor’s upcoming Free Discovery Day (see HighIncomeReducedEffort.com for details). Yes, Craig Proctor will openly share with you how he became Canada’s top agent. Learn from a real doer, not a talker. Unlike most real estate trainers that have never successfully sold real estate and have zero practical experience doing what they teach you, Craig Proctor is a doer, not a pretender, fake or fraud. Craig will share “real Canadian real estate strategies” with you that actually work. No theory, ideas or motivational hype. At this 3 hour meeting Craig Proctor will spill the beans and share with you exactly what to do and what it takes to be a SuperSuccessful Real Estate agent in Canada. For more information, visit: HighIncomeReducedEffort.com

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26 REM APRIL 2017

he office of Rod Stirling and Della Fraser, owners of Coldwell Banker Northern Bestsellers of Yellowknife, has been named No. 1 Coldwell Banker office in North America in both adjusted gross commissions and unit sales for offices with one to 10 sales reps. In the Canadian Coldwell Banker rankings, Marc Ronan of Coldwell Banker Ronan Realty in Tottenham, Ont. and Marion Lahey of Coldwell Banker Horizon Realty in Kelowna, B.C. lead the list of 2016 award winners. Ronan had the highest sales volume while Lahey had the most units sold. The Canadian Rookie of the Year in sales volume and unit sales was Molly Milligan of Coldwell Banker Northern Bestsellers. Originally from Yellowknife, Milligan left to pursue a career as a world-class snowboarder and Olympic hopeful for more than 10 years. She then returned to Yellowknife to launch her real estate career. During a recent awards presentation, Andy Puthon, president of Coldwell Banker Canada, said Milligan “brings the discipline, drive and work ethic” she learned as a professional athlete to her real estate career. “Her early success in this industry is one of the noteworthy performances that helped drive her company to be ranked No. 1 in North America in its office size category.” The Canadian Ambassador Award, presented to the individual who best exemplifies Coldwell Banker brand values, was awarded to Tracey Appleton of Coldwell Banker Peter Benninger Realty in Kitchener/Waterloo, Ont. “Tracey has been involved in several community service initiatives, including bringing Syrian refugee families to Canada, the company’s annual Trees for Toys drive and fire safety,” said Puthon. “She has been a director and vicechair for Habitat for Humanity of the Waterloo Region…and is also a past president of the Women’s

Crisis Services of Waterloo region.” He added that she has a long history of volunteer involvement in organized real estate and has attained professional credentials in a number of programs. “Tracey has distinguished herself as a caring, talented and deeply committed individual, who exemplifies all that is best about the Coldwell Banker brand in Canada,” Puthon said. Agent team honours (one to three people) for total sales volume went to the Patricia Houlihan Team, Coldwell Banker Prestige Realty, Vancouver. The Power of 3 Team at Coldwell Banker Power Realty in London, Ont. had the most total units. Agent team honours for four people or more for total sales volume and total units went to Jane Hoffman Group at Coldwell Banker Horizon Realty. That brokerage was the No. 1 affiliate company for sales volume and unit sales in Canada. Marion Lahey and Jane Hoffman Group were also No. 1 in Canada for Ultimate Service in their categories. Office honours for sales volume: 1-10 sales reps: Coldwell Banker Northern Bestsellers, Yellowknife 11-20 sales reps: Coldwell Banker Ronan Realty, Tottenham 21-35 sales reps: Coldwell Banker Fort McMurray, Fort McMurray, Alta. 36-50 sales reps: Coldwell Banker Rhodes & Company, Ottawa 51-100 sales reps: Coldwell Banker Horizon Realty, Kelowna 101+ sales reps: Coldwell Banker Westburn Realty, Burnaby, B.C. Office honours for total units: 1-10 sales reps: Coldwell Banker Northern Bestsellers, Yellowknife 11-20 sales reps: Coldwell Banker Essential Realty, Windsor, Ont. 21-35 sales reps: Coldwell

Banker Parker Realty, Charlottetown, P.E.I. 36-50 sales reps: Coldwell Banker Momentum Realty, St. Catharines, Ont. 51-100 sales reps: Coldwell Banker Horizon Realty, Kelowna 101+ sales reps: Coldwell Banker Westburn Realty, Burnaby International Chairman’s Circle awards went to Coldwell Banker Horizon Realty, Coldwell Banker R.M.R. Real Estate in Whitby, Ont. and Coldwell Banker Westburn Realty. The Coldwell Banker network has approximately 200 independently owned residential and commercial offices in Canada. ■ ■ ■

London and St. Thomas Association of Realtors (LSTAR) 2016 president Stacey Evoy was honoured for her outstanding volunteer service to the community

and awarded the Ontario Realtors Care Foundation Fellowship at the Ontario Real Estate Association (OREA) 2017 Annual Conference in Toronto. Members of the fellowship program are recognized for their passion and commitment to the real estate profession’s Quality of Life principles, enhancing local communities by supporting growth that fosters economic vitality, provides housing opportunities, respects the environment and builds good communities and safe neighbourhoods. Evoy became a Realtor in 2003. She participates in a number of fundraising events throughout the year supporting various charities. Evoy has also chaired LSTAR’s annual Children’s Christmas Party and she chaired LSTAR’s Christmas Gala Committee over four consecu-

tive years and raised more than $100,000 for various shelter based charities. ■ ■ ■

Elizabeth Burnett was recently presented with Sutton Group Select Realty’s 17th Michele Montour Award. The London, Ont. brokerage annually presents the award named for their late colleague to one of their sales reps who has all of the attributes that were “loved and admired in Michele,” the company says. “Elizabeth always displays a very positive, cheerful and upbeat manner and professional image. Elizabeth is a true team player,” says the brokerage. “A knowledgeable, passionate and highly successful Realtor, this veteran of 15 years at Sutton - Select is a true team player who embodies integrity and professionalism in all endeavours.” REM

Rod Stirling

Della Fraser

Marc Ronan

Marion Lahey

Molly Milligan

Jane Hoffman

Stacey Evoy

Broker of record Bruce Sworik presents the Michele Montour Award to Elizabeth Burnett.

Tracey Appleton

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Engel & Völkers Canada 2 Bloor Street West, Suite 700 · Toronto · ON M4W 3RI · Phone +1 416-323-1100 evcanada.com · info@evcanada.com

©2017 Engel & Völkers. All rights reserved. This advertisement is not an offering of a franchise, and where required by law, an offering can only be made 14 days after delivery of the applicable franchise disclosure document.

28 REM APRIL 2017

ississauga-based real estate broker Ettore Cardarelli has assumed the role of president of the Ontario Real Estate Association (OREA). Active in the real estate profession for 30 years, Cardarelli is broker of record with National Realty Centre in Mississauga. A member of the Mississauga Real Estate Board (MREB) and Toronto Real Estate Board (TREB) and a past-president of MREB, he has served on several OREA committees. Cardarelli was also a recipient of TREB’s volunteer award in 2011. He currently serves as a member of OREA’s governance committee and continues to serve as a mediator and a vice-chair of arbitration at TREB. David Reid of Muskoka will serve as president-elect. OREA directors-at-large are: Mike Douglas of Barrie, Azizali Kanjee of Mississauga, Mark McLean of

Toronto and John Oddi of Brantford. Eavan Travers of London will serve as commercial director and Costa Poulopoulos of London will serve as the director representing the provincial association to CREA. Larry Cerqua of TREB has been appointed substantial membership director. Ray Ferris remains on the board as past-president. Provincial directors are: Eastern Ontario, David Oikle; Central Ontario, Bradley MayerHarman and John Meehan; Northern Ontario, Steve Kotan; Southern Ontario, Sean Morrison; Northeastern Ontario, David Reid; and Western Ontario, Karen Cox. OREA represents 70,000 brokers and salespeople who are members of 39 real estate boards throughout the province. ■ ■ ■

Jim Smith, a sales rep with Sutton Group Select Realty and a Realtor for more than 20 years, will serve as the 2017 president of the London and St. Thomas Association of Realtors (LSTAR). “There are many exciting initiatives happening this year at LSTAR, as we continue to enhance the portfolio of services for our members and showcase the value of working with a Realtor to the consumer,” says Smith. The 2001 winner of the Michele Montour Memorial Award for Excellence in Real Estate, Smith has volunteered on several LSTAR community engagement events and participated in various LSTAR teams, including the Corporate Challenge and the association’s Home Runners for the Labatt 24-Hour Relay to benefit area hospitals. ■ ■ ■

Jason Cossette, the 2017 president of the Association of Regina Realtors (ARR), says he has reason for optimism in the local real estate market. “Despite the resource sector taking a hit for the past two years and a drop in overall housing demand, the Regina real estate market is performing well,” he says. “Buyers need to be ready to act, given the potential for lower

Protecting your clients’ interest By Jeffrey Wagman

e all understand that the residential part of the real estate business can create some very close relationships, but how close is too close? This is a business first, and sales reps need to remember that fact. It’s natural that working so close with families can draw you in, but this is where you need to make some separation between you and your client. The reason I’m saying this is because when it comes to nego-

tiating, you need to remember this is a business negotiation. The other sales rep involved for the seller or buyer is not your enemy! In fact, they are your ally. We often get so caught up in protecting our client that we forget this. The question becomes, “What are you really protecting?” Are you protecting your client or your client’s interest? I say the latter is more accurate. If you are protecting the interest of your clients and not them personally, you will be less likely to get into an emotional conflict with the other sales rep. Now I understand that things can get heated sometimes in these nego-

tiations, but this is where you need to step back and evaluate what it is you are trying to accomplish. Remember: After a deal is done, your clients move on with their lives as do the other sales reps’ clients. The two salespeople are left with more business to conduct and likely will be negotiating together again, instead of against one another.

inventory than in recent years. Sellers look to be well positioned in the months ahead; timing and a good pricing strategy will allow them to take advantage of some pent-up demand in the market.” Cossette, a sales rep with Re/Max Crown Real Estate in Regina, is a third generation Reginan and second generation Realtor. Joining him on the 2017 ARR Board of Directors: presidentelect Tim Otitoju, Platinum Realty Specialists; past-president Rick Miron, Re/Max Crown Real Estate; Darren Bostock, Global Direct Realty; Karin Wees, RealtyOne Real Estate Services; Doug Slinn, Century 21 Dome Realty; Peter Fourlas, Royal LePage Regina Realty; Vicki Pantelopoulos, Global Direct Realty; and Dave Markus, Century 21 Dome Realty. Lane Boghean and Noel Geremia of Century 21 Dome

Realty serve as vice president and Regina region director of the Association of Saskatchewan Realtors. ■ ■ ■

Members of The Lakelands Association of Realtors have donated over $17,000 to local shelter-based charitable organizations across Muskoka, Haliburton, Orillia and Almaguin. Each month association members contribute $2 to the Ontario Realtors Care Foundation Every Realtor Campaign. At the end of the year, the funds are divided across the jurisdiction. The organisations that benefitted from the funding this year are the Burk’s Falls & District Food Bank, Table Soup Kitchen in Huntsville, Muskoka Interval House in Bracebridge, The Lighthouse in Orillia, Places for People in Haliburton and Cottage REM Dreams in Haliburton.

From left: The Lakelands Association of Realtors presented a donation to The Lighthouse in Orillia, which provides meals and drop-in services and a shelter for men. From left: Faye Gress; Lighthouse CEO Linda Goodall, Lydia Whelan, Lakelands president-elect Mike Stahls and EO Crystal Henderson.

Jim Smith

Ettore Cardarelli

Jeffrey Wagman is a partner and broker of record at Forest Hill Real Estate in Toronto. He sells homes and condominiums in the central Toronto market and is consistently ranked in the top one per cent of all real estate salespeople in Toronto. REM The 2017 Association of Regina Realtors Board of Directors

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30 REM APRIL 2017

Rotterdam’s eye-popping cube houses Story and photo by Diane Slawych

t takes a certain type of person to live in one of Rotterdam’s cube houses. First there’s the unusual shape that takes getting used to – each dwelling consists of a tilted cube on a hexagonal column. Then there’s the constant stream of tourists traipsing through the prop-

erty and its courtyard, gawking and taking photos. Built in 1984, the cube houses were designed by Dutch architect Piet Blom, who envisioned a singular cube as a sort of abstract tree and the complex as a forest or village. The 38 apartments, which include two larger cubes and 14

smaller spaces, are constructed on a pedestrian bridge crossing the Blaak railway station, which connects the Old Harbour area to the inner city. The cubes, which are constructed of wood with reinforced concrete floors and double-glazed windows, appear as if they balance

Rotterdam’s cube houses are still an eye-popper, 32 years after they were built.

on a pole. Three sides face the ground and the other three face the sky. At first glance, it seems a rather noisy place to live, with the traffic speeding past beneath the complex. But as you approach the oddshaped homes and ascend the stairs that lead to the central courtyard, it’s actually surprisingly quiet. There are potted plants and a few shops on the main level, where the cube houses almost envelop you from every direction. Back in the 1970s the city of Rotterdam wanted to revive its central core, which was considered “too businesslike and functional” and give priority to housing, cafés, restaurants, recreational projects and playful architecture. Blom had already experimented with high-density, elevated residential projects, including three cube-like structures built in 1975 at the border of the city of Helmond near Eindhoven. A nice bonus of the Rotterdam complex is that one of the cube houses is open to visitors for a small fee. On the lower floor is the triangular-shaped living room, with a

kitchen and dinner table in one corner, a washroom in another corner and storage space that can be used as a TV room or office in the third corner. Blom called this level the “street house” because windows are directed downwards toward the street and offer a visual landscape of what’s going on in the city below. The second floor has a more intimate character and contains two bedrooms, a bathroom and small hall, while the top floor is a three-sided pyramid with 18 windows and three hatches offering a view on the surroundings. This loft can be used as a bedroom or sun lounge. Each floor is connected by a staircase. Needless to say, living in a cube shaped dwelling requires residents to be flexible and adaptable. Standard furniture doesn’t fit so everything is custom designed, including the shelving, kitchen table and seating. One bonus is the central location, just steps from the subway and trams as well as the library and the new Market Hall – both of which are also architecturally REM interesting.

Why is it so hard to pick up the phone? By Dr. Maya Bailey n a session with a coaching client the other day, my client asked, “Why is it so hard to pick up the phone?” He said he schedules in the time to prospect every day but when it comes time to actually pick up the phone, he freezes and can’t bring himself to do it. He explained, “It doesn’t matter if it’s a cold call or a lead where I have to follow up, either way, I can’t make myself do it.” I asked him what he thinks

about when it’s time to prospect and he said, “I tell myself it won’t work” or “nobody wants to hear from me” or “I’ll feel like a failure.” None of those beliefs were facts but they succeeded in winning him over. Then he would criticize himself mercilessly. How much do you relate to that? During the reprogramming session, it became clear that his biggest fear was of failing. His subconscious mind was wired to believe that the best way not to fail was to not try. His whole life he avoided situations where he might fail and prospecting was one of those situations. We found the origin of his “I’ll be safe if I just don’t try” belief and together we released this belief and installed some updated

empowered beliefs such as: • I prospect with ease. • There is no such thing as rejection, it’s either a match, or it’s not a match. • I have a valuable service to offer and people are happy to hear from me. The last belief is especially powerful. I have seen so many agents transform their perspective on prospecting by realizing they weren’t calling to “take” anything; they were calling to “offer” their valuable expertise. On the other hand, some agents are blocked when it comes to prospecting because they are afraid of being successful. When they initially talk to me they say, “I want your help in succeeding because I feel stuck”. However, when we explore the deeper sub-

conscious beliefs, here is what emerges from the subconscious mind: • If I succeed I won’t have a life. • If I succeed I won’t have time for myself or my family. • To succeed, I have to struggle and sacrifice. • To succeed, I will have to morally compromise. Naturally they weren’t able to succeed since the subconscious mind (which is 90 per cent of the mind) was always winning. As before the solution was to release these false beliefs about success and install updated empowered beliefs, such as: • Success comes to me easily. • I work smarter not harder. • I succeed and still have balance in my life.

• On the path to success, I maintain my integrity. Whatever blocks you are experiencing on the outer level, like procrastination, feeling overwhelmed or lack of motivation, there is a corresponding deeper belief that is the cause. The solution is clear: change the inner beliefs and you’ll change your ability to create your ideal income and have balance in your life. Maya Bailey, Ph.D. is known as the Mindset Business coach for real estate agents and other success minded entrepreneurs who want to achieve a “Multiple 6 Figure Income in 12 months or less”. For a complimentary “Business Breakthrough” coaching session, visit 90daystomore clients.com REM

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32 REM APRIL 2017

Quebec ads highlight brokers’ skills The TV campaign by the Quebec Federation of Real Estate Boards shows kids working in professions in which they are clearly not trained and ends with the tagline, “Real estate... it’s not a kids’ game”. By Danny Kucharsky

uebec real estate brokers are showing that real estate is not a kids’ game in a new province wide campaign that features children doing jobs usually handled by professionals. The TV campaign by the Quebec Federation of Real Estate Boards (QFREB) shows kids working in professions in which they are clearly not trained and ends with the tagline, “Real estate... it’s not a kids’ game” (“L’immobilier n’est pas un jeu d’enfants”). It also appears on radio, print and on the web. The campaign focuses “on the added value of real estate brokers in transactions,” says Jacynthe Alain, assistant manager - communications and public relations at the QFREB. The federation represents 13,000 brokers in Quebec’s 12 real estate boards. One of the two 15-second TV spots pictures a patient at the dentist. He reacts in horror when he discovers the dentist who is about to drill his teeth is a boy who says, “This will make a little boo-boo.” The other spot shows a woman at the hairdresser who is shocked when she discovers her stylist is a girl who is about to dye her hair pink and says, “Oh, you’ll be so pretty in pink.”

The idea is that if you have a problem with your teeth, you go see a dentist or if you have a health problem, you’ll go see a doctor, Alain says. “If you want to make a real estate transaction, go see a broker. “You don’t let just anybody take care of your teeth when you have a dental problem. You go to recognized experts and it’s the same thing for us in real estate.” The campaign began during the Christmas holidays and resumed in mid-January. It continues until mid-March. Created by Gendron Communication, it’s the second year for the “Real estate... it’s not a kids’ game” campaign. Last year’s TV spots showed children playing a board game. In one of the spots, a kid picks up a card that says, “Your buyer has changed his mind. Go back to the starting line.” Another spot shows a kid picking up a card that says, “Your condo fees have tripled.” An online survey conducted by Leger Marketing after last year’s campaign found the messages were well received, understood and convincing. The survey questioned people who intend to buy or sell a property in the next five years.

“We use a lot of humour to support the message,” Alain says. “What we’ve learned from the other campaign is that people like the concept mostly because it’s simple, it’s precise and the presence of the kids really helps keep the attention” of viewers. The federation also surveyed brokers on their perceptions of the campaign and found the comments were extremely positive, Alain says. In the wake of an agreement between CREA and Quebec boards, the boards pay lower membership dues to the national organization in exchange for the right to conduct their own advertising. Quebec brokers pay advertising dues to the QFREB, which conducts advertising on their behalf. “The goal is the same (as CREA’s) – to show it’s advantageous and more reassuring to do business with a real estate broker when you buy or sell a home,” Alain says of the Quebec campaign. However, she notes CREA’s advertising puts a greater accent on showing the complexities that can arise when people try to sell on their own. “Our communication is geared to showing the added value

of a broker.” Last year’s campaign put greater emphasis on showing the complications that could happen in a transaction and that “it doesn’t always go the way you want.” The campaign emphasizes the importance of particular skills that are required for conducting real estate transactions properly. It also promotes the Quebec listing service centris.ca for finding a property or broker. The French-language TV spots are being shown during prime time on the Radio-Canada and TVA networks. Radio and web ads are in both French and English. “My daddy sold our house with the help of a really real real estate broker ‘cause selling a house is no kids’ game,” says a child on one of

Mississauga Real Estate Board now offers SentriLock lock boxes By Penn Javdan

he Mississauga Real Estate Board recently struck a deal with SentriLock for electronic lock boxes. Nelson Goulart, broker of record and owner of Better Homes and Gardens Real Estate Signature Service says, “We have now launched the system to the public on our listings and it is working very well. We’re super proud to be the first office in Mississauga to have gone live with the system.” This is an important deal, Goulart says, because the industry is changing and there is a growing

concern about traditional look boxes and their low levels of security. YouTube videos show how anyone can disarm a traditional lock box. Electronic lock boxes afford a competitive advantage for those using them and solve many logistical issues, such as tracking who is and is not entering a home. In the past, many people could claim that they’d never entered a property when this was not the case. The Sentrilock lock box registers an entrant as soon as someone accesses the home. That gives brokers and sales reps control,

which means more safety for the clients. Mississauga board members must implement the electronic lock box system themselves – it is not a board-wide requirement. “They have to believe and take the initiative,” Goulart says. He says there is little reason not to because it is simple to install, easy to maintain and the board offers appropriate training about how to use it in the most efficient way possible. He says security should be a priority for forward-thinking brokers. “Otherwise,” he says, “the concern is that something tragic could hap-

pen and everyone will react when it’s too late.” While no lock is indestructible, the SentriLock lock box’s construction is proven and it cannot be picked easily. “The only way to get around it,” Goulart says, “is to destroy it. And it would take a lot to destroy these lock boxes.” The Calgary board has made a similar deal with Sentrilock. Goulart advises that Sentrilock is owned by the National Association of Realtors, who make good partners in advancing the cause for better security. REM

the radio ads. Print ads are in English only, which better reaches the Englishlanguage audience that is primarily in Montreal, Alain says. Quebec real estate brokers are “your key to a better transaction,” reads one of the print ads. “A real estate transaction is a complex affair, one that calls for specific skills and knowledge if it’s to be truly successful.” Asked whether the campaign is a response to For Sale by Owner firms, Alain says, “The federation is in favour of free choice. People have always had the option to sell on their own or to sell with a broker. We continue to be for free choice.” However, the public is sometimes confused about the services they’ll get from “real estate coaches.” The federation’s goal is to inform consumers that there are recognized experts who receive proper training and are responsible for the advice they give. People who give advice as coaches do not have the same legal responsibilities as a real estate broker. Alain would not divulge the cost of the campaign. To view the French language TV spots: www.fciq.tv/fr/ videos/voir/854 and www.fciq.tv/ fr/videos/voir/856 To hear the English radio spots: http://extranet.centris.ca/MONTREAL/Upload/2017anglo15.mp3 and http:// extranet.centris.ca/MONTREAL/Upload/2017-anglo10.mp3 To view last year’s English TV ad: https://www.youtube.com/ REM watch?v=tit-W81vMZQ

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34 REM APRIL 2017

Discounted commissions changing the industry A client who is obsessed with the fee usually has little respect for you, your services or our profession. By Ross Wilson

former client called to say they wanted to list their home for sale. Since I’d served them nearly 30 years ago and had faithfully stayed in touch, I happily accepted their invitation. During the initial phone chat, while I gathered details about their situation, motivation and property, they inferred they’d be listing immediately. Consequently, I pre-

pared a detailed CMA and to save them time, prepared most of the listing documentation in advance. When I arrived at their front door with lockbox and camera in hand, I noticed the property’s rather unkempt condition. That first impression was immediately confirmed upon entering the foyer. With the exception of a new roof, they acknowledged that little effort had been made to improve the place. Even the mechanicals were

Media articles have intimated that, considering our services, we’re grossly over-paid. But columnists often neglect to get all the facts.

being coaxed well past their designed obsolescence dates. After I’d finished my presentation and offered a candid considered opinion, they dropped the first shoe. To my dismay, they’d already sought the opinions of several other agents. Well, I’m accustomed to forthrightness from the outset and to my good fortune, unaccustomed to direct competition, particularly in the case of former clients. Either out of ignorance or anxiousness, my esteemed colleagues had apparently unanimously opined a much higher market value. Then the second shoe made its debut; how short of a listing term would I accept? And yes, there was a third shoe; what would be my fee? They understood and agreed regarding the merits of offering a competitive commission rate to the buyer brokerage, but objected to my own

fee. When they said all the other agents had promised a lower rate, I tried to justify my fee, but all they saw were dollar signs. Our meeting ended abruptly when they said they had to think about it. While packing up to leave, I summarized their expectations by asking if they felt it reasonable to expect a highly experienced broker who is confident in his self-worth and truly cares about his clients, to accept an overpriced, minimum term listing of a sub-standard property owned by someone who doesn’t seem to value loyalty or expertise, and with a heavily discounted commission rate. Significantly, they laughed it off and refused to answer. Later that day, I was not surprised to receive their call to thank me for my time, but they had chosen to list with another brokerage. I was sure that without a significant price reduction, their proper-

ty would not be sold any time soon. Hence, I felt I’d lost nothing but a few hours of my time and a troublesome seller. I candidly said that perhaps, to be fair, they should have disclosed during our first phone conversation that I was to be competing on price and commission rate because, honestly, I’d have respectfully declined the invitation. I cheerfully wished them luck. By the way, after more than three long months in prime market conditions, with dreadful marketing, amateur photos and several price reductions, it finally sold by a co-operating brokerage for an even lower price than what I had predicted. For some time, it’s been a common but unwise practice for property owners to hire a listing brokerage based on the highest asking price. But it’s becoming Continued on page 35

Real estate repair songs

By Dan St. Yves

usic is such a great background companion when you’re working – and some songs seem like they were written specifically for while you’re fixing up a house. Consider these famous tracks that coincidentally may have been subliminally composed during thoughts of carpentry and/or foundation restoration: The Beatles - Fixing a Hole: Sure, there are holes everywhere in older homes. Maybe between the shingles or through an exterior wall. The last thing you want is a

hole in your house, so fixing one just seems to make perfectly logical sense. A closed hole is a happy hole – unless it’s there for ventilation. The Drifters - Up On The Roof: Well, if that aforementioned hole was up on the roof, you had better Get on Up (James Brown) and make some repairs! Caution and care will be required though. You don’t want to practice skydiving without a parachute. Peter Paul & Mary - If I Had a Hammer: Yes, many repairs will be made using a common household hammer. For aggressive renovations, you might have to turn to Peter Gabriel - SledgeHammer. That’s also an option if one of those 2x4s refuses to align in your rec room renovations. Bobby Darin - If I Were a Carpenter: If you ARE a carpenter, great! If not, consider consulting one or some other expert to ensure you have the proper permits for

your renovations. Specific carpentry skills will come in handy if you hope to avoid installing your new kitchen cabinets with the doors erroneously facing the wall. Bill Monroe (or Elvis Presley) - Working On the Building: If you’ve owned a home for any length of time, you will inevitably be working on that building. You’ll be repairing a worn set of toilet mechanisms, fixing a leaky sink, ripping out an outdated dining room light fixture, replacing the banister that came off when you gripped it as you fell down the stairs while reading a text…. There are innumerable chores that require attention maintaining your dwelling. The Commodores - Brick House/Pink Floyd - Another Brick in the Wall: Perhaps like the three little pigs, you bought a straw house. In that case, you should really consider NOT lighting birthday

cake candles in there. If you were like that wise piggie who used bricks, you may need to repair some damaged ones, hence needing another brick in the wall. Also, if you happened to purchase a flophouse in need of huge amounts of repairs, you will want to consider the other appropriate Pink Floyd track, Money. Miley Cyrus - Wrecking Ball: Speaking of a teardown residence, sometimes that effort is best left to professionals, with a bulldozer or a large metal ball. Talking Heads - Burning Down the House: Or, if you want to risk your insurance payout by doing something less than legal… The Beatles - She Came In Through The Bathroom Window: You really should have secured that issue before the cat burglar decided to break in! Faron Young - Hello Walls: You know you’ve done a few too

many renovations if you are actually greeting your walls. Lionel Ritchie - Dancing On the Ceiling: Once the work is done, hey, whatever floats your boat! Les Misérables - Empty Chairs at Empty Tables: Well, those renovations did go on far too long… Led Zeppelin - Stairway To Heaven: This brings us back to the beginning. Either you are climbing a ladder to replace those missing shingles, or you’re getting into the attic to meet the raccoon that’s eating your insulation – either way, stay safe and those renovations will all go easier with just a few inspired musical choices. Humour columnist and author Dan St. Yves was licensed with Royal LePage Kelowna for 11 years. Check out his website at www.nonsenseandstuff.com, or contact him at danst.yves@hotmail.com. REM

REM APRIL 2017 35

Discounted commissions Continued from page 34

more prevalent in recent years for that choice, which of course is their right, to be based on commission rate. But be forewarned; a client who is obsessed with the fee usually has little respect for you, your services or our profession. They need you, but out of fear, refuse to be fair. How desperate are you? Do you rationalize competing on fee by convincing yourself that a piece of the pie is better than none? It’s your choice whether or not to accept an agency. Whenever I succumbed to a seller’s demand for a fee reduction (extremely rare), they ironically and almost consistently proved very unreasonable, sometimes downright obnoxious. They could not be pleased. Or after I’d invested a lot of time, effort and expense, they’d spontaneously change their minds about selling. Suffice it to say that if – a big if – someone like this later refers anyone, the referred party will likely expect the same full service at a discounted rate. Birds of a feather flock together. Many agents charge a popular local competitive rate. (I’m not supposed to imply this, but let’s be real.) However, in a strong sellers’ market when demand exceeds supply, a seller could expect to negotiate a rate, especially for highdemand property. When supply and demand are more in equilibrium, or when supply exceeds demand, to attract more attention, a seller should offer a higher commission rate – not a lower one. Plus they should provide you with sufficient incentive to invest your time and effort on their behalf. They can’t realistically expect you to work for less and spend tons of money advertising it. It simply wouldn’t be fair, nor under those circumstances, would it make good business sense to accept the listing. Thus, if a seller demands a discount, they should expect discount service. Over the past few years our fees have been a hot topic, and the controversy has been irrevocably altering our traditional business model. Media articles have intimated that, considering our services, we’re grossly over-paid. But either by design or gross ineptitude, to grab readers’ attention, columnists often neglect to get all the

facts. And what draws that attention and its often affiliated ire more than reader’s pocket-books? The adverse effect of such stories on public attitude is palpable. Have you ever noticed sympathetic stories about our industry? Agents are often depicted as bungling, greedy, narcissistic egomaniacs taking advantage of innocent people. Have you seen any impartial articles stating, for example, that buyer services are normally free, or that most registrants generate a mere handful of sales annually – or none, even though constantly on duty? On average, agents earn about the same as a typical office worker who gets a relatively secure regular paycheque with no business expenses and critically works with significantly lower risk and weekends and holidays off! If we’re all so exorbitantly paid, why do legions fail after a few struggling years? You’ll not likely see such articles because truthfully depicting our members serving satisfied clients without drama would not be entertaining. Okay, okay – I’ll stop ranting now, but I’m a little sensitive to unfair and usually unanswered crit-

Agents are often depicted as bungling, greedy, narcissistic egomaniacs taking advantage of innocent people. icism of our industry. In this new series, I address the topical issue of fee for service, including how to surmount a demand for a discount. So, stay tuned. Ross Wilson, broker with iPro Realty, has extensive experience as a brokerage owner, manager, trainer and mentor. His new book, The Happy Agent – Finding Harmony with a Thriving Realty Career and an Enriched Personal Life is available where print and e-books are sold, including the TREB, BREB, RAHB and OMDREB stores. Visit RealtyVoice.com. REM

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Legal issues: The right of subrogation and releases By Natalka Falcomer

ost leases require a tenant to obtain insurance that is consistent with the lease terms before they can enter a premises. Despite this fundamental prerequisite to enter, most tenants fail to meet the lease’s insurance provision. This failure can cause delays in construction, occupancy and the “grand opening”, not to mention tack on “surprise” premium increases. In order to avoid this disaster, a prudent agent will advise her client to have the

The right of subrogation is one of the most misunderstood and overlooked rights related to the insurance clause. Should you waive goodbye to this right or sign a release? insurer review the lease and the insurance clause; she will also have a general understanding of some critical insurance terms. The right of subrogation is one of the most misunderstood and overlooked rights related to the insurance clause. This right is not the landlord or tenant’s to exercise. Rather, it’s the insurer’s right to sue the party responsible for causing a loss or damage. This arises when the insurer pays insurance proceeds to the injured party to reimburse the

Good Works S

arah Wollner of Royal Thousands of dollars were LePage Connect Realty in raised for two local organizations Ajax, Ont., recently hosted at the 32nd Annual Ski and a Yuk Yuk’s comedy Snowshoe Day, hostnight fundraiser in suped by Royal LePage port of the Royal LePage Locations North at Shelter Foundation and Craigleith Ski Club in Juliette’s Place. The Blue Mountains, Ont. Three comedians entertained the crowd of “Conditions were 125, all clients, friends our best yet,” says broker/owner Desmond and colleagues of Wollner’s, who came von Teichman. “We out to show their supskied, we laughed and Sarah Wollner port for the cause – helpwe raised money for the ing local women and children safely escape domestic violence. The $3,000 raised will count towards Wollner’s upcoming participation in the Iceland Challenge for Shelter in July 2017. Each trekker must raise at least $5,000, which will be directed to their local women’s shelter and national programs. ■ ■ ■

insured for its losses due to damage or injury caused by another party. Once the insurer compensates the insured, the insurer then gets a right to “step into the shoes” of the insured and sue the party that caused the loss. This right makes the insurer “whole” as it recoups its payment to the insured by suing the party that caused the damage. For example, let’s say that the tenant burns down the building. The landlord’s insurer will reimburse the landlord for its loss of organizations that make a difference in our community.” Funds raised were donated to Hospice Georgian Triangle and the Royal LePage Shelter Foundation, benefitting local women’s shelter, My Friend’s House. ■ ■ ■

Paolo Zulian, a sales rep with Royal LePage Burloak Real Estate Services in Burlington, Ont., plans to row a million metres on an exercise machine this year to raise funds for the Royal LePage Shelter Foundation and local shelter Halton Women’s Place. Zulian’s goal is to raise $10,000 and as of February he was about a quarter of the way there. You can see a barometer to track his progress at his website, https://tinyurl.com/jn5hgkj. REM

Royal LePage Locations North broker/owner Desmond Von Teichman, left and Royal LePage President Phil Soper at the brokerage’s 32nd Annual Ski and Snowshoe Day.

the building. The insurer then gets the right to “step into the landlord’s shoes” and sue the tenant for the money it had to pay out to the landlord due to the loss. I believe that right of subrogation is unfair because it allows the insurer to be paid twice; once by the insured and then a second time by exercising its right to subrogation. This outcome, as well as the fact that no one likes getting sued, is why you want to ensure that the parties to a lease both obtain a waiver of subrogation. A waiver of subrogation provision will require the tenant and landlord to get, in writing, their insurers to agree to not sue the party that caused the damage. Tenants should be particularly vocal about getting a waiver of subrogation if the tenant pays for the landlord’s insurance, because operating costs usually include landlord’s insurance. This is because without a waiver, the landlord’s insurer can sue the tenant despite the fact that the tenant was the one paying for the insurance! Most insurers will agree to execute a waiver of subrogation without any penalty or increase in the insurance premium. While tenants are typically required to obtain a waiver, landlords will only agree to “use their best efforts” to obtain a waiver of subrogation from its insurer. This loose language gives the landlord leeway in case it cannot obtain the waiver. A release can be signed instead of a waiver, which simplifies the process of requesting waivers of subrogation from third parties. In fact, most balanced leases have a mutual release clause. This clause releases the landlord and tenant from claims they have against one another, but only to the point that they are insured or are required to be insured under the terms of the

lease. In other words, both parties agree to not sue each other if they have insurance that covers the loss they suffered due to the other party’s action. Releases have the same effect as waivers of subrogation because the insurer’s rights exist only if the insured has the right. If the tenant gives up a right by way of mutual release, then the insurer automatically loses this right as well. Consider a scenario where a tenant signs a mutual release and a few months later the landlord accidentally destroys the tenant’s premises. The tenant may want to sue the landlord, but if the tenant’s insurance covers the loss, the tenant and insurer cannot sue the landlord. Rather, the tenant’s insurer will have to pay the tenant for the losses, but it can’t exercise its subrogation rights and step into the tenant’s shoes because the tenant has no shoes! Failure to obtain waivers or insurance may be a breach of the lease, which puts an unadvised tenant in a tough position. What’s more, many insurers are now refusing to insure tenants who are required to sign a release. Accordingly, it’s not only prudent to ensure that your tenant has a full understanding of the insurance provisions, but it’s also prudent to ensure that the insurer reviews the entire lease and approves all terms before the tenant is bound. Natalka Falcomer is a lawyer, real estate sales agent and Certified Leasing Officer who has a passion to make the law accessible and affordable. She founded, hosts and coproduces a popular legal call-in show on Rogers TV, Toronto Speaks Legal Advice. She founded Groundworks, the only firm specializing in commercial real estate law that offers flat fee rates, online delivery of legal work and a guaranteed turnaround time. www.groundworksfirm.com REM

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38 REM APRIL 2017

What every sales rep should know about design Real estate professionals can improve their service to clients and enrich their own experiences by focusing on some design issues. By Penn Javdan

ontrary to popular opinion, architecture and design are not the sole preserve of architects and designers. Other stakeholders stand to benefit from having a foundational knowledge of design. Real estate professionals can improve their service to clients and enrich their own experiences by focusing on some design issues.

Site approval Perhaps the most important component of design is site approval. Bill Hicks, an international architect from Hicks Design Studio in Oakville, Ont. reminds us that design always goes hand in hand with what is permitted to be built on site via the building code and environmental guidelines. This may seem obvious, but many clients overlook just how intricate the limitations and restrictions can be. They only learn about them after they’ve purchased a lot. Hicks says that “whether potential clients desire a renovation or a new build, they often don’t realize they can’t design their homes the way they want to until it’s too late.” Clients would be wise to solicit the advice of experienced architects in assessing the design potentials of the lot or home they are considering before they actually purchase it. By doing this, they will have a realistic picture of all the possibilities and the likelihood that their design visions can be brought to life. This is a strategic step that is pro-active in nature – it goes beyond the mere surveying of a lot once the property is purchased.

Architectural style: details, details, details While many clients know what they like when they see a property, they aren’t able to articulate fully what they are actually looking at or how a space will affect them in light of their lifestyles. Because real estate professionals are often one of the first lines of defence in a transaction, they can assist in the viewing and explaining of architectural features and styles when they are listing, selling or seeking to generate new leads. It is not enough merely to visit the property or memorize the brands a client might want. It is crucial for salespeople to take one step further and educate themselves on the history and types of architecture in the areas in which they work. Whether it is classical, medieval, modern, transitional or contemporary, salespeople and brokers will strengthen their conceptual arsenal and design vocabulary and in turn communicate better with their clients if they have a more comprehensive understanding of the way style and detail interacts with the particular markets of concern.

Green building and energy efficiency Salespeople who familiarize themselves with emerging technologies and listen to what their clients need, and are then able to make specific recommendations, will put them in an elite group when it comes to customer service. Unfortunately, too many salespeo-

ple have only a cursory knowledge and understanding of just how effective green building can be for their clients. From a single item such as a heat recover ventilator to an entire system in a house that addresses electrical, plumbing, HVAC and insulation, recommendations are crucial for the comfort, health and safety of a client. Green building is becoming ever more affordable. What was once considerably more costly, Hicks says, “is now only nominally more.” But the advantages far outweigh the costs. By 2030, new homes will have net-zero energy use. The sooner sales reps verse themselves in this emerging reality, the better off they’ll be.

Form and function No matter how pleasing a design is to the eye, it must please all the senses. The relationship between how well appointed and arranged a space is must be a direct result of how comfortable and functional that space is to live and work in. There is no such thing as a beautiful but impractical home. When working with clients, sales reps must help them under-

stand the interplay of this relationship. No matter how wild or mundane a design vision, it is possible to design a home or find an existing one that addresses this fundamental fact.

Longevity and maintenance Coffee machines and cars come with maintenance schedules and standards – why not homes? Getting clients to understand the importance of routine maintenance, whether performed by the homeowner or a hired hand, will help improve the performance of the home and achieve its desired function. A well-designed home must allow for the proper maintenance of all systems. Before or after a client purchases a home, salespeople can help them formulate a maintenance schedule in conjunction with the requirements of the property.

Subjectivity People disagree over what is beautiful, what is ugly and what goes unnoticed. While sales reps can educate and strategize with their clients, it is always helpful to

remember that while there may be timeless principles of design, taste is in the eye of the beholder. Salespeople must at the end of the day balance their client’s desires with insights that will help fulfil their client’s wishes.

The bigger picture: holism and collaboration Clients want to feel that they are in good hands. The best way for a sales rep to approach a commitment to them is to guide their clients toward their intended choices by instilling in them an understanding for design on one hand, and by setting reasonable expectations on the other. Design is a collaborative effort. It involves the knowledge and effort of various stakeholders: the architect, designer, builder, client and real estate professional. As Hicks reminds us, “Everyone should do their part so that each of us can perform optimally.” When that is done, everyone can appreciate what design is finally meant to do: serve the mind, body and the soul. REM

MARC SALTZMAN, HOST MY FAVOURITE APP

40 REM APRIL 2017

More leads from your website: Lead generation forms By Robin Wilding

arning leads to your real estate website isn’t magic – it’s science. The first part of that scientific formula is getting traffic (potential leads) to your website; the second part is converting that traffic – asking for the business! To read more on the formula, refer to my article 5 steps to skyrocket website leads on remonline.com. Imagine hosting an open house where you don’t ask for a follow up. You’d be missing an opportunity. Same with online. Earning leads online is about asking for the business and the way to do that is

through lead-generation forms. Before we tell you where to put a lead-gen form, let’s address what it is. A lead-gen form is an opportunity for your website visitors to give you their contact information. This isn’t simply “given” (unless you’re a high producing agent they already know and want to work with), it’s earned. They need to be attractive enough to garner attention and convincing enough to warrant people giving up their precious contact information.

The six best places to put lead-gen forms Having an attractive and convincing offer is critical – but so is the location of these forms. The following six items are the topdelivering spots based on behind

the scene research from the clients of REwebsites and are listed in order – starting with the most important positioning. 1. Pop up: While “pop up” has become a dirtier word than mud, or timeshare, this is the most effective lead-gen form there is. An average of 50 per cent plus of leads come in through a website’s pop-up lead generation form. 2. Top bar: A top bar lead-gen form is one that is at the top of a page (above the menu) and often follows you down the page along with the menu. These forms bring in an average of 30 per cent plus of the leads that a website generates. 3. Scroll boxes: Scroll boxes are call to action forms that generate leads, but only activate and pop-up (generally in the right- or left-hand corner) once a reader

scrolls down to a certain point on the page. A common point is after the user scrolls 50 per cent down the page. These can garner up to 30 per cent of total leads. However websites don’t generally use the scroll boxes, top bar and pop-ups at the same time. 4. Sidebar: A sidebar lead-gen form is in the sidebar of a website – the reoccurring element on pages on the right- or left-hand side – that shows on most pages with the exception of the homepage. As this is located on most of the pages of a website it has the most views after the pop up, top bar and scroll box. And the better the real estate, the more leads you will receive. 5. Embedded forms: Embedded forms are lead-gen forms on your website that are unique to that specific page (not a

Invest in your most powerful currency By Dan LeFave very day we wake up with a limited supply of energy and eventually we need to sleep. Similarly, we have a limited amount of thoughts that we can think daily. Since we must sleep approximately a third of our day, we can only invest so many conscious thoughts, what I call our mental currency. What if I were to give you currency to go out and purchase what you want, and you took this and instead purchased what you don’t want? Then when you got home you would wonder why your life is filled with things you don’t want. That’s just insanity. Why would you take a currency and spend it on what you don’t want? The currency that you have is your thoughts and your imagination. Why would you use it to say I

am not good enough, I am unlucky, I can’t or I am not smart enough? You are throttling your potential! What about our daily mental investments? What about our mental currency? Think of each of your thoughts as a currency and consider for a moment whether you invested wisely today. When it comes to your mental thoughts, did you carelessly think in ways that will invariably lead to problems, losses and headaches? Why do most of us buy things we don’t want? What is the root cause of this epidemic? What we think and feel, we create. And we create precisely what we believe in. Our thoughts are constantly being deposited as down payments towards a future outcome. The cause of this problem resides in our beliefs and our chronic way of thinking and the effect is unhappy thoughts and feelings. For example, if we were to look back on an experience such as having a house foreclosed and recall the many thoughts we had and the

actions we took, we would soon realize that we invested our thoughts extremely poorly. Each thought layered on top of the next one builds a bridge to the thing we feared the most, like being homeless. Our thoughts become our things whether we like it or not. Every day, our thoughts and words are shaping our experiences, good, bad or indifferent. We possess all the power in the world to have all the money and the lifestyle of our choice, but we waste it away and blame others and deny that we were a significant part of the cause. Why? At the root of the cause is a century of wars, famines, economic turmoil and a clear lack of education about how the science of our mind works and the universal laws that govern our mind. We suffer day in and day out without the slightest shred of awareness that we are our own creators of happiness and frustrations. We are either prospering or poisoning our minds with our

thoughts and because of mental blindness, our mental currency is washed down the drain with our hopes and dreams. The good news is that it’s not too late to change things up! Now that you are aware of what’s been holding you back, there’s a clear and definite way that you can take control of your thoughts and move towards achieving you most desired goals. Thoughts are mental energy; they’re the currency that you have to attract what you desire. Learn to stop spending that currency on thoughts you don’t want. Dan LeFave is the “Prepare for anything” coach, author, speaker, habit-changer and the creator of the online program Waking Up Productive - 12 Strategic Ways to Multiply Your Productivity While Working Fewer Hours. He says,”The thoughts you habitually think have the tendency to actualize themselves in physical conditions.” www.danlefave.com REM

pop up, not in the sidebar or top bar) and generally come after the content (although for long pages they can be half-way through so you capture the lead before the reader stops reading). These can be effective as they can be uniquely catered to that page’s content – for example, if that page’s content is about homes in X neighbourhood, that lead-gen form could be about “Homes in X neighbourhood most likely to increase in value”. While they can be effective for readers on that page, they won’t be viewed nearly as much as other options, which is why they garner five per cent of leads or less generally. While the percentage of total leads is smaller, they can be good-quality leads because the user was searching for information on that particular topic. 6. Landing pages: Landing pages on your website are commonly used to siphon traffic from advertising campaigns. It is hard to give a percentage on these in terms of total overall leads because they run separate from the rest. They perform well if they use a tempting offer or intriguing information and can earn anywhere between two and 30 per cent of the traffic sent directly to them. While having any lead-generating forms on your website is better than not having them, placing them strategically is of critical importance. Using only embedded forms on a few pages of the website can reduce your overall lead generation to five per cent of its total potential. But of course you need to use them in a way that complements the overall design and isn’t overly intrusive. Don’t use too few or you’re losing leads. Robin Wilding is the creative mind behind Real Estate Websites Canada (http://real-estate-websites.ca), a boutique real estate online marketing company hyper-focused on lead generation. She also runs the Facebook Group, “Canadian Realtor Tech & Marketing”, an ad-free group that has some great tips for sales reps and a forum to discuss things that have (and haven’t) worked for them. Https://www.facebook.com/groups/5 REM 60248634136535/

REM APRIL 2017 41

Using procrastination as a positive R

emember those good old days back in college when you knew you had finals lurking just a couple of weeks away and you committed to study a little bit each night? You promised to be disciplined and not wait to cram everything in at the last minute. And what happened? Sure enough, finals week was staring you right in the face. The proverbial all-nighter is inevitable. You are now cramming for exams and scrambling to finish your projects. Panic sets in and you wonder how you let this happen, swearing that you would be disciplined as the semester was coming to a close. Why do so many people wait until the last minute? Why don’t they spread their workload out over a realistic timeframe? The bottom line? We procrastinate! Procrastination is part of human nature. We live in such a fast-paced society that forces you to juggle multiple balls on a daily

basis that getting to your priorities seems to always have delay. But while procrastination may lead to a last minute, stress-filled scramble, it also has its advantages. So what is the advantage of procrastination? The more you wait on accomplishing a project, task or creative endeavour, the more time you have for your ideas to simmer and develop. Ideas can mature in your subconscious without you realizing it. As you procrastinate you give yourself more time for ideas to mature. It serves as an incubator for your ideas. As we amass multiple ideas in our mind, we start connecting the multiple ideas to formulate new ones. Procrastination helps this process develop. When team members have brainstorming sessions, multiple ideas are put on the board. As we look at the ideas, we start to combine them to form new ideas. This is how creativity happens. It’s

connecting the dots of multiple ideas that brings about new ones. In other words, it leads to great achievements and innovation. We kick ourselves for not being more organized in advance, but we often perform better under pressure. Also, we can expect our past experiences to kick in when we perform. Great sales people are known for thinking on their feet. Sometimes quantity is better than quality. The quantity of ideas you have can lead to new ideas that are unique and creative and just might fit the customer’s needs. This makes total sense to most sales professionals. We multi-task, having many different tasks to perform for numerous accounts and that can help us be more original and creative. It’s like when your kids were playing football or any other sport; their grades were better than when they were not playing sports. You are more productive when you are busy. The more output you have, the more

chances for originality. So the bottom line when preparing for a listing presentation or developing a marketing campaign is to gather your team members and generate as many ideas as possible as to why you’re the right fit. Ask, “What can we communicate about our team, our value or competitive advantage?” The more quantity of ideas, the better your chances of getting the quality ideas. You need to leverage all your experiences to become more original. It’s been said many times that you learn more from the sales you lose than the sales you win. That’s where you gain experience. You learn from your mistakes and for the next opportunity you have more experience and insight as to what can work versus what might not work. You learn how to read customer situations as you relate them to those in the past that were similar. In other words, what’s worked versus not worked. When the pressure mounts at

By Stu Schlackman

the last minute to do a listing presentation or a showing, realize that all the experience you’ve acquired over the years gives you a mental advantage in preparing that you just might not realize. You never learn from mistakes you’ve never made. The next time you’re down to the last minute in preparing for a customer, realize there might be a silver lining in those final moments of preparation. Be open to the fact that a great idea for the customer might be just minutes away. Good selling. Stu Schlackman is a sales expert, accomplished speaker and the author of Four People You Should Know and Don’t Just Stand There, Sell Something. With over 25 years of success in the sales landscape, he provides his clients and audiences with the wisdom, techniques and practical advice to compete and win in business and in life. For more information: REM www.StuSchlackman.com.

42 REM APRIL 2017

Where everybody knows your name Why growing your business in 2017 means selling like it was the 1980s

By Reuven Gorsht

f you grew up in the 1980s like I did, you’re probably singing along to the theme of Cheers, one of the most popular TV series of all time. Cheers’ theme song pretty much laid out what the show was all about. Cheers was a Boston-based bar that had such intimate relationships with its patrons that it felt almost surreal. Growing up in the ’80s, almost every neighbourhood had their local version of Cheers, where friends regularly gathered to eat, laugh and share stories. Fast forward 25 years. Places like Cheers have been replaced by the usual cookie-cutter coffee shops or bars where the chances of someone remembering your name or favourite drink are slim. Customer intimacy and relationships have been replaced by

agent again, according to a consumer panel at Inman Real Estate Connect San Francisco. Why only 17 per cent? Were they not happy with their agent? Was the experience bad? Not at all. In fact, 85 per cent of buyers and sellers surveyed after a transaction indicate they would use their agent again. So what gives? The top reason for this “gap” will probably not make sense at all. Homeowners do not rehire their real estate agent because they simply cannot remember their agent’s name. The same person, who helped them make one of the largest financial decisions of their lives, has his or her name faded into the oblivion. How is this even possible? We live in a world that’s never been noisier. From social media bombarding us with endless Facebook feeds, to the dozens of new tools and ways to communicate. Attention is a scarce resource – a person has only so much of it, and eventually, everyone forgets. The bad

So you’re probably thinking, what’s the good news here? How can I begin to cut through all this noise? Before you start thinking about increasing your marketing budget or sending more holiday cards, there is a light at the end of the tunnel, and it’s going to take a trip down memory lane to the 1980s, or watching a couple of reruns of Cheers. Think about why you buy from a particular brand or establishment. There are many factors that could impact the purchasing decision, but first and foremost, we are conditioned to choose businesses and brands that make us feel good and give us a great experience. There’s a good reason why the Apple store is always packed, or why Starbucks does $21 billion in annual revenues with less than $250 million in marketing. Everyone has a story or two about a great experience that they tell all their friends about. Your role is to deliver and create memorable

Homeowners do not rehire their real estate agent because they simply cannot remember their agent’s name. apps, loyalty points and databases that are doing a mediocre job at best. Just like the era of Cheers has faded away, so has the holy grail of customer loyalty, traded in for scale, volume and systems. Today, businesses are losing an estimated $1.3 trillion a year from customers who are defecting to the competition. Selling real estate is no different. A dismal 17 per cent of homeowners actually use their

news is that it’s only going to get much harder to be remembered. While social media has empowered the average person to reach clients in ways that only massive businesses could afford to in the past, realize that you’re competing on a whole new playing field with millions of others. Consumers are drinking information from a firehose and we’re all competing for the ultimate prize – a client’s attention.

moments that not only have your clients remembering your name, but also telling their story to others. Whoa, that sounds hard, right? Actually, it’s much easier than you think. Often, it’s the small things that are most memorable. The lunchtime meal you had wasn’t that great, but you sure remember those nice chocolates they brought with the bill.

Reality is that your client is not going to remember that you negotiated until you turned blue to get them an extra $10,000 on their home. They’re not going to remember the fancy $300 gift basket you got them on closing. What they will remember are the little, unexpected things. What’s the secret sauce to create something memorable? You have to make it genuine, valuable, and unexpected. Here are some examples: • Michael nearly doubled his referrals by making it a practice to show up with a pizza on his clients’ moving day. Thirty minutes of time and $20 worth of pizza go a long way when Michael’s clients are having a long and super-stressful day. That’s something they remember and you can almost bet that story will get mentioned at his clients’ housewarming party. • Jeanne noticed her clients were complaining about how dirty the windows were when she first showed them their new home. A day after they moved, Jeanne took the initiative to schedule a window cleaning for her clients. Jeanne helped her clients when they didn’t expect it. Seven months later, the same clients used her to purchase an investment property. • Joel sends every prospect he meets a hand-written card. While that doesn’t sound like a

big deal, he recently visited a past client who was a man of incredible means. Six months after Joel sent the handwritten note, his card was still on his client’s desk. The majority of your clients will choose to do business with you based on how you made them feel. We are human after all. The gut is always faster than the mind when it comes to making decisions. Staying memorable takes more than running creative Facebook ads, fancy closing gifts and postcard mailers. It takes a traditional, human approach to building relationships and being genuinely helpful when your clients need you most. Now is the time to become the local “Cheers” in your market. Where everybody knows (and remembers) your name…and they’re always glad you came. Reuven Gorsht is the CEO of MoveSnap, a start-up that helps anyone who is relocating organize and get all their moving tasks done seamlessly. Prior to co-founding MoveSnap, Gorsht spent 15+ years as a senior executive helping fortune 500 companies innovate and evolve their business models and organizational culture. He holds degrees in business and human resources and is an alumnus of the Harvard Business School. REM

REM APRIL 2017 43

5 steps to better time management By Ryan Hodge

eal estate courses teach us what it wakes to facilitate a real estate transaction and abide by the governing rules and regulations. We are given the handbooks and instructors show us the “ins and outs” of the transaction along with the relationship we will have with a brokerage and what to expect. These are absolute necessities when someone decides to enter this wonderful industry. However I believe a number of different fundamentals would be used by new professionals and experienced agents if they were introduced during the licensing process and via ongoing education. In my own experience I see agents and managers struggling less with paper-

work and more with running their careers like a business. The most common challenges I hear as a broker/owner of a real estate company have to do with time. “I don’t have time for lead generation.” “I’m too busy to come to a meeting.” “I’m so busy that I can’t make time for my health.” “My clients are running me off of my feet and I don’t have time to build systems.” “I’m so busy that my relationship is suffering.” There are 168 hours in every week. These hours exist for all of us. What you choose to do with them is what will separate you from your competition in business and in life. Complete this small exercise as a study of your own personal time. Write down your answers and treat them as a place of discovery. Write down how many hours you sleep in a week.

Write down how many hours you dedicate to fitness, health and personal development. How many hours are in your work week? If you’re a workaholic like me, give yourself 80 hours to be safe. Determine the amount of time you have left over. For example 168-42-14-80 = 32 hours. These 32 hours are the most important time to block first. It is the time you can dedicate to both the joys and absolute responsibilities you have in life to feel fulfilled in serving yourself and others. Block off any family time, date night with your spouse, commitments you must keep outside of work and personal time for you yourself. With crystal clear purpose and intent while having a complete understanding of what serves you best, you have now dedicated enough time to take joy in life, to sleep, to stay fit and healthy, and work an 80 hour week, which may or may not be necessary for each individual’s time requirements for

success. This is a moment to stop and reflect on the process so far. Are you comfortable and balanced with the blocks of time to which you’ve now committed? Do you feel balanced regarding your 32 hours or do you need more time to accomplish more in your personal life? There is no right answer. You get to decide and you are a reflection of that choice. As you study where you are spending your time, you will begin to develop efficiency tactics that will create far more time for you in both the personal and business spaces. Here are five suggestions for productivity when it comes to time management: • Block 90 minutes of personal development time five days per week. Whether you’re into the gym, meditation, walking or reading “non business” books, find something that is just for you. • Block two hours per day, five days per week that are strictly dedicated to lead generation. This is non-negotiable time for prospect-

ing or recruiting with a proven system that works for you. • Block 30 to 60 minutes per day for content creation. Whether you blog, video or are a strategic social media marketer, I suggest you do this early in the morning. • Give yourself a time audit for the tasks that someone else could be doing for you such as paperwork or data entry. Consider leveraging an administrative assistant even if it is for 10 to 15 hours per week. How much time would that free up for you for lead generation? As you grow into your business, you can consider these time audits quarterly. • Dedicate two hours per week for business learning. Whether it’s a new business book, a course held at your brokerage or a seminar you attend, it’s crucial to learn and adapt with the ever changing real estate industry. Ryan Hodge is broker of record/owner of The Realty Firm in London, Ontario. www.therealtyREM firm.ca

C NTTUR CE URY Y 21 B.J B J. ROTH REA EALTTY LTD. | BARRIE, ON

#1Fuundraiiser in Canadaa

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Easter Seals is part off ou ourr br b okerag ages culture. Our motivation is kno owi wing thatt the kids have inc cred dib ble free edo om at the e Easster Sealss Ca amps.” – Bernie Roth, Owner, CENTURY 21 B.J. Roth Realty Ltd. (Left to t right) Ron O’Neil (CENTURY 21 B.J. Roth Realty Ltd. ) presents cheque to Kevin Frankish, CENTURY 21 B.J. Roth Rea alty Ltd. meets Brandon Liston, CENTURY 21 Easter Seals National Ambassador and Bernie Roth (Owner) accepts an award d on stage with Brian Rushton, EVP CENTURY 21 Canada.

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44 REM APRIL 2017

Cushman & Wakefield’s new national headquarters encourages flexible work options C

ushman & Wakefield’s new Canadian headquarters at Bay and Front streets in Toronto offers employees more flexibility in the way they choose to work, with movable walls, sit-to-stand desks, focus rooms outfitted with soft seating, and several collaboration spaces with touchscreen smart boards. Spanning two floors, the new workplace has an inter-connecting stairwell that subtly encourages more mobility of staff throughout the day, the company says, while the strategically designed key intersection points are meant to boost employee interaction across teams. Creating a space that promotes employee engagement was at the forefront of the design, says Chuck Scott, CEO, Canada. “We wanted a workspace that was less siloed and more inviting for employees to engage with one another. One

size doesn’t fit all and the same rings true for how people work. As a firm, we felt it important to create a space that offered flexibility to our employees in both the physical space and how they choose to work.” The relocation and design of the new office is part of the firm’s global strategy of creating a workplace that is much more than just a place to come to work, the company says. “It’s about community and having a space to welcome clients and host large scale client, internal and charity events. It’s a place where wellness and technology come together to drive a productive and happy workforce,” says Scott. “We have a culture of high performance and if we want to get the best from our employees we needed to create a space that supports just that.” The project was

led, managed and implemented by Cushman & Wakefield’s in-house expertise, including the lease transaction, facilities management and project and development services overseeing the design and construction. A designated internal Move Team ensured the seamless transition of over 200 stakeholders across two offices relocating into the new location. Immediately upon entering the space, guests walk past a 35foot embossed Cushman & Wakefield logo spanning the length of the lobby hallway that sits adjacent to a five-screen digital showcase. Clients are encouraged to use the space as though it is their own, offering plug and play capability to work anywhere throughout the office, including the café and lounge areas, focus rooms, collaboration spaces or the various high-

“We wanted a workspace that was less siloed and more inviting for employees to engage with one another,” says Cushman & Wakefield’s Canadian CEO Chuck Scott.

top seating options scattered throughout that are in corners offering up incredible views of the city in every direction. The company’s successes are celebrated on the internal digital screens, promoting high performers, key wins and other achieve-

ments. Healthy snacks and premium coffee, espresso, lattes and more are available. Easy to use technology in meeting rooms and flexible workstations create a more enjoyable work experience for employees, the company says. REM

How personality affects leadership rofessionals in the real estate business prize qualities such as strategic thinking, knowledge of the market and customer service in their quest for business dominance. While these qualities are essential to the successful practice of real estate, two equally important qualities should be noted: personality and leadership. Personality figures prominently in every human interaction. Real estate professionals, builders and project managers are at the forefront of this interaction and it is imperative that they appreciate key leadership styles in order to successfully deal with different personality types. By exploring common leadership styles, special attention can be paid to how to resolve management issues in times of conflict or to prevent conflict. Most leadership styles can be understood by the way they handle decision-making. At one end of the macro managerial spectrum is corporate focused leadership, in which all the decisions are viewed through the prism of what benefits the company. At the other end of the spec-

trum is employee focused leadership, which places the needs of the employees above all else. These styles, however, represent extremes. A truly leadership savvy person would not view the needs of the company as being more important to or in opposition to their employees. There needs to be a balance between both interests – the leaders and those who are led. Often this requires a dynamic and strong individual to conduct and co-ordinate daily business activities, which can be better achieved by considering micro-level leadership styles. They can be categorized by their most prominent features. Dictatorial: A traditional leadership style, this takes an autocratic approach. Leaders retain all power for themselves and delegate little to subordinates. They make virtually all decisions and leave little room for dialogue. Such a style is more appropriate in an emergency, when a project is considerably behind schedule, when new employees are being acclimated to a new position or when rightful authority is being directly challenged.

Bureaucratic: This leadership style focuses on policies and procedures. The leader in this case is someone who steers the ship according to these policies, ensuring they comply with them. It is a bit like those in law enforcement: their job is not to question or alter, merely to enforce. Scenarios that call for this type of leadership are those that operate according to a strict, technical plan with little room for improvisation. Democratic: A more modern approach, this style of leadership allows people from various positions within a team or company to participate and influence goal setting and work operation. This style can be very beneficial for leaders because it solicits some of the best ways of doing things previously not considered, and allows for a harsh scrutinizing of weaknesses in an operation. It works optimally when employees or team members are well educated, experienced and driven; when pressing problems need to be solved and a solution seems elusive; or when grievances require

discussion and tensions eased. Orchestral: Probably the most contemporary and experimental of all the styles, a leader in this case treats employees like members of an orchestra. One of the reasons this is such a contemporary style is because, in days past, very few people had specialized skills and could therefore not be relied on to perform certain activities. Now specialization has reached a point that it is possible to take this leadership approach when employees or team members are highly skilled and desire to succeed independently. These workers must also take great pride in their work. It is not merely about getting the job done. It is about getting it done right and setting an example for others not only in the company, but in the industry. This style of leadership is also most suited to those who can meet set goals with complete confidence; third party experts who act as consultants or other similar temporary workers; or a new leader who lacks experience in a particular company’s day-to-day operations

By Penn Javdan

who wishes to integrate the wisdom and experience of those already in the operation. How can knowledge of these styles help a real estate professional lead a team? Whether you’re a broker, sales representative, office manager, builder, site supervisor or project manager, you must ask yourself a few key questions. What style do I most naturally gravitate towards? Is this style always appropriate for every situation, or must I revise it based on context? Have there been times where I’ve used one style where another was called for? What were the consequences? Long-term partnerships of any kind are built on quality and efficiency from all parties. The ultimate goal is to build trust and get things done as smoothly as possible. Asking these questions puts into perspective the ways in which real estate professionals can go about their business by building on past experiences and integrating their skills with those of others in a strategic, mutually beneficial manner. REM

REM APRIL 2017 45

Chatbots: Artificial intelligence brings customer service back to real estate

By Nick Kljaic he real estate industry continually comes up short when it comes to marrying technology with real estate. Welcome to the land technology forgot. One particular area that surprisingly falls short is the customer service department. Nowadays, potential home buyers and renters do not walk by a brick and mortar real estate office and view available listings from a printed catalogue or listings on a window. Those days have passed. In fact, 88 per cent of home buyers and renters visit a property website before finding their next home according to the National Association of Realtors’ recent survey. The same printed property details and photos may have been digitized but the one thing that has failed to make the same digital transition is the customer service element. This is still the key element for home buyers when selecting a real estate professional. The process of relationship building and customer service, in general, is seemingly diminishing. When you step into a brick and mortar store you are typically greeted by a sales representative who helps you with any typical questions or concerns that you may have regarding a particular product. An online shop doesn’t have that same luxury and some customers often times feel disconnected from the business due to the lack of this personal interaction. Many real estate websites sometimes feel like unmanned

generic stores. You know there are people running the website, but getting in contact with them can be a challenge. One of the false assumptions that the people behind these faceless websites make is that if users are opting to use a website, they probably want to be serviced by the web without an interactive presence. Coupled with a motivation to reduce customer inquiries, some websites go as far as hiding or making it difficult to locate their contact information. This could be likened to walking into a real estate office without anyone physically in the shop. There’s no one to interact with or to assist you with your hunt for your next home – there’s just a catalogue on a table for you to spend endless time scouring through. What if you could be greeted by someone on your next visit to an online real estate storefront? Instead of browsing through the catalogue of properties on your own, what if you could be assisted with your home hunting process in real time? If this “person” could note your specific requirements and suggest a few recommendations to get you started, would this keep your online shop visitor shopping longer on your site? Could it perhaps prompt them to provide their direct contact information? Allow me to introduce you to the real estate chatbot. Chatbot’s response time, memory and knowledge bank would rival any agent within your office. Not to mention the fact that the chatbot also works 24/7 and can keep a conversation going with multiple visitors simultaneously. Chatbot is an artificial intelligence powered assistant built for real estate client interactions.

Examining market expectations While over 90 per cent of real estate brokerages have a website, their most common feature includes property listings (90 per cent) followed by staff photos (71

per cent) and testimonials (40 per cent). If your website has these three elements, you have made it to the top 40 per cent more or less. Perhaps you may have a few other differentiating elements on your site, like an interactive map or some cumbersome home financing widget. But where is the customer service? Is it simply limited to an email address buried somewhere within the website? An online chat component puts your site visitors in direct contact with a customer service representative through short messages that are exchanged in real time. It’s best utilized for quick spur of the moment questions that do not require extended responses – the kind of questions that a visitor may not have bothered taking the time to compose an email to ask. They are looking for more of a responsive service where they can have their questions answered promptly. This is where the chatbot excels. While you are busy with your open houses or viewings, the chatbot ensures that all those marketing dollars you spent driving traffic to your site are optimized for conversions and not gone to waste. Forrester Research found that 44 per cent of consumers say that having questions answered by a live person in the middle of an online transaction is one of the most important features a website can offer. An ATG Global Consumer Study discovered that 90 per cent of customers consider live chat helpful. Clearly, the surveys support having a live chat, while at the same time 46 per cent of real estate brokerages cite keeping up with technology as their primary challenge. Installing a chat widget on your site will definitely put you ahead of the pack, but who is going to man that station all day long? You guessed right – real estate chatbot. Nick Kljaic is the co-founder of Apartment Ocean, which recently developed a real estate chatbot. He has been involved in real estate tech for many years, working with real estate companies and helping them to improve the process of buying/renting properties. Passionate about real estate and technology, he is always looking to connect with real estate professionals. Email address: nick@apartmentocean.com REM

Announcement Please join us in welcoming Perry Smith and Kerry Hendren, Team Omemee! Perry has been working in the Omemee area as an award winning realtor for six years. His previous experience in carpentry gives him the advantage of extensive knowledge in home construction. Kerry has been involved in real estate for 11 years, and has resided in Omemee for 17 years. He is also heavily involved in local charitable organizations. Both of these incredible sales representatives have detailed knowledge of their home base in the Kawarthas, Peterborough and Durham Region and will be working out of the RE/MAX All-Stars Omemee location. Welcome, Perry and Kerry! We are excited to see you grow! All-Stars 32 King St. E. Omemee Grow With Those Who Know! L: Perry Smith R: Kerry Hendren

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46 REM APRIL 2017

How to blog when you don’t have time By Kim Rempel

or real estate agents to get noticed online, blogging is a critical part of a digital marketing campaign. But who has the time? And even if you manage to carve out time, you still have to think of what to write and how to write it. Luckily, blogging doesn’t have to be as difficult or time-draining as sitting down and trying to pen a masterpiece. There are options to blog simply and efficiently. 1. Video blog: Smartphones make video blogging one of the fastest, easiest options for creating content. When a fantastic idea hits (they have a way of popping up during a commute, don’t they?), there’s no need to wait until you’re

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back at the office. Just whip out the phone and take a video. (Pull over first, if you’re driving, of course!) It can be as complicated as a well laid out webinar created as part of a sales funnel, or it can be a simple greeting or thought for the day. The key to remember is to draw traffic to your site by featuring the video there, not just on social media. With video content production and consumption on the rise, video blogging is an important element to include. 2. Photo commentary: A picture is worth a thousand words or, in this case, an hour or two of writing. Compelling images command clicks. A blog post can be made up of largely photos, with brief commentary in between, or can be a single photo and a paragraph or two relating to it. The trick with this one is to feature imagery that conveys a point, tells a story or elicits emotion in line with your goals or

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brand. The commentary you add makes the image specific to you personally, or relevant to your industry. For example, TerribleRealEstateAgentPhotos.co m does this by simply adding witty single-sentence descriptions to Realtor-submitted photos. TheLighterSideOfRealEstate.com also includes the use of photo blogging in an infographic. 3. Interview: Interviewing an industry pro is an easy way to add reach and credibility to your site. Mortgage specialists, insurance brokers, interior designers, landscapers and local businesses offer a wealth of knowledge your readers want to know. The process is easy too. List five to 10 questions in an email along with an invitation to be featured on your blog. When they send it back, you can print it pretty much as is. All it needs from there is an introductory paragraph from you. If your subject finds email questions too daunting (they’re busy too, and writing may not be up their alley either) recording a Skype interview with them is a quick and easy alternative. 4. Use a cheat sheet: There’s no need to reinvent your blog post every time. Even the biggies use a template to guide their writing. (See the template of Micheal Hyatt, https://michaelhyatt.com/ anatomy-of-an-effective-blogpost.html, a busy author, speaker and businessman.) Also, grab a list of killer headlines (they’re out there) or keep a

Luckily, blogging doesn’t have to be as difficult or time-draining as sitting down and trying to pen a masterpiece. running list of writing prompts and topic ideas as a sure way to fight blogger’s block and keep that content flowing. With these tools on hand, blogging becomes more about expressing the idea and less about trying to come up with one. 5. Get it done for you: Good news – you can delegate blogging! And there are a few ways to do it. a) Curate milled content. Quality is dicey with milled, reusable articles, but it may be worth the effort of searching. Sites like BrandPointContent.ca or NAR.realtor.com (https://www. nar.realtor/articles/what-is-therealtor-content-resource-rcr) can provide articles for reprint on a variety of topics. They won’t be the personal, authentic kind of content that makes readers like, know and trust you, but it will create links, show you’re active and give you some breathing room in between those highly authentic blog posts, should you choose to write them. b) Hire a ghostwriter. Add a writer to your team. Think of it as a marketing expense of the modern salesperson. With a skilled

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DO YOU KNOW WHAT TO DO IF THIS HAPPENS: • You have a small claims court matter to deal with? • Your client has a “tenant from hell”, and he/she has to be evicted? • Your client wants to reduce his real estate taxes? (A way to get more listings: offer this service.)

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writer, knowledgeable in marketing and real estate, your content will be top quality, highly customized and have that personal authenticity milled content never will. c) Hire a marketing-minded editor. If writing isn’t your biggest struggle, crafting content that actually sells or garners any kind of attention may be the tough part. Perhaps your posts just need some tweaking from a marketing perspective (keywords, SEO, compelling titles that get clicked). You may just need a marketing-minded editor. Writers and editors can both be found through referrals, online searches or through professional associations. As with hiring anyone, finding the perfect fit for you will be a process of trial and error, but well worth it when you find the right writer for you. With multiple blogging options available, lacking time isn’t an excuse anymore. Blogging is a critical part of growing your visibility online. Bonus: Don’t know what to write? One of the biggest challenges besides lack of time is knowing what to write, isn’t it? Here’s a quick fix to help get your creative juices flowing. Set aside 30 minutes to brainstorm. List topics you want to cover, scan what posts are popular on other sites, or search for a list of blogging topics to kick start your creative thinking. Kim Rempel, investor, writer, and entrepreneur, helps real estate professionals and business owners create content that gets attention. She says, “Leverage what you know to help your business grow. That’s the power of content.” Visit her website, www.RealtorBlogging101.com REM

REM APRIL 2017 47

THE PUBLISHER’S PAGE

By Heino Molls

MARKETPLACE

ne of the great baseball players back in my day, Yogi Berra, was credited with sayings called “malapropisms”. He had many famous quotes that included, “It ain’t over till it’s over” or “90 per cent of this game is mental, the other half is playing.” Once when talking about a restaurant he said, “Nobody goes there anymore, it’s too crowded.” Yogi at one point ironically was quoted as saying, “I never said half the stuff that I said.” I have many favourites. One that really stands out after all these years is, “You know, you can see a lot of things just by observing.” It seems like a silly saying but as a person who has observed the real estate industry now for almost 40 years, I find it to be most profound. I have seen a lot of things in life and in the business of real estate.

You can see a lot of things just by observing Given time I am certain I could explain how they are the same. I remember in the ’50s and ’60s when many real estate businesses had shingles out that said “real estate and insurance” because many brokers offered insurance as well as real estate services. You don’t see that much today. I recall in the ’70s when there were so many real estate storefronts that you could barely go a city block without passing by about two or three. You don’t see much of that anymore either. In the ’80s, however, I saw the most changes to real estate. The

biggest impact to the whole business of real estate in Canada was when Frank Polzler and Walter Schneider rolled out stunning changes and a new franchise called Re/Max. I also remember the dramatic merger of two real estate giants, Royal Trust and A.E. LePage. They formed the powerhouse company, Royal LePage. Through the ’80s I saw Century 21 solidify its place as the strong anchor to changes the industry was experiencing. I saw new companies emerge, each one with a unique style and new systems. Two of the solid business plans that became

The great change that I am observing today continues to be the emergence of real estate teams.

mainstays of the industry to this day are Sutton Group and HomeLife. I remember all the excitement when the big companies Coldwell Banker and Prudential came to Canada from the United States. I also recall the sadness when some companies shut down or were merged, including Guaranty Trust, Realty World, Montreal Trust, NRS Block Brothers and Countrywide. There was certainly a lot to observe. I am only mentioning a small portion of the great changes that took place in that decade. The dynamics of the entire industry and the character of the real estate community changed as well. There were so many new companies across the country, each one with a style and elegance of business practice that they deserve so much more space in the telling of their story. The great change that I am observing today continues to be the emergence of real estate teams. I find this to be the most invigorating movement to the industry in

the last 40 years, perhaps even 50 years. It is by far the most exciting change of all because it seems to embrace all the good elements of real estate that I saw back when I was young and walking the blocks of my city. Back then many real estate companies had storefronts or offices. The principal of the company was a leader who set the tone and the style for the company. Now, each person in the team has a meaningful role that goes beyond just being a part of the group. Teams are part of a larger, powerful independent brokerage or franchise but have an image that makes them familiar, approachable and friendly. All the good parts of the real estate business today are in these teams. Many teams are connected to the latest in mortgage services, legal counsel, stagers, landscapers, decorators and every other element of a real estate transaction. It doesn’t just remind me of the days when you would see “real estate and insurance” on a shingle, it has the possibility of going much, much farther. These are amazing times in real estate. Heino Molls is the publisher of REM. Email heino@remonline.com.

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