October 2017

Issue #340

October 2017

Why giving back is part of the business Page 3

Rent-to-own deserves better Page 30

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

See pages 10, 24, 28 and 32

Christopher Alexander Continues family legacy at Re/Max Page 8

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3 REM OCTOBER 2017

Giving back: It’s part of the business

CREA reports that from 2012 to 2015, the real estate community raised and donated $91.2 million for charity. Here are some of the ways real estate professionals are giving back to their communities. By Toby Welch

I

t’s official. Real estate salespeople are a giving group of people.

champions. Also, it makes my work more fulfilling by utilizing my background in community development.”

CREA reports that from 2012 to 2015, the real estate community raised and donated $91.2 million for charity. This number is likely lower than the true figure as some agents don’t publicize the contributions they make. The real estate community in Canada is generous.

Ted Cawkwell, an agriculture specialist with Re/Max Saskatoon, gives to a charity of his client’s choice on behalf of every buyer and seller who closes a transaction with him (he gives them four to pick from.) Cawkwell also gives a separate donation to the Children’s Hospital Foundation for every transaction that he closes, attaining the ‘Miracle Worker’ status last year for his contributions. A firm believer in karma and grateful that he makes a living doing something he is passionate about, Cawkwell gives back because it makes him happy to help others and he feels it is the right thing to do as a human being.

“There is no large advantage from a business perspective but that is not why I give back,” says Cawkwell. “My hope is that some people may choose to work with me rather than another agent that is not as involved with charity but in reality, we do not notice a lot of extra business because of this. We like to lead by example and encourage other agents to give back to the charities in their communities. The greatest advantage is knowing that I am making a difference to children and people in need. If we all give a little, it goes a long way.”

Mentioning your charitable involvement in your literature and on your social media channels

Ted Cawkwell

Jill Hann

Marla Marnoch

is a win-win situation. You will attract people that believe social responsibility should be a priority.

At the same time, you will be shining a spotlight on charities that you want to support. Another added benefit is that you may inspire someone else to make a difference, too. Everyone comes out on top!

make time to help others as well as the community as a whole. It’s like a snowball effect every time I do something for my community.

It’s appreciated and makes others want to give more, too, and we all get to experience the generosity of our community together, whether that’s supporting local events, local business, or just each other.”

Jill Hann, a real estate agent and certified home stager

In 2015, Hann decided to use the annual Movember campaign

But the Movember campaign was about more than increasing exposure for Hann’s real estate business. Her grandfather died of prostate cancer in 2011 and she wanted to do something to recognize him. Hann says, “The Movember campaign was truly successful at both gaining exposure for the cause and for the properties I had for sale.”

Marla

Marnoch,

a

sales

“Don’t just send a cheque ... challenge yourself and actually ...”

with the Jill Hann Real Estate Experts team with Royal LePage Atlantic in Halifax, is known for her giving spirit. “The greatest advantage to being an agent that gives back to the community is just that – giving back,” she says.

“I’m so proud of the community I represent and come from and I feel so lucky to be part of it. It’s full of beautiful oceanfront and lakeside landscapes and the people are just as beautiful. These are hardworking neighbours who always

to increase exposure for her listings; it was a slow time in the Halifax real estate market and there was an oversupply of homes for sale. Hann challenged Haligonians to take a selfie in front of her Movember for sale signs and upload the photos to her Facebook page. For each uploaded photo, Hann donated two dollars to Prostate Cancer Canada and each person who participated was entered into a draw for $100 at the end of November.

representative with Streetcity Realty in London, Ont., focuses on social impact real estate. Marnoch started the Earmark initiative, which involves donating 20 per cent of her commissions to “change makers” or charities in the London area. The clients get to chose who the donation goes to and an investment is made to the community. Marnoch says, “I get to see the impact that each donation makes when it’s put it in hands of community

Earmarking commissions for community good has had a side benefit of garnering Marnoch more clients. “It attracts clients that share my passion for community building and creates opportunities for authentic relationships to develop. But first and foremost, clients need to buy or sell a home. They must have confidence in me as an agent first – only then does the added bonus of giving back come into play.”

You don’t have to donate a part of your commission to give back; actions can have a deep and lasting impact. Cawkwell, for example, hosts a free children’s fishing event for about 1,000 people each year. Everything is free – transportation, parking, fishing passes, food, tackle, rods and bait. It is one of the largest outdoor children’s events in Saskatoon. He started the event 11 years ago to implement positive outdoor experiences for Saskatoon’s children. Another example is three agents who went on a 100-km charity hike in Iceland in July to support the Royal LePage Shelter Foundation.

In an interview before they left, one of the women stated that while raising funds is important, raising awareness about domestic violence and the need for shelters is crucial.

Another sales rep who wanted to remain anonymous shared his tips on being philanthropic in the real estate business: “Instead of giving a little to a lot of charities, pick one or two you feel strongly about and support them. Don’t just send a cheque. Challenge yourself and actually get involved.” REM

4 REM OCTOBER 2017

Multiple Listings

By Jim Adair, REM Editor

Do you have news to share with Canada’s real estate community?

Let REM know about it! Email: jim@remonline.com

R

oyal LePage Scharf Realty in Waterloo, Ont. has merged with Royal LePage Wolle Realty of Kitchener.

The merged brokerage will operate under the Royal LePage Wolle banner, which is owned by Mark Wolle. Ted Scharf will manage his team of 30 agents, who will temporarily call the Kitchener location home until the new location in Waterloo is operational later this year.

Scharf Realty, like Wolle Realty, was originally established as an independent brokerage.

Scharf’s real estate career spans 40 years. He joined the Royal LePage

network 19 years ago. Wolle Realty was established in 1977 by Dieter Wolle. The brokerage joined Royal LePage in 2000.

Mark Wolle took over from his father in 2011 after 14 years in the business, including serving as the office manager.

The brokerage now has 103 sales reps.

■ ■ ■

Dennis Lozinski, long-time owner of Century 21 Advanced Realty in Winnipeg, has welcomed James Mariano and Geoff and Regan Archambault as co-owners of the franchise. He says they all

bring different strengths to the brokerage.

“I had been looking for the right transition for some time and planted the seed with my new coowners a while ago,” Lozinski says.

“As it turned out, things timed out perfectly for the change.”

Mariano has been in the real estate industry for 10 years. He ran a successful team and obtained his broker’s license two years ago.

Geoff Archambault has known Lozinski for 25 years and they’ve worked together at the brokerage for 16 years. Geoff and his wife Regan bring market expertise and a long-standing commitment to being involved in the community.

“That’s something we know will continue. Century 21 Advanced Realty has a history of supporting Easter Seals and several other local and national charities. We feel strongly that it is an important part of our business,” says Geoff.

■ ■ ■

Ted Scharf

Melissa Mummery

Mark Wolle

Coldwell Banker recently named two Canadians to its 2017 Coldwell Banker Social Squad.

Melissa Mummery of Coldwell Banker Coastline Realty in Port Dover, Ont. and Nathan

Morrissette of Coldwell Banker Momentum Realty in St. Catharines, Ont. will contribute to the company’s official blog.

They will be posting news throughout the year, including real-time updates during the Generation Blue Experience at the MGM Grand in Las Vegas Oct. 17 - 19.

■ ■ ■

Richard Gallagher is now the broker/owner of Century 21 Champ Realty in Kingston, Ont. He has been with the brokerage since early 2017 and will slowly take over from long-time owner Gregory Enright.

“I want to build a culture where sales representatives are collaborative and provide support to each other,” says Gallagher. “This positive environment will lead to greater client satisfaction and therefore greater success for the agents. This will require selecting the right team and growing it carefully. I am excited to start the process.”

■ ■ ■

Online real estate platform Casalova recently opened a new office in Vancouver, marking its first expansion in Canada. The company, which has been operating in Toronto since November 2014, says it “sees great potential and demand for a new approach to traditional real estate in the Vancouver market.”

Casalova allows potential buyers to purchase or rent via their

Nathan Morrissette Richard Gallagher

Ron Fiell

computers. Tenants and buyers search for properties, schedule viewings, make offers and process payments directly through the platform.

Lex Sheng will run the new office. He is a trilingual sales rep, real estate coach and trainer who has over 24 years of experience in real estate investment and 15 years in sales and marketing, the company says. He has closed over $400 million in real estate transactions worldwide and was a member of Re/Max’s top real estate team for Western Canada prior to working at Zolo Realty.

■ ■ ■

JLL is now offering property management services in Canada.

The Canadian team will help owners and investors to reduce risk, operating costs and occupant turnover by applying “global best practices, proven engineering capabilities and the latest technology tools in property management,” the company says.

“Along with our highly collaborative culture, our clients will benefit from lower operating costs and increased asset value,” says Ron Fiell, vice president of JLL’s Property Management Group, who will lead the group from his base in Calgary. “The property management industry is highly competitive and JLL’s management platform offers a level of service and customization that many national and regional firms cannot.”

■ ■ ■

Aztec Real Estate of Strathmore, Alta. recently joined the Royal LePage network.

The brokerage was established in 1993 by Keith Garrioch, building on his experience as a developer within the community, which is about 50 km east of Calgary.

Robert Desjardins joined Aztec in 2003 and became a partner two years later. Together, they built a business based on a “clients first” philosophy.

■ ■ ■

Century 21 Lakeland Real Estate in Lac La Biche, Alta. is under new ownership. Robert Richard has been in business in the community for decades and is now turning his attention to real estate.

Lex Sheng, left, and Ray Jaff, CEO and founder of Casalova

Keith Garrioch

Robert Desjardins

Continued on page 6

6 REM OCTOBER 2017

Continued from page 4

One of the challenges Richard sees in the market right now is that the region is heavily impacted by the oil downturn and the aftermath of the Fort McMurray wildfire. He says that is giving him time to analyze the business and develop a strategy for moving forward.

“Right now, I have five agents at Century 21 Lakeland Real Estate. I have one more joining the team in September and after that I will consider a growth strategy.

There are some nearby markets that I think the business could expand to and see success.”

agents as well.”

Ali has been an agent for more than four years. He also spent seven years in the mortgage industry. “Over time, I hope to expand my business,” says Ali. “I want to build a team and the Century 21 name in Metro Vancouver.”

■ ■ ■

Century 21 Supreme Realty is now open in Surrey, B.C. “I’ve always known I wanted to run my own business,” says owner Shaheem Ali. “I thought I’d open up an independent brokerage initially, but quickly realized that I’d be more successful with a franchise. When I met with Century 21, I was impressed with the level of support and training they offer – not only to the owners, but to their

■ ■ ■

Burke Realty of St. John’s, Nfld. is the newest member of the Aventure Realty Network. Under the leadership of broker/owner Carol Burke, “the strong team of sales professionals and administrators deliver a full suite of residen-

Letters to the Editor Multiple representation As an ethical, active real estate broker in Toronto who is very familiar with the concerns buyers have with multiple representation (mainly in multiple offer scenarios), I do not support the position the Ontario Real Estate Association (OREA) or the government (banning “double-ending” altogether) has taken. I believe this position misses the mark completely on the real issue buyers have with the current process, which I firmly believe is rooted in a lack of transparency (specifically in multiple offer situations).

OREA and our elected governments are missing a great opportunity to be forward-thinking, instead taking the easy way and rushing to mirror other models as it relates to developing a process that truly addresses the real issues consumers complain about.

While I understand that there

Cover photo: ELIJAH SHARK

is some merit to the position taken

by OREA, I am not convinced how it would stop two Realtors from the same brokerage speaking with each other to give their buyer an advantage over a buyer from another brokerage, or for that matter two Realtors in different brokerages doing the same.

My experience with this issue is about multiple representation when there is more than one offer.

Buyers (and Realtors) I speak with are more concerned about “transparency” and “fairness” in how they choose price points and terms when competing on a property.

None of the recommendations address that properly. I am also not convinced that taking away a buyers’ choice to work directly with a listing agent is the answer.

However, I totally agree that unfortunately there are listing agents who take advantage of this and they should absolutely be dealt with appropriately.

I am in favour of implementing some form of transparency model (not auction-style), while of course ensuring privacy is maintained, like the model suggested in REM by Rui Alves (September issue). While a transparency model represents a total paradigm shift, I strongly believe implementing a degree of transparency in the process more adequately addresses the public’s concerns.

As someone who cares deeply about public protection, home ownership and building stronger credibility and ethics in the real estate industry, I urge the government and OREA to challenge yourselves to ensure that what you are recommending is addressing the real issues consumers face. We have a great opportunity to think bold and be leaders in this matter, and not just follow models in other jurisdictions or rush to make decisions based on political might. I implore you to not waste this opportunity to make impactful and meaningful change!

Philip Kocev, CHRL, BAS Broker & ICI associate director iPro Realty Ltd. Brokerage Toronto, Ont. REM

Publisher HEINO MOLLS heino@remonline.com

Editor JIM ADAIR jim@remonline.com

Director, Sales & Marketing AMANDA ROCK amanda@remonline.com

General Manager MILA PURCELL distribution@remonline.com

Digital Media Manager WILLIAM MOLLS web@remonline.com

Art Director LIZ MACKIN

Brand Design SANDRA GOODER

Graphic Design SHAWN KELLY

Carol Burke

Alison Chave

Adam Kilburn

Brandon Allen

tial, commercial and investment services including a specialized property management division,” says Aventure president Bernie Vogt. Burke is the current president of the Newfoundland Chapter of the Canadian Condominium Institute and is a member of the institute’s National Council.

■ ■ ■

JLL has added six professionals to its capital markets and industrial teams across Canada.

Alison Chave joined as vice president and practice lead for national debt brokerage and advisory services and will be based in Montreal. She brings several years of experience and will be responsible for providing real estate debt advisory and securing innovative financing solutions for all asset types nationally.

Adam Kilburn, Terry Kilburn and Keegan Bal have joined the Edmonton capital markets team to provide advisory and transaction services to clients in

2255B Queen Street East, Suite #1178 Toronto, ON M4E 1G3

Phone: 416.425.3504 www.remonline.com

REM is published 12 times a year. It is an independently owned and operated company and is not affiliated with any real estate association, board or company. REM is distributed across Canada by leading real estate boards and by direct delivery in selected areas. For subscription information, email distribution@remonline.com. Entire contents copyright 2017 REM. All rights reserved. Reproduction in whole or in part without written permission from the publisher is prohibited. The opinions expressed in REM are not necessarily those of the publisher.

REALTOR® and REALTORS® are trademarks controlled in Canada by The Canadian Real Estate Association (CREA) and identify licensed real estate practitioners who are members of CREA. MLS® and Multiple Listing Service® are trademarks owned by CREA and identify the services rendered by members of CREA. REM complies fully with the CREA’s Trademark Policy (section 5.3.2.6.1).

ISSN 1201-1223

Paul Fischlin

Edmonton and across Western Canada. Adam Kilburn joined as senior vice president and practice lead of the capital markets platform in Edmonton and will be supported by Terry Kilburn and Bal, who are experts in underwriting and valuation services, the company says.

The industrial team has been strengthened with the addition of Brandon Allen and Paul Fischlin, both as vice presidents.

They will provide advisory services and execute industrial lease and sale transactions on behalf of clients in Montreal. REM

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Multiple Listings

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It’s a place called amazement.

Home is a word that signifies so much. You understand what it means for each of your clients, and they rely on you to lead them on their journey there. Our goal is to help your clients truly understand their home, so they can feel good, feel right, and know the miraculous feeling of home.

pillartopost.com Each office independently owned and operated.

8 REM OCTOBER 2017

Started from the bottom, now he’s here

Christopher Alexander started as a janitor in his parents' brokerage. Now he's regional director of Re/Max Ontario-Atlantic Canada. By Tony Palermo

W

hen Gurinder Sandu, then regional director of Re/ Max Integra Ontario-Atlantic Region announced in July 2016 that he was leaving to pursue an ownership opportunity, Christopher Alexander was quick to say he wanted to step in. But despite his family’s connection to the business – his grandfather is Re/Max Integra co-founder and chairman Frank Polzler and his mother is CEO of North American operations Pamela Alexander – no one was quick to just hand him the reins.

In a July 2016 interview with REM, Integra’s co-founder and president Walter Schneider said the company was going to take its time to find the right fit.

That’s exactly what they did.

Despite having a successful run working in franchise sales with the company, it took Alexander another three-and-a-half months of persistence and proving himself with increased responsibility before being officially given the nod to succeed Sandhu.

Re/Max Ontario-Atlantic Canada’s newest regional director laughs when asked how he got his start in real estate.

“My first job in real estate was when I was 13 and worked as a janitor at my parents’ Re/ Max brokerage,” says Alexander.

“Over the years, I advanced myself into other roles within the office like doing collections and working the front desk.”

Alexander says he didn’t always have his sights on entering the real estate industry.

He had a tremendous passion for history and started off his post-secondary schooling at Carleton University in Ottawa pursuing political science. But he says while he understood the importance of higher education, he was also discovering that he

wasn’t much of a scholar.

“Honestly, at the time, I had a hard time buckling down and studying,” says Alexander. “Still, I knew I wanted to do well in life and make a very good income, and real estate is one profession where you can definitely do that without having a Ph.D. or MBA.” The young Alexander pursued his real estate licence while still at university, and after graduating in 2009 with a Bachelor of Arts in history, started working at the family brokerage as a sales agent.

As the years progressed, he took on more of a leadership role within the company, doing training and some management in terms of planning and helping new agents. In 2014, Alexander started doing franchise sales with Re/Max Ontario-Atlantic Canada. He describes this time as when he really hit the ground running, quickly securing a few key sales, and then continuing the trend through 2015 when he did some big conversions and brought over some high-profile people from both Ontario and Atlantic Canada.

Then, in 2016, when Sandhu announced that he was leaving to pursue an ownership opportunity, Alexander says he put up his hand up right away.

After being promoted to his new role, one of the first things Alexander did was talk to agents and brokers across various markets, including the more remote areas that hadn’t been visited too often in the past.

He listened as they described their biggest challenges, what they loved or hated about the business, and areas they thought the company could improve on.

The core of those conversations, says Alexander, was that sales agents and brokers really believed

Christopher Alexander (Photo: Elijah Shark)

in the roots of the company and wanted it to continue focusing on and supporting full-time agents who are serious about the business.

“The emergence of discount companies – the low fee, low service model – is trending,” says Alexander, adding that he feels the industry’s biggest challenge today is marginal sales people. “The more part-time and unprofessional agents who give consumers bad experiences, the more disruptors will try to commoditize our industry.”

Alexander says that “teams are huge” and describes them as the way forward for industry

professionals. Specifically, he says his company is putting a large focus towards building the tools and systems to help develop and support business teams that have real asset value.

“Teams are the most profitable model in the industry and there have been sales of these team companies, especially in the U.S.,” says Alexander. “As an individual agent, your retirement plan is only as good as your last deal, but if you can build a real asset, and we can show you how to do that, I think that will have a huge impact on the livelihoods of our sales force.”

With

Re/Max’s

recent

rebranding to freshen their look for the times, Alexander says in the spirit of building teams and being “home of the top producers and those who aspire to be”, Re/Max OntarioAtlantic Canada will continue providing agents and brokers tools, services and education to help them grow and make running their businesses easier.

He says the company is working to help its sales professionals spend less time on non-revenue producing activities so they can spend “more time focused on building their business and spending time doing the things they love, with the people they love.” REM

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10 REM OCTOBER 2017

Keeping deals alive in tougher times

By Mark Weisleder

A

lmost every day I receive calls from buyers who are having a tough time closing their real estate deals. It is a combination of either not being able to sell their existing home for what they expected, to the lender reappraising the property they bought for lower than what they paid, resulting in a lower mortgage being approved. Either way, the deal cannot close without further negotiations. Here are some

things to remember as you try to save the deal.

1. No situation is the same.

No two buyers are in the same position, as are no two sellers.

Sellers who need the money from their sale to close a purchase may not have the same leverage on the buyer who cannot close as a seller who is not buying right away, or who has already purchased with bridge financing.

Similarly, when your buyer is a first-timer with little down payment, a seller’s chances of recovering major damages in a lawsuit are far more remote than when the buyer has assets, including an existing home with lots of equity. You need to understand exactly where you stand before deciding what

course of action you want to take.

2. Whenever possible, keep the deal alive. In my experience, keeping a deal alive, no matter what the cost, is still better for buyers and sellers than cancelling and going to court. It has always been my experience that whenever deals break down and end up in court, only the lawyers win. People just don’t appreciate the time, costs and stress of a real estate lawsuit. It is brutal on everyone, except the lawyers, who always get paid in advance.

3. Clients should forget about blaming the real estate agent.

When deals go bad, it is easy to try and blame the real estate agent for the client’s misfortune. In my experience, the problems are rarely

B.C. proposes to ban dual agency “Many long-standing clients have developed trust with me, and now my clients have no choice but to start from the beginning and build new relationships,” says BCREA president Jim Stewart.

T

he B.C. government’s decision to ban the practice of limited dual agency is coming under fire from Realtors in the province.

“Every day, Realtors help their clients understand real estate transactions, so they can make informed decisions,” says B.C. Real Estate Association (BCREA) president Jim Stewart in a news release.

“Over my nearly 25-year career as a Realtor, many long-standing clients have developed trust with me, and now my clients have no choice but to start from the beginning and build new relationships.

Trust is a crucial part of what is often the largest financial transaction in people’s lives.”

The draft proposal from the Office of the Superintendent of Real Estate prohibits the practice of dual agency, except in “remote locations that are under-served by licensees.” The proposal has been provided for public comment and is to take effect on Jan. 15, 2018.

BCREA points out that limited

dual agency is used in cases where Realtors have established relationships with buyers and sellers, in commercial transactions and in situations where Realtors specialize in particular property types.

“Rather than working with licensees they don’t know, we’re concerned people may decide to complete real estate transactions without representation,” says BCREA CEO Robert Laing. “That goes against the consumer protection mandate of the Superintendent of Real Estate and the Real Estate Council of B.C.” Real Estate Board of Greater Vancouver president Jill Oudil says in a statement: “Realtors support their clients and back changes that improve transparency in the real estate transaction. The new disclosure requirements proposed by the superintendent will enhance the public’s understanding of the real estate transaction in B.C. We support this aspect of the measures announced today. Where the proposed changes fall short are in

respect to consumer choice.

“We believe in informing home buyers and sellers and empowering them to choose who they want to represent them in a transaction,” says Oudil. “We’re encouraged to see that government recognizes circumstances where exemptions to the ban on limited dual agency are necessary. We believe there are other circumstances where consumers should have the choice to consent to limited dual agency so long as they can demonstrate that their consent is informed. For example, people who’ve built a longstanding relationship with a Realtor shouldn’t be forced to find alternative representation in a transaction against their wishes. We’ll continue to stress this point with government.”

Lang adds: “We know consumers value the right to choose their own representatives. Over the next few days, BCREA will examine the draft rule changes carefully and consult with the 11 real estate boards to determine our next steps.” REM

the agent’s fault. It is not the agent’s fault a buyer put in an offer without any conditions during the crazy bidding wars we witnessed just a few months ago in Toronto and now cannot close.

Buyers and sellers must remember that while they must pay for their lawyers, up front, in any lawsuit the real estate agent has virtually all their legal fees paid for through their insurance.

Whenever a client threatens to sue you because of their troubles, they are just trying to bully you. Once they see the costs of litigation, they almost always back down.

4. Remember what to ask for in an extension: If the seller is going to agree to keep a deal alive by extending it, sellers should try and ask for two main terms. The first is an additional deposit, usually non-refundable, to be paid to the seller immediately and to be credited to the purchase price on closing.

This is not a penalty – the seller will be able to use these funds to help pay for unanticipated costs they incur because of the extension.

Also ask for interest on the balance due on closing, at anywhere from three to seven per cent. This compensates the seller for not hav-

ing the use of their closing balance during the extension period and helps pay extra interest the seller may be paying on their own mortgage.

5. Get lawyers involved early in the process. Sometimes you will have no choice but to put the home back on the market, to try and reduce everyone’s losses, without agreeing to a mutual release.

This involves a more complicated agreement, as the parties will not want to place any conditions on the listing, such as the deal being subject to a release of a prior agreement, as this may scare away some of the few buyers in this tougher market.

Your clients need a lawyer to assist who not only understands the legal process, but also understands the MLS listing and selling process. Anyone can close a real estate deal. When it gets tough, you need someone in your corner who can get the deal done.

Mark Weisleder is a partner, author and speaker at the law firm Real Estate Lawyers.ca LLP. Contact him at mark@realestatelawyers.ca or toll free at 1-888-876-5529. REM

OBITUARY Merv Burgard, Q.C. Well-known real estate lawyer Merv Burgard of London, Ont. died on Aug. 7. He was 80.

Mr. Burgard was responsible for Legal Forum, an online resource launched on the Ontario Real Estate Association’s website in 1999. Realtors were invited to submit questions and over the years Mr. Burgard responded to more than 6,000 queries, along with former OREA counsel Charlotte Sloan. The Legal Forum remains one of the most popular features on the OREA website.

Mr. Burgard’s obituary says, “Merv was an avid reader, who was rarely seen without a good book in his hands. He took great pleasure in beating his wife at a game of backgammon and was a wellrespected lawyer who refused to retire even up to the end. He will be remembered for his sense of humour and generous spirit.”

A tribute on OREA’s website says, “OREA mourns the passing of our dear friend and colleague Merv Burgard. Merv will be greatly missed by OREA staff, volunteers and by countless Ontario Realtors. Merv’s contributions to OREA are numerous and great and chief among them is Legal Forum.”

He leaves his wife of 53 years, Sheila; children Chris Burgard, Lisa Jenings and Cathy Adams; and granddaughter Claire Adams.

REM

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12 REM OCTOBER 2017

Inside Fidel Castro’s childhood home Story and photos by Diane Slawych

F

idel Castro led Cuba for almost five decades, but in all that time, few people could ever tell you where he lived.

With so many assassination attempts – by the CIA and others over the years – he was forced to change abodes frequently. Even in retirement, his place of residence remained top secret.

Not so with his childhood home. Castro grew up on a 12,000-hectare farm and sugar plantation near the village of Biran in Holguin Province in eastern Cuba. Though it’s not well known, the site was opened to the public in 2002.

Fidel’s father Angel bought the property, known as Finca las

Manacas, in 1915. Here he grew sugarcane, sold timber and raised cattle on the site that once sat on the Camino Real, or Royal Road – Cuba’s main east-west thoroughfare in colonial times.

The holdings were so vast it resembled a small community, with many of the structures still visible today. Near the entrance are several small thatched huts that were reserved for the mainly Haitian labourers. There’s also a cockfighting ring and several brightly coloured wooden buildings that once housed a post office, a guest house and a market store. Visitors can peak inside the primary school that Castro and other local children attended and

The dining room and living room of the home near Biran, Cuba where Fidel Castro and his younger brother Raul spent their childhood years.

see the cemetery where his parents are laid to rest.

His father came to Cuba from Spain as a soldier to help quell the Cuban independence movement in 1895 and returned to live in the country four years later. He became a well-to-do landowner and began a relationship with household servant Lina Ruz González, who was 27 years his junior. Together they had three sons and four daughters and married after their third child Fidel was born.

Of greatest interest to visitors is the homestead – a yellow wooden mansion built on tall stilts where the family lived and where Fidel was born. We approach beneath the structure, where Angel Castro’s 1918 Ford motorcar is parked.

The home’s spacious interior includes original furnishings, several bedrooms, a living room and a dining room, said to be very authentic of a Cuban campesino.

Also on display are family photographs, a chair made of cow hide that doubled as a drum at local festivities, Fidel’s crib and his bedroom where a sport shirt with his name embossed on the back hangs in a wardrobe.

Fidel’s parents had separate bedrooms. His father’s room contains his bed, a mahogany wardrobe, a dominos set on a table and a photo of him on his first trip to Cuba at age 20 as a Spanish soldier. In one corner is a heavily damaged safety deposit box. After her father’s death, Fidel’s sister Juanita was forced to break the

Fidel’s sports shirt with his name on the back hangs in the wardrobe of his former bedroom in the home where he grew up.

There’s surprisingly little tourism promotion of the Castro family home.

Fidel Castro was born in 1926 in Biran, Cuba.

safe to get at its contents.

“She assumed it contained a lot of money,” says guide Antonio Lopez, “but inside she found only one peso and lots of documents.”

Apparently, the elder Castro had “no concept of storing cash because he believed you don’t keep your money, you invest it.”

Behind the house, Lopez shakes the branches of an old tree as several yellow fruits fall to the ground. These are sometimes called Chinese plum, carambola or star fruit. “Fidel loved it because he was also a good runner and got a lot of energy from this fruit.”

His hands cupping the fresh harvest, Lopez tells us the family home burnt down in 1954 (Fidel had left by then) and the home that stands now is a replica that was erected in 1974. A carambola tree was lost as well, but another – the one under which we are standing – was planted in its place.

Fidel preferred to keep things low key and non-commercialized.

As a result, there’s surprisingly little tourism promotion of the Castro family homestead. A roadside billboard, for example, shows a picture of Fidel and Raul with their house in the background and just one word on the sign: Biran, giving no indication of the attraction nearby. Most visitors find out about it through word-of-mouth.

We were told that of the 500,000 visitors since it opened, 400,000 have been Cubans and only 100,000 have been foreigners.

And it seems the property wouldn’t have opened at all if it weren’t for some curious and persistent Canadians who came by around 2001. “They were from Quebec and when they arrived at the gate they were prevented from entering,” says Lopez. When a bit of a fracas ensued, Raul, the current Cuban president, who was on the farm at the time, intervened and allowed them in. He realized that people were interested in seeing the property and shortly after that opened it to visitors.

“So the museum started with Canadians,” says Lopez. REM

14 REM OCTOBER 2017

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By Bob Aaron

A

decision from the Ontario Superior Court in July highlights the obligation of real estate agents to review home inspections with their clients.

Suzanne Powell and her mother Joyce Powell wanted to buy a property in Toronto’s west end.

Their real estate agent, Barbara Kirby (now Den Ouden), introduced them to a house on Indian Grove.

When they visited the house, they were shown a summary of a home inspection report prepared for the owner, Tadeusz Lojko. It indicated, among other things, leakage of water around a skylight on the second floor.

Kirby prepared an offer for the Powells to sign. It required the seller to fix the skylight. I represented the Powells when they closed their $730,000 purchase in March 2010.

After closing, a serious mould problem appeared throughout part of the house that was occupied by tenants, forcing them to move out.

A mould growth expert was called in and he reported significant contamination in several areas due to water seeping into the basement through the foundation and upstairs through leaks from the skylights.

Unknown to the Powells, two years before their purchase there had been a major flood in the basement, resulting in considerable evidence of mould and mildew.

As a result of the mould infestation, the Powells incurred damages exceeding $141,000, including repair costs and lost rent. In

2011, they sued the seller, Lojko and Kirby, their agent.

At the trial before Justice Thomas Lederer in February, a key issue turned out to be whether Kirby had an obligation to alert the Powells to the significance of the summary of the home inspection.

After hearing evidence from Barry Lebow, an expert in the duties of real estate agents, the judge wrote, “It is not as if there were no hints or indications that something was amiss. The summary of the inspection undertaken on behalf of the seller and available at the time of the inspection should have or, at least, could have raised concerns in the alert reader. “… As seen by Barry Lebow this was a wakeup call. It should have been apparent, particularly to Barbara Kirby as an experienced agent, that, at the least, this required an examination of the full report to be assured that there were no further or unforeseen problems.”

The Powells were never shown the full report.

A reasonable agent, the judge concluded, would have obtained and reviewed the full report. Had she done so, “a great deal of the problems that ensued could have been avoided.”

In the end, Kirby was required to pay 25 per cent of the $141,105 in damages, or $35,276. She also paid $35,000 in costs. The Powells had to absorb 25 per cent of the damages themselves. Prior to trial, Lojko, the seller, signed a confidential settlement agreement with the Powells, so we will never know what share of the damages, if any, he absorbed.

But the case is a lesson for real estate agents who are now on notice of their obligation to review home inspections with their purchaser clients.

Bob Aaron is a Toronto real estate lawyer. He can be reached at bob@aaron.ca, on his website aaron.ca, and Twitter @bobaaron2.

REM

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Colin Hartigan, Broker/Owner, Coldwell Banker Fort McMurray, Fort McMurray, Alberta © 2017 Coldwell Banker LLC. All rights reserved. Each office is independently owned and operated. Coldwell Banker and the Coldwell Banker logo are registered service marks owned by Coldwell Banker LLC. Each sales representative and broker is responsible for complying with any consumer disclosure laws or regulations, as well as applicable Real Estate Association rules and codes of conduct. Not intended to solicit brokers under contract.

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16 REM OCTOBER 2017

From FSBOs to raving fans

By Debbie Hanlon

B

efore we begin our final instalment of the For Sale

by Owner System, let’s do a brief recap of what we’ve already covered. You have yourself set up to receive all FSBOs that are hitting the social media platform.

You’re keeping an eye out for FSBO signs, you’re taking a quick picture of the phone number with your phone. You’re setting aside a time each week to call the numbers you capture. You’re calling and asking for a walk-through.

Now, once you get a walkthrough, the system ramps up as you go in hard for the listing.

How exactly do you do that?

We’ll answer that with a couple of simple questions. In the house, apartment or condo you live in,

how many pieces of mail have you received from a real estate agent?

Have any agents contacted you on a consistent basis? Odds are overwhelming that the answer to those questions is no and that’s where the final part of the FSBO System gives you a unique advantage. As with most things in life, consistency is key.

Now you send the walkthrough a letter. In it you’ll thank them for the opportunity, wish them well and remind them you’re there if they should change their mind and list with someone.

That’s step one.

What follows is seven weekly postcards specifically targeted to that FSBO. We use seven because that’s generally the number of impressions needed for the person to recognize the message and brand in a marketing piece.

That impression recognition is essential because of top-of-mind awareness (TOMA) it generates with the FSBO. When they decide to get an agent, guess who’ll be the first one to come to

mind? That’s right, the agent who has been keeping in touch with them consistently. Now, this consistency not only leads to name awareness but also establishes and begins to build a relationship with the FSBO. By the time they receive their fifth piece of mail from you, a level of trust and connection has been established.

Thanks to the web, you can add another weapon to your FSBO arsenal with Facebook ads.

These ads will mimic the postcards but show up in your FSBO’s newsfeed. We can assure that by micro-targeting the ads and appealing to interests they have listed in their profile. Facebook allows for marketing unlike anything offered before and the great news is, it doesn’t cost a lot. I have my own in-house marketing department that takes care of the ads and ad placements. I’m too busy selling houses to be become a marketing expert. I believe in surrounding myself with people who have different skill sets than myself. Along with Facebook, my

team targets Instagram, LinkedIn and other platforms people frequent.

You probably have a few questions now: What’s on the postcards and Facebook ads? What do they look like? What’s the message? The answer to that depends on you and your audience. The pieces should, of course, be positive. They should include your photo and contact information.

Most importantly, they should address something the FSBO can identify with. They should also be helpful to the FSBO. Sometimes I use something as simple as staging techniques that help homes sell.

What I never do is use the doom and gloom, call me soon marketing approach. That’s where an agent will attempt to scare the person into listing with them by citing all the facts and figures about how poorly FSBOs do.

You’re not scaring them; you’re helping them because you want to gain their trust. No one is going to hand over the most expensive thing they own to someone they

don’t trust, simple as that. So, gain their trust and, in no time, you’ll be gaining their commissions.

My marketing department generally has half a dozen templates or so done up that I’ll choose from based on my conversation with the FSBO during the walk-through. If they own a dog, maybe I’ll use dogs…you see how it works. If you need any extra help or direction, get in touch with me. If you give it a try, I am positive you’ll see how fast you can turn FSBOs into raving fans.

Debbie Hanlon is a real estate broker who has helped train hundreds of sales reps and brokered and managed a national real estate franchise.

She also founded an independent real estate firm. Currently she coaches sales reps all over the world. She is the CEO of All Knight Inc, a global educational mobile company, as well as a published children’s author and the creator of the national I’m No Bully Show. www.facebook.com/missdebbieandfriends REM

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18 REM OCTOBER 2017

Fairy tale FSBOs

WE’RE MORE THAN A NETWORK.

By Dan St. Yves

Classifieds: Real Estate, For Sale By Owner Posted Sept 1: Three Little Pigs Straw House This home is far more stable than one might think. Built from the finest straw, the owner recommends heating with warm rocks or vigorous exercise during cold spells.

Fireplace use is not recommended.

Contrary to false reports, there is not now, nor has there ever been a big bad wolf with a breathing problem lurking outside. Fake news!

Posted Sept 10: Cinderella’s Kitchen Prior to the previous owner’s relocation to an enchanted castle, this home was her residence along with her step-sisters and step-mother. Well, technically only the kitchen is for sale, as the sisters and mother remain in the rest of the property. However, the kitchen is state of the art, featuring animated birds that are capable of designing ball gowns from scratch, and a fairy godmother that turns pumpkins into coaches. Buy before midnight tonight and receive one free admission to a prince’s ball!

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Posted Sept 15: Geppetto’s Workshop Are you a handyman or budding woodcarver? This is the home for you! Nice workbench, retro carving tools and a selection of marionettes that just need a few finishes to have them ready for sale at the local flea market – who “nose” how big this business could grow for you? I won’t lie to you, this is a once-in-a-lifetime opportunity for the hobbyist who might just come to life with possibility – no strings attached!

Posted Sept 18: Jack’s Beanstalk Field Commercial property listing,

for sale by owner! Formerly used to grow giant beanstalks, now primarily home to rows of sunflowers and some rhubarb. Outbuilding features one goose that only lays offwhite eggs, a harp that randomly begins playing without assistance and a hooligan hat 20 sizes too large for even a 12-foot-tall NBA forward. Open to negotiation, must sell. Save big on real estate fees, fie foe fum!

Posted Sept 20: Sleeping Beauty’s Castle Blow-out on this abandoned castle, move in quick. We’ve even left a queen bed behind, sleep comfort guaranteed! You’ll never want to wake up once you lay down in this gorgeous home.

Unique soundproofing to mute even the deepest snorer in your family. You will recharge your batteries every time you crawl in for a nap! Note: Handsome prince required if you need to wake up in a timely fashion.

Posted Sept 28: Frog Prince’s Pad Waterfront living at its finest!

This home is literally on the water!

This lily pad enjoys nice shade in the afternoon, and calm waters unless there is a heavy rain. Or stupid humans diving in for a swim.

However, if you are a magical frog, and one such human agrees to kiss you, then like myself you may be upgrading to a conventional home once you have been transformed into a handsome prince. One word of caution, as a frog that aspires to become a handsome prince one day, you will really want to watch out for crows, ducks and geese. I strongly recommend adding cover, or developing primo puckering skills pronto.

Humour columnist and author Dan St. Yves was licensed with Royal LePage Kelowna for 11 years. Check out his website at www.nonsenseandstuff.com, or contact him at danst.yves@hotmail.com. REM

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The industry has changed since then but the core of our culture is still focused on helping remarkable Agents get to the top - not just get by. Everything we do, we do for the sake of our Agents’ productivity.

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22 REM OCTOBER 2017

Tough times for real estate services in Russia

By Eugene Vorotnikov

T

he real estate services industry in Russia is on the verge of a crisis, due to a massive outflow of local agents from the business and the stagnation of the real estate market.

According to the latest data of the Russian Ministry of Economy, in the last 12 months more than 4,000 real estate agencies were closed. Going back to the second half of 2015, 6,000 agencies have shut down and few new agencies have opened.

The Russian real estate market is stagnating because people are no longer interested in buying housing on credit, due to the ongoing financial uncertainty in the country and high interest rates, which are the range of 18 to 19 per cent.

Earlier this year the Russian government launched a program to subsidize the mortgage rate, which reduced the demand for resale homes and shifted demand

to new housing. Most apartments in new buildings are purchased by clients directly from builders through their sales offices, without the participation of real estate agents.

Another reason for the decline of real estate agents in Russia is an initiative of Russian banks to promote online registration services for securing deals. Many banks provide discounts on the mortgage to borrowers who use this service.

In the long term, banks plan to attract resale home buyers and start working with them directly, without using real estate agents.

Maxim Oreshkin of the Russian Ministry of Economy (who is responsible for the development of the real estate industry) says this will pose another threat to real estate brokers because large banks have many more resources to check the legality of the deal than a small real

estate firm or a private broker.

Oreshkin says the financial downturn in Russia, caused by Western sanctions, has made sellers less likely to use the services of real estate brokers.

“Due to economy concerns, many homeowners in Russia have become increasingly engaged in finding (buyers), conducting showings and negotiating by themselves without the participation of real estate brokers, which has resulted in a significant decline of the demand for services of the latter,” says Oreshkin.

When signing the deal, the sides usually get legal support, which costs significantly less than the services of a real estate agent.

There’s a similar trend in the rental market. There are many web resources where homeowners and tenants can find each other, for those who prefer to secure a deal by their own means without agents.

In the rental market, there has been a significant reduction of real estate agents’ fees, to half of what they made in the past.

Still, analysts at the Russian Ministry of Economy predict the market for real estate services will improve next year. It says only small companies and those that operated on the franchising model left the market and that there are fewer less reliable and stable players.

Ivan Saveliev, head of Saveliev and Partners, one of Russia’s leading real estate agencies, says real estate brokers will soon return to the Russian market and will be in high demand.

“Deals (for resale housing are) often associated with a lack of funds and apartments and houses with some problems and encumbrances. Almost always, deals in this market segment are executed on the chain basis, when one

Maxim Oreshkin

client waits for another to start his deal.” These complex chains usually need real estate professionals to sort them out, he says.

Saveliev says many real estate brokers in Russia lost their jobs because their clients are not willing to adapt to the new market conditions. In most regions, resale housing prices are dropping but sellers are not ready to accept this.

New home developers are reducing prices faster, realizing that it is more profitable to sell at a discount than keep paying the banks on their own loans. At the same time, private homeowners still have pre-crisis prices in mind and are not ready to seriously bargain.

REM

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From “Secret-Agent Expired-Chasers” to Multi-Millionaire Business Owners Real success in any business means not only healthy earnings, but also time off to enjoy life. The fact is, however, that most Canadian real estate agents sacrifice their entire lifestyle in pursuit of success and, ironically, instead of gaining more freedom, they become slaves to their real estate business.

If you don’t have a real business system, you don’t really have a business at all. What you have instead is a “job”, and for many, it’s a really bad job: one that consumes your time, keeps you away from friends and family, and doesn’t pay enough.

Even though you work so hard, it’s just so random. Some days you win. Some days you lose.

The fact is that agents leave our industry in droves, not because they’re not great at working with clients, but rather because they don’t have enough clients to work with. They don’t have enough leads, they don’t find enough time to properly follow up and thus convert their leads, they don’t know exactly why they win or lose a listing.

Even though they work very hard, too much is left to chance.

Trying to “do it all” without a clear understanding of what works and what doesn’t ultimately sows the seeds of failure for many.

A profitable and “real” business MUST be based on solid systems. In real estate, that means a system to generate leads, a system to convert those leads, and a system to convert qualified prospects into paying clients. Every successful business in the world, from McDonalds to Amazon to FedEx, is based on proven and duplicatable “systems”, and the agents who achieve mega success in our industry have done so on the strength of solid, proven, eff ficient business systems.

As revealed in the profile of Milton, Ontario agents Domenic and Jody Manchision on

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

Not only is Craig Proctor’s real estate system responsible for more Millionaire Agents than any other coach or trainer, but Proctor was a highly successful AGENT himself for more than 20 years right here in Canada. As you may know, he was twice named the #1 RE/ MAX agent in the world and was in the top 10 for RE/MAX International for 15 years. In fact, for 6 years straight, no one listed or sold more homes in the Greater Toronto Area than Proctor did. (Source: TREB Statistics). No one in Canada has sold more homes than Proctor

has, and by sharing the system he used to achieve his own success, he’s been able to help over 30,000 agents worldwide to transform their real estate jobs into highly lucrative real estate businesses that don’t come at the expense of high lifestyle costs.

If you do not have a clear, detailed business system (key word, system) that you are using to move methodically to your goals…a plan you could show a banker or investor or new partner or key associate…a plan you have reasoned, complete confidence in, then why

wouldn’t you examine Proctor’s Ultimate Real Estate Success System – for free?

For a limited time, you can have a “sneak peek” at what your real estate business could look like by attending Proctor’s upcoming Free Discovery Day (see AgentsMakingMillions.com for details). Yes, Craig Proctor will openly share with you how he became Canada’s top agent. Learn from a real doer, not a talker. Craig will share “real Canadian real estate strategies” with you that actually work. No theory, ideas or motivational hype. At this 3 hour meeting Craig Proctor will spill the beans and share with you exactly what to do and what it takes to be a Super-Successful Real Estate agent in Canada.

For more information, visit: AgentsMakingMillions.com

Read More About Millionaire Agents Like Domenic and Jody at AgentsMakingMillions.com

by Domenic & Jody Manchisi, Milton, ON For us it all began in 2004 with the Craig Proctor System. Domenic was licensed in 199 19966 an and d wa wass an exp expir ired ed chaser and I was the administrator/Buyers Agent.

In Canada, the Privacy Act was enforced in 2004 which would not allow us to contact a person who had expired, susp su spen sp e de en ded d or can cance cell lled ed on on our Real Estate Board as the prospect’s information was deemed “private”. Needless to say, this disabled our ability to do business. We did not advertise ourselves any-

where. Our entire business model was expired/off market listings and cold calling.

At this time, we did not brand or markket ourselves l - we were known as the secret agents!

We were selling on average 80 homes a year and working 24/7 just the two of us.

The only logical next step was to lea learn rn abo about ut mar marke keti ting ng.

With Wi th no no he hesi sita tati tion on, Do Dome meni nicc said we needed to call Craig Proctor. As impatient as he is, Domenic called Craig directly, and Craig called back! Giving Craig our story he said, “Dom, have you been to a SuperConference?” Well, no, we hadn’t yett. A mon ye month th lat later er D Dom om at attended his first SuperConference in Phoenix and our lives were forever changed.

We worked the system, testing ads etc. and it changed our world. Leads were coming in, Dom wa Dom wass perf rfec fecti ting ti ng th the he cal all ll back script and I was implementing the systems and follow up. Coaching was key at this point for us, keeping us accountable and staying on

track as the systems were supposed to be done. We began building a team, first hiringg a bu in buye yer’ rss ag agen entt, tthe hen n th thee admi ad mini nist stra rato torr an and d ad addi ding ng on on as we grew and needed more help.

As a result, we’ve had great success in our career, being number 1 in Canada 20082011 with Prudential. Hall of Fame, Top p 10 1000, T Top p 11% % for Re/Max 2012-2016.

In 2014 our net income was

istrators, 6 OSAs, and 1 ISA. Jody is the office manager, Domenic is also ISA and also goes go es o on n ap appo poin intm tmen ents ts o off hi hiss choosingg. We concentrate and ch focus on training our team to understand what each person’s role on the team is and we are finding this has been a crucial part of each agent’s development. Tracking more prec pr ecis isel elyy to eens nsur uree ma mark rket etin ingg is w wor orki king ng, an and d wo work rkin ingg wi with th our coach to fill any holes in the business!

“There was only one logical next step, and it changed our lives forever.” $830,000. In 2015, after doubling down on our implementation of the system, our net income was $1,300,000 and we had sold 124 homes – a 60% increase.

In 201 In 201 0166 we sol old ld 17 1766 home homess and earned $1,834,000 in net income – a 42% increase!

WOW Currently in 2017 our team consists of 3 full time admin-

We can really attribute our success to the Craig Proctor System. The members we have become friends with, all the program has to offer and the Craig Proctor coaches for thei th eirr co cont ntin inue ued d su supp ppor pp ortt an and d astute coaching.

Our goal for 2017 is $2,500,000 in net income and 234 home sales. n

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

Full City Schedule at: AgentsMakingMillions.com

24 REM OCTOBER 2017

THE GUEST COLUMN

By Mike Cusano

A

s a real estate professional, I believe one of the best aspects of this job is how rewarding it is to provide such a valuable service. There is a tremendous sense of pride in helping a family or a business owner find the place that is just right for them, or in guiding folks through the emotional process of selling the house they’ve called home for many years. It’s a privilege to do what we do.

Guiding consumers through what is likely the largest transaction of their lives means we are entrusted with an incredible amount of responsibility.

Professionalism in every aspect of our business dealings is key and we must put our clients’ interest ahead of our own. Beyond this, I encourage Ontario registrants to be engaged and reflective and think about the industry and the rules that govern us.

With that in mind, this fall we’ll be consulting with the industry to talk about several matters, including how Ontario’s Real Estate and Business Brokers Act,

Raising the bar through the REBBA review 2002 (REBBA) can be enhanced.

At face-to-face town halls, we’ll discuss how to build on the existing professionalism of our industry and raise the bar for current and future professionals.

REBBA has served consumers well for many years, but with only minor changes having been made over the past 15 years, it’s time to modernize it to better reflect the current real estate environment.

phase 2, which is slated for next spring. Multiple representation and fines were the focus of the first phase.

RECO wants to see mandatory designated representation (MDR), to limit the situations in which multiple representation is permitted. Under MDR, a brokerage could represent two parties to a transaction, as long as each party works with a different representa-

I encourage Ontario registrants to be engaged and reflective and think about the industry and the rules that govern us.

Currently, the Ontario government is conducting a review of the rules, considering leading practices in other provinces and consulting with consumers, registrants and subject matter experts along the way.

We recently shared the Real Estate Council of Ontario’s (RECO’s) submission for the ongoing phase 1 of the REBBA review.

Our submission also included some preliminary recommendations for

tive. In addition, RECO has advocated for standard disclosure language that would ensure that consumers understand the pros and cons before they decide who will represent their interests in a trade.

While MDR would apply to most multiple representation scenarios, we know there are necessary exceptions. In some remote communities with a limited number of registrants, for example, MDR may simply not be feasible.

When it comes to fines, we support a move to raise them, as well as a proposal to disgorge part or all the commission if the conduct warrants it. An important element of this is that reclaimed commissions that had been unethically “earned” should be returned to consumers in some way. This would be similar to how the courts may order restitution when it is appropriate to do so.

While phase 2 of the review isn’t scheduled to begin until spring of next year, I encourage you to start thinking about it now because this portion of the review will be much broader in scope and look at REBBA in its entirety.

At RECO, we’ve given some thought to what phase 2 could cover, such as: • Expanding the powers of our Discipline and Appeals Committee to make it easier to suspend or revoke registration in response to severe misconduct; • Clarifying some of the language used in real estate so that consumers have a better understanding of their relationship with their representative and the services provided; and • Making the legislation more flexible. This would allow RECO, subject to government approval, to be more responsive in updating rules and regulations in response to

ever-changing conditions in the marketplace and technology.

This is just a snapshot of our recommendations. I hope you’ll read our submission in its entirety, as well as take the time to consider how you would like to see professional standards raised.

Which elements of REBBA do you think should be updated? Are there changes that would make it easier for you to serve your clients better? Do you find that some rules are out-of-date because of recent technologies? Are there any issues that you encounter in your local area of practice that are not currently addressed in REBBA? We’re looking forward to touring the province this fall to meet face-to-face with industry leaders.

It’s a great opportunity to hear feedback and engage in a dialogue on numerous RECO initiatives, including the REBBA review.

These are the sorts of insights that we’re hoping to discuss on that tour. We want to hear from registrants who can not only shine a light on issues, but also think critically about them and offer thoughtful solutions – solutions that RECO could implement and others where amendments to REBBA may be necessary.

Ultimately, this review is all about strengthening consumer protection for the buyers and sellers that we have the privilege of representing every day.

Mike Cusano is chair of RECO’s Board of Directors, and a broker at Re/Max Escarpment Realty in REM Hamilton, Ont.

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On streets around the world, our shops are an expression of our passion for real estate and a shared commitment to support our real estate advisors to provide premium service to their clients at every price point.

We invite you to drop in, browse and see what a future at Engel & Völkers might hold for you.

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

26 REM OCTOBER 2017

Get more leads from your website

By Robin Wilding

E

arning leads from your real estate website isn’t magic – it’s science. The first part of that scientific formula is getting traffic (potential leads) to your website; the second part is converting that traffic – asking for the business.

Asking for the business is a well-known concept in offline real estate lead generation, but you need to ask for it online too.

Imagine hosting an open house where you don’t ask for a follow up.

You’d be missing an opportunity.

Same with online.

Earning leads online is about asking for the business and the way to do that is through lead-generation forms.

Before we tell you where to put

a lead-gen form, let’s address what that is. A lead-gen form is an opportunity for your website visitors to give you their contact information. This information isn’t simply “given� (unless you’re a highproducing agent they already know and want to work with). It must be earned. The forms need to be attractive enough to garner attention and convincing enough to warrant people giving up their precious contact information.

Having an attractive and convincing offer is critical, but so is the location of these forms. The six items below are the top-delivering spots based on behind-the-scenes research from the clients of REwebsites and are listed in order, starting with the most important positioning.

1. Pop-up: While the words pop-up have become dirtier than mud, or timeshare, this is the most effective lead-gen form there is.

On average, more than half of online leads come in through a website’s pop-up lead generation form.

Having an attractive and convincing offer is critical, but so is the location of these forms.

2. Top bar: A top bar lead-gen form is one that is at the top of a page (above the menu) and often follows you down the page along with the menu. These forms bring in an average of 30 per cent of the leads that a website generates.

3. Scroll boxes: Scroll boxes are call to action forms that generate leads, but only activate and pop-up (generally in the right- or left-hand corner) once a reader scrolls down to a certain point down the page. A common point is after the user scrolls halfway down the page. These can garner up to 30 per cent of total leads. Websites don’t generally use the scroll boxes,

top bar and pop-ups at the same time.

4. Sidebar: A sidebar lead-gen form is in the sidebar of a website (the reoccurring element on pages on the right- or left-hand side that shows on most pages except for the homepage). As this is located on most of the pages of a website, it has the most views after the popup, top bar and scroll box. And the better the real estate, the more leads you will receive.

5.

Embedded forms: Embedded forms are lead-gen forms on your website that are unique to that specific page (not a pop-up, not in the sidebar or top

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bar) and generally come after the content (although for long pages they can be halfway through so you capture the lead before the reader stops reading). These can be effective as they are uniquely catered to that page’s content.

For example, if that page’s content is about homes in X neighbourhood, the lead-gen form could be about “homes in X neighbourhood most likely to increase in value�. While they can be effective for readers on that page, they won’t be viewed nearly as much as other options, which is why they generally garner about five per cent of leads or less. While the percentage of total leads is smaller, they can be good-quality leads because the user was searching for information on that topic.

6. Landing pages: Landing pages on your website are commonly used to syphon traffic from advertising campaigns. It is hard to give a percentage on these in terms of total overall leads as they run separate from the rest. But, they perform well if they use a tempting offer or intriguing information and can earn anywhere between two to 30 per cent of the traffic sent directly to them.

While having any lead-generating forms on your website is better than not having them, placing them strategically is of critical importance. Using only embedded forms on a few pages of the website can reduce your overall lead generation to five per cent of its total potential. You need to use them in a way that complements the overall design and isn’t overly intrusive – but don’t use too few or you’re losing leads.

Robin Wilding is the creative mind behind Real Estate Websites Canada (http://real-estate-websites.ca),a boutique real estate online marketing company hyper-focused on lead generation. The company’s success is attributable to its modern, mobilefriendly websites, lead-generation packages and beatable-by-none customer service. She also runs the Facebook Group, “Canadian Realtor Tech & Marketing�, an ad-free group that has some great tips for sales reps and a forum to discuss things that have (and haven’t) worked for them.

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28 REM OCTOBER 2017

THE GUEST COLUMN

By Ettore Cardarelli

I

t’s a once in a lifetime opportunity to change the legislation that governs real estate in Ontario.

The Real Estate and Business Brokers Act, 2002 (REBBA) governs how Ontario Realtors work with consumers, other registrants and countless other issues.

REBBA was passed 15 years ago. Ontario’s real estate market has changed a lot since then and REBBA needs to keep up.

As a result of some good lobbying by the Ontario Real Estate

Help shape the future of the real estate profession in Ontario Association (OREA), the province launched a full review of REBBA and committed to a consultation process this summer that is divided into two phases.

The first phase focused on the issue of multiple representation and has just wrapped up.

The government’s message on multiple representation was clear – they were reforming the system and wanted feedback on a proposal to introduce mandatory designated representation (MDR).

With just over 30 days to consult, research and draft a response, OREA’s REBBA Review Task Force brought forward a solution that supported MDR, provided it included the ability to enter into transactional representation.

The second phase of the consultation is where the rubber really

hits the road. All of REBBA is on the table and OREA has launched the most extensive member consultation in the association’s history to get the best advice on how to make it happen. It’s all being hosted on www.REBBAreform.ca, our member consultation website.

Between now and December, OREA will publish a series of white papers on four key areas – enforcement, ethics, continuing education and registration education.

Last month, OREA released its first white paper – Better Enforcement and a Regulator That Works – that includes a series of bold policy proposals suggested by the REBBA Review Task Force.

It outlines proposals like: • Should RECO have the ability to force a registrant to for-

Sandra Pineda; and Chi-en (Amy) Tai, daughter of member Su-chen Chang.

■ ■ ■

L

arissa Smit has joined the Ontario Real Estate Association’s Government Relations team.

“OREA is looking to strengthen our Realtor voice at Queen’s Park by enhancing the association’s real estate and housing research capabilities. Larissa’s wealth of knowledge and experience will help OREA promote the Canadian dream of home ownership,” says Matthew Thornton, OREA’s vice president of public relations and communications.

Smit will be the manager of policy. She previously worked for Tarion Warranty Corporation as the manager of stakeholder relations and for the Ontario Legislative Assembly as a senior policy advisor.

■ ■ ■

The London and St. Thomas Association of Realtors (LSTAR) awarded $6,000 to four outstanding students, supporting their post-secondary endeavours.

The LSTAR Student Scholarship Awards recognize four university or college-bound students who have demonstrated academic excellence, a high level of school and community involvement, maturity, responsibility, initiative and strength of character.

Eligible applicants must be either the children, grandchildren or under the legal guardianship of members or staff of the association.

Each award recipient receives a $1,500 bursary.

The 2017 recipients are Felicidy Hocking, granddaughter of member Cathy Swan; Jack Peifer-Dawson, son of member Tracy Peifer; Natalia Pineda, daughter of member

feit profits gained from unethical activity?

• Should the minister responsible for REBBA have final approval for registrant fee increases?

• Should RECO be subject to Auditor General value for money audits?

• Should RECO create an internal independent ombudsman that registrants and consumers can complain to?

More recently, the REBBA Review Taskforce released its second white paper on continuing education. It discusses issues like whether registrants taking mandatory continuing education should have to pass the courses; whether registrants should be given the option of taking CE courses in class; and whether third-party credits should count

towards CE requirements.

We need your feedback on these proposals because it will determine which ideas OREA takes to the government to improve our industry as a whole.

Visit www.REBBAreform.ca today and help us strengthen the profession for tomorrow.

Alternatively, members can submit feedback on any issue, including MDR, directly to REBBAreform@orea.com or by connecting with us on social media – Facebook or Twitter.

This is a once in a lifetime opportunity for Realtors to shape the future of our profession. Don’t let it pass you by.

Ettore Cardarelli is president of the Ontario Real Estate Association.

achieve these results without them and the terrific staff at Steve Marshall,” says Janice Stromar, REM 2017 VIREB president.

Recently Vancouver Island Real Estate Board staff and directors joined representatives from Steve Marshall Ford Lincoln to present a cheque for $7,500 to Nanaimo and District Crime Stoppers and Nanaimo RCMP Victim Services.

Larissa Smit The money was raised at a Driven to Give fundraising event held in Nanaimo.

Lincoln Motor Company developed the Driven to Give program, a test-drive fundraising event.

Chi-en (Amy) Tai is presented with the scholarEach test drive earns $50 for the ship cheque by LSTAR president Jim Smith. chosen charity, to a maximum of $7,500.

This is the third time VIREB collaborated with the dealership. In 2015, the two organizations raised $10,000 for Nanaimo’s Haven Society. Although Lincoln Canada lowered the maximum amount to $7,500 in 2016, VIREB and Steve Marshall once again raised the full sum for last year’s beneficiary, the Nanaimo SPCA. A steady stream of VIREB members dropped by to test drive a vehicle. “Our members are so supVIREB directors and staff at the Driven to Give fundraising event. portive, and we truly couldn’t

REM

30 REM OCTOBER 2017

Rent-to-own deserves a better reputation Clover Properties’ “people first, property second” approach is working to clean up the image of rent-to-own programs. By Sohini Bhattacharya

I

n 2013 Leigh Ann entered a rent-to-own (RTO) program through Clover Properties, an Ontario-based RTO company.

She ran a day care from her home but had accumulated too much debt and not enough down payment to qualify for a mortgage.

“Because I was self-employed, the banks had a hard time looking at us. We didn’t have our down payment. We found it difficult to save on our own,” she says while seated on the sun-drenched backyard deck of her new home in Barrie, Ont. During the standard threeyear term of her RTO, Leigh Ann worked hard to improve her debt ratios and saved up a bigger down payment than she expected. The banks qualified her for a mortgage within two years in 2015 – a year

ahead of her schedule.

Leigh Ann is one of several homeowners who successfully completed Clover Properties’ RTO program and are part of the company’s 92 per cent success rate. While raising the bar for structuring RTO deals, Clover Properties has helped over 150 credit-challenged families become mortgage-ready and enter homeownership in a real estate climate that is increasingly pricing families and millennials out of the market.

When Rachel and Neil Oliver, owners of Clover Properties, started their RTO business 7 1/2 years ago, they had regular nine-to-five jobs and a two-year-old. RTOs presented them with a lucrative way to generate passive cash flow, without

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the headaches of being landlords.

At the time, there were few RTO specialists in Ontario, so the Olivers wanted to plug into those established systems.

They soon noticed gaps in these established systems – gaps that have earned RTOs a dubious reputation.

“We were seeing that people were doing no-money down RTOs, which results in 90 per cent failure,” says Neil. With zeroper-cent down payment from home buyers, investors take on a huge risk. Investors offset those risks by charging home buyers hefty monthly payments. “While that’s doable in month one, by month six, tenant-buyers start to feel the money drain and back away from the deal. That was gap one,” says Neil.

Exorbitantly high home appreciation rates were the second gap that the duo identified.

RTO companies were charging eight to 12 per cent, when the market was growing at an average rate of three to five per cent.

Homes weren’t catching up to such high rates and tenant-buyers weren’t able to exit RTOs into homeownership. “So, we started tweaking the model at our end,” says Neil.

He also observed that RTO numbers were being driven up by investor greed. “At Clover Properties, we structure RTOs from a realistic, robust and a winwin perspective. The real estate brokers get their commission, the mortgage brokers get their deal, we get paid by the investors, because the investors make their returns. Moreover, the homeowners earn the equity they build on the house. They’re not being charged 12-per-cent appreciation, and they own an asset at the end of the deal,” he says.

Affordability is another gap in the RTO system, says Rachel Oliver. Often prospective homeowners underestimate their debt load in comparison to their com-

Janet Esau

bined family income. “They have a hunch and an appetite to buy homes upwards of $500,000, when their household income is $60,000. This is a big miss for real estate agents who don’t necessarily tap into the affordability criteria. The real estate agents we work with steer homebuyers through Neil’s rigorous underwriting process, where he objectively mimics the mortgage rules, identifies their true affordability and relays that information to the real estate agent. This way, the agent isn’t wasting their time showing properties that homebuyers salivate for but can’t afford,” says Rachel.

Janet Esau, a sales rep with Century 21 Leading Edge Realty in Stouffville, Ont., says that with only a few credible RTO companies in Ontario, the industry has not kept up with the viability of RTOs. In part that’s due to scamsters making news in the market, but more so because the brokerages haven’t done their due diligence about the growing need for RTOs, she says.

While homeowners and millennials are becoming more aware about RTO opportunities, real estate agents aren’t following suit.

She says the 70,000 Realtors in the province are competing for the same properties in the same market, making the competition fierce, forcing new agents to knock door-to-door and cold call in the hope of making a deal.

“The stat that we were given was that for every 100 doors you knock, you may get one. That’s

Rachel and Neil Oliver

not one deal – that’s one response, one person who wants to just talk to you,” says Esau, who specialises in RTOs with Clover Properties.

Now into her second year as a real estate agent, she says she recognized the potential of Clover Properties’ “people first, property second” approach and works closely with Neil Oliver to help struggling families own their first homes.

Since January 2017, Esau has earned commissions on 19 closed RTO deals through Clover Properties.

The Olivers’ hand-holding approach to RTOs have it defined down to a science. They’ve literally written the book on the subject, titled Rent-to-Own: A New Path to Ownership.

“Good Realtors pride themselves on developing relationships with their clients. If you’re a Realtor, focussing on buying and selling, don’t try to do RTOs on the side. Bring in a RTO specialist,” says Neil.

The company is inviting Realtors to leverage from their RTO model, their vetted network of investors and their expertise at no charge. Their prescreening process ensures that investors and homeowners understand the basics of their RTO process, they say.

For information: http://rentREM ing2own.ca/

REM OCTOBER 2017 31

The sky’s the limit to your success in real estate The REALTORS® Conference & Expo is taking place just across the border in Chicago, Illinois. Join us November 3-6, where the sky’s the limit to what you’ll accomplish! The conference is the place where real estate professionals come together to discuss industry best practices. Learn valuable information to help address your local business challenges, and build your global market by meeting 20,000 real estate professionals and guests, including over 800 fellow Canadians.

To see the full program of education and networking opportunities, visit www.Conference.realtor. And, here’s our recommended “MustDo” list for Canadian real estate professionals to help you start planning:

MUST-HEAR EDUCATION SESSIONS “How Do Cultural Differences Affect Your Business?”

Wo r k i n g with diverse cultures is a must-have skill in Canadian real estate. Erin Meyer, an expert in crosscultural management, helps attendees identify cultural gaps in business relationships. Take Meyer’s Culture Map quiz at erinmeyer.com/rconf-expo to see how your communication preferences match up with others.

Might the Future of Real Estate Include Blockchain?

Canadian s p e a k e r Jessica Stoner, along with a panel of blockchain experts, explain this newer – and safer option for real estate transaction records.

Discover how this technology works and learn why it’s predicted to have a big impact on how future real estate transactions are completed.

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Learn more and register at www.Conference.realtor

Say No to Unreasonable Demands…And Still Get Paid In markets with tight i n v e n t o r y, clients on both sides of a transaction can have high expectations.

Two veteran real estate instructors , Ed Hatch and J a c k i e Leavenworth, share the stage and give their tips for delivering, what master negotiators call, a “positive no.”

MUST-ATTEND TECH EVENTS REach® Technology Accelerator Meet the hottest new real estate technology companies of 2017 at the REALTORS® Expo. REach® was named as one of the best startup accelerators in the country by Forbes magazine.

Combine Silicon Valley Knowledge with Real Estate Essentials A panel of professionals, including luxury home experts and executives from realtor.com®, shares tips for staying ahead of the competition.

Big Data! The Next Big Thing in Content Marketing Becoming a thought leader in real estate is vital when it comes to big data. Identify your audience and implement a strategy to become a thought leader in your marketplace.

MUST-DO NETWORKING ACTIVITIES “Meet the World” Speed Networking Session

The National Association of REALTORS®, “The Voice for Real Estate,” is America’s largest trade association, representing over 1.2 million members, including NAR’s institutes, societies and councils, involved in all aspects of the residential and commercial real estate industries.

The Global Networking Center at the REALTORS® Expo hosts a speed networking session on Friday afternoon. It’s the best place to meet professionals from all over the world and make new connections.

Young Professionals Networking Reception It’s the hottest ticket in town and your best networking spot for Friday night. Hurry! Tickets always sell out for this event. This year’s reception is at Chicago’s Untitled Supper Club.

International Night Out & Awards Ceremony This gala event is the international community’s night to shine!

The Global Awards Ceremony honors the highest achievements and is followed by dinner and dancing to live music.

MUST-SEE SIGHTS New City, New Tower Toronto has Chicago beat with the 553-meter tall CN Tower, but Chicago’s tallest building, the Willis Tower, provides a view of three U.S. states from 442 meters up on the Skydeck.

Chicago Architecture Boat Tour Expert guides give an insider’s glimpse into the buildings, architecture and engineering that has made Chicago famous for American architecture.

Chicago Pizza Tour Leave your pineapple and ham pizza behind, and sample some of Chicago’s world-famous deep-dish pizza on an exclusive tour just for conference attendees.

Visit www.Conference.realtor for more information and to register.

32 REM OCTOBER 2017

Double-ending and fee discounts

By Ross Wilson n this seventh in the series about real estate commission rates, allow me to address what is referred to as double-ending, or representing both seller and buyer in a sales transaction. It’s certainly fraught with risk, but is it too risky to participate in this practice?

It’s commonly perceived that the charging of a double commission is unreasonable. But let’s look at it another way. Technically, it may seem like a double fee, but it’s actually two separate commissions on a single property. Remember in a previous column, when I discussed dividing a full commission into two parts – half for the listing agent and half for the buyer brokerage? Well, let’s bring that con-

I

cept into this discussion.

Opposition to the whole concept of dual agency exists and it is currently under review by governments in B.C. and Ontario.

Amongst other concerns, it’s been suggested that when representing the interests of multiple parties in a transaction, our services are degraded. Therefore, they argue, because we provide less service, our fee should be lower.

I disagree. Nevertheless, realty agents unfortunately often discount their contractually agreed fee when double-ending, not necessarily because they want to, but because they feel obligated since a full commission is a lot of money.

Or they do so to win the listing or are coerced into doing so during a listing competition. Or during an offer presentation, an unscrupulous seller or buyer demands it. But think again about risk.

Naturally, with any agency, there’s always risk, but it multiplies with multiple agency. More opposing clients and more potential con-

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flict equates with higher risk. In a single agency, you normally assume the risk of what might ultimately prove to be a futile attempt to win the listing or generate income.

And of course, there’s always the risk of liability due to technical error. Also, on rare occasions, there’s the risk of not being paid.

With dual agency, you can double that risk and then some.

An ethical challenge exists with respect to the discounting of fees for a “double-ender�. Let’s say the total commission payable by the seller is $20,000. You present an offer to your sellers who say they’ll accept it if you reduce your commission to $15,000. They complain that your commission is still a lot of money, especially if it’s only been on the market a couple

It’s commonly perceived that the charging of a double commission is unreasonable. But let’s look at it another way.

If a multiple-agency transaction is skilfully and conscientiously organized, more agent expertise is required – not less. To effectively execute the riskier role of dual agent and discharge your professional fiduciary responsibilities correctly, you must do more work, provide more disclosure, carefully and cautiously communicate and mediate between and expertly advise more client parties and create and manage more documents than if a co-operating brokerage is involved. Plainly expressed, doubling the number of parties equates with doubling the complexity.

Consequently, under such circumstance, the full fee as agreed in the listing contract is quite justifiable.

of weeks. If you comply, the seller is happy, the buyer is happy, but you – not so much. You just lost $5,000.

Now, let’s be realistic. If you had not introduced your buyer to that listing (which you’re ethically compelled to do) and instead, sold your buyer another agent’s listing of the same value, and in the meantime, another agent sold your listing, you’d have generated the full $20,000 commission; half from your sold listing and half from the sale of another brokerage’s listing.

Clearly, this is a practical disincentive to do your best for your seller client. To collect your full fee, either you not show your own listing or your buyer must make up the

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$5,000 in lost commission under the buyer representation agreement. Complicated? Yup. It gets even more so when the buyer demands a “kick-back� of commission for agreeing to work with you as the listing agent. Or the buyer expects to buy the property at a lower price because they think, rightly or not, that you’re earning a double commission and will reduce your fee to “make the deal happen�. But the seller wants the entire benefit of a lower commission for themselves.

Everybody wants a piece of your fee. Since when did the agent become a third-party contractor to the agreement of purchase and sale? For all practical purposes, that’s exactly what happens when you throw in your fee. Under common law, this isn’t permitted.

I mean, think about it. You’re participating as a party to the contract by contributing your fee to the price negotiation – but without the accompanying equity interest.

It’s not much different from you paying part of the purchase price to the seller or giving money to the buyer for their down payment – but without the benefit of a lien or titled equity interest. In exchange for your financial donation, maybe you should demand a collateral mortgage be registered on title in the amount of your fee reduction and see what happens.

I can hear the howling as the parties fervently object to such an “unreasonable� proposal. Kicking in is a slippery slope indeed. To enjoy a solid business, I suggest you avoid it whenever possible. If the sale is meant to be, then it will be – and without your sacrificial contribution.

In the next column, I’ll continue this discussion from a slightly different perspective, that of mediation verses advocacy.

Ross Wilson, broker with iPro Realty, has extensive experience as a brokerage owner, manager, trainer and mentor. His book, The Happy Agent – Finding Harmony with a Thriving Realty Career and an Enriched Personal Life is available where print and e-books are sold, including the TREB, BREB, RAHB and OMDREB stores. Visit RealtyREM Voice.com.

“

Tripled My Business in 3 Years

From Assistant to Top Agent in 5 Years C A S E S T U DY Kate Miller North Vancouver, BC Top 10% of REALTORS® in Greater Vancouver 2015, 2016 Licensed in 2011, Kate Miller began her career as a real estate assistant and within a year, ventured out on her own. Kate joined RRI Coaching in 2014, and in just 3 years, she’s been featured as one of the Top 100 REALTORS® in Canada under 35 and is on track to triple her business in the highly competitive market of North Vancouver.

The Challenge In 2014, “I was floundering,” Kate recalls, “working deal to deal without certainty.

I got into real estate because I like working with people, but that didn’t mean I knew how to structure a business.”

The RRI Solution After discovering the power of tracking her business in coaching, Kate honed in on delivering value and building her sphere through business networking. Kate soon became the go-to agent for a powerhouse networking group that continues to grow. “The other part to coaching is ideas and the ability to talk through a specific challenge,” Kate mentions. “RRI coaches pull from other RRI coaches to find fresh ideas so I can choose what feels natural and works for me to keep progressing.”

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34 REM OCTOBER 2017

Good Works I

n July, a group of 82 Royal LePage agents and broker/ owners from across Canada traveled across the North Atlantic Ocean to take part in the Iceland Challenge for Shelter. Modeled after the Shelter Foundation’s first international trekking fundraiser in 2015 to Machu Picchu in Peru, the Iceland Challenge for Shelter required participants to raise a minimum of $5,000 and cover their own travel costs. They also committed to improving their level of fitness to prepare for the physical demands of the trek, which many anticipated to be a strenuous 100-km hike on relatively flat ground. They quickly found out about their true task.

It was a 115-km trek over five days across some of Iceland’s most scenic but gruelling terrain.

Participants hiked over sand, rock, lava fields and snowy glaciers.

They climbed and descended steep hills, braved narrow passes and rickety bridges, and walked through icy rivers with water up to their thighs. They camped in tents they pitched themselves each night, did without daily showers, and turned off their cell phones for five straight days.

Royal LePage president Phil Soper and Royal LePage Shelter Foundation staff Shanan SpencerBrown and Carly Neill took part in the trek.

Throughout the trek, participants demonstrated courage, perseverance in the face of pain and exhaustion and showed great kindness to one another, says Royal LePage. Trekkers shared gear, carried each other’s backpacks and helped one another through dehydration, injury and emotional lows.

They cheered for those who thought they couldn’t walk anoth-

Iceland Challenge for Shelter trekkers braving a narrow pass with sheer drops on either side

er step, gave hugs to those shedding a few tears, and offered love and support to each other as the team got closer to completing the trek. Along the way, they were rewarded with sights of raw beauty including rushing waterfalls, majestic volcanoes and galloping Icelandic horses.

The group collected more than $655,000 for the Royal LePage Shelter Foundation, making the Iceland Challenge for Shelter the charity’s largest fundraiser of all time. All the proceeds will be directed to the women’s shelter in each trekker’s community and to national initiatives to break the cycle of family violence in Canada.

To view a collection of photos taken by the trekkers, visit https://www.flickr.com/photos/135178002@N03/sets/7215768 7640318716/ ■ ■ ■

Exit Realty Corp. International will donate $300,000 to benefit those hardest hit by tropical storm Harvey.

A portion of every transaction fee received by Exit is pledged to its non-profit organization of choice.

A donation of $200,000 from that pledged pool of funds to Habitat for Humanity will be directed to

benefit flood victims in the areas hardest hit by the storm. In addition, the company has donated a further $100,000 to the American Red Cross disaster relief efforts.

“This record-breaking storm has left many families devastated,” says Exit’s founder and chairman Steve Morris. “At times like this our Exit family rallies to help.”

■ ■ ■

The Sutton Group - Preferred 26th Annual Golf Tournament raised $11,714.50 for Ronald McDonald House of Southwestern Ontario (RMH). The charity provides a home away from home for the families of seriously ill children.

Since 2015, Sutton Group Preferred has raised $24,158.

In addition to the golf tournament fundraising, Sutton Group Preferred Realty team members cook meals for the families at RMH monthly. They began this tradition three years ago and are booked to prepare meals until the end of 2018.

■ ■ ■

Re/Max Escarpment Realty in Stoney Creek, Ont. recently held is fifth annual Grill and Chill event in support of the Children’s Miracle Network.

A story in the Stoney Creek News reports that Virginia Paul, Re/Max Escarpment’s head of advertising, marketing and design, says the brokerage raised more than $400,000 for CMN during the last 25 years.

The event included a barbecue, hot air balloon rides, frozen Dairy Queen Blizzards and musical entertainment.

■ ■ ■

The team at Sutton Group Signature Realty in Mississauga, Ont. raised $3,000 to purchase a playground, then constructed it from the ground up in the backyard of a sick, two-year-old boy named Jonah. He suffers from L1CAM Syndrome, a genetic condition that causes an accumulation of fluid in the brain, muscle stiffness and other challenging symptoms.

“Jonah is the sweetest little boy ever and just the look on his face when we presented him and his two sisters with the playground was priceless,” says Valerie Fleck, office administrator and one of the 30 playground builders from the brokerage.

Their project was arranged Continued on page 36

Team members from Sutton - Showplace Realty in Chilliwack, along with friends and family, raised funds for wildlife evacuees at a recent barbecue.

Iceland Challenge for Shelter trekkers celebrate the end of their 115-km journey and more than $655,000 raised for the Royal LePage Shelter Foundation.

The team at Sutton Group – Signature Realty in Mississauga purchased and built the playground.

From left: Sutton Group Preferred’s Cathy Combs, sales administrator; Lori Payne, office manager; Gerry Weir, broker of record; Jenne Wason Benoit, RMH of Southwestern Ontario director of development; and Ken Payne, Sutton Group - Preferred manager.

royallepage.ca/joinus

LIKE

ROYAL LEPAGE

This is not intended as a solicitation of any sales representatives or brokers that are currently under contract. All offices are independently owned and operated, except those marked as “Royal LePage Real Estate Services Ltd.”, “Royal LePage West Real Estate Services” and “Royal LePage Sussex”. Any copying, reproduction, distribution or other use of these materials is prohibited. ©2017 Brookfield Real Estate Services Manager Limited. All rights reserved.

36 REM OCTOBER 2017

Key traits of a real estate leader

By Penn Javdan

W

Congratulations to our President & Co-Founder, Walter J. Schneider!

Walter was recently recognized as a Fellow, a prestigious honour by the Ontario REALTORS Care® Foundation.

more ecstatic to see him receive this recognition and become the Ontario REALTORS Care® Foundation’s newest member.

All of the Ontario REALTORS Care® Foundation Fellows are committed to improving the quality of life in various Ontario communities and given Walter’s philanthropic passion, we couldn’t be

Please join us in congratulating Walter in receiving this recognition, and thank you to everyone who makes contributing to charitable endeavours a part of their business.

remaxintegra.com

hat is it about some leaders that make others want to work harder under their direction? What makes a good leader in general, and a good real estate leader in particular?

In a nutshell, a boss tells employees what to do to keep the organization afloat. A leader inspires colleagues and subordinates to drive the business of their own volition.

At its simplest level, leaders offer something others can’t.

Something both intangible and practical. They offer an ethic that is instilled in others, and the employees may not even be aware that it happened! Leaders: 1. Offer something others can’t. Leaders show, they don’t tell.

They lead by example. They don’t instruct others to create quality – the quality they create shows others how things are supposed to be done and engages others to want to do it.

2. Create quality. Leaders create quality and they ensure that the appropriate personnel and systems are in place to maintain it.

For instance, suppose the leader, a top producer in a brokerage, successfully completes a transaction.

Suppose further that she is a Certified Real Estate Specialist.

The CRES member is an individual who has balanced knowledge in all areas of real estate. It is earned by only the top performers, who have demonstrated exceptional skills, training, experience and commitment that has gone above and beyond provincial licensing requirements.

Now this leader can hold ses-

Welcome to RE/MAX, Aleisha!

Please join us in welcoming Aleisha Penny to the her career goals, making a-b Realty Ltd. the RE/MAX a-b Realty Ltd. family! Aleisha will be perfect fit. working out of the 463 Dundas St. Woodstock location and will focus on Oxford County.

Aleisha believes a-b Realty Ltd.’s mission to provide great leadership and represent all client’s ethically, Aleisha recently became a licensed broker in competently and with dedication is perfectly in line 2017 and comes to us with over 14 years of with her career beliefs. Aleisha is a dynamic real award-winning sales experience. estate individual who offers a ton of skills. Combine her experience with a-b Realty Ltd’s training, and Aleisha recognized that RE/MAX’s strong brand, she’s sure to go straight to the top! advanced technology, and innovative training Welcome, Aleisha! We can’t wait to help you grow! is exactly what she needed in order to achieve If you are interested in ownership opportunities with RE/MAX, the largest most productive real estate brand, contact Jennifer Dominey at 1.647.519.7735 to arrange your confidential meeting, or visit remaxintegra.com.

remaxintegra.com

Good Works Continued from page 34

through Million Dollar Smiles (www.milliondollarsmiles.ca), a non-profit organization that matches children and donors to provide playgrounds, teddy bears and more.

■ ■ ■

Sutton - Showplace Realty staff and salespeople in Chilliwack, B.C. served 144 hotdogs at a barbecue recently as they

sions that show how she conducted herself differently in various ways. This can be anything from analyzing a contract to explaining how a negotiation was conducted, to how phone calls were fielded (an activity many other leading companies, like banks and insurance companies, do).

3. Establish trust. The only way to establish trust is to be worthy of it. True leaders have credibility. They’ve taken the time to earn it, without cutting corners.

When their reputation is put to the test, they can back it up with evidence, not words.

Part of that evidence is the quality of their service. For example, many salespeople will offer something verbally, only to change it when push comes to shove and circumstances change. A leader would not take this approach, even if it means short-term losses. If it takes time to build trust, it also takes time to build real (long-term) gains.

4. Inspire others. Machiavelli said that it is better to be feared than loved. Because in the former case, you are in control, whereas in the latter case, others are. But in a customer service-oriented context like real estate, this medieval wisdom should perhaps be taken less than seriously.

Leaders instil a love for performance, not a fear in the lack of it.

They make their employees or colleagues want to come to work in the morning for intrinsic reasons, not because of some external negative consequence.

Productivity is maximized and workers are most happy when raised $1,284 for the Red Cross to assist victims of the B.C. wildfires.

“One lady stopped by our table and it turned out she was a resident of Williams Lake (an area devastated by fire),” says Amber Siemens, office receptionist at the brokerage. “She told us her family has a farm up there and, when a neighbouring town received evacuation orders, they took in someone else’s horses. Once the evacuation order was issued for Williams Lake, they had to transport them all to another safe zone.

their performance is based on the right reasons.

5. Be creative: Leaders know how to fashion creativity, even towards the most business-oriented situations and technical requirements. Creativity is not the sole preserve of artists. It is the flexibility and adaptive thinking that solves practical, day-to-day challenges. This could be a new approach to sales, or a new way of communicating with customers.

The point is to do it like the others aren’t and to solve problems that others can’t.

A common worry among brokers is that without the immediate bottom line, everything else is moot. Concepts, strategies or principled approaches are merely secondary points of attack, if they figure into a business plan at all.

But Harvard’s Daniel Pink advises us to motivate employees who work beyond basic tasks and give them three factors to increase performance and satisfaction.

These are: Autonomy – our desire to be self directed. It increases engagement over compliance; Mastery – the urge to get better skills; and Purpose – the desire to do something that has meaning and is important. Businesses that only focus on profits without valuing purpose will end up with poor customer service and unhappy employees.

Employees may be unaware of the importance of these findings.

But that’s just it. As a leader, you must give them what they never REM knew they wanted.

The problem was that they only had a two-horse trailer and seven horses to move.

“She spent hours making multiple trips to relocate the horses. It is wonderful to see how people pull together. This woman and her family are staying at her mother’s house in Chilliwack until it’s safe to return home. When I offered her a free hot dog combo, she declined and instead handed us a donation…. It was so amazing,” says Siemens. REM

REM OCTOBER 2017 37

Real Estate Technology Could Ampify and BombBomb be game-changers?

By Neil Sharma

I

t’s no secret the real estate industry is undergoing a metamorphosis impelled by the application of new technologies, and while some regard change as a disruption, others have embraced innovative technologies to improve their businesses.

One product slated to hit the market at the beginning of October is Ella, by start-up tech company Ampify. Using artificial intelligence, Ella automates published social media content, saving both time and money.

As a cost-cutting measure, Ella will alleviate the need for digital media agencies and social media teams, and the time saved by sales agents can go towards their myriad other duties, including prospecting and following up.

“Typically, when an agent manages social media, they have to publish content and make Facebook ads, which takes time and effort, and quite a bit of knowledge, if you want to do it properly,” says Hayden James, Ampify’s co-founder. “With Ella, all an agent has to do is log in and give a target area, then we pull the content.

“The agent puts in their target location, and we pull relevant content from the library, and then they’re able to set ads based on buyers and sellers and how much money they want to spend. Essentially, all they do is set a daily budget and we manage

it from there.”

By using AI, potential clients who have searched specific housing types will be targeted by Ella with ads corresponding to their searches.

“Our content is auto-scheduled,” James says. “A lot of social media companies that do advertising do it manually, so it’s more expensive. We cut the cost down. We’re giving social media marketing to independent professionals who couldn’t afford it before.”

Ella is designed to alleviate the need for social media agencies and teams.

He also says this platform benefits brokerages too, because each individual agent can push the brokerage’s messages more effectively than a single advertisement would. “It’s a win-win for the brokerage and agents, because agents get more listings and the brokerage gets to push its business better. The brokerage gets to keep their happy agents and recruit new ones.”

Ampify is “beta testing” with Vancouver’s Century 21 In Town Realty by establishing an instant feedback loop. Using the brokerage’s sales reps, Ampfiy’s team can heuristically augment their product. While Ampify is working with other brokerages too, In Town’s feedback loop has been instrumental.

“When we were looking to launch the data version of our product, we approached some local brokerages within Vancouver, then went and sat down with Michael (La Prairie, president of Century 21 In Town Realty) and we just kind of hit it off,” said James. “He was looking for a technology company to come in and we were looking for a place to work so that we could work side-by-side with their users to establish a really fast feedback loop. If we need to make a change, we can do that almost instantly.”

La Prairie says he believes in what Ampify is trying to do.

“My ultimate goal with Ampify is to generate more leads for my Realtors and get better exposure for our Realtors,” says La Prairie, as well as getting “into the eyes of the competition for recruiting purposes, to show them we’re not just a standard brokerage, but a brokerage that doesn’t compete with our agents but enhances what our agents do to get more business.”

BombBomb La Prairie is also an enthusiastic user of another product, BombBomb, which allows users to send video messages as emails.

BombBomb’s enterprise account executive, Justin Doornbos, says video messages can help a sales rep sell themselves in a few ways, but perhaps the most important is by building rapport with clients. For that, he says, text is vastly inferior to video.

“In the real estate industry, there are a lot of agents,” said Doornbos. “What sets you apart from everybody else? You sell yourself more than your product.

People do business with people they know, like and trust and doing it through video speeds that process up.”

Additionally, because of how

Michael La Prairie

important referrals are, using an innovative video platform also lends an air of professionalism.

Doornbos says BombBomb videos can be used for listing presentations, so “you’re going to market that house differently and better than anybody else.”

BombBomb also has a tracking feature that alerts the sender to when their message is viewed.

That is perfect for lead generation, says Doornbos, because the sales agent will know when to follow up with their potential client.

“If you’re a real estate agent and you had a hot lead go completely cold on you, but you

notice five days later they open your email and watch your video, you now know when the best time to contact them is. Videos can be uploaded on mobiles, but the tracking analytic also lets you know how long your video was viewed for.”

La Prairie says, “BombBomb helps me retain and recruit my associates, whether they’re new to the business or established in the business.”

One major disadvantage to regular emails, he says, is people cannot read one’s tone, but that isn’t the case with a video message, which leaves very little margin for misunderstanding.

“It puts a personal touch on the business we do, and last time I checked we’re in the relationship business,” says La Prairie. “I was introduced to BombBomb in February and I loved it. I drank the Kool-Aid and I use it religiously.”

La Prairie says, “These technologies are reinventing our lives and making them a lot easier. They make you look taller REM and thinner.”

ANNOUNCEMENT Welcome to the team, Kingsley Ma! RE/MAX of Western Canada is pleased to announce Kingsley Ma has joined the regional head office as a Director in the Member Services department.

He will join the team of professionals who keep the RE/MAX of Western Canada region at the forefront of the real estate industry.

Kingsley brings a wealth of franchise sales experience to his new position. He spent the last 13 years as a Director, Franchise Sales and Development at a National real estate franchise. He oversaw a team of franchise sales representatives and directors nationwide. Beyond Kingsley’s franchise sales background he has also taken a lead role in the expansion efforts in AREAA (Asian Real Estate Association of America – Canada) across Canada through trade, consumer and real estate events speaking on behalf of the Association. He is past Vice President and Active Board of Director member. He plans to continue his involvement following his move to Kelowna.

Kingsley Ma Director RE/MAX of Western Canada

Each RE/MAX office independently owned and operated.

remax.ca

38 REM OCTOBER 2017

Get more eyeballs on your emails

“This app is perfect for those who want and expect the very best of everything!

It’s Free and it’s Fabulous!!”

By Mark Brodsky

www.prompter.ca

GET

H

ave you ever thought, “Boy, I sure wish I received more emails”?

It’s highly unlikely.

It should come as no surprise that 75 per cent or more marketing emails remain unopened, deleted or relegated to the trash.

We all receive so many emails every day, how do you make yours stand out and get some attention?

Here are some tips.

1. A compelling subject line: “August Newsletter” or “Market News” is uninspiring and simply won’t cut it. Once you’ve prepared your email, think about what piece of content will be the most interesting to your readers. Is it a spectacular new listing, a local food festival, some fantastic gardening ideas?

Once you know that, write an engaging subject line that’s a maximum six to 10 words long that will motivate people to open your email.

AT HOME

What’s

GET 12 ISSUES VISI VI ISI S T REMONLINE.COM/HOME-SUBSCRIPTION/ SIT

*plus applicable sales tax

New Commercial real estate software companies form alliance SpaceList and Common Areas, two commercial real estate software companies, have formed a strategic alliance to help building owners, brokers, property/ facility managers, tenants and ser-

2. Think about the timing: If you’re preparing your email on a Sunday night, are people likely to be in front of their phone or computer to read it? And even if they are, is it the best time to send it?

The objective when you send out an email is for people to take an action such as clicking to your website or calling you about a new listing. Think about the actions you want people to take and schedule your email to go out when they are most likely to take them. Any professional email software will be able to tell you when people opened your email and when they clicked on one of your links. This is great information and allows you to increase the number of clickers moving forward. More clicks = more conversations = more sales.

3. Share your email on social media: On average, 22 to 25 per cent of people on your list will open your email. Some of them may be following you on Facebook, LinkedIn or another social media channel. Post a link to your newsletter there. The average adult on Facebook has more than vice providers bridge the gap between leasing a space and maintaining it.

SpaceList, based in Vancouver, is an online listing marketplace for commercial real estate. The company says its emphasis is on small to mid-size businesses seeking space.

Common Areas, a Californiabased firm, provides an online platform to organize, schedule and track teams and tasks online at each location.

“Increasingly, commercial real estate property owners and those who provide services to them are becoming very interested in the value of using technology to enhance and streamline end-toend real estate processes, collaboration and reporting,” says Steven Jaffe, vice president of partnerships for SpaceList. “Common Areas and SpaceList offer complementary solutions that are two links in the same value chain.”

The companies say they each

155 friends. If just one of those people shares your email, your potential reach has just expanded by 155 – and it didn’t cost you anything.

Here’s how it works: one of my clients has 2,500 people in his database. With an open rate of 25 per cent, 625 people see his newsletter each month. He shares it on his Facebook page, which has over 1,000 followers, on LinkedIn where he’s connected with over 800 people and on Twitter where he has just about 4,000 followers. By sharing his newsletter on social media, his reach more than doubles.

If you’re marketing by email and you find your open rates isn’t as high as you’d like, shake it up a little, try these tips and see what happens!

Mark Brodsky has been working with Realtors since 2008, producing monthly newsletters and social media management. Email mark@mbdigitalcommunications.com. Website: www.mbdigitalcommunications.com REM

Casey Rue

recognized a void in the marketplace that could be bridged using technology.

“SpaceList and Common Areas both saw firsthand the challenges small businesses face when major corporations are the primary target audiences,” says Casey Rue, the founder and CEO of Common Areas. “The vast majority of software applications and other important tools weren’t being designed or priced for smaller businesses.” REM

REM OCTOBER 2017 39

THE PUBLISHER’S PAGE

By Heino Molls

R

MARKETPLACE

eal estate commissions have been debated for more years than I can remember and I can remember a long time. I have been watching this business for more than three decades.

The five most contentious suggestions and arguments I remember are: • There should be a standard commission rate. A rate that is fixed at four, five or six per cent.

Whatever it is, once the rate is set, it cannot be raised or cut, we must have one rate for all. When that is done everyone will understand it, especially the public. All efforts should be made to educate everyone, especially the public, as to why that rate is set firmly and why

The traditional pay packet it is fair. Setting a standard commission rate will stop sales reps and brokers from in-fighting through discounting or setting higher rates for doing the same job other Realtors do by false advertising that their services are far superior.

The entire industry is cheapened by in-fighting over commission rates. • There should be no commission at all. We should have a flat rate for services. It is only fair to pay equally for the same job regardless of the property price. • There shouldn’t be so many sales reps in the industry. There are too many salespeople scrambling for too few listings. It leads to bad business practices. • There should be two kinds of Realtors. One for sellers and one for buyers. The selling Realtor sets the price, advises on strategies for marketing and helps to arrange the work needed to get the listing ready to show. The buying Realtor does the research and reviews real values and negotiates prices for their client to buy property. One

Realtor cannot be allowed to do both kinds of jobs. Both share commissions equally. • Commission rates should be set by the level of education and years of experience that a Realtor brings to the table. For example, a Realtor who presents an MBA certificate and industry course achievements can charge a higher rate of commission. A Realtor who has 20 years experience can charge a higher rate of commission. By the same token, a Realtor with no experience and no education beyond his or her licensing courses must charge a low rate of commission. A Realtor should serve a fiveyear apprenticeship before being allowed to charge full commission.

But real estate is not the only profession where people think pay packets are wrong. There are many areas of compensation that don’t seem right beyond the world of real estate.

For example, in teaching. We now know the most important years of a student’s academic life are the formidable years of kinder-

garten and primary grades. We also now know the teachers of these grades are the most important in our entire education system. Why are they paid less than those who teach high school and university level studies?

I read this from a magazine piece by Tushar Gandhi: Why is it that dishwashers are considered the lowest on the rung of restaurant staff? One of the first things a diner notices is the cutlery and the dishes on the table. If they are not squeaky clean, then no matter how good the food is or how high-class the restaurant is, its reputation is tarnished. Dishwashers are extremely valuable to restaurants.

Yet they are all poorly paid and there are many restaurants in Canada where waiters don’t even share their tips with the cleaning staff.

Why is it that a hard-working woman at one factory makes minimum wage and yet another woman who works on the assembly line at General Motors makes four times that amount of money? They each

have jobs that require the same skills.

Why does the person who does the hardest and worst job in any commercial establishment, cleaning the toilets, get the worst pay?

They should get the most.

We are so thankful to trade unions for stopping child labour and providing safe work environments for workers, yet today, some people argue that unions have become so extreme and out of control that they are practically enemies to our economy. Why is that?

You think the real estate industry isn’t working well? Think again.

At the end of the day, negotiating your commission rate may be the fairest and most democratic method of establishing your pay packet that there is. Can there be improvements? Absolutely! It just seems that now, real estate commissions are working better than a lot of other things out there.

Heino Molls is publisher of REM. Email heino@remonline.com.

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