March 2018 by Real Estate Magazine (REM)

Issue #345

March 2018

Training, training, training Richard Miller says itâ&#x20AC;&#x2122;s the key to success

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

Page 22

British Columbiaâ&#x20AC;&#x2122;s dual agency debate Page 3

Score more agent-to-agent referrals Page 10

Using art to revitalize a community Page 26

In 2017, RE/MAX Agents Helped

362,480 People find their Perfect Place in Canada.

Based on 2017 residential transaction sides. Source: CREA, RE/MAX

remax.ca

REM MARCH 2018 3

B.C. backtracks on dual agency ban B By Danny Kucharsky

ritish Columbia has backtracked on part of its proposed dual agency ban that would have forced Realtors in the province to recuse themselves from representing both home buyers and sellers in certain cases. New rules that would originally have come into effect on March 15 have been postponed until June 15 to allow for greater education on the changes. The update by the Office of the Superintendent of Real Estate (OSRE) was announced to licensees on Feb. 9 and came after rules announced in January received harsh criticism from Realtors. “I think it’s very good news,” says Jim McCaughan, managing broker at Sutton Group West Coast Realty in Abbotsford, B.C. and a former president of the British Columbia Real Estate Association. “I think we’re going to end up with the ability to do single recusal as long as we have the consent of both parties,” something that should be possible in almost all cases, he says. In its memo to licensees, the OSRE notes it “is aware of the considerable concern from industry surrounding the implementation of the new rules and the impending implementation date.” The OSRE notes that in ending

dual agency, it was its “intent that a licensee be able to continue to work with only one party to the trade in real estate where there is a conflict relating to client representation – as long as they receive consent from all parties involved in the transaction.” “They aren’t using the words ‘we are taking away double recusal,’” says McCaughan. But “if you read between the lines (it) clearly indicates that we’re back to single recusal.” A new rule will be drafted and there will be a 30-day public consultation. Realtors noted that the previous rule, slated to come into effect March 15, would have limited consumers’ choices of real estate agents and went much further than the industry expected. New rules forbidding dual agency (where a real estate licensee represents two parties in a sale) originate from recommendations in a 2016 report of the Independent Advisory Group on Real Estate Regulation in B.C. The report was prompted by allegations that some Realtors, primarily in the booming Lower Mainland market, were engaging in the controversial but legal practice known as shadow flipping. According to the Superintendent,

ending dual agency removes the potential for conflict and serious problems and creates transparency for both consumers and licensees. Realtors initially expected they would be able to represent one party but not the other in a transaction – or single recusal – and would be able to refer one party in a sale to someone else. But when new rules were announced on Jan. 11 “they said to us ‘you can’t represent both parties (and) should be referring both,” in what is double recusal, McCaughan says. Under the old rules, when a Realtor had two buyers looking for similar homes and both wanted to make an offer on the same property, the Realtor could represent each buyer independently and both could make an offer on the listing, if both buyers provided informed consent in writing. In effect, under the January announcement, Realtors would not be able to represent either of the buyers. McCaughan says it would have meant that in the case of a Realtor who has a listing with a long-time client who then finds a buyer client who wants to buy the property, the Realtor would have to say “Sorry, I won’t be able to represent you in this transaction. I’m going to need

to send you to a colleague or if you’d rather find your own, you have that option.” Real estate rules in B.C. are made by the Superintendent of Real Estate but interpreted and enforced by the Real Estate Council of B.C. The initial January rules also placed a narrow exemption on the dual agency ban for remote areas underserved by licensees and where an alternative to dual agency would be impracticable. But that exemption would have served no purpose for Realtors in rural areas, says John Evans, president of the B.C. Northern Real Estate Board. He says a Realtor could always be made available to serve consumers in remote areas, even if that Realtor did not have local market knowledge. Evans, who is managing broker of Re/Max Coast Mountains in Prince Rupert, B.C., says the rules banning dual agency are in response to the real estate scene in the Lower Mainland and that shadow flipping is “impossible” in his area. “It’s a very unique Vancouver market where housing prices can go up by $100,000. In order for a house to go up by $100,000 in my market area, it could take 10 years. It is not a one size fits all rule.” McCaughan says the B.C.

Real Estate Association created a Realtor call for action to write letters to the premier objecting to the rules that were announced in January. “We provided them with factual information. There were many people that wrote in stories about what would happen with them in a real-life situation,” he says. “I think that the industry by and large will be very relieved to see what we interpret as a more reasonable approach,” McCaughan says of the February update. “It will give the consumer the choice. If they’re not happy to work with me, knowing that I’ll still be working with you, then they could go to a new source for information if they want to. I think it’s a completely positive step.” While the Superintendent’s new rules restrict the practice of dual agency, they do not restrict the practice of “double-ending,” in which a listing brokerage earns 100 per cent of the commission if the buyer is unrepresented. “However,” an explanation from website of the Real Estate Council of B.C. notes, “licensees should remember that dealing with unrepresented buyers creates significant risks for the licensee, the unrepresented buyer and the licensee’s client.” REM

OREA wants feedback on bold proposals

s the review of the act regulating Ontario real estate continues, the Ontario Real Estate Association (OREA) is asking members for feedback on several proposals, including removing the exemption that allows salespeople to work for builders or developers without being registered and creating greater transparency in the offer process. “The real estate market has changed tremendously since 2002 when REBBA and its Code of Ethics were first introduced,” says Ettore Cardarelli, OREA president. “Industry practices,

business models and technology that are common place today were not present for the drafting of REBBA. Updating the act will ensure Ontario Realtors are held to standards that make sense in today’s real estate market.” The proposals are intended to encourage feedback from Ontario Realtors and the public, which will inform the final recommendations that OREA presents to the government later this year, the association says. Other proposals include expanding the definition of a trade under the act. “A lack of clarity in the definition has

permitted some unregistered individuals to market themselves to consumers as professionals who can help facilitate a real estate transaction,” says the proposal. “These unregistered ‘consultants’ pose a significant risk to consumer protection.” In suggesting greater transparency in the offer process, the proposal says, “Under the current system, registrants are not permitted to disclose the contents of any offer to the other party apart from the seller. Bidding blind can create suspicion and mistrust, especially if the listing agent has their own offer…If the

parties (buyer and seller) want a transparent offer process, the act and code should allow for that with the consent of the parties.” Another proposal would deny registration to anyone applying who has “a violent or fraudulent criminal conviction in the last 10 years…with no right to appeal.” There is also a suggestion that would institute a mandatory “cooling off” period of at least two years before a Realtor who has had their licence revoked can re-apply for registration. Another proposal would fine buyer agents “when a confirmed appointment for a showing does

not show up and a timely or reasonable explanation is not given.” Members are asked to give their opinions on the proposals at www.REBBAreform.ca. “Modernizing the act is an opportunity for Ontario Realtors to strengthen our industry and enshrine the highest professional standards in North America,” says Cardarelli. “We may not get the chance to do this again for many years. We are making the most of this opportunity to once again set the gold standard for real estate regulation in North America.” REM

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

oyal LePage Connect Realty has joined forces with Royal LePage Your Community Realty. Long-term friends and colleagues Kira Cope and Darren Martel of Royal LePage Connect are teaming with Vivian Risi, Michelle Risi and Justin Risi of Royal LePage Your Community to form “a sisterhood of two brokerages,” the company says. Michelle and Justin Risi say they offer the new sister brokerage expanded territories, increased market share and a large network of shared services. The combined brokerages have 16 locations and more than 1,400 salespeople in Toronto, York Region and Durham Region. Re/Max of Western Canada, in partnership with Landcor Data Corporation, has launched a web tool that allows remax.ca visitors to look up estimated values of homes throughout British Columbia. Consumers can visit remax.ca, type in any British Columbia address (that isn’t already listed by a real estate agent) and select the desired

address from the drop-down menu. The home value estimate will appear at the top of the searched property page. “Re/Max understands today’s consumers want as much access to information as possible,” says Elton Ash, regional EVP, Re/Max of Western Canada. “Anecdotally, we’ve already received a lot of positive feedback regarding the usefulness of this tool during our pilot project in Kelowna. Eventually, we hope to provide free home estimates for communities throughout the entire country.” A new leadership group has taken over at Century 21 Dome Realty in Regina. Long-time owners Francis Bast and Rod Spence have passed the torch to new chief operating officer Nolan Tabashniuk, along with Jonah Franklin, Brent Ackerman and Carla Browne. “Nolan runs day-to-day operations and partners Jonah and Brent provide valuable mentorship to newer agents. He’s doing a great job of ensuring Century 21

Dome and their agents continue to dominate the Regina marketplace with outstanding service and an extremely high level of professionalism,” says Todd Shyiak, VP of operations at Century 21 Canada. Tabashniuk was born and raised in Regina and says he is happy to be back home after living on Vancouver Island for 15 years. During the last two years, he has delivered training and educational seminars to more than 1,500 salespeople in numerous cities in Western Canada. Browne, who two years ago was Century 21 Canada’s brand leadership award winner, provides guidance and experience at the franchise, the company says. The brokerage has been in operation for more than 30 years and currently has 97 working agents. Expansion plans are in the works, the company says. Century 21 Premier Properties has opened a new office in Osoyoos, B.C. The franchise is a partnership between Ken Davreux, Payam Sanai and Wendy

Brisebois. Davreux has been involved in the real estate business most of his life, first working in property management and then transitioning to sales in 2006. He met Sanai, who is a managing broker. The two realized that they, along with Brisebois, would make an excellent professional team. The Main Street office, previously a florist shop, was fully renovated. The group launched with three agents but have room to expand to seven, which they plan to do by the end of 2018. They also have future expansion plans in the Okanagan Valley. Engel & Völkers recently opened a new office in Oakville, Ont., led by Scott Russell, Jo-Anne Copeland and Richard Rutkowski, who will also serve as the broker of record. The brokerage will serve Oakville, Mississauga, Milton, Burlington and Hamilton.

Cover Cover photo: photo: ELIJAH ELIJAH SHARK SHARK RACHAEL LITTLE

Editor Editor JIM JIM ADAIR ADAIR jim@remonline.com jim@remonline.com

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Oliver, B.C.-based Century 21 Amos Realty has opened a new office in Penticton. “The Okanagan is a busy real estate region,” says owner Karen Amos. “This location allows Realtors to work out of their home and have a flexible career, but also provides a professional and inviting atmosphere and meeting place when they need to work directly with clients.” Amos has been serving the Oliver market for 32 years. Her Continued on page 8

Celebrating the opening of Century 21 Premier Properties, from left: Ken Davreau, Osoyoos Mayor Sue McKortoff, Payam Sanai and Wendy Brisebois.

Century 21 Dome recently donated $66,478 to Easter Seals. From From left: Darren Martel, Justin Risi, Michelle Risi, Vivian Risi, Kira Cope left: Nolan Tabashniuk; Jason Cossette, manager; Amy Weekes of and Royal LePage president and CEO Phil Soper. SaskAbilities; Brent Ackerman; and Jonah Franklin. Publisher Publisher HEINO HEINO MOLLS MOLLS heino@remonline.com heino@remonline.com

Russell and Copeland have been part of the Oakville community for more than 20 years, where they established several business ventures and led successful charitable initiatives, the company says. Rutkowski has been part of the Engel & Völkers network since 2015 as a real estate advisor in Toronto and Los Cabos, Mexico.

From left: Richard Rutkowski, Jo-Anne Copeland and Scott Russell, Engel & Völkers Oakville.

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Multiple Listings Continued from page 6

team is growing, and Amos is bringing on new Realtors to be based in the Penticton office. Danielle Gagnon, who was previously a salesperson with Royal LePage Northern Advantage, has branched out as a brokerage owner, assuming the locations in Blind River and Elliot Lake, Ont. Her company operates as Royal LePage Mid North Realty. Gagnon started her real estate career in 2013 and has a management background. She says she envisions a brokerage that provides agents with seamless support and encourages a team-like atmosphere with a commitment to community involvement. The brokerage deals in residential, recreational lakefront, farms and some commercial properties. Its trading area includes The Town of Spanish, the St-Joseph Island corridor and from Elliot Lake to north of Thessalon. Melissa Lewandowski has been appointed senior director of marketing for Canada by Coldwell Banker Canada. Lewandowski spent six years as national marketing manager for Royal LePage Canada and nine years with the Ontario Real Estate Association, holding a succession of marketing positions. Her accomplishments include development and implementation of social media platforms and marketing strategies aimed at lead

Danielle Gagnon

generation and retention. In her new role with Coldwell Banker, Lewandowski’s responsibilities include the development and implementation of Canadian marketing strategies and a social media plan. Jason and Jody Munn, along with Pierre and Cynthia Charron, recently opened Re/Max East Coast Elite Realty to serve the Fredericton and Oromocto, N.B. markets. The group has “over a decade of real estate experience and a long list of entrepreneurial skills,” says Re/Max Integra. The brokerage’s “primary mission is to provide first-class service to everyone they meet, every single time” as well as “firstclass training to their agents,” the company says. Century 21 Professional Group is expanding in Brantford, Ont. Owner Sean Bryant purchased the office from Century 21 King George Rd. owner George Karmiris in January. “This was always a goal of ours,” says Bryant. “We wanted to grow our business and increase brand awareness in our community. In the short time we’ve been open we’ve been pleased with the growth we’re seeing. We are focusing on community development and strengthening our connections with our clients.” Bryant has been working as a broker/owner for seven years and between his three offices he now manages 70 agents.

Melissa Lewandowski

Del Touet, owner of Landmark Realty Mission in Mission, B.C., has joined the Royal LePage network. His brokerage now operates as Royal LePage Preferred Realty. Touet started his real estate career with Royal LePage Fraser Valley Realty in 2000. He later briefly joined a competing brand before returning to his original brokerage. In 2008, he opened Landmark Realty Mission. The company grew over time and currently is the market share leader in Mission in production and agent count, the company says. Coldwell Banker Essential Realty recently held a grand re-opening of its re-designed premises in Windsor, Ont. The brokerage is celebrating 15 years at this location with a completely renovated office that incorporates multi-purpose space, updated facilities and a sleek, energyefficient design. The grand re-opening celebration included a ribbon-cutting ceremony and a Milestone award presentation from Coldwell Banker Canada. “We now have a more efficient and environmentally friendly office featuring a contemporary look that will appeal to both consumers and agents,” says Coldwell Banker Essential Realty president Owen Crampsie. Under-used space such as board rooms and duty rooms were removed to create multi-purpose meeting rooms and private offices. Crampsie was presented with the Crystal Milestone award by Coldwell Banker Canada’s director of affiliate services Scott Mills.

Broker/owner Mark Avedesian of St. Catharines, Ont. has switched brands, converting his office from Coldwell Banker to Century 21. “After nearly two decades with another company I was drawn to the industry-leading marketing resources and the investment in technology” at Century 21, says Avedesian. His sales reps made the move with him. Avedesian says he plans to grow to an office of 20 sales reps in the next few years. He says his goal is to refocus the group and have a great environment where they can thrive. West Coast Realty is now a Century 21 franchise in Goderich, Ont. The co-owners are John Talbot and Kelly Good. Talbot has been working in the industry for 36 years and has a strong reputation in the community, the company says. Goderich has been rated as the No. 1 place to retire in Ontario, says Century 21. Talbot and Good plan to extend their territory into other vacation destinations in the area, such as Kincardine and Bayfield. There are currently four agents working out of the Goderich office. JLL is acquiring the real estate valuation and advisory division of Raymond Chabot Grant Thornton. The largest accounting firm in Quebec, Raymond Chabot Grant Thornton has been operating for 30 years in Quebec. Sixteen professionals, including chartered

Mark Avedesian

From left: Jason Munn, Jody Munn, Cynthia Charron and Pierre Charron of The Century 21 Canada Chairman’s Circle group in Cancun, Mexico. Re/Max East Coast Elite Realty.

appraisers, will now join JLL’s Montreal office. Frédéric Labrie will lead the valuation and advisory platform in Montreal with oversight from an executive committee comprised of Brett Miller, Benoît Egan and Donald Prévost. The group will be closely aligned with JLL Canada’s existing valuation and advisory practice in Toronto, and together both teams will help develop a national strategy, the company says. Sylvain Bernèche, a former, and now returning JLL broker, will join the Capital Markets Team in Montreal. The 2018 Century 21 Chairman’s Circle was held in Cancun, Mexico in mid-January, bringing together leaders from the top 30 Century 21 Canada companies. The focus of this year’s conference was Creating the Future Together. The by-invitation-only conference featured guest speakers and workshops to help owners and managers monitor trends in other parts of the country and in the real estate industry. Speakers included Shari Pesa of Realogy; Morgan Carey and Michael Audet from Real Estate Webmasters; Errol Samuelson from Zillow; and Darin Dawson, Justin Doornbos and James Stites from BombBomb. The sharing of best practices was also a theme that ran through the meetings. Ron O’Neil from Century 21 B.J. Roth and Max and Anna Carbone from Century 21 Assurance made presentations to the group. REM

Del Touet

Owen Crampsie, left, receives his award from Scott Mills.

Karen Amos

Sean Bryant

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8 REM MARCH 2018

Score more agent-to-agent referrals

Referrals from other agents are like gifts from the real estate gods. The key is figuring out how to get them. By Toby Welch

eferrals from other agents are like gifts from the real estate gods. The key is figuring out how to get them.

estate professionals. One of the company’s goals is to expand the referral base of the agents to garner them more leads.

Holly McIntyre, a sales representative with The Realty Firm in Ingersoll, Ont. shares her thoughts on agent referrals: “Agents mainly ask other agents if they know of someone they would recommend. Or, what I find quite popular these days is posting on agent Facebook groups, asking if they know of an agent that they would recommend in a certain city.”

While in-house referral network systems can be an invaluable referral source, they are not an option for all agents. If a firm doesn’t have a referral program, agents can join a real

She says she recently received a referral from an agent in Barrie who heard of her from the agent’s broker. “I think it’s more of who you know or who’s heard good things about you. I used to work for Century 21 and networking with a large brokerage like that would always help as well. Going on any kind of real estate-related training courses or conventions helps out a lot as well. You get to meet a lot of agents from all over who may need a home listed in your area or to help their buyers relocate.” Some real estate firms have in-house referral networks established for their agents. For example, Select Referrals is an organization that Re/Max and Royal LePage agents can join to receive referrals from other real

lead. Roughly 75 per cent of my business is referred from clients and friends, 15 per cent from other agents and 10 per cent repeat clients. This didn’t happen overnight. The first 10-15 years in the business I spent building a strong foundation of clients. In my opinion, there is no shortcut to success. It takes a lot of hard work and I always treat each client the way I would like to be treated.” The average referral cost from another agent or broker is 25 per cent of a transaction side. But as with most things in real estate, that figure can be negotiated. Like Sommers, some agents offer more right off the bat, say 30 per cent. Get the details in writing to cover your end of things, whether you are referring a client

Dave Markus

Holly McIntyre

estate referral network such as Canada Referral, Proxio, Real Estate Referral Place or Agent Pronto, among others. Marvin Sommers, an associate broker with Royal LePage Noralta Real Estate in Edmonton, works hard to get referrals from other agents. “My higher than normal referral fee to other agents has helped me build up a referral network across the country. Even though I offer a higher referral fee, I still have to work very hard to retain each and every

or are on the receiving end of a referral. Other ways to increase your chances of getting agent referrals from Canada and beyond include: • Ask for referrals from agents and brokers. You won’t get any if you don’t ask. • Travel to a city in another province or country that sees a lot of traffic from your hometown. Network with half a dozen agents there and establish referral partnerships. Include

information about the other location on your website. • Connect online with agents who don’t live near you. Comment on their blog and Facebook posts to get a dialogue going. Get active on LinkedIn with other agents. Keeping your name in the forefront of their minds will increase the likelihood that they think of you when they have a referral for an agent in your city. Dave Markus, a sales consultant and associate broker at Century 21 Dome Realty and the president-elect of the Association of Regina Realtors in Regina, estimates that 20 to 30 per cent of his total commissions originate from referrals from other agents. He has a threepronged approach to building an

Marvin Sommers

agent referral system: “One – It’s all about relationships. You have to meet and engage with agents that work areas outside of where you work. A good way to do that is to attend larger-scale industry events and conventions like Banff Western Connection or the CREA AGM. Another great way is to volunteer for your boards and associations. “Two – Make sure you can provide value to those

referral relationships. An agent considered an expert in their local market is much more attractive to out-of-area clients. That means more than just knowing what’s for sale and what rate they can get. It means being able to provide a boatload of local information that’s not always easy to find, like the best school in town, who makes the best steak, or where are they planning to build the new Costco. Knowledgeable local experts hold the keys to those answers and that’s a real value-added experience. “Third – Give to receive. If you can be a source of referrals for other agents, you can quickly gain a reputation for being the go-to when someone has a referral to send. No better way to start a new relationship than by saying, ‘Here’s a referral – go make some money!’” What about the law of reciprocity? If an agent refers a client to you, do you need to reciprocate in the future? “Referral relationships should go both ways when possible to be most effective,” says Markus. “That said, I already have solidified referral relationships in some geographic areas (Saskatoon, for example) so if I receive a referral from another agent in that area, I’ll definitely take it and serve the client, but that probably won’t change that my next referral sent will still go to my regular Saskatoon guy!” Agent referrals tend to have a much higher closing rate than clients who found you randomly online or through advertising. After all, you already have builtin credibility thanks to the referring agent. It’s a win-win all around! REM

10 REM MARCH 2018

Score more agent-to-agent referrals

Referrals from other agents are like gifts from the real estate gods. The key is figuring out how to get them. By Toby Welch

eferrals from other agents are like gifts from the real estate gods. The key is figuring out how to get them.

estate professionals. One of the company’s goals is to expand the referral base of the agents to garner them more leads.

While in-house referral network systems can be an invaluable referral source, they are not an option for all agents. If a firm doesn’t have a referral program, agents can join a real

Dave Markus

Holly McIntyre

Marvin Sommers

Why Do 80% of Canadian Real Estate Agents Sell Less than 6 Homes a Year?

What You Don’t Know about the System Used by the Country’s Top 1% is Holding You Back A recent article in this publication identified that a third of Toronto real estate agents sold zero homes in 2017 and 80% sold less than six homes last year. On the flip side, few more than 100 of the 50,000 agents in the Toronto Real Estate Board sold more than fifty homes last year - that’s one-third of one percent. I can tell you that these stats won’t differ much no matter what Canadian city you analyse. Hi,Craig Proctor, here. What if I told you that if you poll, instead, the agents who have adopted and are diligently implementing my system, you’ll find a very different reality. It is a fact that the agents who use my system are very prominent in the top realm, those regularly and consistently selling over fifty, over one hundred, and even over five hundred homes a year. How can this be? After all, you’re a hardworking agent. You sincerely give it your all, getting out there each and every day, forcing yourself to deal with rejection, uncertain income, time away from your family, because you hope and believe that tomorrow or next week or next year may be different if you can just stay focused. You don’t know what you don’t know Well, I’m here to tell you that there is a different business HIDDEN INSIDE REAL ESTATE that does not require you to have impossibly thick skin, to absorb skepticism and rejection from the public and disappointment and guilt from your family. Agents have had it beaten into their consciousness that there is an unbreakable link between hard, tedious work, difficult selling and long hours to income in this business. They believe high income is the reward earned for pain and punishment. Franchisors, trainers, coaches, brokers all teach that ‘this is a Numbers Game’, so you must suffer through hordes of unqualified, indecisive, impossibleto-satisfy prospects just to unearth a gem now and then. And when the

Over 1,000 Canadian agents have attended one of Millionaire Agent-Maker Craig Proctor’s Free Discovery Days in the last three months. Learn how you can attend the next one at www.ProctorWorkshop.com market is as tough as it currently is, the solution is doubling down on it all. Working MORE hours; spending MORE money; making MORE cold calls; spending MORE time away from your family and friends. This is a lie. It was a lie in 1960, 1970, 1980, 1990, 2000, and it is a lie now in 2018. It is repeated because it’s all they know. It is defended because it is a treasured belief. To have a great income and a great life as a real estate agent, you must reject this outdated belief system – but you can’t just think it away or wish it away. You need grounds for rejecting it. You need a proven, practical replacement for it. That answer, however, is not to be found in a fad or gimmick, another “certification”, a simple, single tool like a better web site, nor will you get it from somebody with but a few years of experience suddenly declaring themselves ‘masters of the universe’. Only I have a tested and proven, comprehensive SYSTEM that is a true replacement for traditional real estate careers, and only I have the track record of success in every kind of market to back it up. At this point, it seems just about everybody has an “opinion” about me. It’s up to you whether to rely on others’ opinions or whether to investigate for yourself. Everybody’s entitled to their own opinions but nobody’s entitled to their own facts. Facts are facts. I urge basing your career on facts that you get for yourself and judge for yourself. Not hype and empty promises. Facts.

Agents have had it beaten into their consciousness that there is an unbreakable link between hard, tedious work, difficult selling and long hours to income in this business. This is a lie.

What You’ve Heard that Just Ain’t So Let me begin by dispelling some common misconceptions and falsehoods: Proctor’s System Is TOO MUCH WORK - No, we’re not delivering a magic wand. You won’t be Harry Potter. Anybody who tells you there’s a “lazy man’s way to riches” in real estate, or a “4-hour workweek”, letting your computer somehow list and sell houses, is an absolute charlatan. Yes, there is some work, early, in getting up to speed – after all, we are replacing a dysfunctional approach with a new and different System. However, the “old school” traditional agent model is a lot more work, by far, forever, including a lot of dumb work at that! The whole point of a complete System is to replace dumb, unproductive, frustrating work with smart, invigorating achievement. A whole lot of agents who were working 60 hour weeks are now working 30 hour weeks and enjoying much higher incomes with my System! If your idea is to escape work, this is NOT for you. If your idea is to be able to invest a lot more of your time working only with well screened, qualified, respectful, cooperative clients and presenting to prospects with the right mindset about expert assistance, then this IS the System for you. Proctor’s System Requires HUGE ADVERTISING COSTS Nothing could be further from the truth, because there is no greater cost than advertising that fails. The most expensive ad you’ll ever run is the ad that doesn’t work. This System’s advertising components can be implemented with small, modest or aggressive investments,

but in all cases, the emphasis is on measured, direct return on investment. Proctor’s System is OUTDATED and/or Proctor’s System LEAVES OUT “HOT” INTERNET OPPORTUNITIES and/or Proctor’s System is DEPENDENT ON “DEAD” PRINT ADVERTISING - This System definitely has a long, solid track record of success through every kind of market and media. But is constantly being updated, as a living, breathing System year after year, and not only incorporates my personal experience, but contributions and validation from thousands of top agents as well as those moving from struggle to success. New just for the sake of new is stupid. Some trainers and coaches may feel the only wares they can sell must claim, look, and sound “new” – but that all too often really means “untested ideas”. Do YOU really want to be part of an experiment? My System balances proven evergreen strategies and new, offline and digital media too. Pronouncing print media dead is VERY premature – in fact, the boomer client is best reached with it, IF you know how to use it correctly. My System does deliberately reject “hot” internet marketing and media that sucks up time and money without direct return, but it makes use of the internet and of social media in specific ways that prove themselves. Proctor’s System IS TOO COMPLICATED OR Proctor’s System IS TOO SIMPLE - We hear both in the gossip channels. There is the idea that my System is too focused, too simple, too restrictive. There is the idea that it is horribly complex and requires a small army of geniuses to implement. Both ideas are cartoonish. This is a SYSTEM. That means it has connected moving parts. Multi-step processes. Integration of online and offline media. And, of course, the all-important message content that attracts just the right clients. It is sophisticated. If you are hoping for one big, red Easy Button, one 3” x 5” card of magic ad words, one new listing presentation, this is NOT for you. We make real estate a real business (not a job). ANYONE

can use this System, a proven fact. Proctor’s System is Only FOR TOP AGENTS and/or Proctor’s System IS ALL ABOUT “TEAMS” – It is certainly true that top ranked agents in virtually every franchise network and top income independent agents use my System, and those with or building teams find it extremely beneficial. It is also true that many under-performing agents find this System elevates them to higher income, to more income certainty, and to a better life. Each agent begins applying the System where they are and to the goals they want to achieve. My System is flexible in that any agent, in any place, at any income level, at any experience level can fit it to their needs. This month, there will be a $250,000 a year agent and a $25,000 a year agent both starting with this System, and both will be able to use it to achieve the kind of progress they most need. Any characterization of this as being “for” one kind of agent and “not for” another is false. It’s okay to be skeptical, but don’t be blind, deaf and dumb You’ve undoubtedly seen advertising, promotion or information of mine before and ignored it, for whatever reason. Well, it’s okay to be skeptical, but don’t be blind, deaf and dumb. I generated over $4-million in GCI a year, from over 500 transactions a year, year in and year out throughout my over 20 year career as an AGENT, not a broker. I was twice named the #1 agent in the World for RE/MAX and remained in the top ten worldwide throughout my career - part-time, doing a lot less prospecting than you probably do. I do NOT bring you “exciting ideas.” I bring you hard-won, track-record grounded, relentlessly practical methods to elevate your income, reduce your stress and struggle and improve your life. Why wouldn’t you want to investigate this for yourself? Are you sure you should continue to ignore ME? Over 1,000 of your fellow agents chose NOT to ignore me by attending my entirely FREE half day Discovery Day in the last three months alone. Do you want to guess about what they now know that they’ll be able to use to elevate themselves out of the sobering statistics I quoted earlier in this article, or do you want to find out yourself? For free. Learn how you can attend the next one by visiting www.ProctorWorkshop.com.

12 REM MARCH 2018

Danger of not reporting claims to E&O insurer

By Bob Aaron

recent Nova Scotia court judgment emphasizes the importance of providing timely notice of potential claims and regulatory complaints to the errors and omissions insurer of a brokerage. Hermiena Murphy was a real estate agent who had been working for 20 years with Halifax brokerage Hants Realty Limited, a company owned by Larry Matthews. In April 2005, Robert and Anita Patten purchased a home at 26 River Court, Enfield, N.S., from CIBC following a foreclosure action. It turned out that the home had an inadequate supply of domestic water. Murphy was the agent in the transaction.

The property buyers filed a complaint with the Real Estate Commission that Murphy did not inform them about the inadequate water. Unfortunately, the complaint was not reported to the insurer for Hants during the policy period. The buyers then sued Murphy and Hants Realty, alleging negligence, misrepresentation and breach of contract. Murphy cross-claimed against Hants and Matthews. At the 2015 trial, the case against Murphy and the brokerage was dismissed. The judge found that Murphy did not know of any latent water supply defect. When the real estate agent and the home inspector raised concerns about the well, the Pattens made it clear that they were not concerned because they planned to drill one. In her lawsuit against Hants and Matthews, Murphy asked the court to award her a reimbursement of her legal fees, taxes and disbursements in the Patten lawsuit because Hants/Murphy had not reported the complaint to the professional liability insurer of Hants during the

policy period. As a result of the failure to put the insurer on notice, Murphy was denied insurance coverage in defending herself in the Patten negligence action and was personally responsible for her legal fees. The issues in the court case were whether Hants/Matthews owed Murphy a duty to report the complaint and whether Matthews was personally liable. Murphy argued that as Matthews had told her there was no need to report the claim he was personally liable in negligent misrepresentation. Matthews stated it was his belief that only lawsuits needed to be reported to the insurer and not complaints, which were not included in his understanding of a “claim” under the insurance policy. Matthews testified he had not read the insurance policy. Hants and Matthews also argued Murphy had deliberately withheld material facts about the claim contained in third-party emails regarding the inadequate wells, and thus acted in bad faith. The trial took place in Nova

Scotia Supreme Court last September before Justice Ann E. Smith. The judgment was released in November. Murphy was awarded damages of $75,711. The judge found that Matthews’ claim that Murphy deliberately withheld information about the well problems was without merit. The judge also ruled that it was an implied term of Murphy’s contract that Hants would report any claim against her to the insurer within the policy period. When it failed to report the complaint to the insurer, Hants had breached Murphy’s employment contract. The complaint was clearly a claim that fell within the policy definition. The court held that Hants owed Murphy a duty to exercise reasonable care when determining whether to report the claim. Matthews knew, or could reasonably have known, that the complaint was a possible claim under the policy, and it was reasonably foreseeable that failure to report the claim would cause Murphy harm. Hants therefore breached the duty of care owed to Murphy.

Matthews had also made an untrue, inaccurate and misleading statement in telling Murphy the complaint did not need to be reported. Matthews had acted negligently by not reading the policy. Murphy acted reasonably in relying on Matthews’ representations, given their relationship history and she had also suffered loss. As a director of Hants, Matthews was personally liable for any wrong that he committed while acting in the course of his duties. The court ruled that Hants and Matthews were jointly and severally liable to Murphy for damages of $75,711 plus pre-judgment interest. I always advise my agent and broker clients that when it comes to a claim or regulatory complaint, or even potential claims or complaints against them, the safest course of action is to report it to the insurer at the earliest possible moment. Bob Aaron is a Toronto real estate lawyer and columnist with The Toronto Star. Email bob@aaron.ca, website aaron.ca, Twitter @bobaaron2. REM

How to deal with an online inquiry By Ross Wilson “Faith is taking the first step even when you don’t see the whole staircase.” – Martin Luther King, Jr. f you get an internet inquiry, it’s a little different from a phone call in that at least at the outset, you have to rely solely on a variation of a phone script. Digital messages are notoriously misinterpreted because of the intrinsically cold anonymity. It’s almost impossible to emote in print, to inject warmth, charm and natural magnetism – your charisma – particularly for someone with deficient writing skills. However, the intent is the same; trade information. Because there’s no

voice inflection or casual remarks, no smiles thrown into the mix, choose your words and phrases carefully. You may have one fleeting opportunity to connect. But look on the bright side – you got a request for more information. And unlike a possibly anonymous phone caller, by default, you got their contact information – their email address – and sometimes their name. If they gave you some contact info like a phone number or last name and where roughly they live, prior to contacting them, learn a little about them. For example, perform a reverse phone number search and determine if their home is for sale or sold. Check the sales history of their property. Knowledge is power. If they ask for a reply by phone or email, call them. The odds of establishing a personal connection with your

digital voice are far greater than with anonymous digital ink. In a written reply, skip the boasting verbosity. Be courteous and succinct. Introduce yourself and thank them for their inquiry. Carefully answer all their questions and, as with a phone inquiry, follow each of their questions with your own. Don’t be too aggressive or personal. Keep your questions general and few. Since many people don’t read much beyond restaurant menus, a long reply may not even be read past the first answer to their most pressing question. Offer your help with any other properties, no matter with whom those homes are listed. You could provide a little information about yourself, adding that you’re there for them, and include a link to other comparable listings. Offer to call or meet with them for a personal, free, no-obligation consultation. Here’s

a sample reply: “Dear Jane: “Thank you for your email inquiry. Here is the information you were seeking. (List their questions, followed by direct answers in a straightforward point-form or narrative format. If you’ve created an e-brochure with photos, include it as a link or attachment in a popular file format. Or offer to mail it to them, for which you’d need their postal address.) Due to a hectic schedule and ample showing activity, I have no open house planned requested”. However, at your convenience, I would be pleased to arrange a private viewing for you. “I realize you might only be at the information gathering stage and not yet ready to share information about yourself or your needs. Be assured that I will respect your online privacy. Aside from

one follow-up contact to confirm successful receipt of this message, I will only reply to your further requests”. Offer your complimentary search service. To personalize your message, attach a head-shot to your signature. A link to your website where they can view a virtual tour or more photos is also a good idea. If they don’t reply within a day or so, contact them, preferably by phone, to ask if they received your message and if you answered their questions. If they reply, you’re in the game. If not, at least you got off the bench to bat. Ross Wilson, broker with iPro Realty, has extensive experience as a brokerage owner, manager, trainer and mentor. His book, The Happy Agent – Finding Harmony with a Thriving Realty Career and an Enriched Personal Life is available where print and e-books are sold, including the TREB, BREB, RAHB and OMDREB stores. Visit Realty-Voice.com. REM

HomeLi fe TM

thei nternati onalhi gher s t andardsreales t atebrand TM

2018HomeLi f e I nt er na t i ona l Conf er ence

Apr i l19t h&20t h,2018

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KeynoteSpeaker

Andrew Ci merman

FounderandCEO HomeLi f eReal t ySer v i c esI nc .

Guest Speaker

Ti m Hudak

CEO oft heOnt ar i oReal Es t at eAs s oc i at i on( OREA)

™ Hi gherSt andar dsAgent s…Hi gherResul t s!

14 REM MARCH 2018

How I disappointed my client By Debbie Hanlon

aving always considered myself a very good, hard working and fashionably dressed real estate agent, I was shocked when a former client contacted my assistant on another matter and told her how disappointed they were with me. I was mortified. Service was my selling point, I always went the extra mile, I smiled the extra smile and I took pride in taking care of my client’s every need. Plus, my contacts through real estate and my everso-busy amazing life made it easy to put them in touch with people who could help them in other areas. To be told a client was

disappointed in me was pretty much the worst thing I could imagine hearing. My assistant told me in a text and I was on the road at the time, so I didn’t know why they were disappointed. Again and again as I drove to my office, I ran through the deal we’d done. It was one of the most complicated and difficult deals I’d ever done in 20+ years of wheeling and dealing. To get it to close I had to use every trick in my real estate selling kit. I’d saved that deal a dozen times, pulled it out of the fire, dusted it off and brought it back to life and kept it alive until it closed. Driving along, I thought of all the favours I called in from home inspectors, lawyers, electricians, plumbers, snow clearers and even cleaners, which left my favour cupboard pretty much bare. I also thought about all the hours of work I’d spent along with the hours of sleep I’d lost making the

deal work. By the time I got closer to my office, I wasn’t thinking anymore, I was stewing. I was angry. How dare they, after all the work I’d done for them, come back and say they were disappointed in me? I’d worked magic for those people. If they only knew how good they had it. Oh, those ungrateful clients, I thought, as I parked and headed inside. I was steaming when I walked in the door. I was ready to vent to my assistant and list off the litany of injustices that had been done against me. I was right ready to tell those clients how disappointed I was that they were disappointed with me, when my assistant spoke up. She said the clients were disappointed because they hadn’t heard from me since the sale. Sure, I sent a thank-you card and I also sent them a Christmas card, but did I reach out personally? No, I did not.

And just like that, I went from feeling angry to feeling somewhat embarrassed. How could I think that they owed me an apology? They owed me nothing, because the simple truth is, all I did was my job. I’d signed them on to sell their home and I sold it. How many hoops and loops I had to jump through to make it happen is just part of the job sometimes. They’d done nothing wrong, it was me who had fallen down on the job. Real estate is a contact sport and I had not kept in contact the way I should have. As my readers know, I follow a systematic approach to selling real estate. That way I don’t have to reinvent the wheel on every deal I do, I just follow the steps and things usually go swimmingly. This took me by surprise though. How many other clients had I disappointed by not maintaining close enough contact? Right then, right there, I added

another step to my selling system. Now I call every client and talk directly to them. I ask them if there was anything I could have done better, because that’s what we should always do; try to do better. Now with my new After Care steps inserted into my selling system, I don’t think I’ll ever get another call from a disappointed client. After the deal, use some after care and make it a point to never disappoint. 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. www.facebook.com/ missdebbieandfriends REM

16 REM MARCH 2018

What your Realtor would like you to know THE GUEST COLUMN

By Laurel Price

ecently I wrote the following for my Facebook page. It was so well received that I thought I would share it with REM readers. Yes, there are some dishonest real estate salespeople out there, just as there are terrible people in every profession. These sales reps have hurt the public financially and broken the public’s trust. They should be fined heavily and banned from real estate. But there are also many real estate salespeople who are trustworthy and work hard every day. They demonstrate their integrity even when it costs them a paycheque. They will tell you the truth even when it’s something you don’t want to hear. That’s

how important it is to them to be upfront and honest. To every one of you who have been hurt by a dishonest sales rep, we grieve with you and offer our humblest apologies that you’ve been through that. It makes us sick too and angry that our reputations are lumped in with the bad guys. We work hard to make ourselves available to you… evenings, weekends, holidays and late at night. That means we give up family time to make sure you are getting what you need as our valued buyers/sellers. But there are times we need time away with our families, so we pay another trusted salesperson to look after you while we are unavailable. Then we stay in close touch with them to make sure everything goes well. Clients who worry about wasting our time are never the ones who do. Please don’t call the listing agent to see their listing because you don’t want to bother us. It puts the listing agent in a conflict of interest working for their seller, but not knowing they are being expected to look after our buyer. Call us and we will make sure you can see the listing as soon as possible. And the reverse is true. If we

are the listing agent, please be honest when we ask if you are working with a Realtor. We don’t want to interfere with an existing relationship…and we don’t want to waste our time when you are working with someone else. We value our relationship with you and your family. Buying/selling a home is often a strangely emotional and intimate experience…we spend a lot of time with you and usually get to know you well. We grow to love your kids because we see them so often (and face it, they are great kids, right?). That’s why we treasure your referrals to family, friends and coworkers…it means you treasure our relationship too. We are only human, and there are times when we fail, but we do our best to do our best for you and your family. If there is a problem, please talk to us first and give us a chance to solve the problem. Expectations are a funny thing… it’s impossible to meet them if we don’t know what they are. And remember, we have expectations of you too, so let’s be upfront about how to work best together. Although we can pick out problems with a property just because of our experience, we aren’t

roofers, plumbers, electricians or foundation experts. That’s why we ask you to get a home inspection done. Home inspectors don’t pay us to refer you to them…we just think it’s wise to have an independent set of eyes looking at this huge purchase you are making. And yes, home inspectors miss stuff all the time, but they do their best too. Being a Realtor is an expensive business to be in. Unless you are self-employed, it’s often hard to understand the risks we face financially every day and the expenses we cover just to be in business. Sometimes we go months between pay cheques, then get several in one month…so we must manage our money well to make sure we can be responsible financially. We pay for everything ourselves, from our liability insurance to advertising, car expenses to staffing, professional dues and fees to continuing education (which are required to keep our licensing). We must work for a brokerage, and they get a substantial portion of every dollar we make. So that great big pay cheque you think we get is a whole lot smaller than you imagine. Most of us do this job because we love it, and the people we get to meet and

work with. We do a lot of work we don’t get paid for behind the scenes… from advice given to research done, then miss the paycheque because the seller sells their home privately using the information we gave them. Or the buyer we showed a gazillion homes to goes and buys privately. And yes, we can go after them for commission, but that doesn’t build good customer relationships in the end. We usually just sigh and move on to the next client. We value you. You’re important to us and we respect how difficult buying or selling a home can be. Please be patient with us as we work hard on your behalf! Laurel Price is broker of record at Price and Associates Realty in Sarnia, Ont. “We believe in a non-traditional approach to our business of supporting buyers and sellers through the exciting and stressful process of buying or selling a home...it takes more time, but we want our clients to understand and enjoy the process,” she says. “Referrals are always welcome, but we would also be happy to share our experience in a non-traditional real estate practice. Phone 519-383-5050; Website www. priceandassociates.ca REM

House pros and cons By Dan St. Yves

epending on your clients, literally every house has advantages and disadvantages when it comes to helping them find their dream home. The usual suspects are location location location and price price price, but you may very well be entering a blind alley if you don’t know exactly why a particular style of home may not work for the buyers. Bungalow: A one-storey home, with or without a basement.

Very popular, and these warm, inviting abodes exist in many mature neighbourhoods. Pros: Perfect for a small family or couple, less maintenance than a larger home, low enough to the ground to eliminate the average homeowner’s fear of heights. Cons: Not terribly suitable for the couple hoping to break the Guinness World Record for Largest Family in a Single Dwelling, nervous pacers or a substantial model railroad aficionado. Walk-out rancher: Much like a bungalow, but indeed featuring a walk-out basement, above grade in the rear of the home. Pros: More room to roam, an entire extra level to hide out until things cool off with your spouse, and if you have a domesticated

llama, shelter from storms. Cons: One more point of entry for potential burglars, a possible concern for water leakage if the yard slopes towards the home and an effective engineering challenge to determine how your model railroad will make it to the upper level without blocking the Roomba route. Three-level/four-level split: Aspects of a bungalow but spread out over scattered levels with just a few small steps up or down to each room. May or may not feature a full basement below grade and likely to have an upper level housing the bedrooms. Pros: The ultimate in living space, next to a mansion (not covered in this column). For a large family, well-defined spaces for

everyone’s recreation and relaxing. Allows for a man cave in the main area of the home, not isolated in a basement or garage. Cons: The space will be so large, you will need to reprogram the Roomba to traverse ramps to deliver snacks and beverages. The space will be so large, you will be inclined to maintain one room right off the entry door to change clothes, watch TV, eat and sleep. The space will be so choppy and large your model train set will repeatedly fail to make it up the Roomba ramp to get the freight delivered on time. Tudor: A popular style incorporating medieval architecture, sometimes combined with Renaissance themes. Also relates to Threedoor and Fourdoor

(Bah doom boom! Here all week folks!) Pros: Sweeping, grand designs. Hard-to-replace fixtures and finishes that will make your home unique in the neighbourhood. Discreet use of arches, none typically golden. Cons: Sweeping, grand designs will cost a fortune to repair. Hardto-replace fixtures and finishes may require an on-site blacksmith to recreate. Drunk knights and lords will often mistake the home for their own. Model railroad replaced by catapult and moat. Humour columnist and author Dan St. Yves was licensed with Royal LePage Kelowna for 11 years. Check out his website at www.nonsenseandstuff.com, or contact him at danst. yves@hotmail.com. REM

EXIT REALTY CORP. INTERNATIONAL HOSTS

First-of-Its-Kind Leadership Forum EXIT Realty Corp. International hosted the ﬁrst-of-its-kind leadership forum in Grapevine, Texas, bringing together professionals from all facets of the organization from Canada and the U.S. in a two-day summit focused on building individual leadership skill sets. The Forum was dedicated to the memory of Vice President of Personal Development, Bill “The Bald Eagle” Nasby. Keynote speakers included Dr. Mike Armour. With ten books to his credit, six in the ﬁeld of leadership, Armour has been published in over a dozen languages worldwide. In 2001, he launched Strategic Leadership Development International Inc. based in Dallas, Texas and since then he has coached and trained thousands of executives and entrepreneurs. Also on the dais was internationally renowned speaker, Richard Flint. Hailed as one of America’s top personal development speakers, Flint is an author and lifestyle coach to those seeking to stop repeating and start achieving.

Award-winning Canadian Franchisee, Parise Cormier addresses leadership forum.

The Leadership Forum was the brainchild of EXIT Realty Corp. International’s Director of Leadership, Bob McKinnon. “When John Maxwell says ‘Everything rises or falls on leadership’, he has oﬀered a simple but powerful truth,” said McKinnon. “At EXIT Realty, we believe that strong leadership accelerates growth and enriches lives.”

OUR ENTIRE FOCUS IS ON BUILDING BETTER PEOPLE. BY BUILDING BETTER PEOPLE WE BUILD A BETTER COMPANY.” — Tami Bonnell, CEO, EXIT Realty Corp. International Individuals from the company’s corporate Executive team, Regional Owners, Broker/Owners and Agents gathered with a single goal; to learn practical tools to help raise their leadership lid. Veteran Broker/Owners, Nick Libert from Illinois, Jim Mazziotti from Oregon and Bernadette Cole from Maryland, spoke candidly about the development of their multi-award-winning brokerages. Canadian superstar Broker/Owner, Parise Cormier, captivated the audience with her journey “From Broken to Broker”. Cormier was named EXIT Realty’s Broker of the Year for Canada in 2013 and her brokerage, EXIT Realty Associates in Dieppe, New Brunswick, was named the number four largest grossing EXIT Realty brokerage in North America in 2017 among offices with a single location. Bill Pankonin, Regional Owner of EXIT Realty Upper Midwest who recently acquired the subfranchisor rights to Illinois, spoke on “Leading Effectively into the Future”. U.S. Divisional President Craig Witt spoke on “It’s Not the Role, It’s the Goal”. Five of EXIT’s John Maxwell Team-certified trainers including Mazziotti and Cole as well as Alex Cole from Maryland, Rick O’Neil from New York and Andre Malenfant from New Brunswick lead attendees in focused mastermind sessions in the weeks following the Forum. One of those in attendance was Kathy Hobbs, Broker/Owner of EXIT Realty Pinnacle Group in Quinlan, Texas. “It was the most important meeting I have ever been to,” she said. “I feel like I walked out with a suit of armor and I am a better person.” “Our entire focus is on building better people,” said Tami Bonnell, CEO, EXIT Realty Corp. International. “By building better people we build a better company.”

W W W . E X I T R E A LT Y. C O M REM March 2018.indd 2

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18 REM MARCH 2018

Listing bloopers: Wood beans, sweat homes

By Peggy Blair

’m at that age now where I’m conscious of every lost moment, so I really felt for the agent who wrote in this listing: “24 hr irrecoverable on all offers.” Sigh. I loved this new listing: “The view is speechless!” I’ve certainly seen views that took my breath away, but I didn’t expect it to work the other way too. (Although as one of my friends pointed out, it could be worse – the view could be unspeakable!) In this recent listing, the agent advises that the condo corporation

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will be installing “wood beans.” Now that’s going to take someone with patience and attention to detail; ideal for a bean counter. Sometimes I feel as if my garden is getting away from me, but the backyard in this new listing takes that to a whole new level: “Library retreat overlooking soaring back yard.” This poor home reminds me of the way I feel after an hour at the gym: “newly pained and refreshed.” I had a chuckle at this one: “Trendy and well kept sweat home.” When it comes to hot and sweaty, I enjoyed the enthusiasm of this listing that called on buyers to “be aroused & draw from nature.” I hope that property comes with a shower; not sure if I want to see the pictures. Mikki Halpin posted this gem on Twitter: “Ready to live in a Dickensian neighbourhood but still experience the spoils of the city?” (She wondered if the sales rep had ever read Dickens.)

AT HOME

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This property is “waiting for your decorating flare.” Nothing like a sudden burst of flames to add a cosy touch! Here’s a listing that sounds perfect for a beauty salon owner: “You’ll be blown away by the high coiffured ceilings.” Speaking of architectural features, this listing has: “TILE in the wet areas, all windows and the roof.” Sounds nice, but I’m guessing all that tile makes it hard to see outside. Here’s another one that made me wonder: “Living room has impressive vaulted ceiling with gas fireplace.” I’ll bet the trades had fun installing that one. This rental property is apparently managed by “Eastern Ontario Property Mange” – probably not pet-friendly. By contrast, this new listing included a new “furness.” (I’m sure they don’t mean a puppy but I’m thinking maybe they should have their ducts cleaned.) And here’s one that made me smile: “Great opportunity for the growling family.” Grrr. I’m not sure how most buyers would feel about this property: “The finished basement includes central vac rough in and bat.” (Mice would make me nervous enough; a bat would be pushing it.) This basement, on the other hand, seems quite inviting: “Large unspooled basement.” Talk about a great place to unwind! Here’s a selling point for millennials: “Easy to compute downtown.”

This listing made me snort: “Giant chef’s kitchen.” And I laughed out loud when I saw this listing: “property has oversized rear.” Believe me, I share your pain. I wasn’t quite sure what point the sales rep was trying to make about this property, since we usually describe things as being deceptively small, but I wish I could say the same about my oversized rear: “the yard is deceptively large!” Here’s an unintentional gem: “No rear neighbours backing onto trees.” Phew. This blooper made me feel a little sad: “Lonely and private three-bedroom condo backs onto ravine.” I wasn’t sure whether the agent had an auto-correct feature that assumed if you said “crescent” you meant something else, or if the salesperson actually intended to say this in their listing, but it struck me as funny: “family home in familyoriented street, on quiet eyebrow.” Either way, it makes me want to see the aerial shot. Carol Teichman, a sales representative with Re/Max Realtron Realty in Toronto, contacted me about a listing that she ran across that featured “All new widows”. She writes, “Now that’s a selling feature! I wonder what happened to the old ones?” Personally, I’d like to think they ran off with giant chefs. This property had an odd feature: “Hardwood in living/

dining and kitchen with upgraded carpet under padding in both bedrooms.” Most trades install carpet over the under-padding, but maybe it lasts longer the other way. And then there was this listing that made me wonder where the wiring was in the rest of the house: “This basement has in wall wiring for the ultimate experience.” I loved the mental image generated by this brand-new listing: “The breakfast nook walks out to a completely landscaped backyard.” Maybe it goes out to check the trees for those rear neighbours, but I’m kind of hoping it’s making friends with that lonely condo. And then there was this blooper: “Costume this home to your exact taste.” Great feature for Halloween lovers. And finally, perhaps my favourite listing blooper of the New Year so far: “Master Bedroom has a vanity with sin and cheater door.” I sure hope no one has to use it. Peggy Blair is a sales representative with Royal LePage Team Realty in Ottawa. A former lawyer, she is the award-winning author of the Inspector Ramirez series published by Penguin Canada and Simon and Schuster Canada as well as internationally. Her most recent book, Umbrella Man, is now in bookstores. If you come across any real estate bloopers that tickle your funny bone, be sure to send them to her peggyblair@royallepage.ca REM

Re/Max of Western Canada promotes personal safety app

*plus applicable sales tax

VISI VI ISI S T REMONLINE.COM/HOME-SUBSCRIPTION/ SIT

e/Max of Western Canada is partnering with PROtect to provide personal safety applications to its members. The app allows salespeople to connect with their closest contacts and alert them when they find themselves in unfamiliar or emergency scenarios. Merideth Schutter, CEO and founder of PROtect, is a Vancouver-based Re/Max sales associate who created the app. “There have been several close calls during my career in real estate, and I even created my own security hack – keeping my mother on the phone in case of emergency

– when I was in vulnerable situations,” she says. She says she launched the app “with the goal of leveraging mobile technology and personal networks to create a virtual security guard.” “There are many situations when Realtors are alone, such as at an open house,” says Re/Max of Western Canada EVP Elton Ash. “We believe the PROtect app has the potential to add an extra layer of security, not only in our industry, but for anyone who finds themselves in a vulnerable situation.” The application allows users to send out an alert to a circle

of chosen friends, known as “protectors,” if they feel at risk at any moment. Alternatively, it allows them to set up a timer for an alert as they enter a situation they are cautious of. Once an alert has been sent, the protectors are shown the location of the user, along with information on their battery status and any photos or notes taken during a specific event. The application allows the circle of protectors to communicate with one another to ensure the user is safe. PROtect is now available for download on the iTunes store and Google Play. REM

We are proud to commemorate the 20th anniversary of the Royal LePage Shelter Foundation and our commitment to ending domestic violence in Canada. On behalf of the hundreds of women’s shelters across the country who have beneﬁted from our support, we thank the generous Royal LePage professionals who are so dedicated to our cause. In two decades, with your support, we have raised more than $27 million to help thousands of women and children each year lead safer, happier and more hopeful lives.

of saving lives This is not intended as a solicitation of any sales representatives or brokers that are currently under contract. All oﬃces are independently owned and operated, except those marked as “Royal LePage Real Estate Services Ltd.”, “Royal LePage West Real Estate Services” and “Royal LePage Sussex”. Any copying, reproduction, distribution or other use of these materials is prohibited. ©2018 Brookﬁeld Real Estate Services Manager Limited. All rights reserved.

Executive Director Royal LePage Shelter Foundation

Help us end domestic violence in Canada.

royallepage.ca/shelter

The 10th Annual National Garage Sale for Shelter will be held at Royal LePage oﬃces from coast-to-coast on May 12, 2018. #garagesale4shelter

Executive Director Royal LePage Shelter Foundation

Help us end domestic violence in Canada.

royallepage.ca/shelter

The 10th Annual National Garage Sale for Shelter will be held at Royal LePage oﬃces from coast-to-coast on May 12, 2018. #garagesale4shelter

22 REM MARCH 2018

Training will be game changer, broker says

Salespeople who are under-trained are being set up for failure, says broker Richard Miller. He wants to help train not only his agents, but those from other brands. By Susan Doran

ome figures show that an alarming 90 per cent of real estate sales reps fail and wash out of the industry within the first couple of years, says Richard Miller, owner and broker of record of newly launched Realty Executives Allegiance in London, Ont. He’s convinced that more comprehensive training at the brokerage level could fix this. “I think our industry is one of the most lax where training is concerned, not in the (provincial) education sector but in the brokerage,” he says. “My interest is to introduce the world of real estate to a new way of doing business. My motto is training, training and more training, both in and out of the office. I believe training is key.” In a unique twist it appears that where training is concerned, Miller – whose office specializes in both residential and commercial real estate and officially opened just a couple of months ago – will even be happy to accommodate sales reps from other brands. “All are welcome. It’s an equal playing ground. No one has the market cornered so why not work together?” he asks. “My belief is that no one brokerage or franchise or company has all the answers.” A fresh chapter in real estate is beginning, he says, and he wants to break new ground. “We need to fix the weak link in the industry. Education is the answer,” he says. “I want to be the go-to destination for outstanding and progressive training in real estate. The goal is simple – extend a helping hand to all new and practicing agents.” Miller says he believes that training within brokerages will soon change altogether and that a “more dedicated real estate

broker will emerge to provide more intensive training” than ever before. “The industry will demand higher and higher standards for all agents and brokers. That will in turn create the need for specialized training,” he says. “It is time to start thinking outside the box... There are lots of changes currently in education. We’re on the frontier. I believe training will be your biggest ally.” Today’s under-trained agents, who are being “unleashed” on the public after an inadequate “quick start” training program by their broker, are being set up for failure, in Miller’s opinion. “We need better educated agents before they hit the streets,” he says, citing poor training and lack of availability of brokers as sales reps’ main complaints. As a new Canadian franchisee under the umbrella of flexible-fee structured, global brand Realty Executives International, and with over 12 years as a top sales rep under his belt, Miller believes he can help turn the tides. It’s among the reasons he went into real estate after years working as a mechanical engineering technician. His own initial experiences buying investment properties were “not pretty,” he says. He claims to have found the agents he used so lacking in knowledge and ethics that he decided to go into real estate himself because “I thought I could do a better job.” The same idea came to mind regarding certain brokers he worked with over the years. He recalls one who was “anywhere but in the office” and another who considered being asked questions a major annoyance. “I was expecting more,” says Miller. “I’m not blaming anyone,

Richard Miller (Photo: Rachael Little)

simply taking responsibility for the lack of training and doing something about it.” At the time of this writing his new brokerage had a team of three – Miller, his wife Kim (who is a licensed sales rep) and one new hire. Miller’s goal, which he admits is “lofty,” is to be joined within a few years by 100 likeminded sales reps who are positive thinkers, embrace continuing education and understand the art of listening to clients. “I expect them to come down the road looking for that extra training that their brokerage won’t facilitate,” Miller says. “I will also put on job fairs for agents and I’ll invite other institutions to join me...but I fear I’ll be the only one there,” he adds, laughing. It’s Miller’s perception that often, “Brokers don’t get that when they hire someone, they have to train them in an efficient manner, so that they don’t have too many questions for the broker. An hour of training, 12 hours of training, one-week programs, training once a month, are not nearly enough to make someone a professional.”

With his brokerage, there will be continuing education for established agents, while newbies – so long as they’re up for it – will get a full year of initial theoretical and practical training, both in the classroom and in the field, five days weekly, Miller says. “I want time to get a return on that investment. So, I am looking for a contractual commitment of three years.” As an incentive, he’s offering sales reps partial reimbursement of their provincial real estate course fees. Miller stresses that the training he provides will be in-depth, with topics including: • General business skills/ knowledge (“Many agents have very little understanding of how to run a business. For example, many have had dealings with the Canada Revenue Agency due to tax issues. Managing taxes is an integral step of running a business”); • Creating an individualized marketing/advertising platform (“We’re embracing multimedia”); •Understanding the practical

aspects of property ownership/ upkeep; • Cultivating relationships with clients (“Hang on strong.”); • Guidance on wealth management and retirement; • How to lead a healthy, balanced life. (“Real estate will eat you alive and spit you out if you don’t take care of yourself.”) Miller, a firm believer in learning by example, says he intends to be out on the streets regularly with new agents helping with practical training. “This method catapults learning,” he says. “I will be available every step of the way for their first year. Every contract they write, I’ll go over. And every quarter we’ll have a group meeting and updates, which will include special speakers such as lawyers, investors, politicians, you name it.” Miller has even bigger plans and dreams for the long haul. “We’re aiming for a global training reach,” he says. “I told my wife we’ll be on stage one day telling people how we became so successful. That’s my manifestation.” REM

WELCOME

TO SUTTON. WELCOME

Burnaby - Jon Chung (National Director of Marketing), Vince Eidsness & Mary Liang (new owners).

HOME

Introducing our newest office We enjoyed growing our team so much, we decided to do it again! A warm welcome to everyone at Sutton Group Eco - World Realty in Burnaby BC, the latest members of the Sutton family.

INTERESTED IN JOINING THE MOST DYNAMIC TEAM IN CANADA? FIND OUT MORE AT SUTTON.COM/JOIN

24 REM MARCH 2018

Flood is a real concern for property valuation By Chris Chopik

omeowners, businesses and governments have a shared responsibility to create flood resiliency. The near future will include increased flood protection insurance costs, increased sewer utility charges and increased on-site water management requirements. The increased frequency and scale of flood risk has moved beyond a centrally managed sewer capacity remedy. Municipal investment in centralized flood remedies will be recouped through storm water utility fees. Property owners will be mandated or rewarded for investing in flood protection such as rain gardens, permeable paving and smart rain harvesting.

Businesses with large impermeable areas such as roofs and parking lots are already seeing increased requirements for onsite water retention. Examples include permeable paving, bio-swales, rain gardens, green roofs and integrated green infrastructure. Homeowners are seeing restrictions on hardscaping, mandatory downspout disconnection and a push for landscaping that includes storm water management. Consider this the new normal. These flood mitigation measures reduce individual property flood risk and shared community flood risk. Municipalities spend more energy dollars on water distribution and treatment than any other energy need. Toronto uses more electricity for water than it does for operating the TTC. The level of efficiency of the system matters, because our tax dollars are paying for it. The investments and best practices that municipalities are choosing need to be reliable,

measurable and effective. The close connection between insurability, flood protection and property impacts are important to the real estate industry, says Tim Syrianos, president of the Toronto Real Estate Board (TREB). “It seems like Toronto is receiving Vancouver’s weather and vice versa. These are times when changing weather systems are affecting housing. It is incumbent on TREB members to understand municipal flood protection programs such as downspout disconnection, and to be knowledgeable about floodprone areas in their market,” he says. Following significant property damage and flooding of the Bow River in Calgary, the Calgary Real Estate Board (CREB) set out to help members and homeowners use flood data within the context of property transactions. CREB worked with the municipality to integrate flood maps with the Calgary MLS to create an

understandable visual tool for members. Shane Griffin, CREB’s spokesperson for the project says, “We designed the tool to be visually usable, so listing agents can market a property with disclosure, and buyers can see relevant information such as walk score, along with flood mapping to make a buying decision.” Increasingly, municipalities will be measured by their effectiveness at managing flood (and drought) risk. Water management expert Kevin Mercer of RainGrid says the efficiency of municipalities to manage the mounting impacts on flood management infrastructure will be revealed in public and private property damage, insurability and economic recovery. “The cities that will achieve flood and drought climate resilience, as well as fiscal sustainability in the face of unrelenting climate change challenges, are going to be those that transform their water, wastewater and storm water

services into intelligent distributed infrastructure networks of real-time rain harvesting and reuse," he says. Rain is the climate change that hits the ground. Flood and drought are two sides of the same coin. Rain affects property values and insurability related to crop yields. It’s not only the cities that are concerned with hydrology. Drought is also connected to increased forest fire risk and other lifestyle inconveniences. The Fort McMurray fire is an example of the impacts of drought on real estate. The real estate industry must choose how we communicate the value, vulnerability, risk and opportunity that climate change brings to our industry. Chris Chopik works with Sage Real Estate (www.sagerealestate.ca) in Toronto, with a career focus on the nexus of sustainability and housing. He is a futurist currently working on strategic design solutions @OCADU_ SFI; the Future of Seniors Housing in Canada. REM

Representing beautiful homes in every category. Greatness is fueled by passion. At Engel & Völkers, our passion is to create an unforgettable experience that is discreetly tailored to each of our clients, wherever they are in their home journey. We invite you to drop in, browse and see what a future with Engel & Völkers might hold for you.

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

©2018 Engel & Völkers. All rights reserved. This advertisement is not an offering of a franchise, and where required by law, an offering can only be made 14 days after delivery of the applicable franchise disclosure document.

26 REM MARCH 2018

Using art to revitalize a community

Slate Asset Management acquired all four corners of a busy Toronto intersection and is now using public art to reinvigorate it one corner at a time. By Sohini Bhattacharya

t’s been said before – when it comes to location, location, location, Yonge and St. Clair passes the litmus test with flying colours. Also known as Deer Park, this mid-town hub in Toronto has evolved into a bustling urban core. Despite its soaring real estate prices, Yonge and St. Clair has been overlooked for decades, according to its inhabitants. Its traffic jammed streets, narrow over-crowded sidewalks, dreary building facades and garbage-infested planters are frustrating for area residents and professionals who feel beleaguered by the unseemly obstructions that have seeped into their public right of way, slowly but surely. “That there is prime real estate here for new businesses and retails to thrive in is unknown. There are tons of green spaces. The ravine just east of the intersection remains ignored or forgotten,” says Jessica Myers, community manager of Yonge + St. Clair. But change is around the corner. Slate Asset Management has stepped up to address the community’s demands to revitalize their neighbourhood. A real estate investment platform with more than $4.5 billion in assets under its portfolio, Slate has a vested interest in spearheading the revitalization of Yonge and St. Clair. It has acquired 10 properties in the area, including all four corners, since 2013. “If you walk into any of the neighbourhoods in the area and observe the people that live and work here, the buildings don’t really

Visitors enjoy the ravine bench.

reflect the wealth, sophistication and elegance of its residents. This revitalization project helps us reinvest and reinvigorate what this neighbourhood already has,” says Katie Fong, Slate’s director of asset management in charge of overseeing this ambitious operation. The change began incrementally in 2016 when Slate introduced an eight-storey mural on the west-facing façade of a commercial building at 1 St. Clair Ave. W. The mural was painted by internationally renowned street artist Phlegm, who rappelled outside the building to create something to represent the neighbourhood’s true feel. This was Slate’s first foray into using public art and interacting with the Yonge and St. Clair community. Undertaken in partnership with the STEPS Initiative and the City of Toronto’s StreetARToronto program, the month-long project sought the participation of local residents. “We canvassed a lot of people through the streetcar stops. We had both a physical survey that was handed out to passersby and an online survey sent to Slate’s listserv of businesses in the area,” says Anjuli Solanki, director of community programs with the STEPS Initiative. What stood out through their responses was that art was the best way to raise the cultural profile of the vicinity. “A number of people felt that the neighbourhood had seen better days and wanted some sort of revitalization to bring

more current street-life to the area,” says Solanki. This initial success has ushered in a series of public space improvements. A “ravine bench” was conceptualized by design firm Gensler, which is partnering with Slate to unearth Yonge and St. Clair’s hidden amenities. The outdoor bench draws attention to the narrow sidewalks and how they impede public engagement and activity. Research showed that TD Bank’s storefront in the east corner of the intersection was the only sidewalk “wide enough to do something meaningful to the streetscape, so it became an important area of focus,” says Gensler architect Steven Paynter. The challenges came in the face of varying ground levels between the store interiors and the sidewalk. But Gensler used this problem as an opportunity to create a unique bench that doubles up as a ramp. “We hope to be able to attract people more toward the ravine. It’s called the ‘ravine bench’ because people don’t know about the ravine. We’re trying to build these connections in their minds,” says Paynter. Work is now underway to remove confusing mazes inside the St. Clair Centre and the flags that inhibited the interior skylight. Completion of Phase 2 will reopen the skylight and reconnect it to the retail spaces inside. Slate kicked off 2018 by sponsoring the Toronto Design Off Site (TO DO) Festival at the Yonge and St Clair intersection in celebration of the city’s design week. As part of the festival’s 100+ exhibits, the company unveiled three public art installations by architecture and design firms Gensler, IBI Group and Superkül. Of these, “The Space Between” is an art installation in the foyer of an office building at 55 St. Clair W. Conceptualized by the IBI Group, it is an interplay of 6,000 metres of coloured yarn and light in layers of horizontal and vertical patterns. The exhibit, created

The mural created by street artist Phlegm.

The #ohdeer installation at 2 St. Clair W.

through a combination of digital and analogue components, shows how people move through space in a city where winters are long and cold. But perhaps the most eyepopping installation was that of “#ohdeer”, at 2 St. Clair W., in the north-west corner of the intersection. #ohdeer is an indoor structure created to remind visitors that it’s called Deer Park for a good reason – it pays homage to the deer that roamed here. “We wanted people to walk into the building and see #ohdeer, smile and say, ‘Okay, this isn’t

someone trying to impose a serious piece of art in an office lobby saying how grand and important they are.’ This is a fun and frivolous piece of art – it’s pink and papery and is a real giant deer piñata. When people come into work on Monday at 9 a.m., the first reaction will be, ‘What the hell happened’? It’s supposed to be a whimsical piece,” says Paynter. Slate’s revitalization of Yonge and St. Clair has already attracted high-end restaurants such as Buca, Greenhouse Juice and Mary Be Kitchen to the area. They are expected to set up shop soon. REM

2018 ELECTION Have your say in choosing RECOâ&#x20AC;&#x2122;s Directors.

BE A VOTER! RECO's Board of Directors election runs from March 12-26. Check your email for your link to vote!

#2018RECOelection

28 REM MARCH 2018

8 ways real estate teams fail T By Ramona Ursu

he commercial real estate industry has long realized that teams are the only way to offer clients a competitive level of service. No one broker can do it all alone anymore – if they ever could. Brokers are now working across huge geographies, stretching their ability to be physically present in every area they have a mandate. At the same time “the world is shrinking” and many clients are expanding their footprint and demanding their brokerage stretch their scope. In the realm of technology, software is becoming increasingly sophisticated, with for example the entry of CoStar to Canada – making reporting easier, but also more expected. With the rise of these competitive forces the need to bring team members together with diverse skills to facilitate client service has never been clearer. There are endless books on how to build successful teams, and even some focused on how to build brokerage teams. But few focus on why most team leaders fail at

building them. My personal experience in corporate real estate and brokerage, along with countless stories from my colleagues and mentors, have led me to conclude that it’s much, much easier to fail at building a team than it is to succeed with one. Here are some ways I’ve seen teams fail: • Hiring on skill set alone, not caring about the candidate’s aspirations. Strong real estate teams need both go-getters and non-gogetters. If your non-go-getter team admin wants to work 7 to 4, but you need that person at the office until 6:30, do not hire them just because of their skill set. I’ve seen too many team leaders try to change people, ignoring the fact that they don’t want to or are not willing/ready to change. • Hiring people with the same skill set. For example, if your team is built on aggressive go-getters with little attention to detail, somewhere along the line you are bound to have an unhappy client. • Relying too heavily on salaried

team members. This doesn’t happen often outside the corporate world, but when it does it is completely unsustainable, because the biggest allure of real estate is having an unlimited income. • No team lead. This can occur either when assembling a team and giving off the impression that every decision is a democratic vote or in cases where the team lead becomes passive. There should be one person who has the ultimate vote, and everyone should be voluntarily on board with executing on direction. • Not having defined roles within the team – is your “team” just a bunch of brokers, each working his or her own deal and sharing the commission at the end? Sooner or later someone will put their hand up and say, “But I was the only one who worked on this” and the model will fail. • Constantly leaving your team with the impression that they could do more. If your daily message is that people haven’t pulled their weight, aren’t working hard enough or aren’t working as hard as you

(the team lead), the atmosphere becomes a ticking time bomb. Praise is a necessity for human condition and constant praise (not constant complains) leads to better performance. • Assuming team dynamics run by inertia. They do not. Not paying attention to the pulse, not having “check-systems” in place, an opendoor policy and an ability to change when people demand change, will lead to destructive team turn-over. • Ugly, outdated physical environment – there is a reason big shops spend millions on office space that’s new, fresh and attractive – and it’s not just for when clients visit.

Employee attraction and retention is key to brokerage continuity. One brokerage firm we considered joining this year had a filtration air system that pumped more oxygen in their space, keeping folks fresh, alert and headache-free. My current office has Advil for “office use”, fresh fruit, at least 10 different types of coffee and filtered water. These “small” things matter. Ramona Ursu and her team (Sean Tait, left and Mikael Kurkdjian) work together at Lennard Commercial to service the owners and developers of multifamily assets in Ontario and Quebec. Email ramona@lennard.com. REM

Surviving friendly fire in the office 5 tips for dodging bullets when dealing with internal employees

By Jeff Mowatt

ithin virtually every organization, employees from different departments will have to interact with one another without having direct authority over them. That can easily create conflicts and bruised egos. That’s why when I coach teams on how to enhance internal customer satisfaction, I remind them that it’s not just what they communicate to other departments, but how they do so. To ensure you and your team are seen less as interruptions, and more as value adding assets, keep in mind these five tips. 1. Talk in person. Too often we initiate communications

to other departments in writing when we should opt for face-toface conversations. When you have a new request or procedure that requires explaining, begin by talking in person to that department’s key influencers. Ask for their advice – literally. That word lowers their defenses and helps generate buyin. Ask who else you should be talking to on their team – including any naysayers. Finally, when you decide upon the most likely to be accepted course of action, send a short written summary; more as a confirmation than as a proposal or directive. 2. Be a straight talker. Write the way you speak. Your communiques to coworkers should sound like a conversation; not a press release, essay or legal document. Occasionally, sprinkle in some self-effacing humour. That makes you sound more like a real person and less like a bureaucrat.

3. Make your communications RACI: An engineer client of mine explained that on every construction project, team members from all departments agree upfront how the communications will be handled using the acronym RACI. The only people who will be copied on emails about the project will be: R - the one person who is Responsible for overseeing the project, A - the senior person who will be held Accountable for the project, C- people outside the project who may be Consulted for input, and finally, I - anyone who should be Informed throughout the project. By clarifying how communications will be handled in advance, you reduce confusion and prevent others from becoming annoyed when you copy them (or don’t copy them) on a message. 4. Nix the self-promoting. Any announcement that remotely sounds like patting yourself on the

back is going to be met with scorn and derision; the exact opposite of what you’re trying to achieve. Instead, take the generous approach when announcing a success and go to lengths to recognize others who helped make it happen. Ironically, the more you heap praise on others while leaving yourself in the background, the more likely you are to be appreciated and respected for your generosity and humility. 5. Forget becoming a BFF. It’s sad and slightly pathetic how some employees try too hard to fit in with co-workers in other departments. A boomer-aged accountant in a suit will have a hard time being seen as “just one of the guys” with young millennials clad in coveralls out in the field. Nor should he try. He’d be better off viewing his role as the field department’s trusted advisor from accounting. He should be quick to express admiration about the amazing things that operations

folks are doing in the proverbial trenches. His colleagues in the field will appreciate that he respects them while he’s also comfortable in his own skin. In fact, they may even become protective of him, especially when he arrives on site to talk to them in person. Sure, he’s an accountant; but darn it, he’s our accountant. Bottom line: Providing support and advice to internal employees requires not just competence, but also some street-smart communication skills. The good news is with just a bit of training, co-workers can avoid preventable battles and instead become valued as trusted advisors. This article is based on the bestselling book Influence with Ease by customer service strategist and Hall of Fame motivational speaker Jeff Mowatt. To obtain your own copy of his book or to inquire about engaging Jeff for your team, visit www.jeffmowatt.com. REM

CELEBRATING OUR CANADIAN AMBASSADORS! Coldwell Banker Canada congratulates our 2017 Canadian Ambassador, Bob Buttar and salutes past winners.

We’re proud to recognize these extraordinary professionals who proactively represent Coldwell Banker brand ®

values within our industry and their local communities. Selected from our Canadian network of over 200 ofﬁces from coast to coast, these Ambassadors exemplify the best attributes of the Coldwell Banker brand in Canada.

BOB BUTTAR

TRACEY APPLETON

BETH CROSBIE

GARY AUGUST

MARY BALES

Coldwell Banker Haida Realty Leduc, AB

Coldwell Banker Peter Benninger Realty Kitchener-Waterloo, ON

Coldwell Banker ProCo St. John’s, NL

Coldwell Banker Horizon Realty Kelowna, BC

Coldwell Banker Peter Benninger Realty Kitchener-Waterloo, ON

2017

2016

2013 & 2011

SHERRY BELCOURT-DARBY & TOM DARBY

* Posthumous winner

Coldwell Banker Panda Real Estate Edmonton, AB

TINA MAK Coldwell Banker Westburn Realty Burnaby, BC

2012

2015

2014

2014* & 2009

PETER BENNINGER

LEN KING

OZIE CONNER

Coldwell Banker Peter Benninger Realty Kitchener-Waterloo, ON

Coldwell Banker ProCo St. John’s, NL

Coldwell Banker Community Professionals Hamilton, ON

2010

2009

To learn more about Coldwell Banker recognition programs or our business solutions, contact your local Coldwell Banker afﬁliate broker or visit our Canadian website at coldwellbanker.ca

2008

THE POWER OF BLUE

© 2018 Coldwell Banker LLC. All rights reserved. Each ofﬁce is independently owned and operated. Coldwell Banker and the Coldwell Banker logo are registered service marks owned by Coldwell Banker LLC. Each sales representative and broker is responsible for complying with any consumer disclosure laws or regulations, as well as applicable Real Estate Association rules and codes of conduct. Not intended to solicit brokers under contract.

30 REM MARCH 2018

DR. LANDLORD

The misunderstood cap (capitalization) rate “Landlording” author and instructor Chris Seepe is teaming with REM to publish a series of articles covering a broad spectrum of residential rental landlording topics that may not be common knowledge to the average landlord.

By Christopher Seepe

ap rate (CR) is arguably the most often quoted metric for expressing property value. Yet, it tells only half the story. Why is there such emphasis on CR? Because it allows you to financially compare two widely differing rental properties. A poorly managed nine-plex could be less profitable than a wellmanaged six-plex. CR expresses the relationship between a property’s current year’s net income and the property’s value. It helps but doesn’t completely determine the value of an investment

property and its potential return on and of an investment. CR is calculated by subtracting all operational expenses (excluding financing and capital expenses), plus vacancy and bad debt from the property’s total income and dividing the result – called net operating income (NOI) – by the current value or sale price of a property. It’s expressed as a percentage. There’s a mathematical inverse relationship between property value and CR: the higher the CR, the lower the property value and vice versa. Buyers want a high CR. Sellers want to offer a low CR. The buyer’s higher rate of return is reflected by the seller’s lower sale price. Listings may cite CR but

often exclude or include expenses that a lender doesn’t care about or that are not actually an operating expense. The most common “missing” expenses are repairs and maintenance, property management and vacancy and bad debt. Excluding these expenses make a CR look much better than it is. Because of that, lenders add in missing expense approximations, which then drive property value down. This in turn reduces the mortgage amount and the deal “fails because of financing”. For example, a property generates $100,000 in annual gross income. The listing states total operating costs are $35,000, generating $65,000 NOI. Divide NOI by five per

Good luck Mila!

amilla Purcell, REM’s do-all-and-everything-inbetween person, is leaving to pursue new horizons. We’ll miss her happy attitude, her infectious, pleasant nature and most of all, her hard work to get things done. Few invoice details or inaccurate addresses or typos could get past the tenacious detailed review of Mila. Mila’s exposure to the newspaper and media industry started early, sitting in the back of a newspaper delivery vehicle with her grandfather, the great Jack Maycock. He was the man who pioneered the first operation of newspaper boxes for The Toronto Daily Star. Look on any street corner in practically any city in Canada and you will see newspaper boxes. You can thank or grumble about Mila’s grandpa. It is no wonder newspaper operation is in Mila’s DNA.

Mila’s career includes a spin as a radio DJ in Guelph, Ont. where she was able to share her great love of vintage music. It embraces wonderful blues classics like the St. James Infirmary Blues, one of many recordings that is meticulously cared for in her collection of old 78 records. She also has some fabulous dance music that she will happily share with friends and family or if she is presiding over a dance floor during an evening of DJ duties. Mila’s love of music and her attention to detail combined one winter when she spent an entire weekend ensuring that music continued to play to listeners when all other staff left the studio for Christmas. Her dedication to her job and her music was inspirational and legendary. Whatever Mila decides to do next, she will bring a wealth of knowledge that goes beyond

media. That knowledge includes some years working as a legal assistant and time as a clerk in the financial management field. Mila has played guitar in a pickup band and she even had small movie parts in films done by her wide array of friends. Mila has also worked in her family’s restaurant business, once again doing any job required. At REM, we benefitted enormously from Mila’s hard work and dedication. We remain friends and wish her well in her future. Wherever you go next Mila, whether it’s Guelph or New York City or Paris, enjoy. Whatever you do and whoever you work for, we’ll be envious of them but first and foremost, we wish you every success and happiness. REM – Heino Molls, REM publisher

cent CR = $1,300,000 baseline property value. You expect to receive 75 per cent of the value as a mortgage, called loan-tovalue (LTV) = $975,000. However, the listing didn’t include vacancy/bad debt (typically two to four per cent), repairs/maintenance (typically $750 to $800/unit) and property management (average five per cent). The property’s expenses are actually $45,000, generating $55,000 NOI, divided by five per cent CR = $1,100,000. Therefore, the lender’s $10,000 in added expenses reduced the property’s value by $200,000. Seventy-five per cent LTV = $825,000 mortgage, which is $150,000 less than you expected. Unless you can come up with that difference, the deal fails. CR can provide solid insights into a property’s financial performance, but because CR is based on NOI, it doesn’t factor in financing and closing costs so it won’t tell you how much profit (cash flow) you’ll make. It doesn’t consider a property’s state of repair, so you may have to invest extra money into major capital expenses such as windows or a boiler. It doesn’t project appreciation or geographic growth potential or consider local crime rate and types; tenant demographics; the quality, construction, size and age of a property; or the property’s proximity to amenities. CR doesn’t forecast increases in operating and financing costs, possible rightof-way issues or environmental concerns. When a buyer declares in a “5.0 cap” market that they will only look at properties with a 6.0 cap, they’re saying they want a property with a high NOI at a deeply discounted purchase price. Well, shucks and golly

gee, don’t we all want that? Such buyers are looking for bargain-basement investment properties they’re unlikely to find and they’ll never make a purchase. A property’s market value generally assumes it’s in a good state of repair, the land is employed for its “highest and best use,” and its rental revenue reflects all the local positive and negative market influences. The market assumption is that the buyer won’t have to lay out any immediate cash for capital costs. No seller should expect to receive market value for their property if any of the above isn’t true. To expect otherwise, the seller is saying they want you to pay for the property’s future potential even though the seller did nothing to deserve a share in that future potential. If a seller wants to benefit from that potential, they should invest the time and money to first realize that potential and then sell their property. A seller might purposely offer a higher CR if the property is “stigmatized” and requires a buyer who doesn’t care about the stigmatism, or it may be “distressed”, requiring a notable influx of cash to fix the problem. The next article in this series will discuss how the marketplace and individual buyers and sellers determine what the CR should be. Chris Seepe is a published writer and author, “landlording” course instructor, president of the Landlords Association of Durham, and a commercial real estate broker of record at Aztech Realty in Toronto, specializing in income-generating and multi-residential investment properties. (416) 525-1558 Email cseepe@aztechrealty.com; website: www.drlandlord.ca REM

ANOTHER FRANCHISE SOLD! Welcome Meredith Kennedy to the EXIT Family.

32 REM MARCH 2018

In praise of small homes

Author Lloyd Kahn has lived in quite a few small (and unconventional) abodes over the years, including a geodesic dome and a chicken coop. By Diane Slawych

nlike most people, Lloyd Kahn has gone through life without ever having to pay rent or a mortgage. Okay, there was one small exception when he was 23, when he and his wife bought a home for $15,000 and had a mortgage for three years. But then they sold the property and ever since, he’s managed to avoid paying the typical housing costs that most other people incur. How did he do it? “I always lived in a house I built,” the Californiabased author told REM after a slide show at the Parkdale Public Library in Toronto last spring to promote his latest book, Small Homes: The Right Size. Kahn maintains the typical North American home is too big. In the U.S., the average new single-family house in 2015 was 2,467 square feet, or 1,000 square feet larger than in 1973.

He believes a small home, which he defines as 400 to 1,200 square feet, has many advantages and is the way to go. “They are more efficient to heat and cool, cheaper to maintain, use less resources and less expensive to run overall,” he says. Kahn has lived in quite a few small (and unconventional) abodes over the years, including a geodesic dome and a chicken coop. He built his first home in the 1960s around the same time he was the shelter editor for the Whole Earth Catalog – a popular American counterculture magazine with a focus on self-sufficiency and do-it-yourself projects. His latest book features 68 fascinating small homes. Most are in North America, though there are plenty of examples from around the globe. They range from plain and low-

cost homes (one was made for $35,000) to inspiring examples of design and craftsmanship. There’s a straw bale home in Arizona, a stone home in southern Spain, a tin shed in Colorado, a twostorey treehouse near Seattle and a homestead of recycled materials in Quebec, whose owners believe in building with “as much free stuff as possible.” Many of the featured houses are designed and built from scratch by the owners. Some are in the country, others in small towns and some in large cities. The only unifying factor is the floor area. The book is crammed with the stories of interesting people such as a teenager in France who spent three years constructing a cabin in the woods using industrial window seconds and chestnut wood from the forest. He took his inspiration from a 16th-century architect, Philibert de l’Orme, who was apparently the first person to write a book on self-building. The variety of homes covers the gamut. There’s a solar-powered Quonset hut in California, a cordwood home in New York, an octagonal cedar home in the Pacific Northwest, a cave home in New Zealand, an earthbag home in Turkey and a converted garage in Kentucky. Kahn believes there are a lot of options in cities with a housing shortage. “You could find a small house that needs work and fix it up, or two families could buy one house and turn it into a duplex.” Another option, he says, is to build a small structure in your backyard – ideal housing for an elderly parent or out-of-work adult child. “Some cities have ordinances that allow you to do that because you already have water, sewer and power, so those are three things you can do in cities.” His current home in Northern California started out as a tiny home with a bedroom that measured just six-feet long by sixfeet wide. Now, he says the home has expanded to over 1,400 sq. ft. “But I’ve been here 47 years. With a small home you add on to it.”

Author Lloyd Kahn spoke in Toronto this spring on the merits of small homes. (Photo: Diane Slawych)

An example of a small home in Santa Cruz, Calif. built in 1861. (Photo: Lloyd Kahn).

Packed with inspiring colour photos, Small Homes is the seventh in a series of books on the topic of shelter. Others include Home Work: Handbuilt Shelter; Tiny Homes: Simple Shelter; Tiny Homes on the Move: Wheels and Water; and the first book in the series, called Shelter. “A surprisingly large group of people are motivated by these books to build their own homes,” says Kahn. “They send us photos

and stories, which then appear in the next book.” For example, eight of the homes and their owners featured in Small Homes: the Right Size were inspired by previous Shelter books. During a Q&A after Kahn’s library presentation, one man expressed interest in the idea, but said he knew nothing about building. What could he do? “You learn as you go,” said Kahn, “and you ask for help.” REM

NEVER Make a Cold Call Again. NO MORE Chasing FSBO’s, Expired Listings or Begging for Referrals.

Canadian Real Estate Agent reveals her secret weapon to making more while working less Real success in any business means not only healthy earnings, but also time off to enjoy life. The fact is, however, that most Canadian real estate agents sacrifice their entire lifestyle in pursuit of success and, ironically, instead of gaining more freedom, they become slaves to their real estate business. If you don’t have a real business system, you don’t really have a business at all. What you have instead is a “job”, and for many, it’s a really bad job: one that consumes your time, keeps you away from friends and family, and doesn’t pay enough. Even though you work so hard, it’s just so random. Some days you win. Some days you lose. The fact is that agents leave our industry in droves, not because they’re not great at working with clients, but rather because they don’t have enough clients to work with. They don’t have enough leads, they don’t find enough time to properly follow up and thus convert their leads, they don’t know exactly why they win or lose a listing. Even though they work very hard, too much is left to chance. Trying to “do it all” without a clear understanding of what works and what doesn’t ultimately sows the seeds of failure for many. A profitable and “real” business MUST be based on solid systems. In real estate, that means a system to generate leads, a system to convert those leads, and a system to convert qualified prospects into paying clients. Every successful business in the world, from McDonalds to Amazon to FedEx, is based on proven and duplicatable “systems”, and the agents

who achieve mega success in our industry have done so on the strength of solid, proven, efficient business systems. As revealed in the profile of Toronto, Ontario agent Lisa Nash on this page, and of multiple other agents you can read about at www.FreeAgentSecrets.com, creating a highly profitable real estate business is certainly possible, regardless of whether you’re a brand new agent or have been in real estate for years, whether you’re a man or a woman, a solo agent or team, whether you live in the U.S. or Canada, and

regardless of which franchise you’re with. Each of the agents profiled credits the same real estate system as being responsible for their success: The Ultimate Real Estate Success System pioneered by Canadian Real Estate Coach Craig Proctor. Not only is Craig Proctor’s real estate system responsible for more Millionaire Agents than any other coach or trainer, but Proctor was a highly successful AGENT himself for more than 20 years right here in Canada. As you may know, he was twice named the #1 RE/MAX agent in the world and was in the top

10 for RE/MAX International for 15 years. In fact, for 6 years straight, no one listed or sold more homes in the Greater Toronto Area than Proctor did. (Source: TREB Statistics). No one in Canada has sold more homes than Proctor has, and by sharing the system he used to achieve his own success, he’s been able to help over 30,000 agents worldwide to transform their real estate jobs into highly lucrative real estate businesses that don’t come at the expense of high lifestyle costs. If you do not have a clear, detailed business system (key

word, system) that you are using to move methodically to your goals…a plan you could show a banker or investor or new partner or key associate…a plan you have reasoned, complete confidence in, then why wouldn’t you examine Proctor’s Ultimate Real Estate Success System – for free? For a limited time, you can have a “sneak peek” at what your real estate business could look like by attending Proctor’s upcoming Free Discovery Day (visit www.FreeAgentSecrets.com for details). Yes, Craig Proctor will openly share with you how he became Canada’s top agent. Learn from a real doer, not a talker. Craig will share “real Canadian real estate strategies” with you that actually work. No theory, ideas or motivational hype. At this 3 hour meeting Craig Proctor will spill the beans and share with you exactly what to do and what it takes to be a Super-Successful Real Estate agent in Canada. For more information, visit: www.FreeAgentSecrets.com

Read More About Successful Canadian Agents Like Lisa at www.FreeAgentSecrets.com

Lisa Nash & Steve Walker

Royal LePage Terrequity Realty

by Lisa Nash, Toronto, ON

“I had been working with my partner, Steve Walker, for about five years. We had been doing fairly well but had definitely hit a stagnant point in our business. Sure we did some deals, but we were never certain if we

would get more business. I was always in a course of some kind, had a real estate coach, learned several scripts, and spent many cold and snowy days door knocking. “We were doing a fair amount of business already, but not enough to give us the confidence and peace of mind that our business could survive no matter what. We had NO systems in place and certainly no plan. “In August 2015, I attended my first Craig Proctor seminar. I was hooked as soon as he told us the best thing we could do is get rid of the mindset that we were simply real estate agents and instead begin to think about our role as smart marketers. Prior to real estate, I had been in Advertising Sales and Marketing,

so what he was saying made total sense to me. “Like no other real estate seminar I had been to before, Craig’s approach was to run

business would look like if I hadn’t gotten into the Craig Proctor Coaching program, especially now that we are in this challenging Toronto market.

“With this sound, proven, proactive system, and the unbelievable wealth of resources we have access to, we will be able to weather the storm of this market .” your real estate business like any other business. You need to be smart with your marketing and create systems in place so that your business can run without you. “I can’t imagine what our

With Craig’s sound, proven, proactive system, all of his helpful and knowledgeable coaches, and the unbelievable wealth of resources we have access to, we will be able to weather the storm of this market thanks to Craig.

MILLIONAIRE AGENT-MAKER DISCOVERY DAY: Responsible for the Biggest Success Stories in the Industry

Full City Schedule at:

www.FreeAgentSecrets.com

34 REM MARCH 2018

utton Group - Heritage Realty in Ajax, Ont. celebrated its 25th year in business in the Durham and York regions by raising $25,000 for multiple charities. The brokerage provided funding, food and hope for local students, abused women, abandoned pets, low-income families and more. The firm’s golf tournament supported local food banks, while the Mother’s Day at the Races event raised funds for the Ontario Shores Centre for Mental Health. A Celebrity Bartender Night benefited the Durham Humane Society, the Spring Fashion Show supported The Denise House and Yellow Brick House shelters, and the 25th Anniversary Gala and Charity Casino provided funding to the Durham Children’s Aid Foundation Bursary Program. Leading up to Christmas, Royal LePage Solutions in Calgary organized a “reverse Advent calendar” of food for the Calgary Food Bank for brokerage staff and clients. “Every day you put in a food item into a basket, then I collected and delivered it on behalf of all the clients that donated. We collected over 500

lbs. of food plus cash,” says sales rep Chris Matlashewski. The food bank saw an eightper-cent increase in client visits this year, representing more than 184,078 people. Recently Kevin Gale and Herb Pliwischkies of Re/Max Quinte in Picton, Ont. were honoured as the outstanding corporation/ organization with 99 or fewer employees at the From the Heart Philanthropy Day Awards in Kingston, Ont. Their brokerage is owned by Sean McKinney. Gale and Pliwischkies organized a golf tournament, Teeing Up for Healthcare for the Prince Edward Memorial Hospital Foundation, for the past three years and are almost sold out for the 2018 tournament. They raised more than $80,000 during the last three events. Pliwischkies says they expect to net $40,000 this year. The brokerage has raised more than $220,000 in total. Sales reps contribute a portion of their commissions on each transaction. Last year Sandy Casella, a sales associate with Sutton Group - Quantum Realty in

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Mississauga, Ont. and her team donated $12,000 to the Centre for Addiction and Mental Health (CAMH), the largest hospital in Toronto conducting research into mental health. Recently she donated $2,000 to Hats On For Awareness, an umbrella group that distributes money to numerous mental health initiatives and charities. Her goal is to raise another $13,000 for Hats On For Awareness by the end of 2020. As a member of the Craig Proctor system and a real estate coach, Casella also participated in an auction that raised money for the daughter of a Torontoarea Realtor. The little girl has a rare illness requiring specialized care. Casella donated $23,000 to win a day of training with Todd Walters, a well-know American trainer. Collectively, the auction raised $221,000 to help the girl and her family as they fight to save her life. A group from Re/Max Elite in Edmonton recently won praise from a manager at the Boyle Street Community Centre for their “energy and camaraderie” while cooking and serving meals at the centre. “In my six-plus years working at BSCS, I have rarely witnessed a group as highly engaged as Re/ Max Elite,” says Boyle Street development manager Brent Guidinger. “They had team members cooking lunch, with some outside in the cold serving coffee and others handing out brand new articles of winter clothing, and everyone treating our clients with a level of respect that truly went above and beyond.” The group also donated $11,807 to the centre. Wayne Hanlon of Hanlon Realty in St. John’s N.L. recently bought a bus and wrapped the vehicle in his company logo. He then gave it to his agents to use at local events. The bus was used for a food drive for Emmanus House, a local food bank operated by five parishes. Shane Bruce, COO of

Hanlon Realty, worked with a local radio station to publicize the fundraiser. Many residents and community groups, such as a Girl Guide division called Jelly Bean Row, helped fill the bus with food. The brokerage raised $6,052. in food and cash. Real Estate Centre in Coaldale, Alta. recently held its fifth annual charity event, this year in support of STARS Air Ambulance, with a percentage also going to HALO Rescue. The event raised $30,299 for the cause. It also played host to local producers, who had an opportunity to showcase their products to all who attended. Guests were treated to some tasty samples and a pig roast, followed by a live auction managed by auctioneer Ryan Konynenbelt. Karen Newman, marketing director at Royal LePage Atlantic Homestead in St. John’s, was instrumental in setting up a hair salon at a local women’s shelter. “We were talking about

how women often come (to the shelter) feeling quite down,” Iris Kirby House executive director Michelle Greene told The Telegram. “And how wonderful it is when you get your hair cut and how you feel better – you walk out feeling great. Karen had the idea that we could do that for the women on a very small scale.” Newman told The Telegram that the conversation came up when she was talking about the fact that her daughter is a hairdresser. “And it just sort of took off from there,” she says. “I was going to get some donations and put together a nice basket for the residents here – some beauty supplies – and it sort of snowballed into this salon room, which we call The Beauty Room.” The salon is open on Sundays. Two volunteer stylists offer their services for free. Newman was recently honoured as a Royal LePage East Coast Individual of the Year by the Royal LePage Shelter Foundation. REM

See photos next page

Sutton Group - Heritage broker of record Rosalind Menary and her husband Ron with Jordyn Schisler, the 2017 recipient of the Sutton Heritage Scholarship. Schisler received $2,000 and three others received $1,000 each.

The Real Estate Centre’s fifth annual charity event raised more than $30,000.

REM MARCH 2018 35

Today’s clients demand transparency By Natalka Falcomer

he scenario: your client is selling a property. You’ve done your due diligence and you’ve pored over all kinds of research to make sure you have the right listing price. You don’t list the property on MLS because you already have a few potential buyers lined up. What is more, you tell your client that you can cut her a “deal” on commissions if you find an unrepresented buyer. Within two weeks, you find a buyer through word of mouth and start negotiating. You give away nothing as far as details about the property or the reason your client must sell. The deal closes, and you get a nice hard-earned cheque in your pocket…and then the real estate regulator comes knocking because your client claims that you violated the law. Why is your client and the

regulator claiming your broke the law? Most regulator complaints are rooted in the fact that the Realtor’s client believes the agent acted either unethically or unprofessionally. Clients holding this belief typically claim that the agent wasn’t transparent about how she collected fees, found buyers or marketed the property. In other words, the Realtor failed to act in the client’s best interests and didn’t fulfill her fiduciary duties. “So what?” you may say. “A complaint can go away and the fine can be small in comparison to the commission cheque!” Think again. News about a complaint is likely to spread wide and far, not to mention that the hard-earned client will not be sending you any referrals. And the standard for “conviction” at the regulator isn’t as high as a criminal case. The proof only must show that on a balance of probabilities you committed “the crime”. This is a much easier threshold to meet than the criminal evidentiary threshold of “beyond a reasonable doubt”. A complaint “disappearing”

also doesn’t automatically mean that you won’t get sued. In fact, we’re seeing a steady rise in the willingness of clients to file complaints against agents for unprofessional behaviour. And worse, get a litigator involved. This means that the industry’s unofficial “way of doing things” – such as withholding listing information and not collaborating with agents – is becoming less acceptable. If a threat of lawsuit doesn’t compel you to be more transparent, then understand that you’ll lose clients. Today’s clients – especially millennials – are becoming more sophisticated and they’re demanding more transparency, collaboration and advisory support, not “sales” tactics or an agent who has an Instagram following. Today’s client, essentially, wants a fiduciary. Fortunately, this demand is completely in line with the law. A “fiduciary relationship” is a common law concept that creates another layer of protections for your client and another list of prohibitions against what you can and cannot do. This fiduciary duty, which includes the “duty

of loyalty”, is the most onerous because of its broad scope: you can never put yourself in a situation where you’re even slightly tempted to do something that is not in the best interests of your client. Your fiduciary duties stand separate from and in addition to all your responsibilities under the Real Estate and Business Brokers Act, 2002, its Code of Ethics, CREA’s Code of Ethics and the CREA Standards of Business Practises. Your job is to get your clients the best “bang for buck”. This means that you may be violating the law by not working with co-operating brokerages, withholding listing information and not sharing commission. To attract clients, don’t waste your time on Facebook posts and Instagram pictures. Rather, attract clients and avoid both litigation and a regulator complaint by disclosing all forms of information and co-operating with other Realtors. In fact, being the “trusted advisor” today’s client is looking for is consistent with Canadian case law: agents are to “always act in your client’s best interests and (to)

make full disclosure of everything you know respecting the sale of the property that would likely influence your client’s conduct.” (Ocean City Realty v A &M Holdings Ltd, [1987] BCJ No 593, 36 DLR (4th) 94 BCCA). If the law isn’t enough of a reason to rethink how you practice real estate sales, there’s another benefit: disclosing and co-operating helps repair the very damaged reputation of agents among the public. Embracing our role as fiduciaries shows that we’re more than salespeople; we offer value as skilled advisors who help our clients navigate the complexities and nuances of a deal. Natalka Falcomer is a lawyer, real estate sales agent and Certified Leasing Officer who has a passion to make the law accessible and affordable. She founded, hosts and coproduces a popular legal call-in show on Rogers TV, Toronto Speaks Legal Advice. She founded Groundworks, the only firm specializing in commercial real estate law that offers flat fee rates, online delivery of legal work and a guaranteed turnaround time. www.groundworksfirm.com REM

Sales reps from Re/Max Elite in Edmonton hand out coffee at the Boyle Street Community Centre. Sandy Casella Chris Matlashewski delivered more than 500 lbs. of food to the Calgary Food Bank.

The Hanlon Realty bus helped raise more than $6,000 in food and cash for a food bank.

Karen Newman, centre in red, with some of the sponsors of the new salon at the shelter.

36 REM MARCH 2018

he Parry Sound & Area Association of Realtors has joined The Lakelands Association of Realtors in Muskoka, Ont. The Lakelands association now has more than 770 members. The association says talks about the merger began last fall after Parry Sound EO Meg Cameron-Hammel announced her early retirement. “Both associations had a common goal to minimize disruption to our Realtor members before, during and after the transition,” says Mike Stahls, president of The Lakelands. “It was sad to see Meg go after almost 30 years,

but her dedication and passion will be fondly remembered by all. We are confident our new members will enjoy the suite of tools, services and professional development opportunities that The Lakelands has to offer.” The association has rebranded itself with a new logo. “We wanted to simplify our logo and rebrand under a clean updated look,” says Stahls. The Lakelands includes Realtors in the regions of the District of Parry Sound, the District Municipality of Muskoka, Haliburton County and Northern Simcoe County including the City of Orillia.

Pictured: Jackie Peifer Jackie will be operating out of RE/MAX Aboutowne Realty Corp., located at 1235 North Service Rd W. Suite 100, Oakville.

As a teenager, Shirley Przybyl would show the houses her dad built, so real estate was a natural career path for her. This year, she celebrates 25 years as a real estate professional and she has been named president of the Manitoba Real Estate Association. Przybyl has been a broker and is currently a manager at Century 21 Bachman & Associates in Winnipeg. She was elected the MREA education chair in 2015 and continues to be an instructor for the real estate licensing education program. With pending revisions to the Real Estate Services Act in the province, Przybyl says she is committed to ensuring MREA plays an integral role in equipping Realtors with the knowledge needed to understand the changes and corresponding regulations. The other MREA volunteer officers and directors are: David Powell, Powell Property Group,

president elect; Glen Tosh, Royal LePage Martin-Liberty Realty, treasurer; Chris Pennycook, Royal LePage Dynamic Real Estate, immediate past president; Stewart Elston, ACT Realty, director at large; Brad Walker, Gill & Schmall Agencies, director at large (individual member); Michael Barrett, Century 21 Westman.com, CREA regional director; Lorne Weiss, Century 21 Bachman & Associates, Manitoba PAC chair; Chris Dudeck, Coldwell Banker Preferred Real Estate, WinnipegRealtors president; Ken Clark, ACT Realty, WinnipegRealtors president elect; Don Mitchell, Century 21 Westman.com, Brandon Area Realtors president; and Warren Neufeld, Royal LePage Portage Realty, Portage la Prairie Real Estate Board president. Jeff Nethercott will serve as president of The London and St. Thomas Association of Realtors (LSTAR) in 2018.

Shirley Przybyl

Chris Dudeck

Nethercott is the broker of record/owner of Royal LePage Triland Community Realty. He has been a Realtor with LSTAR since 2007. “Last year was an unprecedented year for real estate across the region,” he says. “There are many initiatives in the pipeline at LSTAR as we focus on strengthening our business and community partnerships to enhance the services we provide to the consumers and communities in London and St. Thomas.” Nethercott took a lead role as a member of the inaugural Board of Governors for the Ontario Collective, a group of 13 real estate boards and associations across Ontario focused on delivering data, tools and technology to support over 5,000 Realtors, including LSTAR members. The association was part of the collective’s first phase launch of an enhanced regional MLS system in October 2017.

Jeff Nethercott

Welcome to RE/MAX, Jackie! Please join us in welcoming Jackie Peifer to RE/MAX Aboutowne Realty Corp.! Jackie has been a licensed, full-time salesperson for nearly three decades. She started her career as a motivated and determined team of one, and quickly grew into a highly successful team of many in 2004.

Claudia DiPaola (Owner, RE/MAX Aboutowne Realty Corp.) for nearly two decades. She respects Claudia’s professionalism, determination, and her drive to see all her agents succeed. Claudia knows the importance of leading a team of happy and successful realtors!

Jackie has ranked in the top 1% nationally with Royal LePage for the last 10 years. She is a multiaward winner, including: #1 team, Chairman’s Award, and Lifetime Award of Excellence.

Jackie and her team bring a combined 50-plus years of real estate experience. They have a proven track record of success year after year, and consistently exceed client expectations. Their mission statement is “Teamwork from the TEAM that WORKS!” and based on our insights, we know this to be true!

Jackie was first inclined to join RE/MAX after a recent trip solidified her belief that RE/MAX is truly the most recognized real estate brand. During her travels, everyone identified RE/MAX as the gold standard in real estate. The global opportunities for growth are unlimited! Further, Jackie has known If you are interested in ownership opportunities with RE/MAX, the largest most productive real estate brand, contact Jennifer Dominey at 1.647.519.7735 to arrange your confidential meeting, or visit remaxintegra.com.

The new Lakelands Association of Realtors logo.

Congratulations on this decision, Jackie! We know this is just the beginning of your global success.

remaxintegra.com

From left: Tony Schmidt, president of KWAR; Karen Redman, CEO, Habitat for Humanity Waterloo Region; James Craig, past president of KWAR; Jerry Lawlor, VP of development, Habitat for Humanity Waterloo Region; and Colleen Koehler, 2nd VP of KWAR.

REM MARCH 2018 37

WinnipegRealtors have announced Chris Dudeck as its 2018 president. He becomes the association’s 115th president and will lead the association of more than 1,900 members this year. Dudeck started his real estate career in 1995 and 16 years later he acquired his broker designation. He is currently licensed as a Realtor and alternate broker with Coldwell Banker Preferred Real Estate. The other volunteer directors are Ken Clark of ACT Realty, president elect; Catherine Schellenberg of Re/ Max Professionals, treasurer; Blair Sonnichsen of Royal LePage Dynamic Real Estate, past president; and Trevor Clay of Capital Commercial Real Estate Services, Commercial Division chair. Directors at large include Akash Bedi of Re/Max Executive Realty; Jennifer Berthelette

of Ethos Realty; Kourosh Doustshenas of Expert Real Estate Services; Dennis Lozinski of Century 21 Advanced Realty; Josh Nekrep of Century 21 Carrie.com; Tony Rinella of Ethos Realty; and Liz Taylor of Royal LePage Prime Real Estate. The Durham Region Association of Realtors (DRAR) recently presented cheques to three local charities. Resources for Exceptional Children and Youth supports young people with special needs, providing services and resources to families since 1987. WindReach Farm provides individuals with disabilities and special needs an opportunity to learn farming, nature, outdoor recreation and other activities. Durham Outlook For The Needy is a seven-day-a-week, 365-day-a-year soup kitchen that has provided food to the less fortunate for over 25 years. Money was raised by the Every Realtor Campaign, which

Debbie McCannell, events co-ordinator at Hospice Georgian Triangle, receives the cheque from Matthew Lidbetter, president of SGBAR.

DRAR EO Wendy Giroux, left, and governance and events coordinator Kate Johnson, centre, present the cheque to Durham Outlook For The Needy director of fundraising Alexandra Valcour.

began in 2007. DRAR members contribute a dollar per member per month, which provides grants to local charities. The Kitchener-Waterloo Association of Realtors recently presented donations totaling just over $18,000 to three local charities. Habitat for Humanity Waterloo Region, House of Friendship and YWCA Kitchener-Waterloo have each received $6,111 from the Realtors Care Foundation (RCF). “Our members are proud to support the RCF through the Every Realtor campaign,” says Tony Schmidt, president of KWAR. “RCF funds shelterrelated charities across Ontario. KWAR’s participation ensures that investments are being directed right back into our community. Every one of these charities is helping to improve the quality of life in Waterloo regions.” Recently the Southern Georgian Bay Association of Realtors (SGBAR), through the Ontario Realtors Care Foundation – Every Realtor Campaign, presented $7,702 to Hospice Georgian Triangle (Campbell House Palliative Care Residence). “We’re very proud of the great work our foundation does,” says Matthew Lidbetter, president of SGBAR. “The foundation is the legacy of every Realtor in this province. It belongs to all of us. That’s why our association thinks it’s important to support its great work.” SGBAR represents more than 550 Realtors in the Towns of Midland and Penetanguishene, the townships of Tay and Tiny and parts of Severn and Georgian Bay Townships, Wasaga Beach, Clearview Township, Collingwood, The Blue Mountains and portions of the Municipality of Meaford and Grey Highlands. REM

Real Estate Office in SUPERNatural British Columbia, South Okanagan Looking for high calibre Managing Broker.

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Pictured: Daryl King The Daryl King team is located at 9050 Yonge St #100, Richmond Hill, ON.

RE/MAX Hallmark Realty Ltd. Welcomes The Daryl King Team to RE/MAX! Please join us in welcoming Daryl King and his team to RE/MAX! Joining RE/MAX Hallmark Realty Ltd. in Richmond Hill, the Daryl King team will continue to service the Toronto-York region. Daryl King is a 31-year vet in the industry, with an impressive number of awards to his name. Joining him at RE/MAX Hallmark, will be his team of 43 registered agents, administrative staff and marketing team – a robust sales team that is a force to be reckoned with. Having been one of the first teams in Canada over 20 years ago, Daryl knows the value of training, coaching and mentoring, which is why they are ranked as the number one real estate team in York Region. Having worked for RE/MAX in previous years, Daryl is no stranger to the power-brand. Our If you are interested in ownership opportunities with RE/MAX, the largest most productive real estate brand, contact Jennifer Dominey at 1.647.519.7735 to arrange your confidential meeting, or visit remaxintegra.com.

global presence and worldwide affiliations will allow him to refer agents and clients – something that will ultimately help him continue to grow his ever-expanding business. However, it is a commitment to great service that remains his number one priority, both personally with clients and for his team. With the addition of the Daryl King team, RE/MAX Hallmark and their group of companies continue to grow throughout Ontario with 17 offices across the GTA, York and Durham Regions and Ottawa. Please join us in congratulating Ken McLachlan, Debra Bain and Steve Tabrizi of RE/MAX Hallmark Realty Ltd. on this impressive addition, and welcoming The Daryl King team to the RE/MAX network!

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38 REM MARCH 2018

THE PUBLISHER'S PAGE

By Heino Molls

MARKETPLACE

real estate agent doesn’t automatically get paid because they qualified for their real estate licence. They must sell their services to those who wish to buy or sell property. If they do that well, then they must work to make a few more real estate deals and then work to make even more real estate deals. Most of their achievements are based on customer recommendations and referral networks. It takes years for most real estate agents to be successful. There are lots of getrich-quick stories in this business but for the clear majority, it takes

Your best investment: time

years of hard work. How long do you think you might be in the real estate business? Ten years, maybe more? If you ask me, you should be thinking in terms of 20 years. I can tell you over these many decades of watching the business, a couple of things seem to ring true. The first one is always time. Whenever I speak to an agent who is considered successful and has made a great deal of money, I find that they have been in the business for a minimum of 10 years and far more often, 20. It just seems that simple. How many times have you heard that old line; “90 per cent of life is showing up every day”? If you do just that for 10 years, chances are you will be successful. If you make the investment of time you will succeed. You can do things along the way that might speed things up, but your greatest investment is time itself and showing up every day. Another thing that rings true when I speak to successful

agents is that most are involved in their community in a volunteer capacity. It may be coaching sports teams, community theatre or attending meetings of committees and associations. There are many things you can do to invest your time. Perhaps you have thought of community help that is unique to you. Time costs you nothing but the impact you have, if it is sincere, can be extraordinary and meaningful. Your good character costs nothing either, but its value is a treasure that cannot be measured. You must work on it always and that takes time. I remember three or four firefighters who volunteered their Saturday mornings when I was a kid to show a group of us how to operate a fire extinguisher and learn safety tips. After a couple of those Saturday mornings, we got a little letter-size document, made out in a certificate style, to say we had completed a course on fire safety. We were pretty proud of

that. It was important to me and I still recall what I learned back then. I also remember a hockey coach who picked me up a couple of times when my dad was working. He wasn’t picking me up because I was the best player on the team. He also picked up other players whose parents couldn’t get them to the game. There were fantastic people in my community who I still remember after over 50 years. What’s it worth to you to have somebody remember you after 50 years? Does that have value for you? If I was a real estate agent today, I would organize a Saturday morning or a week-night evening to teach people, especially young people, how to manage a home. I don’t know any school that teaches kids what a hydro bill is. I would explain efficient use of water and even simple savings like running the dishwasher at night and a host of other things like electrical safety and tips on energy savings. I would also review simple condominium

law. I would show the fundamentals of etiquette to run a condo board of directors meeting. I would bring in experts and make up a little certificate for those who attend. Today people say time is money but that is not really true. Time is still free and you can give it away to people who need it, if you are willing. You can give it in your community, in your neighbourhood and even in your job. The trick to “investing time” is to do it freely, give it sincerely and make it meaningful without any expectation of return. If you do that, I promise, it does come back, sometimes 10-fold when you least expect it. The more years you put in, the more you get back. It’s as simple as that. Time is the best investment you can make in your job, in your community and in your life. And it doesn’t cost you a thing. Heino Molls is publisher of REM. Email heino@remonline.com REM

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Buying Property in a Vulnerable Area: What Your Buyer Needs to Know

We all rely on safe, sustainable drinking water. Under the Clean Water Act, source protection plans were established that contain policies to protect local sources of municipal drinking water.

protectingwatermatters.ca

For a property close to a municipal well or surface water intake, there may be policies in place that manage or prohibit certain activities. Make sure your buyer knows how these policies may impact their future plans, and checks with the municipality about any new use, business or construction proposed for the property. Find a link to local resources at protectingwatermatters.ca.

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