October 2018

Issue #352

October 2018

Brian Walker Rocking broker

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

Page 10

Fallout from the TREB data dispute Page 3

Brian Rushton: C21 and Zillow Page 6

A progressive take on seniors buildings Page 12

Why We’re not like the others.

IT’S THE

Opportunities • Global presence in more than 100 countries and territories and 120,000+ agents worldwide.

• Unprecedented, engaging networking events to keep you on top of your game!

The referral network is incredible!

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BRAND • From TV to sports arenas, radio, digital and more, the RE/MAX brand is out there working – for you.

• With over 80 million visits* in the past year, remax.ca is the leading branded real estate website.

• We have the tools: Fee-free leads, automated marketing designs, free customizable website – and much more.

• We offer more training than anyone with RE/MAX University!

Improve your productivity with RE/MAX!

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• Offices are busy, productive and motivated to do more.

• Offering dynamic environments to build up agents and encourage them to achieve their goals.

Once you come, you won’t want to leave!

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• RE/MAX agents in Canada have donated more than $68 million to Children’s Miracle Network Member Hospitals since 1992.

We give back to the communities we live in, and we’re proud of it!

FIND OUT MORE ON WHAT RE/MAX IS ALL ABOUT. TALK TO A LOCAL BROKER OWNER OR VISIT JOINREMAX.CA Each RE/MAX office is independently owned and operated. This advertisement is not intended as an offer to sell, or the solicitation of an offer to buy, a franchise. It is for informational purposes only. If you own a franchise affiliated with another organization, this advertisement is not intended to offer a RE/MAX franchise or to solicit a change in your affiliation. *Based on website traffic from July 1, 2017 – June 30, 2018. Source: ComScore. **MMR Strategy Group study of unaided awareness (first mention recorded).

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REM OCTOBER 2018 3

Fallout continues from TREB data dispute

By Jim Adair

T

he Toronto Real Estate Board’s long-running battle with the Competition Bureau finally appears to be at an end, but there are still a lot of questions about how it will impact local boards and if more legal action is coming.

The Supreme Court of Canada was TREB’s last chance to appeal the Competition Tribunal’s ruling that the board, by not including sold and other data in its virtual office website (VOW) feed, had engaged in anti-competitive acts. By declining to hear the appeal, it means the tribunal’s order of June 2016 stands. TREB must provide VOW feeds with all of the “disputed data”, which includes “archived data, with respect to sold and pending sold homes, withdrawn, expired, suspended or terminated listings and offers of commission to brokers who represent the successful home purchaser,” according to the order.

“We are working with our

members to ensure TREB is in full compliance with the order,” said TREB president Garry Bhaura in a statement. The order only covers TREB, but it’s expected that other boards across the country will review their own rules and start to supply the information as well.

The order stipulates that the board can “not preclude or restrict its members’ use of the information in the VOW Data Feed on any device (including but not restricted to computers, tablets or smartphones), but TREB may limit members’ use to being directly related to the business of providing residential real estate brokerage services.”

Many brokerages began providing online “sold” information as soon as the Supreme Court decision was announced, prompting TREB to issue a warning that “the data cannot be scraped, mined, sold, resold, licensed, reorganized or monetized in any way, including through the sale of

derivative products or marketing reports. The data cannot be used for commercial purposes other than to provide residential real estate brokerage services between a Realtor and a client or customer.

Breach of this by either a member or the member’s clients or customers may result in legal action (including damages) against the member and the cancellation of TREB membership and TREB MLS system access.”

TREB also says that consumers can only access data through a password-protected VOW website operated by a TREB member. While many brokerages initially offered the sold information without the need for registration, most are now complying with this requirement. But the board reportedly sent “cease and desist” orders to some site owners who were displaying the sold data.

Much of TREB’s case against displaying the disputed information hinged on protecting the pri-

vacy rights of clients who did not want sold information published online.

The Real Estate Council of Ontario issued a statement that says, “RECO has received questions about what this means for compliance with advertising requirements under the Real Estate and Business Brokers Act, 2002 (REBBA)…which prohibits the advertising of the ‘sold’ price without the parties having provided written consent to do so.

However, the Competition Tribunal’s decision determined that sold information provided on a password-protected VOW does not constitute advertising, since providing that same information in other formats (such as a Comparative Market Analysis), or providing other MLS information, does not constitute advertising, either.”

The long saga of TREB’s MLS data dispute began in May 2007, when broker Fraser Beach launched realestateplus.ca in part-

nership with BNV, a subsidiary of Bell Canada. Beach downloaded listings from TREB’s MLS system and made them available to the public. TREB shut down Beach’s access to the MLS. Beach took TREB to court, saying the board was discriminating against him because he was operating a discount brokerage. TREB argued that by providing the data to a third party, Beach had breached provisions of TREB’s Authorized User Agreement. TREB won the court case and the subsequent appeal.

Lawyer Lawrence Dale and former TREB president Stephen Moranis operated Realtysellers, a discount Toronto real estate brokerage that suspended operations in 2006. They launched legal action against TREB and CREA and filed a complaint with the Competition Bureau over TREB’s offer negotiation rules. A settleContinued on page 4

Quebec brokers challenge parties during election Brokers want regulations for real estate consultants and home inspectors, as well as a “hard line” on the ban on home marijuana cultivation.

T

he Quebec Federation of Real Estate Boards (QFREB) and its 13,000 real estate brokers are taking an active role in the provincial election, asking the four main parties to outline their positions on issues affecting real estate brokerage and housing.

The QFREB says it wants the next government to provide homebuyers with better support and defined safeguards in place to protect both buyers and sellers. It says it is essential that the next premier commits to appointing a minister responsible for housing in their cabinet.

“Despite the recent review of the Real Estate Brokerage Act, the law still has a number of grey areas that make for an unfair situation and open a major breach in the

general public’s protective wall,” says QFREB president Patrick Juanéda. “The incoming government needs to institute constructive measures to help Quebec catch up in terms of ownership percentages, which are lower here than in other provinces.”

The QFREB is proposing: 1. Guidelines for companies assisting consumers: Some companies provide consumers with real estate sales consulting services similar to those used by licensed Realtors but not all of these companies are audited for compliance with the Real Estate Brokerage Act (REBA), says the federation.

It says although QFREB respects the right of consumers to buy, sell or rent property by themselves, “it is essential for the Office de la protection du consommateur (con-

sumer protection bureau) to oversee and regulate such companies to make sure Quebecers using their services are aware of the fact that they may not be protected.”

2. Marijuana growing in the home: The federation says its members “have started noticing multiple problems as a result of home-grown marijuana. In order to avoid numerous problems, notably the spread of mould, which can have major impacts on human health and the resale value of properties, the QFREB is asking the political parties to maintain a hard line on the ban on home marijuana cultivation.”

3. Co-ownership reform: The rights, powers and obligations of joint ownership condominiums need to be regulated, says the federation. “The QFREB feels that it is

crucial for the next government to commit to re-introducing the provisions of Bill 401, notably to ensure better management of contingency funds.”

4. Oversight of building inspectors: QFREB says brokers see a lack of consistency in the inspection process “and the negative impacts that the absence of professional oversight is having on consumers, whether they be buyers or sellers.” It says the uniform regulation of building inspection is needed to safeguard the quality of training and to standardize building inspector expertise.

5. Institution and maintenance of government programs: “There are countless homeowners held hostage by invasive species like Eurasian water-milfoil, dry-rot fungus or by major construction prob-

lems like pyrrhotite,” says QFREB. It is asking the next administration to implement new government programs and maintain existing ones to provide some financial assistance for homeowners confronted by these issues.

The federation is concerned that the homeownership rate in Quebec is just 61 per cent, considerably lower than the Canadian average of 68 per cent. It says it is important to reduce that gap, and one way to do so is to support current owners.

In addition, the federation is calling for the government to reimburse the welcome tax for first-time buyers and extend the Tax Credit for the Upgrading of Residential Waste Water Treatment Systems and the RénoVert Tax Credit.

REM

4 REM OCTOBER 2018

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

C

IR Realty, Alberta’s largest real estate brokerage with 12 offices, says it is moving away from traditional real estate company marketing by focusing on the individual excellence of its salespeople. It says the traditional brokerage mandate allows its salespeople to use only company-created marketing pieces, including for sale signage, but consumer research shows that “people choose to work with a Realtor not because of the brokerage or brand they work for, but because of who that Realtor is as an individual.”

The company has created

several in-house, proprietary technology systems to help Realtors customize their marketing materials. It also expanded its in-house marketing team to seven people.

“Every buyer and every seller has unique needs. They also have different personalities and different backgrounds,” says Lindsey Smith, co-owner of CIR. “If we force Realtors to represent themselves the same way, and use one-size-fits-all marketing designs for their listing advertising, how are we honouring the individuality of our Realtors or their clients in a transaction?”

■ ■ ■

Lindsey Smith

Public relations professional and third-generation Realtor Tanis Sullivan has joined Angell Hasman & Associates Realty of West Vancouver.

“I’ve known Tanis for several years through her work in the luxury automotive sector and have always been impressed with her skills, professionalism and

strong work ethic,” says Malcolm Hasman, partner at Angell Hasman & Associates. “She’s a welcome addition to our organization and I’m confident she will be extremely successful in her new role marketing some of the region’s most exclusive real estate properties.”

Sullivan brings two decades of public relations experience to the Angell Hasman & Associates team. As the owner of the boutique public relations consultancy, Tanis Sullivan Communications, she has a long history of marketing luxury brands. Prior to joining Angell Hasman, she also partnered with many top Vancouver real estate developers, including Naikoon Contracting, Lanstone Homes, DMRC Properties and Concord Pacific Group to position and market their brands and individual properties.

■ ■ ■

Exit Realty Corp.

International recently announced a plan to enlist the help of an associate in each of its brokerages to act as that loca-

tion’s “engagement leader”, building on the company’s culture of mentorship, to spread the word about Exit’s technology to every associate in the system.

“I travel throughout our company and personally show our associates how to use our resources. What I experience is that our agents thrive when we walk them through the use of our tools hands-on,” says Annette Anthony, the company’s vice president of technology engagement. “The challenge is, one person can’t possibly touch every agent and stay connected with them over time. Rather, what we need is an army of associates with a heart for helping other agents succeed. These associates are our engagement leaders.”

■ ■ ■

Real Property Management (RPM) recently welcomed Feras Ghesen to its network of franchisees. Ghesen is opening Real Property Management Progressive in New Westminster, B.C. Ghesen entered the property management business with his wife, Nasreen, in 2009 when they purchased their first investment property. Since then, they have built their portfolio in both the residential and commercial sectors. Ghesen has led multi-million-dollar projects and “achieved exceptional results,” the company says.

During his first three months in operation, Ghesen plans to add 20 properties to their portfolio.

“Feras brings a wealth of experience in operations and management to the Real Property Management family,” says Kap Hiroti, managing director at Real Property Management. “His approach to the business of property management is both professional and personable.”

■ ■ ■

Antonio Bellano has joined Avison Young in Vancouver as principal and practice leader, B.C. project management. He will focus on expanding the firm’s project management service line offering throughout B.C. and beyond, the company says. He brings more than 20 years of commercial real estate experience to Avison Young, most recently as vice president of property development with Gateway Casinos & Entertainment.

During his career, Bellano has overseen the project management, development, planning and delivery of resort, hotel, restaurant, retail and casino properties in Canada, the U.S. and Mexico, including tenant-improvement and new-construction projects.

■ ■ ■

Correction: An item in the August issue stated incorrectly that Royal LePage Burloak is based in Oakville. It is located in REM Burlington, Ont.

Fallout continues...

Continued from page 3

Feras Ghesen

Antonio Bellano

Tanis Sullivan and Malcolm Hasman

ment was reached but then Dale and Moranis launched a new lawsuit against TREB and CREA, as well as members of the Board of Directors and senior staff of both organizations, claiming breach of the settlement agreement. That action is still ongoing.

Dale and Moranis also tried to partner with Bell to relaunch Beach’s site in October 2007, but TREB cut off their MLS access as well, resulting in more legal action and more complaints to the Competition Bureau.

The bureau finally filed its complaint against TREB in 2011.

Beach and Dale were both recently quoted stating that now, with the information available on all websites, they have lost any competitive advantage they once had.

Moranis, along with Ryerson University professor Murtaza Haider, now writes a weekly real estate column for the National Post. After the Supreme Court announcement, they wrote that TREB is still “imposing unproductive constraints on the use of data by limiting its use to providing ‘residential real estate brokerage services between a Realtor and client

or customer’. TREB’s lack of imagination and initiative are preventing innovation and restricting consumer choices.”

TREB says it is now reviewing the VOW agreement, buyer representation and listing agreements “in light of our obligations under the order and privacy laws and will provide updates in due course. We are also considering whether changes are needed regarding how long listing photos should remain active on a broker’s VOW website after the sale of a property has REM been completed.”

6 REM OCTOBER 2018

THE GUEST COLUMN

By Brian Rushton

E

arlier this year, Century 21 Canada announced an exciting partnership with Zillow, the largest online real estate network in the U.S. We’re thrilled to lead the way as Zillow’s first Canadian partner.

However, often with innovation and change comes uncertainty, and we know many of you have questions around what Zillow coming to town means for us, our clients and the industry. So, I want to tell you why we are partnering

Century 21 and Zillow with Zillow and clarify a few major misconceptions and inaccuracies I’ve heard bubbling within the industry.

First and foremost, Century 21 Canada’s brokers and agents serve home sellers and home buyers and when new innovations that can improve the home selling and buying experience come along, C21 embraces those innovations.

Zillow is by far the most recognized real estate portal in the U.S. and has a great many buyers searching for real estate from other parts of the world (over 100 million international visits last year) as well. By partnering with Zillow, C21 agents will expose their listings to a much wider audience, at no cost.

Zillow Group’s brands receive an average of 186 million unique users every month. Zillow has the tools, resources, brand recognition and massive traffic that will bring

unprecedented global exposure for C21 listings and our agents. This is a huge advantage for us. We are very excited about this partnership and I know our clients and home sellers will be too.

What’s more, despite the false statements I’ve heard from some of my peers in the industry who are currently not partnering with Zillow, agents do NOT “buy” back leads on their own listings. C21 listing agents – and all listing agents on Zillow for that matter – will be prominently displayed on their listing. Brokerage information as well as specific information about the listing agent is always featured on the listings. It also does NOT cost money to put a for sale listing on Zillow.

So why not just use Realtor.ca?

Well, Realtor.ca is a great portal that we all own and CREA operates on our behalf. But it has never

been a stellar consumer experience and is certainly not anywhere near as well-known outside of Canada as Zillow. And if all the listings from all 127,000 Realtors in Canada are on it – what differentiation is it providing to you when you’re competing for your next listing?

C21 has always led the way when it comes to technology innovation. Today, for example; we don’t simply provide our agents a list of vendors to choose from for full websites or CRM or marketing tools. We believe to provide the most consistent and professional consumer experience, every C21 broker and agent should have all the tools, tech and training they need to be successful – right from the day they start until the day they retire.

This fall C21 is launching REW (Real Estate Webmasters)

websites and blogs with fully integrated CRM and marketing centre (with hundreds of instantly customizable print, email and social media marketing pieces) for every C21 broker and agent across Canada. It’s all included at no extra charge.

Instead of relying on simple DDF (data distribution facility) for our broker and agent sites, C21 Canada has invested in direct data feeds from every MLS in the country to ensure the most timely and accurate listing data and full IDX (internet data exchange) feeds where possible that provide far superior data sets.

So, what’s the downside of partnering with Zillow and investing in such a vast array of other tech and training differentiators for C21 brokers and agents? Nothing.

Unless of course, you’re not a C21 broker or agent.

Brian Rushton is executive vice president of Century 21 Canada.

REM

Kith and kin: Metes and boundaries I

n the last of this three-column series about working with family and close friends, let’s delve a little into boundaries.

Many of you (but sadly, not all) would agree that it’s arguably in poor taste to blatantly prospect at family gatherings. However, during such events, if a relative seeks your advice, and you’re open to helping them, prior to accepting the agency, clarify your policy of no discounts. If

Cover photo: ELIJAH SHARK

Don’t wait until a perceived transgression occurs and someone is upset, either expressed or suppressed. Obviously, all industry rules, codes of ethics, standards of practice and provincial statutes still apply, but a healthy working relationship is more than that. A personal connection is great, but to avoid damaging a familial relationship, it’s really important for both sides – prior to putting pen to paper – to recognize what would constitute inappropriate behaviour, unreasonable expectations and unwelcome trespass.

In your business life, disappointments will be forgiven or forgotten fairly quickly. Aggrieved clients will vote with their feet and never do business with you again. They’re

President & CEO WILLIAM MOLLS will@remonline.com

Editor JIM ADAIR jim@remonline.com

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

Production Coordinator JUDY CUPSKEY production@remonline.com

Brand Design SANDRA GOODER

Art Director LIZ MACKIN

Graphic Design SHAWN KELLY

Questions or comments? info@remonline.com

completely gone from your life.

However, family will always be family. You can’t divorce a sibling.

When boundaries or expectations are not clearly understood or reciprocally respected, the result could ultimately be disastrous. For example, prior to accepting a family member as a client, your professional availability should be established.

Advise them that unless it’s an emergency – by your definition – they may contact you with business questions or concerns only during regular business hours. Or you could insist that when you have a report ready, you’ll contact them.

Treat all your clients, be they family, friend or stranger, in the same professional manner and expect to be treated the same in

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Phone: 416.425.3504 www.remonline.com

REM is published 12 times a year. It is an independently owned and operated company and is not affiliated with any real estate association, board or company. REM is distributed across Canada by leading real estate boards and by direct delivery in selected areas. For subscription information, email distribution@remonline.com. Entire contents copyright 2018 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

return. Yes, it may be a little softer around the edges with family, but it’s a good idea to stay within your preconceived and usually unwritten boundaries. It’s not always possible, though, because regardless of the relationship, some people will cooperate and others won’t. But at the end of the day, you want your family to be happy.

I believe that people are fundamentally honest and trustworthy, hence I trust people until they give me a reason to do otherwise. And fortunately, I’m usually trusted in return. Life is definitely easier when you’re so blessed. More often than not, you get what you give and reap what you sow. I earned the faith of Continued on page 15

Printed by Metroland Media Group, Ltd. A certified FSC® Printer

By Ross Wilson

they grumble, save everyone a lot of time and frustration by politely refusing their business right then and there. The personal relationship must come first. By treating your business relationships with family professionally, you’ll improve the odds of keeping the personal element intact.

Early in a relationship with stranger clients, you normally delineate mutually unambiguous boundaries as determined by personal feelings and social and business mores.

Since boundaries with family can naturally be blurred, it’s best to establish similar clear limitations, professional boundaries and expectations before entering into a principle/agent contract with loved ones.

This is home.

It’s a place called comfort.

It’s called home for a reason. It’s the place where your clients feel secure, happy, and at peace. We understand this. Through expertise and insight, our job is to help make the wonderful idea of home a beautiful reality. For every client, for every home.

pillartopost.com Each office independently owned and operated.

8 REM OCTOBER 2018

A seller with an honest streak Naturally, sellers prefer not to reveal any problems. After all, they’re motivated to sell.

Sometimes, however, they can be incredibly forthcoming. By Diane Slawych

A

s a potential homebuyer, I want to know as much about a property as possible, and that includes any problems with the place. The fact is, most homes have some issues and when you know what they are, you’re better prepared for any expenses down the road.

Naturally, sellers prefer not to reveal any problems. After all, they’re motivated to sell.

Sometimes, however, they can be incredibly forthcoming, as I discovered earlier this year when I asked a real estate agent to show me a few homes in a city in southern Ontario.

When we pulled up to the third property on our list, the first thing I noticed were the multiple railway tracks – just meters away from the house. Seeing this, I decided it probably wasn’t for me.

I prefer quiet. But what cemented my opinion was what the home-

owner later revealed.

“I didn’t know you were coming,” a woman said after opening the front door. My agent quickly showed her the confirmation on her cell phone and we were welcomed inside to have a look.

But there wasn’t much to see.

The home was tiny, only 600square-feet. The one and only bedroom, which would’ve made up a third of the house, was off limits because the woman didn’t want to disturb her husband, who was in bed sick.

This was perfectly understandable, but it got me wondering about the health of the neighbourhood. Someone was sick in bed at the first house we visited not far away. Was it a coincidence or was there something in the air, or the water that was making people ill?

Maybe that factory just beyond the railway tracks was to blame.

From the house there was a clear

view of its chimneys, belching thick plumes of grey smoky pollution into the sky.

I surveyed the small living room and wondered where I could possibly fit my office. That’s when the homeowner revealed what she obviously considered one of the home’s finer selling points. “We haven’t had a flood in two years,” she chirped. She made it sound as if floods were a regular occurrence.

“Oh, that’s good,” I chimed, somewhat hesitantly.

There wasn’t much room to move around in the kitchen. I glanced out the window that overlooked the railway tracks. “If you’re worried about the trains, you don’t even hear them after a while,” she explained, as if reading my mind.

“It’s nice,” I said, feeling the need to compliment the homeowner, “but it’s a bit small for my needs.” I returned to the specs –

newish roof, no basement and a listing price just shy of $200,000, which seemed high for a place that was smaller than some hotel rooms.

Not much left to see, so I head outside. Sensing my growing disinterest and perhaps fearing she was about to lose a chance to sell her home, she followed me out.

“These trees are beautiful in the spring,” she said enthusiastically, pointing to the edge of her property, which was lined with a row of tall trees with bare branches. I surveyed the street of similarly sized single-storey detached houses when the homeowner offered what may have been her coup de grace. “You know,” she said, “we are the only house on the street that hasn’t been tagged with graffiti!”

If this was an attempt to highlight the home as some sort of gem in the neighbourhood, it had the

opposite effect. I pondered why all the houses were being vandalized.

And who’s to say this one won’t be targeted in future?

I hadn’t actually noticed graffiti on any of the other houses.

Maybe it was around the back or has since been removed. In any event, the thought of vandalism was worrying.

By now I was standing on the sidewalk ready to leave. But where was the agent? Oblivious that I was no longer interested, the homeowner had taken her around to the side and now they were crouching on the ground inspecting the crawl space! Good heavens! Could she actually be interested in this property or was she being polite?

Back in the car, I shook my head in disbelief. “That was quite the reveal,” I said. We both laughed. It was our first time out together and we hadn’t arranged any clues in advance to signal when I was ready to leave.

Oh well, I thought, looking on the bright side, at least she didn’t ask us to remove our shoes. It would’ve been a shame to get dog hair all over my brand new black Tilley socks. REM

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Remember, until very recently (and for 20 years), I was an active and highly successful real estate agent myself, outperforming 99.9% of all full-time real estate agents in North America even though I only worked at it part-time. For each of my last few years as an agent, I reduced my work hours devoted to real estate, yet kept my income at its peak level, and retained my “lofty perch” in the Top 10 of the entire RE/MAX® organization worldwide out of over 100,000 Real Estate Agents.

As you may know, I was twice the #1 RE/MAX agent in the world.

I’ve sold over 8,000 homes and generated more than $2 Billion in volume. I worked fewer hours than 90% of these agents, but earned more than they did. (I chose to spend lots of time with my wife and three children.) The

fact is, I enjoy this business; writing, teaching, coaching. The philosophy I share with people is that you can “have your cake and eat it too” - the real estate business done “smart” can provide you with a big income, pleasant work, prestige in your community AND plenty of time for a life too! You do NOT need to sacrifice your family or your health for the money.

How do I know this?

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10 REM OCTOBER 2018

Brian Walker closes last NRS office

Veteran broker says running a small shop independently is getting tougher in this brandconscious society. By Don Procter

I

t is a brand-conscious society, Brian Walker will tell you.

That’s why the 61-year-old broker closed the doors a year ago on his long-time brokerage NRS – a name once recognized as one of the largest realty companies in Canada – and re-opened shop as a Re/Max West Realty office.

The move to Re/Max West was a no-brainer, says the Richmond Hill-Ont.-based broker. “What’s happened in the brokerage business is that the weight and expectation on brokerages has become greater and greater as the margins these brokerages collect dwindle,” he says. “It was becoming a ball and chain to run a small office,” which is what NRS had become. “In this business you have to go big or go home.”

NRS was not always small.

When Walker opened NRS Select as a franchisee in 1991 the company “had the systems in place and the power to move forward.” NRS (National Real Estate Service) had about 7,000 agents at its peak. In the 1970s it was identified with actor Raymond Burr, who played lawyer Perry Mason, and who also did commercials for the firm.

By the mid ’90s, however, the franchisor was in a tailspin and two years after West Coast investor Ron Dixon took the helm with an ambitious restructuring agenda, the company was dead.

Walker stubbornly hung onto the name at his realty office in Oak Ridges – a small community at the north end of Richmond Hill – even when he was confronted in the mid-2000s by a B.C. broker demanding he stop using the name because he claimed to have the rights to it under the logo National Relocation Service.

“I didn’t figure I would be

carrying on for long but lo and behold, I kept the name (until 2017).”

Last August he signed on as a broker under the banner of Re/ Max West Realty. “They totally refurbished my office, allowing me to work at the same address with the same phone number.” And he kept his wealth of contacts – integral to his continued success.

“In the last year we’ve been able to up our game because we have the bigger brand and we’re in a brand-conscious society.”

He says at NRS it had become difficult to keep up with fast-paced technological and regulatory changes. A case in point is FINTRAC compliance requirements, which have become “increasingly onerous” and owners don’t see a payback.

The Ontario Real Estate Association has been “pretty effective” at addressing many government initiatives but government keeps knocking at the door says Walker, who is a past president of the association.

For example, he says the Ontario government’s minimum wage hike on Jan. 1 “puts a huge burden on brokerages operating from 9 a.m. to 9 p.m.”

Whenever there was a change in the industry, Walker’s office, like many small brokerages, was left scrambling to adapt.

“It was easier to be a Mom and Pop shop” in the 1990s, he says. “Now when there is a technological glitch…when your computer goes down you have this expense of pulling your tech guy in.”

He forged on, however, in part because his secretary – “the anchor of my brokerage” – took care of everything from booking appointments to operating Lone

Wolf (back office accounting software). “That is unheard of now. I was spoiled,” he says. After 17 years his secretary retired, influencing his decision to close NRS Select.

He says to replace experienced personnel in today’s market takes time and training can be costly for smaller brokerages. At Re/ Max West his transition has been smooth because the company provides administrative needs and has someone continually recruiting agents and training staff for its 10 offices. “As an office for Re/Max West, my company hands off all the administrative duties to them. It is a well-oiled machine.”

He says while he has to pay for the Re/Max West banner, the price is “not that high” for the services provided. Fees he paid when at NRS for accounting software and an answering service alone were significant.

Walker says another reason small independent brokers might consider moving to a big brokerage is if they are extensively involved in other time-consuming activities. For example, he was the president of his local board in the 1990s and president of OREA in 2007 and then spent four years on the CREA board. “It takes a lot of focus away from running your brokerage, from selling real estate.”

He believes there is room for agents who don’t heavily rely upon the latest technology or social media to drum up business. “Skills of good old-fashioned networking and belly-to-belly contact are still important. Instead of things going one way, things are just more diverse.”

Walker sees himself in the industry for years to come. “The challenge is keeping aware of

Brian Walker (Photo: Elijah Shark)

changes. I enjoy being a sponge . . . keeping up on things.”

When the broker is not selling real estate, he is often picking leads and strumming rhythm on his Strat or Tele with his band Shakey and the Bluenotes – a group made up of Realtors that has raised about $60,000 over the past dozen

years for the OREA Realtors Care Foundation through an annual musical jam.

This year the jam will be held in late November at Lee’s Palace on Bloor Street in Toronto. “At this stage in my life I am pinching myself that I am getting out and doing this. It is still a novelty,” says Walker. REM

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12 REM OCTOBER 2018

A progressive take on seniors buildings

As long as one occupant is 55+, people of any age are allowed to live in this new seniors community.

But investors and speculators are not welcome. By Danny Kucharsky

A

Vancouver seniors community is giving new meaning to the outdated concept of old folks homes while stopping real estate speculators in their tracks.

Opal, a 130-unit project that is set to open in early 2019, provides an “aging in place” concept that allows older adults to go from independent to assisted living to licensed complex care as needed, all in a single place.

In addition, the development will have an intergenerational living approach in which family members from different generations can live together.

One occupant per unit must be 55 or older.

“We are hoping for this vision to become as common as condominiums have become in place of single-family homes,” says Candy Ho, co-founder, director and vice president, brand development and communications at Element Lifestyle Retirement, the Vancouver-based company that is developing Opal.

The idea is “to contribute and add value to this industry by building according to a more progressive, innovative model instead of the outdated 60-yearold model of old people living with old people,” says Ho. Instead of just offering rentals or condos as is common throughout the industry, Opal is operating with a hybrid model in which both condos and rentals are being offered. It will have 44 residential condominium units, 56 rental units and 30 complexcare units.

Element has also taken steps to avoid the empty-condo syndrome that is prevalent in Vancouver. Investors and speculators are blocked from

buying at Opal.

Condo buyers put down 25 per cent deposits and sales are not finalized until buyers move in. Buyers are screened for their levels of health and wellness and there’s a mandatory service agreement that requires buyers to be occupants.

“We are actually trying to meet (people’s) needs and desires and allowing speculators to hold empty units for years that could be beneficial to others defeats that purpose,” Ho says. When units are empty “there’s no life, no vibrancy and all the programs we put in place will not be used.”

Element only offers Realtors referral fees instead of commissions. That’s because “nobody can understand what we’re offering as well as we do,” she says. “It’s really complicated.

We can’t afford to have it misrepresented.”

Although it is not due for completion until next February, 91 per cent of the condos have been sold, 98 per cent of rental units are reserved and there is a list of people who may need licensed care. That’s far ahead of the industry average, in which it typically takes two or three years for a retirement residence to fill up after opening.

Instead of an industry average resident age of 87 plus, 30 per cent of Opal buyers or renters are in their 50s, 34 per cent are in their 60s and 30 per cent are in their 70s, with the balance split between older seniors and younger grandchildren intending to reside on short-term stays.

Condos sell for $1,250 per square foot on average, with prices ranging from about $750,000 for a small one-

Opal is a 130-unit project scheduled to open in 2019.

bedroom to about $1.9 million for a three-bedroom unit.

As with other condos, owners pay property taxes, utilities and condo (or strata) fees. However, they also pay a mandatory additional membership fee, akin to being in a private club, that covers a full recreation, wellness and lifestyle program and 30,000 square feet of amenities. It costs $1,188 per month for the first occupant and $658 monthly for each additional occupant.

The program includes instructor-led exercise, music and experiential culinary programs such as wine tastings and pizza making from scratch. Facilitated childhood educators programs will bring together seniors and children so that seniors can pass on life stories and experiences and teach traditional skills, while their children can pass on their expertise on topics like social media. There are also recreational group outings and private transportation service for personal appointments.

Rentals go for $12 per square foot and include meals, recreation and outings.

Opal spans a city block, on King Edward Avenue near

Cambie Street and is comprised of three inter-connected buildings, one with six storeys and two with four storeys each.

It’s located on the Cambie Corridor, an area undergoing rapid densification in which condo developments are replacing single-family homes.

Opal’s site once contained eight single-family homes.

Element is also developing Oasis, a planned 950-unit development in Langley, B.C. that will include four 20-storey towers and three four-toeight-storey buildings to be built over the next seven to 20 years, and Aquara, a 161unit, intergenerational aging-inplace residence near downtown Victoria.

Ho notes a “silver tsunami” is coming and there are already huge waiting lists for licensed care for seniors in non-profit, government funded or private facilities. She says it took 10 years to get her late father-inlaw, who had Parkinson’s and Alzheimer’s, into a licensed care facility – which ended up being a three-hour drive away from family. “That’s the situation most people face because of the lack of supply.”

Candy Ho

Ho, who grew up near the Opal site, originally came up with the idea for the development while looking for a spot for her parents, including her mother who has Parkinson’s disease, to age in place. (Ho’s father, Element president and founder Don Ho, pioneered the aging in place retirement living concept.)

Ho hopes the aging in place/ intergenerational living concept of seniors housing will grow but admits the business model is very complicated. “You have to have the will to manage complexity and not be primarily only profit driven.” The desire to both contribute and to have sustainable profits should be about equal, she says. REM

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REM OCTOBER 2018 15

Unconventional training leads to success Carol-Anne Schneider has brought in experts to coach agents about everything from goal setting, mortgage financing and cold calling to podcasting, nutrition, neuro-linguistic programming, feng shui, vision board creation and how to rid a house of ghosts. By Susan Doran

D

o you need a boost to your life and your business? Could you use help with setting and achieving goals?

Do you dream of wearing a crown?

No worries. Assistance is available via the often-unconventional business and personal development coaching services supplied through Carol-Anne Schneider of Realty Executives Plus.

At the start of this year Schneider, manager/trainer for Realty Executive Plus’s five offices, was instrumental in opening a 3,000 square-foot agent success centre at the brokerage’s Mississauga, Ont., headquarters with the help of Scott Gilmour, broker/owner and regional developer for franchise sales in eastern Ontario.

The centre is open not just to the brokerage’s own sales reps but to the entire industry.

“All brands are welcome.

Share and support is the mandate, aligned with my philosophy that there is enough business for everyone,” says Schneider.

“We have created a really neat culture here. I love the idea of collective sharing.”

Schneider has taken a lot of master-mind training, particularly with speaker/coach Jon Cheplak. This popular form of success training inspired her to put her own twist on the concept when mentoring and training agents and connected her to a network of like-minded entrepreneurs. Eventually she suggested her brokerage start its own agent success centre, and “then the magic happened,” she says.

She strongly believes that being authentic and balancing health and wellness are just as important for business as making a sale. Many of the sessions she hosts focus on balancing work and personal life. Both one-onone mentoring and group training for up to 50 or more people are available.

So far the success centre’s group offerings have ranged from

Carol-Anne Schneider

the traditional to the wacky and wonderful. Schneider has brought in experts to coach agents about everything from goal setting, mortgage financing and cold calling to podcasting, nutrition, neuro-linguistic programming, feng shui, vision board creation and how to rid a house of ghosts.

Yes, you read that last one right. A paranormal expert provided tips on how to sell haunted houses and eliminate negative energy and spirits. The agents in attendance were sent home with a ghost-buster spray that contains essential oils – although word is that a bell or sage smoke might also do the trick.

“What can I say? I call them in and it works... There’s something wrong with some houses,” says Schneider. “My dad and son think I’m crazy.”

She doesn’t seem to mind and doesn’t elaborate on her family’s thoughts on another session that involved empowering agents by giving them a “royal day” complete with a tea party and crown.

Helping people balance mind, body and business is all

part and parcel of what she refers to as the Carol-Anne Kool-Aid. “When you believe in someone they believe in themselves.

It turns things around,” she says.

“It’s gratifying to watch someone go from making $30,000 a year to $250,000 or more. What we discovered is that the agents willing to be gutsy enough to talk with us about what they really want in life, they skyrocketed...Once you start feeling good about yourself, the business part is fairly easy. You just need someone to keep pushing you along.”

Schneider explains that she has always had a nurturing personality, been an avid learner and had an interest in topics that are outside the box and based on personal development.

“I lead from my heart. I wanted to be a social worker, but mom said I would come home with everyone’s problems. But I do the same thing with real estate!” she says. “I get to be a mother hen to all these Realtors.”

She came to Canada from Scotland as a toddler 50 years ago, at a time when her father

was able to secure a mortgage with just a handshake. As a young adult she “stumbled” into real estate sales, following a job as a real estate secretary.

“The market was booming but the moment I got my license it died,” she says. She left for a bit to sell newspaper advertising to Realtors and then returned.

For about 25 years she’s been a successful agent with the Realty Executives’ network, having worked over the years at various of the organization’s offices.

Training, marketing and technology are key mandates of the Realty Executives International network’s flexible-fee structured global brand.

There has been a lot of heartache in Schneider’s life – several family members died young, including her sister. She’s well aware that she has been forever changed and shaped by these tragedies.

“It’s a club you don’t want to be a part of,” she says. “I have a different outlook on life because of it. It puts things in perspective. I try to live extra for them.”

For years she did grief counseling for young adults. Then as

now, she was gratified to see the transformation and progress her clients made with time and support.

She recalls a recent Realtor client who was determined to work exceedingly hard so that he could make enough money to take the entire summer off to spend time with his young sons.

With the help of the success centre he did it, Schneider says, tearing up.

“I told him he’s the greatest father on earth,” she says.

She is also impressed by the snowballing business success of some of the office millennials.

In her opinion the centre itself is inspirational, complete with lots of natural light and such amenities as spacious meeting, training and lounge areas.

“It’s got good energy,” she says.

While some people may not view personal growth as a game changer business-wise, Schneider is a believer. She has seen the results first-hand, she says.

“My highest reward is helping to make a difference in someone’s life and getting them to a place they didn’t think they could reach.” REM

Kith and kin Continued from page 6

my clients – kith, kin and otherwise – by providing honest, dependable service and by trusting them. Of course, I was betrayed occasionally; it’s hurtful, but it happens. However, I never betrayed the trust of a client, for without integrity, you have nothing.

In most situations, your relatives and close acquaintances will hire you. And they’ll do so for one chief reason – they trust you to take extra special care of them. They know in their heart that you’ll not allow them to be cheated, that they can sign documents without worry.

Key decisions during the home transition process are made much less stressful with the thoughtful loving guidance of trusting counsel.

Again, what is that trust worth? A lot. And it’s worth your full fee.

“A happy family is but an earlier heaven.” George Bernard Shaw Ross Wilson is a retired real estate broker. He has extensive experience as a brokerage owner, manager, trainer and mentor. His book, The Happy Agent – Finding Harmony with a Thriving Realty Career and an Enriched Personal Life is available where print and e-books are sold, including the TREB, BREB, RAHB and OMDREB stores. Visit Realty-Voice.com.

REM

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That’s the sign of a RE/MAX agent.

18 REM OCTOBER 2018

Selling your real estate brokerage in 2018

By Don Kottick

L

ike most things in our world today, the environment for mergers and acquisitions in the real estate industry is in a state of flux.

Mergers are described as an amalgamation of two companies on near-equal terms forming into a new legal entity. In reality, this does not happen – one company is always the dominant player, even though it is still called a merger. So, the discussion is really all about acquisitions, but M&A has a better ring to it.

In the United States, after a number of active years of buying and selling, the two biggest acquirers of real estate brokerages – NRT (Realogy) and Home Services of America (Warren Buffet’s Group) appear to have applied the brakes to their growth spree. These two large entities competing for brokerages were largely responsible for

driving up the multiples being paid to sellers. Multiples are a common methodology used to determine the fair selling price of a brokerage, which calculates a multiple of EBITDA (earnings before interest, taxes, depreciation and amortization); quite often the EBITDA is averaged over two to three years depending upon a number of factors.

With both these giant players easing out of the competition, we are going to see some downward movement in the multiples being paid out. The Canadian market usually follows the trend in the USA. The “typical” multiple being paid today lies somewhere between two and four times earnings of a brokerage. The multiple is influenced by the available buyer pool, brand strength, concentration of sales, market conditions, corporate leadership, company culture and the overall competitive landscape.

With John Peyton, the new CEO and president at Realogy Franchise Group, and Adam

Contos named CEO of Re/Max LLC in February, big changes were expected as both these leaders have few ties to past legacy decisions in their respective companies. As a result, there appears to be a détente in regard to the old restrictive policy of not allowing owners to acquire competing brokerage brands.

This fundamental strategic shift will definitely increase the available pool of brokerages for buyers. As a result of this policy change, it is probably safe to assume that Canadian franchisors will soon follow suit and soften their position on this restrictive ownership stance.

Demographically, a large number of owners are starting to prepare for retirement and are looking to take equity out of the company. Traditionally, most buyers were interested in either a full 100-per-cent asset deal or buying the company stock outright for tax reasons.

Peerage Realty Partners has a different view based on Miles

Nadal’s deal methodology developed while in the advertising and marketing space. Historically, Peerage takes a majority stake in the businesses with the seller retaining some of their equity.

This approach allows the seller to take some money off the table and still remain active in the business subject to their personal aspirations. The sellers are then provided with the financial and business bench support to further grow and expand the business. Sellers need to decide if they want to sell to investors that are new to the real estate business or if they want “professional partners” that have shared goals and will work towards a common outcome.

During the Deal Maker Conference in Denver in August, Steve Murray, CEO of Real Trends, revealed that private equity firms have started to seriously look at the real estate industry, mostly due to the success and media exposure from Redfin, Zillow and Compass serving up their massive market valuations.

In Canada, we are not seeing the high multiples being paid for technology-centric real estate operations, as many often have no clear path to profitability, and also due to our smaller market size.

In summary, if Canadian franchisors remove the ownership restriction for different brands, this should translate into a larger pool of available brokerages for buyers. Logically this change makes sense, as you would think a franchisor would want the best operators in their organizations, even if they operate different brands. Many owners have retirement in their purview. Combined with the slowing market conditions, tighter profit margins and this possible policy change, the Canadian M&A real estate market is very likely going to be very active in the years ahead.

Don Kottick, FRI, is executive vice-president, corporate development for Peerage Realty Partners, which is the partner company for StreetCity Realty, Fifth Avenue Sales & Marketing, Chestnut Park Real Estate and Baker Real Estate.

Kottick is currently director at large for CREA, international director for FIABCI and a national director for the Real Estate Institute of Canada.

REM

Pitfalls of gifting a home to your child

By Natalka Falcomer

W

hile mixing family and money is a cardinal sin, it’s being done in Canada on a daily basis. The reason: the Canadian housing market is so hot that millennials can’t touch it alone. Parents are “gifting” or selling their rental properties to their children for a nominal value. While this is a valid strategy, there are several important factors to consider.

If you are a parent of more than one child, you may want to consider the potential disputes that will invariably arise if you decide to sell or “gift” a home to one child

and not the other. To prevent disputes over whether or not the non-receiving child was fairly compensated or whether or not the sale was fair, it’s imperative that the property be evaluated by at least three different independently chosen appraisers.

With several appraisers providing an independent opinion, it would be difficult for the siblings to claim that the property was undervalued. What’s more, if the child is actually paying the fair market value for the home, several appraisals will help refute future claims by the taxman that the value of the home and, therefore the adjusted cost base (an important component of determining the child’s capital gains, as discussed below), was lower than what the child paid.

If you give or sell an asset to a child, you’ll be deemed to have sold the asset for fair market value.

This is true even if you sell the

property for much less. For example, if a parent “sells” to their child a property that isn’t a principal residence for $1, and the true value of the property is $1 million, then the parent will have to pay tax as if the home sold for $1 million and not the $1.

The parents may use the principal residence exemption to shelter the tax on the sale to their child, however, this only “pushes” the tax issue down the line. Using our earlier example, the child who “bought” the property for $1 will be hit when she sells the house.

Assuming she sells the home for $1.1 million, she will pay a capital gain on $1,099,999, which is the difference between the amount paid ($1), also called the adjusted cost base, and the sale price ($1.1 million). This is in stark contrast with the amount that would’ve been taxed – $100,000 – if she actually bought the home for its fair market value (the difference

between what the house was truly worth at the time it was sold to the child ($1 million) and what it sold for ($1.1 million).

In order to avoid significant tax implications, parents could sell the properties to their children for fair market value and take back a mortgage on the property and waive all payments. This approach allows for the deferral of a capital gain on the properties of up to five years. The parents may also revise their wills to state that these loans be forgiven upon their death. This approach further means that the adjusted cost base is higher, causing the capital gain to be reasonable for the children if they sell. Despite this more favourable approach, there are several other estate and tax issues that may arise. Professional advice is advisable.

When selling property to family members, it’s also imperative to stipulate how the property will be shared and maintained. Parents

and siblings may assume that its current use will continue, leading to certain feuds. Consider a family cottage, for example. What happens on weekends? Are all family members able to continue to show up announced? If so, who will be responsible for the maintenance and upkeep of the home? What are the costs involved? These questions must be answered and put in writing to ensure a smooth transaction and avoid the old cliché that one should never mix money and family.

Natalka Falcomer is a lawyer and Certified Leasing Officer who has a passion to make the law accessible and affordable. She founded, hosted and coproduced a popular legal call-in show on Rogers TV, Toronto Speaks Legal Advice. She founded Groundworks (www.groundworksfirm.com), a firm specializing in commercial real estate law, and is the EVP of corporate development at Chestnut Park. REM

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THE GUEST COLUMN

By Joseph Richer “The way a team plays as a whole determines its success. You may have the greatest bunch of individual stars in the world, but if they don’t play together, the club won’t be worth a dime.” – Babe Ruth

T

he heat of summer has thankfully cooled, the Major League Baseball post-season is set to begin on Oct. 2 (without my beloved Blue Jays, unfortunately) and I can safely predict that the ultimate winner of the World Series will be the ball club that functions most effectively as a team, not as a collection of talented individuals.

I’ve been thinking a lot about the importance of teamwork.

When real estate salespeople and brokers take their consumer protection responsibilities seriously, and encourage higher levels of professionalism, it builds public confi-

Make yourself heard at RECO Town Hall dence in the industry. That confidence is further enhanced when the public knows the umpire – in this case the Real Estate Council of Ontario (RECO) – is calling the game fairly and squarely and reminding the competing teams of the rules they must follow. We all have a role to play in strengthening public confidence, and it’s worth discussing those roles from time to time.

Regular face-to-face meetings between RECO and the industry are crucial, which is why my colleagues and I will kick off RECO’s second annual Town Hall tour in Cambridge on Oct.15.

Last year’s town hall events featured discussions on subjects as varied as possible reforms to the Real Estate and Business Brokers Act, 2002 (REBBA), and the work RECO is doing to improve our Mandatory Continuing Education (MCE) requirements for salespeople and brokers.

The industry leaders who attended didn’t always agree with RECO’s policy ideas – or with each other for that matter – but the exchanges were thoughtful and

respectful, and constituted a valuable learning experience for everyone involved.

Overall, I was extremely impressed by the passion I witnessed. Most of the individuals who made their way to the microphones to ask questions called for tougher standards and stricter penalties for registrants who break the rules. They agreed that consumer protection and increased professionalism are shared responsibilities between RECO and the industry, and they know that consumers are more likely to use a registered real estate salesperson when they buy or sell a home when it’s made clear the profession is subject to our Code of Ethics.

I really hope we can carry the momentum we generated last year into this year’s town halls. We want you to know that we’re listening and that we’re open to constructive ideas.

For example: many registrants told us they would like to be able to access RECO’s database of checklists, guides and educational materials even when they aren’t taking an MCE course. Pretty soon, you’ll

be able to do that when the Knowledge Management System component of our Registration Education program is up and running.

Similarly, a number of registrants who attended last year’s town halls said we should offer inclassroom learning options for our MCE program. We’re looking at ways to make that happen that best meets the needs of those interested in classroom programming.

Listening is important, but my colleagues and I will have a lot to say about one of our favourite topics: broker of record accountability and ways that RECO and the industry can work together to “raise the bar” to encourage greater professionalism. I’m confident it will be a useful dialogue.

The town halls serve another purpose as well: generating feedback on key issues that we can provide to the Ontario Ministry of Government and Consumer Services.

Which key issues will we discuss this year? Well, last year’s attendees shared their thoughts about MCE, but a great deal has

happened on that front since then.

RECO is conducting an extensive review and there’s no substitute for in-person feedback. That’s a conversation we need to continue.

And we’re going to focus on the big picture. Ontario’s real estate marketplace is rapidly evolving, which means RECO must also evolve in order to effectively protect consumers in the years to come. The best way to start that process is to ask ourselves some key questions: how we’re doing, where we’re going and how we ought to get there.

The Town Halls may not have quite the tension or high drama of game seven of the World Series, but I am confident they will be highly informative, and a unique opportunity to help shape the future of the organization that regulates the real estate industry.

Teamwork is all about working together towards a shared goal. By working together to advance consumer protection and increased professionalism, I’m sure we can build confidence in the industry.

Joseph Richer is registrar of the Real Estate Council of Ontario. He is in charge of the administration and enforcement of all rules that govern real estate professionals in Ontario.

You can find more tips at reco.on.ca, follow on Twitter @RECOhelps or on YouTube.com/recohelps. REM

Social media is making us antisocial

By Jeff Stern

S

ometimes I wonder if I’m turning into my grandparents. Maybe even my greatgrandparents.

I become more certain of it every time a client calls, leaving me a message to text them. I’m not supposed to call back, I’m supposed to text them. It’s as though people go out of their way to avoid talking on the phone.

Even in a restaurant, I’ll be meeting with someone and notice that all around us, people are not

talking to each other, but are hunched over their phones. This is social interaction in our age.

Social media has made us antisocial, and we’ve lost a lot of our ability for human contact.

Maybe that’s how my grandparents felt when society made the transition from horse and buggy to motorized vehicles. Sure, it was progress, but everyone was suddenly moving so damn fast we lost the ability to stop and look around at the world we were breezing by. We forgot how to sit still and wait.

Now I’m the old-fashioned guy looking around at society, noticing how we’ve lost the ability to interact like humans. I’m totally serious.

Have you ever walked into the middle of a crowded mall and shouted at the top of your lungs,

“Quit your bitching!” or “You’re an idiot!”? It sounds insane, but it happens more than you think.

Before you let yourself off the hook with a “no, I’d NEVER do that!”, ask yourself if you’ve ever said such things publicly online, maybe on a Facebook status or as a comment in a discussion forum.

You’ve seen comment sections – they’re full of comments like this.

And that, my friend, is exactly what you’re doing when spouting off online – you’re beaking off in a crowded mall to complete strangers.

It’s a bizarre phenomenon of our time. When we’re online, we forget that there are real human people on the other end of the screen. We spurt off things online that we would never do if they were in a crowded place with a

megaphone. We’d never say it out in the real world, but we’d say it online. Does this fail to compute for anyone else??

There’s another problem. Our words are only 10 per cent of what we communicate. The other 90 per cent of what we’re saying comes from our tone of voice, facial expression and body language, none of which can be perceived through a text.

Have you ever tried using every tenth word in a conversation?

There … … …. … … ... …. misunderstanding ... … …. …. . … …. … … …. monkeys.

Between our false sense of social connection from behind screens, and our inability to clearly communicate, we’re becoming quite rude, detached and antisocial.

We need to get back to basics, boldly facing faces and braving eye contact. We need to return to using the other 90 per cent of our communication.

What would your comment look like if you only used 10 per cent of the words?

Jeff Stern, a 27-year real estate veteran with Re/Max Performance Realty in Winnipeg, received the 2017 CMHC/MREA Distinguished Realtor Award. He is an instructor for the Provincial Real Estate Licensing program. He gives back to the community as chair of the MREA Shelter Foundation and writes stimulating and enlightening articles on his blog at www.jeffstern.com. The opinions expressed are those of Jeff Stern and not the Manitoba Real REM Estate Association.

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22 REM OCTOBER 2018

Demystifying blockchain (an oversimplification of a complex matter)

By John DiMichele

Y

ou may recall that a few months back there was a rather public spat between Elon Musk and Mark Zuckerberg regarding the use and future use of artificial intelligence (AI), the advancement of machine learning and super computing technologies.

The basis of the squabble was that it appeared the Facebook people were allowing the machines to work interdependently with little or no restraint and oversight.

Well, the machines learned enough that they decided to create

O P I N I O N

By Darrell Lloyd

T

he Alberta Real Estate Association plans to hold an online vote for its members Oct. 1-3, asking whether they are in favour of AREA investing a portion of their existing annual dues to protect commissions for all members. Sounds great on the surface but is it really?

The stated reason behind this ongoing debate is the 2015 closure of two brokerages in Calgary, that left a large number of Realtors out of work and many without commissions they were owed. These brokerages did not carry on the good business practice of paying out commissions to their Realtors immediately upon receiving the funds, as most brokerages do. If that practice was followed by all brokerages, the tragic loss to the affected members would have been minimal.

AREA mentions that Ontario and B.C. both have commission protection insurance in place. In an

their own language. And although the Ph.Ds. could see that something interesting was happening in the communication among the machines, they couldn’t understand what they were saying to each other. When they asked the machines to explain, they said the human language was inefficient and therefore ineffective. Hold that thought……

While I have done quite a bit of research I am in no way an expert on the subject of blockchain, so I won’t try to confuse the subject further by injecting jargon into the discussion, such as democratization, trustless environments, consensus protocols, Dapps and the like. The goal is to put it in terms even I can

understand. So……

If you accept the premise that the internet is nothing more than a lot of filing cabinets in one huge room or a library loaded with books and information or documents, then hopefully you’ll find this easy to follow. In days gone by when we needed a document, had to copy a few pages of a textbook or had to assemble various documents for a particular task or project, we would first have to walk into that room and do a search to find the right cabinet (based on a search protocol like the Dewey Decimal System).

Then you’d find the right folder and eventually pull that document.

You may need to do more than one task, so you’ll have to do it all over

Free commission protection in Alberta? article from REM in 2016, the cost effectiveness to Ontario Realtors was questioned. At a cost in excess of $400 per member annually, insurance companies would have taken in almost 100 times more than the $4.5 million they have paid out during the term of that plan to date. It’s a windfall for insurance companies on the backs of Ontario Realtors.

AREA states that, due to operational efficiencies and improvements since 2015, it can now afford to cover the cost of insurance for all members from their existing annual fees. Although I applaud the streamlining of AREA’s operations, let’s not forget the massive increase to AREA’s annual fees that helped facilitate its current financial situation. Perhaps a reduction in those fees might better serve the members in Alberta, verses commission insurance being forced on Realtors, the vast majority of whom will never need it because their brokerages follow the good business practice of paying out commissions as soon as the funds are received.

Perhaps worst of all, by conducting a direct vote and “majority wins” attitude, AREA is eliminating the voice of independent boards throughout the province. Our

Board of Directors voiced their disapproval of forcing commission insurance upon its members more than a year ago and we weren’t alone. However, although there are 10 boards in Alberta, the Calgary Board, where the brokerage closures took place, has the majority of Realtor members in Alberta and can carry the motion on its own, even if all the remaining members in Alberta speak out against it.

AREA would like you to believe that there will be no cost for the insurance coverage for its members. Nothing is free. When was the last time you saw your car or home insurance policy decrease in price?

It’s easy to hide the insurance cost increases within AREA’s annual dues and blame the increase on other operational costs. Alberta Realtors need to look a little deeper, past the sugar-coated pill that AREA is offering.

Darrell Lloyd is a Realtor with Re/Max 2000 realty in Hinton, Alta.

He has served on the Board of Directors of the Alberta West Realtors Association for eight years and currently serves as past president. Prior to his real estate career, he was a member of the RCMP for 25 years.

REM

again as many times as required.

Then you walk over to the photo copier and copy it or scan it and send it to the person or people who need it (it’s sad to think that some people may even still fax it). It’s important to note that in all of these processes the original documents remain intact and other people will have access and use of those exact original documents.

In today’s world we could say that the internet facilitates communication pretty well and has brought information and its transmission right to our fingertips.

Productivity may have increased; however, the validity and integrity of the information is at best questionable (i.e. fake news) and the environment is extremely unsecured. While the internet appears to be efficient, it is truly nothing compared to the capabilities within the secure construct of blockchain.

Let’s apply blockchain to the real estate transaction world or the marketplace. For simplicity sake, let’s call all the various elements of information and documentation that we would need the ledger.

We all know what it takes in today’s world to get all the information and documentation through the real estate transaction process and the various ways in which it is delivered. And let’s also consider all the work of the participants – real estate brokerages and agents, banks, insurance companies, lawyers, title companies and inspectors that take part in the process. With blockchain the cabinets are digitally replicated hundreds of times with true copies of the ledger and placed on the connected computers (or nodes).

Imagine now that you issue a request or initiate a transaction and when you walk into that same room described above, there are 30 people who hand you a true copy of every document you need in a nice folder and simultaneously the information is transmitted to all the relevant parties who have the permission and credentials to access this information in a co-operative manner.

The information provided through the blockchain has the highest degree of integrity and validity as it comes directly from the source and the original document remains with that source. All

information transfers are recorded in the ledger and the ledger itself is auditable and unalterable. The machines will move the real estate transaction marketplace into a world of unparalleled efficiency, cooperation, trust and choice.

All participants will have the same access and will be able to retrieve any relevant information required in order to initiate any transaction in the marketplace.

Cryptocurrencies (or tokens) like bitcoin now become essential as they will be used in the processing of the transactions and facilitating any associated payment(s) securely and faster. Once the transaction is completed an unchangeable block is created and replicated.

The same surety applies to each of the other participants in the chain as they each will have trackable and verifiable digital signatures. Furthermore, each transaction or data request that takes place carries with it a unique digital signature. These digital signatures are there to ensure authenticity and are trackable in order to prevent unapproved resale, distribution or misuse of the data in any way. This adds data protection and security to the list of benefits.

The information flows based on contractual agreements between the parties and smart contract codes will be embedded increasing the speed and creating proficiencies like never before. Without human intervention, the machines will be doing it all.

This narrative is truly an oversimplification of the innovation of blockchain. Hopefully it opens the door to further discussion and a deeper dive into this revolutionary and era-defining technology. The blockchain build will be complex, costly and will require a higher level of co-operation. The math is staggering, the “jump-through” and regulatory hoops are many, restrictive and always moving. This paradigm shift won’t be easy. However, evolution is a law of nature…. human nature.

Or perhaps it’s just the MaesGarreau law in me.

John DiMichele is chief executive officer of the Toronto Real Estate Board. REM

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24 REM OCTOBER 2018

Only my clients get free home evaluations

By Tina Plett

R

eal estate is this weird industry where people expect highly trained professionals to work for free (or less). It’s not just family and friends either, like you might experience in your job – it’s this broad expectation from all of society – bankers, lawyers, buyers, sellers – that real estate agents can and should work for free.

For over seven years, I was that Realtor, getting the call for a free home evaluation. (thank you, Mr. Banker, sir. May I have another?) I’d eagerly take the call, invest the hours, drive all over tarnation and tromp

through snow and mud – and all for free. It took me a while to realize I don’t actually have to do that to myself.

In fairness, free home evaluations are a valid way of drumming up business. It was a great way to meet people who were interested in buying or selling houses and start a conversation about their needs and how we can help. We could even demonstrate how reliable and effective we were before asking to represent them.

Things have changed. (They always do.)

What was once unique and creative is now commonplace.

That means a few things: • It’s so common it’s actually an expectation. Why pay when you can get the milk for free? It makes a person wonder if it

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undermines the level of professionalism Realtors could otherwise be known for. If Realtors were a house on a city block, would their being free make them the cheaper house, or the high-value, more desirable house, for example? Something to think about.

• People who have represen-

Clydesdale for my clients though, and it’s for them I reserve my resources, energy and time. To give it away to anyone else is to take it away from them.

Priorities, you know?

A few other reasons I don’t offer free evaluations to any Joe Blow are: • Clients like it. I can’t tell

tation will still use another agent’s free home evaluation offer. Why? Because they don’t want to “bother” their own agent who they’re paying. It’s more courteous to make some other random agent work for free for no benefit. I know it doesn’t make sense. I also know it makes no dollars.

• Marketing is about standing out. Doing what is common does not stand out. I’m learning that the more I do things others don’t, the more I set myself apart. (Blogging, going mobile) instead of the brick-and-mortar office, offering 3D Virtual Tours of my listings, professional photos – oh, the number of people who don’t do that, but really, really should – and charging for home evaluations) all get more attention for my listings. Which is kind of the point, no?

I’ve learned my lesson. I will not work for free for strangers for no benefit. I’ll work like a

you how often people have called me up asking for a straight-up evaluation.

“I’m calling you because you’re known to be professional,” they’ll say.

“I want a home evaluation, but plan to sell privately. Can I just pay you for the evaluation and not have to have the conversation about representation?”

The answer is yes. They respect my time, and I respect their needs. It’s an awesome arrangement. And often that speaks to my professionalism more than offering the service for free. (Counter-intuitive, I know, but it works.)

• I don’t work for the bank or the mortgage broker. When they send people to take advantage of me, (er, I mean use my services for free), they get paid, their clients get a mortgage and I get nothing. It puts no food on my table. No, sorry. I do not work for the bank. (Not at

those prices!)

• I’m not new at this. I’ve invested thousands of dollars in my professional training to become the best at what I do.

My multiple specialist certifications came at a price. My edgy technology and professional team members come at a cost.

And my years of experience are priceless.

None of this is offered by a new kid on the block. It’s unreasonable to expect I’d work for newbie wages. (Would you?) And the adage is true – you do get what you pay for.

That’s why I pay, and why you should too.

• To raise the perception of our industry. Real estate agents are professionals. We are resented for our seemingly large commissions, we’re presumed to be rich and are expected to work for free as penance. (Just ask the stranger who asked me for thousands of dollars out of the blue.) It’s an unfortunate and unjust perception. By charging for my professional time and service, I hope to communicate the respectability of being a Realtor. It is a profession, and one that ought rightly to be paid for.

I have no grand notions of changing the industry singlehandedly. Free evaluations have always been done and they’ll continue to be done. And, especially in the beginning when one is eager to connect with people and get their face and name out there, it can still be a viable prospecting method. But I do think there comes a time when a person needs to shed old ideas and embrace new ones.

Attentive from sign up until sign down, rural agent Tina Plett wins the affections of people near Steinbach, Man. with her unique blend of forward-thinking business savvy and down-home, countrified lifestyle. Sutton Group-Kilkenny proudly calls her their own.

REM www.tinaplett.com

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26 REM OCTOBER 2018

He adds: “Without the generous support of the sponsors, participants and volunteers, this would not have been possible.”

Since 1993, KWAR has donated more than $1 million to support local charities on behalf of its members.

■ ■ ■

T

he Kitchener-Waterloo Association of Realtors (KWAR) raised $31,203 for Habitat for Humanity Waterloo Region at the association’s 25th Annual Charity Golf Tournament.

This year’s tournament was a huge success in terms of Realtor engagement and the number of

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Members of the ChathamKent Association of Realtors assisted with Operation Backpack recently. The community program, hosted by the United Way of Chatham Kent, has been offering a helping hand to local families since 2001. Last year 1,683 families received support through the program. REM

Ottawa Real Estate Board president Ralph Shaw participated in Drop Zone recently, repelling down the side of the 20-storey Morguard Building in Ottawa. This was Shaw’s fifth year participating in the event, which raises funds for Easter Seals.

From left: Karen Coviello, CEO of Habitat for Humanity Waterloo Region; Tracey Appleton, chair of Habitat for Humanity Waterloo Region; Tony Schmidt, president of KWAR; and Megan Bell, 2018 golf tournament chair.

Chatham-Kent Association of Realtors take part in Operation Backpack. Back row, from left: Heather Najjar, Brandy Robertson, Steve Pratt of the United Way and Bill Myers. Front row: Janice Wieringa, Mike Gibbons, Kim Lewinsky, Tricia Weese and Laurie Renaud.

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items donated to the auction, says KWAR president Tony Schmidt.

“As Realtors we are very proud to support Habitat for Humanity in their mission of building affordable housing and promoting homeownership as a means to break the cycle of poverty. It’s nice to see everyone come together to support a good cause and have some fun.”

Real estate blog Agent Inner Circle has been named to the top 30 best real estate coaching blog lists by content aggregator Feedspot. The site ranks No. 8 in the list, which includes websites from all over the world.

Agent Inner Circle began in 1997 when a small group of topproducing agents formed a private “network”, where they shared ideas and strategies for building their businesses, says the website.

Originally only open to a select few, the blog decided to allow anyone to join – free – and now it has 50,000 members.

Members receive an email

newsletter with new ideas and ready-to-use samples for growing their business, along with links for posting their own ideas and feedback, and an archive of helpful past issues.

Executive editor Michael Krisa is also a regular contributor to REM. For information or to join, visit agentinnercircle.com

Firm updates website listings solution RealtyWebsites.ca, based in Vancouver, recently announced three upgrades to Agent iFrame, a DDF and IDX listings solution that allows agents to copy-paste automated listings into any website and social media. These features are now included in all packages offered by RealtyWebsites with a

starting price of $4.95 per month.

The company says Transactional Email is used when messages such as password resets and receipts must have the highest possible delivery rate. It has partnered with a cloud-based email provider to ensure messages reach its customers, it says.

A Text Messaging From Listing features was added in response to studies that show customer acquisition is related to the length of time between a web form submission and a response by the service provider, the company says. “Most online inquiries are answered almost three days later. An agent is 21 times more likely to qualify a lead if they make voice contact within five minutes compared to a mere 30 minutes later,” the company says. “An immediate return call has the ‘wow factor’ and is a highest level of service an agent can offer to a client.”

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REM

28 REM OCTOBER 2018

Good Works R

ehabilitating sick and injured wild animals, delivering hot meals to seniors and providing hospice care are among the many services funded in part by two long-running golf tournaments in Kingston, Ont. This year marked Grant Team’s 10th Annual Charity Golf Tournament in support of Southern Frontenac Community Services Seniors’ Programs (SFCSC) and the 5th Annual Thompson Plymouth Chrysler Charity Golf Tournament in support of Sandy Pines Wildlife Centre (SPWC).

Rhonda Grant, a host and organizer, says, “Our team raised $5,000 for SFCSC and $7,673 for SPWC this summer. We had sunny weather for both events and the golfers had a lot of fun.”

Brandon Grant also promoted the tournaments, signed up sponsors and golfers and managed elements that generate a successful fundraiser.

■ ■ ■

Right At Home Realty’s Burlington branch took part in

Backpack to Basics, a program that encouraged clients to fill new or gently used backpacks with essential items that children would need for the school year. The program was founded by Ryan and Melissa Zogala of the Married with Real Estate Realty Team.

Right At Home Burlington also took part in the Heart & Stroke Foundation Big Bike event recently. The event raised $1,895.

■ ■ ■

Ahmed Helmi, manager of the Johnston and Daniel division of Royal LePage Real Estate Services in Toronto, and eight other motorcyclists planned to ride from Toronto to Halifax to raise money for the Royal LePage Shelter Foundation.

“There are nine of us (two from Dawson Creek, B.C, two from Cambridge, Ont., two from Burlington, Ont., two from Toronto and one from Mississauga)” who will cover the 2,800-km trip, says Helmi. “We will meet with Phil Soper (CEO and president of Royal LePage)

and several others for a final two-day ride.”

The original goal was to raise $5,000 collectively, but the group moved it to $10,000 because of the success they had getting pledges before the ride.

Helmi also takes part in the annual OREA Realtors Care ride, which this year had more than 50 participants. He also goes on the Ride for DAD in support of prostate cancer research, Teen Challenge (to support substance abuse prevention) and other events.

■ ■ ■

With the help of the 5th Annual Sutton Group Lethbridge Habitat for Humanity Golf Tournament, a couple with two young children will have the opportunity to build a new future.

This year’s tournament raised over $18,000 and since 2014, associate broker/co-owner Trish Lyons, broker/co-owner Audrey King and their staff and Realtors have raised $92,000 for the local chapter of Habitat for Humanity.

“This tournament is a natural fit for Sutton Group - Lethbridge,” says Lyons. “It is a great way to raise money for a charity whose focus is building decent, affordable housing for low-income, working families.”

■ ■ ■

Barry Lebow, broker at Re/Max Ultimate Realty in Toronto, held the 6th annual Realtor in the Park event and celebrated his 50th

From left: Brandon Grant, Rhonda Grant and SPWC founder Sue Meech.

anniversary in real estate recently.

The event drew 165 Realtors from all over Ontario and the United States. “To date, this event, which I created to raise money for my foundation, has raised approximately $20,000 for Alzheimer’s Research at Baycrest Hospital,” says Lebow.

“The idea of Realtor in the Park was to bring together Realtors who were on various Facebook forums to finally meet. Over the years friendships have developed and referrals have gone out in large numbers. I feel great about pushing to get it started with 35 people the first year,” he says.

Lebow says that although most people would be satisfied with a 50-year career and think of retirement, “I am launching The Senior Team GTA to start my next 50 years in this industry!”

■ ■ ■

Joseph T-Giorgis, a sales rep with Sutton Group - West Coast Realty (Surrey) is an annual contributor to the Ethiopian Summer Festival in Burnaby, B.C. The 9th annual festival gave attendees a chance to experience this culture’s unique food, music, dance and art.

Over the past several years, he has helped promote and financially support the event and volunteered on a scholarship committee.

He is currently volunteering on a sub-committee of the Ethiopian Community Association named Ethiopian House, which aims to establish a comfortable, safe and

accessible gathering place designed for people of all ages.

“Building a sense of community is easy but maintaining that sense of community is difficult in a fast-paced society like ours. I enjoy being part of creating an atmosphere where people come together and become one, based on something we share,” he says.

■ ■ ■

CIR Realty in Calgary is giving out four $5,000 grants to local community projects and initiatives as part of its In My Backyard Contest. Members of the public are encouraged to submit their entries into one of four categories: locally registered non-profits, community association grant, youth extracurricular and local sustainability and conservation.

The winner of each category is determined by the largest number of public votes and will receive a $5,000 grant towards their cause.

Kirsten Faverin, CIR’s marketing manager and contest founder, says, “We know that the economic climate in Calgary right now has resulted in fewer donations to local charities and non-profit initiatives.

We want to do our best to show that companies still care and are doing their best to help keep things alive and moving forward,” Faverin says.

The contest is open to all residents of Calgary and surrounding areas, as well as Red Deer and surrounding local areas. The contest runs at www.cirrealty.ca and closes on Oct. 7. REM

Golfers at the 5th Annual Sutton Group - Lethbridge Habitat for Humanity Golf Tournament.

Joseph T-Giorgis

Ryan and Melissa Zogala, centre, with representatives from the Burlington Food Bank.

Ahmed Helmi

Barry Lebow

Right At Home’s Burlington branch takes part in the Big Bike ride.

REM OCTOBER 2018 29

Hiring for keeps Take this one extra step to make sure your real estate hires stick around. By Aiman Attar

I

t may seem a step too far for many Realtors, but we insist on it because it works.

When we take on a new real estate client to help them with their recruiting and hiring, we have a process. This process is the same for every client and it has a proven record of success. There is one step in the process that almost every client resists. We deem it to be essential to be sure that your hire is going to work out and, more importantly, stick around. What is this miracle process? It’s a paid onsite assessment.

While interviews – usually more than one – are essential, they don’t give the full picture of what a person can do, what they’re about, how they think on their feet or how they respond in a crisis situation. An interview can give you the basics of the person you’re considering hiring, but as the saying goes: the devil’s in the details.

Getting to see first-hand how

your candidate functions in the office, interacts with others and deals with situations that come up, is an essential step in determining if they’re going to be a good fit.

It works both ways too, because while you’re interested in making sure she’s a good fit for your realty office or real estate team, she is interested in making sure your office is a good fit for her. The culture of an office is a big reason why people leave jobs and the only way to truly get a sense of it is to be a part of it, even for a day.

How does it work? Your candidate will spend the day (or half day) getting paid to actually work with your team. Treat this day as if it is the person’s first day at work.

Give them things to do. See how they type on the computer, how they answer the phone, how they write an offer or produce a feature sheet with content. This also gives the candidate the opportunity to examine how you work, how you

give instructions and how organized/disorganized your office is.

Hiring is expensive, so skip the revolving door.

Whether you use the skills of a recruiting agency or go at it alone, hiring is an expensive proposition and a revolving door ever more so! Finding the candidates, interviewing/testing them, training them… It all adds up in terms of time and money. Invest the time upfront, so you can save the costs later.

The former owner of Imaginahome Inc. and former Realtor at Re/Max, Aiman Attar is the managing partner of AGENTC: The Real Estate Recruiter. She has worked in the real estate industry for over 10 years with Toronto’s finest, most accomplished Realtors. She decided to dedicate her talent and experience to helping you hire the best candidates to build your business. Email Aiman@agentc.com. REM

Your clients deserve better

By Nina Doiron

A

s a service provider, complementing the real estate industry, I make a habit of regularly monitoring new listings as they come on the market. What I’ve observed lately are shortcuts in not only getting the property market-ready, but also in the overall presentation of the properties.

This housing market is nothing like 2017. Prices have dropped significantly in some markets and homes are taking longer than 30 days to sell, notwithstanding the fact that some are being re-listed after a price adjustment.

As I monitor new listings, I estimate that less than half of the properties are being professionally

staged. I wager that cost has a lot to do with the decision not to stage and the fact that it’s taking more than 30 days to sell means that the rental of furniture and accessories can run over several months.

Here’s the thing. In a buyers’ market, a well-shown home still stands the chance of being sold faster and for more money than ones that don’t show quite as well.

In a market such as this, clients require even greater education about how best to market their home so that it can sell successfully. It is important to consider that a staging investment is still less expensive than the first price reduction. Your stager will likely be able to develop a budget that will suit the homeowner’s pocketbook while helping the property look presentable at the same time.

When professional staging is not possible, encouraging your clients to declutter, tidy up and

keep the property tidy for photo day and throughout the listing period is a must.

Last but not least, I implore you to invest in professional photography. First impressions matter.

Clients deserve better than poorly lit and poorly photographed photos of what is likely their greatest financial investment. And, it’s your name and brand that will be on the listing.

Award-winning Certified UltimateStager, redesigner and owner Nina Doiron is the principal at iStage & Organize. She provides an objective and experienced eye to attract more buyers and help sell for top dollar. She will also help you declutter and get organized. She says she will “inspire redesign ideas so that you’ll fall in love with your home again.”

Visit istagenorganize.com or call 416993-0131 for more information.

REM

Pictured: Marius Kerkhoff (left), and Alex Visscher (right)

Congratulations, RE/MAX a-b Realty!

RE/MAX a-b Realty is proud to add an Otterville office to their five existing locations in Woodstock, Stratford, Ingersoll, Norwich and St. Marys. This new branch is making the transition with realtors Marius Kerkhoff and Alex Visscher leading the charge. The duo are proud to be part of the largest real estate company with the most recognized brand, working alongside a forward-thinking brokerage headed by Broker of Record John Wolfe.

As the home of the top producer and those who aspire to be, Marius and Alex are industry leaders who provide professional services and outstanding results. With Alex’s extensive background in sales and Marius’ six-year real estate career, their new office is well on its way to success. The dynamic duo look forward to meeting new and future clients at their office at 210 Main Street, Otterville.

This new office is made up of a close knit group of like-minded, real estate professionals. They pride themselves on their high-level of customer service and and look forward to serving their customers in a personal, small office setting.

Please join us in congratulating Marius Kerkhoff, Alex Visscher and John Wolfe on the opening of the newest RE/MAX a-b Realty office in Otterville!

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

RE/MAX Rouge is inviting proposals to provide in-house services for our 200+ associates and staff and the 3,000 families and businesses that we provide real estate services to each year.

RE/MAX Rouge is now considering expanding with the development of three new divisions located within our branch offices: i) a mortgage brokerage that will compliment the current services by a major Canadian financial institution; ii) a commercial real estate division that will specialize in land, leases, and commercial investment; and iii) business/homeowner/motor vehicle insurance division.

Interested parties are invited to submit proposals to service these three new departments.

Submissions/enquiries may be sent via email to info@remaxrougeriver.com.

RE/MAX Rouge River Realty Ltd. was established in 1987 and services east Toronto, Pickering, Ajax, Whitby, Oshawa, Clarington, Northumberland County, Peterborough and the Kawarthas from 8 full service offices.

30 REM OCTOBER 2018

Creating an inside sales department, part 2

By Kathleen Black

I

n part 1 of this story, we established that inside sales departments are not cheap.

They are an investment in the team, and like any investment you are putting out money to make more money. In this situation, it is with the goal of connecting with more leads to sell more houses.

Who would make an ideal inside sales agent (ISA)?

Experience is an asset in most cases, but when looking for a good match, there are things that you should weigh more heavily. You want to be very comfortable with your DISC personalities when looking to hire anyone on your team. Your ISA should be a type

“I� personality – these are the influencers, the talkers, or an “S� personality – these are the steady, consistent, relationship builders.

They should match the “I� or “S� with a “D� – dominate, or a combination of “I� and “S� may be possible. The backing of the “D� personality will be the one who books the most appointments, whereas the “S� personality will book the most follow ups.

At the end of the year, their numbers would ultimately be the same for appointments set. You need someone who is hardworking and has proven phone experience. You would look for the best cold caller or telemarketer. You need someone reliable, but it’s especially important here, because you need to be able to leave them to go their job and only “checkin� once in a while. You hired the best and should leave them to it, for the most part. Finally, this role

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does need to be licensed, but if you are able to get the world’s best telemarketer and they can prove it, the easy part is getting them licensed.

How to compensate: Every team, every leader and every agent is a different situation, but as a general overview, here’s an idea of a compensation structure for your inside sales department.

they complete three deals per month. This stage also offers a bonus for reaching the goals, both individually and as a department, but it is higher than the one in the second stage and to achieve the same goal of making up the difference of the hourly wage.

How many leads? There are four factors to consider regarding the number of leads needed to

Here’s an idea of a compensation structure for your inside sales department.

During the first stage, generally during training, your ISA would make a base salary or an hourly wage and percentage commission per transaction. They would stay at this stage until they can complete one deal for two months consecutively.

The next stage is usually reached in the third month. This is an increase hourly and in commission per transaction. To move to the next stage, they need to complete two deals in a month, for two months consecutively.

This stage would offer a bonus to make up the difference of the hourly wage.

The third and final stage is more per hour with another increase in commission, when

keep your ISA busy. First, look to the cost of leads. You want the low cost or forgotten leads for your ISA. They’re a month old, outside sales agents won’t be calling them, so your options are to give them to the ISA or forget about them entirely.

Second, look at the conversion. Your ISA should be converting better than your outside sales agent, because your ISA is an expert. Third, the amount of supply needs to be high. You need to keep the phone going. Your ISA will never leave at the end of the day with a job done – there will always be more calls to make tomorrow. Fourth, your ISA is a long-term solution. They will get appointments from last week,

from last month or from last year.

Not every call, every day, or every appointment will be a glowing success, but when you do make money off of the low-cost ads, that benefits the team in a big way. You need to be ready to support the department and streamline the role with proper scripts and training, and then let it do its thing – call people, book appointments and make money.

Inside sales is a science. The top inside sales departments in Canada book thousands of faceto-face appointments per year, with hundreds of deals resulting from their departments. This role, done right, is THE game changer to take a team to a powerful organization with increased profits, retention and residual income.

Teams that were built using these systems now have more than 60 to 70 per cent of transactions coming from this trusted source. The power of ISA is difficult to ignore.

Kathleen Black has taken her experience as a top-producing Realtor and built it into a dynamic, results-driven consulting company, Kathleen Black Coaching & Consulting, where she serves as CEO, speaker, trainer and elite coach. The systems she used in her daily real estate business to get her to the top are now the backbone of a real estate consulting company specializing in helping real estate professionals across North America build top teams. www.kathleenspeaks.com, email info@kathleenspeaks.com. REM

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