July 2014 by Real Estate Magazine (REM)

Issue #301

July 2014

25 lessons we learned in 25 years Page 8

Turning green power into selling power Page 10

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

Two views on condo prices Page 24

Tech-savvy grandma How Gloria Valvasori stays on top Page 12

RE/MAX: MOST SALES AMONG OFFICES & AGENTS TRANSACTION ENDS: AVERAGE PER AGENT RE/MAX agents averaged 61% more transaction ends, compared to the average of all other agents at the largest brokerages.

2014

RE/MAX

13.6

Century 21

Competitors

10.4

12.0

SALES VOLUME: AVERAGE PER AGENT RE/MAX agents averaged 43% higher sales than the average of all other agents at the largest brokerages.

11.4

Realty Executives

Keller Williams

HomeLife

SOLD

14.7

Sutton

Royal LePage

Of the 250 Canadian real estate brokerages with the most sales, 158 are branded RE/MAX. The source: the 2014 REAL Trends Canadian 250 survey. The same data shows RE/MAX averaging 60% more transaction ends per agent than competitors.* RE/MAX agents closed

16.1

15.6

EXIT

Coldwell Banker

CANADIAN 250

SOLD

16.1

10.8

RE/MAX

5.7

10.4

Competitors

million

6.1

252 QUALIFYING BROKERAGES BY BRAND

58% of the 485,930 transaction ends in the survey, and 54% of the $184 billion in sales

Royal LePage - 27

volume.

RE/MAX

158

Coldwell Banker - 20

of the qualifying Canadian 250

Keller Williams - 13

*Rankings calculated by RE/MAX based on 2014 REAL Trends Canadian 250 data, citing 2013 transaction ends for the 252 largest participating brokerages. Per-agent averages include brokerages reporting agent count. ÂŠ2014 RE/MAX, LLC. All rights reserved. Each RE/MAX office is independently owned and operated. 140595

Non-Franchise - 10 Century 21 - 8 EXIT - 6 Sutton - 6 Realty Executives - 2 HomeLife - 1 Better Homes & Gardens - 1

Take Your Career To The Next Level. Each office is independently owned and operated.

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REM JULY 2014 3

Sandhu says Re/Max Legacy situation ‘extremely troubling’ “We had a responsibility to our Realtors to act.” By Tony Palermo

urinder Sandhu, Re/Max Ontario-Atlantic’s executive vice-president and regional director, says Re/Max executives made the decision to terminate Mississauga-based Re/Max Legacy Realty only after several attempts to ensure the financial viability of the Legacy franchise were refused outright by broker of record and owner Tariq Khursheed. Sandhu says when Re/Max learned last year that Legacy was having financial problems, it went into solutions mode and presented four separate proposals to Khursheed. He says while he can’t discuss the specifics of each proposal, Khursheed rejected each of them. “There were a number of solutions presented to ensure the financial viability of Legacy,” says Sandhu. “After our fourth proposal was rejected and (Khursheed) cancelled a meeting with our lawyers in another attempt to find a solution, we had to step back and reassess. Our primary responsibility, first and foremost, is to our agents and Re/Max takes that responsibil-

ity very seriously. We had a responsibility to our Realtors to act.” Re/Max Legacy opened in 2010. In 2012, the brokerage purchased Re/Max Professionals, the first Re/Max office in Eastern Canada, from owners Pamela and John Alexander. Pamela’s father Frank Polzler opened that office in 1980. Sandhu says the brokerage has not made any payments since September 2013 and owes Re/Max Integra, the parent company, substantial franchise fees. He notes each franchisee has its own business model for how much it charges its individual sales reps, but Re/Max charges the franchisee $278 a month per sales rep. Based on the approximately 350 former Re/Max Legacy Realty agents, that means Re/Max Integra is owed nearly $800,000 for the period covering September 2013 to April 2014. Saying it’s extremely troubling, Sandhu wonders how, given the positive economics the real estate industry has been experiencing, Legacy could be facing such financial problems.

“This is the best real estate market in the world and for Legacy to be in such financial difficulty means there’s a significant challenge there,” says Sandhu. He says Re/Max Integra was bound under its contract with Legacy not to inform anyone of the situation. But it became clear after several proposed solutions were rejected and the latest meeting was cancelled by Khursheed, Re/Max had to act to inform and protect its Legacy sales reps, he says. The only way it could do that was to terminate its agreement with Legacy. It appears Khursheed, who is now operating as Legacy Realty Inc., has the backing of many Legacy agents. On May 28, approximately 100 agents protested outside of the Re/Max corporate office at 7101 Syntex Drive in Mississauga. Peel police confirmed that they attended the location for crowd control and to help keep the peace. On Khursheed’s Facebook page, several agents have voiced their support and loyalty to him. However, at least one agent has mixed feelings about the whole sit-

uation and says it’s not just a matter of loyalty. In a Facebook post on Khursheed’s wall dated May 27, Moezzam Alvi writes “I too wish Legacy to continue. BUT, we MUST NOT forget in our enthusiasm and admiration of Tariq without asking why we are in this situation today? We need to address the cause and effect both. Sincerity with Tariq is not to say what he like to hear BUT, what he must hear. My point of view anyway.” Phone and Facebook messages to Khursheed and Facebook messages to a dozen Legacy sales reps went unanswered. Re/Max informed Khursheed at approximately 9 am on Monday, May 26 that it was terminating its agreement with Legacy. Shortly after at 11 am, Re/Max executives met with Legacy agents to inform them of the situation. Sandhu says Legacy agents who choose to remain with Re/Max have the option to move to the newly merged Re/Max Edge Realty, which includes Conrad Zurini of Re/Max Escarpment Realty and Raneen Dhadli of Re/Max Edge

Gurinder Sandhu

Realty, or to Mike Zuccato of Re/Max Realty Services, who is opening a new office in the north end of Mississauga. In a Re/Max news release dated May 26, the company said buyers and sellers currently working with agents from the former Re/Max Legacy brokerage could continue to work with their agent. However, Sandhu says the listings belong to Legacy so agents who choose to remain with Re/Max will require permission from Khursheed to move their listings. Sandhu says while there will be some minor inconveniences that sales reps will have to go through to transfer their business, it is necessary to ensure the long-term benefits and viability of their business. “Again, our responsibility is to ensure the welfare and continuity of our Realtors’ business,” says Sandhu. “Our Realtors and their families depend on their business.” REM

Homeowners happy, confident about purchase

omeowners are “happy with the decision to buy their home,” feel confident they can weather a downturn in the housing market and they consider mortgage debt to be “good debt.” Their attitudes are the same whether they live in Toronto, Calgary or Vancouver where prices continue to rise, or in areas where home prices are stabilizing, says a new consumer survey report by the Canadian Association of Accredited Mortgage Professionals (CAAMP). “From the consumer perspective we have a picture of a very confident, healthy mortgage market,” says Jim Murphy, president and CEO of CAAMP. “Key to the

current stability in the mortgage market is the fact that Canadians continue to pay down their mortgage debt faster than they are required and they continue to take out five-year, fixed-rate mortgages. Canadians who renew their mortgages are seeing their interest costs reduced, which is boosting their personal financial circumstances and this will continue to be a positive force during the coming year.” The survey says: • 55 per cent of homes purchased in 2013 were bought by first-time buyers. • Most Canadians say they have no regrets taking on the size of mortgage they did and that real

estate is a good long-term investment. • 66 per cent agree in some degree that mortgages are a form of “good debt”. • House prices in Toronto, Calgary and Vancouver have increased by a year-over-year rate of 8.2 per cent, compared to just 2.9 per cent in the rest of Canada. • More than 80 per cent of homeowners in Canada have 25 per cent or more equity in their homes. • The average mortgage interest rate is 3.24 per cent, a drop from the average of 3.5 per cent found in the fall 2013 survey. Canadians are reducing their mortgages by negotiating lower

interest rates, making lump sum pre-payments and repaying their mortgages at, on average, twothirds of their contracted amortization periods, says the report. “Across Canada the housing market is slowing and has been on a downward swing since the mortgage policy change in 2012,” says Will Dunning, CAAMP’s chief economist. “While the national market may look healthy, activity in the Greater Toronto Area (including Hamilton), the Greater Vancouver Regional District and the Calgary area is skewing the numbers high. In the rest of Canada sales activity has weakened and house prices are flat and even falling in some com-

munities. Housing has played a key role in driving economic growth and job creation in Canada. But looking ahead, decreased starts and slower price growth will throw off the balance between the housing market and the overall economy.” The report urges policy makers not to confuse rising home prices in the Toronto area and Vancouver, where urban land shortages are driving prices, and the Calgary area, which currently benefits from strong job creation, with the slowdown that is evident in other communities across the country. For a full copy of CAAMP’s spring survey report, visit www.caamp.org. REM

4 REM JULY 2014

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

ocky Gaudrault recently completed the purchase of Re/Max Chatham-Kent Realty. He is a 16-year veteran of technology businesses. “Rocky brings private sector leadership with a heavy accent on customer relations, business automation and strategic planning, as can be seen through his various ownership roles with over 15 companies throughout Ontario,” says Re/Max in a news release. “With a management team providing services from financial to technical expertise Rocky has accumulated assets in the insurance, appraisal and construction industries.” There are currently 13 agents at the brokerage. Peggy Van Veen will remain the broker of record with the firm. ■ ■ ■

step into the shoes of a broker/ owner without having to sacrifice their own commitment to excellent client service in their sales.” The U.S.-based brand describes itself as “a cloud-based, full-service real estate brokerage company.” The company says, “eXp Realty provides 24/7 access to collaborative tools, training and socialization for real estate brokers and agents through its 3-D, fully immersive, cloud office environment, while reducing their overhead, increasing their profits and providing greater service value to consumers…” The company also says it has “an aggressive revenue sharing program that pays to agents a percentage of gross commission income earned by fellow professionals who they attract into the company.” The company has brokerages in 29 states and one other Canadian office in Toronto.

development and commercial sales as an associate broker. He has also served as vice-president and pastpresident of the Revelstoke Chamber of Commerce and is actively involved with groups and committees to promote business growth and tourism in Revelstoke. Uldis Bokis, the former owner, will stay on with the firm as an associate broker. ■ ■ ■

Shannon Unger is the new broker/owner of Re/Max Legend in North Bay, Ont. As she takes over from previous owner Patti Bentley, Unger says she knows she has “big shoes to fill”. The company says in a news release that Unger has a strong understanding of franchise and branding. Re/Max says it currently accounts for 24.7 per cent of the market share in North Bay. The brokerage has 40 sales reps and brokers.

Avenue SW, as well as the addition of exclusive new service arrangements with private aviation services company Albatros Aircraft Corporation operating out of Million Air. “Calgary has undergone a massive transformation in recent years. Top-tier real estate in the city and surrounding areas is in high demand not just from local homebuyers, but from those travelling and moving here from other parts of the country and around the world,” says Ross McCredie, president and CEO of Sotheby’s International Realty Canada. Mary-Ann Mears, managing broker for the brokerage, says, “With the changes that are taking place in the market, home sellers now need marketing solutions that showcase their properties within Calgary, across Canada and around the world. Expanding our operations helps us offer our local and global marketing platform to meet that demand – not only from luxury clientele, but clients with homes at every price point.” The brokerage currently has about 50 sales reps. ■ ■ ■

Willie Ip and 26 sales reps from Urban Realty Group in Calgary have joined the eXp Realty network. “The opportunity to launch and grow the eXp Realty brand in Alberta represents a once-in-a-lifetime opportunity for me and my partners,” said Ip, adding that it is “empowering each of our agents to

■ ■ ■

Royal LePage Revelstoke in Revelstoke, B.C. was recently acquired by Don Teuton. He became licensed as a broker in 2008, specializing in hospitality,

Sotheby’s International Realty Canada is expanding its Calgary operations. Plans include the doubling of the company’s office space at a new location at 815 - 17th

The Real Estate Council of British Columbia suspended the licence of Re/Max Tumbler Ridge Realty in Tumbler Ridge on May 9. “The Real Estate Council suspended this licence in the public interest as a result of the failure of Re/Max Tumbler Ridge Realty to account for trust monies held on behalf of clients,” says the RECBC

Rocky Gaudrault

Shannon Unger

Mary-Ann Mears

Sterling Stephens

Don Teuton

Ross McCredie

Mary Boston

Darryl Mitchell

in a statement. “Re/Max Tumbler Ridge Realty is prohibited from providing real estate services to or on behalf of any member of the public as a result of this order…Inquiries from concerned clients of Re/Max Tumbler Ridge Realty should be directed to the Real Estate Council at 604-6839664 or toll-free at 1-877-6839664.” ■ ■ ■

The Real Estate Council of Alberta suspended the licence of Real Property Management Rentals, a real estate brokerage operating in Medicine Hat on June 2. RECA says the suspension “is the result of Real Property Management Rentals’ broker no longer meeting the qualifications of a broker.” ■ ■ ■

Licensed and affiliated with Re/Max since 1988, Dave Coppins and his wife Noel Coppins purchased an existing Re/Max office in Oshawa, Ont. in 2009. Re/Max Jazz has grown from 48 sales associates to 140, almost tripling in less than five years. Recently the couple opened a second office because they ran out of space, as their agent count continues to grow. ■ ■ ■

Sterling Stephens, franchisee of Exit Realty Metro recently welcomed veteran trainer and coach Mary Boston to his team in Halifax. “Mary’s real estate career is highly diverse,” says Stephens. “She joined us to help coach and develop our new agents; something in which she is very well versed.” Boston’s career began in the late 1980s when she formulated a six-week training course for new agents named Jump Start. The concept was centred on ensuring new agents knew they had to go out and find business and that busiContinued on page 6

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6 REM JULY 2014

Multiple Listings

agents and clients. Now our space better reflects the happy, professional spirit of our company,” says Heidi Noel, Mississauga area manager and broker. “Everyone who walks through the door seems to love it and I’m thrilled to have a better space for training, meetings and other events at this renowned location.”

Continued from page 4

ness did not come knocking. “An initial group of nine new agents are currently working oneon-one with Mary focused on training and accountability and they all love it,” says Stephens. ■ ■ ■

■ ■ ■

Opening the new office of Exit Realty Associates in Deippe, N.B., from left: Andre Malenfant, manager, Exit Realty Associates; Ernest Thibodeau, Dieppe councillor; Steve Morris, Exit Realty Corp. International founder and chairman; Parise Cormier, franchisee, Exit Realty Associates; and Anne Squires, regional owner, Exit Realty Atlantic.

■ ■ ■

Zoocasa has appointed real estate veteran and mentor Darryl Mitchell as broker of record. Citing Mitchell’s two-plus decades of real estate management and strategic development experience, Zoocasa president Carolyn Beatty says, “Darryl has proven success growing and overseeing the development of premier real estate brands and we are confident that he will be a significant asset in fortifying our position as an innovative customer-focused real estate company.” Zoocasa also recently announced the promotion of Joe Tobia to director of real estate operations. With extensive experience in IT in both a sales and technical capacity, Tobia joined Zoocasa as manager, real estate operations less than a year ago. Sandip Dagli, who has been at Zoocasa since 2010, will remain as director of real estate business focusing on agent relations as Zoocasa continues its expansion across Canada, the company says. Formerly with Re/Max for eight years running the Web Services department, Dagli specializes in real estate tech tools. ■ ■ ■

Leading Real Estate Companies of the World has named Sheila Barr director of business development. Barr is responsible for membership recruitment in North America for the LeadingRE invitation-only network of 500+ real estate firms. She most recently served as director of business development for an international franchise organization, where she worked with brokers, relocation companies and corporate clients. Previously, she was a consultant focusing on sales training and business development

In an effort to equip agents with shareable news items gleaned from print media across Canada, Royal LePage is now providing its agents with a daily media monitoring report. “This is content that will help our agents to keep a finger on the pulse of the Canadian real estate landscape,” says Phil Soper, president and CEO, Royal LePage. “It will help them to, in turn, easily keep their clients and prospects abreast of what’s happening in the housing market, both nationally and locally, via their social media channels.” The report is delivered daily to Royal LePage subscribers’ inboxes, via the company’s Leading Edge blog. REM

CMHC announces more mortgage insurance changes

Celebrating the Royal LePage Real Estate Services office renovation, from left, Mike Kennelly, broker/manager; Gino Romanese, SVP, Royal LePage; Heidi Noel, Mississauga area manager and broker; Phil Soper, president, Royal LePage; and Ahmed Helmi, broker/manager.

Recently Parise Cormier, franchisee of Exit Realty Associates, welcomed more than 200 guests and dignitaries to the grand opening of the brokerage’s new location. The 7,000-square-foot state-ofthe-art office is in Dieppe, N.B. “Parise and her staff have created a warm atmosphere that bodes professionalism and a family friendly environment,” says Anne Squires, regional owner of Exit Realty Atlantic. “Everything from the design and the finishes to the

location are in a class of their own.” says Squires. Parise was named Exit’s Broker/Owner of the Year in Canada for 2013. ■ ■ ■

Royal LePage Real Estate Services in Mississauga, Ont. had a party at its Clarkson office recently to celebrate its newly renovated space. “We’ve made the common areas lighter, brighter and more welcoming for our staff,

anada Mortgage and Housing Corp. (CMHC) has discontinued its mortgage loan insurance for the financing of multi-unit condominium construction. The federal housing agency also announced that it has established maximum house prices, amortization periods and debt servicing ratios for its low-ratio transactional mortgage loan insurance product, effective July 31. CMHC says, “The changes are a business decision designed to increase market discipline in residential lending while reducing taxpayers’ exposure to the housing sector through CMHC. They are not changes to the government’s mortgage loan insurance parameters and do not apply to private mortgage insurers’ products and services.” CMHC introduced its multi-unit condominium construction product in 2010 to assist developers to access insured financing during the construction phase of condominium projects. It says that demand for the product has been low and that CMHC has not provided any insurance for multi-unit condominium construction since 2011. The agency says its insurance for mortgage loans to homebuyers wishing to purchase a condominium is unaffected by this change and will remain available throughout Canada. Beginning on July 31, the maximum purchase price for low-ratio mortgage loan insurance will be $1 million. The maximum amortization will be 25 years. The maximum gross debt service (GDS) is set at 39 per cent and the maximum total debt services (TDS) will be 44 per cent.

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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.

Graphic Design SHAWN KELLY

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 2014 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. ISSN 1201-1223

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Re/Max Professionals in Toronto is opening its third office in the trendy Baby Point/Bloor West Village area. Broker/owner Leah Ambler is creating a “hip, urban setting” for the new boutique-style office. Re/Max Professionals was named the seventh largest brokerage in the GTA by Real Trends in terms of dollar sales and transaction ends.

for the real estate and relocation industries. Barr is based in the company’s Chicago headquarters.

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8 REM JULY 2014

25 lessons we learned in 25 years

his year my business partner Valérie Benchitrit and I celebrate our 25th year in the business. We have learned many lessons throughout the years – most importantly that success is defined by your conduct and not the amount of money you earn. There are many agents who are not top earners yet embody the qualities of a great agent and there are many top earners who don’t – usually because of their misguided ego. So here are the 25 lessons we learned in 25 years that we believe define success: 1. Work with a reputable brokerage. Remember the saying, “Tell me who your friends are and I’ll tell you who you are”. The reputation of your brokerage will reflect on you so ask, “Is this a brokerage whose reputation I want to carry with me every day?” Also, don’t move around often because instability won’t enhance your career. In fact, if you measure success in dollars, many top earners have been with the same brokerage for years. 2. Don’t count on family and friends for business. Many agents compromise relationships due to hurt feelings when their friends or family don’t use them. It’s wiser to pave your own way and create a business that generates leads through hard work instead of hand outs. Then it will matter less if people you know don’t use your services. 3. Guard your reputation like it’s gold. A bad reputation spreads like wildfire. People talk more about the bad things than the good, so protect your name. Always act in the client’s best interest and you won’t have to worry. 4. Be prepared when agents and consumers report you to the provincial real estate regulator. If you’re in the business long enough this will inevitably happen. Ultimately follow the rules that govern us and

keep documentation to protect yourself. To avoid mistakes that generate complaints, consult your broker if you’re unsure of a situation. Even after 25 years we still count on the knowledge, wisdom and guidance of our brokers, Henry Balaban and Scott Webster. 5. Report an agent who has done something wrong. Our industry has a dreadful reputation and it’s your duty to contribute to the clean up. Even if the agent does not get fined for wrong doing, a complaint filed with the regulator will make that agent think twice before crossing you again. One should command and demand respect in this industry. 6. Don’t let success go to your head. The world doesn’t have room for all the egos in this industry. Ego is destructive and leads you down the wrong path. Keep your success in perspective because, in the grand scheme of things, you’re not that important. 7. Don’t knowingly lie. We live in a litigious society and if a consumer sues you, your lies will not withstand an examination for discovery process in a civil law suit. 8. Don’t begrudge another agent who got business instead of you. We don’t mind when someone gets a piece of business that we didn’t IF the agent won fairly and is known to be ethical. If they are not, we shake our head and feel sorry for the unsuspecting client. 9. Respect long-serving agents because they paid their dues. Some young agents belong to the entitlement society and, since they have never worked a recessionary market, hard work is not in their repertoire. Yet they want it all – NOW. But good things come to those who wait… greater things come to those who get off their ass and do what it takes to make it

happen. Long-serving agents deserve respect and it will take you a little longer to get to where they are. 10. If you make a mistake, admit it quickly and make restitution. The longer you hide it, the worse the consequences will be when it’s inevitably discovered. 11. Stand up for what you believe in and make a difference, even if that means standing alone. 12. Mentoring others can be very rewarding. Be generous and give back to our industry, and contribute to improving it. 13. Give back to the community and make a difference. It is your responsibility and it will come back to you in spades. 14. If someone tells you it can’t be done, do it anyway. Many years ago I referred a client to an agent in Schomberg, yet the agent refused to sign the referral agreement. She arrogantly said she was well-known and would probably have received the call from my client anyway. Talk about ego. Every month I would check MLS to see if the property sold and, lo and behold, after 18 months it did. I wanted to report her but was told that the arbitration committee run by TREB members at the time had never before heard this type of complaint. I believe there’s a first time for everything so I submitted the case, it was heard and I was awarded my referral fee. 15. Don’t be intimidated by super agents. In my third year in the business I was cold calling in Chaplin Estates. A gentleman visiting from Calgary answered the phone. He was looking for an agent to sell his mother’s house and had set up interviews with six top agents. Being new and inexperienced, I didn’t think I stood a chance. Mr.

By Josie Stern

Client asked us all to answer six questions in writing. Ironically I got the listing because he said I followed his instructions while the top agents delivered “I’m number one” material laced with ego but did not answer a single question he asked. 16. If you’re angry with someone, don’t send them an email or text in that state unless you’re prepared to accept the consequences. 17. Don’t ever take cash or kickbacks. People are human and greed is not uncommon. A few consumers have offered me cash payment so they can save HST on commission. Don’t be tempted. The consumer is not bound by the rules that govern us as you are. It’s not worth losing your license over this. 18. Be very careful what you say on social media. Everything you post, comment and share paints a picture of who you are. How do you want to define yourself? This will be your brand. 19. Be kind to others. It doesn’t cost you anything yet it could brighten someone else’s day. 20. Put yourself in other people’s shoes. Be empathetic and ask yourself, “Would I want this to happen to me or my children?” 21. Always ask if you’re not sure. Don’t answer a question just because you don’t want to come across as unknowledgeable. Tell the person you will get back to them and ask your broker. 22. Cut your losses if it’s not working out with a client. It’s not in your best interest or the clients’ if your relationship is no longer working. 23. Disclose disclose disclose. Don’t hold back any material fact that is your client’s right to know. 24. Appreciate that you are privileged. We are part of

Josie Stern

an industry that has enjoyed a stretch of 19 years of high returns. Therefore hard-working agents are financially rewarded so don’t take it for granted. Go above and beyond the call of duty for your clients. What other industry requiring no formal degree or an investment in inventory allows people to earn the kind of money we have the potential to earn? 25. Always do the right thing. Don’t opt to put your commission first. Ask yourself, What do I want my legacy to be? Is it, I made a lot of money selling real estate or I acted ethically and fairly in all my dealings with people? You decide. It comes down to the legacy you want to leave behind. Josie Stern and Valérie Benchitrit have 50 years of combined real estate experience and together they have sold more than 1,250 properties in the GTA. They are with Sutton Group – Associates Realty in Toronto. Before real estate, Josie was director of information systems for Sanyo Canada for 14 years. Website: http:// josiestern.com/ Email josie@ josiestern.com REM

reputation and

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10 REM JULY 2014

Turning green power into selling power Broker Kevan O’Conner uses his Tesla electric car to show clients properties and deliver a “green” message By Gayle Mavor

hose who know Niagaraon-the-Lake, Ont. broker Kevan O’Connor aren’t likely to be surprised that he’d be an early adopter of an electric vehicle. On March 17 he plunked down a hefty amount for the much-hyped Tesla Model S Sedan by Tesla Motors. As some owners have pointed out, the word sedan has no place in descriptions of the sleek new vehicle, named after the original “mad scientist” Nikola Tesla, who invented, among many other things, Alternating Current (AC) electricity. Tesla’s name was used by Tesla Motors not because of any human connection but presumably because the original inventor’s spirit seemed a good fit for the brand that Tesla’s CEO Elon Musk saw for his company. Besides, copyright on the name had expired and Tesla, the man, died in 1943. Seventy years later, it seems only appropriate that O’Connor, an Irishman, would hedge his bets on St. Paddy’s Day, and on a car that runs on electricity at a base price of $80,000. He dished out about $125,000 to bring the silver metallic, clean, lean, “green” machine (initially launched in 2012) into his driveway. Add-ons included an upgrade to the largest battery, a sunroof, bigger tires, turbine wheels and an upgraded sound system. “I was also one of the first owners of the Commodore 64,” O’Conner says, referring to the early home computer introduced in January 1982. It highlights his penchant for new technology from way back. A committed BMW 7 Series owner, he was in the market for a new car when he test drove the Tesla Model S at Tesla Motors Yorkdale. “I couldn’t believe the power. The centre of gravity is really low to the ground, which delivers amazing handling.” The Tesla Model S can go from 0 – 100 km in 5.6 seconds. “All I do is plug it in at night. Typically, I’d never drive more than 150 km during a business day.” Fully charged, the car has a range of 480 km. “It’s nice to

Kevan O’Conner with his Tesla Model S Sedan.

forget about gasoline, grease and oil and I won’t be burning the 3,000 litres of fuel I normally would during a business year. And clients love to be able to see and sit inside one of the most talked about cars today while they’re out finding the ‘right’ property.” The Tesla’s 17-inch touch screen in the front console means he’s able to put mobile connectivity to work in searching for listings, checking schools, finding out about neighbourhood amenities or reviewing aerial maps on Google Maps. “And that’s before we’ve even left the car,” he says. He highlights an app on iTunes that pretty much does everything but drive the car. “You can turn the heater on and off, open the trunk and sun roof, honk the horn and control the lights. You can see how much charge is still available and it will even let someone else track the car on Google Maps as you move from route A to route B.” Potentially, this could be an added safety feature for sales reps working alone. The most important part of the car is underneath: the liquid-

The 17-inch touch screen in the front console allows O’Conner to put mobile connectivity to work.

cooled, lithium ion cell battery and the power train between the back wheels. Although there is the risk of uncertainty associated with Tesla Motor’s future, it was a risk O’Connor was willing to take. Standard & Poor has predicted Tesla Motors’ potential default by 2017 but that didn’t impede the company from borrowing an additional $2.3 billion in March 2014 from investors riding their own dreams on a back-to-the-future style car. They’re pinning their profit fantasies on Tesla’s expansion into the Chinese market,

which began, albeit very slowly, in August 2013. Back in the small village of Niagara-on-the-Lake, a lot has changed since O’Connor got his first job at a brokerage in 1971 and started his own brokerage, now Royal LePage Niagara-on-theLake Centre. He served on the Ontario Real Estate Association for 11 years, becoming president in 1992, and was a director for CREA for six years. His sales success admitted him to Royal LePage’s National Chairman’s Club between 2003 and 2007 and again in 2011.

Nowadays, he’s more likely to be perfecting a strategy that seeks out Tesla Superchargers from Toronto to Florida, where he spends winters with his wife while leaving the business in the hands of his son James O’ Connor. For sales reps without the means or will to purchase an electric car, Elden Freeman, founder of the National Association of Green Agents and Brokers (NAGAB), offers a more direct plan of action for mindfully getting up to speed on “green”. Accreditation in NAGAB teaches agents about new building materials and environmental products and solutions. It helps them develop a competitive edge while doing their bit for their children’s future. Thinking about his own kids is what motivated Freeman to start the Association in 2007. It has now grown to 31,000 members. He walks the talk with solar panels on his home, drives a hybrid car and has a native plant garden that requires less watering. With new building materials, updated building codes and constantly evolving building technologies, Freeman says it just makes sense for sales reps to educate themselves about “green” building. It’s the kind of knowledge that translates into profits, makes a stronger impression on clients (who he says are typically way ahead of sales reps in this type of knowledge) and enables agents to market the features of a property more convincingly. “It’s not enough to describe a house as solar powered,” he says. “Clients want to know how it works and what difference it’s going to translate into, how it benefits the environment and what it means for their wallets.” The courses offered through his non-profit lead to Green Agent and Green Broker certification but can be taken as one-offs and are bundled according to topic. If you’re a sales rep who has worked out your own unique ways to be mindful of the planet, let REM know what you do to be energy efficient in your practice. REM

12 REM JULY 2014

How this busy grandma stays on top

Gloria Valvasori runs a successful real estate business, stays on top of the industry’s evolving technology and is single-handedly raising her three grandchildren. By Connie Adair 1985 with a draw of $2,000 per month. “It was that draw that made me take a chance and step out of my comfort zone,” she says. “If I didn’t at least try, I would never know what I could accomplish.” The training she received in sales, including how to cold call and turn leads into sales and how to close deals, was invaluable. In 1986 she won an award for sales achievement. Her time at Mutual Life was a stepping stone. “It was much easier to cross over into real estate with the valuable sales training I learned there for two years,” Valvasori says.

Gloria Valvasori with her grandchildren, from left: Ryland, Corina and Trent (Photo: Marko Shark)

t 64, Gloria Valvasori said goodbye to her colleagues and walked out the door. Retirement? No way. Impressed by the award-winning agent’s track record, another brokerage had enticed her to join its team and Valvasori was, as always, up for the challenge. The spunky and endless well of energy joined Better Homes and Gardens Real Estate Signature Service in Mississauga, Ont. six years ago and has been surprising and inspiring company executives and colleagues since. Valvasori has won sales awards every year that she has been a real estate agent and since joining Better Homes and Gardens can add computer geek

to her list of accomplishments. The top producer has harnessed the power of social media to boost a career she has no intention of giving up any time soon. St. Catharines-born Valvasori started in clerical work, changing jobs every couple of years when she became bored. Even then she needed a challenge. But the single parent of children five and nine years of age needed a regular income. Although sales appealed to her (she became interested in real estate after selling her marital home) a commission job was not realistic. As luck would have it, she heard of a job at Mutual Life in St. Catharines and was hired in

In 1987, she became an agent. She earned the $1-million Round Table Award in her first year and gold- or silver-level sales awards every year since. Her most cherished award is her Platinum Award, which she earned for ratings of 100 per cent for outstanding service to clients as voted by clients in confidential surveys. She worked for a couple of independent brokers in St. Catharines. In the 1990s, still too new to the business to have enough clients to weather the effects of unemployment and inflation, she took two years off and worked as a receptionist to get back on her feet. She moved to Oakville and re-entered real estate, working at Royal LePage Royal in Mississauga before being recruited by and joining Better Homes and Gardens. She had no intention to move, but was drawn by the forward-thinking and technologically savvy company. Not long after she started with Better Homes and Gardens, Nelson Goulart, vice-president of network sales suggested she

create a website. “I told him I was too old and too tired. Nelson said, ‘You can’t afford not to’,” she says. Not one to back down from a challenge, she got to work, applying lessons learned at company training sessions. In six months she was on the front page of Google. She is on Twitter, Facebook and networking site Active Rain. When he first met her, Goulart says he could see fire in Valvasori’s eyes and knew she was special. He just didn’t know how special. As well as being a successful full-time agent, Valvasori single-handedly raised two children and is now raising three grandchildren on her own. “They were 2 ½, 3 ½ and 5 when they came to me,” she says. Real estate offers her the flexibility to make Trent, 13, Corina, 12, and 10-year-old Ryland breakfast every morning and to get them to the bus stop on time. Her work day begins at 8 am, when she checks her home page, comments or posts, and goes on to her fan page. She has more than 7,300 fans. She spends the rest of the day in the office and on appointments. She has the help of a part-time nanny, who makes dinner or watches the grandchildren when she has evening appointments. “It’s a lot of work but I get a lot of joy in return. When I walk in the front door, I get big hugs. They ask me, ‘How was your day’ and say “We’re glad to see you. We know how hard you work, sit down.’ They’re the joy of my life.” Valvasori runs a tight ship, teaching her grandchildren to fend for themselves and to know that nothing comes easy. “I’m

teaching them to be productive citizens,” she says. When the opportunity presents itself to rest, she does and every three or four months she takes four days to herself to recharge. She visits the gym twice a week, weight-lifting with the help of a trainer to keep herself as physically strong as she is mentally. Valvasori, who has been on her own since she was 17, says, “Everyone has challenge in their life, some more than others.” Real estate is a stress outlet. “I love it so much it’s not work. It gets rid of stress when I see happy clients,” she says. She is an Accredited Senior Agent and was recently invited to become part of an elite group of hand-picked Master Accredited Senior Agents. How does she do it? “I will be 70 in July,” says Valvasori, who has been a licensed real estate agent for 28 years. “It’s not about age but mindset.” Many stories talk about shifting demographics and how older people are getting out of the business, but Goulart says that’s not the only story. The Millennials are coming, but those in their 50s, 60s and 70s should see themselves as an important part of the industry, he says. “Gloria is a real character. She’s a doer,” Goulart says. “She’s an inspiration to the industry. If I could duplicate Gloria, I would.” “It hasn’t been an easy journey. I’m grateful to be healthy and still able to support my grandchildren,” Valvasori says. She’s an inspiration to all, but modestly says, “If I can do it, anyone can.” REM

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14 REM JULY 2014

Letters to the Editor Re: Who had the biggest impact on the real estate industry during the last 25 years? From my university businesseducated and corporately trained point of view, the biggest failure in the history of organized real estate is the total disregard of the single most important goal of any real business, and that is to earn profits. Why does such a massive industry with enormous sales dollar volumes struggle to make profits, particularly at the sales representative level? Why does our industry have the unspeakable failure rate that no other major industry has? The truth is real estate has become a nonbusiness-like industry. Take for example any Fortune 100 corporation – General Electric, Ford, Apple, Pepsi – in order to profit, they must function. That’s why they have entire departments devoted to critical functions: finance, accounting, compliance, sales, marketing, public relations, legal, human resources, technology,

product development, customer service – and every employee brings a specific expertise to the team. Together, everyone benefits from the momentum and synergy of the collective force. There was a time when real estate salespeople performed no other task than just “selling” and the brokerage took care of all the other critical functions required to run a real “business”. Then in the 1980s along came Re/Max and introduced the independent contractor concept to the real estate industry, and destroyed the industry as we knew it. Independent contractor also means the salesperson now has to be their own functional expert and do all the functional tasks themselves, oh yes, and find time to actually sell real estate too. Let’s be clear, “if” an individual came into real estate, already experienced with deep knowledge of critical business functions, they could become a real estate superstar. But let’s be honest, less than one per cent of real estate salespeople become a superstar. Statistically,

just about every newcomer thoroughly lacks any real skills required to become profitable. Back to independent contracting – a model that offers the salesperson the allure of keeping a higher percentage of elusive commissions and in return, for a smaller share of commissions, the brokerage no longer provides (meaningful) support in all the critical functions necessary to run a profitable business (key word, profitable). Even more important than the gutting of business functions from our industry is the complete and utter elimination of accountability. Our industry has salespeople running around ill-equipped to do their job properly and profitably, and then lets them do whatever they want, whenever they want. It’s absurd and asinine. In the real business world (where they actually make profits) any employee who fails to show up for work, every day, on time and act like a professional, perform competently and achieve results like a professional, would simply get

Insurance Renewal 2014

Payments are due by August 15, 2014 ABOUT THE INSURANCE PROGRAM The Real Estate Council of Ontario (RECO) works with insurance broker Alternative Risk Services to negotiate and secure the best coverage and rates for you, year after year. RECO’s insurance program provides essential protection for you and your clients and customers through its Errors & Omissions, Commission Protection and Consumer Deposit insurance coverage. Insurance renewal invoices will be mailed in early July to all registrants. A copy of the renewal package is also available on RECO’s website at www.reco.on.ca.

fired. But in real estate such existence is the norm. It’s so absurd that most brands measure their success by the size of their tribe of such “salespeople”, where by contrast in the real business world the only true measure of success is profits. Re/Max pats itself on the back as a trailblazer for bringing innovations to our industry, but in my opinion, bringing independent contracting to real estate has proven to be the cause of the single biggest failure of our industry in the past 25 years. How ironic that Re/Max recently announced the termination of one of its franchisees, operating in a major lucrative GTA market, touted for having 350 “salespeople”, yet incapable of paying its franchise fees. Ross Gligic Broker of record, president Best Real Estate Inc. Burlington, Ont. I agree with Michael Freidman and Carolyne Lederer, who

answered this question with Melanie Aitken, commissioner of competition in 2009. What was not mentioned was the expense (money and image) incurred by the real estate industry to address the bureau’s allegation that CREA’s rules regarding MLS access denied consumer choice and stifled competition. Every facet of organized real estate involves some level of competition. Real estate transactions continue to be provided in the most competitive environment – that being the MLS data access administered by CREA’s rules, which do afford consumer choice in innovative services and price. The proof is in the fact that consumers trust organized real estate for their knowledge, expertise and experience despite CREA signing that 10-year Consent Agreement. Carrol Woolsey, Managing broker, Pillar Realty Vancouver REM

The total cost of insurance, including taxes and expenses, remains unchanged at $400 for the 2014–2015 policy period. Additional insurance program details are available on MyWeb. To pay your insurance online please visit MyWeb at https://myweb.reco.on.ca.

HOW TO MAKE A PAYMENT You can make your payment online. Over 77% of registrants are making their insurance payments through MyWeb, RECO’s exclusive web portal for registrants. If you do not already have a MyWeb account, creating one is easy and free; simply visit https://myweb.reco.on.ca to sign up. Use your MasterCard or Visa to pay your insurance online for immediate processing and confirmation of payment. Please note that insurance payments are non-refundable and RECO does not accept payments by phone. E&O CLAIM REPORTING DEADLINE IS APPROACHING The E&O insurance coverage is on a “claims made” basis. This means that any claim, or situation that may develop into a claim made against you, must be reported to the insurer during the policy period in which the event occurred. Reporting a claim or potential claim to the insurer by August 31, 2014 protects you if a situation escalates and a law suit is commenced against you.

RETIRING OR LEAVING THE BUSINESS BEFORE SEPTEMBER? Terminate your registration by August 1, 2014 to avoid becoming involved in the suspension process. You have two options for completing your termination: 1. Send a completed “Notice of Employee TERMINATION” form, found on RECO’s website under “Notice of Employee Change: Termination”, and a copy of your resignation letter to RECO’s Registration Department; or 2. Have your Broker of Record or Branch Manager complete the termination process for you on MyWeb. See RECO’s website for further details.

SUSPENSION PROCESS–WHAT HAPPENS IF MY PAYMENT IS LATE? Registrants who fail to make their insurance payment by the due date will become part of the suspension process and will be required to pay an additional $35 for expenses related to administration of the suspension process. The total insurance payment after the due date is $435. Failure to make an insurance payment results in the suspension of your registration and the right to trade in real estate effective September 1, 2014.

Contact RECO’s insurance department at: MyWeb: https://myweb.reco.on.ca | PHONE: 416-207-4841 or TOLL-FREE:1-866-757-7772 | FAX: 416-207-9020 or 416-207-4820 | EMAIL: insurance@reco.on.ca

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16 REM JULY 2014

METES & BOUNDS

By Marty Douglas

appy Canada Day, Fourth of July and Bastille Day! Pretty well covers the majors in the month. I’ll begin by complimenting Heino Molls, Jim Adair and the staff of REM for the 25th anniversary edition. The summary of difference makers in our industry, both licensed and civilian, gave me pause to consider the 44 years I have been an arms dealer in the conflict. So I quit. Well, I’ve set a goal. To taper. That seems to be the dominant phrase of the year. Starting with my REM

Canada has too many Realtors columns. This effort is number 235. (Pause for long division and gasp from the reader.) I think 250 is a nice round number although 240 has a certain appeal. However, I think I can dredge up enough for another year and a bit, bringing me to September 2015, plenty of time for REM to plan the usual grand soiree and golden handshake. Now that the cheering has died down, let me stab a few of my fellow licensees in the eye. Recently I have been forced to file a couple of complaints with our real estate board and one with our provincial regulator. I don’t do this lightly. But when salespeople slip over the line that divides honest mistake from wilful act or omission, our industry deserves respect. It doesn’t get respect when we fail to act because there may be repercussions or the paper work is complex or we just don’t want to get involved or it’s the manager’s job. So if you fail to do a title search and discover the occupants don’t own the property or you list a renovated mobile home without an

electrical safety certificate or you fall afoul of the warranty process on a new home, be prepared to do the time. What to do? Can you accept the premise that there are too many Realtors? I don’t mean to imply that top producers aren’t without sin but they are at least around to take responsibility and most likely to be interested in repeat customers. “A good start” is the punch line to that old lawyer joke, edited to ask, “What do you call 100 Realtors at the bottom of the ocean?” If it is time to clean house, looking around, it’s hard to find those without sin. Regulators could require that licensees be restricted in their employment to real estate only. That was the case in B.C. until pressure from the federal government on inter-provincial trade barriers, amid the red herrings of constitutional challenge and independent contractor, caused the Real Estate Council of B.C. to change the rules. Now you can run into your Realtor at your favourite

restaurant or in the checkout aisle. Of course, brokerages could make that their policy and many do. But the fact remains that parttime members across Canada exist and skim business. I’m surprised the consumer allows the practice. They would flinch if their lawyer or doctor popped up in the drivethrough window to ask, “Would you like fries with that?” Real estate boards and associations could do their bit too. Years ago, listening to the majority of under-achievers, my board eliminated the Medallion Club performance results. Andy Smith, with B.C. Hothouse Foods, offered this insight: “We don’t focus enough on winners. Rather we try to lessen the burden of failure or mediocrity. Why don’t we study and reward winners?” There was a time we could readily determine the number of sales a member had. Now we have to cruise the bus benches to determine which No. 1 is still available for us to claim. In the local zone or division of

our real estate board, year-to-date May 31st, there has been an average of 2.8 completed unit sales per member, a unit being either a listing or selling side. For all of 2013, there were 8.3. Given an average price of around $310,000 for all categories of real estate sales and a commission of $6,700 per side in my business model, then on average, local Realtors grossed $55,610. But of course there’s the old top 20 per cent rule. Our offices’ two top individuals averaged 42 ends, over five times the local average. Other offices will have similar results, leaving no doubt there is a high percentage of licensees who aren’t making a living. Why are they here? Sadly we are slaves to membership numbers at the regulatory, board and brokerage level. No member, no fee. No licensee, no desk fee or commission split. In a brief conversation on the very high percentage of Toronto Real Estate Board (TREB) members with fewer than five sales per year, Walter Continued on page 18

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18 REM JULY 2014

LEGAL ISSUES

Real Estate Marketing Solutions

Client newsletters help grow your business By Donald H. Lapowich LOW-MAINTENANC E LAWN CARE

Whether your yard is especially have enough time to devote big, or you just don’t to even a modest one, the following g tips will make yard mai maintena t nce easier er and less time-consuming sumin

Incorporate more hardscap ing (i.e. non-living) elements into your yard.

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Plant native species.

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Termin no n olo ology Tip

COLLATERAL — As securit ecu y or guarantee pledged as securit y ffor or th the repayment of a loan if the borrower rd does oes not have enough funds to make payme ments nts on their loan. In respect to mortga ge ge loans, lo oan the collateral is the proper ty being Install an automatic irrigation ng n g mortga mor ged, and the worthwhile for larger yards. system – obviously more lender’s claim to that at proper prop ty is called a lien. If the borrower cannot not make ma their mortgage payments, the lender er can can foreclose on the home and take posses session sio on of it to sell and recoup the princip al itt lent le ent the borrower While we’ve always been told not to judge a book by its cover, there

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n Ontario the Limitations Act Statute of Ontario 2002 (which came into force on January 1, 2004) set a general limitation period of two years. This is the amount of time a person has to bring an action for damages after they discover the facts that would support the lawsuit. Subsequently, the statute was amended so that parties to a “business agreement” could change the two-year limitation. A recent case (Kassburg v. Sun Life Assurance Company of Canada, 2014 ONSC 1523) laid down the following conditions: a) the change must describe the limitation period in “clear language”; b) the change must identify the scope of when the limitation period will apply; c) the new limitation period must exclude the operation of any other limitation periods. Without the strict compliance in this case, the attempt to change the limitation period to one year was not successful. In two other Ontario cases, the limitation period was applied in different ways. In the first case, the

Canada has too many Continued from page 16

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Schneider of Re/Max Integra said, “The best thing organized real estate could do is require a minimum number of transactions each year.” It sounds like a throwaway line but if you consider the result would include tens of thousands of TREB members, it becomes a sobering message very quickly. And let’s not just pick on TREB. They have been the heavy lifter for the country for too long. (C’mon Calgary, Vancouver, let’s have a shot at FINTRAC defiance!) I suggest that all boards and associa-

Limitation periods plaintiff negotiated a sale and the defendant unilaterally changed the commission in December 2006. In November 2007, the defendant paid the lower rate of commission and within two years of that date the plaintiff sued for breach of contract. The court determined that the limitation period would start to run at the time the contract was breached. However, the defendant’s change in commission was not accepted by the plaintiff. The plaintiff therefore did not know whether he would suffer damage until the payment of commissions became due in 2007. That being the case, when the payments were not made when due, the two-year limitation period then ran from 2007 rather than when the notice was given in 2006. In the second case, a condominium corporation sought a declaration that a contract was invalid. A member of the property management company entered the contract with a natural gas supplier “without authority”. The Board of Directors discussed the contract in 2009 and sent a letter to the gas supplier in 2010, but didn’t start an action for an invalid contract until 2012. In this instance the action was barred because the date on which the damage was discovered was in the board meeting of 2009, where the board discussed the invalid contract (as alleged). Two years from then would have been 2011 but the action was brought in 2012 and therefore was past the tions do the math with a view to sustainable income and see where their plimsoll line might be. By the way, Re/Max is no stranger to straight-shooting leadership. In 2000, Dave Liniger was quoted in REM: “Eighty per cent of the people in this business are losers. Eighty per cent of the people in this business don’t need technology – they need a customer.” Thirty years ago, “Pip” Holmes, iconic Canadian Realtor, pastpresident of everything including the world organization of FIABCI, said: “So much of what is done today in our business is, because of technology, in the hands of ama-

two-year limitation period. (York Condominium Corporation No. 62 v. Superior Energy Management Gas L.P., 2013 ONCA 789) In a recent British Columbia case it was confirmed that a limitation period could not commence to run until discovery of alleged facts, by which the claimant then commenced litigation. The plaintiff owned some land. In 2010 an appraiser for the city determined that the plaintiff’s property line was in the middle of a road. It led to the plaintiff and the city disputing ownership for part of the road, leading to an action to determine whether the land was a highway or not. One of the defences of the city was that there was lack of notice and the limitation period had expired. The court recognized that prior to October 2010, both the plaintiff and the city had no knowledge that the property line was in the middle of the road. Therefore, the plaintiff could not possibly have given the notice required before that date, nor could it have had commenced an action before that knowledge came into its possession (discovery). (452195 B.C. Ltd. v. Abbotsford [City], 2013 BCSC 2055) Donald Lapowich, Q.C. is a partner at the law firm of Koskie, Minsky in Toronto, where he practices civil litigation, with a particular emphasis on real estate litigation and mediation, acting for builders, real REM estate agents and lawyers. teurs. It deserves to be in the hands of professionals.” Thirty years later, the struggle continues. Contact Marty Douglas by email at mgdouglas247@gmail.com . Follow or connect with Marty on Twitter, LinkedIn and Facebook. He is a managing broker for Re/Max Ocean Pacific Realty in Comox and Courtenay, B.C. He is a past chair of the Real Estate Errors and Omissions Insurance Corporation of B.C., the Real Estate Council of B.C., the B.C. Real Estate Association and the Vancouver Island Real Estate Board. REM

Real Estate Agent from Lachine, Quebec Wins International Real Estate Award was so much more there if Iâ&#x20AC;&#x2122;d only taken the time to look.

By FranĂ&#x2021;ois Mackay â&#x20AC;&#x153;When I first got my real Estate license in 1997, my goal was to become the #1 agent in Quebec. After a few years, I decided to study the top agents in Quebec and I discovered commonality in their operation and marketing. â&#x20AC;&#x153;I soon found out where they got their training.... it came from International Real Estate Coach, Craig Proctor. As a Re/MaxÂŽ agent, I certainly knew of Craig because he was #1 for Re/MaxÂŽ Worldwide twice in his career, and top 10 worldwide for 15 years. He was famous for how many homes he sold, over 500 a year. So I was excited to find out what he could teach me. â&#x20AC;&#x153;Since my English was not that good, I decided to order Craigâ&#x20AC;&#x2122;s Quantum Leap System instead of attending a conference. That was 2002, and it was a big mistake on my part. I did not do much with the books ...basically just studied the team concept and not the marketing. There

â&#x20AC;&#x153;In 2007, since my business plateaued, I decided to attend a SuperConference and join Craigâ&#x20AC;&#x2122;s coaching program. Since then, my production has gone up every year, from 150 in 2007 to 408 last year. Funny thing is that I donâ&#x20AC;&#x2122;t work nearly as hard now as I used to. â&#x20AC;&#x153;It is a privilege to be part of a group of elite agents that keep getting better and better every year. Like Jim Rohn said, â&#x20AC;&#x2DC;Formal education will make you a living. Self education will make you a fortune.â&#x20AC;&#x2122; My self education is Craig Proctorâ&#x20AC;&#x2122;s coaching and it has made me a fortune. â&#x20AC;&#x153;Over the past seven years, Iâ&#x20AC;&#x2122;ve never looked back. I now regularly associate with Craig Proctor members from all over the world who are making serious money in this business -- high 6 and 7-figure incomes. It is very true that â&#x20AC;&#x153;you become who you associate withâ&#x20AC;?. I was very honoured to be selected to win the highest award Craig bestows at a ceremony in Anaheim, California earlier this year. â&#x20AC;&#x153;I really canâ&#x20AC;&#x2122;t thank Craig enough. Even though he is so successful, heâ&#x20AC;&#x2122;s the real

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deal â&#x20AC;Ś both as a coach and as a person. He is smart .. a marketing genius, but always calm and relaxed and fun to be around. More than that, those who learn from him say he is like a big brother â&#x20AC;Ś really sharing and caring. â&#x20AC;&#x153;With what Iâ&#x20AC;&#x2122;ve learned and am learning from Craig, Iâ&#x20AC;&#x2122;m looking forward to getting my business up to 1,000 sales in 2 years and I feel confident I will be able to do this. Itâ&#x20AC;&#x2122;s a very achievable goal.â&#x20AC;? n

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20 REM JULY 2014

Switching from big brand to independent Shawn Westerik and Ryan Hodge were top producers with a national brand before deciding to create their own independent brokerage, The Realty Firm. By Susan Doran

hy would a pair of hotshot real estate professionals who between them had more than two highly successful decades with Re/Max choose to leave all that behind to start up an independent brokerage? When that question is put to friends and business partners Shawn Westerik and Ryan Hodge, who did just that, the answer seems to boil down to wanting to provide a new option for their hometown of London, Ont. To put a finer point on it, first and foremost they “want to build the best brokerage in London,” says Westerik. Although the thought of leaving the largest real estate organization in the world was daunting, “We felt we could offer a unique and high-quality sales system for a reasonable compensation plan to any type of Realtor, whether new agent or seasoned professional,” he says. After weighing the pros and cons of such a move, they finally made the leap in September 2013.

Industrial, Commercial & Investment

eal estate valuation and advisory professional Toivo Heinsaar has joined Avison Young as SVP, valuation and advisory services, Ontario. Based in the company’s headquarters in Toronto, he will service clients throughout Ontario and on a national basis. Formerly director, real estate valuation at Deloitte, Heinsaar has 18 years of industry experience. Heinsaar has held senior roles at Colliers International and Cushman & Wakefield. His clients include some of the nation’s leading financial and public institutions, real estate developers, REITs and investors, the company says. Ryan Cunningham has joined Avison Young in Mississauga. Cunningham, an 11-year industry veteran, joins as a princi-

Up to that point, “We had been building notoriety with our volume...and a lot of Realtors were calling us wanting to go out for breakfast or lunch to get themselves educated about how we were doing what we were doing.” Before they launched their independent brokerage, The Realty Firm, they were the topproducing team at Re/Max Centre City in London. Often, they say, those asking for advice were competitors from different firms. “They were requesting our help and we were not really even supposed to be giving it to them,” says Westerik. “But it gave us the confidence we needed to start our own brokerage.” Hodge says they “did due diligence,” taking a full year to research and build a feasible plan while continuing to work long days at Re/Max. “We thought we could create a turnkey business, because our own personal sales system is tried, true, proven, easily reproduced and salable.” They say this system can be pal and will continue to specialize in industrial real estate. Cunningham was most recently a vice-president with CBRE in Toronto West. “Ryan’s extensive real estate experience and past successes, coupled with his enthusiasm and goaloriented personality, will lead to exciting opportunities in the marketplace,” says Martin Dockrill, principal and managing director of the company’s Toronto West region. “Moreover, his demeanour and desire to collaborate with the larger team will fit in well with our culture.” ■ ■ ■

Toivo Heinsaar

duplicated by their sales reps, “allowing them to be successful without making 200 cold calls or spending exorbitant amounts on advertising.” The pair wanted to make their move in a dignified and ethical way, they say. They have a lot of respect for their previous broker of record and did not want to “purge” that brokerage, as they had witnessed the animosity that such actions had caused in other companies, they say. “So we started from scratch,” says Westerik, although admittedly, as time passed and word got around, some agents from their former brokerage wound up joining them. Westerik and Hodge say that no matter how high your confidence levels, one of the most daunting aspects of starting up a new brokerage is worrying about whether people will believe in your vision. “I still recall when we first opened,” says Hodge. “There were just five of us – and all this office JLL has hired Mark Chambers as EVP of office leasing in Vancouver. “We see the progress of downtown Vancouver and realize client needs are going to change,” says Brett Miller, president of JLL Canada. “Mark knows the industry inside and out, and he will help us and our clients through this new cycle of Vancouver’s development.” Chambers joins JLL from Cushman & Wakefield with 21 years of experience. He has facilitated more than 10 million square feet of leasing and nearly $500 million in sales over his commercial real estate career. REM

Ryan Cunningham

Mark Chambers

space – wondering, ‘Should we set up a bowling alley?’” With The Realty Firm, it appears for now that won’t be necessary. Since September, “over 30 agents have joined us,” says Westerik. “They want to do what we do...Here you can be mentored by two guys selling 200 houses yearly.” The Realty Firm brand “has been very well received in London,” says Hodge. “For us, the biggest success story is how our agents are doing – some have doubled their production from last year.” For the brokerage’s sales reps, the process begins with simple goal planning. “We are very goal oriented,” Hodge says. Registrants are assisted in creating goals around net profit and scheduling, which combine to help them design “the perfect day and week” in real estate, after which they develop their business further with the help of mentoring/training. “It’s geared to the individual,” Hodge says. “If we get them to time block quality of life first, then lead generation time, the rest will fall into place naturally. We believe in everyone here and we have seen this have great success. We set aside time to talk with them, keep them on track, follow up. We are very invested in our people.” It comes down to goals, time management and the desire to grow, Westerik and Hodge agree. A positive and in-sync work environment is also crucial. “We have the conviction to turn people away. We’re proud of that,” says Westerik. “We want the right mix. We’ve had to say no to some registrants who have a desire to work here. They did not fit in with how we look at the business...They don’t respect the business as a whole, do not have the passion for the business.” He and Hodge refer to this as “taking the business back.” They believe that in many cases the real estate business is trending towards turmoil, due to such issues as lack of knowledge, poor ethics and poor communication.

Ryan Hodge

Shawn Westerik

“At The Realty Firm, we facilitate professional transactions,” says Westerik. “We are broker/owners who are still actively selling. Our registrants like that; we’re in the trenches with them...If there is a problem or mistake, we address it and fix it. We are accountable to ourselves, our competition and each other.” Both Westerik and Hodge have vast reserves of passion for the business. They say the challenges include “finding enough hours in the day.” “And being tired,” adds Westerik with a laugh. “We are not really fun guys,” he continues in the same vein. “We are very focused, very business oriented...We’ve actually had six or seven top-producing agents call us about franchise opportunities, but we’ve put that on the back burner for now.” Asked what drives him and his business partner, Westerik says, “People ask what motivates us. We are both married with three young boys, so running a brokerage and keeping our wives and boys happy, we need good organizational and time management skills. Thinking of putting six boys through university motivates us!” REM

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IS WHAT WE DO Royal LePage professionals across Canada raised more than $315,000 at the 6 Annual National Garage Sale for Shelter held in May. The event’s proceeds support 200 women’s shelters nationwide, restoring hope and helping thousands of women and children rebuild their lives after violence. Since 2009, this event has raised $2 million. th

Congratulations to our photo contest winners!

Learn more at royallepage.ca/shelter This is not intended as an offer to sell or a solicitation of an offer to buy, including a solicitation of any sales representatives or broker that is currently under contract. Any copying, reproduction, distribution or other use of these materials is prohibited. ©2014 Brookfield Real Estate Services Manager Limited. All rights reserved.

Thank you to everyone who made this event possible, including our major sponsors TD Canada Trust Mobile Mortgage Specialists, Atlas Van Lines Canada and Your Commission Today™.

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Congratulations to our photo contest winners!

Thank you to everyone who made this event possible, including our major sponsors TD Canada Trust Mobile Mortgage Specialists, Atlas Van Lines Canada and Your Commission Today™.

24 REM JULY 2014

Pre-construction Understanding condo condo prices out price increases J of whack

By Peter Daoust

By Carl Langschmidt

t is amazing to me how many pre-construction condominiums have prices that are out of whack! By out of whack, I mean disconnected from prices in the resale market. Don’t get me wrong – a new condo is obviously better than a 20-year-old condo, but it’s not worth much more than a recently built comparable building that is actively trading in the resale market. Not to mention, if you’re buying pre-construction today, you should be paying a price based on today’s resale market values. Our advice and strategy for determining how much is too much for a pre-construction condo is to simply find a fairly new comparable condo – ideally in the same location – as a base for comparison when analyzing a pre-construction investment. If you have used our website, you will know that Condos.ca can show you the dollar per square foot trends and price ranges for any resale condo in Toronto. Why do pre-construction condos “out sell” the resale market? It’s a combination of many factors.

Some are quite controversial but worth mentioning. 1. Commission: Developers pay nearly double the commission to sell a new condo vs. a resale condo (four to five per cent vs. 2.5 per cent on the resale side). 2. Inaccurate market research: Developers support their prices to investors with somewhat misleading data from organizations like RealNet Canada that report price per square foot trends of other new condos by compiling price data from developer’s price lists and not the actual selling prices. Investors were told that the average new condo price in the core was $961 per sq. ft. Obviously this makes any developers’ prices

Why do preconstruction condos “out sell” the resale market?

look cheap, so we investigated this further, as the number was substantially higher than our research within the resale market. RealNet provided the list of buildings used and now that many of the condos on that list have registered, it clearly shows a disconnect between the asking prices and actual selling prices. 3. Hidden fees and additional costs: Developers do a great job at hiding the actual cost of a new condo. When you buy a resale condo, the price you see is the price you pay, while the price on a pre-construction condo has a list of added expenses. Parking and development charges are examples of a couple of extras that need to be added into the equation when evaluating investment potential. At the age of 29, Carl Langschmidt ranked #39 for Royal LePage out of almost 15,000 agents across Canada. He says his secret to success is hard work and passion. He is a broker with Royal LePage Your Community Realty in Richmond Hill, Ont., and president of condos.ca, described as “the GTA’s most comprehensive condominium guide featuring exclusive building and neighbourhood price trend data.” REM

oe has a used car lot with 25 to 30 vehicles in stock at any given time. He specializes in cars that are just a tad older. In January he sold five vehicles at an average sale price of $10,200. In February and March his numbers were pretty much the same – six cars sold in February at an average price of $10,700 and five sales in March with an average sale price of $9,950. That’s the price point he feels most comfortable working in. Something different happened with the way he did business in May. His number of units sold remained the same at five units, but his average sale price increased to $12,800. That’s an increase of over 20 per cent. What happened to explain this increase? Well, Joe stepped outside of his comfort zone and purchased and sold (pushed over the curb as they say) a newer model vehicle for $20,000. This one transaction was all it took to raise up his monthly selling average. What is the point of telling this story? Strangely enough, there is a similarity to the way all real estate boards across the country calculate their monthly home and condo sales. As in the auto industry, newer units are typically more expensive. It could be suggested that the average condo prices will on paper always go up because with time, more and more newer units

will be coming to the marketplace. In 2011, for example, high-rise condo builder Tricar decided to employ the services of the MLS system to sell out 35 units in its new downtown Renaissance building on Ridout Street in London. Many units sold out in the $300,000, $400,000 and $500,000 price range. Guess what this did to the average selling price on London condos that year? Average prices jumped up to $179,240 from $170,000 the year before and then in 2013, one year after these highpriced sales happened, fell back to $170,493 in 2013. What’s happening is that new condo units coming to the marketplace typically cost considerably more and this is to a large extent is what is causing the “average” monthly condo sale price index to go up. The average selling price of new MLS condo sales so far this year in London is $353,272 and in 2013 $291,947. That’s considerably above our current year-to-date average condo selling price of $180,711. Are average monthly condo sales comparing apples to apples or apples to oranges? That’s the new question of the day.

Peter Daoust is a broker at Re/Max Advantage Real Estate in London, Ont. www.yourcondoworld.com REM

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26 REM JULY 2014

No need to reinvent the deal

STOP SELLING HOUSES & START MAKING MONEY

week…I need to recharge....” Click! End of conversation. The beaches and bars down south, as we know, are littered with the sunburned bodies of burned-out real estate agents like that one. The sad thing is, these agents aren’t trying to escape the bad times, they’re trying to escape their own success. And the reason they’re trying to escape it is because they haven’t planned for it. A good real estate career happens when you take care of the two sides of a sale: getting the listing and closing the deal. Unfortunately, most agents put all their time and effort into the first stage and very little into the second. We work, hustle, advertise for and chase after listings. We’re so busy doing that, we don’t pause and think about what we’re going to do when all those listings turn into sales. The agent I mentioned earlier is a prime example of that way of

By Debbie Hanlon

ot long ago, a sales rep showed a house I had on the market to one of his buyers. Twenty-four hours later, when I still hadn’t heard from him about what his client thought of the house, I called him and asked how it went. Well, by the way he answered you’d have thought I’d asked him for his firstborn! He went on this tirade that went something like, “I sold six houses this week. I don’t have a clue what house was yours. I’m going to Mexico next

operating. No doubt he did very well getting listings – the fact he sold six houses in a week is testament to that. The fact that he had to run off to Mexico after selling them to recharge is testament to the fact that he wasn’t prepared for that success. He’s not alone. I dare say that if most agents out there had a week like that, they’d be in a spin as well and on a plane to an all-inclusive. Early in my career I developed a series of systems that made getting and maintaining listings a breeze. However, if I hadn’t also made a plan for what happened when I sold those listings I would have been burned out long ago. I would not have been able to enjoy my family and have the life I’ve led outside of real estate. What they are is simply a daily to-do list for when a property is sold. Each step needed to make the transition from the sold sign being put in place to the buying and sending of the client appreci-

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ation gift is detailed in a way that even a monkey could follow. It had to be simple – I was too busy making money to have to think about what I had to do next. With technology today it’s even easier to do. I am magically prompted by my email calendar to do the things that have to be done. I never have to wonder, okay, where am I on this property’s closing? What do I have to do on this one? I’m told what I have to do each day and I take a small part of each day and do those things. When you have a thousand little things to do, none of them seem that scary alone, but put them all together and they are an avalanche of details that will bury you in no time. Like the agent I mentioned, you just melt down from the pressure. So whatever stage you’re at in your career right now, please make it a point to pause and ask yourself if you’re ready for success. Are you ready to start turning over a high

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volume of inventory or will it overwhelm you? Take an hour today and jot down the thousand little things you have to do, put them in the order they need to be done and program them into a calendar. If you’re lucky enough to have an assistant, sit down with him or her and do it. Make a plan for success. That way, when it happens you can enjoy it. Isn’t that what success is supposed to be all about? Debbie Hanlon is a real estate broker who has helped train hundreds of sales reps and brokered and managed a national real estate franchise. She also founded an independent real estate firm. Currently she coaches sales reps all over the world. She is the CEO of All Knight Inc, a global educational mobile company, as well as a published children’s author and the creator of the national I’m No Bully Show. https://www.facebook.com/missdebbieandfriends REM

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28 REM JULY 2014

Good Works J

LL Canada has formed a national partnership supporting the Breakfast Club of Canada. The company has set a target to provide a healthy start to the day for school-aged children by providing 100,000 breakfasts across Canada in the next year. According to the Canadian 2012 Report Card on Child and Family Poverty, one in seven children arrives at school without having eaten breakfast. The number increases to one in four children in

First Nations, Metis and Inuit communities and is 2.5 times higher among immigrants. JLL has provided enough funding to launch the program in two new schools – one in Toronto and one in Vancouver. In the next year, the firm says it will sponsor events across the country to raise money and get employees involved in their own neighbourhoods. ■ ■ ■

A charity auction breakfast

that raised $46,543 for The Ottawa Hospital also brought a surprise honour for Kent Browne, owner of Royal LePage Team Realty and Royal LePage Gale Real Estate. The United Way of Ottawa honoured Browne with the Community Builder Award to recognize the wide range of causes that Browne has contributed to over the years. These projects range from shelters for abused women to programs for the homeless and children in need. Browne’s name will be added to the Scotiabank Community Builder Wall of Inspiration, which is a permanent display at the Ottawa City Hall. In addition, a soon-to-be-completed expansion of the Ottawa Hospital Breast Health Centre will include a room to be named The Royal LePage Mammography Room.

■ ■ ■

The team from Sutton Group - Lakefront Realty in Vernon, B.C. joined thousands of other volunteers across the country in April to participate in fundraisers during Daffodil Month. The flower deliveries in Vernon raised about $12,000, which is substantial for this community of 40,000 people (a total of 58,000 in Greater Vernon). Funds raised help the Canadian Cancer Society support Canadians living with cancer, advocate for public policies to improve health and finance research into cancer prevention. The brokerage’s Beth Marks was nominated for the 2014 Woman of the Year Award from Vernon Women in Business. She is a past-president of Kalamalka Rotary and chair of Habitat Champs, a group raising money to

buy land for a Habitat for Humanity building project. ■ ■ ■

Royal LePage Niagara Real Estate presented 150 hampers to three local organizations serving abused women and their children in local communities. These “Hampers of Hope” were assembled by members of the company, their business partners and clients. Brenda Walker, a sales rep from the Royal LePage Niagara Smithville office was the driving force behind Hampers of Hope. “We were moved when a mother who received a Hamper of Hope in our 2013 campaign contacted the office to ask where she could pick up a hamper to fill and give back,” says Walker. “It’s important to hear those sorts of stories and it keeps us going.” Along with the hampers, more

Wendy Stewart, Canadian Cancer Society Vernon unit president, and sales reps from Sutton Group Lakefront Realty prepare to deliver daffodils.

The Re/Max Ocean Pacific Realty sales team presents a $12,500 contribution to Brent Hobden, community ministries director for the Salvation Army in the Comox Valley, B.C. Re/Max’s annual contribution supports the ministries’ Tuesday lunch program. Re/Max Ocean Pacific has two offices in the Comox Valley with 67 licensees serving real estate and property management clients.

If you have ever traveled to Penticton, B.C. in the Okanagan Valley, you would have noticed the huge sign on Munson’s Mountain with the city’s name on it. Recently the sales reps and staff at Coldwell Banker Okanagan Realty donated their time and paid for the hundreds of gallons of paint to have the sign refurbished.

Kent Browne is presented with the Community Builder Award. From left: Dennis Jackson, past board chair of the United Way of Ottawa; Browne, owner of Royal LePage Team Realty and Royal LePage Gale Real Estate; and Jeff Darwin, vice-president, Scotiabank.

Posing with 150 Hampers of Hope are, from left: Emily Thompson, West Niagara Second Stage Housing; Nicole Regehr, Gillian’s Place; Brenda Walker, sales rep, Royal LePage Niagara; and Haley Bateman, Women’s Place of South Niagara. Amy Flowers

Pictured under the tent at the Relay for Life event in Chilliwack, from left: Matt Stevenson, Lukas Matheson, Joe Matheson, Rabia Shafi, Alison Parvin, Kathy Werner and Scott Davidson.

From left: Sutton Group – Seafair sales reps Vipin Bajpai and family; Kareen McKinnon; Vicky Hamilton and family; Kendall Ayres and family; Kelly Tsaoussis and family; Diane Vandahl; and Maryem Ahbib.

REM JULY 2014 29

than $31,000 was collected from agents who donate a portion of their commissions to the Royal LePage Shelter Foundation. It was presented to Gillian’s Place in St. Catharines, Women’s Place of South Niagara in Niagara Falls and Welland, and West Niagara Second Stage Housing in Beamsville. I I I

Neither rain nor cold could dampen the spirits of participants in the recent Relay for Life in Chilliwack, B.C. Throughout the night on May 3, teams ran, walked and rolled to raise money for the Canadian Cancer Society. Sutton Group - ShowPlace Realty entered a 10-person team of sales reps, staff, family and friends. The Sutton Stars raised $1,800 towards the grand total of $18,000 for the Chilliwack event. This is the third time that the office has participated. I I I

Amy Flowers, broker with Royal LePage Meadowtowne Realty in Mississauga, Ont. recently held a “Shop ‘till You Drop” event in her Milton home. She filled it with gently used designer clothes and accessories and hosted a weekend-long sale to raise funds for the Royal LePage Shelter Foundation. Over two days, buyers browsed over 1,000 pieces of merchandise, all beautifully organized and displayed. More than $5,400 was raised, 100 per cent of which was donated to Halton Women’s Place. I I I

The Ladner Pioneer May Days Fair, which was established in 1896, is one of British Columbia’s largest free, family fairs. Sutton Group - Seafair Realty of Delta was a sponsor and donated time and equipment for the event. It was also in the parade that meandered through the heart of historic Ladner Village. “The theme of the parade was Heroes and Villains so all of us, including the kids, were dressed as superheroes wearing red capes emblazoned with the Sutton logo,” says Marie Piperni, administrator at Sutton Group – Seafair Realty. “We are a very family-oriented office and seeing the children of the sales reps on the float waving and smiling at the kids lining the street was so exciting. We handed out 30 kilograms of candy. There

was no age restriction; seniors loved being part of it too!” I I I

Royal LePage Estate Realty in Toronto took part in the Annual National Garage Sale for Shelter in support of the Royal LePage Shelter Foundation, raising $13,758 in a few hours. There were sales by enthusiastic sales reps at 14 homes in the Beaches, East York, Danforth and Scarborough neighbourhoods of Toronto. One hundred per cent of the funds raised will be directed to the Red Door Family Shelter and Scarborough Women’s Centre to provide safety and hope for women and children fleeing violent homes. I I I

Triovest Realty Advisors, a national commercial real estate investment and management company, completed its premier entry in Canstruction Vancouver 2014 recently. A team made up of volunteers from Triovest, PCI Group, Musson Cattell Mackey Partnership (MCMP) and Read Jones Christoffersen Ltd. (RJC) completed a Daft Punk-inspired sculpture. Over 20 teams of professional designers, architects and engineers battled it out to complete magnificent, larger-than-life sculptures in just seven hours, using only canned food and their imagination. Once the sculptures were taken down, all of the food was donated to the Greater Vancouver Food Bank Society. Canstruction Vancouver 2014 raised 65,000 cans of food for donation, adding to the over 1.3 million cans donated over the history of the event. The “Can-tastic Four’s” Daft Punk-inspired booth took four and a half hours to complete and included 9,276 cans of food including tuna and tomato sauce. In addition to the hours volunteers spent getting ready for the build, PCI, MCMP and RJC donated $1,500 each to the team – on top of the $3,000 that Triovest has committed. “Draft Punk’s hit Around the World, inspired our entry,” says Adam Cochrane, director of development and construction at Triovest. “Our team sees Canstruction as a motivating event where people gather, collaborate and create for the benefit of others.” REM

30 REM JULY 2014

John DiMichele named TREB CEO Don Richardson takes part-time consulting role

t is a period of new beginnings at the Toronto Real Estate Board as the association finalizes its transition to a new chief executive officer. This month CEO Don Richardson retires from his fulltime position with the association after 14 years of service, segueing into a part-time consulting role with TREB throughout the next two years. Stepping into the role of CEO is John DiMichele, who as chief information officer and associate CEO has worked alongside Richardson for several years. A driving force behind the introduction of numerous technology tools, DiMichele joined TREB in 2002 as director of information services. Before that he served on the associationâ&#x20AC;&#x2122;s Board of Directors and as co-chair of its MLS Selection Task Force. The start of his staff role coincided with the

launch of a new MLS system, TorontoMLS. Surmounting this trial by fire, he has been overseeing the evolution of the MLS ever since. The systemâ&#x20AC;&#x2122;s next generation, New Stratus, has run concurrently with TorontoMLS since April 2012 and in March 2015, TorontoMLS will be officially retired. DiMichele previously worked as a Realtor for more than a decade. He also served as a member of CREAâ&#x20AC;&#x2122;s Board of Directors while chair of its MLS and Technology Council. Richardson, who was recently named in REMâ&#x20AC;&#x2122;s list of people who had the most influence on Canadaâ&#x20AC;&#x2122;s real estate industry during the last 25 years, joined TREB in 2000, at a time when the association had undergone a very difficult period. The board says his leadership helped steer the organization in a progressive new direc-

tion to a member-focused culture. In addition to a major culture shift, the association rose to a number of new challenges during his 14-year tenure, including the introduction of a new MLS system, required usage of MLS authenticators and the ongoing legal challenge by the Competition Bureau. Prior to joining TREB, Richardson had a 20-year career with the Ontario Real Estate Association where he served as CEO for six years and prior to that, as an instructor and the provincial associationâ&#x20AC;&#x2122;s director of education. During that time he had an instrumental role in enhancing the courses required to become a salesperson in Ontario, says the board. His vision of instituting higher education standards in Ontario also influenced the Real Estate Council of Ontarioâ&#x20AC;&#x2122;s Continuing Education program, which aimed

to offer a straightforward, achievable professional development process for real estate salespersons and brokers across the province, says the board. In 2003, CREA recognized his contributions by presenting him with its prestigious Frank Johns Award. At its recent Spring Annual Meeting, TREB gave a video tribute that included commentary from many of the presidents with whom he has worked. He was presented with TREBâ&#x20AC;&#x2122;s highest honour, the Award of Merit, â&#x20AC;&#x153;in appreciation of the profound impact he has had on the association and the profession,â&#x20AC;? says the board. Richardson started his career as a real estate salesperson, eventually owning a brokerage in Newmarket, Ont. He plans to spend more time with his wife, children and grandchildren.

John DiMichele

REM

Don Richardson

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REM JULY 2014 31

SALES COACH

By Bruce Keith

ver notice while working out at the gym how we short our progress even though we have all the best intentions in mind? When you lift a weight that seems to be beyond your capacity, you take an alternative path. It’s natural to try and engage other muscles to get the job done. You arch your back or lean to one side or use one arm/leg in an unnatural way. It’s not uncommon to look for ways to reach your goal by cutting corners. This behaviour is simply a function of survival. It’s built into our genes. It’s human nature to conserve energy. The ironic thing is that if the purpose was to build up your biceps, these alternative paths are counterpro-

6 shortcuts that cost ductive. You just trick yourself into thinking that you have reached the goal. The same dilemma shows up frequently in the sales business. Let’s look at the danger of cutting corners in sales. As in the gym, all you’re doing is sabotaging the opportunity to reach your goal. Once you recognize this, the battle is almost won. Here are some examples of where you might be shorting yourself right now: 1. “Winging it” on a listing presentation rather than sticking to a powerful script. 2. Giving up after closing only two or three times. 3. Not exercising, eating poorly, not enough sleep, not getting up on time. 4. Making just enough daily contacts to get by. 5. Not doing the extra 10 per cent that it takes to get amazing results. (for example, one extra contact or stopping by that FSBO on the way home or sending a personal thank you note). 6. Not calling your sphere of influence every 90 days. Cutting corners is personal sab-

otage. Have another look at the above list. Find areas where you are guilty of this crime and eliminate shortcuts. Pick out one to act on today. No excuses. ■ ■ ■

What to say when they want to buy first: Ever heard this one? “We want to find the house we are going to buy before we put ours on the market. We don’t want to end up on the street, you know!” It’s easy to comprehend why people would feel this way. The problem is that in a reasonably active market, the client is going to continually be disappointed when a cash buyer shows up and “bumps their offer” before their house is sold. Your job is to help them understand that you can offer a strategy that gives them the best of both. Here is your action step. Start by asking, “Just so I understand, can you afford to own two houses?” The answer is usually no. The next step is for you to catch their attention by offering this insight: “Let me share something with you that’s going to help

you end up with the right house in the long run. The home you are going to buy is not on the market yet… may I explain?” “You are looking for a nice home, right?” (Of course) “The challenge is that so is everyone else. What this means is that we need to put a strategy in place so that you don’t fall in love with a particular home and then someone comes along and buys it out from under you before we get your place sold. You certainly don’t want that, do you?” (Absolutely not!) “The good news is I have an approach that has worked extremely well in the past for many people in the same position as you. Let me show you how we can work this in your favour so that you get the best of both.” (I’m interested.) “Great… here are the three steps that will get the job done just the way you want. 1. Let’s get together at your home so I can view your place and we will set the wheels in motion for this to be a successful venture. 2. We will then go out and look at three or four homes so you

Real estate aptitude test few sample questions and answers in a sliding scale:

By Dan St. Yves

re you a people person? Have you ever wanted to take complete and absolute control over your own employment destiny? (If you’re already a licensed real estate sales rep, please keep your unbridled laughter down…) Would you be suited to a career in real estate? Well, before you decide to get into the business, there are aptitude tests available that help to see if you may be suited to just such a peopleintensive career choice. Here are a

1) Are you a goal-driven person that plans for success? a) Absolutely! I make to-do lists and ensure that they are completed before I move on to my next task. b) I’m somewhat motivated, but prefer to “allow for the day to lead me where it may.” c) For my financial future, I invest regularly in lottery tickets, bet on ponies and lean heavily on Dr. Phil’s weekly TV advice before making any major decisions in my life. (Consider checking out real estate companies if you answered “A.”) 2) Do you listen appropriately and sincerely when other people are talking, without appearing disinterested or interrupting?

a) Yes, I am genuinely interested in getting the perspective and determining the needs of the person I am talking to, before I respond. b) A bit – say, is this going to take much longer? I have to tell you about the adorable baby goat video I watched on YouTube this morning! c) Huh? (If you answered “A”, there may be a broker/owner out there looking for someone just like you!) 3) Are you able to work with minimal supervision, yet achieve regular goals and objectives? a) Yes. I prefer to set my own standards of excellence and strive very hard to make my goals a reality, without the need of a micromanaging leader breathing down my neck. b) When you say “minimal

supervision”, is there such a thing as “maximum supervision”? c) Hey, I broke par on the front nine this morning and I don’t have a golf pro walking alongside me! (Again, if you chose to answer “A”, you are what industry leaders are hoping to find.) 4) Are you confident in your dress and personal grooming with respect to projecting a professional image? a) I certainly know that “clothes make the man” or woman. Appropriately professional clothing and grooming set you apart from others who are obviously less professional. b) But these Crocs are like soooo comfortable!! c) Dress? Well, okay but I’m not so sure I’ll be able to pull off pumps with these huge feet of mine… (If you have answered “B” or

can be comfortable that there will be properties that meet your needs. 3. The last step is for us to put your home on the market, supported by my aggressive marketing plans, and getting it sold with a longer closing date. That way we’ll have time to go out and find your new home, and put in a cash offer, make sense? (Yes it does.) As usual, the most effective objection handlers combine the use of logic, common sense and dealing with their fears. Put all this together and the motivated client will always move forward. Learn this approach and help them understand how everyone will win. No excuses. Bruce Keith is a leading trainer for sales organizations in North America. He was a marketing and sales manager for 15 years and then spent 25 years in the real estate industry, 10 years as a successful sales rep followed by the last 15 years as a keynote speaker, seminar leader, author and one-on-one coach. His high energy coupled with a “No Excuses Accountability” approach has helped thousands increase their production significantly. He says, “It’s all about results”. BruceKeithresults.com REM

“C” to any of the above questions, consider the upcoming hiring fairs at your local mall’s food court.) 5) Are you contemplative, considering all the facts before making decisions or dispensing professional advice? a) I will need a few moments to absorb the gravity of your question before I respond, please. b) I’m kind-of more about rolling the dice and seeing how things work out, given the 50-50 typical situation odds. c) Caution? Isn’t that why I’m going to have to pay for errors & omissions insurance? (Answered “C” to that one? Perhaps you would consider a career in politics?) Good luck! 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 REM danst.yves@hotmail.com.

32 REM JULY 2014

hen the Canadian Museum for Human Rights opens its doors to the nation in September, Realtors will receive named recognition near the main entrance. “The right to own property and live safely in our communities is at the heart of so many human rights conversations among us. The purpose of the Canadian Museum for Human Rights aligns with our profession’s philosophy that we are here to improve the quality of life for all people,” says Harry DeLeeuw, past-president of CREA. The Realtor campaign’s $2million fundraising goal is now met

ROYAL R OYAL LEPAGE LEPAGE S STATE TATE R REALTY EALT Y

Sarnia Lambton Real Estate Board EO Dave Burke received a plaque in recognition of the board’s participation in the City of Sarnia’s 100th Anniversary Tree Legacy Planting Project.

and DeLeeuw presented the final roundup of donations to Diane Boyle, CEO of Friends of the Canadian Museum for Human Rights. Permanent signage identifying the contributions of Realtors will face Israel Asper Way, where visitors approach the main entrance of the national museum. The goal was met thanks to contributions from real estate boards, provincial associations, private real estate companies, franchises and individual Realtor donors from across the country. ■ ■ ■

The Woodstock-Ingersoll &

District Real Estate Board recently hosted its 4th Annual Realtors Care Food Drive in Woodstock and Ingersoll for their respective Salvation Army food banks. There were 195 volunteers for the events, including about 100 Realtors covering 80 per cent of routes. It’s estimated that 4,000 pounds of food were collected in Ingersoll and between 13,000 and 14,000 pounds of food in Woodstock. “The generosity from our communities is amazing and it is estimated that the food raised in Woodstock alone will keep the shelves stocked for the next five months,” says board president William Cattle. ■ ■ ■

Former International Space Station Commander Chris Hadfield shared some insights gained throughout his career at the Toronto Real Estate Board’s (TREB) annual Realtor Quest conference in May. Hadfield, who touched on the subjects of goal set-

Celebrating at the Canadian Museum for Human Rights after Realtors raised $2million in donations, from left: Harry DeLeeuw, past-president, CREA; Peter Squire, director of public affairs, WinnipegRealtors; Carolyn Basha, Friends of the Canadian Museum for Human Rights regional campaign manager; Meghan McGill, executive secretary, Manitoba Real Estate Association; Sheldon Zamick, past-president, CREA; Kelly McArthur, Friends regional campaign manager; and Brian M. Collie, CEO, MREA.

A group from the Valley Park Middle School Children’s Breakfast Program performed at Realtor Quest (GP Photos). Kelly Byers, left, of Sutton Group Right Way Real Estate and Reneita Gossier of Century 21 Heritage House pose with food collected during the Woodstock-Ingersoll & District Real Estate Board food drive.

Part of the trade show floor at Realtor Quest (GP Photos).

REM JULY 2014 33

ting, diligence and teamwork. Day one of the conference featured a “what’s next” panel of real estate executives who offered their insights into the current state of the real estate market and its outlook. Moderated by AM640’s John Oakley, the panel included Andrew Cimerman, chairman and CEO of HomeLife; Phil Soper, CEO of Royal LePage; Howard Drukarsh, co-founder and VP of Right At Home Realty; Brian Rushton, EVP of Century 21 Canada; Gurinder Sandhu, EVP and regional director of Re/Max Ontario-Atlantic Canada; and Rick Taron, national director of franchise relations and business development for Sutton Group. As part of the meeting, election results were announced for TREB’s 2014/2015 Board of Directors. The president is Paul Etherington and president-elect is Mark McLean. The past-president is Dianne Usher. Elected to director-at-large positions: Sandra Rinomato, Donald Patterson, John Lusink, Don Kottick and Shirley Porter. Also elected were central brokerage director Tim Syrianos; central non-brokerage director Larry Cerqua; west brokerage director Garry Bhaura; west non-brokerage director Michael Collins; east brokerage director Rosalind Menary; east non-brokerage director Michelle Makos; north brokerage director Joseph Shum; and north non-brokerage director Karen Gerrard. The meeting also included an update from Usher and CEO Don Richardson on recent TREB initiatives as well as addresses from Ontario Real Estate Association president Costa Poulopoulos, CREA president Beth Crosbie and Real Estate Council of Ontario president and CEO Tom Wright. Real estate coach and trainer Brian Buffini complemented Realtor Quest’s line-up of expert speakers, offering two sessions at the conference. Also featured through the conference’s free Learning Quest component were sessions about TREB’s MLS system New Stratus and its public records offering Propertyline as well as a seminar about issues surrounding the home inspection condition, offered by lawyer Mark Weisleder. The gathering of more than 6,500 TREB members also included its share of entertainment offerREM ings.

34 REM JULY 2014

Announcement RE/MAX INTEGRA President & Co-Founder, Walter Schneider, receives J. Tuzo Wilson Award In late May, Walter Schneider, RE/MAX INTEGRA President & Co Founder, received the J. Tuzo Wilson Award from his alma mater, University of Toronto. The J. Tuzo Wilson Distinguished Alumni Award recognizes outstanding alumni for their dedication to both enriching the lives of others through community service and achieving a level of distinction in their professional field. Walter was the inaugural recipient of the award. Upon receipt of this award Schneider said, “I’m humbled and honoured to be the inaugural recipient of this award. The biggest gift my time at University gave me was to think in critical dimensions. I have much to be grateful for that.” Last year Schneider was also the recipient of the Queens Diamond Jubilee Award and in addition to his day-to-day responsibilities with RE/MAX, plays a very active role in the community serving on several boards including, Maple Leaf Sports and Entertainment Team Up Foundation, Canada’s Walk of Fame Foundation and The David Foster Foundation.

Walter Schneider President and Co-Founder RE/MAX INTEGRA

Announcement The Pearce family’s latest expansion within the RE/MAX network. RE/MAX INTEGRA Ontario-Atlantic Canada would like to congratulate The Pearce Family at RE/MAX Rouge River Realty Ltd. who have purchased RE/MAX Ability Real Estate Ltd. from Ian Smith and Patricia Begley. We would like to thank Ian Smith for his countless contributions as a RE/MAX Broker-Owner over the past 22 years and wish him well in this new chapter of his career. Ian and Patricia will both continue their affiliation with RE/MAX. With this latest expansion, RE/MAX Rouge River Realty Ltd. now has 7 locations with over 230 sales associates from East Toronto through the Durham Region including Scarborough, Pickering, Ajax, Whitby, Oshawa, Courtice & Bowmanville. Our sincere congratulations go to the entire Pearce Family (David, Dolores, Jennifer and Melody) on their latest expansion within the RE/MAX network. Congratulations to The Pearce Family

Real Estate Books Stay Out of Real Estate Jail By Barbara Bell-Olsen iUniverse $20 plus shipping B.C.-based Barbara Bell Olsen says she is “is fiercely proud to be a real estate agent who has never worked a day in her life since entering into the real estate profession more than 34 years ago.” Bell Olsen says she knows how hard real estate agents work, “but you must have a paper trail in place to be able to prove what you discussed, reviewed and suggested to your clients.” She says there are far too many discipline cases against real estate agents, “and most of them are absolutely unnecessary if an agent just took a little more care and had a plan of action.” By following her guidelines to put procedures in place, and “once you own all the documents, checklists and statements, you will be the creator of the most notable and respected contracts,” she says. It will remove any apprehensions about writing up a contract of purchase and sale and ultimately help you make more money, she promises. Available at: www.barbarabellolsen.com

Make More Money, Find More Clients, Close Deals Faster By Claude Boiron Wiley $49.95

Subtitled The Canadian Real Estate Agent’s Essential Business Guide, Claude Boiron’s book aims to teach real estate agents how to “practice real estate salesmanship properly, ethically, morally and to everyone’s mutual benefit.” Boiron, a Toronto real estate broker, walks agents through all aspects of the real estate profession, from getting started as a newbie to real-life stories about real estate deals, contributed by local sales reps. It includes a chapter about potential pitfalls

and how to avoid them. Available at chapers.indigo.ca and amazon.ca.

Buy or Run: I’m a Real Home Inspector, Not a TV Celebrity By Bruce McClure The Inspector’s International Press $30 Former sales rep and home inspector Bruce McClure’s controversial book takes aim at “celebrity” home inspectors who get a lot of publicity, but his real target is real estate professionals. “If you ask any group of home inspectors in North America about who controls their industry, the answer will be an overwhelming, ‘The Realtors,’” he writes. “Until the home inspection industry is taken out of the control and direct influence of the real estate community and becomes a truly independent transaction between the home inspector and his or her client, the industry will remain flawed. Inspectors will continue the fight for respect, simply because Realtors dramatically outnumber

us and are the first line of contact and have the most influence over our potential clients.” McClure outlines a number of situations where real estate agents have tried to cover up or lie about issues with homes they have listed. But it’s not all agent-bashing as he praises those sales reps who “get it” and put their clients first. His book is a blunt inside look at the issues and problems with the home inspection industry in Canada. Available at chapers.indigo.ca and amazon.ca

Prefabulous World: Energy-efficient and Sustainable Homes Around the Globe By Sheri Koones Abrams $40 A foreward by actor Robert Redford says: “Sheri Koone’s books have inspired professionals and homeowners to consider using prefabrication methods that reduce waste, inherently conserve energy and limit the need for fossil fuel….I hope these examples will inspire you as they have me.” It doesn’t sound like a coffeetable book, but it is because it’s illustrated with dramatic photos of homes all over the world. Canada is represented by homes in White Rock, B.C., Naramata, B.C., Toronto and Morris Island, Ont. They all feature the latest in sustainable home designs and technologies. Available at chapters.indigo.ca REM and amazon.ca

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36 REM JULY 2014

AS I SEE IT FROM MY DESK

Announcement Change of Ownership at RE/MAX Legend RE/MAX INTEGRA Ontario-Atlantic would like to congratulate Shannon Unger, new Broker/Owner of RE/MAX Legend in North Bay. Shannon recently purchased her existing brokerage from the previous owner Patti Bentley. RE/MAX in North Bay has been growing since the franchise was opened by Patti, and RE/MAX currently accounts for 24.77% of the market share in North Bay. Shannon is not only looking forward to being a professional advisor to home buyers and sellers, but also to continue being a role model and service provider to the 40 sales reps and brokers. Coming from a background in retail management, Shannon has a strong understanding of franchise and branding. Her strong ethics and management previously provided will continue to be a top priority, and Shannon looks forward to taking that challenge to the next level. Congratulations Shannon Unger

Shannon Unger Broker/Owner RE/MAX Legend

Announcement New Ownership at RE/MAX Chatham-Kent Realty Inc. RE/MAX INTEGRA Ontario-Atlantic would like to congratulate Rocky Gaudrault as the new Owner of RE/MAX Chatham-Kent Realty Inc. Rocky is excited to join the number one real estate brand in Canada. He brings over 15 years of leadership experience from the private sector with focus on customer relations, business automation and strategic planning. Peggy Van Veen will remain the Broker of Record with RE/MAX Chatham-Kent Realty Inc. and welcomes Rocky and his wealth of knowledge and experience to further RE/MAX Chatham-Kent’s presence in the marketplace. Congratulations RE/MAX Chatham-Kent Realty Inc.

Rocky Gaudrault Owner RE/MAX ChathamKent Realty Inc.

By Stan Albert

rom the Toronto Star, June 7, 2014: “Sales in the GTA soar to over 11,000 – an 11.4 per cent rise in sales over the previous year…average sale prices rose by over 11.8 per cent, with average selling price of $585,204.” As I asked in a recent article, where’s the bubble?” Here we are halfway through the year and all the pundits predicted almost the opposite would happen in the market. Where are they now? Hiding behind their laptops, I presume. But I find recent stats, not only here in Toronto but elsewhere across Canada, reveal the same reality: there’s a lack of affordable housing. For those starting out in life and in business, there is a very limited number of housing options: a) Rely on parents/grandparents to fund a mortgage for them; b) Keep living at home and put their hopes of independent living and possibly starting a family on hold; c) Rent an apartment until they have enough saved to buy either a condo apartment or a small home outside of a large city or town and face a commute. Many of our young people have huge student loans to contend with after graduation. What are their chances of home ownership with those loans looming over their heads for several years, even if interest rates continue to remain low? Students are returning home to live with parents after graduation more and more often, as I have personally experienced. Another fly in the ointment is the recent decision by CMHC to increase the requirements for obtaining a high-ratio mortgage. It seems the roadblocks for owning a home are mounting every year, yet in spite of these facts and other speed bumps, the hous-

Where will our children live? ing market continues to roll along at a remarkable growth rate across our nation. All levels of government must ramp up their individual efforts to provide affordable housing for our future generations. What most of us have seen over the years is pathetic. There’s so much land in every community that could be reasonably developed to assist our youngsters in what should be everyone’s right to a decent living space. Sure, there’s a niche in building rental units, but that’s no answer to one’s desire to own their own home. A Band-Aid approach will appease the desire for decent accommodations for those starting out in life.

mize the land usage, as we know land is non-renewable. But what about some cities and small towns whose downtowns have been decimated by urban sprawl and large box stores and malls? I think that a market niche is available, as seen recently in a CBS documentary, where an entrepreneur/developer has taken over vacated properties in New York and converted them to affordable housing. It’s working in other cities as well. So, here’s the challenge: become involved in working to get affordable housing in your local communities. Reach out to your local councils and provincial and federal representatives. Get them

Many of our young people have huge student loans to contend with after graduation. What are their chances of home ownership with those loans looming over their heads for several years, even if interest rates continue to remain low? Students are returning home to live with parents after graduation more and more often, as I have personally experienced. Builders across this country have a lot of problems with local municipalities, because the development fees are over the top. As a result we have towering monster condo buildings or stacked townhomes to fulfill the demand for housing. I am not suggesting here, my fellow agents, that we stop building all of these kinds of units. They’re a viable choice for those wishing to live and work in the downtown areas of cities and it makes sense to builders and developers to maxi-

interested and involved in the issue. It may be a start to a solution to what I see as a housing crisis for the next generation of home buyers. Until next month, see you online at stanthecoach.com. Stan Albert, broker/manager, ABR, ASA at Re/Max Crossroads’ iRealty office in Toronto can be reached for consultation at stanalb@rogers.com. Stan is now celebrating his 44th year as an active real estate professional. REM

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The trademark WEBForms® is owned by The Canadian Real Estate Association (CREA) and identifies the web based real estate forms services provided to members of CREA. *Current legislation prevents the use of digital signatures in some provinces. **A Commercial Forms View drop down option is available in Alberta, BC & Ontario.

38 REM JULY 2014

3% model gains acceptance D

iscounted commissions and part-timers – they’re subjects that make some agents’ blood boil. But in the everchanging world of real estate, are they the future, as long as service to the client doesn’t suffer? “Although we expected a lot of stigma and pushback from other agents in terms of the commission structure, the acceptance has been pleasantly surprising and we continue to have multiple successful transactions with other companies,” says real estate agent Ashley Sharpe of 3% Realty Fort McMurray, a company whose name says it all. “The 3% Realty concept has been a huge part in my growing success.” Ten years ago, Newfoundland born and raised Sharpe moved to Fort McMurray, Alta. for the summer, hoping to save money for tuition. But being a teacher was not to be. She loved Fort McMurray so much she never left.

She began on site as an apprentice, working as a welder for eight years doing heavy equipment maintenance on haulers and shovels for the mines. But the girl with long dark hair and a welder’s mask had a dream. “Real estate was always in the back of my mind,” she says. After conversations with two real estate sales rep uncles in Newfoundland, she decided the flexibility of real estate appealed to her. Seven years into her welding career, she purchased an online real estate course, completing it in less than a year. She started real estate parttime, using money from her welding job to pay for an advertising campaign that would get her photo and slogan (Make Your Most Important Decision a Sharpe One) in front of home buyers and sellers. She ran newspaper and billboard ads and also ran radio spots daily, five days a week. She also hit social media hard.

“I started radio right away and a couple of weeks later started paper ads as more listings came in. The rest followed,” says Sharpe, who is active on Facebook, Twitter and Linked In. Facebook is her biggest hub, where she posts promotions and listings to her approximately 1,000 friends. “The advertising paid off more quickly than I expected. When I got busy, I gave up welding to be available for my clients,” says Sharpe, who was the company’s top producer in 2013, just 18 months into her career. She says a focus on client satisfaction and the three-per-cent concept has led to her success. Happy agents and happy clients are the keys to a successful business. “I chose early on to become a full-time agent because my business grew rapidly and I knew that the more clients I had, the more available I had to become,” says Sharpe, whose first

By Connie Adair

sale was a $1-million house. There appears to be no stopping Sharpe, who along with her broker, Kathy Bowers, and her sister, Brittany McCarthy, who became an agent a year ago, “decided to bring 3% Realty to Newfoundland based on the overwhelming success we have seen in the Fort McMurray market. Our clients know that we are a full-service company that strives on completing the sale while they keep more of their investment. We offer 100-per-cent service for three-percent commission.” The company has received the same acceptance in Newfoundland, she says. “We have only been open a month and the support in the community and with other members has been great.” Sharpe, who has cousins in Alberta and met her Saskatchewan-born husband in Fort McMurray, plans to travel

Ashley Sharpe

home more often now that the new brokerage is up and running. “Being away from the water is difficult. You don’t miss it until you’re away,” she says. “My advice to anyone starting a career in real estate would be to join a team that has the same goals and vision you do,” Sharpe says. “To be successful you have to be passionate in what you do and devote the time and hard work to excel in the market.” REM

How to manage online reviews By Riti Verma

eal estate professionals put a lot into building and maintaining their personal brand. A key component of this is the management of their online reputation. This involves more than having a Facebook page and website. Real estate professionals must be aware of the conversations that are taking place about them. Try this little experiment: open your Internet browser and start typing in the name of your favourite car. Chances are that before you have completed typing the name of the car, the search engine will provide a few suggestions for search terms. One of them should be the make and model of the vehicle. It is very likely that you will see an entry with the word “review” included with the

other suggestions. It seems that reviews are available on almost any product or service that you can think of. They have been known to crop up informally on social media (think about your Facebook news feed – have you seen your friends complain about or compliment a product or service?) and specialized platforms that serve a particular market niche. There is still some hesitancy in the real estate industry in Canada to fully embrace online review platforms. This stems primarily from a concern that the “impossible-to-please” client (everyone has at least one!) will be more likely to submit a hurtful review than a happy client will be to provide a positive one. Reviews do come with many benefits. A well-planned communications strategy and active maintenance of your online presence can generate new business by letting your satisfied clients endorse your services. Here are five tips to manage the reviews that you’ve received: 1. Have a plan. How do you go

There is still some hesitancy in the real estate industry in Canada to fully embrace online review platforms. about your social media and online activity? Do you have a plan that includes goals, metrics and a “crisis” response protocol? It doesn’t have to be fancy, but a basic plan will take away the anxiety when a review does pop up. Don’t forget to set up Google Alerts with your name and a few associated keywords. That way you’ll be aware of any new reviews or content that comes up and can take active steps to manage how they affect your reputation. 2. Take a breath. Regardless of whether the review is positive or negative, take a minute to reflect on what is being said. Taking a step back will ensure that you don’t throw out an emotional

response and gives you time to go back to your plan. 3. If it gets sensitive - take it offline. Instead of allowing your conversation with a client to degenerate into a war of comments and CAPITAL LETTERS, take the opportunity to engage offline. It will give you time to create measured responses and the chance to “be heard” might be enough to show the client that you care. Also, a telephone conversation or face-to-face meeting could go a long way in repairing a relationship. 4. Reflect on the review. Once you’ve had a chance to investigate and deal with the review, evaluate what it actually meant to

you as a professional, to the client and for a potential client. Are there ways that you could improve your service? Are you doing something so well that it should become a focus of your marketing efforts? Critical introspection can yield some very powerful insight. 5. Ask for reviews from happy clients. It’s no secret that consumers are more likely to post a negative review on their own accord. If you have a list of happy clients a mile long, then you have a great source to begin with. Make it easy for happy clients to say a good word. The positive reviews will ensure that negative ones are seen as outliers – as crazy as it sounds, they might actually make your profile a little bit more believable too. Riti Verma is the founder and president of RankMyAgent.com, a ratings and review platform that connects clients with reputable, recommended real estate agents in their area. The reviews include qualitative and quantitative data and must follow strict guidelines. REM

REM JULY 2014 39

Buying real estate in Mexico By Linda Jones Neil

exico is a beautiful country. If you enjoy a visit here, you may begin to think about acquiring a bit of our paradise. We have mountains, lakes, rivers, forests, deserts and seashore in Mexico. We also have history, ancient cultures, handcrafts, folklore and many other wonderful things to share. Buying property in any country can be stressful. A property purchase in Mexico can be just as safe and secure as in the U.S. or Canadaâ&#x20AC;Ś if it is done correctly! Here are some guidelines for success in a real estate acquisition in Mexico: 1. Be sure the agent you select to represent you is a member of AMPI, the Mexican National Real

Estate Association. Ask for references and check them out. Be satisfied that the person representing you is experienced in Mexican transactions. 2. Insist that the person representing you is representing ONLY you, the buyer, and not also the seller unless you understand, agree to and sign an agency disclosure agreement. 3. Consider only the purchase of private property. Ejidal property (communal land) is often offered at a far lower price but it cannot legally be sold or promised to be sold until it becomes private property. 4. Be certain that you and your agent are dealing only with the owner of record or his legitimate power of attorney. Insist on receiving a copy of the sellerâ&#x20AC;&#x2122;s deed as a condition of your offer. If you and /or your agent donâ&#x20AC;&#x2122;t understand Spanish, get it translated. 5. Avoid costly and time-consuming litigation. Insist on including a binding arbitration clause in your contracts with the seller and

other parties involved. 6. Get a title investigation and buy title insurance for the full amount of your purchase price. While the initial search may seem expensive for some areas, the title policy transfers risk to the insurance company and minimizes yours as the buyer. 7. Think carefully about how you acquire title in order to avoid or minimize probate and transfer costs in the future. 8. Closing costs may run from 13 to 20 per cent of the cost of a $50,000 property. A multi-milliondollar property will be about 3.5 per cent of the purchase price. Certain costs are fixed regardless of value. Be sure to budget for closing costs and get a full estimate in writing from the company supervising your transfer. 9. The major portion of your payment for the property should be withheld or held in escrow until the deed has been signed by the seller and, if applicable, the bank trustee (if a fideicomiso).

10. Insist on receiving a registered title document for your property. If the seller is financing the property, sign a document protecting his interests in the event of your default. Be sure you know the amount that is declared in your deed and understand the tax implications. 11. Use an experienced neutral third party to supervise the transfer of title to you. Linda Jones Neil CIPS, ABR, TRC, PIC is the founder of The

Settlement Company, which specializes in real estate transfers and escrows. Licensed as a California real estate broker, she has pursued her profession in Mexico for more than 35 years. Her skills in negotiating contracts between parties from three distinct cultures have placed her services in demand as a consultant and for speaking engagements on Mexican law and customs in Mexico, the United States and Canada. Email Linda.neil@settlement-co.com; website www.settlement-co.com REM

Toronto Real Estate Board 2014/2015 Board of Directors

Paul Etherington President

Mark McLean President-Elect

Dianne Usher Past President

John Lusink Director-at-Large

Michelle Makos East Non-Brokerage Director

Rosalind Menary East Brokerage Director

Michael Collins Gurcharan (Garry) Bhaura Larry Cerqua West Brokerage Central Non-Brokerage West Non-Brokerage Director Director Director

Donald Patterson Director-at-Large

Shirley Porter Director-at-Large

Sandra Rinomato Director-at-Large

Karen Gerrard North Non-Brokerage Director

Don Kottick Director-at-Large

Joseph C.W. Shum North Brokerage Director

Tim Syrianos Central Brokerage Director

40 REM JULY 2014

Announcement RE/MAX Jazz Opens Additional Office

Mark Richardson

RE/MAX INTEGRA Ontario-Atlantic would like to congratulate Dave Coppins and his wife Noel, for recently opening an additional brand new office, located at 193 King St. East in Oshawa.

Representatives from Royal LePage Crown Realty Services in Cambridge, Ont. gathered recently at the Waterloo Wellington Flight Centre to honour one of their own. 2nd Lt. Mark Richardson, a sales rep with the firm, was among the 40,000 from across Canada recognized when Prime Minister Stephen Harper proclaimed May 9 as a National Day of Honour to commemorate Canada’s 13-year military mission in Afghanistan. Richardson was 23-years-old when he left for a seven-month tour of duty in April 2010. “For me… it was difficult leaving my friends and family. I know for many soldiers that I was overseas with, you always try to reassure people back home, because the

In 2009, Dave and Noel purchased an existing RE/MAX office and have grown the company from 48 sales associates to 140, more than tripling their size in less than 5 years. It was only fitting that they opened their new additional office to make room for their expanding business as they continue to grow. Dave and Noel’s focus on professional development within RE/MAX JAZZ Inc. creates an environment that is true to RE/MAX’s culture of working with the Best. Congratulations RE/MAX Jazz

Dave Coppins Broker/Owner RE/MAX Jazz Inc.

GET

stress that’s put on family and friends is quite high,” Richardson said in an interview with the Kitchener Post. Today, he continues to serve in the Reserve with the Royal Highland Fusiliers of Canada. “Mark has always been very humble about his mission in Afghanistan,” says broker-owner Angela Asadoorian. “We are grateful for his outstanding service to his country and proud to have Mark among our ranks at Royal LePage Crown.”

Walter Schneider Walter Schneider, Re/Max Integra president and co-founder recently received the J. Tuzo Wilson Distinguished Alumni Award from his alma mater, University of Toronto.

12 ISSUES

Viisi s t remonline.com/home-subscription to le earrn mo ore r !

Avison Young Avison Young has received TREB members, from left, Arthur Caplan, Joe Panchyshyn and Mario Vitelli were presented with the David Rossi Committee Service Award by president Dianne Usher during Realtor Quest.

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The award recognizes outstanding alumni for their dedication to enriching the lives of others through community service and achieving a level of distinction in their professional field. The award is named in recognition of the former principal of U of T Mississauga (1967-1974) who achieved worldwide acclaim for his contributions to the theory of plate tectonics. Schneider was the inaugural recipient of the award. “The biggest gift my time at university gave me was to think in critical dimensions,” says Schneider. “I have much to be grateful for that.” Last year Schneider was the recipient of the Queens Diamond Jubilee Award, recognizing his work with the Canadian Forces. In addition to his day-to-day responsibilities with Re/Max, he plays an active role in the community, serving on several boards including the Maple Leaf Sports and Entertainment Team Up Foundation, Canada’s Walk of Fame Foundation and The David Foster Foundation.

TREB’s Commercial Network recently awarded its Merit Award to member Graham Purvis. It was presented at Realtor Quest by TREB past-president Cynthia Lai.

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From left: Royal LePage Crown Realty broker Faye Schultz; broker of record Angela Asadoorian; sales rep and Afghanistan veteran Mark Richardson; and sales rep Sarah Middleton.

Presenting Walter Schneider with his award are Deep Saini, vice-president and principal, U of T Mississauga campus and Kevin Golding, right, community member of the campus council.

NSAR was named winner of CREA’s 2014 Outstanding PAC Team (large board).

REM JULY 2014 41

Orlando Corporation’s Top Brokerage of the Year Award for 2013. Orlando Corporation is Canada’s largest private industrial real estate developer and landlord. Avison Young principals Jeff Flemington and Ben Sykes, based in the company’s Mississauga office, were presented with the award at Orlando Corporation’s annual GTA brokers reception. In 2013, Flemington and Sykes worked with Orlando Corporation to complete three lease transactions covering more than one million square feet. The annual award, open to all of GTA’s industrial brokers, is presented to the brokers who have delivered the greatest lease transaction value to Orlando Corporation.

NSAR wins CREA PAC award The Nova Scotia Association of Realtors (NSAR) was named winner of CREA’s 2014 Outstanding PAC Team (large board) recently. The award recognizes and honours volunteer initiative and enterprise in advancing federal Realtor issues. CREA noted the engaging work that NSAR does to equip its more than 1,700 members with knowledge of federal government issues – including monthly

updates, a new and expanded government relations committee and expanded engagement with local, provincial and federal politicians. Recently 12 Realtors from Nova Scotia visited Parliament Hill as part of the group of more than 300 Realtors from across Canada lobbing the federal government to improve the Home Buyers’ Plan (HBP).

Toronto Real Estate Board The Ontario Real Estate Association (OREA), which oversees the Ontario Realtors Care Foundation, recently presented the Toronto Real Estate Board (TREB) and its members with a number of awards. Carolyn Griffis received the Spirit Award in recognition of her work to establish the Children’s Breakfast Program, which provides nutritious breakfasts and snacks to schoolchildren in need. Now in its seventh year, the Children’s Breakfast Program has grown to include more than 280 volunteers serving more than 40,000 breakfasts per month to children in 17 different Greater Toronto Area schools. TREB was also presented with the Spirit Award for its support of the foundation’s initiatives. TREB members have voted to participate

Real Estate Technology Lone Wolf purchases eWebEngine Lone Wolf Real Estate Technologies has purchased eWebEngine Internet Marketing Solutions from Reflect Resources. The purchase expands the privately held company’s offerings to real estate brokerages and real estate agents for website tools and lead generation. “A true end-to-end technology solution is what real estate brokerages are looking for and with the acquisition of eWebEngine, we will continue to enhance our global WOLF product line-up,” says Lorne C. Wallace, CEO of Lone

Wolf. “Over half of the eWebEngine clients are already using our brokerWOLF solution and the joining of websites and lead generation on the front end to the accounting on the back end truly gives our clients what they need to run an efficient, successful brokerage.” Lone Wolf currently offers brokerWOLF for back office operations, WOLFconnect for the virtual office and globalWOLF for the public office of the real estate brokerage. The company’s combined customer list now services almost 10,000 real estate offices throughout the United States and Canada.

in the Every Realtor campaign for the past six consecutive years, allowing TREB to contribute more than $442,000 on their behalf last year alone. TREB also received the Quality of Life Award for its many initiatives that support the principles of ensuring economic vitality, providing housing opportunities and building better communities. TREB also collaborates on providing housing solutions and opportunities, exchanging ideas with representatives of public and private sector organizations at an annual National Housing Day Symposium it has hosted for the past two years. The board also supports the Children’s Breakfast Program through volunteer and financial contributions. It supported children in need through an annual golf tournament, raising more than $13,000 for Ronald McDonald House Toronto in 2013. The board’s Past President’s Scholarships are awarded to four graduating high school students each year. Rounding out OREA’s awards were several fellowships, granted to those who have contributed to the Foundation’s goals through contributions of $1,000 or more. They were presented to Dawna Borg, Fawzi Mattar, Azizali Kanjee and Ian Smith. REM

Jumptools adds Chinese language Jumptools is now offering customers the ability to publish a version of their website in both traditional and simplified Chinese. Jumptools president Jon MacCall says, “Our plan is to continue enhancing our product by adding additional languages according to our customer needs. We added simplified Chinese to our languages roster last year and are excited to launch the traditional Chinese option now.” The latest Statistics Canada census reports nearly 6.6 million people speak a language other than English or French at home, the company says. Jumptools websites include third-party listings via CREA DDF, Google-powered maps, free mobile version and QR codes says MacCall. For information: jumptools.com. REM

Announcement RE/MAX Professionals Opens New Boutique Office RE/MAX INTEGRA Ontario-Atlantic would like to congratulate Broker/Owner, Leah Ambler of RE/MAX Professionals Inc. for opening an office in the trendy Baby Point/ Bloor West Village area in Etobicoke. The store front boutique style office will cater to the tech savvy demographic, will feature the RE/MAX world class global brand and will welcome visitors in a hip, urban setting. RE/MAX Professionals Inc. was named the seventh largest brokerage in the GTA by Real Trends Top 200 Canadian Brokerages in terms of dollar sales and transaction ends sold. Congratulations RE/MAX Professionals.

Leah Ambler

Broker/Owner RE/MAX Professionals

Inbox Update

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42 REM JULY 2014

THE PUBLISHER’S PAGE

By Heino Molls

MARKETPLACE

hirty years ago I asked a very successful sales professional if he could give me one word that would best define a great salesperson. He thought for a moment and then said, “Teacher.” I believe that is as true today as it was then. The best salesperson is a teacher who simply explains a product or service well. No embellishment, no exaggeration. The most important way to sell a product is to teach “this is what the product is”, followed by, “this is where it is, this is why it is beneficial, here is its potential, this is when it is available and here is how this particular one works.” There are no tricks in sales. If you think there are tricks, you are a poor salesperson and you should think about doing something else like factory work or rocket science, because selling is not for you. All of these factors go hand-inhand with hard work and, most importantly, attitude. There are sales aids that help but fundamentally they don’t make much difference compared to the ability of teaching. If you teach someone well, they should be able to see a prod-

Realtor, teacher uct’s function and how it fits into their world. They should be able to understand its value and make a timely decision on whether or not to buy it. You must be straightforward and honest about the product because if you are wrong or you embellish anything, your reputation as a teacher is shot and you will be out of a job. A teacher, like a sales rep, is all about reputation. Once you have ruined your reputation as a teacher, you might as well leave town. No one will trust you to work with their family again. I have often thought that one of the best services a real estate salesperson could provide to his community would be to teach a high school course on buying real estate and managing property. It should be mandatory in public school education to know about buying a house and maintaining it. With all the cutbacks that our governments are imposing on education, why not ask a good local real estate agent to come into the classroom and teach something important and meaningful, such as how to acquire and maintain a place to live? A good sales rep, after all, is a good teacher. I wish I had experienced a good agent’s explanation about how things worked in acquiring and maintaining a home when I was young. I admit I was not the sharpest knife in the drawer when I went to school. Nor am I today for that matter, but I did retain some things from good teachers. I could have learned a great deal from an agent if I had been lucky enough to have one offer a course

back in my day. When I came out of the school system I did not know what a hydro bill was or the difference between a radiator and a forced-air system. I did not know what a mortgage was or the difference between renting a home and buying one. I will wager that very few young people today know the meaning of the word mortgage. I doubt that a lot of adults know the meaning of that word either. Way back when I was young, I was going to rock concerts, I was hanging around and really not learning anything useful when, out of the blue, the most beautiful girl in all of Scarborough, Ont. told me that we were pregnant. It was the greatest thing that ever happened to me. I was still a teenager but right in that instant, I changed from a kid to an adult with a family to take care of. I thought I knew everything back then. Yet I did not know how to rent an apartment or run a household. If only I had learned the fundamentals of how to read a hydro meter at my high school instead of algebra. To this day I have never needed to know about algebra but I still have so much more to learn about buying and operating a house. Take it from a seasoned old man who still can’t run a household efficiently. You want to be a good real estate professional? Share your knowledge. Give it away. Teach and you will prosper! Heino Molls is publisher of REM. Email heino@remonline.com.

Trade Shows and Conferences For complete listings, visit www.remonline.com To add a listing to this calendar, email jim@remonline.com Century 21 Canadian Conference, Supplier Expo Sept. 10 - 12 Sheraton On The Falls Niagara Falls, Ont. Carla Ty – supplier.expo@century21.ca

National Association of Realtors Conference & Expo Nov. 7 – 10 New Orleans www.realtor.org/convention.nsf/

WinnipegRealtors Technology Conference and Trade Show Thursday, Oct. 16 Victoria Inn, Winnipeg Lucy Hajkowski – lhajkowski@winnipegrealtors.ca

Realtors Association of Grey Bruce Owen Sound Trade Show Tuesday, Nov. 18 Harry Lumley Bayshore Community Centre Owen Sound. Marilyn Newbigging Marilynn@ragbos.com

Realtors Association of Edmonton Conference and Tradeshow Wednesday, Oct. 22 Ramada Edmonton at Kingsway Lixmila Serrano specialevents@ereb.com Text: 780-868-4978

Compiled with the assistance of Bob Campbell at Colour Tech Marketing, www.colourtech.com

REM

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CANADA PROUD! RE/MAX INTEGRA is Canadian to the core. The founders of RE/MAX INTEGRA, Frank Polzler and Walter Schneider, are proud Canadians who operate a third of RE/MAX around the world. Our franchisees and sales associates share our deep passion for making Canada a better place to live.

THE 2014 CANADIAN COMMERCIAL CONFERENCE September 15-16, 2014 Parksville, BC Day 1 - Sept 15

Day 2 - Sept 16

CONTENT DAY. Features presentations and panel discussions on:

Day 2 Keynote Speaker

Register at events.crea.ca today. Space is limited! Conference co-hosted with the Vancouver Island Real Estate Board and held at the Tigh-Na-Mara Seaside Spa Resort & Conference Centre

Douglas Porter

Chief Economist, BMO Financial Group Capital markets expectations of the Canadian commercial real estate market

THE 2014 CANADIAN COMMERCIAL CONFERENCE September 15-16, 2014 Parksville, BC Day 1 - Sept 15

Day 2 - Sept 16

CONTENT DAY. Features presentations and panel discussions on:

Day 2 Keynote Speaker

Douglas Porter

Chief Economist, BMO Financial Group Capital markets expectations of the Canadian commercial real estate market

Ontario REALTORS® are eligible to earn 5 CE credits for Day 1 and 4 CE credits for Day 2

Register at events.crea.ca today. Space is limited! Conference co-hosted with the Vancouver Island Real Estate Board and held at the Tigh-Na-Mara Seaside Spa Resort & Conference Centre

RE/MAX AGENTS ARE MORE PRODUCTIVE IN CANADA 16.1 TRANSACTION ENDS: AVERAGE PER AGENT

RE/MAX agents averaged 61% more transaction ends, compared to the average of all other agents at the largest brokerages.

16.1

2014

Sutton

SOLD

RE/MAX

15.6 16.114.7

RE/MAX

16.1

SOLD

Competitors

10.4

15.6 14.7 13.6

Coldwell Banker

CANADIAN 250

15.6

SALES VOLUME: AVERAGE PER AGENT

14.7 12.013.6

RE/MAX agents averaged 43% higher sales than the average of all other agents at the largest brokerages.

Royal LePage

Century 21

11.4 12.013.6

11.4 10.8 12.0

Keller Williams

6.1

RE/MAX

5.7

10.4 11.4 10.8

Competitors

million

10.4 10.8

252 QUALIFYING BROKERAGES BY BRAND 6.1

10.4

Royal LePage - 27

6.1 RE/MAX

158

Coldwell Banker - 20

of the qualifying Canadian 250

Keller Williams - 13

Non-Franchise - 10 Century 21 - 8 EXIT - 6 Sutton - 6 Realty Executives - 2 HomeLife - 1 Better Homes & Gardens - 1

Take Your Career To The Next Level. Each office is independently owned and operated.

Visit Join Remax.ca