Real Estate Marketing
Issue #245
News
Mortgages
Te c h n o l o g y
Opinion
November 2009
Sutton Group’s Scott Shaw Associations join forces to attract retirees Page 3
Working with investors and astute buyers Page 32
What are the odds of this happening? 2 sales rep brothers, 2 holes-in-one Page 40
His views on the future of real estate Page 8
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REM NOVEMBER 2009 3
Attracting retirees to embattled Windsor area Associations join together to promote Canada’s southern-most peninsula – and provide leads to real estate professionals. By Connie Adair
A
s respected community leaders in a region impacted by severe economic decline, The WindsorEssex County Real Estate Board, Greater Windsor Home Builders Association and Windsor-Essex Regional Chamber of Commerce have joined forces to create a marketing partnership dedicated to pursuing the 50+ market, says Krista Del Gatto, the real estate board’s executive officer. Incorporating as a not-for-profit organization, the Windsor Essex Active Retirement Community Initiative (WEARCI) was formed in mid-2008. The mission of WEARCI (pronounced we-arekey) is to attract investment, create new jobs and revitalize the region’s real estate market. The plan is to get a market that represents 44 per cent of Canada’s population (or 14 million people) to consider the Windsor-Essex region as their permanent retirement destination, Del Gatto says. The area has been “branded as
Krista Del Gatto
The Windsor skyline
the Windsor-Essex 100 Mile Peninsula, to describe the geographic distinction that differentiates the Windsor-Essex region from any other in the country. The 100 Mile Peninsula and the 100 Mile Lifestyle denote a destination, not just a location to retire to,” she says. “There are advantages to being the southern-most peninsula in Canada and having seven months of good weather,” says Windsor Mayor Eddie Francis. “We also have thousands of acres of parkland that has been reclaimed already, 100 miles of shoreline, as well as fishing, golfing and entertainment facilities. Windsor’s proximity to Michigan offers a metropolitan appeal to the area. We offer everything from education to health care. We offer all of it.” WEARCI hopes to attract those considering retirement, the semi-retired and fully retired who are currently living in higher priced and higher populated areas. “Of the 14 million Canadians aged 50 pus, 2.2 million live in Ontario, with 874,000 concentrated in the Greater Toronto Area,” Del Gatto says. This year marked the start of a four-year, $1.5-million marketing campaign targeting the GTA. The campaign is focusing on the real estate savings the Windsor-Essex Peninsula offers. A chart on the WEARCI website www.retirehere.ca compares prices in Windsor, London, Kitchener, Barrie, Hamilton, Ottawa and
Toronto for both average resale home prices and average rental costs for a two-bedroom apartment. For average resale, Windsor boasts $153,800, versus Toronto at $377,091 according MLS 2009 figures. Luxury developments in the area will total $90 million between 2007 and 2010, according to the website. The website offers information about the location, lifestyle, how to find a home, how to build a home, how to start a business, and amenities. The area’s nine communities offer a low cost of living, convenient travel times between city and county, a commitment to exceptional health care and a location referred to as Florida North, Del Gatto says. The City of Windsor has approved funding of $60,000 per year over the next five years based on the county providing matching funds. WEARCI is also in talks with the local tourism board and other organizations to join the team. The more partners, the more money there will be to market outside the area, she says. “For the 2009 year-to-date, we’ve spent $105,000 on media. The four-year advertising plan calls for an additional $1.14-million in placed media, pending funding.” WEARCI also has a call centre, which forwards leads to real estate agents who have taken the 50/50 Tour Training for the Windsor-Essex 100 Mile Peninsula. Training is being provided by the Windsor-Essex County Real Estate Board. Three sessions have taken place to date, with 172 registered Realtors taking part. The course offers information about WEARCI and its mission and activities, what and where the 100 Mile Peninsula is, sponsorship and funding opportunities, and advertising activities and results, Del Gatto says. “The course also touches on key messages to learn and repeat when promoting the peninsula, and how the 50/50 Tour works and their role in these efforts.” Those who complete the
course have their names put into a drum and are randomly drawn as interested parties contact the call centre, either via a 1-877 number or an online contact form, she says. “Each Realtor is eligible for one lead until all of the names have been drawn, then the process will be repeated. To date we have matched 48 Realtors with prospects. The biggest benefit is that Realtors are receiving direct qualified leads from people interested in relocating to the WindsorEssex area.” Through the 50/50 program, visitors in the 50-plus age group will save 50 per cent on hotel accommodation. Fourteen tours
were planned for August and September, with sales tracked and call centres following up with agents and potential customers. A survey of the real estate board’s 848 members has been positive. Responses from 366 members said to keep up the initiative, Del Gatto says. The initiative is a good thing for everyone, she says. “It’s a ripple effect. It’s good for real estate but not just the sale of the home, but for investment, restaurants and other local businesses.” Call 1-877-963-2323 or visit www.retirehere.ca for more inforREM mation.
OBITUARY
George Loades L
ong-time real estate professional George Loades, 68, of Calgary died on September 22. Loades made a significant contribution to Alberta’s real estate industry, serving as president of the Calgary Real Estate Board, the Alberta Real Estate Association, and the Real Estate Institute of Canada. He was the broker/owner of Coronation Realty, a Calgary company he headed up since 1980. Loades’ real love within real estate, however, was continuing education. He taught courses to other Realtors since the early ’70s, later criss-crossing the province when mandatory education was introduced into Alberta. “That was a massive, marvelous move for the consumer, and it brought all of the rural, small Realtors and companies up to a standard they had never dreamt before,” said Loades when he was featured on the cover of REM in February of this year. “We’ve really leveled the playing field since, with standard forms from border to border – mandatory forms and mandatory
education.” H i s favourite hobby was building houses for a variety of birds, but in particular the mountain bluebird. He built about 300 birdhouses a year and donated them to the 60 members of the Calgary chapter of Mountain Bluebird Trails. Loades told REM that he’d built and set up 500 birdhouses along his trail; he also banded more than 2,000 birds a year. “The greatest pleasure in birding is banding,” said Loades. “I’ve banded just over 30,000 birds. I recapture about 100-120 birds a year with bands and 90 per cent of the birds I recapture are ones I’ve previously banded myself.” Along with his wife of 46 years, Ann, George is survived by his children, Patricia Loades of Calgary; David and his wife Dawn of Didsbury, Alta.; Kristine and her husband Toby Couchman of Houston, Tex.; and seven grandREM children.
4 REM NOVEMBER 2009
Multiple Listings By Jim Adair
Do you have news to share with Canada’s real estate community? Let REM know about it! Email: jim@remonline.com
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to expand into this market segment.” The group will initially operate from Vancouver, led by Scott Brown, and Toronto, providing developers with marketing services in all major markets across Canada. Colliers Macaulay Nicolls Inc., operating as Colliers International, is a global real estate services company operating 290 offices in 63 countries. Services include brokerage, property management, hotel investment sales and consulting, corporate services, valuation, consulting and appraisal services, mortgage banking and research.
olliers International is getting into residential real estate. The company’s new Residential Project Marketing group will provide developers with real estate marketing and sales services for largescale multi-unit residential projects. The new practice, headed by industry veteran Greg Ashley, will expand its services into the U.S. and other markets abroad, the company says. “Colliers has studied the residential project marketing sector for the past few years and has seen real synergies in incorporating this line of services into our current business,” says David Bowden, Canadian president at Colliers International. “The addition of this new practice group will provide an added value to our clients while supporting Colliers’ growth strategy. This service will offer our clients the unique opportunity to distribute product internationally by leveraging our vast network. As the residential markets are stabilizing, this is the right time
Real estate agents still face an uphill battle to improve their image with consumers. A new survey of 1,003 Canadians by Nanos Research asked consumers to rate the honesty and ethics of various professions, and real estate agents ranked near the bottom the list. It continues a trend of several years. The survey, conducted August
Greg Ashley
David Bowden
NOVEMBER 2009 Cover photo: CRAIG HODGE
■ ■ ■
28 to Sept. 2, put medical doctors and community pharmacists at the top of the list. Real estate agents ranked higher than MPPs/MLAs, car salespeople, business executives and stockbrokers. But real estate agents were considered less honest and ethical than bankers, lawyers, building contractors, labour union leaders and journalists. In the list of 18 professions, real estate agents ranked 14th. ■ ■ ■
Rick Siwek, broker/owner of Royal LePage Frank Real Estate, has opened a new office in Uxbridge, Ont. Royal LePage Frank Real Estate now has 13 offices servicing Durham Region and the Kawartha Lakes areas, with over 200 sales professionals. The new location is managed by Wayne Cordingley. ■ ■ ■
The firm will now operate as NAI Commercial (Sask). Based in Regina, NAI Commercial (Sask) is the largest third-party commercial and residential property management company in the region. The fullservice firm offers commercial brokerage services, including tenant representation, leasing and sales of office, retail and industrial space, investment sales, property management and facilities management. “Saskatchewan’s economic strength in recent years has resulted in many multinational companies expanding their interests in the market,” says Jeffrey M. Finn, president & CEO, NAI Global. “The addition NAI Commercial (Sask), together with the recent signing of NAI Aslar Urban in Toronto, significantly expands our capabilities in Canada.” “The southern Saskatchewan market is growing, with an abundance of natural resources and spike in the service sectors,” says Paul Mehlsen, managing partner and broker, NAI Commercial (Sask). “Our goal is to tap the resources of NAI to expand our team’s current service offerings and to provide our market with world-class service.” ■ ■ ■
Commercial real estate firm NAI Global is expanding into Saskatchewan with the signing of ICR Commercial (Regina) Ltd.
Exit Realty Corp. International says it has paid out over $175 million in single-level
Rick Siwek
Ed Martens
residuals to its sales associates. The company held its annual international convention at the end of September in Washington, D.C. Featured speakers at this year’s event included Bob Proctor, Stedman Graham, John Miller and Walter Sanford. Ed Martens, senior vice-president franchise sales – Canada, says the convention saw a record turn-out. “The phenomenal level of participation speaks to the strength and culture of this organization. It’s also exciting to be a Canadian company that has been so warmly and enthusiastically embraced by both Canadians and Americans,” he says. “The United States marketplace is so large and diverse and has proved to be such a wonderful complement for our Canadian associates, who enjoy many benefits from this affiliation.” Exit says it has also paid out $1.5 million in secretarial bonuses and pledged over $1.6 million to Habitat for Humanity, including builds in Halifax and Fredericton. ■ ■ ■
Re/Max International says it has scored a “significant legal victory” with the ruling of a U.S. federal judge who held that a sign used by Trend Setter Realty, a brokerage with as many as 700 agents in Houston and San Antonio, infringes the Re/Max red-overwhite-over-blue design under both federal and Texas law. The decision comes from U.S. District Court for the Southern District of Texas in Houston, which ruled on September 3, reaffirming that the red-over-white-over-blue design is a protected trademark. “In addition to the victory in this case, the judge’s ruling will serve as a very important precedent for us to use against any future infringement of our redover-white-over-blue bar design,” Continued on page 6
Publisher HEINO MOLLS e-mail: heino@remonline.com
Editor JIM ADAIR e-mail: jim@remonline.com
2255B Queen Street East Suite #1178 Toronto, ON M4E 1G3
If you have industry news or want us to know about your company or services
General Manager JOHN COOPER e-mail: john@remonline.com
Senior Editor KATHY BEVAN e-mail: kathy@remonline.com
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Director, Sales & Marketing DENNIS ROCK e-mail: dennis@remonline.com Brand Design SANDRA GOODER
Art Director LIZ MACKIN Graphic Design SHAWN KELLY
REALTOR® and REALTORS® are trademarks controlled in Canada by The Canadian Real Estate Association (CREA) and identify licensed real estate practitioners who are members of CREA. MLS® and Multiple Listing Service® are trademarks owned by CREA and identify the services rendered by members of CREA. REM is published 12 times a year. It is an independently owned and operated company and is not affiliated with any real estate association, board or company. REM is distributed across Canada by leading real estate boards and by direct delivery in selected areas. Subscriptions are $40.95 per year (including $1.95 GST), payable by personal cheque. Entire contents copyright 2009 REM. All rights reserved. Reproduction in whole or in part without written permission from the publisher is prohibited. The opinions expressed in REM are not necessarily those of the publisher. ISSN 1201-1223
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6 REM NOVEMBER 2009
Scotia says global housing recovery underway G
lobal real estate markets are showing tentative but growing signs of stabilization, says a report by Scotia Economics. “Real home prices increased in a number of major developed economies in the second quarter of 2009, including Canada, Australia and the United States,” says Adrienne Warren, senior economist, Scotia Economics. “Prices were still falling in many other markets, including the U.K., France and Spain, but generally at a slowing rate. For the most part, however, real home prices are still lower relative to a year ago.” Scotia Economics says the improving sentiment in global residential real estate markets is sustainable. According to the report, the firming in pricing is evidence of growing confidence in the sustainability of the fledgling global economic recovery. Historically low borrowing costs, increased affordability and home-buyer tax incentives in a number of countries are underpinning a modest revival in housing demand. Signs of a bottoming in home prices are likely now bringing some fence-sitters off the sidelines, says the report. “Financial market conditions,
including rebounding global equity markets and an easing in credit constraints, are also becoming more supportive,” says Warren. “A significant amount of worldwide excess production capacity will keep a lid on inflationary pressures for some time to come, allowing monetary authorities to keep short-term interest rates at historically low levels and very supportive of housing market activity. “Nevertheless, the rebound in housing activity will be constrained in part by a generally more cautious borrow and spend mentality, with weakened household finances leading to a renewed focus on reducing debt and rebuilding savings,” says Warren. “Labour market conditions are beginning to stabilize, but unemployment rates remain high and are expected to be slow to decline. A more cautious lending environment is expected to persist as financial institutions around the world recapitalize their balance sheets.” There remain excesses in the global housing market that point to an extended period of more subdued activity, says the report. Many countries are burdened with an excess supply of unsold housing inventory after years of overbuild-
ing. Despite recent price declines, housing valuation measures such as price-to-rent and price-toincome ratios also suggest some continued overvaluation in many markets, it says. Even stabilization in housing prices, demand and construction would be highly supportive of a broader economic recovery, particularly as the near-term fuel provided by government stimulus spending and inventory rebuilding begins to fade, says the report. “Homeownership is a crucial sector of national economies and an important source of wealth for many households, influencing spending, saving and borrowing decisions,” says Warren. “It also has significant spillover to other domestic industries, including retail sales, finance and insurance, and a range of professional and household services.” In Canada, “We expect resale markets will become better balanced in 2010 as pent-up demand from the depressed levels of last fall and winter wanes and as the number of listings increase, removing some of the recent incentive to add more new housing stock, and cooling price increases in both the new and resale market,” says REM Warren.
Multiple Listings Continued from page 4
says Re/Max senior vice-president and chief legal officer Geoff Lewis. “We made many attempts to get Trend Setter to settle with us and to change their sign before the case proceeded, but they refused.” Re/Max International filed the suit in 2007. In addition to trademark infringement, the action claimed use of the sign violated the Independent Contractor Agreement that broker Deborah Miller had with Re/Max Elite, which she left to help found Trend Setter Realty. The judge ruled in favour of Re/Max on both counts. ■ ■ ■
Toronto-based Richmond Group of Companies announced that Richmond Advisory Services is expanding its real estate services for the corporate relocation industry. “We will be providing tenancy management services across Canada,” says Arun Mehta, president and CEO. “Our service delivery model will be very similar to that of ones currently in place in South East Asia and the United Kingdom. This service will allow clients to engage Richmond Advisory Services for tasks associated with their trans-
ferees’ tenancies in the host country, such as co-ordination of repairs, utility payments, rental payments, and other employee reimbursements related to the rental of the property.” Richmond Advisory Services provides property management and tenancy management services across Canada. Its sister company Richmond Realty Group is a fullservice real estate brokerage. ■ ■ ■
James Mallozzi has been appointed chairman and CEO of Prudential Real Estate and Relocation Services, Inc. (PRERS). Mallozzi will succeed John Van Der Wall, who will retire at the end of the year after 24 years with Prudential. Mallozzi was most recently senior vice-president of the Institutional Solutions Group in Prudential Retirement, Prudential’s retirement services provider. Mallozzi joined Prudential in 2004 and during his career with the company he also served as head of marketing and product for Prudential Retirement. Van Der Wall joined Prudential in 1985 and has held a number of senior leadership roles prior to becoming chairman and chief executive officer of PRERS in 2000. REM
Royal LePage sees market stabilizing
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anada’s housing market is on the road to recovery but is experiencing a pronounced undersupply of homes for sale says the Royal LePage House Price Survey. With the recession retreating, the report found that home prices are stabilizing and unit sales are increasingly driven by improved affordability. The market’s strong showing in the third quarter has led some commentators to refer to the current conditions as the beginning of a real estate boom. Royal LePage says that the increase in sales activity and firming of house prices are the product of a normal market correction and not the beginning of another aggressive expansionary cycle.
“The 2009 real estate market has seen sales activity lagging approximately one month behind the typical seasonal patterns,” says Phil Soper, president and chief executive, Royal LePage. “The economic recession halted the flow of the real estate cycle from the fourth quarter of 2008 through the first quarter of 2009, but it is essentially now back on track, albeit delayed. Once housing supply returns to normal levels, we believe the economy will support modest pricing growth into 2010.” The company says that while the Atlantic Provinces saw a strong recovery in home prices with double-digit percentage increases year-over-year in some markets in the third quarter of
2009, western provinces have been slower to recover from the significant price corrections that occurred in 2008, particularly in British Columbia and Alberta. Meanwhile, Ontario and Quebec saw home prices stabilize or gain slightly year-over-year with much of the recovery occurring throughout the strong third quarter. “It appears the market recovered unevenly,” Soper says. “In the first quarter of 2009 we saw the return of first-time buyers, then cautious move-up buyers. In the third quarter, the sales activity of the higher-priced regions of the country and higher-priced property types picked up momentum and caught up to the lower-priced segREM ments.”
The Royal LePage HeadStart Conference was recently held in Penticton, B.C. with 300 attendees from across Canada. The Royal LePage HeadStart Committee posed with Phil Soper, president and chief executive, Royal LePage, on the final evening of the conference. From left: Michael Trites, Royal LePage Northstar, Surrey; Ian Meissner, Royal LePage Wheeler Cheam, Chilliwack; Brent Roberts, Royal LePage Brent Roberts, Surrey; Marco Radunz, conference co-chair; Soper; Irene Mandzuk, conference co-chair, Royal LePage North Shore, West Vancouver; Pat Vale, Royal LePage Wheeler Cheam, Mission; Diane Birk, Royal LePage Westside, Vancouver; and Don Tebbutt, Royal LePage Wolstencroft, Langley.
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2/11/09 2:30:40 PM
8 REM NOVEMBER 2009
In conversation with Scott Shaw
Sutton Group Realty Services opened its first real estate office in North Vancouver in 1983. By 1990, it was serving the Prairies; by 1992, it was operating in almost all of the provinces; two years later, the franchisor had expanded in Quebec. Now, as Sutton Group moves into its next quarter century, the company has some 200 offices with approximately 9,300 salespeople across Canada. Sutton Group was an early adopter of technology, setting up a national corporate website in 1995 and offering its Realtors personalized email addresses and web pages. Recently, Sutton’s president and CEO Scott Shaw spoke to REM senior editor Kathy Bevan about the strong role technology continues to play at Sutton Group and throughout the real estate industry, as he shared some of his thoughts about the next 25 years. very little difference in the office space. Understand what they’re talking about, understand their needs. Business 101 remains the same – it’s how you administer Business 101. REM: With younger people coming into the marketplace, are you seeing more part-time people or more fulltime people joining Sutton Group?
Photo: Craig Hodge
REM: We’re seeing a new generation of young people coming into the real estate industry, people who are used to having cell phones in one ear, digital music players in the other, while they’re networking through Facebook and Twitter. What do brokers have to do to support these new, techno-savvy Realtors? SHAW: The most important thing may not be having all the tools, all the technology, in your office. For that, a franchisor or the industry can assist – there are a lot of resources out there to assist. The most important thing for the manager/broker is to understand the needs of that younger, newer group. Do you understand what they’re talking about on Facebook or Twitter? Sometimes, there is very little difference to being a parent with children. I have two children in their 30s and they speak a different language than me. If I didn’t try to understand what they’re talking about, there would be a world of difference in how they would relate to me. There’s
SHAW: That’s a very interesting question. Because of technology, the Internet, social media, Realtors can work almost any time of the day. Fifteen to 20 years ago, you could only really work when your client was up. Now, the distance is no longer an issue and the time is no longer an issue. Realtors may work eight to 10 hours while everyone else is sleeping. So-called part-time and full-time become totally different issues. It’s how dedicated, how focused they are working on a particular career, that is what is going to drive their success or not. If we go back two decades, in those days very successful mothers of school-aged children could only work between 9:30 am to 3 pm. Before 9:30, they had to take their kids to school; after 3 pm, they had to take them to afterschool activities. So they were often viewed as being part-time Realtors. But with today’s technology, they can work as much while waiting at a soccer meet – their cell phone never stops, their laptop never stops, their Blackberry or other device never stops. The line between so-called
part-time and full-time Realtor, that line blurs. They’re at the job all the time, so I would say they’re always full-time. When you can never turn your business off, it may appear you’re only at work a few hours every day, but you’re always “on”. REM: As someone who’s been in the real estate business for a long time, what are the most helpful of the new social media tools you are using? SHAW: I try to be on a lot of social media, mainly as a way to stay close to the marketplace and know what’s happening and how to advise our people to do things. But as far as I can see, what social media tools are doing is not new – they’re just using certain technology to do what Realtors have been doing for a very long time. That’s because basically, the real estate business is a networking business. Many sales reps and brokers do their networking in the old-fashioned way. They network at parties, at different occasions, they network through their church, their community centre, they organize school gatherings and they give community support, many of them by giving back to their favourite charity or community event. We have a program called Sutton Spirit, which encourages our people to do that. It doesn’t really matter if you’re using technology to meet up with your client, or using the good old-fashioned method of driving up to the community centre or to the church to meet them. The end result is exactly the same. The only difference is that, if you use technology, you can “meet” with them pretty
much anywhere, anytime you want to do so. REM: The appropriateness of using Internet technology and aggregators to more widely share listing data has recently made headlines in our magazine as well as elsewhere – what are your thoughts on Saskatchewan’s recent agreement to use aggregator Point2 Technologies to disseminate listing data and Century 21 Canada’s legal battle to prevent its listing data from being shared by aggregator Zoocasa.com? SHAW: There are two totally different directions – you want to have more exposure, but at the same time you want to ensure the integrity of the data is there. Organized real estate, the boards, the associations, CREA are all looking at this from a protection point of view, while the aggregators are looking at it from a wider exposure point of view. Those two will have to converge at some future point – they will have to move a little bit to the other side, or else they will continue to be at opposite sides of a pendulum, swinging back and forth until something happens. Otherwise the aggregators will always have less formalized data being aggregated, without complete integrity, while organized real estate and companies will have protected data without having enough exposure. How we can look after both the integrity of the data and maximize the exposure – that’s where we’re going to have to be very smart people, to put both of those together. REM: Sutton Group was an early proponent of large single
offices with hundreds of salespeople. Heading into your next 25 years, is the mega-office still your basic business model? SHAW: Absolutely, because we believe – especially in metropolitan areas – that you can have offices with many hundreds of agents registered there, because they can travel an hour east or an hour west. And by the time their client has to be at a certain place, they can travel there. But other than that – with technology’s help – they can do market surveys, client communications and so on without having to be in the next block. As we all know, to do business Realtors mostly act on their own, but they want to have the support of a brokerage behind them. Having a large office definitely gives them that advantage. Certainly, in a remote area, the size is different again. There we have technology to be able to join offices together, through IP phones and the Internet. In Quebec, we have offices of 200 to 300 people who are spread across many miles. We also have offices like that on Vancouver Island. We also have offices of two to five people, spread out over very large areas, and we use technology to connect them. That will be the trend. Short of showing people the house – which is when you need to be in front of them – you can be anywhere, serving them through the Internet, cell phones, other technology. You can service them anytime, at midnight if your client is in another time zone – you can service them whenever and however you wish. That is our challenge, but it is also our opportunity. REM
10 REM NOVEMBER 2009
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ith the worst of the recession over, residential real estate markets in major Canadian centres are poised for growth in the final quarter of 2009, says a report by Re/Max. The Re/Max Bricks and Mortar Report found the bounce-back that began in early spring has made this recession one of the shortest on record for real estate. Low interest rates, pent-up demand, and improved affordability levels have all played a role in the recovery now well underway. Percentage increases in sales from January to August 2009 were led by Vancouver, (up 14 per cent to 23,158), Victoria (up 7.4 per cent to 5,266), Edmonton (up 6.2 per cent to 13,691), Regina (up five per cent to 2,597), Ottawa (up 2.4 per cent to 10,830) and Toronto (up 1.8 per cent to 58,421). Housing values are already ahead of record-breaking 2008 levels in seven of the 11 markets surveyed, including NewfoundlandLabrador (18.1 per cent year to $203,584), Regina (6.4 per cent to $244,088), Halifax-Dartmouth (3.5 per cent to $239,633), Winnipeg (3.5 per cent to $207,006), Ottawa (3.3 per cent to $301,684), and Toronto (up 0.3 per cent to $385,978). Nationally, average price hovers at $312,585, up 0.5 per cent over one year ago. “Markets are heating up across the country,” says Michael Polzler, executive vice-president, Re/Max Ontario-Atlantic Canada. “Purchasers are clearly taking advantage of affordable prices and rock bottom interest rates. Those who missed the boat in years past have found that sitting on the sidelines can be a costly move. Prices are on the upswing and inventory levels are tightening, so the push toward homeownership is expected to continue throughout the fall and possibly into early 2010.” The recovery of Canada’s resale housing markets speaks to the tremendous value Canadians place on the importance of owning a
home, says Re/Max. The number of Canadians overall who own a home has increased since 1981 from 62.1 per cent to 68.4 per cent, with some markets posting even higher homeownership rates – Calgary (74.1), St. John’s (71.5), Regina (70.1), and Edmonton (69.2). Significant gains have also been made over the same period in markets such as Ottawa – where homeownership levels rose from 51.4 per cent to 66.7 per cent – and Toronto, where levels rose from 57.3 to 67.6 per cent. “The strength of the residential housing sector cross-country has taken many economists and housing analysts by surprise once again,” says Elton Ash, regional executive vice-president, Re/Max of Western Canada. “In terms of its impact on the resale market, by historical standards, this recession was one of the mildest. The resilience of bricks and mortar has been demonstrated time and again. While there may still be some challenges down the road, the worst is definitely behind us in the housing industry.” Over the past 30 years, the Canadian residential real estate market has experienced three major downturns – 1981, 1989 and 2008. While there have also been regional fluctuations throughout the years, return on investment over this period has been substantial, with Vancouver, Victoria, Toronto, Regina and Ottawa leading the country in terms of price appreciation, says Re/Max. The overall stability of real estate as an investment has also played a role. Markets like HalifaxDartmouth, Regina, Ottawa, Winnipeg and London have provided steady returns (especially in recent years), with minimal fluctuation. Re/Max says that public sentiment can best be illustrated by a recent Angus Reid Omnibus Survey that asked, “In which do you feel more comfortable investing your money – the stock market or real estate?” Out of 1,000 respondents from coast-to-coast, 77 per cent chose real estate. REM
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12 REM NOVEMBER 2009
Duty to accommodate LEGAL ISSUES
By Donald H. Lapowich ousing for mentally challenged individuals has recently been in the news. Take the case of balancing that interest and the interest of other inhabitants in a recent case where a condominium owner suffered from paranoid schizophrenia for many years. The owner’s symptoms varied in intensity for some 15 years while she lived in the condominium, and led to numerous difficulties with her neighbours. The condominium unit corporation moved for the owner’s compliance with the declarations, bylaws and rules. By order, the corporation could inspect the unit in question as it saw fit. This order was not appealed. Unfortunately, there were continuing breaches to the bylaws and the court ordered the mentally challenged owner to sell the unit and vacate it, stating the accommodation of this unit owner had led to “undue hardship” for the other owners for five years. It was a real challenge for a court trying to weigh conflicting and sympathetic interests.
H
■ ■ ■
In another recent case, “I Inc.” agreed to lend mortgage funds to “C Ltd”. I Inc.’s commitment letter allowed the setting of the mortgage rate in advance of closing, with a cut-off date. C Ltd. chose May 19 to close and rate was set at 4.08 per cent. However, by that date, C Ltd. was not in a position to clear an existing mortgage and liens, so I Inc. extended the closing date to
May 23 at the same 4.08 per cent rate. When it became apparent C Ltd. still could not satisfy its obligations by May 23, I Inc. insisted on a higher rate. C Ltd. chose to refuse to close after May 23 at the higher rate and I Inc. retained the $125,000 deposit as liquidated damages. When C Ltd. sued, the court held there was no “promissory estoppel” or waiver of time of the essence by I Inc. that initially extended the closing by seven days at the same rate. When C Ltd. still could not close on time, I Inc. was entitled to rely on the commitment, which set out the mechanism to determine a higher rate. ■ ■ ■
In a case in B.C., a property was sold with the intention of it being developed, by being subdivided into five lots. The vendor was to retain one lot, and the purchaser was to provide a subdivision plan by the closing date. The subdivision plan was turned down because the lot to be retained by vendor had to be remediated, at the expense of both vendor and purchaser. The vendor and the purchaser both breached the contract. The vendor did not advise the purchaser of the need to remediate the one lot, and the purchaser did not provide the subdivision plan by the closing date. The trial judge ruled that the vendor must transfer the property but an appeal court overturned the trial judge, since the purchaser was not ready and willing to complete the purchase. It ruled that the subdivision plan could not be obtained by purchaser for “many” reasons and therefore specific performance sought by the purchaser was dismissed. Two wrongs do not make a right. Donald H. Lapowich, Q.C. Hon. FRGD is a partner at the law firm of Koskie, Minsky LLP in Toronto, where he practices civil litigation with a particular emphasis on real estate litigation. He acts for professionals including lawyers, real estate agents, insurance brokers/agents and dentists. REM
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T h e H o m e o f H o m e In s p e c ti o n
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14 REM NOVEMBER 2009
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Danny Brown
Real Estate Agent Market Connections Inc.® 4950 Yonge Street, Suite 101 Toronto, ON M2N 6K1 Bus: (800) 387-6058 Fax: (800) 800-7093 dbrown@marketconnections.com Greetings! You’re receiving this newsletter with hopes that you find it informative and entertaining. If you’re thinking of making a move, or are just curious as to real estate trends in your area, please feel free to call at any time. It’s always good to hear from you! All the best,
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Stronger Home Sales Lift National Forecast The Canadian Real Estate Association (CREA) increased their 2009 national home sales forecast to 432,600 units, just 0.4 percent less than levels set in 2008, and a significant upward revision from the previously forecast decline of 14.7 percent from last year. The national MLS® home sales activity is projected to continue rising, with an expected 5.3 percent increase to 455,400 units next year.
“Sales activity started off the third quarter on a strong footing,” said CREA President Dale Ripplinger. “The difference in the resale housing market now, compared to the beginning of the year, is night and day.” Chief Economist Gregory Klump noted, “Low interest rates are boosting sales by returning homebuyers to the market who moved to the sidelines late last year.” He added, “Buyers are also shifting purchase decisions forward as they take advantage of attractive interest rates now before financing costs increase.” CREA previously forecast a decline in the national average price of 5.2 percent for 2009, when in fact recent figures point to an increase
of 1.5 percent this year, mostly due to the strong rebound in sales activity in some of Canada’s most expensive markets. “The speed with which the Canadian resale housing market has rebounded is unprecedented,” said Mr. Klump. Is 2010 the year you sell your house, and upsize, downsize or move to a more appropriate living arrangement? If so, please remember that a qualified real estate representative can make the difference between an efficient, informed transaction and a stressful moving experience. Take the first step toward a smooth move by calling today for the latest housing news in your area. CNSF
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ealtors in Ontario and B.C. are lobbying against harmonized sales taxes that are set to begin on July 1, 2010. The taxes will add significantly to the cost of home ownership. The Ontario Real Estate Association’s lobbying efforts have included a call for action to its members, which has resulted in more than 13,000 emails being sent to MPPs, the association says. It has also taken out newspaper ads and issued press releases that have been released by several local boards. “Ontarians can expect to pay a harmonized sales tax (HST) rate of 13 per cent on a long list of goods and services that were previously exempt from the eight per cent provincial sales tax (PST). While the impact of the tax will be felt by all Ontarians, the province’s three million homeowners and the thousands who buy and sell a home every year will be hit particularly hard by this latest tax grab,” says the association in a release. “Home buyers and sellers can expect to pay eight per cent more on legal fees, appraisals, real estate commissions, condo fees, home inspection fees, moving costs and the provincial government’s recently introduced system of mandatory home energy audits,” says OREA. It says on average, buyers will have to pay an additional $1,449 in new taxes on their next residential real estate transaction. “Help our profession oppose this latest tax grab. Write to your MPP and tell them that Ontarians do not need higher taxes on homeownership,” says OREA. The association includes a form on its website that members and consumers can use to send a message to their MPP. The British Columbia Real Estate Association has a web page devoted specifically to the HST issue (www.bcrea.bc.ca/hst/hstaction.htm). It also includes forms that make it easy for members or
consumers to express their concerns to the government, and an extensive FAQ section covering all aspects of the proposed tax. ■ ■ ■
Established in 1986 by WinnipegRealtors, the Citizens Hall of Fame is a unique program honouring outstanding citizens contributing to Winnipeg’s quality of life. Each inductee has a likeness of themselves sculpted and prominently displayed at the Citizens Hall of Fame site in Assiniboine Park.
Realtors in Ontario and B.C. are lobbying against harmonized sales taxes. Sol Kanee is this year’s inductee. “Where do you begin and where do you end on describing an individual living nearly 98 years (he passed away in 2007) and nominated for his achievements in all fields of endeavour – arts, business, voluntary service, professionals, public affairs and others,” says Rick Preston, chair of WinnipegRealtors Citizens Hall of Fame committee. “Kanee is a truly remarkable citizen who touched so many people and organizations throughout his prolific life in ways that will endure for many years to come.” Kanee was instrumental in creating the United Way of Winnipeg, which was originally called Winnipeg Community Chest. His resume includes lawyer, soldier, senior business executive,
confidant of prime ministers and presidents, negotiator, community leader and builder, mentor, philanthropist and humanist. At 17 years, Kanee was the longest-serving director of the Bank of Canada. He also was the chairman of the Federal Business Development Bank from 1975 to 1978. For more about past inductees and the Citizens Hall of Fame program, visit www.winnipegfame.ca ■ ■ ■
Business students at the University of Alberta are learning about the intricacies of real estate development and investment in a course created by the Alberta Real Estate Foundation, with Alberta Realtors providing hands-on industry experience. The foundation grant, along with monies from the University of Alberta, supported the development of Business Economics: Principles in Real Estate. The course debuted in the 2008/09 academic year and this fall, was chosen as an elective course by 49 undergraduate business and five MBA students at the School of Business. “Regardless of their career paths, all students will be affected by real estate decisions in their careers,” says Paul McElhone, the executive director of the School of Retailing, who helped develop the course and is the key instructor for the fall 2009 session. “Whether it is operations, finance, accounting or marketing, real estate strategies have an impact on profitability and bottom line performance,” Principles in Real Estate offers business students an understanding of the complexity of the commercial real estate industry and exposure to industry experts and career options. The foundation’s $500,000 commitment covers a five-year plan to initiate and refine the course. Industry members helped develop the course materials and served as guest instructors for the first two semesters. “The experience has been very positive for me,” says Wayne Moen of Re/Max River City in Edmonton, who was involved in the initial concept and curriculum development. “Industry members are able to go beyond the theory and contribute with their everyday experiences in the marketplace.” REM
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16 REM NOVEMBER 2009
Letters to the Editor Reaction to Real Estate Retainers I just finished reading your article in the October edition of REM (Real Estate Retainers, The Publisher’s Page), and I had to write to tell you that I could not agree with you more. I have often wondered (and discussed with other Realtors) why we are so desperate to give everything away for free. Why do buyers and sellers believe they have the right to waste our time looking at many different homes or getting us to tell them what their house is worth, even when they have no intention of dealing with us? All of us have a story (if you have been in real estate long enough) about someone who has taken up weekend after weekend of our time only to change their mind and not buy a house, or buy privately, or wait until the Buyer Representation Agreement has expired to deal with another Realtor. The reason, I believe, is that we encourage this type of behaviour from the public. We consistently offer FREE market evaluations, FREE tours of many, many houses that people may want to potentially purchase and FREE whatever else we can think of.
There is no other profession (no respected one anyway) that I can think of where so much FREE stuff is offered with no promise/guarantee of payment for services provided. We cheapen our own image and value by doing this. There have been many occasions where I have worked with first-time buyers who have asked me how much they have to pay for my services. They are often surprised when I explain to them that they do not pay me anything, and that I am paid out of the total commission that the seller pays. The fact is, they have an expectation of paying for services rendered. It is not the public, but us Realtors, who insist on working for free. Ask a contractor to renovate your home without a substantial down payment on the total renovation contract. Ask your local fitness club to give you a one-year membership that you only have to pay for if/when you actually use the facilities. Even your family doctor will not see you until you first provide your health card to the receptionist so they know they will be paid. For some reason, we insist on working for free with the hopes of making money IF a successful transaction takes place.
There is a very quick and easy way to change the system that would protect us as Realtors from people who just want to use us as tour-guides on a Sunday afternoon or who seem to think that we enjoy spending our weekends away from our families. It would ensure that when we invest time and energy into a client that we are actually reimbursed each and every time. It would also serve to protect the buyer from lazy Realtors who think the buyer should buy a house after only seeing one or two homes. Here is the idea (it makes sense, which pretty much means it will never happen, but I will tell it to you anyway): When a potential buyer tells you they want to look at homes and you see this is someone you can work with, you sign a Buyer Representation Agreement and they pay a retainer ($1,000 for example). The contract will state how many hours of your time they are entitled to for this money. For example, $1,000 = 40 hours of services ( $25 per hour as a retainer). This is done to protect the buyer and ensure the Realtor does not just take the money and do nothing to justify the retainer. It is also done to protect the Realtor by ensuring they will receive some compensation for dealing with
this person. If the buyer changes their mind about buying a house, or if they decide to buy privately (whatever the reason, if you cannot make a sale ) you at least have $1,000 to compensate your time and trouble. If, on the other hand, the buyer does purchase a house, they would be reimbursed the $1,000 from your commission on closing. In the end, your services cost them NOTHING if they are a real buyer. If, however, they just waste your time (which could be spent with other clients or actually living your life), they pay for that. Please don’t ask, “What about the people who don’t have $1,000?” If they don’t have $1,000, how are they going to give a deposit with their offer or cover their closing costs? Boris J. Bubas Sales Representative Re/Max Real Estate Centre Kitchener, Ont. I have had these same ideas since 2000 when I was first licensed. To write to you about it is preaching to the choir. Nonetheless, I must write to you, because I would like to see this change implemented to our
system of selling real property. I believe there are many other benefits than those you have mentioned. For example, consumers would carefully select their Realtor for selling and for buying as their own for representation, would not seek “second opinions”. Also, these second opinions would not be so readily forthcoming because Realtors would not be inclined to work for free. Respect for agency agreements would rise, for Realtors and consumers alike. The Realtor divorce rate would be lower and the challenge to have a balance between work and other life activities would be more achievable because we would not be perceived as an EMS service operating 24/7. My question is, how? Any suggestions as to who we can take this to within the industry? OREA? CREA? Individual boards? Who can make this change happen? Realtors, yes. The same ones who scramble every day – but what overseeing body would champion this cause? Jennifer Rockburne Broker Royal LePage Mississauga, Ont. REM
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7/15/09 4:13:58 PM
Teal is the new green.
Think Green. Think EXIT.
By AMY YOUNGREN The green real estate movement is today’s mantra for everything from energy-efficient appliances and toxin-free building materials to all-natural cleaning supplies or water-saving products! Everywhere we turn, marketing screams for our lives to “go green!” Whether it’ s the bag you pack your groceries in, separating recyclables before putting out the garbage or checking the tags on what you buy to ensure it’s organic, day-to-day living centers around being – or quickly becoming – ecofriendly. One of the most important things to buyers and sellers today is the environment. And in order to meet the demands of first-time home buyers (average age according to the National Association of REALTORS® is 30), agents must become savvy,
green-educated professionals. Age 30 is between the Gen X/Y era where green is not just a consideration to that demographic; it’s a lifestyle. Environmentallyfriendly features are deemed as very important by 90% of buyers.* The stats make perfect sense since owning a green home is said to be good for your health, save you money and benefit the environment. If that’s not enough motivation: green homes are expected to account for 10% of new home construction in 2010, up from 5% in 2005, according to McGraw-Hill Construction. Not to mention that while the average U.S. home lost 5.7% of its value in 2007, eco-friendly homes have actually held their value, some even appreciating in price. Green properties typically appraise for 10% to 15% higher than comparable conventional homes
AT EXIT AGENTS
(depending on region and upgrades).** Buying green real estate is more affordable than ever before. The premium is minimal compared to what it used to be and can be easily offset by the long-term savings on things like energy-efficient furnaces for example. That alone could save you $570 annually, according to the U.S. Department of Energy.
IT’S
ALL
ABOUT
OUR
EXIT recognizes the value in making this educational opportunity available because like everything else we do, our agents are the focal point of our company. With that in mind, at the 2009 EXIT Annual Convention, EXIT announced the launch of our green initiative, “teal is the new green” which includes training, resources and other tools to assist our agents in marketing themselves as proficient green REALTORS®. By aligning ourselves with EcoBroker® International, the world’s first and largest green designation program for real estate professionals, we keep giving REALTORS® more and more reasons to choose EXIT for a successful career. EcoBroker’s® green designation training and communications will provide EXIT agents with the resources to be constructive green ambassadors in an ever-changing business and consumer world. They will be able to knowledgably assist clients in their pursuit of properties that provide affordability, comfort and a healthier environment. EXIT-EcoBroker certified professionals will also help sellers effectively market their properties with green features. Because EXIT offers only the very best in training and education, EcoBroker® is the only designation which is
“we keep giving REALTORS® more and more reasons to choose EXIT for a successful career.” What qualifies as a green home to one might not necessarily make the cut with another, but the key is recognizing the significance of the green movement in real estate and heading aggressively in that direction. The green housing market is creating a tipping point in the real estate industry. REALTORS® that don’t get on board the green train will get left behind.
taught by experts in both the green industry and the real estate industry. With over 5400 agents trained worldwide, they are the largest green designation program for real estate. “We are also the only green certification program that requires our members to take four hours of additional education each year” says John Stovall, VP Business Development for EcoBroker® International. “Our
“The environment will be one of the great challenges of the 21st century. Soon it will dominate virtually all aspects of life in North America – socially, politically, and economically. Today’s great leaders and entrepreneurs must look at environmental problems as an opportunity to set themselves apart from the competition.” Steve Morris, Founder and CEO EXIT Realty Corp. International
annual Advantage Course will keep EXIT-EcoBrokers on top of the latest information in the world of green real estate.” EXIT has negotiated special pricing that is not available anywhere else in the industry, so our agents can affordably become EcoBroker® certified. EXIT-EcoBrokers will be equipped with additional energy and environmental information as well as tools to help them provide added value to all of their real estate transactions. “This training helps our agents address the newest topics in real estate, such as green home certification programs like ENERGY STAR®, says Tami Bonnell, President of the US Organization. “It also provides practical solutions to assist them in working through issues that may arise in any real estate transaction, such as mold, radon, or poor indoor air quality to name just a few.” By becoming an EXIT-EcoBroker, our agents will be able to grow their client base by attracting the greenminded consumer and providing valuable energy and environmental information to all consumer types.
THE INSIDE SCOOP
I had a chance to connect with a few EXIT-EcoBrokers to hear first-hand how being green-certified has impacted their real estate business. EXIT: Why is being green-educated so relevant in today’s economic conditions?
EXIT: How can REALTORS® green their day-to-day business? LH: Go paperless. Drive a hybrid or fuel efficient vehicle. Purchase environmentally-friendly marketing materials. Recycle. Encourage clients to green their home. Point out green features when listing homes for sale. Work with EXIT’s green Approved Suppliers. EXIT: How can going green save money for REALTORS®? DM: It’s about being more efficient, using fewer materials, driving smarter and using less fuel. Utilize the phone and internet as much as possible. Host group meetings so you are meeting with more people at the same time. These things all save time and put less stress on the environment. EXIT: What green tips can you offer REALTORS® to help set them apart from the competition? LH: Become an EcoBroker®! Drive a fuel-efficient car. Use only eco-friendly marketing materials and make that fact known. DM: Become an EcoBroker® because having the credibility of that designation is valuable to gaining clients. Give presentations in your community about relevant green issues.
“GREEN IS NOT JUST A CONSIDERATION....IT’S A LIFESTYLE.” DM: The driving force behind the green real estate movement is economic. With today’s home ownership struggles because of market conditions, not understanding the value of green is a true disservice to the client. JQ: With the high cost of housing and utilities, being green certified can help educate homeowners with ways to conserve energy and reduce costs.
JQ: Provide your clients and farm areas with green info on a regular basis. Set-up a booth at a local garden/ home show featuring green info and products to help remember you. Meet with green builders in your area. EXIT: What special tools/resources do you offer your clients to help them green their home/property? We utilize all of EXIT’s green tools, including
*REALTOR® Magazine online **Appraisal Institute®
For more information about EXIT Realty Corp. International or the Teal Is the New Green Program, contact:
Amy Youngren
Green Program Representative EXIT Realty Corp. International ayoungren@exitrealty.com
technology, e-marketing and eco-friendly printers etc. DM: ENERGY STAR® products and practices offer property owners excellent solutions to save money and protect the environment which is something every green buyer or seller wants to hear about an information that will impress them. Everyone has heard the famous three “R” environmental catch-phrase: reduce, reuse, and recycle. At EXIT, we’ve added one more benefit to going green and one more “R” to the expression – recruit! Green education is attracting REALTORS® to EXIT. Here are five reasons why you should join EXIT and be a tangible part of the green real estate movement
1. Being an EXIT-EcoBroker differentiates you from the other 2.6 million real estate professionals
not yet caught on to the significance of the green movement in real estate. Use green education to your competitive advantage by keeping current on topics that are shaping the way consumers buy and sell property.
3. Although the media might think it’s their job to continually magnify environmental problems, it can be your job to spread the word that you are the resident “go-to” eco-friendly REALTOR® in your community. Be a part of the solution and you’ll notice more and more customers seeking you out. By marketing yourself as a green expert, you can broaden your clientele.
4.
Add value to your transactions with EXIT-EcoBroker training and resources. You’ll have the expertise needed to help your buyers and sellers work through the environmental issues that weigh on the mind of today’s home owner. Your clients will have immediate peace of mind when they discover that EXIT is on the cutting edge of their green concerns.
5.
in the U.S. when a client is looking to buy or sell a home. Remember, environmentalism is becoming more important to more people every single day.
2.
The majority of REALTORS® have
At EXIT, we offer the only real estate career with a built-in supplementary income that provides the flexibility and freedom to achieve the ultimate balance between career and lifestyle. Perpetual and portable, EXIT’s residual income converts into Retirement Benefits as well as Beneficiary Benefits, ensuring the maximum return on your invested time. As an EXIT-EcoBroker attracting other environmentally-conscious agents just got even easier!
Interviewees Loretta Hughes Franchisee, EcoBroker® EXIT Realty Fusion Regina, SK
Don McCoy Energy Trust Trade Ally, Earth Advantage S.T.A.R.® EcoBroker® EXIT Realty Group Medford, OR
Jamie Quinn ABR, REM, REW, EcoBroker® EXIT Realty Group Spring, TX
22 REM NOVEMBER 2009
$2 million gap for same home, different cities C
Realty Promoter software
oldwell Banker’s annual Home Price Comparison Index (HPCI) found a price gap of more than $2 million between the most expensive and most affordable North American markets for a 2,200 square foot home. In the annual comparison of similar homes in 345 North American markets, La Jolla, Calif. led the list as the most expensive real estate market on the continent with an average home price of $2.125 million US. Vancouver placed 10th on the North American most expensive list at $1.262 million CDN, topping the 35 Canadian markets studied. Grayling, Mich. was North America’s most affordable market, one of 20 similarly priced communities on the most affordable list. Canada’s most affordable major market, Charlottetown, was narrowly edged out of the North
American top 10 most affordable markets. A similarly sized home there costs only $158,667 CDN. Internationally, Singapore at $1.9 million US, was the most expensive market for the same type of home while Salinas, Ecuador, at $69,375 US, was the most affordable studied international market. The report provides an applesto-apples comparison of similar 2,200-square-foot, four-bedroom, two-and-a-half bath homes in Canada, the U.S. and Puerto Rico, and a sampling of 56 countries/territories outside of North America where Coldwell Banker Real Estate has a presence. John Geha, president of Coldwell Banker Canada Operations, says, “It is particularly interesting to compare the affordability levels now seen across North America and other global centres. Compared to many major
markets throughout the world, Canadian real estate looks like a bargain.” The study’s four-bedroom, twoand-a-half bath home is what would typically be sought for middle-management corporate transferees. “It’s what we call the ‘aspirational home’ and is usually purchased by move-up buyers experiencing lifestyle changes,” says Geha. “Despite record-breaking prices in many of Canada’s major markets, these homes are selling, as buyers take advantage of today’s historically low interest rates. These move-up buyers have been a critical component in our resurgent real estate market, and will continue to play a major role in Canada’s recovering economy.” For more information about the index, visit http://hpci.coldwellbanker.com/hpci.aspx. REM
Bay Adelaide Centre opens in Toronto T
he first major development in Toronto’s financial district in over 17 years, the Bay Adelaide Centre recently had its official opening. Brookfield Properties Corporation and its Canadian-based subsidiary, BPO Properties say it’s the first development built to achieve a Leadership in Energy and Environmental Design (LEED) Gold Standard in Toronto’s financial district. The 51-storey, 1.2-millionsquare-foot office tower adheres to strict building efficiency guidelines, including optimization of energy, light and water, and the use of local and recycled building materials. The building also features state-ofthe-art operating and life safety systems, the company says. “With the development of Bay Adelaide Centre, Toronto’s position as a leader in the commercial real estate industry has been strengthened,” said Toronto Mayor
David Miller at the opening. “Toronto is Canada’s business centre and we need Class A towers like this one if we are to maintain that standing. Not only did Brookfield succeed at building Toronto’s future with this state-ofthe-art facility, our city’s heritage can be celebrated by incorporating the historic National Building façade that stood on the site since 1926.” Designed by architects WZMH Partners, the building’s interior features a sophisticated and contemporary design with its main lobby rising 28 feet floor-to-ceiling, enabling maximum use of natural light. The lobby also features a light installation by artist James Turrell. Bay Adelaide Centre’s retail concourse has 40,000 square feet of shops and a food court that will complete the city’s north/south PATH underground walkway from The Bay to Scotia Plaza.
Bay Adelaide Centre’s anchor tenant is KPMG; other significant tenants include law firms Heenan Blaikie, Goodmans LLP and Fasken Martineau. The tower is 73 per cent leased. Construction of the complex commenced in the summer of 2006 with a ceremonial knocking down of the “stump,” a six-storey elevator core erected 15 years ago by the previous owners of the site. Phases two and three of Bay Adelaide Centre are planned to be a mix of office and hotel/residential. Brookfield Properties owns, develops and manages office properties. Its current portfolio includes interests in 108 properties totaling 75 million square feet in the downtown cores of New York, Boston, Washington, D.C., Los Angeles, Houston, Toronto, Calgary and Ottawa, making it one of the largest owners of commercial real estate in North REM America.
24 REM NOVEMBER 2009
Mural brightens inner-city neighbourhood By Connie Adair
A
s the saying goes, everything happens for a reason. One day sales rep Joe Clare of Re/Max North in Edmonton woke up with an image of colourful plumes of smoke rising from a building flashing in his mind. The image inspired him to commission a 16 x 16-foot mural that employed homeless people to create and help brighten an inner city neighbourhood. Slightly “nervous” about the image he pictured, Clare said he told a friend about it over dinner. “I explained the image and said I thought it might be a mural,” says Clare, who was catching up with Carol in Vancouver after the two friends had lost touch for many years. Coincidentally, Carol’s husband, whom Clare had never met, is an artist who
goes by the name James K-M. Although James K-M creates only smaller paintings, Clare commissioned him to create the large public mural. “I wouldn’t let him say no,” says Clare, who returned to Edmonton with firm instructions from the artist about how to prep the wall for the mural. Clare hired a crew of homeless people to help with scaffolding and to scrape the wall. The crew then applied a yellow base coat, as well as a large square of red. The work took about three weeks and every worker was paid and fed. James K-M and an assistant then travelled to Edmonton, taking six days to apply the blue symbols to the mural based on a 2X2-foot painting the artist created in 2007. The painting and
the mural are named Free Rain, an “intended play on the notion of a liberating and free-rein of metaphysical perception. But I also see the abstract shapes in the painting as rain-like….” says James K-M in his artist’s statement. Clare says in another turn of happenstance, the colours of the mural are the same as the colourful plumes of smoke he first imagined. And, Clare says he “knew intuitively that it wouldn’t rain until the mural was finished. As the last brush stroke was made, it started to rain. Later that night there were tornado-like conditions and during the unveiling in July 2009, it rained.” From start to finish, everything about the mural project was an “otherworldly experience. It was mystical. Everyone from
the homeless to the artist were highly focused. It was a most harmonious project,” says Clare, who owns the commercial building the mural brightens. The renovated building houses retail tenants, two lofts and affordable housing. So why did he spend about $15,000 on a public mural? “Real estate agents should be advocates for neighbourhoods,” he says. And business-wise, he says real estate professionals should remember that “the amount of goodwill (created by) a community-based project is greater than any advertising or pen will give them.” For more information about the mural, visit www.strathearnmural.net, or email Joe Clare at joeclareremax@shaw.ca REM
Artist James K-M and Joe Clare pose in front of the mural. (Photo by Ron Snider)
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28 REM NOVEMBER 2009
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‘Serve from the heart’ urges Rock Thomas “I light up when people realize how great they are,” says Rock Thomas. “The definition of courage is not being unafraid – it’s taking action in spite of fear.” By Susan Doran
R
ock Thomas, who in 1997 bought Montreal’s Re/Max Royal Jordan franchise and went on to transform it into one of the largest and most successful offices in Quebec, says that at one time he “was a loner, not very coachable.” Nor, he says, was he any good at public speaking. It seems hard to believe now that this real estate veteran and self-made millionaire is a top motivational speaker who travels the country and the world, letting real estate professionals and others in on the secrets to success. But Thomas has always been a go-getter. “Maybe because I grew up on a farm, I kept putting myself in a position where I was forced to step up,” he says. He learned not to shy away from hard work and after a year of university (studying philosophy) he threw himself into a string of jobs ranging from driving cab in Australia to picking tobacco, to hiring and training flight attendants. In “classic Rock Thomas” form, in the ’80s he started off as a ‘gofer’ on the movie Meatballs and wound up landing a small part “jumping off a boat and necking with a girl,” he says. Perhaps this isn’t exactly what he means when he tells his audiences today to “step into your own greatness.” When he first got into real estate in 1990, he says he had a lot to learn. At the time he thought he would “clean up” in the business financially. Then, despite 80-hour work weeks, it took him eight months to make his first sale. But he began to take some personal development courses and to learn how to model himself on successful people. Before too long he was the top agent at Re/Max Royal Jordan. In 1996, he recalls setting a goal for himself (he’s a huge believer in goals, “Make a Plan!” being one of his mantras). Before the end of the year, he determined he would “play
100 games of golf (he’s a six-handicap golfer) and sell 100 homes.” He fell just one game short on the golf. And on December 31 he sold five houses, putting his sales for the year at 104. The next year, he bought the company. When he sold it three years ago, it had grown from three offices to six, with 270 agents – almost triple the number he’d started with. A big believer in the importance of real estate agents having access to quality training, he loved mentoring and inspiring his employees, teaching them to overcome their limits and their fears. He wanted to do it now on a broader scale. “I light up when people realize how great they are,” he says. “The definition of courage is not being unafraid – it’s taking action in spite of fear.” After selling Re/Max Royal Jordan he began (with friends), a quest for knowledge, traveling the world, spending more than 1,000 hours and $700,000 attending seminars with leading motivational speakers such as Tony Robbins (with whom he’s worked as a trainer) and Deepak Chopra. “I’m a voracious learner, capturing the essence …and passing it on,” he says. He then started his own company, Rock Thomas International, and began giving empowerment seminars. Last year he was approached by Peak Potential Training and now leads seminars for that hugely successful company as well. His advice to real estate agents? “Truly serve from the heart. Service is what real estate is about. When people are relaxed they can make decisions. When they are stressed and fearful they back away. “Have a good line of communication. You need to cultivate a deep sense of trust and respect with clients … to follow up and finish what you say you’re going to do,” he says. “When you foster that environment, the phone will ring non-stop.” It’s “a mindset,” he says. “I don’t
Rock Thomas
talk about ‘surviving’ a tough market. I talk about doing it. People take themselves out before they get going… Ask the right questions. If you’re desperate you don’t create confidence.” It’s important in this market for real estate agents to “provide value,” such as free information. Don’t pressure your clients, he advises. Give them what they want. He says: “Real estate is not a part-time position. Like an airplane, it needs full throttle at first. After two or three years of time and attention you will reach cruising altitude … business will come to you … and you can throttle back and enjoy life.” It’s key to “focus on the future, not the past,” the performance coach and author reminds his audiences. “Oprah has 27 secretaries,” he says. “She focuses on what’s going on today.” He believes that the main reason most people don’t succeed is they’d rather be right than open to learning. “You’ve got to let it go. Be effective, not right,” he says. In this changing market, the ability to learn is the greatest skill a real estate agent needs, he says. “Those who don’t will get left behind. “People wait for things to get easier,” he says. “You’ve got to get better. Then it will get easier.” Rock Thomas is offering a one-day seminar called Supercharge Your Mindset on November 18 in Toronto. For details visit www.rockthomas.com. REM
30 REM NOVEMBER 2009
Making commitments AS I SEE IT FROM MY DESK
By Stan Albert “In the final analysis, what we are communicates far more eloquently than anything we say or do.” — Stephen Covey et’s talk about commitment and/or dedication for a moment or two. The year is about over – just a few more months and we ring up another year in the books. It’s time to reflect on what we’ve accomplished over the past 10 months and see what we’ve left our stamp on in 2009 thus far. I remember in one of the late Ann Landers’ columns, she said: “At the end of the day, will someone remember what you did and think positively about you?” Those of us of the Hebrew faith recently celebrated the Jewish New Year 5770, the holiest of the Hebrew faith’s observances. Over these many years, I’ve tried to set an example for my children of being committed to those observances, by not working on those High Holy Days. I guess in many ways, I’ve been committed to this noble task not only out of reverence to my late Dad and his commitment, but to this anecdotal story that occurred 42 years ago. The Los Angeles Dodgers were in the World Series versus the Minnesota Twins and Sandy Koufax, the Dodger’s fire-
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balling pitching ace, was due to start the first game. Sandy is Jewish and decided to sit out the first game as it fell on Yom Kippur (the Day of Atonement). The Dodgers got whipped in the first game without their ace pitcher. Where was Koufax? Sitting in the Conservative Temple of Aaron in St. Paul in his suit and tie. Even though Koufax wasn’t religious, he’d told contemporary reporters that: “I wanted to set a good example for the rest of the Jewish youth.” He promised somehow to make it up to the Dodgers in the best of seven series for the World Championship. It seemed unlikely that this unhittable pitcher would get enough games in to help his mates. But that he did, winning the second and fifth games and with only two days rest, with an aching elbow, pitching and winning the seventh game for the Dodgers. Koufax became the youngest player ever to be inducted into the Hall of Fame in later years. But honouring commitments doesn’t mean observing holidays and winning the World Series. No, it’s what you believe in every day that will make a difference in someone’s life and life style. Make each day meaningful. Make every morning as great as those mornings you play golf or spend with your family on weekends. The commitments you make on those days should be the same every day that you are in the greatest profession in the world. At least, that’s the way I see it from my desk this month. Stan Albert, broker/manager, ABR, ASA at Re/Max Premier in Vaughan, Ont. can be reached for consultation at stanalb@rogers.com. Stan is now celebrating 40 years as an active real estate professional. He was recently approved to teach three of the Real Estate Training Institute’s CEU courses. REM
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32 REM NOVEMBER 2009
Working with investors and astute buyers Rick Siwek Royal LePage Frank R.E., Brokerage - expands! Uxbridge, Ontario
By Leon d’Ancona Andy Puthon, Executive Vice President, Network Development, is pleased to announce that Rick Siwek, Broker/Owner of Royal LePage Frank Real Estate has expanded into the town of Uxbridge, Ontario. With the addition of this office, Royal LePage Frank Real Estate now has 13 offices servicing Durham Region and the Kawartha Lakes areas with over 200 sales professionals. The new location is in the heart of downtown Uxbridge at 109 Brock Street West, and is managed by Wayne Cordingley. This location in the North Durham Region offers not only a dynamic team of experienced agents living and working in the area, but also allows Royal LePage to make a greater impact within the Durham community, and Scugog area. About Royal LePage’s presence in Uxbridge, Wayne says, “We are excited to become part of a professional and successful team like
Royal LePage Frank Real Estate, and are grateful to bring their superior client service and professionalism to the town of Uxbridge. We look forward to carrying on the excellent reputation the company has built.”
I
Wayne, and the team at Royal LePage Frank Real Estate can be reached at: 109 Brock Street, Uxbridge ON L9P1E7 Toll-Free: 877.852.3050 Email: wcordingley@royallepage.ca Please join us in congratulating Rick, and welcome Wayne, and the Uxbridge team to Royal LePage. For information on the Royal LePage franchise program, please call Andy Puthon directly at (416) 510-5827. Email: franchise@royallepage.ca †
†Royal LePage is a trademark used under license.
REM complies fully with the Canadian Real Estate Association’s Rules for trademarks! The CREA Trademark Toolkit states: “Most newspapers follow the Associated Press or Canadian Press Style Books in preparing news items for publications. These stylebooks do not call for use of full capitals or the ® registration symbol even for registered marks. “To acknowledge the reality of this limitation, CREA’s Rule 16.5.3.1 allows the media to display REALTOR® by only capitalizing the “R”. The Rule also provides that the ® is not necessary….. Similarly, the MLS® mark may be used by media without the ® symbol….” REM also support’s CREA’s Trademark Protection and Compliance Program by including a trademark statement, provided by CREA, on the masthead of every issue.
nvestors rightfully expect that you know the real estate market in your area very well. It won’t take very long for an astute real estate investor to realize if your knowledge is lacking and that perhaps they should be seeking the advice of someone else. Conversely, when an investor makes money with you, your reputation quickly starts to spread and others seek you out. Astute buyers think of themselves as investors because they think along the same lines. Here are four proven methods used by my clients both in Canada and the United States. 1: Investors and astute buyers look at a home as a way to make money. You will need to focus on the right area, one that’s conducive to growth and income potential. Remember “Location location location?” Don’t just preach it, practice it. 2: As an accomplished real estate professional you will understand the clients’ hopes, aspirations and goals for property growth and income. Then cater to that need impeccably. For example, look at Chart 1. Presenting a client with 12month data on how many units sold, how long it took to sell, and what the average and median price is, goes a long way to establish your credibility as an advisor. Suppose Quesnel, B.C. grabs your client’s fancy. You will need to dig a bit deeper: an average price of just $171,730 looks attractive, but what does it get you? There is a problem with “averages”. It reminds me of the statistician whose head is in the oven and his feet are in the refrigerator. When asked how he feels, he replies, “On average, I feel fine.” 3: An investor willing to sink money into a property expects to be presented with all the information relevant to their purchase,
such as the disparity within their choice. See Chart 2 for the subareas. They will likely influence your client’s decision. 4: In larger metropolitan areas with many sales, you should pay attention to the market percent of sales of a particular type of property. If condo apartments constitute a quarter of all sales, do condos have a constant market share? If the market slows, does it slow for all types of sales? Look at Chart 3, a four-year market trend of condo apartments. Do you see a trend? If you don’t, look at Chart 4, a four-year graph. Yes, Virginia, if you are an investor or a potential homeowner, Chart 1
Chart 2
Chart 3
Chart 4
there is a good time and a better time to buy a condo. Knowledge and presentation skills will earn you the reputation you deserve with clients who need an expert like you to help them. P.S. It’s always a good time to buy a home, given the right reason! Leon d’Ancona B.T.L., M.T.L., RRESI, is president and founder of IMS Incorporated, and creator of REality, an online service used by franchises, brokers and agents to improve their bottom line. He is a regular speaker at real estate gatherings throughout the continent, and is well-known for his entertaining, illuminating presentations. Email: Leon@realestatestatistics.com. REM
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34 REM NOVEMBER 2009
Remembrance Day
METES & BOUNDS
By Marty Douglas
R
emembrance Day. Not exactly one of those holidays when you buy gifts, gather family or exchange greetings of joy and good will. Not a lot of business here for Hallmark. I will attend the ceremony in my small town and gather silently with hundreds of my neighbours on our main street across from the cenotaph, waiting in what is frequently damp, cool weather – it’s the West Coast after all – for the 11h hour on the 11th day in the 11th month, some 90 years after the end of the war to end all wars. A dwindling number of Second
World War vets will march, supported by those from the Korean War, a jumble of peace keeping missions, the Gulf War and our current conflict in Afghanistan. The Royal Canadian Legions and the military messes at CFB Comox will swell with medal bedecked memories. Apparently we haven’t learned much since 1918. We have learned to export our wars to third-world countries where they are more out of sight and mind – except when convenient to serve as political footballs for the parties out of power to punt to those in charge. Changing political labels would not change the debate. To those veterans – the dead, the wounded, the survivors – of our past conflicts must go the gratitude of all Canadians. And thank you to the powers that be to permit the media coverage of the ramp ceremonies in Afghanistan and the moving spectacle of the cavalcade on the Highway of Heroes to Toronto and the reporting of
hometown tributes to the fallen. Let us never forget the dead and the living, those who return to us broken, frequently overlooked and poorly served by the citizens for whom they gave so much. Remembrance Day 2009 – If you didn’t vote in the last election in your country, province or municipality, at least honour those who gave so much so you could have the choice. Warren Buffett, in a quote intended for investors, summarized the debt we owe: “Someone’s sitting in the shade today because someone planted a tree a long time ago.� Take a moment, wear a poppy, and on November 11, pay attention. The NAR conference is later in the same week in San Diego and I’ll be there running the trade show floor – acres of exhibits, a real treat – and for an analogue guy who still carries a pager and doesn’t know his cell phone number, a bit of a mind altering experience. Not unlike the ’60s. Condoleezza Rice and Sugar
Ray Leonard are keynote speakers, Reba McEntire is the main stage entertainer and in between will be the usual high-quality sessions featuring celebrity trainers such as Brain Buffini and David Knox, to name just two of more than 200 speakers. That’s not a misprint. If NAR is ever in your budget – be there, be there and be there. And if you wear your poppy, as I have when the conference overlaps November 11th, you will be clearly identified as a Canadian. Veterans’ Day is not a statutory holiday in the U.S., merely an observed event. The USA does an amazing job of patriotism but when it comes to Remembrance Day – Canada and the Commonwealth are the best! I began this column some 550 words ago with the sole goal to make the next point. We need to keep remembering, to be reminded, because if we don’t – we will forget. Churchill said, “The more we look back, the further we may see ahead.� This is particularly true
during the current economic climate. There are lessons in the past, especially the Great Depression. During those years, more than 10,000 banks failed in the U.S. Only one failed in Canada. Articles on the strength of Canadian banking were written. Canada’s Banks Stand Up by Robert J.C. Stead was published in December 1932. Sound familiar? Similar stories are being written today and Canada’s banking system is touted around the world. Not a bad legacy, I suppose – banking, peace keeping missions, hockey players and CÊline Dion. How very Canadian! Marty Douglas is a managing broker for Coast Realty Group (Comox Valley) Ltd., managing two of 15 Coast Realty Group offices on Vancouver Island and the Sunshine Coast of B.C. He is a past chair of the Real Estate Errors and Omissions Corporation of B.C., the Real Estate Council of B.C., and the B.C. Real Estate Association, and is a current director of the Vancouver Island Real Estate Board. Email mdouglas@island.net; 1-800-715-3999; REM Fax (250) 897-3933.
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Sutton REALTORS® raise community spirit. By donating their time, expertise and resources to charitable causes and community endeavours, Sutton REALTORS® are making a difference in the communities in which they live and work. To learn more about Sutton Spirit visit www.suttonspirit.com.
S U T T O N ...T H E P L A C E T O B E Franchises available in the following areas: (visit www.sutton.com for more info) ATLANTIC · Charlottetown, PEI · St. John, NB · Moncton, NB
WEST · Edmonton · Calgary · Kelowna · Kamloops · Prince George
ONTARIO · Windsor · Kitchener/Waterloo/ Guelph · Brantford · Scarborough
· Cobourg · Belleville · Sudbury · North Bay
36 REM NOVEMBER 2009
R
on Young, franchisee at Exit Realty Specialists in Saint John, N.B. has been named Canadian Broker/Owner of the Year by Exit Realty Corp. International. â&#x20AC;&#x153;Ron opened with 5,600 square feet and in just over 2 1/2 years went from starting with himself and seven other agents to over 80 agents, two office locations and number one market share,â&#x20AC;? says
Joyce Paron, president of the Canadian organization of Exit Realty. â&#x20AC;&#x153;Ron opened his third office in late September in Sussex, N.B. and has surrounded himself with an exceptional executive team, including his right hand, Pam Trites, who oversees much of the day-to-day operations. Ron understands the value of working with and empowering strong people. He continues to see great
potential in the existing marketplace for further growth and is focused on a record-breaking year in 2010.â&#x20AC;? Pamela Norman won the award for Canadian Rookie of the Year. â&#x20AC;&#x153;Pamela, a former school teacher and fitness club owner, joined Exit Realty On The Rock in St. Johnâ&#x20AC;&#x2122;s in 2008 and put her Exit training to good use, taking 51 listings in her first year,â&#x20AC;? says Paron. â&#x20AC;&#x153;Pamela is very involved in serving her community and brings tremendous enthusiasm to everything she does. She has a genuine concern for people and couples this with a tremendous work ethic.â&#x20AC;? The first runner up for Canadian Rookie of the Year was Penny Rudderham of Exit Realty Seaway in Cornwall, Ont. REM
Ron Young
Pamela Norman
Pam Trites
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Earlier this year, The Mississauga Real Estate Board in partnership with The Mississauga News held its Annual Civic Reception honouring the fireman, police officers, citizen and Realtor of the Year. Bob Pridham of Realty Executives Plus was named Realtor of the Year and is seen here receiving his plaque from Pauline Aunger, president of the Ontario Real Estate Association, and Judi Lloyd, president of the Mississauga Real Estate Board.
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*Numbers as of year end 2008
38 REM NOVEMBER 2009
Financing properties in Mexico and the Caribbean By Shirley Evans
A
growing number of Canadians are looking to purchase retirement residences and vacation homes in the Caribbean and Mexico these days, given the turmoil in many popular U.S. property markets – areas where warmer climates have traditionally been the retreat of choice for Canadian snowbirds. With Canada’s ageing population, more people than ever are seeking an oasis away from our harsh winters. Based on 2006 Census information from Statistics Canada, as a result of the increase in the number of seniors since 2001, their proportion relative to the total population reached a record 13.7 per cent in 2006. Nearly one out of three Canadians was a Baby Boomer in 2006. Baby Boomers – currently between the ages of 43 and 64 – are an ideal group to purchase vacation properties and retirement residences.
It’s important to realize that financing for properties abroad presents a whole new mindset for real estate and mortgage professionals, as well as your clients. Probably the largest surprise is that financing for these properties is generally arranged in Canada since, in many cases, these properties must be paid for in cash. This is especially true in destinations such as the Dominican Republic and Costa Rica. For properties purchased abroad, Canadian lenders also require a more significant down payment – typically between 25 per cent and 40 per cent – compared to the traditional five per cent down payment for second home financing programs (vacation properties) in Canada. As a real estate expert advising your clients on purchasing vacation properties outside of Canada, it’s essential that you get to know the destinations where your clients are looking to make their purchases. Like any property, before making a purchase, clients need to know details of the local area including plans for future development. The last thing you’d want is to suggest your clients purchase a certain proper-
ty and then see a high-rise erected that blocks their $1 million view. By surrounding yourself with a team of experts in this niche – including mortgage brokers and lawyers – you can save yourself a lot of legwork. Your clients won’t expect you to know everything about every destination, but they will expect you to get them answers as soon as possible. When it comes to the tropics, there are many extra considerations your clients must undertake before making a purchase. Aside from a monthly mortgage and insurance payment, taxes and utilities, your clients can expect to pay extra for maintenance and pest control. You can’t cut corners in a tropical area because pests such as insects and rodents can wreak havoc. And when your clients aren’t enjoying the vacation property, a lot can go wrong, so it’s wise to have a property manager looking out for their best interest. Often, to offset these costs – where property management, ongoing maintenance and pest control can cost upwards of $700 a month – your client will consider renting the property out while it’s not being used. This is anoth-
er area where you will be expected to offer expertise so they can ensure their property remains intact. It’s also essential to look into insurance in tropical areas. If, for instance, the area is prone to hurricanes, it can be virtually impossible to secure insurance. For obvious reasons, your clients are likely to change their minds about location if they can’t secure insurance on their property. Make sure your clients visit the area and become familiar with it. Just like they wouldn’t want to purchase their principal residence on a whim, the same holds true for a vacation property or retirement residence. Regardless of where your clients decide to purchase vacation or retirement properties, a primary residence is a great financing option. If they have built up equity in their home, they can often use those resources to purchase a vacation property through a refinance or a home equity line of credit (HELOC). Depending on their current mortgage lender, they may be eligible for a HELOC product that would allow them to withdraw
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some equity from their current residence to help finance a second home. Benefits associated with using a HELOC include the fact that there is little or no set-up fee involved and they only pay interest on the portion of the HELOC that is being used. With interest rates currently hovering at historic lows, refinancing a current mortgage may enable your client to save extra money by switching to a lower interest rate – money they can put towards extra costs associated with their vacation home. If your client chooses to refinance, they must keep in mind that there are penalties for paying out an existing mortgage loan prior to renewal. But the penalties may be offset by the extra money they could acquire to put towards a vacation property. Shirley Evans is a long-time mortgage broker and co-owner of Dominion Lending Centres Lender Direct based in Edmonton. She specializes in the vacation property niche and also owns vacation properties in Mexico. (780) 455-4181; shirley@dlcld.ca; www.dlcld.ca/shirley.htm. REM
40 REM NOVEMBER 2009
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NEWS, OPINION, TRENDS FROM AN INDEPENDENT AND
TRUSTED SOURCE
Speaking in public
By Dan St. Yves
O
ne of the more unique extensions of being a writer (or successful sales rep for that matter) is the occasional opportunity one gets to speak in public. Whether it’s a reading of some of your work at a local library, or an address at some sort of literary event, public speaking is an opportunity to present yourself to the world. And an even better opportunity to discover just how hard your knees can knock when standing in front of people. I’m never sure of the validity of my quotes in this column, but let’s just assume that this one is relatively true: one of the greatest fears for the average person is speaking in public. Higher than a fear of heights, or even a fear of flying. Higher even than getting ravaged by a pack of wolves. Thankfully, there’s a wonderful international organization called Toastmasters, dedicated to helping people overcome those fears, and
ultimately instilling confidence in public speaking. In just a few sessions, you can transform from Silent Bob to Chatty Charlie, which admittedly is not always a good thing. Toastmasters clubs incorporate structured regular weekly meetings that will walk you through your introduction to the organization, on through to whichever level of competent speaker you choose to become. Personally, I’m gunning for “highly-sought-after, obscenelywell-paid keynote speaker”. Or I’m at least hoping to complete the introductory level of the program. Once the meeting gets underway, there are all sorts of members that have duties. You’ll find out about the sergeant-at-arms, who oddly enough is not recognized by any branch of the military. Still, if the one in your club is visibly “packin’ heat”, I for one will tend to listen when they tell you to do something. There is a chairperson, who runs the meeting, but has no say over which chair you choose to sit in. There are also a number of less friendly members, though. Speaker evaluators, for example, are rotating group members who listen carefully to those presenting prepared speeches, then (taking a cue from Simon Cowell or Don
Rickles), evaluate the speech and speaker. This is probably why the group has a sergeant-at-arms, armed and at the ready, for the first indication of heated fisticuffs. But that’s not all! There’s also a grammarian on board, to help members with niggly little things like poor use of grammar, or pronunciation. In my experience, grammarians need to get out a bit more, maybe at least to learn that “fo’shizzle my nizzle, dawg” is in fact quite acceptable now, in modern speech-making circles. Finally, a Toastmasters meeting also has a timer, and an “ah” counter, when evaluating a speech. The timer ensures that there is a merciful end to long-winded orators, and the “ah” counter tracks those awkward speech-stallers we unconsciously utilize, such as “um”. “ah”, “harrumph” and “Hey, is the timer napping?” If you fear public speaking, I highly recommend finding yourself a Toastmasters’ group. Now, on to other pressing matters – is there anything listed in the Yellow Pages for “ravaging wolf encounters”? 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 ThatDanGuy@shaw.ca. REM
What are the odds of this? Golfing sales rep brothers ace the same hole on the same day
THE ONLINE HOME OF
CANADA’S REAL ESTATE INDUSTRY
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Tyrel Hough and Torrey Hough work together, play together and beat the odds together. The brothers, sales reps with Platinum Realty Inc. in Kamloops, B.C. each got a hole in one, on the same day, and the same hole, one after the other. “We don’t know the exact odds, however I found an old golf digest entry on the net that stated something to the effect of ‘two people from the same foursome, acing the same hole, 17 million to one odds’. Now factor in those two people being brothers. I would love to hear how astronomical the probability is,” says Tyrel Hough. It was Sept. 8 when the broth-
ers “hole-in-one’d the same hole” while golfing with Del Schwitzer, managing broker at Platinum Realty, and Schwitzer’s colleague Sheldon Watch. “At first our brotherly competitiveness had us feeling some resentment like, ‘Really? Did you have to do this the same time as me and steal my moment of glory?’ Then the excitement from our two companions helped us realize the magnitude of what just happened,” Tyrel says. The brothers used to play golf when they were in their early teens, but didn’t start playing again until about three years ago, trying a variety of courses in order to
Tyrel (left) and Torrey Hough
meet new faces and try different challenges. On the day of their 15th hole “miracle”, the brothers were at Sun Rivers. “We are very proud of this accomplishment,” says Tyrel. “My brother and I have been agents for just over four years. We started out together and figured from our success that we were a good team. I think it’s safe to say that this is a definite sign we were meant to REM work together.”
REM NOVEMBER 2009 41
What’s
New Lone Wolf acquires Lucero Summit software Lone Wolf Real Estate Technologies, the largest supplier of real estate office management software in North America, has purchased the Lucero Summit real estate brokerage software from MarketLinx, a member of The First American Corporation group of companies. As part of the transaction, MarketLinx and Lone Wolf announced a new strategic partnership to provide for a seamless integration between both companies’ products. “The acquisition of the Lucero Summit assets from MarketLinx will expand our presence to three product lines – Lone Wolf, DPN and Lucero – covering more than 7,500 real estate offices across North America,” says Lorne C. Wallace, president of Lone Wolf. “This purchase supports our commitment to providing quality back-office management solutions and confirms our belief in the future of real estate brokerage operations in this difficult market. We are looking forward to working with the current customer base of Lucero, expanding it in the future and benefiting from our strategic partnership with MarketLinx. With the establishment of this customer base, we can develop the next generation of real estate brokerage software and create a solid infrastructure standard for the industry.” Ben Graboske, chief executive officer of MarketLinx, says, “Integrating MarketLinx’s frontoffice solutions, such as AgentAchieve and Document Manager, with Lone Wolf’s back-
office solutions will enhance our common clients’ user experience and productivity. The integration of Lucero within the Lone Wolf Real Estate Technologies suite of products will better align each company’s product offerings and market focus.”
Genworth contest helps Habitat For Humanity “What does home mean to you?” Until Nov. 13, Genworth Financial Canada is asking grades 4, 5, and 6 students across Canada to answer this question and write about what home means to them in the third annual Meaning of Home Contest. The writing contest is in support of Habitat for Humanity Canada and designed to raise awareness among students on the importance of having a home. According to Habitat for Humanity statistics, 1.5 million Canadian families require affordable housing. By putting pen to paper, students have the opportunity to express their feelings and make a difference in their community. “This initiative is more than a contest – it’s a movement that gives Canadian youth the ability to impact the lives of others,” says Peter Vukanovich, president and COO of Genworth Financial Canada. “Over the past two years, we have heard from thousands of students who will ultimately grow up to be more engaged, compassionate citizens. That’s what the Meaning of Home Contest is all about.” Genworth Financial Canada will donate $60,000 towards the building of a new Habitat for Humanity home in a community of the grand prize winner’s choosing. The grand prize winner will also win a home computer system. Five runner-ups will be chosen. The Meaning of Home Contest website at www.meaningofhome.ca has more information about the contest including instructions on how to participate, tips for parents on how to get the family engaged and a downloadable education module for teachers. The winner will be announced in January.
Service offers stats for Sunshine Coast in B.C. Sunshine Coast real estate agent Gary Little has released an Internet-based statistical service to present historical residential sales data for Gibsons, Roberts Creek, Sechelt, Halfmoon Bay, Pender Harbour and neighbouring areas. The statistics, shown in convenient chart form, are useful for quickly analysing the state of the residential real estate market in one of the most dynamic real estate markets in British Columbia. The charts are updated automatically on the first day of the month to reflect sales data reported through the end of the previous month. “No one, not even the local real estate board, provides monthly sales statistics so quickly to the general public,” says Little. He says an important feature of the statistical service is its dynamic and interactive nature. The standard set of charts show statistics for the entire Sunshine Coast. However, a form is provided on the website that can be used to specify a subset of this area for which charts are to be shown. Charts can be requested for specific towns, or for any arbitrary group of postal codes, and they will be shown within seconds of the request. “Buyers, sellers, and even other agents will find these charts useful for identifying price and unit sales trends on the Sunshine Coast,” says Little, an agent with Royal LePage Sunshine Coast. “And since the charts are created dynamically, activity in any specific sub-market can also be analysed very quickly.” To view the statistics, visit www.GaryLittle.ca/stats.html
Ryobi’s new line includes lock box, rechargeable battery Several new cordless tools from Ryobi will be of use to real estate professionals. The Tek4 cordless electronic tools feature a 4-volt Lithium-ion rechargeable battery that can outlast 6,000 AA alkaline batteries, the company says. The battery powers all Ryobi 4-volt tools. The family of Ryobi Tek4 Tools includes a Digital Key Lock Box, described as a “next-generation lock box (that) provides access to multiple people by holding up to
three household keys, flexible code settings for variable duration entry needs and the ability to track up to the last 10 codes entered. It is ideal for builders, sub-contractors, Realtors and homeowners sharing keys with service personnel.” Suggested retail price is $69.99. Another tool in the product line is the Portable Power Source, designed for those who need immediate back-up to charge electronics, including cell phones, Blackberries, iPods and MP3 players, at a suggested price of $19.99, not including battery and charger. There’s also a Professional Laser Distance Measure, with advanced features including continuous measurement mode for convenience, precision laser technology for accurate measurements (+/- 1/16” at 197’) and a digital display with backlight for an easy read. Suggested price is $159. The line also includes a digital camera designed for rugged use at jobsites, a high-density LED flashlight, a motion sensing alarm and more. The battery is priced at $12.99. Consumers can choose from two 4volt chargers. The Standard Charger charge time is three to
Ryobi’s Digital Key Lock Box
five hours and the price is $11.99. For $39.99, the Rapid Charger will charge two batteries simultaneously in 30 minutes. All the products are available now exclusively at Home Depot.
Three Ontario boards choose Filogix for MLS services The Kingston, Sault Ste. Marie and Timmins real estate boards have selected Filogix as their solution provider for their MLS services. “The longstanding relationship Filogix has had with boards like our neighbour Peterborough, gave us great comfort when securing this contract,” says Susan Swann, EO of the Kingston & Area Real Estate Association. Filogix real estate solutions offer comprehensive and customizable systems, the company says. It has been serving Canadian boards/associations and real estate professionals for 15 years, and has a 95 per cent client satisfaction rating and 100 per cent client retention, the company says. Joel Shears, director of business development, Filogix Real Estate division, says: “It is exciting to see more and more boards are realizing the advantage of working with an experienced Canadian vendor who understands the benefits they will enjoy with Filogix solutions.” Filogix just launched a new user-interface for Filogix DMS, an Internet-based technology solution for real estate boards/associations. It plans to add enhanced photo management, new mapping tools and additional prospector functionality. For further information: www.filogix.com. REM
The Laser Distance Measure provides accurate room measurements.
42 REM NOVEMBER 2009
Watch out for false energy claims
HOUSE WORKS
By Steve Maxwell ith winter just around the corner, you need to brace yourself for more than just cold blasts of arctic air. You also need to prepare for plenty of technical malarky masquerading as energy conservation science. Beware. Snake oil charlatans are vibrant and vigorous in the 21st century, and they’ve been given a new lease on life with our increasing interest in energy conservation. Here’s how a little knowledge of physics can protect you from sneaky sales pitches that promise energy savings that can never actually happen. The cost of heating your home depends on three things and three things only: how much heat escapes from your house, how much you pay for the energy entering your home, and what portion of the energy you buy actually translates into warm air. Of these three factors, the last one
W
– generically called “efficiency” – is used most often to fool people. A classic example of this funny business arrived in my shop for testing last fall. It was a new kind of electric heater that came with tall promises. Product packaging claimed this new device saves more than 70 per cent compared with conventional heaters, and strictly speaking, this is true – or at least half true. Yes, the new heater does consume substantially less power – 400 watts compared with 1,500 watts for standard heaters. But it also puts out correspondingly less heat. In fact, every single penny of electricity it does not consume is exactly proportional to the warm air it does not deliver. It’s like claiming that a new kind of bread has half the calories per slice, with a slice that’s half as big as normal. Where’s the gain in that? We’re so used to technical products becoming more efficient that we believe the possibility for efficiency gains exist everywhere. They don’t, and electric heaters are one example. They’re already 100 per cent efficient. Every last kilowatt hour of electricity you pay for is converted into heat by every single electric heater on the planet. Old or new, it doesn’t matter. Claims to the contrary are widespread and often based on bizarre technical fiction that sounds legitimate on the surface.
Beware of efficiency claims applied to electric heaters. With rising energy costs, it’s more and more common to find attractive product promises that simply don’t deliver. Photo: Steve Maxwell
Here’s how a little knowledge of physics can protect you from sneaky sales pitches that promise energy savings that can never actually happen. In the case of the miracle 400watt heater, the manufacturer claimed that because it was wallmounted, with a small space behind to allow air circulation upwards, the unit made you feel as warm as all the other 1,500 watt electric heaters on the planet.
Really? That’s quite a claim. I only wish it were as easy to circumvent the immutable laws of physics as it is to mount a heater an inch away from a wall. It simply makes no difference. The only heating systems that do deliver more apparent warmth
for a given unit of energy consumed are radiant in-floor heating designs, and that’s not because of some hocus-pocus techno magic. A warm floor simply makes your whole body feel somewhat warmer at a slightly lower room temperature. That’s it. So, what can you really do to lower your heating costs this winter? It comes back to the three fundamentals behind the issue: the amount of heat leaving your house, the cost of energy entering your house and the conversion efficiency of energy input to heat in the building. If you have particularly leaky windows, new ones will help a lot. Also, in almost all cases, the easiest, most cost-effective way to reduce heating costs is by blowing more loose-fill insulation into the attic. After work is done up there, do whatever it takes to seal that attic hatch against air leakage. Lots of warm air often gets lost through loose-fitting hatches. Not very glamorous stuff, I know, but when you’re tearing open your utility bill this coming February, glamour really isn’t what you’re looking for, is it? Steve Maxwell is Canada’s award-winning home improvement expert, and technical editor of Canadian Home Workshop magazine. Sign up for his free homeowner newsletter at www.stevemaxwell.ca REM
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News and Views from The Canadian Real Estate Association
you can contact us at info@crea.ca
CREA APPLAUDS CANADIAN CHAMBER OF COMMERCE’S DECISION TO SUPPORT UNLOCKING PROPERTY REINVESTMENT TAX DEFERRAL WOULD HELP DRIVE ECONOMIC GROWTH AND JOB CREATION
The Canadian Real Estate Association (CREA) welcomes the recent decision by the Canadian Chamber of Commerce to support tax deferral on income property reinvestment.
“As a respected voice for Canadian business, the Canadian Chamber’s backing builds additional momentum for tax deferral on property reinvestment,” says CREA’s president Dale Ripplinger. “There are income property owners all across Canada who refuse to sell because of the tax consequences. This impedes a chain reaction of economic stimulus, job creation and community redevelopment.”
At the beginning of October, delegates at the Chamber of Commerce’s AGM voted to support the deferral of the capital gains tax and recaptured capital cost allowance when the proceeds of sale are re-invested in another income property within one year.
Having the Canadian Chamber on board continues CREA’s stakeholder momentum, which has been building in recent months. The National Trade Contractors Coalition of Canada, the Canadian Construction Association, the Canadian Federation of Apartment Associations and REALpac – the Real Property Association of Canada – are also supportive of the reinvestment proposal.
This success is a national one, indicative of the strength of Boards, Associations and REALTORS® when they all work together to affect change.
NEW ECONOMIC STUDY UNDERSCORES NEED TO REMOVE TAX BARRIERS TO PROPERTY REINVESTMENT Tax policy discourages the sale of income property and impedes a chain reaction of economic stimulus and job creation – elements that could greatly contribute to a commercial real estate market recovery and community redevelopment. A new Altus Group economic study prepared for The Canadian Real Estate Association (CREA) found that income property sales generate sizeable economic activity in a number of industries, and support job creation.
The study estimates, between 2006 and 2008, the typical multi-unit residential income property transaction in the Greater Toronto Area, Greater Calgary Area and Greater Vancouver Area generated a total of $287,850 in ancillary spending. It also found that 53 jobs were created for every 100 transactions. “Income property sales generate a substantial amount of spin-off spending,” says Peter Norman, Senior Director, Altus Group. “They create opportunities for trades people in renovations and repairs; fees for professionals; income for industries that produce construction materials; and tax revenue for all levels of government.”
· ·
$287,850 in spin-off spending per income property transaction More than one job created for every two income property transactions
Unfortunately, many income property owners are reluctant to sell and reinvest because of the capital gains tax and recaptured capital cost allowance.
“The tax system provides a powerful incentive to retain income properties with large accumulated gains at the expense of more productive opportunities,” explains James McKellar of York University’s Schulich School of Business. “The consequences are underutilized, energy-inefficient and boarded up buildings across the country. It restricts work opportunities in redevelopment and impedes creation of additional rental housing in built-up areas.” “The tax system encourages us to hold onto our property,” according to George Kirkland Jr., an owner of a multi-unit residential property in St. John’s Newfoundland. “After paying the tax, we would not have enough money left to purchase a similarly valued property and realize the same level of income.”
The commercial real estate market deteriorated significantly in 2008, as a result of the global recession, and has yet to show signs of recovery. A recent
report by CB Richard Ellis Limited illustrates commercial real estate market transaction volumes declined by 51 percent, year-over-year, from $10 billion midway through 2008 to $4.9 billion midway through 2009. In the first half of 2009, the number of commercial real estate transactions also decreased sharply year-over-year, dropping 38 per cent to 1,569 at mid-year 2009 from 2,542 transactions at mid-year 2008. “Allowing tax deferral on income property reinvestment would provide a needed kick-start for the ailing commercial real estate market,” says CREA President Dale Ripplinger. “The spin-off activity from income property sales would help strengthen other sectors hard-hit by the economic downturn, and the resulting renovations and redevelopment would help revitalize communities across the country.”
The complete study from Altus Group Economic Consulting is available in PDF format at www.crea.ca or by sending an email to info@crea.ca.
44 REM NOVEMBER 2009
TA X C H AT & OTHER MATTERS
Year-end tax planning t’s been said many times…many ways…a failure to plan is a plan for F—-. Yes, another one of those nasty F words. A very small number of us do any kind of consistent financial planning and even fewer among us do any tax planning. Most of us, when asked what we do to minimize taxes respond with, “Oh, yeah! Tax planning. I have an RRSP.” There is quite a bit more you
I
By Michel Chevalier
can do if you take the time to educate yourself and then actually carry through and implement some of what you learn. This brings me to one of my pet peeves, which I will take some space to talk about as there is too much to cover on the subject of year-end tax planning to fit in a single column. I have made additional information available on my website at www.taxaction.net. Consumer debt is growing; bankruptcies have soared 54.3 per cent over the past year with those in the know saying this would have happened with or without the recession; and, most disturbing, is the fact that debt is becoming a serious problem among young Canadians, with a growing number approaching Credit Canada with levels of student debt and credit card debt that are out of control. I think we are a nation of financial illiterates and that we should long since have put in place some basic levels of financial education in our schools. The good news is that something is being done. The federal government has set up the Task Force on Financial Literacy…so the problem at least has received official recognition. Federal task forces, however, are notoriously ponderous and often don’t amount to much. If anybody is interested in lending a push to this effort, please drop me an email. I would like to encourage all the provincial education ministers to actively participate on the Task Force. Okay, let’s turn to what tax planning you can do at the end of the year. If you are one of the many who wait until April 30th, I would liken this to you having ‘hit the wall.’ In terms of tax planning…it ain’t, and you are more than likely letting Canada Revenue Agency (CRA) get away with more of your money than is necessary. At the other end of the spectrum, most of us don’t need to tax plan weekly or monthly. Quarterly is pretty good and for sure you should pause and review things from a tax standpoint June 30 and then again during the last quarter. There is still time to have a sig-
nificant impact on your tax situation over the course of the last two months of the year. I have prepared a list, by no means exhaustive, of some of the things to keep in mind that might make sense for you. You will find more detail at my website. I suggest that you pull the last couple of years’ tax returns out of the archives and sit down with your tax or financial advisor now. Make some decisions about what you should do before December 31 to reduce the amount of tax you owe. Personal tax planning – some things to consider: • Capital gains – Depending on your situation, you should look to see if you should be doing some ‘tax-loss’ selling. • Carrying/interest charges – If you have borrowed to invest, then the carrying charges are deductible; borrowed funds must have been used to acquire incomegenerating assets. • Medical expenses – Expenses paid in any 12-month period ending in the calendar year generate tax credits to the extent they exceed the lesser of three per cent of your net income, or $1,962. • Donations and charitable gifts – Generally, you can claim up to a limit of 75 per cent of your net income. Donations must be made by December 31. • Political donations – Federally, the maximum credit is $650, which is reached at $1,275 of contributions. • Moving expenses – Are deductible from employment income earned at the new work location. • Child care expenses – Are deductible by the spouse with the lower income regardless of who paid them. • Tuition fees – Only post-secondary tuition fees are deductible and only by the student; if the student cannot use full amount, they can be carried forward or transferred to a spouse, parent or grandparent. • Interest on student loans – Are deductible but only by the student. • Tax-free savings account – If you haven’t yet, you should give serious consideration to opening a
TFSA account. • RRSP contribution – The maximum contribution is $21,000 for 2009; deadline is March 1, 2010. • Tax shelters – They are risky and many have been and continue to be challenged by CRA with some success. I suggest avoiding them unless you have a high tolerance for risk. Here are some tax planning considerations for the selfemployed and small business owners: • Medical benefit plan premiums – Are deductible for selfemployed people and owners of incorporated small businesses. • Income splitting – You can deduct reasonable payments for services rendered by family members with an emphasis on reasonable. Investment income can be split but this can be complicated and calls for careful planning and guidance. • Purchase of capital assets – If you need to purchase a capital asset such as a vehicle or a computer for your business, buy it before yearend to take advantage of the tax deduction. Again, this is a basic list and some of the items mentioned have complexities, so get advice on how they best fit into your financial life. There are a number of other things that might make sense given your particular financial situation. I strongly urge you to check now so that you can implement what makes sense for you before the end of the year. It will be too late after that. Michel Chevalier has many years of business experience combining over 20 years managing multiple trade associations representing several dozen industries; building his own small business from the ground up and more recently as a consultant specializing in helping individuals and small business significantly reduce taxes by implementing legal business strategies. He also represents clients in audit and other difficult situations with Canada Revenue Agency. Email: michel@mcchevalier.com; www.taxaction.net REM
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Assist-2-Sell franchise owners say low-commission-plus-full-service approach wins business and meets challenges of real estate's future. Written by: Marcie Geffner freelance real estate reporter, writer and blogger
Lyle and Sandy Longridge were no different from countless other real estate agents who sell property across Canada. That is, until last August, when the dynamic husband-and-wife duo decided to open up the country's newest Assist-2-Sell® franchise. Their new company, in New Westminster, B.C., opened for business in October, and today, Sandy Longridge calls the couple's choice "the most exciting and fulfilling" decision of their careers. "We wanted to run our own show and be our own boss," she says. "We wanted to do something that we could believe in." The Longridges settled on Assist-2-Sell after almost a year of research because they admired the company's business model, which is built around giving home sellers and buyers exactly what they want in today's housing markets: Flexible commissions and superior service. "Real estate is changing," says Lyle Longridge. "The traditional model is not going to survive in the same form as it is now. Assist-2-Sell is a great way for us to position ourselves for that future and those changes." Assist-2-Sell's mission is to provide home sellers substantial savings and professional reliable representation throughout the homeselling process. Owning a franchise offers real estate professionals an opportunity to start and run their own business, effectively manage a significant volume of transactions and still provide the full service that sellers and buyers want and need. Assist-2-Sell: "Best Model in the Business" Many brokers are understandably leery of discount companies that offer home sellers lower costs and less service. But the Longridges discovered that Assist-2-Sell takes a radically different and far superior approach to the conundrum of lower commissions and better service. "The Assist-2-Sell full-service, low-fee commission structure is a big deal," Sandy Longridge explains. "It opens up options for home sellers. They're impressed because they have choices and love that it is not do-ityourself." The Longridges liked the fact that Assist-2-Sell isn't just about low commissions: It's also about good service. While the company's commission model can attract more business and assure significant discounts for home sellers, full service is still the key to the company's success. "For example, sellers like being kept in the loop," his wife adds. "Assist-2-Sell has a million and one great ways to keep people up-to-date, and it's not just at the beginning of the transaction and the end, but all the way through the entire process."
Mayor Wayne Wright cuts banner and welcomes new Assist-2-Sell office to New Westminster. Assist-2-Sell Begins With Fresh Approach Assist-2-Sell was founded in 1987, when Mary LaMeres and Lyle Martin left a traditional real estate brokerage behind in search of a better way for consumers to sell their homes. They developed an innovative model that gives sellers all of the services they need, along with a low flat fee. They soon discovered that the model also had strong appeal for home buyers, who appreciated the large selection of competitively priced homes offered through Assist-2-Sell s exclusive home listings database in addition to MLS listings. The response to this consumer-friendly model was immediate and significant. Since LaMeres and Martin opened the first office in Reno, Nevada, Assist-2-Sell has grown to more than 400 franchise offices in 44 U.S. states and six Canadian provinces. Over the years, Assist-2-Sell has been recognized as one of the fastest-growing and most successful real estate franchises, a testament to the efficacy of the low-fee, full-service real estate service model. The model is even featured in the company's business-winning slogan: "Results with Savings!"® Their track record of growth and success really impressed Lyle and Sandy Longridge. "We tried hard to poke holes in the Assist-2-Sell model, but we couldn't find any," Lyle Longridge explains. "We really thought Assist-2-Sell was the best model in the business because it gives people a break on the commission without compromising service."
"We've seen so many problems with other discount agencies," Sandy Longridge adds. "Assist-2-Sell has taken the good qualities of the discount model and the good qualities of the traditional model and put them together. It's a model we believe in and feel really positive about." Brokers Learn Secrets of Success LaMeres and Martin continue to play a vital role in Assist-2-Sell's success and growth. Nearly every month, they personally train new franchise owners who travel to the corporate headquarters in Reno, Nevada. They continue to teach these training classes because they love sharing their ideas, methods and experiences, and they enjoy being part of each new franchisee's success. Lyle and Sandy Longridge recall their trip to Reno with great enthusiasm. "We got a ton of tips that we've used in our business," Sandy Longridge says. "We picked up a lot of ideas from Mary and Lyle in the class that you can't get through reading a book. It comes from their experience of what works and what doesn't." That experience continues to shape LaMeres' and Martin's efforts to make the Assist-2-Sell model even better and even more responsive to the needs of today's home buyers and sellers. "You can spend thousands of dollars just to find out what doesn't work," Lyle Longridge says. "But they've already adjusted the Assist-2-Sell model, worked out the kinks
and shown us what works. We bought into their plan and everything that came with it." Assist-2-Sell Model Works in Canada Assist-2-Sell first came to the Longridges' attention when a franchise office opened in nearby White Rock, BC and quickly won a significant number of listings throughout the area. "We were nervous about a discounter coming into our market and taking our business," Lyle Longridge recalls. "But then we looked at the model, and we couldn't find any flaws in it." "If you can't beat 'em, join 'em," Sandy Longridge chimes in with a laugh. "The owners of the White Rock franchise have been generous with their support and advice on how to apply the Assist-2-Sell model to the Canadian market," she adds. "We talked to other Assist-2-Sell brokers in the U.S. and Canada," she says. "They are all very supportive. You really are part of a team!" The Longridges say they weren't concerned about the fact that Assist-2-Sell is based in the U.S. The company is well-established and has offices in Canada that are doing well. The Longridges are so committed to Assist-2-Sell that they've purchased the building that houses their new office, he adds. "We plan to be here for a long time."
For information on franchise opportunities, call 800-528-7816 or visit BuyAssist2Sell.com.
46 REM NOVEMBER 2009
Sandra Diaz, executive director, Royal LePage Shelter Foundation and CHFI’s Erin Davis at the 3rd Annual Shelter Gala.
Good Works R
ecently Coldwell Banker Peter Benninger Realty presented a new educational Fire Safety House to the Waterloo and Kitchener Fire Departments. The 38-foot Fire Safety House is built to mimic the inside of a residence including bedroom, kitchen and living area. Visitors to the house will learn how to react to simulated emergency situations including fire with imitation smoke, severe storms complete with TV warnings, lightning effects and roaring thunder as well as tornado and carbon monoxide crises. The unit has the capacity for approximately 30 students, depending on age, and because of its multiple room concept, is able to run two separate teaching programs simultaneously. It’s the second generation of the unit. The original house was used for more than 100,000 stu-
dents at schools, malls and the Children’s Safety Village between 1993 and 2008. Peter Benninger, president and broker of record for Coldwell Banker Peter Benninger Realty, has been recognized for using his personal and professional influence to move the importance of fire safety to the forefront. “During a high stress incident, panic can take over making it difficult to calmly assess the situation and make the right choices,” says Benninger. “The hands on, realistic training provided in the Fire Safety House gives individuals the knowledge, experience and confidence to quickly evaluate dangers and make practical decisions based on techniques taught to them by a fire safety professional.” The company has published seven editions of the Kitchener Waterloo Street Map and Service Guide to help fund the Fire
Jill Sinclair poses with the raffled-off car.
Desiree McLean and friends.
Glen Seymour (right) entertains at the barbecue.
The Mississauga Real Estate Board (MREB) held its 3rd Annual Paul Coughlin Memorial Golf Classic in June. The event raised $12,000 for charities including RealtorsCare, Victim Services of Peel and the Paul Coughlin Fund of the Community Foundation of Mississauga. Over the past three years MREB has raised $70,000 for local, shelter-based charities.
Recently Daryl King and the King Team from Royal LePage Your Community Realty in Richmond Hill, Ont. participated in the annual Big Bike for Heart & Stroke to support the Heart & Stroke Foundation of Ontario. The ride started at the Hillcrest Mall, and then riders pedaled along 16th Avenue on a custom built 30seat Big Bike. The riders have raised $4,000 this year.
At the Fire Safety House presentation, from left: Fire Chief John deHooge, Waterloo Fire Rescue; Peter Benninger, president and broker of record, Coldwell Banker Peter Benninger Realty; Peter Kritz, operations manager, Coldwell Banker Peter Benninger Realty; and Fire Chief Tim Beckett, Kitchener Fire Department. (Photo courtesy of Tomasz Adamski Photography)
REM NOVEMBER 2009 47
Safety Houses and accompanying van, as well as two training vehicles used by fire safety officers to carry equipment to and from their public education and awareness events. Proceeds have also been used to supply two portable fire extinguisher training units to the Kitchener and Waterloo Fire Departments and create the Kitchen Fire Simulator, a visually stunning simulator that is used for live demonstrations throughout the region. Many sales reps and brokers took part in the Blitz Build with Habitat for Humanity in St. Albert, Alta.
John Bedard, right, Niagara Association of Realtors Realty Watch representative and member of the Public Relations Committee, presents Stu Black, executive director of Crime Stoppers Niagara, with a cheque for $500. Realtors have been instrumental in assisting the program in locating missing persons in distress on three occasions in the past few years.
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This summer, Sutton Group Premier Realty in Ottawa helped support the First Annual Innovative Community Support Services (ICSS) Golf Tournament. The event raised over $10,000 for ICSS, which provides families and individuals with innovative, high-quality and cost-effective communitybased programs and services that promote a strong sense of well being. The goal is to help people move out of the hospital and to develop skills for living in the community. Sales rep John Baron has been an active board member with ICSS for more than four years. “My work with the ICSS allows me to give back to the community. I also like that 100 per cent of the money we raise goes directly to the cause,” he says. He says it is an organization that makes a direct impact on those with disabilities, by allowing them the opportunity to participate in social outings, when the cost is not covered by government. ■ ■ ■
Robert Baron, his wife Gisele Baron, Kathy Bird and Sutton Group – Premier sales rep John Baron enjoy the ICSS golf tournament, which raised more than $10,000.
Passion for the cause was palpable as more than 400 real estate agents and business professionals opened their hearts and wallets at the 3rd Annual Royal LePage Shelter Gala. The event broke last year’s fundraising records by 40 per cent, raising close to $80,000 in support of women’s shelters and violence prevention and education programs throughout Canada. CHFI’s Erin Davis entertained the crowd in between sets of the 14-member band Community Soul Project. Guests tried their luck at winning a
variety of live and silent auction items including a trip to Paris and a chance to dine with Royal LePage Real Estate Services’ president and CEO Phil Soper. All guests rose to their feet applauding after Rose, a survivor of domestic violence, courageously shared her story of survival. After 13 years of living with abuse, she slept through the night for the first time at a women’s shelter. Six months later Rose used an interest-free loan to move out on her own with her three children. She credits the Royal LePage Shelter Foundation with saving her life. ■ ■ ■
Desiree McLean of Sutton Group - West Coast Realty in Langley, B.C. is an animal lover and has two cats and two dogs. “I have always had big dreams of contributing to benefit animal welfare,” she says. Recently she contributed by walking in the Paws for a Cause event hosted by the BCSPCA, to raise awareness and funds to help the BCSPCA care for animals in need in the community. McLean organized a “pack” with four teammates walking with their dogs. In January she used www.meetup.com to network with other dog owners in her area. She plans events for the group of dog owners and canines, such as time at the dog park together and dog pool parties. Having the dogs socialize results in encouraging less aggressive behaviour in the dogs, she says. ■ ■ ■
The Realtors Community Foundation Edmonton Area recently led a Blitz Build with Habitat for Humanity in St. Albert. The project was to build a duplex for two families who required affordable housing. A group from Sutton Group – NorVista Realty contributed over 230 volunteer hours. James Mabey, broker at Sutton Group – Nor-Vista Realty and coordinator for his office says, “These families have gone through an application process and have contributed a required 500 hours in labour, in order to be approved for their new home. The program allows families, who otherwise could not afford a down
payment on a home, a chance to have one. “This was a fantastic opportunity for Realtors to work together for the community,” Mabey says. ■ ■ ■
At the Royal LePage HeadStart Conference recently in Penticton, B.C., the Royal LePage Shelter Foundation Auction, combined with other smaller fundraising initiatives hosted by individual agents or offices, raised more than $57,000 for shelters across Canada. ■ ■ ■
Jill Sinclair of Sutton Group West Coast Realty in Langley, B.C. recently helped raise more than $35,000 for Touchstone Family Association, a non-profit community-based social service agency that has been providing services to the city of Richmond and nearby areas since 1983. Its services primarily focus on preserving and enhancing family relationships. This year the association raffled off a Mini Cooper S donated by Mini Richmond. Sinclair, known as the Hotrod Realtor because of her love of cars, took the prize to several car events over the summer, selling tickets. “I have seen the work Touchstone has done. The work they do is phenomenal,” she says. Sinclair has served on the Board of Directors for Touchstone for five years. ■ ■ ■
Glen Seymour of Sutton Group - Medallion Realty in Surrey, B.C., organized and hosted the first annual Glen “seemore” Results barbecue this summer. He planned the event as a way to raise money for the Canadian Cancer Society. Seymour had a team of five volunteers who grilled 100 salmon over the course of the afternoon, raising $3,005. The local fire department made an appearance with their fire engine in support of Seymour and his team. Kids took the opportunity to climb on the fire truck, jump around in the bouncy castle onsite and spin the prize wheel. There was also a silent auction as part of the afternoon’s festivities. REM
48 REM NOVEMBER 2009
Industrial, Commercial & Investment Vacancy, tenant stability key concerns for landlords
MARKETPLACE
Tenants’ financial stability and increasing vacancy rates are the two major concerns keeping Canadian institutional commercial-property investors awake at night, says a survey conducted by Colliers International. “Landlords are really concerned about tenant stability and the time it might potentially take to lease up vacant space in their assets,” says David Bowden, Canadian president at Colliers International. “As a result we are seeing landlords aggressively trying to retain good quality existing tenants by engaging their tenants in negotiations sooner and remaining flexible on rents in an effort to secure longer term leases.”
The survey of 30 institutional investors across Canada also found: • Ninety-two per cent of respondents ranked ‘tenant financial credit rating’ among the top two most important factors when making a leasing decision. This is in comparison to only a third (33 per cent of respondents who would have ranked it so highly in 2007. • Investors remain the most optimistic about Ottawa and Vancouver markets, but had concerns about Calgary’s oversupply. • Two-thirds of survey participants (67 per cent) said they would pay between three to seven per cent premium for green credentialed buildings. • Three-quarters of investors surveyed expect values to increase by less than five per cent over the next 12 months, yet more than half still expect to grow their over-
all property holdings over the same time frame. “If you look back over the past year, some experts believed we were entering a depression, not a recession. Fear was really ruling the market,” says Scott Addison, executive managing director at Colliers International in Toronto. “Looking forward, the industry’s highest expectations won’t be achieved, but its worst fears won’t be realized either.” Addison also identifies a window of opportunity for tenants, as the general economy shows signs of improvement. “The real estate market typically lags behind the general economy anywhere from six to 12 months,” says Addison. “As a result, tenants are in the position to strike some good deals. The optimal time to renegotiate or seek out real estate solutions will be in the next 12 months, a negotiating leverage that may disappear quickly.”
REALpac launches 20 by ’15 energy consumption target The Real Property Association of Canada (REALpac) has launched 20 by ’15, a national
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energy consumption target for office buildings that it says is one of the most aggressive office building energy performance targets in the world. If achieved, the target would make the commercial office building sector in Canada a leader in conservation efforts, says the association. The goal of REALpac’s initiative is to achieve the target of 20 equivalent kilowatt hours of total energy use per square foot of rentable area per year (20 ekWh/ft(2)/year) in office buildings by the year 2015. The target is intended as an essential first step in demonstrating substantial, sectorwide emissions reductions and operating cost savings, while taking full advantage of incentives and getting in front of potential regulations, says REALpac. Achieving the target would lower median energy use for commercial office and government office buildings by 49 per cent and 31 per cent respectively. Michael Brooks, CEO of REALpac, says, “The 20 by ’15 target is only slightly better than some of the best office buildings in the benchmarking study, but is half the consumption level of the median, and a third of the consumption level of
the worst-performing office buildings in Canada. Even the top-performing office buildings have room to improve. The 20 by ’15 target is achievable.” BOMA BESt is BOMA Canada’s proprietary measurement, monitoring and training program that fosters and recognizes improvements in environmental performance and management. The soon-to-be released BOMA BESt Energy and Environmental Report, based on independently verified data, indicates that BOMA BESt certified buildings are already well on their way to reaching the 20 by ’15 target. BOMA BESt buildings must attain a further average reduction of 37 per cent in energy consumption to meet the new target, which is achievable through improved management practices and innovation. According to the 20 by ’15 Research Report, the use of more efficient technology does not necessarily achieve good (best) performance – attention to system design and standards are equally as important. Effective office building operations and the engagement of tenants are essential to high perforContinued on page 50
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REM NOVEMBER 2009 49
Trade Shows and Conferences For complete listings, visit www.remonline.com To add a listing to this calendar, email jim@remonline.com Ottawa Real Estate Board Trade Show Thursday, Oct. 29 Centurion Conference Centre Ottawa Wilda Brown – wilda@oreb.ca Royal LePage National Brokers’ Conference November 1 - 4 Paradise Island, Bahamas www.royallepageevents.ca Veronica Love-Alexander veronica@royallepage.ca (416) 510-5726 The Peak Experience Re/Max 26th Annual Canadian Conference November 5 – 7 Fairmont Banff Springs Banff, Alta. www.remax-western.ca/banff/ National Association of Realtors 2009 Realtors Conference & Expo November 13 - 16 San Diego, Calif. www.realtor.org Royal LePage Reception at NAR Conference Saturday, Nov. 14 San Diego Marriott Hotel & Marina San Diego, Calif. Sharon Promm – sharonpromm@royallepage.ca
Canadian Association of Accredited Mortgage Professionals Blueprint for the Future conference and trade show November 22 – 24 Metro Toronto Convention Centre Toronto http://www.mortgageconference.ca/ Mississauga Real Estate Board Election Meeting and Trade Show Wednesday, Nov. 25 Capital Banquet Centre Mississauga, Ont. Gay Napper – (905) 608-6732 Construct Canada Trade Show December 2 - 4 Toronto Metro Convention Centre Canada’s largest annual show for building and housing design, construction, renovation and property management www.constructcanada.com La Capitale Real Estate Network Annual Performance Gala Saturday, Feb. 6, 2010 Sheraton Centre Montreal France Massé – fmasse@lacapitalevendu.com
Compiled with the assistance of Bob Campbell at Colour Tech Marketing, www.colourtech.com
50 REM NOVEMBER 2009
THE PUBLISHER’S PAGE
Aventure Realty Network ™
By Heino Molls
I
creating Canada’s network of leading independent brokers
www.aventurerealty.ca
would like to say thank you to a few folks who responded to the column in REM’s last issue. I had written about the idea of paying Realtors a retainer up front for their professional services along with a negotiated commission. It is good to hear from people who want to talk about innovation in the real estate industry. Regardless of what the idea is or even how far fetched the concept might be, it is great to hear from people who care about this business. I am sad to say, however, you are one of only a few. The heartfelt issues some put forward may be very worthy but they need support. That support can only come from fellow Realtors. The lack of support does not lie with your real estate board or association. I can tell you exactly where the fault lies. There are two people in the industry who are to blame. You are not one of them. I will tell you who they are in a moment. First, let me identify why new ideas are not efficiently embraced in the real estate business. It is apathy. The indifference in this industry is blatant and shocking. There are simply not enough people who care enough to add their names, let alone their voices, to any changes no matter how positive. Don’t blame your real estate boards and associations for not taking on new ideas and innovation. The professional real estate industry you belong to is about as perfect as you could ask for. It works beautifully. It works directly for you. Any member of a real estate board or association, anyone at all, can step up and be on a committee that talks about new ideas and proposals. Anyone can be president, too. Elections are held regularly and they are always done fairly, no matter what the negative folks tell you. It all works. The mechanics are in
New ideas and change place. There just aren’t enough people who show up to support these committees, let alone serve on them. I am aware of real estate board elections when the boards are lucky to have one quarter of the folks eligible to vote show up to cast a ballot. Your real estate board is directly responsible to you and all the Realtors in your community. If enough Realtors were to ask for change in the profession, I promise you the board and your provincial association would step up for you so fast it would make your head spin. They would fight for you. They would take on anybody: any industry group, any government, any consumer group. Anybody you have a legitimate concern with, your real estate board and association will take your side. They will take on all comers and all issues vigorously and tenaciously, if enough people care to voice their concern. The bottom line sadly is that there are not enough people in this industry that give a crap. It seems that only a few souls ever step forward for the good of this industry. Time and time again over all the years I have worked in this business, I have watched government steam-roll all kinds of concerns that this industry cares about. Property rights, municipal taxes, GST on real estate commissions
IC&I Continued from page 48
mance, and in combination they are expected to provide at least half of the projected improvement. There is no apparent correlation between the age of an office building and energy performance, and even top-performing office buildings have significant room to improve. The REALpac target can be reached, and median energy use level for the commercial and government office sectors reduced by up to one half, simply by consistently practicing what we already know how to do, says the association.
and related expenses, FINTRAC, the list goes on and on. Your board and association stood up for you on every issue. Every time there was a fight they showed up for you. But there were very few people backing them up. Not much support from the grass roots. Where were all the Realtors? Don’t tell me, I know, I know. They were busy. Can you imagine if one out of every 10 Realtors in Canada added their voice to the initiatives that CREA put forward? That would be 10,000 professional licensed business men and women. How fast do you think that would get the attention of the government? I would say about the same as the speed of light. But I don’t remember a time in over 30 years when even half that many Realtors ever showed up or collectively voiced their concern on any issue. So don’t blame your board or your provincial association or CREA. There are two people to blame. I cannot print their names here because of liable laws. But I can point them out to you. The next time you are at a sales meeting or a gathering of people in your office, look at the person on your left and look at the person on your right. That’s who is to blame. Heino Molls is publisher of REM. heino@remonline.com. REM
GE Capital gets BOMA BESt status At 25 properties Twenty-five Canadian properties owned by GE Capital Real Estate have achieved the Building and Owners Manager Association of Canada’s BOMA BESt certification. In Toronto, these include 2 St. Clair Ave. E., 30 St. Clair Ave. W. and 21 St. Clair Ave. E., where waste diversion increased by between 10.8 per cent and 16.3 per cent. Recycling programs at these assets ensure that of the 36 tonnes of waste generated monthly, only 3.8 tonnes ends up in a landfill. REM
Helping homeowners through difficult times
From time to time your customers may experience temporary financial setbacks. Financial difficulties can happen at any time, not just when the economy is weak. A serious illness, marital separation, or the loss of employment are just some of the reasons a customer may be faced with a financial challenge. No matter what the situation, the Genworth Financial Homeowner Assistance Program is a proven method for helping more families stay in their homes. Visit www.genworth.ca to learn more.
Š 2009 Genworth Financial