September 2017 by Real Estate Magazine (REM)

Issue #339

September 2017

Realty Executiveâ&#x20AC;&#x2122;s bold expansion plans Page 3

The benefits of co-ownership Page 10

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

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Ryan Hodge: Success is about more than money Page 12

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REM SEPTEMBER 2017 3

Realty Executives focuses on B.C., Alberta The brand is investing up to US$10 million to expand in those key markets. By Danny Kucharsky

ealty Executives International is investing up to US$10 million to expand in Canada, with a primary focus on growth in Alberta and B.C. The Scottsdale, Arizonabased real estate company hopes to obtain that growth by dropping its regional developer model in Canada. In this model “a franchisor sort of sub-franchises territories out,” says David Tedesco, CEO of Realty Executives International and True North Companies. Canada “had some great performing groups,” for the brand, he says, but “we thought we were missing an opportunity. We have some awesome regional developers who were really interested in building a relationship with us, but we’ve had some regional developers that were challenging along the way.” Tedesco says Realty Executives “really had no focus in British Columbia. We were interested in entering that market in a bigger way but we didn’t have the support of the regional developer in that territory.”

The company has changed its franchising model, a move that has resulted in some departures. “We’ve now worked out that situation such that we can go into there on our own and bring some of our financial wherewithal to bear and make some acquisitions.” Alberta and B.C. are now “totally open to us to develop at our discretion as opposed to having worked through the regional developer model,” Tedesco says. To kick-start growth, the company is seeking to acquire a number of larger brokerages in Western Canada to “boost our numbers in those areas and increase the brand presence. We’ve been in dialogue with some very large brokerages in Canada.” Tedesco is giving a 24-month window to find opportunities in Alberta and B.C. that make sense for the company. “We’re interested in expanding in other (provinces) but those are the two provinces that we’re sinking most of the capital in right now. “ In Edmonton, Realty Executives has signed with Darlene and Steven Reid, formerly

of Rock Point Realty, to create a new brokerage known as Realty Executives Vision. The two “are very well regarded in their market (and) had an appetite to expand,” Tedesco says. “We think by partnering with them we can go and find 300 to 400 new agents in a market like Alberta that we didn’t have before. We’re hoping to find five or six people between those two provinces that really want to expand like us and we’re hoping that adds another 1,200 agents altogether.” Realty Executives obtained its first Canadian franchise in 1988 and now has 1,100 agents in about 115 locations in Canada. More than 20 locations are corporateowned. The company’s Canadian representation is over weighted in comparison to the U.S., in terms of population. There are 6,200 agents in the U.S. Established in 1965, Realty Executives was founded in Arizona and owned by same family until the real estate bust in the U.S., when Tedesco’s group acquired a controlling

interest in the company. True North Companies acquired majority ownership of Realty Executives in 2014 and earlier this year acquired the remaining shares of the company from former president and co-owner Rich Rector. Privately held True North, the parent company of Realty Executives, is worth about US$500 million and also includes entertainment, health care and aerospace divisions. The True North name is being rebranded as Outlier Ventures. “We’ve spent a lot of time restructuring the company; we’ve redone a lot of the technology and a lot of the operating parameters for our franchisees, ” says Tedesco. His thinking is that if “you bring the wrong person in you get one person, you bring the right person and three years later you’ve got 100 people. Our goal is to really find the right people in each territory to partner with them and support them from a human capital perspective and an investment perspective. “ Instead of the gross commission

Canada’s homebuyers among most ‘digitally active’ in the world A

survey of more than 9,000 people in nine countries says that Canadians are among the most “digitally active” homebuyers in the world, which has “significant implications for consumers and the property industry”. The HSBC report, Beyond the Bricks, says there will be radical changes in the way homes are purchased and financed, with property technology firms increasing globally from a US$221 million industry in 2012 to over US$2 billion in 2016. “From online mortgage specialists to paperless mortgage renewals, technology is rapidly

changing how we engage with and serve our customers in Canada and across the globe,” says Larry Tomei, EVP at HSBC Bank Canada. “This latest research suggests that the property industry is poised for technological disruption, significantly changing how home buyers approach each of the three key phases of home buying: researching, financing and purchasing.” The survey says 90 per cent of Canadians use online channels to research their recent property purchase (first is the U.K. at 93 per cent, while the global average is 83 per cent). While 11 per cent of

Canadians surveyed have embraced the idea of using roboadvisers such as chatbots and humanoids for mortgage advice, banks and mortgage brokers are still the most trusted sources of mortgage advice, the survey says. Almost three-quarters of recent homebuyers in Canada researched finance options online, on par with the global average. It says 29 per cent of recent homebuyers in Canada started talking to a real estate agent online (the global average was 31 per cent). Twenty-seven per cent of those surveyed said that dealing with the many people involved (real estate

agents, lawyers, sellers and developers) was the biggest “pain point” in the home-buying process, followed by fees (23 per cent), negotiating the price (22 per cent) and understanding the legal paperwork (20 per cent). “The research supports what we already know: while more and more Canadians are embracing disruptive technology in new and exciting ways, the need for the human touch hasn’t diminished,” says Tomei. The countries that participated in the survey were Australia, Canada, China, France, Malaysia, Mexico, U.A.E, U.K. and U.S.A. REM

income (GCI) model that’s used by most large brands, Realty Executive agents can pay the company a per-month fee and a transaction fee upon closing each transaction. Agents keep 100 per cent of their listing and sales commissions for themselves. Tedesco contends that on average agents are paying 3.5 times more to be an agent in a GCI-oriented brand than the Realty Executives model. “As soon as you start to perform as an agent it gets really expensive to be involved in the GCI models. “You’re not getting anything at the GCI brands that you’re not getting with Realty Executives. In fact, in some cases you’re getting less.” Tedesco says the GCI model is “going to come under further and further pressure. We really don’t even see how those models will survive over the course of the next 20 or 30 years.” To improve awareness, Realty Executives has started a “seven figure” traditional and digital advertising campaign in key markets. “Of course, the best way to bring brand awareness up is to get lots of agents out with signs on people’s front yards. That’s why the acquisition strategy is important.” Realty Executives recently invested more than US$5 million to redo its technology, which is now company-owned. As a result, technology issues can be dealt with in under 48 hours as opposed to much longer lead times when working with a third party, he says. Realty Executives’ agents have long been known as “executives” at the company. “I very much believe in it, that notion of differentiating yourself and presenting yourself to the market in a way that’s more premium. I think that is a huge win and it ties into our brand,” Tedesco says. As of the end of July, organic agent growth rate this year in North America has been in the 14per-cent range, “which is really remarkable for a 52-year-old company,” he says. “We’re happy with the company and where it’s going.” REM

4 REM SEPTEMBER 2017

Multiple Listings By Jim Adair, REM Editor

Do you have news to share with Canada’s real estate community? Let REM know about it! Email: jim@remonline.com

oldwell Banker Preferred Real Estate in Winnipeg has expanded into the city of Steinbach, Man. Steinbach is the third largest city in the province, just 20 minutes southeast of Winnipeg. John Rodrigues, president of Coldwell Banker Preferred Realty, says the office opened with a team of four real estate professionals formerly associated with Royal LePage. In total, there is a team of

six at the new office, with broker of record David Moffatt. “There is a wealth of interest from people locating to the Steinbach area,” says Rodrigues. “This expansion allows us to have a greater presence in the eastern part of the province. Our new location supports agents already working in the area and we will all benefit from the experienced sales representatives joining our operation.” ■ ■ ■

Red Deer-based brokerage Realty Executives Alberta Elite is expanding, with plans to open offices in Edmonton and Calgary.

Formerly known as Realty Executives Red Deer, the company is led by real estate veteran and broker/owner Cindy Price. Price has 25 years of experience in the real estate industry, including commercial and residential real estate, acreages, investments and property management. “The timing of our expansion couldn’t be any better. We’re in an excellent position to grow our presence in Central Alberta and we’re looking to significantly increase our market share,” says Price. The brokerage will serve Edmonton, Red Deer, Calgary and South Alberta, including Medicine Hat and Lethbridge. It currently has 14 salespeople and the company says it plans to double in size over the coming weeks. ■ ■ ■

Coldwell Banker Preferred Real Estate’s new Steinbach office.

Cindy Price

Michel Desnoyers

Century 21 Foothills South is under new ownership in Lethbridge, Alta. after changing its name from Century 21 Foothills. As part of his succession planning, former owner Blair Gordon will continue as broker of record. The franchise is now owned by Kyle Lebeau. “Blair and I started discussing

this transition about a year ago,” says Lebeau. “I’ve been an agent for the past seven years and Blair’s mentorship has helped me realize that this is an excellent next step in my career.” Gordon says, “I’ve been in the real estate business for a long time. With nine offices in Southern Alberta, it was time to scale things back a bit. I look forward to helping Kyle as a broker through the transition as he takes over full ownership.” During the past five years, the office has increased sales production, despite a soft market. “I’m excited to get started,” says Lebeau. “Last year we launched a property management service out of our office and I expect that will become a niche for us for commercial and multi-family properties. Our agents are engaged and I look forward to helping them grow their own sales.” Gordon is celebrating his 40year anniversary in the real estate business this year. The brokerage recently moved the High River office into a historic building. ■ ■ ■

Broker / owner Michel Desnoyers recently opened Re/Max Delta Realty in Rockland, Ont., located about 40 minutes outside of Ottawa. It will focus on serving Prescott, Russell and surrounding areas. Desnoyers is “a quick learner with exceptional capabilities that

Kyle Lebeau

Chris Cartwright

Ray Taaeb

have helped him climb the real estate ladder from agent to broker in only three years,” says Christopher Alexander, regional director, Re/Max Integra, OntarioAtlantic Canada. “Michel’s mission to put clients first fits Re/Max Integra’s client-centric business model perfectly and will make him a strong addition to our network.” ■ ■ ■

Royal LePage Service Plus of Lachute, Que. recently merged with Royal LePage Humania, a Laurentians-based brokerage that joined the Royal LePage network last May. With this merger, Royal LePage Humania adds 16 brokers, for a total of 237 brokers. The former owners of Royal LePage Service Plus (Maurice Giroux, Lorne Deschamps, Gilles Drouin, Luc Girard, Martin Rozon, Guy Sauvé and Pierre Vachon) will remain at the agency as real estate brokers working out of their current Lachute location, while the management committee, composed of François Léger, Anne Léger, Christian Bouvrette and Lise Lechasseur, will continue to lead the brokerage. With this transaction, Royal LePage Humania, which owns eight offices located in SaintThérèse, Saint-Eustache, SaintJérôme, Saint-Sauveur, SainteAdèle, Sainte-Agathe, MontTremblant and now Lachute, reinforces its position as the largest traditional real estate brokerage in Quebec, the company says. ■ ■ ■

Chris Cartwright has been appointed CEO of Main Street Realty, which has four offices in the York and Durham regions in Ontario. The son of owner and broker of record Mike Cartwright, Chris will run the day-to-day operations of the four offices. Chris has been licensed for about eight years and has always had an interest in real estate, says Mike Cartwright. “I am not going to retire and will stay on as president, but most of the decision making will be left to Chris as he will eventually take over. Chris is a people person and has a great ability to lead so I believe the company will grow and have great success in the future.” ■ ■ ■

From left: Christian Bouvrette, Anne Léger, Lise Lechasseur and François Léger of Royal LePage Humania.

Online real estate brokerage Vito Campanale

Ricky Rathore

Continued on page 6

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6 REM SEPTEMBER 2017

Multiple Listings Continued from page 4

Casalova has acquired My Property Managers (MyPM) and its $35 million in assets under management. MyPM is a professional property management group that manages residential properties in the Greater Toronto Area. This deal is Casalova’s first acquisition since its founding in 2014. “This means that people can now buy, rent, manage and sell properties all through Casalova,” says Ray Taaeb, CEO and cofounder of the firm. “Our clients have been requesting property management services for some time now and we’ve been testing it

privately since January.” All current MyPM customers will receive a $50,000 rent guarantee and $50,000 vandalism protection. The entire MyPM team will join Casalova. Carole Charbonneau, CEO of MyPM, will work under the firm’s Asset Management and Realty division. ■ ■ ■

Century 21 Leading Edge Realty recently opened an office in Lindsay, Ont. This marks the 17th location for the franchise. “Earlier this year, another brokerage in the area shut down. Agents contacted us and told us they wanted to work with the

Century 21 brand, so it made sense to open the new office,” says Gary Plummer, manager of Century 21 Leading Edge Realty. The office has six sales representatives and plans to continue to grow. The team at Leading Edge Realty credits its reputation as a place for exemplary training and technology as the reason behind the latest success. “We often hear from our agents that we do things differently,” says Plummer. “We are considered bestin-class and are proud that we continue to provide an environment where people want to build their careers.” ■ ■ ■

Century 21 First Canadian

now has a boutique office in the Walmart in northwest London, Ont. Any Century 21 agents can drop in as needed, but it also has 19 unique agents to serve the local community during the store’s prime hours. “I always think you should try something new and different. This is a community-based area and I just thought the brand would fit into the neighbourhood nicely,” says Vito Campanale, owner and broker of record for First Canadian. “The north end of London is an up-and-growing area,” he says. “In the short time we’ve been open we’ve been pleased with the growth we’re seeing and we’re happy to help our clients

establish themselves here.” ■ ■ ■

Ricky Rathore has teamed with Wasim Ansari to open Re/Max Empire Realty in Markham, Ont. As reported in REM in May, Rathore has experience as a mortgage agent, lawyer, salesperson and broker/owner. He has now teamed with Ansari, who has an extensive resume, including 20 years of banking experience. Ansari most recently worked as a sales professional. Ansari says his banking experience has provided him with the ability to work under pressure. People trust him and real estate is REM all about trust, he says.

CRM aims to add value for clients The word-of-mouth, automated system allows the agent to invite trusted connections to join and tracks the number of referrals made to trigger reciprocity.

Re: Saskatchewan real estate boards move to amalgamation (REM, August)

here are a few technical, albeit very important issues, to clarify in this article. Unlike in B.C. where an amalgamation of existing associations was proposed, this is not the approach being taken in Saskatchewan. Rather what is being proposed is that existing associations be dissolved and that a new membership association be created for the province. Members will only be voting on the dissolution of their current association. There is not an amalgamation of local boards with the Association of Saskatchewan Realtors (ASR) being considered as stated in the article. The ASR will also be dissolved along with the other boards if members support the proposal. Assuming members support the resolutions to dissolve at their respective votes, they will then have the option of applying for membership in the new single association once it is up and ready to accept memberships in 2018. Gord Archibald CEO, The Association of Regina Realtors Inc. Regina REM

Cover photo: RACHAEL LITTLE

n the Cheers bar of life, how do you make sure everybody knows your name? A new software program, BellaRuby Closing Gift, helps agents build relationships with their clients by subtly keeping their name front and centre. Nat Wallen, who has been a real estate agent since 1995, created the BellaRuby customer relationship management system software to help busy agents keep in touch with their clients on a regular, but not-annoying, basis. “A National Association of Realtors survey says 84 per cent of homeowners don’t remember their agent’s first name after two years,” says the Charleston, S.C.-based Realtor. BellaRuby (named after his daughters, 12-year-old Bella and 10-year-old Ruby) helps agents fit relationship building into their busy day and creates after-sale value for the long-term, he says.

Publisher HEINO MOLLS heino@remonline.com

Editor JIM ADAIR jim@remonline.com

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

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The best thing is that the software does the lion’s share of work for you – all agents must do is spend about 10 minutes entering information and the software does the rest, sending clients helpful reminders indefinitely from the time the transaction closes. Agents can add their entire files (including ones that contain more than one document) at once. They can create a welcome video with a personalized message and offer clients the names of their trusted contacts for home repairs and services. Clients will receive 14 communications per year, from a fun “half birthday” greeting to insurance and maintenance reminders. Each communication bears the agent’s name, photo and contact information. When clients request contact information for home repairs and services, the agent gets the request and passes along the information.

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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 2017 REM. All rights reserved. Reproduction in whole or in part without written permission from the publisher is prohibited. The opinions expressed in REM are not necessarily those of the publisher. REALTOR® and REALTORS® are trademarks controlled in Canada by The Canadian Real Estate Association (CREA) and identify licensed real estate practitioners who are members of CREA. MLS® and Multiple Listing Service® are trademarks owned by CREA and identify the services rendered by members of CREA. REM complies fully with the CREA’s Trademark Policy (section 5.3.2.6.1). ISSN 1201-1223

That provides another point of contact with the client. The wordof-mouth, automated system allows the agent to invite trusted connections to join, and tracks the number of referrals made to trigger reciprocity. Agents can keep track of statistics on their dashboard and homeowners can use their dashboard to stay organized, with separate “vaults” for different types of documents and photos. They can also set their own reminders. Each time a reminder pops up, it includes the agent’s photo and information. Wallen says he would have had more business if he had found the time to cultivate more relationships. However, agents get busy and things fall through the cracks. BellaRuby is there to make sure that doesn’t happen, he says. An unlimited number of closing gifts are available for $59 US per month. For details, visit REM www.bellaruby.com.

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8 REM SEPTEMBER 2017

Selling high-end island properties

As a summer cottager on “The Bay” all his life, salesperson George Webster created a market niche for himself selling luxury private islands. By Dennis McCloskey or boat taxi if it’s a remote location. Sometimes he uses a float plane or helicopter.

Webster specializes in island sales in Georgian Bay.

hen George Webster was enjoying boyhood summers with his family exploring the clear waters of the 30,000 islands in Georgian Bay, Ont., little did he know that one day he’d be selling some of the familiar – and now multi-million dollar properties – as a successful real estate salesperson. While he represents a range of clients and properties, Webster specializes in island sales and has sold a $6.8-million property in Sans Souci, and many others for between $3 million and $4 million. Several of his Georgian Bay listings that have recently sold for over $3.5 million are near such places as Pointe Au Baril, Killarney, Snug Harbour and an area known as The Archipelago. “Great wealth is not a requirement to be an island owner,” he says. “But a commitment to the island lifestyle certainly is.” He adds that a salesperson selling in this niche market must be comfortable dealing with highnet-worth individuals “and one must be able to establish a level of credibility and trust. Above all, as in all successful real estate endeavours, it is passion, enthusiasm and commitment that are the hallmarks of a successful salesperson.”

He notes there is an inventory of cottages in every range in Georgian Bay, from great old family compounds to newer architecturally designed custom builds to simple rustic cabins. “The area has opened up considerably since I first started and there certainly are many more luxury cottages and beautifully refurbished and restored cottages now than when I first started selling in the area.” When he was 16, Webster’s family moved to the U.S. and he attended a New England preparatory school for Georgetown University, where he majored in business administration and minored in European history. Upon returning to Canada, he became involved in construction management when he formed a partnership with a close friend (and distant cousin) who was an architect working on heritage preservation in Toronto’s downtown core. His partner oversaw concept planning and Webster’s job was to attract tenants and investors. He spent so much time exploring the Georgian Bay islands, its waterways and back bays (often with a fishing rod) that he developed “a familiarity and a passion” for the area. He

wanted to spend as much time there as possible. He and his wife owned an island in San Souci since the 1980s and he observed that island properties in the area were somewhat underserved and under represented. Thus, he heard the call, not only of the loon, but of real estate. Webster entered the business with Moffat Dunlap and while he enjoyed 15 years with that firm, he wanted to develop his own brand and was offered that opportunity by Royal LePage Meadowtowne Realty in Mississauga, where he now works. When asked about his compelling passion for Georgian Bay with its 2,000 km of shoreline, Webster waxes poetic. “It’s hard to isolate a single favourite attribute. I suspect it’s the region’s sheer natural beauty, vast expanses of Precambrian granite, iconic windswept white pines and endless waterways.” Asked if the 15 per cent foreign buyers tax has resulted in a slowdown of sales, Webster says that foreign buyers are not a major factor in The Bay. “The Greater Toronto Area is the main market where it is within a two-hour drive.” He takes clients from island to island in his own boat,

Webster says there are two main classifications of Georgian Bay island buyers. “The third or fourth generation Americans whose families originally settled Pointe Au Baril and Sans Souci in the early 1900s but whose children are now dispersed worldwide as a result of globalization, is one identifiable group,” he says. “The other is baby boomers who may have several children, making transfer of ownership of the family island complicated, or after summering on The Bay for 30 years or more, they wish to sell and use the proceeds for other endeavours.” He describes the buyers, in general, as “professionals, often from the financial sector and always very astute business people who understand every nuance of the market.” Webster concedes there are challenges in selling and getting cottages built on an island. “Building tends to be more expensive as the materials have to be barged to the island and the workers have to boat in daily or have lodging on the island provided for them,” he says. “As in all construction, inclement weather can slow down the process, remembering that building is only a maximum sixmonth season.” Municipalities enforce rigorous official plans and strict building codes, which he regards as a good thing to prevent overbuilding and not exceed the carrying capacity of fragile island ecosystems. Webster advertises his services in print ads and articles in national newspapers; in feature stories in the Private Island print magazine; online and through his website georgewebster.ca; and even from exposure on the HGTV

Island Hunters series. He says the best advertising is referrals from satisfied customers. “We also promote our listings with individual ‘Property Showcase’ high-resolution photography, aerial and drone shots, 360 video tours and full-colour brochures from four to 12 pages, depending on the property.” It can take several seasons to sell a luxury property because there are a limited number of buyers and it depends on the economic climate. And, Webster suggests, Georgian Bay is not for everyone because it takes a lot of work and its more challenging to own a boat-access property than a road-access property. Many properties are three-season. “However, many prefer the less timid cottage experience of The Bay to that of highly populated and busy areas such as Muskoka,” he says.

George Webster

Webster offers some thoughts for real estate professionals who might wish to get into this segment of the market. “It’s a seasonal market (six months at best); it helps to be a part of a cottage community to have a good working familiarity with the area and to enhance your credibility.” His best advice? “You must have excellent boating and navigational skills to know your way in the waters as you will be responsible for the safety of your clients and their families.” REM

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â&#x20AC;&#x153;At the Craig Proctor Discovery Day, I wonâ&#x20AC;&#x2122;t push you to do MORE, but instead show you how to improve what youâ&#x20AC;&#x2122;re already doing so you get better results.â&#x20AC;? â&#x20AC;Ś not with you, but with the way youâ&#x20AC;&#x2122;re approaching this business. Look, most agents work very hard at their businesses but they continue to struggle with not enough leads, not enough hours and not enough return on their investment of time and money. Why is this? Well, the problem is that theyâ&#x20AC;&#x2122;re spending a disproportionate amount of time on what I call â&#x20AC;&#x153;Low Probabilityâ&#x20AC;? activities such as cold calling, door knock % They know these activities arenâ&#x20AC;&#x2122;t very productive, but theyâ&#x20AC;&#x2122;re stuck in the paradigm that working hard at these grunt prospecting activities is the only way to succeed, and if theyâ&#x20AC;&#x2122;re not personally succeeding, they believe itâ&#x20AC;&#x2122;s because theyâ&#x20AC;&#x2122;re not working hard enough. And so they keep at it because when they look around at what other agents are doing, it seems like itâ&#x20AC;&#x2122;s the thing to do, and thatâ&#x20AC;&#x2122;s what a paradigm is ... paradigms are simply other peopleâ&#x20AC;&#x2122;s habits, whether they be good or bad. So they continue at these activities, but try to outwork everyone else.

to make an outbound call again At the Craig Proctor Discovery Day, I wonâ&#x20AC;&#x2122;t push you to do MORE, but instead show you ! " ing. I call this â&#x20AC;&#x153;Proctor-izingâ&#x20AC;? your business. In other words, Iâ&#x20AC;&#x2122;ll show you how to make simple changes to things that youâ&#x20AC;&#x2122;re already doing so you can set yourself apart from your competitors and

you out and ask for your assistance. For example, Iâ&#x20AC;&#x2122;ll show you how to make your website better so it will generate dozens of leads every week. Iâ&#x20AC;&#x2122;ll show you a simple redesign of your business cards that will set you apart from your competitors. Iâ&#x20AC;&#x2122;ll show you inexpensive but incredibly powerful ad copy that will compel prospects to contact you. Iâ&#x20AC;&#x2122;ll teach you better language to use when you speak with buyer and seller prospects that will lead to more appointments. Iâ&#x20AC;&#x2122;ll also show you how to work with buyers so your time isnâ&#x20AC;&#x2122;t wasted and, more than that, so youâ&#x20AC;&#x2122;ll get paid by every buyer you work with. Iâ&#x20AC;&#x2122;ll even show you how to get more referrals. Today, it seems just about everybody has an â&#x20AC;&#x153;opinionâ&#x20AC;? about me. Itâ&#x20AC;&#x2122;s up to you whether you will rely on othersâ&#x20AC;&#x2122; opinions or whether to investigate for yourself. Everybodyâ&#x20AC;&#x2122;s entitled to their own opinions but nobodyâ&#x20AC;&#x2122;s entitled to their own facts. Facts are facts. I urge basing your career on facts that you get for yourself and judge for yourself. Not hype and empty promises. Facts.

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10 REM SEPTEMBER 2017

Sales reps promote benefits of co-ownership “While people are kind of desperate for real estate and improving their net worth and all that jazz, this is bigger than just wanting to own real estate,” says salesperson Lesli Gaynor. By Kelly Putter

s a self-described serial renter, Andy Stark thought home ownership was a tad out of reach for his family of four in the tony Leslieville neighbourhood of Toronto he currently calls home. The 53-year-old George Brown College instructor had been thinking of taking the plunge into home ownership for years and now he’s ready to dive in. The only problem is his $190,000 down payment may not be enough to acquire the house he wants in the part of the city he likes. Enter Toronto sales rep Lesli Gaynor of Royal LePage Burloak Real Estate. She’s been getting attention as a matchmaker for people who want to own a home but don’t have enough capital to do so on their own. The former social worker and restaurateur is now working to revolutionize oldschool home ownership models by aligning wannabe homeowners with other likeminded folks. So far, she’s staged two events in which interested parties show up to meet others in a quickie meet-and-greet style that’s like speed dating. “The fun part is it gets us thinking differently about property ownership,” says Gaynor, 53. “People

are living differently and they don’t have to love each other to live together. There are benefits: you walk my dog and I walk yours, and you save 50 bucks a month. No one’s expecting dinner to be served or your laundry to be done, but there are also social benefits.” Gaynor hooked up Stark and his family with a woman in her 70s who is also interested in a co-operative living arrangement. Besides their joint financial clout, both sides imagined added benefits to living together: she would have someone to look after yard work, for example, while Stark hoped she might fulfill a grandmotherly role for his young sons. And though the woman has since backed off, Stark is still hopeful. “Lesli brought the idea to the table that we can co-own and we were copacetic with someone who would be a good fit,” he says. “In other parts of the world people are doing all kinds of creative things to own a home.” That concept of co-ownership among non-intimate partners is the thinking behind GoCo Solutions, Gaynor’s own start-up. Her website www.gocosolutions.com offers advice on everything from getting started and find-

ing partners to securing financing. Gaynor fully understands the concept of co-operative home ownership as she co-purchased a home in Toronto’s Parkdale neighbourhood 26 years ago with a girlfriend. A single mother at the time, Gaynor lived downstairs with her baby while her friend lived upstairs. The pair lived in the home seven years. Having an onthe-spot babysitter and not facing the scary and costly prospect of home ownership alone were two huge benefits for Gaynor. “I’ve always believed in this communal approach,” she says. “Living that way made our lives better for that period of time. We had our moments and probably needed clarity around big financial issues like when the roof leaked, but all in all it was amicable and it was fine. We’re still close friends.” Since taking on the role of real estate matchmaker, Gaynor has teamed up a few home-buying partnerships. A salesperson for just two years, Gaynor is getting about three referrals a week now as she establishes herself as the GTA’s go-to real estate expert of co-operative living. “People are calling me up and saying I would like to talk to you about co-operative purchasing,”

Lesli Gaynor at a real estate meet and greet event that’s like speed dating.

says Gaynor. “And while people are kind of desperate for real estate and improving their net worth and all that jazz, this is bigger than just wanting to own real estate. It’s about connection and people doing things outside of traditional boundaries.” Communal or co-op living arrangements have existed in one form or another for years. Alternative living arrangements are what many single, divorced or widowed baby boomers seek as they grow old and reject the notion of large institutional retirement and nursing homes. Caledon, Ont. salesperson Dorothy Mazeau plans to launch a type of service that matches like-

A lesson from the Toronto market By Jeffrey Wagman ere is a lesson that Greater Toronto Realtors recently learned, but it applies to all markets. If your client purchased a home in the GTA during the frenzied early months of 2017 and had not sold their home in advance, why did you wait to list their house? Was there work that needed to be done first? Did you think you had time and that the market would

even continue to prosper? You aren’t alone. Now let’s address the issues at hand. You are a real estate agent, not an order taker. You are paid to advise and consult and offer the most professional advice and opinions possible to your clients. If you have a buyer out looking at homes with the intention of buying, and their current home needs some attention before going to market, your advice and direction should be to have the work done immediately so when they enter in

to a binding agreement with a seller, their current home is ready to go market the next day. Have a look at the many buyers who have firm and binding deals that they entered into in February or March and will be closing soon, who waited to put their homes on the market in May. Do you see the problem? Markets are not guaranteed. I’m sure you have been to a highend restaurant and on the menu next to lobster or fish, it says, “market price”. That’s because it

can differ at any moment. Real estate markets are no different. You can’t “wish” them to always be good or stay the same. My best advice is to not be a cheerleader, be a leader when it comes to looking after your clients. Jeffrey Wagman is a partner and broker of record at Forest Hill Real Estate in Toronto. He sells homes and condominiums in the central Toronto market and is consistently ranked in the top one per cent of all real estate salesREM people in Toronto.

minded folks looking for housing. Think The Golden Girls sitcom minus the Miami setting. The 69year-old has lived in five different situations with both female or male friends and couples during the past 35 years since her divorce. “My motivation to live this way was not primarily financial,” Mazeau says. “It was companionship. Even when I was in university, I shared accommodations with three other women. I think people depend too much on their spouse for everything. But community is so important also.” Gaynor thinks buying with likeminded strangers is feasible given the prohibitive costs of housing in today’s real estate market and our innate human need for interdependence. It’s a concept that needs to be normalized, she says, adding that the finance and legal industries are starting to catch on. Meridian Credit Union, for example, recently launched its friends and family mortgage, which allows up to four people to be placed on title at no extra cost. And Duca Financial Services Credit Union launched its More Together mortgage in May, which allows up to six individuals on title. Stark, meanwhile, has considered moving out of the city, but it’s not a plan he or his wife prefer. From Leslieville, he can ride his bike to work and his Ecuadorian wife needs to be near her citybased Latin American community. “We want a place to call home and we’re willing to make concessions to make that dream come true,” he says. “This feels like a REM place to lay our roots.”

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12 REM SEPTEMBER 2017

Success is about more than money

“Real estate is a breeding ground for addictions,” says Ryan Hodge. “It’s a profession based on validation – which should lie within you, not come from others.” By Susan Doran

everal years back, Ryan Hodge found himself in a dead zone.

of family life, or have substance abuse issues.

“I had experienced a really successful year but didn’t feel it. So I knew something had to change,” he says.

“Everyone has some form of addiction. I was a buffet of addictions,” he says. “My belief is that every experience we create is a choice and everything negative we experience is a symptom of a broken soul.”

Hodge, once a top agent with Re/Max, chose to leave that behind in 2013 to start up an independent brokerage with his business partner Shawn Westerik, servicing London, Ont. and surrounding areas. It was nerve wracking to leave one of the largest real estate organizations in the world but the pair’s fledging company, the Realty Firm, has become everything they’d hoped. Having started from scratch – with a big, empty office that they could have fired a missile through without hitting anyone – they have since recruited over 100 sales reps and opened another office, making the Realty Firm one of the fastest-growing and most productive brokerages in the area.

In 2015, with a soul that was fortunately being put back to rights, he took a leap and started Ryan Hodge Coaching and Consulting, a personal development company for agents and brokers seeking growth in a variety of professional and personal areas. “Bringing forth the highest version of myself has helped create an avatar for my clients,” says Hodge.

And yet as this process unfolded, Hodge was feeling unfulfilled and lost.

Tailored one-on-one to the individual, both business and life coaching are on offer, at a cost of between $4,000 and $6,000 for a 12-week program. Hodge explains that before this venture, for years he’d been giving “under-the-radar informal coaching” to business associates who hoped to pick his brain and gain insights into his success with lead generation.

“I was at a real place of reflection,” he says. “I went down my own spiritual path. I started working with various mentors to discover more about myself, reading about and studying human behaviour.”

Now that he has expanded into professional individual coaching, Hodge has had 30 speaking engagements across North America in the past yearand-a-half, and is also at the helm of a couple of Facebook platforms.

His work and past personal journey were catalysts, he says.

With the coaching endeavour gaining traction, he says that while he has helped some clients “double, triple and quadruple their business,” his goal is for them to learn much more than how to increase productivity.

“We are blessed at our brokerage,” Hodge says.

“Real estate is a breeding ground for addictions,” he says. “It’s a profession based on validation – which should lie within you, not come from others.” He has noticed that an inordinate number of real estate professionals have had affairs, or focus on work at the expense

“A lot of people I counsel are experiencing a lack of personal fulfilment. You can’t serve anyone at the highest level until you learn to serve yourself at the highest

level first,” he says. “Many people have patterns that aren’t serving them and I share my story from a place of transparency, vulnerability and integrity. The client identifies the areas they want to commit to and I help them self-discover.” Hodge is unique in that he focuses on personal development first, he says. He admits that it’s not unusual for clients to resist life coaching and stick strictly to business. “It’s not an easy sell,” he says. “Very few people want to take a good look at themselves. They just want to learn how to make more money.” Hodge prefers to coach people who “desire true spiritual growth, not just a boost in the business world,” and says that he has turned clients away who aren’t there for the “right” reasons. That said, there are plenty of right reasons. He has even helped clients with fitness, health, nutrition and body transformation. “I am not a fitness trainer but I lost 40 pounds over six months in 2015 and have maintained it,” he says. “So if a client wants guidance, I can suggest strategies.” Not surprisingly, Hodge – a man who once noted that he will probably always be a little lost but is okay with that – is a consistent strong nurturer of his own personal and professional growth. “I personally work with a business coach and three highlevel spiritual guides myself at all times,” he says. He is especially pleased to have recently been accepted into New York Times’ best-selling author and spiritual teacher Gary Zukav’s Authentic Power Immersion program. While having branched out

Ryan Hodge (Photo: Rachael Little)

into coaching, Hodge continues to co-own and run the Realty Firm with Westerik. Both still actively sell as well. Asked how he manages to coach while remaining full time in real estate, Hodge says that for starters, Westerik is now the Realty Firm’s sole broker of record. “We made the decision that he would be more suitable,” Hodge says. As well, Hodge says he is “very selective” with his coaching clients, taking on a maximum of 20 at any given time and dedicating only about 10 hours weekly to one-onone coaching sessions via phone or video call (with

some additional ongoing “open dialogue” through social media, text or email). “I am a 4 am wake-up person,” he says. “I tend to get a lot done before 7 am. And I can run a sales business from anywhere in the world.” Clients looking to boost their earnings may find some of Hodge’s advice paradoxical, particularly when he counsels them not to get so wrapped up in real estate. “I used to be that way too, but that’s a mask indicating you’re not experiencing life to the fullest,” he says. “I help clients understand that real estate is not their life purpose. It is a vehicle to let us do the things we want to do.” REM

Candles for Hope

Providing Birthday Parties for Homeless Kids is a New Passion for REALTORS® The life of one young man in Oregon has touched so many and now his legacy has inspired real estate agents and brokers in New York to bring one of the simple joys of childhood to homeless kids – a birthday party.

at the age of 23) is continuing now through the efforts of his father and family through the non-profit organization, Devin’s Destiny.”

Susan Hamblen, Broker/Owner, and the team at EXIT Realty Achieve in Smithtown, New York, attended EXIT Realty Corp. International’s annual convention last fall in The Bahamas and were moved to action by the keynote address of Rick DeLuca. It was DeLuca’s rise to real estate super-stardom that brought him to EXIT’s stage but it was his personal story that inspired Hamblen.

Continuing the dialogue with DeLuca, it became apparent to Hamblen that the best way to create something meaningful was to start a similar work in New York to serve homeless children locally. In a New York minute, a board of directors was formed, mostly from among the impassioned real estate professionals at Hamblen’s EXIT Realty Achieve brokerage and Candles for Hope was born. The group applied for non-profit status and were granted 501C3 status in January of 2017.

“We learned that Rick had a foundation and were inspired to ask about its work,” said Hamblen. “We learned of its mission to provide birthday parties for homeless children and our hearts were stirred. I reached out to Rick in Oregon to learn more and to see how we could get involved. Rick introduced me to the memory of his son, Devin DeLuca, an extraordinary young man who had a love for homeless people and selflessly served them. Devin’s passion (cut short

“Jeff Mistretta, Vice President of Candles for Hope, and I began to share with our agent team the mission of Candles for Hope; to provide birthday parties for displaced children in our community. Many were inspired and immediately got involved with volunteer and financial support,” said Hamblen.

Candles for Hope_single page.indd 1

8/11/2017 11:33:12 AM

The coordinator of a local homeless shelter spread the word about Candles for Hope and under the mentorship of DeLuca the initiative took off, hosting its first three parties in January. Parents reach out to the organization and make a request for a party including the wish list of gifts for the child. Candles for Hope volunteers purchase the gifts and wrap them, arrange and fund the party. The gifts and decorations are delivered to the venue, “and then we disappear, just like Rick taught us. We don’t want the child to know that an organization is hosting their party. We want them to think their parent is doing this for them,” said Hamblen. The local Chick-fil-A restaurant is the party venue. The party consists of meals, time on the playground, a visit from the Chick-fil-A cow, balloons and gifts, ice cream and cookies with candles. “The owner operator, Bryan Beasley, and

Chick-fil-A committed to donate food for one year of parties hosted at their location. “One of the most impactful moments of the night for me was the hug I shared with Rick DeLuca as the evening closed and the moment I could look him in the eye and tell him that Devin’s life was continuing to make an impact in the world,” said Hamblen. Other EXIT Realty brokerages are getting on board with Candles for Hope. “In the weeks prior to our fund-raising event, Benny Diasparra, Broker of EXIT Realty Search, reached out to me about starting a chapter of Candles for Hope in the Bronx. We have been working with Benny and his team and are already taking steps to get this first chapter off the ground. After the event, two additional EXIT Broker/Owners reached out to me about how they can start chapters of Candles for Hope in their communities.” Hamblen credits much of the success already achieved by Candles for Hope to the EXIT Realty Achieve Team, some of whom are now helping to lead the nonprofit including Jeff Mistretta, Vice President, Elta Bergold, Secretary, Jason Furnari, Social Media Director and Terri Consey Affiliate Secretary. In addition, the assistance of Crislyn Jacob and Lauri Adams of the local community is much appreciated.

From left to right: Jeff Mistretta, Rick Deluca, Phil Dupree, Susan Hamblen, Elta Bergold catering manager, Christina Geist, are so helpful and supportive and make it easy for us to host the parties,” said Hamblen In no time, word of Candles for Hope’s work spread over social media. Community business leaders like Jacqueline Sendra, loan officer at United Northern Mortgage Bankers and her business partner, Susan Borozan Belese, committed funds from each loan they close. The organization’s kick-off fundraiser was held on March 21st and featured a Charlie and the Chocolate Factory Willie Wonka theme. “We invited Rick DeLuca to be our guest and to speak at our event,” said Hamblen. The event drew more than 200 guests for an evening of dinner, dancing and entertainment. Business sponsors made it possible for ticket sales and donations to be committed to funding birthday parties. DeLuca shared stories of homeless children in Oregon and what having a birthday party has meant to them. Phil Dupree, coordinator of the homeless shelter in Commack tearfully shared the impact Candles for Hope is having on the families and children at the shelter. “We honored the owners and the manager of Chick-fil-A for their help in our launch. We had a great party and even the Chick-fil-A cow made an appearance on the dance floor. We were overwhelmed by the number of people who want to be involved in our cause.”

From left to right: Jeff Mistretta, Tom Hamblen, Susan Hamblen, Elta Bergold, Bryan and Mary Beasley, Cristina Geist

Candles for Hope_single page.indd 2

The fundraiser was a huge success, with net proceeds exceeding $40,000 for the night and 25 more people who specifically committed to sponsor one party each (at a cost of $200).

From left to right: United Northern Check - Jeff Mistretta, Jacqueline Sendra, Susan Hamblen, Susan Borozan Belese, Elta Bergold

“As Candles for Hope continues to grow and the vision of what it can become crystallizes for me, I’m reminded of the basic truth I’ve always known; people want to be a part of something good and something larger than themselves. EXIT Realty has been that for me. And now through the love and support of my EXIT family, Candles for Hope is also that bigger thing we can use to provide hope and light to families.”

For more information visit CandlesForHope.org

www.exitrealty.com

8/11/2017 11:33:18 AM

16 REM SEPTEMBER 2017

Buyer agency fees By Ross Wilson

n this sixth in the series about our industry’s fee for service, let’s look at this controversial topic from a buyer agent’s perspective. Though not nearly as significant a concern for buyer clients, we should, in our evolving marketplace, still be reasonably competitive for them too. Let’s start with some questions. When do you ask your buyers to sign a Buyer Representation Agreement (BRA)? When you meet for the first time? After you’ve shown a few homes, or immediately prior to signing an offer? Do you ask for a short-term commitment such as 24 hours and include only the specific properties you intend to show? Or a longer-

term general contract? Do you delegate this task to a junior agent on your team? Or do you even ask for a commitment – in writing or otherwise? Maybe you rely on an implied, trusting verbal arrangement. Or, as I’ve heard stories, maybe before you even agree to step out the door to show any property, you flatly refuse to invest any time unless they commit to signing with your brokerage. The practice of buyer agency has certainly been contentious since its inception and largely inconsistent. My normal practice was to ask for a commitment once my buyers and I had become mutually comfortable. Unless they were friends or former clients, prior to formalizing our relationship with an agreement, I needed assurance they were serious, sensible and most importantly, financially qualified. Another critical factor was my personal determination of whether I could work with them. Would we be compatible? Usually, though, I got a signature on a BRA and

an offer contemporaneously. However, to protect yourself and comply with legislated requirements, you’re supposed to obtain a written commitment as early as is practically possible in the process. Inherently, current practice involves a lot of discretion. When drafting a BRA and inserting your commission rate, you must once again decide your worth (see my last column). To preclude my buyers from having to pay additional fees, I usually set my rate to coincide with what was typically offered to co-operating brokerages. However, if they chose to offer on the rare listing that advertised a lower rate, I obviously advised them of the additional fee they’d have to pay if their bid was successful. But without a previously signed BRA, this option would be unavailable to you. Unless the seller agrees to pay your normal rate, you’d be forced to accept the lower fee. Many agents avoid the potentially lucrative scenario of dual

agency. Why? Well, I’ve been told they’re afraid of erring and placing themselves in legal or financial jeopardy. Or they say there’s no point in taking the risk because they’d be forced to cut their fee anyway. Accordingly, they steer clear of navigating these potentially hazardous waters. This is obviously a personal choice, but consider the proverbial man against the sea. If you’re familiar with fundamental seamanship and are well-trained and equipped to handle a ship’s operation, then the odds are greater that you’ll arrive unscathed at your destination. Dual agency is no different. If you understand the process and carefully follow procedure, you’ll most likely satisfy both clients’ needs. It’s just a matter of mediating a duel, thinking and carefully choosing your words, maintaining appropriate confidentiality and caring equally for each party. However, when a brokerage represents two competing buyers

for the same property, the possibility of a conflict increases. Challenges can be further exacerbated if the subject property is listed with the same brokerage that represents the buyer. But as I said, dual agency seems more problematical than it really is. Just ensure you understand the procedure and your responsibilities. In the next column, I’ll address the subject of commissions from the perspective of what is referred to in our industry as double-ending, which of course, involves dual agency. “It ain’t what you don’t know that gets you into trouble. It’s what you know for sure that just ain’t so.” – Mark Twain Ross Wilson, broker with iPro Realty, has extensive experience as a brokerage owner, manager, trainer and mentor. His book, The Happy Agent – Finding Harmony with a Thriving Realty Career and an Enriched Personal Life is available where print and e-books are sold, including the TREB, BREB, RAHB and OMDREB stores. Visit RealtyREM Voice.com.

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18 REM SEPTEMBER 2017

What to do when the deal goes wrong Here are five key lessons for salespeople to remember when things go wrong in a real estate deal. with

By Mark Weisleder

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Be careful if anyone tries to blame you for what has happened. It goes without saying that when problems arise, it is easy for buyers or sellers to try to blame the salespeople for what has happened. In my experience over 34 years, it is rarely the agent’s fault when deals don’t close. You may feel sorry for the clients, but that is all you should feel. 2. What if the client threatens to sue you for what has happened? Buyers and sellers think that if they threaten a lawsuit, somehow the agent will agree to pay part of their damages to end the matter. Remember, as long as the agent has not committed fraud, they are protected against any lawsuit by their errors and omissions insurance policy, meaning that you don’t pay for your lawyers to defend you. The client will typically be asked to pay at least $5,000 just to retain a lawyer to sue you, with thousands more still to come. In my experience, once clients see how much this is going to cost them, they end any talk of lawsuits. 3. What if the client threatens to report you to the real estate regulator? Somehow buyers and sellers are of the mistaken belief that the provincial real estate regulators are collection agencies for consumers. Not so. While regulators are supposed to

investigate every complaint made against a salesperson or brokerage, they are for the most part looking at whether the salesperson or brokerage followed their duties under the provincial acts for the protection of consumers. 4. How do I demonstrate to the regulator that I have followed my obligations? Always make sure that your paperwork is properly documented and that you have a written record of it. This includes making sure that the Working With a Realtor, Buyer Representation Agreement, Listing Agreement (and any amendments thereto) and the Agreement of Purchase and Sale have all been carefully explained and signed and copies have been delivered to the client. Also make sure to document any instructions in writing as well, to avoid any misunderstanding later. 5. Always speak to your broker or manager before responding to any complaint or potential lawsuit. It is always stressful when someone alleges that you made a mistake and that they are going to suffer a loss because of what you did, or trying to blame you for their situation. Resist the temptation to say something you may regret later. Try something like this as an answer: “I am sorry you feel that way. I will review my file and my notes and will get back to you.” Then go and discuss this with your manager or company lawyer and figure out what your next step should be. Mark Weisleder is a partner, author and speaker at the law firm Real Estate Lawyers.ca LLP. Contact him at mark@realestatelawyers.ca or toll REM free at 1-888-876-5529.

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20 REM SEPTEMBER 2017

THE LEBOW REPORT

By Barry Lebow

n various parts of the country, some buyers are backing out of deals. The reason for many is simple – they bought but could not sell (at their price) their own home. In many cases, one sale leads to a chain of sales and that first deal can cause problems for four or more other sales up the line. Recently a broker friend received a pleading email asking her to share in a $10,000 shortfall by a buyer. This was not her client. This party was the first in a chain that impacted three more deals. The first buyers could not sell their home, save for less money than they had budgeted for, and they wanted all the salespeople to kick in to share in their loss.

anitoba Tipi Mitawa, a non-profit organization established by the Manitoba Real Estate Association (MREA) and the Assembly of Manitoba Chiefs, recently received government funding to provide up to $540,000 to 10 households, which will be used to help Indigenous families transition to home ownership. “Today’s announcement will allow more Indigenous families to realize the dream of homeownership,” says Harry DeLeeuw, cochair, Manitoba Tipi Mitawa (MTM). “When we help families realize this dream, we contribute to building stability and vibrancy in our communities and neigh-

Saving deals: Whatever happened to the seller-take-back? I told my friend to simply reply that it seems fair if the party would sign a guarantee that the agents who contribute to the loss would get half of any appreciation over the next 10 years. Funny, isn’t it? People are always reaching out for others to help them share in their losses but seldom do they divide up their gains. So what options can a Realtor offer to save a deal or worse, a chain of deals? First, mortgage manipulation. Let’s take a simple example, the $400,000 house sale. We will assume the buyer has 20 per cent or an $80,000 down payment. The issue is that at the last minute the appraiser valued the house at $380,000 and the financing is now predicated on that price. The buyer still has the same $80,000 down payment. The problem is, they need another $20,000 to close the deal, which they just cannot come up with. Yes, you may be able to go back and renegotiate the price with the

bourhoods for generations to come.” David Salvatore, MREA’s CEO, said at the funding announcement event, “By providing financial literacy and home ownership education, and down payment assistance, Manitoba Tipi Mitawa provides a hand up that enables low-to-moderate income Indigenous families to attain home ownership. Ten Indigenous families will gain stability by residing in the neighbourhood of their choosing. “And these same 10 Indigenous families will be provided with a foundation for financial stability. Some of our Manitoba Tipi Mitawa families have already

seller, but the odds of that are against you. The simplest solution is to use a mortgage. You calmly present to the buyer and the seller that they face litigation, which is very costly and you have a plan to avoid it – a take-back mortgage. In this case I would advise the seller to take a note, registered as a second mortgage against the property for $20,000. The term would be maybe two to three years. I would start with offering the buyer no payments for the term. If the seller wants repayment, I would do something simple like $100 per month plus interest (to be negotiated). You can work on the terms. There are so many variables. I am not in favour of holding an amortized mortgage as a private lender. By taking back the mortgage, the seller still gets their price but just a small part of it is deferred. The buyer still lives up to their obligation in respect to that price. Here is another aspect. That

second mortgage, depending on how it is written and under what terms, is saleable. Private investors through mortgage brokers or lawyers are seeking good returns (for a saleable mortgage, interest must be in place). Before negotiating a seller take-back mortgage, speak to your favourite mortgage broker – one who handles private funds – and find out what terms are necessary to make it saleable and what the discount on the paper would be. If the interest rate is reasonable, the costs to sell that mortgage would mostly reflect fees to the broker and for legal costs. The seller may lose only a couple to a few thousand dollars in the end, which is a lot cheaper than the legal costs to sue a buyer who cannot close. Seller-take-back mortgages and discounting mortgages were once staples of this industry and are a forgotten method of making deals. There are other options for negotiating to close a deal, from

realized over $30,000 in home equity growth,” Salvatore said. Funding for the project was provided through the federalprovincial Investment in Affordable Housing (IAH) agreement. In 2016, the governments of Canada and Manitoba announced an expanded commitment to the IAH agreement, representing almost $90 million over two years.

The donations help provide immediate relief such as cots, blankets, family reunification and financial assistance for food, clothing and personal needs. To donate, text FIRES to 45678 to donate $10 to the Red Cross B.C. Fires Appeal.

■ ■ ■

Realtors across Canada have helped raise over $154,000 for the Red Cross B.C. Fires Appeal to support the communities across the province affected by the wildfires. B.C. wildfires have destroyed more than 300 buildings, including 71 homes, since April and have burned more than 6,060 square km in the province, according to Emergency Management B.C. Members of B.C. real estate boards have made $80,000 in donations. The B.C. Real Estate Association pitched in $40,000.

■ ■ ■

The London and St. Thomas Association of Realtors (LSTAR) hosted its annual Past Presidents Dinner at the Highland Country Club recently, bringing together nearly 20 LSTAR past presidents to celebrate more than 60 years of history, community reinvestment and camaraderie. The evening paid special recognition to LSTAR 2015

price concessions, extended closing dates or a commission reduction (why would you do that as you will be working even harder). But overall, I have found that taking back paper is one my best options to make a perilous deal become a solid deal. Want to learn more? Sit down with a mortgage broker who works with private funds and learn. Deals not closing? My favourite line was stated by Napoleon Hill of Think and Get Rich fame. He wrote, “It’s always your next move.” I keep that in my daybook as a daily affirmation. Barry Lebow just commenced his 50th year in real estate. He has had an extensive career and has been accepted by Canadian courts as an expert in real estate matters in more than 500 trials. He is an international speaker and an award-winning broker at Re/Max Ultimate Realty in Toronto. Email barry@lebow.ca, website REM www.barrylebow.com. president Carl Vandergoot. One of the night’s memorable moments was the fellowship between LSTAR’s most senior past president, Ron Richardson, who served in 1948, 1949 and 1959, and the association’s newest leader, president-elect Jeff Nethercott. “It was an honour to be invited to the LSTAR past president event as I ramp up for the 2018 presidency,” says Nethercott. “It was an amazing opportunity to connect and learn from others. So many things have changed in our industry, but the people who care to improve our profession and give back their time volunteering has REM stood the test of time.” Recently members of the Peterborough and the Kawarthas Association of Realtors took part in the Habitat for Humanity for Realtors Build Day.

THE POWER OF BLUE OWNER PROFI LE NAME:

Rafael Roberto

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A history of growth, built on customer loyalty. When my company opened for business more than 40 years ago, we had a vision to serve our clients at the deepest level and create lifetime business relationships. It’s a vision we’ve stayed true to over the years, as we’ve grown into a 10-office residential and commercial operation. This year, for the first time in our 28-year affiliation with Coldwell Banker, our company attained Chairman’s Circle status, a distinction awarded to the top 6% of Coldwell Banker companies in North America. It’s an honour we hope to repeat in coming years, with the help of our loyal clients. Rafael Roberto, President, Coldwell Banker R.M.R. Real Estate, Brokerage Head Office: Whitby, Ontario © 2017 Coldwell Banker LLC. All rights reserved. Each office is independently owned and operated. Coldwell Banker and the Coldwell Banker logo are registered service marks owned by Coldwell Banker LLC. Each sales representative and broker is responsible for complying with any consumer disclosure laws or regulations, as well as applicable Real Estate Association rules and codes of conduct. The trademarks REALTOR®, REALTORS®, and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA.

To discuss franchising opportunities in Canada: Andy Puthon President Mark Lindsey Regional VP Franchise Sales John Alexander Director, Franchise Sales coldwellbanker.ca/franchising 800-268-9599

22 REM SEPTEMBER 2017

OREA plan includes acting as “RECO watchdog” By Jim Adair

he Ontario Real Estate Association’s five-year strategic plan, which includes beefing up the image of Realtors, creating strong government lobbying efforts and working as an advocate for homeowners, was revealed recently in a livestreamed event. Featuring OREA president Ettore Cardarelli and CEO Tim Hudak, the event was designed to show members and the public that OREA is taking the gloves off when it comes to dealing with government policies and with the Real Estate Council of Ontario (RECO). “OREA will be a RECO watchdog,” said Hudak. “We will push our provincial regulator to get tougher on bad actors who erode the public’s trust while they engage in questionable or unethical practices.” Cardarelli added, “We need to raise the bar on professional standards. We need to make it harder

to get into the profession but easier to get kicked out.” Asked if pushing RECO won’t create conflict for the association, Cardarelli said that RECO officials pledged to work with OREA on a variety of issues, including updates to REBBA, the provincial act that regulates the industry. But he said the association isn’t happy when regulators and politicians only respond to issues after there has been negative attention in the media. He says it’s OREA’s job to advocate changes to industry regulations. “As an individual registrant, I am not comfortable personally with RECO using my membership money to become an advocate,” Cardarelli said. “I don’t think it’s their role. I think their role is to be the regulator and enforce those regulations.” Hudak said, “I think a lot of Realtors want to know where all the dues revenue goes. Dues have

Ettore Cardarelli and Tim Hudak during the livestreamed event.

increased, but has it actually gone to better enforcement or is it just going to administration?” OREA, which for years provided education licensing courses for the real estate industry, was forced to make changes when RECO chose a new provider. “In addition, OREA and its members face both external challenges (market conditions, regula-

tory obstacles) and internal ones (perception of low professional standards, lack of strategic direction). For these reasons, the board and senior staff decided OREA had to change,” says the strategic plan, which can be downloaded at orea.com. Among the goals of the plan is to “figure out who does what” to avoid duplication of services

between the local, provincial and national real estate associations. In B.C. and Saskatchewan, talks to merge real estate boards under one organization are ongoing. There are currently 39 real estate boards in Ontario. Cardarelli said during the livestreamed event, “We believe that technological disruptions currently pose the biggest risk to the livelihood of Realtors.” The strategic plan includes examining how other jurisdictions are handling change and attempting to mitigate risk, “with a particular focus on how consumers are being empowered through technology”. The plan will then come up with a strategy to tackle those challenges. The association is also making changes to its governance and staffing. Hudak says it has already cut more than $1.5 million in annual expenditures. The plan says OREA will “advance Realtor’s interests through a smaller, more focused senior management team including our new CEO, by making advocacy, not education, paramount.” OREA says it is also looking at “relocating to a more strategic and affordable location”. REM

A Little Mistake that Cost this Real Estate Agent $767,463.38 in Commissions (and almost his family) As you’ll read below, Real Estate agent Rudy Kusuma was doing pretty well by industry standards, earning annual commission of $250k. The problem is that the bargain he struck in order to earn at this level was one he couldn’t live with. Read his story. It’s one that will resonate with many of you. It’s now been a couple of years since Rudy shared his story, and the strides he’s made since then are remark-

able. With his wife, he’s grown a highly profitable real estate business with a team of 39. He’s written two best-selling books on real estate, is ranked as one of the fastest growing private companies by Inc. 5000, and generously donates money each year to charities he cares about to the point where he was recently recognized as being the single largest contributor to the Los Angeles Children’s Hospital. Despite the fact that he is a devoted family

man who is living the dream, he has vaulted up the Re/Max charts, ranking as #1 Team in the San Gabriel Valley and in the top 8 in all of California. Like so many agents in Canada and the U.S., Rudy attributes his success to what he’s learned, and is learning, from Millionaire Agent-Maker, Craig Proctor. Real success in any business means not only healthy earnings, but also time off to enjoy life. The fact is, how-

Learn More About Millionaire Agents Like Rudy at MoreMillionaireAgents.com Before Learning Craig’s System: l I worked 7 days a week earningg over $250k in annual GCI l I have 2 boyys and a wife that I rarely got to spend time with because I was working 24/7 l One of my boys is 3-1/2 and the other a year old. Because I was never home, and my wife was working a 9-5 job out of the house, we decided to send our y ungest to live with my in-laws yo in Indonesia so they could take care of him and give him the time we were unable to ourselves. by Rudy Lira Kusuma While I’ve worked hard to gett to my ge my cu curr rren entt level of success ce ss, ha hard rd wor workk di didn dn’tt alw alway ayss translate into the kind of life I yearned for. I had achieved a level of financial success, but what it took from me and my family in terms of time was, quite frankly, unforgiveable. It was only when I decided to invest sti tig igat ate te, and and the the hen n to to emb emb mbra race ra ce,, ce Craig Proctor’s Ultimate Real Estate Success System that my entire life turned around. Let me give you some specifics:

My wife was able to quit her 9 to 5 JOB and joined my business as my partner (she’s the most awesome IS ISA) A) l In th he last l 12 months, h I generated $1,017,463.38 in GCI and my (very achieveable) goal is $3 Million in GCI in the next 12 months l I am in the top 2% of LA Realtors l Now, I weigh 170 lbs and have b been keepiing thi his heal h lth hy lifestyle since January 2013. I eat healthy (no more junk food) and exercise at least 3 times a l

“I had achieved a level of financial success, but what it took from me and my family in terms of time was, quite frankly, unforgiveable.” I weighed 210 lbs - overweight because I had to eat fast food almost daily while showing homes (no time for exercise) After Implementing Craig’s System: l I no longer work 7 days a week and an d am abl abl blee to spe spend d all all d day ay Sun Sunday with my family – my “whole” family given that our youngest son is now back living with us l

week. I just wanted to share with you how completely this system has totally transformed my life. I can totally see now how I can develop a real estate BUSINESS that th at pro rovi vide dess mo more re mon money eyy, ti time me and freedom for my family. Craig Proctor’s System has literally brought my family together - that’s priceless!!!

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

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

business systems. Not only is Craig Proctor’s real estate system responsible for more Millionaire Agents than any other coach or trainer, but Proctor was a highly successful AGENT himself for more than 20 years right here in Canada. As you may know, he was twice named the #1 RE/MAX agent in the world and was in the top 10 for RE/MAX International for 15 years. In fact, for 6 years straight, no one listed or sold more homes in the Greater Toronto Area than Proctor did. (Source: TREB Statistics). No one in Canada has sold more homes than Proctor has, and by sharing the system he used to achieve his own success, he’s been able to help over 30,000 agents worldwide to transform their real estate jobs into highly lucrative real estate businesses that don’t come at the expense of high lifestyle costs. If you do not have a clear, detailed business system (key word, system) that you are using to move methodically to your goals…a plan you could show a banker or investor or new partner or key associate… a plan you have reasoned, complete confidence in, then why wouldn’t you examine Proctor’s Ultimate Real Estate Success System – for free? For a limited time, you can have a “sneak peek” at what your real estate business could look like by attending Proctor’s upcoming Free Discovery Day (see MoreMillionaireAgents. com for details). Yes, Craig Proctor will openly share with you how he became Canada’s top agent. Learn from a real doer, not a talker. Craig will share “real Canadian real estate strategies” with you that actually work. No theory, ideas or motivational hype. At this 3 hour meeting Craig Proctor will spill the beans and share with you exactly what to do and what it takes to be a Super-Successful Real Estate agent in Canada. For more information, visit: MoreMillionaireAgents.com

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Royal LePage is a leader in innovation, helping our REALTORS® excel with tools and services that maximize their earning potential.

Invested in your success.

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

Integrated with G Suite tools, royallepage.ca, rlpNetwork.com and ClientClick websites

All leads funneled into one place, regardless of source

Grow your business using our powerful CRM + Marketing automation tool.

Feature sheets, web tours, social posts and more, created automatically

Automated drip marketing nurtures repeat, referral and new business

Royal LePage is a leader in innovation, helping our REALTORS® excel with tools and services that maximize their earning potential.

Invested in your success.

Action plans automate your work for leads, buyers, sellers, and past clients

royallepage.ca/joinus

Integrated with G Suite tools, royallepage.ca, rlpNetwork.com and ClientClick websites

26 REM SEPTEMBER 2017

Working together in consumer protection By Joseph Richer

s the regulator responsible for administering the real estate laws in Ontario, I have the unique opportunity to see the many sides of the real estate sector. I believe the vast majority of registrants are dedicated to providing professional service to consumers. They are committed individuals who work hard to earn the trust of their buyers and sellers and do their best for them. However, there are some in the industry who intentionally break the rules and cause consumer harm. Based on 25 years in regulation, I believe that consumer protection is a shared commitment where

both the regulator and those being regulated each play a part in protecting consumers. It’s RECO’s role to hold registrants to professional standards, but it’s also imperative that the sector work diligently to weed out those who are unethical. Because of the nature of the real estate transaction, registrants are particularly well positioned to see how their fellow registrants conduct themselves. You interact with other registrants every day as you advocate on behalf of your clients while they advocate on behalf of theirs. (Contrast with doctors, engineers and architects whose day-to-day interactions are primarily with their own clients and patients, often behind closed doors.) Is it any wonder, then, that many of our complaints – 35 per cent, to be specific – come from

registrants? Many of these are about relatively minor breaches, but a good deal more address substantive issues that result in serious action. Of the 45 cases that went to a discipline hearing in 2016, almost half were initiated by a registrant. This is good. RECO’s role is to protect consumers by enforcing the law and taking disciplinary actions as needed, but we can’t monitor every real estate trade that takes place in the province and we can’t punish bad behaviour we don’t know about. Registrants who are passionate about maintaining high ethical standards in the industry are key sources of information for us – most importantly regarding serious breaches of REBBA and the Code. Let me share with you a few cases stemming from registrant complaints that resulted in significant disciplinary outcomes.

Turn your support staff into stars By Sue Styles

our administrative assistants want to be admired and appreciated for the work they do. When you (as their employer) make the effort to give praise for work well done, in turn, your support staff will seek out ways to increase and improve their performance for you. In my experience, working in real estate offices for over a decade, I can confirm that when you give appreciation for the jobs done, you raise the bar for maximum results in your office. Most real estate professionals have declared that hiring support staff was one of their best business decisions, enabling them to get to the next level. So how can amazing administrative staff add more

value to their role? I have 10 actions that will propel assistants from being ordinary to extraordinary. Pass this article along and reap the rewards! 1. Think for your boss. Anticipate what they need next and try to stay a step ahead of them. 2. Over-communicate rather than under-communicate. Do not leave room for doubt by remaining silent. Talk about what you are doing, ask questions, clarify instructions if you are not 100 per cent sure. This will pay off time and time again. 3. Care for the clients, take an interest, become involved. When you treat the clients like your own, you make the boss look good and that helps the boss attract more clients. Your job becomes more and more secure, and soon you are an invaluable part of the team who will be rewarded for the value that you bring. 4. Use the systems that help to run the business smoothly. Every

business needs systems and processes to support its standards. If you are just flying by the seat of your pants, outline the routines in a manual and streamline your work. 5. Question procedures. Don’t be afraid to question the systems you are using now. Look with fresh eyes; what worked in the past may not be on the cutting edge of what is happening now. 6. Keep the chit-chat down. No personal social media or long phone calls on company time and be careful about “water-cooler” chatting too! 7. Educate yourself. Take ownership of the business. (For example, when I heard my boss might want to go solo with his own brokerage, I found two courses about business plans and running one’s own business at the library and attended them just in case there was any value I could pass along to him). 8. Save the business money. Set a goal of reducing costs and monitor if you are successful. Perhaps there are fewer costs

• A registrant sets out to start his own business, one not related to real estate, and uses fraudulent documents to apply for a loan. His former brokerage finds out about the fraud and immediately reports him to RECO. With the evidence identified by the former brokerage, RECO takes swift action to investigate and revoke his registration. • A registrant complains to RECO that he has not been paid commission. While RECO does not generally get involved in commission disputes, there is indication here of a bigger problem so we conduct an inspection. This leads to an investigation and a prosecution of both the brokerage and the principal for failing to deposit sufficient funds into a trust account. Both parties surrender their registration, the brokerage is fined $250,000 and the principal is fined $20,000 and charged with different suppliers. Look into discounts on bulk items. By just paying attention to reducing costs, you are half way there. 9. Refocus your boss’s attention. Remind the boss of the strategy/vision for his or her company. Sometimes solopreneurs forget their motivation. Once in a while they might feel down or like a failure if they don’t get a listing or bring a deal together. It can be very hard to stay positive when you run your business alone. So, let them know they have a cheerleader in you and remind them of their goals and vision; hearing their ideas mirrored back can do a world of good. 10. Keep yourself positive. Stress causes a bad attitude. Learn not to keep the stress, but release it and love your life. Your attitude can affect the whole office; it’s easier to be a grump and join in with negative gossip, but it’s better to be a positive ray of sunshine. Sue Styles has been in the real estate industry for more than a decade. Her new book, The Little Red Stick What Gets Measured Gets Done reveals all the secrets of high producing agents. Email sue@maximizedresults.com; phone 403-805-7710. REM

ordered to pay $100,000 in restitution. • After investigating a complaint from a broker of record about one of their employees, RECO charges a salesperson with several offences, including providing false information or documents relating to a trade in real estate and accepting payment for a trade in real estate from a person other than his employer. The salesperson pleads guilty, is fined $7,500, receives suspended sentences and two years’ probation, and is also required to pay $13,700 in restitution. In these cases, as in many others, industry co-operation was critical in dealing effectively with unprofessional behaviour that resulted in harm to consumers. However, in contrast to the examples above, when CBC’s Marketplace ran an episode where registrants were caught on video flagrantly breaking the rules, very few people came forward to identify the individuals in the episode. For 20 years, industry leaders have worked together to enhance professionalism to benefit buyers and sellers, but more must be done. Brokers of record must set the tone. It’s their job to know what’s happening at their brokerage, and if they suspect or detect that someone is behaving unprofessionally, they must take action. Integrity cannot stop at one’s pocketbook. Local boards can assist by continuing to show leadership and encouraging professional behaviour among members. We look forward to working more closely with both brokers of record and local boards to continue to promote lawful, ethical and professional conduct. And finally, individual real estate professionals have a role to play as well: provide exemplary service to your buyers and sellers and demand the same from your colleagues. The cases outlined above show the importance of individuals who care about the reputation of their profession and that together, we can better address bad behaviour. Dealing with unethical registrants in the real estate industry is our collective responsibility, and when bad behaviour is identified and addressed, it’s better for everyone. Joseph Richer is registrar of the Real Estate Council of Ontario. REM

28 REM SEPTEMBER 2017

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Three Canadians have been named to Coldwell Banker Real Estate’s 2017 international list of top affiliated real estate professionals under the age of 30 who have achieved success in sales, philanthropy and leadership. They are Erik Erwin, Coldwell Banker Peter Benninger Realty in Kitchener, Ont.; Aimee Puthon, Coldwell Banker Neumann Realty in Guelph, Ont.; and Curtis Sernoskie, Coldwell Banker Northern Bestsellers, Yellowknife. Erwin is a 28-year-old, thirdgeneration Coldwell Banker Realtor. “As much as I am proud to put first-time homebuyers into a new humble abode, I believe that combatting the issue of homelessness is just as important,” says Erwin in his submission to the 30 Under 30 judges. “It’s our duty as Realtors to put a roof over everyone’s head, and not just those that are fortunate enough to (be able to afford one).” Puthon, 25, has earned the SRS and ABR accreditations and won the Coldwell Banker Ultimate Service Guarantee and Diamond Society, Smart Home awards in 2016. She supports New Home Animal Rescue as a weekly volunteer, is a board member at the Guelph Historical Society and volunteers with the Guelph General Hospital Foundation for the Tour de Guelph bicycle fundraiser. Sernoskie is the youngest agent in his market centre. He achieved CB Presidential Elite status in his first full year in town, selling more than 50 ends, and was the selling agent in just the second $1-million residential transaction in Yellowknife’s history. “I come from an extremely large family,” he wrote. “My father was born into a family of 18 chil-

dren and I have over 50 first cousins alone on my paternal side. Needless to say, I do not have trouble interacting with or being surrounded by many people.”

Walter Schneider honoured by Ontario Realtors Care Foundation Walter J. Schneider, president and co-founder of Re/Max Integra, has been recognized as a Fellow by the Ontario Realtors Care Foundation. “This is an extraordinary honour and a generous donation was made to the foundation in your name,” says Elizabeth Wale, president of the foundation, in a letter to Schneider. “You have now become a

member of the Fellowship circle of Realtors who commit themselves to improving the quality of life in Ontario communities,” she says. “This group supports growth that encourages economic vitality, working to provide the opportunity of home ownership, preserving our environment, protecting property owners and building communities.” Wale says last year, the foundation granted more than $1 million to shelter-related organizations across Ontario.

Canadians honoured at Florida Coldwell Banker event The owners of three Canadian Coldwell Banker Chairman’s Circle companies joined president Andy Puthon and other honorees recently at an event at Amelia Island, Fla. Coldwell Banker Westburn Realty, Burnaby, B.C.; Coldwell Banker Horizon Realty, Kelowna, B.C.; and Coldwell Banker R.M.R. Real Estate, based in Whitby, Ont., were among only 59 Coldwell Banker companies worldwide to achieve the elite distinction. REM

Enjoying an oceanside dinner event: Paul Prade, Coldwell Banker Westburn Realty, left; Ralph Roberto and Debbie Glover, Coldwell Banker RMR Real Estate, front centre; Al Kleinfelder, Coldwell Banker Horizon Realty, back centre; and Coldwell Banker Canada president Andy Puthon, right.

Erik Erwin

Aimee Puthon

Curtis Sernoskie

First-time attendee Ralph Roberto of Coldwell Banker RMR Real Estate, left, is recognized by CBRE president and CEO Charlie Young and COO Mike Walter J. Schneider Fischer.

RISE HIGHER THIS FALL A T T H E 2 0 1 7 R E A L T O R S® C O N F E R E N C E & E X P O N O V. 3 - 6 | M C C O R M I C K P L A C E – W E S T B U I L D I N G | C H I C A G O

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SKY’S LIMIT THE

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GET TO KNOW US There’s no one like us. With a fresh new look that nods respectfully to our impressive legacy, while equipping our top producing agents with the support of a modern consumer driven brand, we know that great brands evolve. Top Producers. Most Recommended. More Canadian REALTORS® than any other brand*. We’re everything you thought you knew, and more. What an exciting time to be with the brand that changed the real estate industry.

rem.ax/GetToKnowUs *Based on year-end 2016, RE/MAX LLC reported data.

32 REM SEPTEMBER 2017

Prospecting: The chicken or the egg? Did the number of cold calls you made result in a sale because you made the calls, or was there something else that made you successful?

By Ari Lahdekorpi

he ability to think ahead and plan for future consequences is one of our key attributes for survival. The linkage between cause and effect is engrained in our logic and thinking. While some would argue a Pavlovian response is not unique to humans, what is unique is the further linkage in logical thought required to create a cause that provides a desired effect. Cause and effect are seen in various forms. Sometimes they are embodied in ritual or superstition. Old folklore would offer suggestions on how to ward off evil spirits, or what to do to ensure the gender of an unborn child. Today we hear of famous athletes having certain rituals or carrying good luck charms in the hope of causing the effect of having a good game. Psychologically, believing in a causal relationship can be positive.

A perspective Continued from page 30

To solve this issue, we need to realize that the consumer complaints and the current public mistrust with our industry is not due to the practice of double ending but with the current multiple offer process, where often all parties leave the negotiations feeling dissatisfied whether there was double ending or not.

A paradigm shift Is there a change to the act that the government can introduce that will solve the problem 99 per cent of the time? (No law can ever solve everything 100 per cent). The answer is yes, but it requires a major paradigm shift as to the way multiple offers are handled. Currently with multiple offers, agents are not allowed to disclose the content of an offer with any other buyer. This rule is not in

Remember the story of the magic slippers that were given to the young ballerina for her nervous first performance…or the lucky sweater for the young hockey player? These were all associations tied together in the hopes of a successful outcome, without any real empirical evidence. Often an implied cause can create the momentum that leads to a positive effect. In the realm of sales, we have often heard about the need to “make the calls”. The notion is that the number of calls you make is related to your success. In real estate, as in any interactive business, this is true to a certain extent, but it is important to look at this a little deeper. Relating the cause to the effect is much more than just a simple numbers game. First, as a new agent in the business, or if you are new to a given geographical area, it is clearly important to make good use of your time and get your name out into the marketplace. It is equally important to make valu-

able interpersonal connections. However, the notion of simply getting on the phone and dialing for dollars from a phone directory or data list has some downside. You will be faced with a lot of rejection, which can be demoralizing and demotivating. Second, if your message is spoken to the wrong audience, it’s as good as not having been communicated at all. The negative result of the misplaced communication is that you’ve wasted your time, which is always translated into money. Understanding how you benefit from a given action is key to maximizing your time. When you are new to the business this is not as crucial as it is when you are active and are trying to juggle your current workload with prospecting for future business. Too often agents will be successful for a season, forget how they got to their success and subsequently discover a deep valley of no business behind the mountain peak they just experienced. You must do the research to figure out

what caused the success. The ultimate cause and effect dilemma is the question: “What came first, the chicken or the egg?” Did the number of cold calls you made result in a sale because you made the calls, or was there something else that made you successful? Causes can be distinguished into two basic types: necessary and sufficient. However, there is a third type of cause, which requires neither necessity nor sufficiency, but which contributes to the effect. This is “contributory cause”. An example is calling aluminium wiring a cause for a house burning down. However, it wasn’t just the type of wiring that caused the fire – there were other factors that, in combination, created the result. Consider this potential collection of events: the wiring was aluminium, which allowed for poor connectors that caused a short circuit. The walls had a proximity of flammable material, and there was an absence of firefighters or extinguishers. Within

place to protect a parties’ privacy because the buyer’s identity is confidential. This rule has been put in place to prevent an agent from “shopping” an offer around to other buyers and giving them an unfair advantage to beat that offer. But as we saw in the CBC’s video, that rule does not stop unscrupulous agents. My recommendation is simple. Mandate full transparency in multiple offers. For the same reason that double ending has not been a big problem where there is only one buyer and one seller (because there is full transparency as to all the terms being negotiated) wouldn’t it be ideal if all parties in a multiple offer scenario were afforded the same transparency? The government should mandate that all parties have full disclosure as to the current and best offer on the table. That includes the price and the terms (sometimes the terms are more impor-

tant to a seller than the price). The other buyers will then have an opportunity to beat that price, improve on their terms or leave the negotiating table knowing they had the same “fair and open” opportunity to compete for that property as anyone else. At

consumer rights. I strongly believe that a better solution is for the government to mandate full transparency in multiple offer scenarios. I am confident that consumers and agents alike (once they get over the shock of the paradigm shift) would not only welcome but

The government should mandate that all parties have full disclosure as to the current and best offer on the table. the end of the day the best offer wins. What is unfair about that? While passing a law to ban double ending may make for a great sound bite for the government, it will not solve the core issue and will only serve to hurt

cheer such a change. Is there a downside to this proposal? Yes. Some sellers (and agents) would argue that with full transparency some sellers would lose out on super eager buyers who were willing to pay “way, way”

this collection, the wiring itself is an insufficient cause related to the ultimate effect. So, when the number of doors that were knocked on, or the number of flyers dropped, or the number of cold calls made, is considered in creating a desired effect, you can’t stop there. There are many other factors that are contributory causes to a successful activity. For example, in making your calls, how strong is the database you are using? Do you have a good prospecting script for your calls? What time of day are you canvassing? Are you presentable during personal visits? In short, it is important to not simplify a cause and effect relationship. It is never that lucky suit or the rosary in your pocket that gives long-lasting success. It is wellplaced activity in a well-researched environment that is the key to long-term, career-building success. Ari Lahdekorpi is a managing broker with Re/Max Little Oak Realty in REM Burnaby, B.C. more than anyone else. My experience has shown, however, that often those eager buyers are not so eager to close on those transactions when they realize they overpaid and can’t get a mortgage because the home will not appraise. Even if they can get the financing they often feel like they have been taken advantage of, resulting in a disproportionate rate of complaints and litigation against their agent (whether the agent double ended the deal or not). I submit that for every agent and seller who thinks they can get more money from over-eager buyers under current rules, there are 10 sellers who would get more money under the transparent approach, resulting in more satisfied consumers and much lower odds of consumer complaints or litigation. Rui Alves FRI, CRES, CMR is a real estate broker with iPro Realty in Brampton, Ont. REM

34 REM SEPTEMBER 2017

How to build a real estate empire Five key elements to securing a strong foothold in the real estate market that every shareholder or broker/owner must take the time to conceive, plan, articulate and execute. By Penn Javdan

maller brokerages trying to establish a foothold in the Canadian real estate market face unique pressures from several directions. They must compete with larger, better established brokerages and face all the familiar terrors of a start-up business. But one thing that a new or developing brokerage has in its favour is the chance to create a fresh blueprint, with complete control of its own destiny and an opportunity to pursue uncharted possibilities. This is something that larger, more bureaucratic brokerages might not be able to offer. In the large brokerage context, rules, processes and expectations are largely entrenched. Innovation and risk are considered less than desirable. With a smaller brokerage just starting out, a strategic blueprint

serves not only as a roadmap, it also offsets some of the risks and challenges that come with the beginnings of any business. Make no mistake. A blueprint is more than just a mission statement or an outline of ideas. It is not a jumble of dreams. It is the codification of a discipline, the recognition of a diligent practice and the architecture of excellence. All to sew the seeds of a real estate empire. Here five key elements to securing a strong foothold in the real estate market that every shareholder or broker/owner must take the time to conceive, plan, articulate and execute. 1. Business structure: The bottom line of any successful business relationship consists of appreciating just that – relationships. In the real estate context, this means relationships between

Ricky Rathore

Wasim Ansari

Welcome, RE/MAX Empire Realty! Please join us in welcoming Ricky Rathore and Wasim Ansari of RE/MAX Empire Realty!

Ricky has 10-years of experience in real estate and law, and believes that being backed by the number one brand will be a “force to Ricky and Wasim made the decision to align be reckoned with”. Wasim has an extensive with the number one brand in real estate as resume, with over 20 years of banking they strongly believe it is the right step towards experience and working as a sales professional. achieving their goal of becoming the next flagship office. Combining the multi-talents of the two with RE/MAX world-class services, we have a recipe We are thrilled to have them and the entire for success! RE/MAX Empire Realty team on board. With a great focus on technology, training, Congratulations, Ricky and Wasim, on this development and consumer-centric strategies, decision and we can’t wait to help you grow! RE/MAX Empire Realty will provide dynamic solutions to its agents. RE/MAX Empire Realty is located at 8321 Kennedy Road in Markham, ON 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

all relevant stakeholders: brokers, sales reps, clients, support staff, legal and marketing staff, suppliers and even the media. Formulate the interaction between these stakeholders explicitly. How will decisions be made? How will they be effectively communicated to the workforce? Will there be an overarching marketing approach that the brokerage can guide agents to perform, or will it be a free for all, with each agent left to their own devices? Set the benchmark expectations early on, communicate them clearly and assign people responsible specifically to the role of ensuring this structure remains intact. How are changes to be considered, approved and implemented? Relate this to the daily operations, not just some abstract mission statement on a website. This includes a robust communications policy, both internal and external. Lack of transparency kills time and time kills all deals. 2. Client care: Everybody knows that real estate is a commission-based business. But few people know just how psychology motivates us. The best way to train your employees is not just to reward them handsomely, but train them to understand that their performance incentives are only as good as the extent to which they ingrain incentives in their clients or potential clients. One way to do this is to create a client care program. Formulate policies and procedures that facilitate the entrepreneurial spirit of each agent, but that also guides them in how to deliver superior customer service from both a transactional and a branding standpoint. 3. Quality control: If you can’t see down the line, you can’t see. There are good times and there are bad times. Having a robust quality control program in place helps to ensure people are doing their jobs to mitigate the risk of poor performance, but it is also helpful in crisis management

contexts. To prevent the flood, you must build a dam. 4. Market research: Leverage research that extends beyond the MLS. It is a tool, nothing more, nothing less. Understand your client and make sure your agents understand the market in which they are active or aim to be active. One way to do this is to acquire the right software or periodic training for agents to learn about just how powerful research can be. It’s all about foresight. 5. Human resources. Take this as seriously as you do your sales numbers. Often, both agents and owners of brokerages want the bottom line without being too interested in the deeply embedded elements that lead them there. They ask which deal or client will make them the most money, but they sometimes stop short of going deeper, understanding the people who work for them. Steve Jobs once said it doesn’t make sense to hire smart people and tell them what to do; we hire smart people so they can tell us what to do. Now, this doesn’t have to be taken too literally, but the point is to understand who is actually working for you. What is their psychology, their personality? Are they focused just on closing a deal, consequences be damned, or will they help build your brand and the strength of your company well into the future? Ask yourself who are they as human beings before asking yourself what they can do for you as employees. If you ask only about

numbers, you can bet you are going to have problems down the line. One way to deal with this is to create a mentor program between senior and junior agents. Mentors can not only train their more junior peers on how to perform from a sales standpoint, they can also show them what it’s taken to build the reputation they’ve acquired during a sustained effort over the years. This not only shows junior agents the ropes, it further ingrains in them the confidence, drive and culture of being a top salesperson. Finally, a word about empire. It is important not to get bogged down by the bureaucracy that can come from theories, no matter how grand they are. But it is equally important not to dismiss them as abstract fantasies. The idea of empire in this title has been used somewhat playfully, but one thing that stands out in this concept is to learn from the past. Model the successes of those who came before. These models can be sourced anywhere. In fact, learning how to build a business can sometimes be best understood from less direct sources. For instance, brokerages can (and should) learn about the successes of non-real estate businesses. The purpose is not merely to build a successful business. It’s not enough for a brokerage to plough through the competition. It must stand the test of time. Part of that involves building a legacy of quality that anyone can appreciate. REM

REM SEPTEMBER 2017 35

Dying to Give You Business The following is paid, promotional content. You probably didn’t know it, but people are dying to give you business. Literally, in droves. According to figures from Statistics Canada, an average of 16,300 Canadian homeowners die every month, resulting in an estimated 12,250 listings per month. As death rates rise, projected at about 5% for the next 20 years, more listings will follow. But that’s just the beginning. Many also have cottages, chalets, rental properties and businesses. Some may transfer to family members but a great many will be sold so assets can be divided. And what are the beneficiaries likely to do when they inherit tax-free lump sums? They’ll move to nicer homes, buy other recreational property and some will finally have the down payment for their first home. The business opportunities are endless.

How Do I Find This Business? You don’t. It finds you. It finds you through executors and Certified Executor Advisors (CEAs), if you’re visible to them. Executors have the vested moral and legal responsibilities to ensure successful estate settlement. Not only are they the decision makers in estate matters, they’re also highly influential with the beneficiaries. They’re who you need to engage. Certified Executor Advisors

(CEAs) are professionals from the seventeen professions executors may turn to in the course of their duties. They have broad practical knowledge in estate preparation and settlement, equipping them to engage with executors. They assist the executor in their area of expertise and refer to the sixteen other CEA professions, of which REALTORS® are a very important one.

How Big is This Market? According to estimates by STEP Canada and Statistics Canada data, the value of real estate transferring to the next generation over the next 20 years is $126 million…per day. It’s huge. Everyone talks about the baby boomers but the surge in births actually began in 1937 and those people all begin turning age 80 this year. It’s a massive wave of octogenarians entering the testator era. In fact, the Conference Board of Canada described it as a “Slowmotion demographic tsunami, about to hit Canada’s economy.” The timing for REALTORS® engaging with executors couldn’t be better. It’s unquestionably the opportunity of a lifetime.

What are Executors and Other CEAs Looking For in a REALTOR®? CEAs are taught, and will inform their clients, that estate sales situations are considerably different than regular transactions.

Clients will be looking for realtors with estate expertise. Executors and CEAs looking for realtors with estate experience will look for the CEA designation, as well as their professional profile on the National Find A CEA Directory. Referrals could come from across town or across the country, depending on where the executor or their advisors live.

How Could I Market as a REALTOR® CEA? The most important first step is to be recognizable as the professional realtor who understands estate situations and can help them. The CEA designation gives you that, right out of the gate. The National Find A CEA Directory can be searched by name, profession and geographical region, putting your professional profile available right across the country. The first executor seminar this author was involved in included a lawyer, financial advisor, realtor and funeral director. While “Estate Planning” may have solicited 20 30 attendees, “Estate Planning for Executors” resulted in 600! CEAs across Canada are looking for REALTORS® CEAs so they can recreate this incredible combination in their own communities.

Okay, Can You Tell Me a Little About the Program? The CEA designation program

is 30 hours, at your leisure and 100% online, so you work where and when you like. The purposebuilt learning platform is easy to use, fully searchable, and enables you to highlight and take notes right online. It’s 7 modules, written by industry experts, in plain English. The exam is 50 multiple choice questions, again, online for your convenience. To learn more, visit www.cicea.ca. The tuition is $1,495 plus tax but you can save $200 using the coupon code REM17 for a limited time when registering. The first annual membership fee is included in the tuition. Beginning this fall, local chapters are being formed for those who want to meet with the other sixteen CEA professions in their area to mingle, share tips and marketing ideas and trade referrals.

How Many Listings Might I Expect? Consider the figure we started with, disregarding all the recreational, rental and business property sales and all the homes beneficiaries will be purchasing. If we divide the number of home listings simply from estate sales (12,250) by say, 3% of realtors in Canada who may become CEAs, that works out to 3.75 listings per agent per month, again, rising by an estimated 5% per year for the next 20 years. Remember, people are dying to give you business! Mark O’Farrell, BA | CLU | CHFC | TEP | CEA is president of the Canadian Institute of Certified Executor Advisors. He can be reached at mofarrell@cicea.ca

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The Canadian Institute of Certified Executor Advisors (CICEA) provides the CEA designation program to the seventeen professions executors may turn to in the course of their duties. The CEA program is 100% online, using a purpose-built education platform for the optimal online learning experience. The program includes numerous charts, graphs and images to help convey the information, with an alphabetized glossary for quick reference of over a thousand technical terms and acronyms. In addition, the program has full highlighting, online note-taking and program search functionality.

36 REM SEPTEMBER 2017

Good Works T

he Bradford (Ont.) Children’s Charity Fund Annual Golf Tournament raises funds for local kids in the community. This year’s event was for sisters April and Emily Hollander, who were born with multi-minicore myopathy, an inherited muscle disorder that makes everyday mobility a challenge. This year’s event raised $23,232 thanks to the support and generosity of local businesses and the community. Each ticket included a lunch, which was sponsored by Paul Hawkins, a sales rep with Century 21 Heritage Group in Bradford. The tournament was founded in 2011 by Century 21 Heritage sales rep Luis Moniz and co-ordinated by sales rep Carlos Silva. It is held each year with the help of many volunteers. ■ ■ ■

It was a heart-pumping, trafficstopping ride when Sutton Group West Coast Realty’s 29-person Sutton Lister team, which included 10 salespeople, two conveyancers, friends and family, hopped on a Big Bike and rode through downtown Victoria to raise funds and awareness for the Heart and Stroke Foundation of Canada. One of the organizers, Jenny Lu, says they raised $1,178 for the charity and had an incredible time. Lu says she “finagled” fellow salespeople Paul McDonald and Christine Simcoe as co-organizers. ■ ■ ■

Royal LePage Wolle Realty in Kitchener, Ont. raised $20,000 for the Royal LePage Shelter Foundation at its first annual fundraising train ride recently. The event featured a ride aboard the Waterloo Central

The Marco and Rob Real Estate Team, Marco DiPietrantonio and Rob Colangeli of Re/Max Finest Realty in Kingston, Ont., recently presented the proceeds from their sixth annual golf tournament to the Boys and Girls Club of Kingston. The event raised $16,525, their largest donation to date.

Railway, where 175 guests were treated to spectacular countryside views in open air cars. A cocktail reception and concert at the St. Jacobs Train Museum followed, with the band King Roller providing the entertainment. The funds raised benefit Women’s Crisis Services of Waterloo Region and Woolwich Community Services. “Without our supporters and volunteers this event would not have been possible,” says broker/owner Mark Wolle. Royal LePage Wolle Realty On The Rails committee members included: Wolle, Kate Robinson, Kourtney Beckman, Mat Wojtas, Neil Strickler, Nancy Hynes, Elaine Barton, Jane Gardner, Michelle Jackson, Lisa Schultheiss, Madison Erb, Dave Farnham and Mike Hewitson. ■ ■ ■

For the past 14 summers, avid golfers and the real estate community in Barrie, Ont. have looked forward to the tournament hosted by Sutton Group Incentive Realty. Recently broker of record Bill Kindou and his wife and office administrator Michelle hosted 65 players at the Innisbrook golf course. The event raised more than $1,000

From left: Katherine Milian, manager at Century 21 Heritage Group in Bradford, presents the cheque to the Hollander family with sales reps Carlos Silva and Luis Moniz.

Sutton Group - West Coast Realty’s Victoria Big Bike participants, from left: Paul McDonald, Tess Baechler, Danielle Moreau, Tammy Crack, Christine Simcoe, Daniel Stapleton, Rauvi Pallan, Rajesh Chicher, Keith Fair, Dean Bayles, Blake Moreau and Jenny Lu.

for a local shelter, which provides confidential, emergency services to women and their children. Audi offered a spectacular hole-in-one prize: a free one-year lease on one of their top models. Sadly, there was no winner. Since 2003, Kindou and his team have organized numerous golf tournaments, barbecues and other charitable events, raising more than $50,000 for the cancer care centre at Barrie’s Royal Victoria Hospital and other charities. ■ ■ ■

More than $26,500 was raised for the Royal LePage Shelter Foundation at the 5th Annual Royal LePage Premier Real Estate Charity Golf Classic in St. Albert, Alta. recently. Despite a torrential downpour and hail, 132 guests enjoyed a day of golf that featured a variety of unique and lighthearted on-course activities and games. “The weather this year was terrible, but we still managed to have our most successful tournament to date,” says broker/owner Shirley Williams. The funds raised will benefit the Stop Abuse in Families Society, an organization that

The Royal LePage Wolle Realty On The Rails fundraising ride raised $20,000.

From left: Cristina Patrascu, Armando Mazzocca, Jens Foxford, Allan Font (COO of Edmonton Real Estate Board), Matthew Gillam, Alicia Centis, Joanne Centis, David Centis, Shirley Williams (broker/owner, Royal LePage Premier Real Estate), Amanda Kostiuk, Adrian Simms, Amy Berg and Kristin Pierce.

serves clients who are experiencing abuse and the devastating effects to the family. ■ ■ ■

Dave Harback of Sutton Premier Real Estate in Edmonton says his annual Tabs for Wheelchairs campaign collected 2.5 times as many tabs as last year. Along with Mike Brennan of The Mortgage Group, Harback gathered 213,000 pop can tabs weighing 140.2 pounds. The tabs will be donated to the Holy Cross School in Winnipeg to fund specialized wheelchairs for children with disabilities. “I had one person give me over 20 pounds of tabs that she had collected over the years,” says Harback, now in his fourth year of collecting. “Thanks to people like her, we more than doubled the 53.8 pounds we collected in 2016.” Since 2000, the Holy Cross School has purchased 17 specialized wheelchairs, which are not funded by the Manitoba government. The school collects tabs rather than the entire can to reduce storage space and because there are refund programs in place for the cans. Recycling aluminum pays close to 60 cents per pound. REM

Sadly, no one won a free one-year lease with a hole-in-one at the Sutton Group - Incentive Realty tournament.

Dave Harback

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38 REM SEPTEMBER 2017

If it says it’s binding, is it binding? By Natalka Falcomer

version of this (true) story has happened to every real estate veteran. You’ve spent years chasing a client (a landlord) and another year negotiating the offer to lease. The lease is now in the hands of the lawyers and your hard work is finally about to pay off … if the deal doesn’t die. Since lawyers have a reputation for being “deal killers”, you make sure that the parties have agreed to all material terms in the offer. For greater certainty, you further added a clause stating that: a. the offer is binding; b. the landlord and tenant

have 20 days to use their best efforts to execute the lease; and c. the final standard form lease is subject only to “minor non-financial amendments as may reasonably be requested by the tenant, which are acceptable to both parties...” You hand over the standard form lease to the lawyers assuming that the deal is bullet proof. But then… The tenant (okay, the tenant’s lawyer) is unhappy with the standard form lease and makes 106 edits to the lease. You’re not overly concerned because most of the edits are minor and don’t affect the material terms of the binding offer you negotiated. Over a few months of back and forth, you’re relieved to find out that the landlord finally accepts 74 – that’s two-thirds – of the edits. You’re sure the deal will close. After all, you have a binding offer and the parties have already agreed to the

“important stuff” during the offer stage. However, despite all of this, the tenant refuses to sign the edited lease and walks away from the deal. Can your client – the landlord – save this deal by suing the tenant for breach of the binding offer to lease?

the landlord (and your commission) is in trouble. In other words, even though the offer is binding and that material terms were discussed, if new material issues pop up, the landlord cannot insist that the tenant sign the lease and the landlord can-

Can your client – the landlord – save this deal by suing the tenant for breach of the binding offer to lease? The court would agree that the tenant is in breach of the offer if the remaining 32 edits were minor and immaterial issues and if all the material matters had been decided. However, if the 32 edits, or some portion thereof, touched upon substantive issues (material terms) then

not sue for breach of contract. To get a deal over the goal post, ensure you’ve negotiated all material terms in the offer stage. To understand what is material, investigate the nature of the tenant’s business, as well as the landlord’s intentions with the property. Even if you’re act-

ing for the landlord, insist that all parties review the standard lease during the offer negotiations. Taking these steps protects you from any surprise material issues popping up and ruining your supposed binding offer. While this sounds like a lot of work, it’ll certainly be worth it when you hand over the offer to the lawyers knowing that it’s “lawyer proof”. Natalka Falcomer is a lawyer, real estate sales agent and Certified Leasing Officer who has a passion to make the law accessible and affordable. She founded, hosts and coproduces a popular legal call-in show on Rogers TV, Toronto Speaks Legal Advice. She founded Groundworks, the only firm specializing in commercial real estate law that offers flat fee rates, online delivery of legal work and a guaranteed turnaround time. www.groundworksfirm.com REM

Assignments offer opportunities By Al Maitland n condominium market terms, an assignment is an advance option or a right to purchase a condo unit when it eventually comes onstream. Assignments are sold by the builder to an interested buyer during the construction period or at another point before the condo can be officially registered, land ownership can be legally transferred and the sale closed. An assignment gives the buyer dibs on the unit (for a price), ahead of the time when it can be officially purchased – often about three or four years in advance.

Transactions of buying and selling pre-sale assignments are neither regulated nor recorded on MLS. They’re usually found on specialty websites or classified sites with dedicated real estate sections – like Kijiji. During the last few years, assignment sales (and assignment resales) have been growing due to a lack of available resale condos in major Canadian cities (especially Vancouver and Toronto). In some cases, assignment resales are driven by changing personal circumstances for the original purchaser, who may no longer be able to close the sale. This can happen for a variety of reasons, such as changes in family size or financial situation. In other cases, it’s purely a profit opportunity, if the market value of the unit has risen to a significant premium compared to the assignment price. A lot can

happen in three to four years. I had a look through our Kijiji real estate data to see how assignments are performing on our site. There are hundreds of listings in both the Condos and Houses for Sale categories labelled as “assignment sales.” In the Greater Toronto Area Condos for Sale category, “assignment” is the second most searched term. In Vancouver, it’s not quite as hot a search term, but still up there at #14. Other Canadian metropolitan areas are also seeing growth for this query. What’s more, a combination of both domestic and foreignbased buyers is active in the assignment market. Kijiji data finds page views originating outside of Canada for condos and homes for sale have increased more than 25 per cent over the past year, from countries including France, the U.K., India, the

Philippines, Australia, Brazil, South Korea and Japan. Investors or those planning a move to Canada are looking for “ground-floor” opportunities to lock up condo units. For domestic buyers, having access to information and purchase opportunities on new build projects is particularly important for the vibrancy and livability of communities, as it gives greater insight into the projected socioeconomic demographics that can help shape and impact future neighbourhoods. Assignment buying can also help make some of the hottest markets more affordable, given that prices tend to rise the closer units get to the official purchase transaction stage. The growth in assignment sales offers significant opportunities for agents in the condo market. Risk is relatively low

and the potential for savings from getting in early – and/or profit potential through resale – can be sizeable. We can expect to see the condo assignment market continue to grow over the next few years, despite the reported downturn in the Canadian housing market overall. For first-time home buyers, the thought of purchasing an affordable, centrally located home in one of Canada’s metropolises can seem out of reach – a solution that assignment sales bring to the table. To find out what’s available, visit sites like Kijiji that show listing outside the traditional housing buy/sell avenues – you may be pleasantly surprised at what options exist. Al Maitland is head of display, jobs and real estate at kijiji.ca REM

REM SEPTEMBER 2017 39

Navigating the Big Chill: transparency, consumer smarts and the reinvention of Ontario real estate The following is paid, promotional content. In the four short month’s since fresh provincial legislation changed the game, Ontario’s real estate market has cooled off but good. Prices are flat if not down and sales volumes look like throwbacks to 2010. Sobering, no? The easy analysis runs like this: foreign buyers sidelined (mostly), the ‘hot money’ is looking elsewhere, and it’s all of a sudden a buyers’ market. Not so fast. The real estate marketplace is far more complex than just a few simple variables would have you believe: the market’s a real shapeshifter—the influences on the nexus of price, cost and value are as much cultural (‘I have to be downtown’, ‘Hamilton’s where it’s at for families’) as they are pegged to basis points. Then there’s the sheer weight of data available to sellers and buyers alike, even if, by world standards, Canadian RE stats are pretty two-dimensional: folks know what they’re looking for and they know more than ever before about what they’re looking for. Consumers have never been more aware, more connected, more sure of themselves. The old ‘value proposition’ for REALTORS® simply won’t cut it any longer. If you’re not providing professional-grade service and even better—‘over the

top’ attention to and anticipation of customer needs/wants— you’re in trouble as a REALTOR®. What this means is that digital transformation—the gradual but insistent ‘app-ing’ of the real estate market in the context of the already digitally disrupted financial services sector—is only half the equation. The other half is the human factor, what the human relationships around real estate transactions really mean. At Certified Resale Home, we’ve been designing our service around precisely these human factors: anxiety, a desire to minimize risk and to understand, in a personally comforting way, just what the heck is happening to my family, my money and my financial future in buying a home. And we’ve been designing and refining the CRH warranty

for four years. We know the thing works. How? We know that folks who’ve made claims are happy (very happy), REALTORS® who’ve used CRH love the brand differentiation in an increasingly competitive listings market, and, most of all, those REALTORS®—the VIP ladies and gentlemen who are in the market because they love service as their way of life—who want to see their profession thrive in the brave new world of digital real estate know CRH is one clear

signal to everybody in the deal that the deal’s a clean sheet. In a word: transparency. CRH’s Key Points series of webisode interviews and podcasts with the REALTORS® dedicated to their profession isn’t just a great watch, sharing business intelligence from some of the savviest REALTORS® around. It’s proof positive the future of real estate is in really good hands. CRH’s early adopters—male, female, under 40 or over 55, in Barrie or Oshawa or KW or Burlington or Niagara Falls (you know who you are)—all have

one trait in common: they’re acting, each and every one of them, on the belief that real estate can be done differently—and that, on their watch, real estate is being done differently. CRH: it’s one sure way to navigate the Big Chill.

About FCT Founded in 1991, the FCT group of companies is based in Oakville, Ontario, and has over 800 employees across the country. The group provides industry-leading title insurance, default solutions and other real estate-related products and services to approximately 1,250 lenders, 43,000 legal professionals and 5,000 recovery professionals, as well as real estate agents, mortgage brokers and builders, nationwide. The Great Place to Work® Institute has named FCT one of Canada’s Top 50 Best Workplaces for two consecutive years (2015, 2016) and certified FCT as a Great Place to Work. FCT’s parent company, First American Financial Corporation, was named by Fortune® magazine as one of the 100 best companies to work for in America in 2016. For more information on FCT, please visit the company website at www.fct.ca.

† The FCT group of companies includes FCT Insurance Company Ltd., which provides title and valuation insurance with the exception of commercial policies, which are provided jointly by FCT Insurance Company Ltd. and First American Title Insurance Company. Services by First Canadian Title Company Limited.

40 REM SEPTEMBER 2017

FSBO part 3: Walk throughs and walk aways By Debbie Hanlon

h, the dreaded cold call. Dialling a phone number to speak to someone you’ve never spoken to before doesn’t rank very high on most salespeople’s list of favourite things to do. I dare say it doesn’t rank high on anyone’s list, but it’s something you really must master if you want to convert those FSBOs into listings. The good news is, it isn’t nearly as difficult, or uncomfortable, or intimidating as you might think it is because, like most other things in life, your chances of success increase in direct proportion to how prepared you are. Let’s look at some of the tips

and techniques I use for calling a for sale by owner prospect. I talk with many FSBOs – almost everyone who is listed in my marketplace will get a call from me and I’m continually amazed by how many of the FSBOs tell me I’m the only salesperson who called them. They say they get many emails but no one picks up the phone to call. Isn’t that odd? We are in the real estate business but most of us don’t want to actually talk to the client. Consistency. All this means is that you pick a day and time to make your calls, let’s say Thursday afternoon, 2 to 4 pm. One day a week is sufficient, but you must commit yourself to sit down for that time and make those calls. Once you get into the habit of doing this, Thursday afternoon will turn into FSBO time in no time. Consistency is key for improving your pitch and

“This app is perfect for those who want and expect the very best of everything! It’s Free and it’s Fabulous!!” —Steve Morris, Founder

improving your success rate. This time must be 100 per cent dedicated to the task of contacting FSBOs and nothing else. Confidence. This is without doubt the most important thing to work on. No one will hand over the sale of their home to anyone who does not sound like they’re ready, willing and able to sell it. How do you convey confidence? Be prepared, simple as that. Start by looking on MLS and checking out the neighbourhood where the FSBO lives. Find out if their house was ever listed and for how much. Find out what else has been selling in the area. Do a quick CMA on their home before you phone. That way you’re coming at them showing you’ve done your research and are genuinely interested in their property. Remember they’ll be getting tons of emails from other salespeople, but very few phone calls and even fewer calls from someone who sounds knowledgeable and prepared. You’ll be looking good before they ever see you. Relationship. You’re starting a relationship with the FSBO, so your first call is not the end, it’s the beginning, and it’s just the first step in what will hopefully become a mutually beneficial relationship. How do you start a relationship? Normally you talk about things you have in common. After you’ve introduced yourself as a salesperson with your firm, ask them how things are going. Have they had any showings? Have they heard from other salespeople? Make it about them; give them things to talk back with. That can be as simple as a shared event, like the weather, (“You lived through the storm I see?”), (“What did you think of that thunder last night?). Small talk. The same way you’d talk to someone you met anywhere else. In this wonderful social media world we live in, it’s ever so easy to get to know people long before you meet them. You

can stalk them on Facebook and find out all kinds of neat things, but not to the point where they get a restraining order against you. That would be just plain weird! Walk through. This is the aim of that first call. You ask if you can walk through their home. You want to do that because you like to keep a list of homes that are on the market in your area. That makes you sound

offer FSBOs so you can get notified of all the new FSBOs. Next week, set up a day and time to call those numbers, commit to that time, schedule it in and stick to it. Research the neighbourhood so you have a clear idea of what the home is worth, do your quick CMA, call them. Ask them how things are going. Ask them about showings and other salespeople. Ask them if you can walk through their

Most people will be happy to let you in. It’s not costing them anything and they’re getting a free consultation with a pro. professional and cutting edge. Most people will be happy to let you in. It’s not costing them anything and they’re getting a free consultation with a pro. Once you set up a time for the walk through, show up prepared and take the next step in your relationship. While you are starting to build that ever so critical relationship, let’s not forget the main goal here is to get the listing, so always be ready to sign it up right then and there. Yes, it can happen. It happened to me just last week. I went in to do a walk through and left 45 minutes later with another lovely new listing! No-No’s. Never tell them you have a buyer just to get their business. This ultimately makes you look bad and desperate if you don’t have one. If they tell you they have a family member or good friend in the industry, let them go. Concentrate on those without any ties. This week I want you to take pictures of all the FSBO signs you see in your travels. Set yourself up on any classified sites that

home. If you don’t take those steps, you won’t end up smiling on the bank steps. What we’ll look at next is how you can continue to build and foster the relationships your phone calls began. To have success with FSBOs you need a wicked stay-in-touch program. Mine works really well, and in my next article I will share my program with you. Developing relationships is fun and actually very easy; it leads to a high conversion rate and referrals. Do you want the business or not? It’s your call. Debbie Hanlon is a real estate broker who has helped train hundreds of sales reps and brokered and managed a national real estate franchise. She also founded an independent real estate firm. Currently she coaches sales reps all over the world. She is the CEO of All Knight Inc, a global educational mobile company, as well as a published children’s author and the creator of the national I’m No Bully Show. www.facebook.com/missdebbieandfriends REM

This year, CCIM Institute celebrates its 50th Anniversary with a marquee event in Toronto featuring the worldâ&#x20AC;&#x2122;s premier real estate executives and companies.

Featured Speakers

Keynote Address Steve Forbes Forbes Media

The Upside of Global Upheaval Kenneth Gronbach KGC Direct LLC

Mark Rose Avison Young

Lindsay Baker Comfy

Susie Algard OfficeSpace.com

Jay Olshonsky NAI Global

Mike Reagan RE/MAX Commercial

Jeremy Wedgbury First National

Brian Stoffers CBRE

Naveen Jaggi JLL

Poonam Mathis StealthForce

More speakers to be announced

To register and see the full agenda

visit conference.ccim.com or call +1 (312) 321-4460 THANKS TO OUR SPONSORS:

42 REM SEPTEMBER 2017

O P I N I O N

This is what causes housing shortages Ontario’s recent “Rent Fairness Act” continues the brutal, gratuitous, dystopian, anti-landlord legislation meted out by short-sighted, vote-pandering politicians.

enants may think the government is looking out for tenant interests, but if that was true there would be no pandemic housing shortage, multiple offers, outrageous selling prices, extremely low vacancy rates, high rental tenant property taxes and eight-year affordable housing wait lists. Ontario’s recent “Rent Fairness Act” continues the brutal, gratuitous, dystopian, antilandlord legislation meted out by short-sighted, vote-pandering politicians who have literally (not metaphorically) persecuted landlords for decades; all of it resulting in the national pandemic critical housing shortage. Examples: • Of 46 offenses in the Residential Tenancies Act (RTA), 34 solely benefit tenants, 10 reciprocate with landlords, one benefits the landlord and one prevents landlords from kicking vote-canvassing politicians off their property. • RTA and the Human Rights Code (HRC) have unintended discriminatory consequences, including: 1. The broken Landlord and Tenant Board (LTB) and RTA make all people with no credit,

AVI ROSEN Real Estate Broker (Nearly 50 Years) • Paralegal Direct: (416) 818-6130 • www.rosen.ca Legal Focus on the Real Estate Industry

Ontario versus $67.89/kWhr in Quebec. Government then punished landlords by preventing landlords from passing on utility costs to the actual consumers (tenants) of that energy. • The LTB won’t evict tenants who sign and then breach a no-smoking clause in their rental agreement. The whole health industry pushed for this change

property income for three years. The 270,000 Ontario social housing units have a $1.2 billion capital shortfall. Toronto faces $2.6billion in building repairs and will close 400 homes in 2017 and 1,000 by 2018. • Some municipalities charge tenants up to 2.5 times the property tax rate of condo and singlefamily homeowners.

and the provincial government still denied it. Eleven per cent of Canadians smoke daily and 64 per cent don’t smoke. • The HRC denies requests to teach landlords about landlord responsibilities but hosts free fullday seminars for tenants. • The RTA and municipal bylaws require landlords to remediate mould caused by a tenant’s actions, even though it’s not caused by the building’s envelope. • The rent of a tenant switching from a single bulk meter to an individual meter must be reduced by the cost of energy consumed over the previous 12 months. Therefore, the most energy-abusive tenants receive the greatest rent decreases while energy-conscious tenants are penalized. • The RTA sets the practical limit on building repairs and maintenance: three per cent of

• Rent control doesn’t benefit low-income tenants. Tenants who can afford to pay market rents receive the benefit of lower rents and successfully beat low-income tenants competing for tenancies in the government-created housing shortage. Shrinking housing inventory forces buyers to stay in rental housing longer. There are 171,360 Ontario families waiting for affordable housing (2015), some for as long as eight years. • The federal budget gave a $209.4-million bailout for social housing repairs but nothing to the private sector faced with the same issues. • A tenant’s unpaid utility bill is added to the property owner’s property tax bill, even if the landlord proves that their tenant signed an agreement to pay their own utilities. This is like holding police responsible for all the

PHOTO: Stuart Miles at FreeDigitalPhotos.net

By Chris Seepe

work or rental history (single moms, foreign students and refugees) extremely high-risk tenants for landlords. 2. Hoarders’ rights override the rights of all other tenants. Vermin, fire hazards and more ruin the lifestyle of neighbours and significantly negatively impact property value. Firefighters can refuse to enter a burning unit if they cannot turn 360 degrees with full respirator gear on. Landlords must accommodate challenged tenants to the point of a landlord’s undue hardship, which is not defined in legislation. 3. The tenant qualification process of public agencies is not aligned with the needs of the landlord. • Landlords submit 91 per cent of LTB applications. Seventy-five per cent are for tenants not paying their rent. The average LTB eviction is five months (versus 25 days in some other provinces), costing an average $5,200 that is rarely collected. LTB offers free, taxpayer-funded duty counsel service to tenants but offers nothing to landlords. • A tenant can pay the sheriff full rent arrears on the day of their eviction and start the whole process again. • Ontario spent billions on solar power programs. Result: average $217.33/kWhr in

crimes committed by the criminals they didn’t catch. • Municipal bedbug and garbage bylaws hold landlords responsible for cost of cleanup even if the tenant caused the infestation or doesn’t sort their garbage. • Housing shortages lead some tenants to illegally rent out a rental unit or portion at a higher rent. • The LTB won’t hear cases where tenants who damaged a property moved out. Small Claims Court won’t hear any case involving a landlord-tenant dispute. Society can’t exist without housing. Private sector landlords built homes for more than nine million Canadians, and relatively affordable housing to a subset of more than three million. Canada’s total social housing sector accommodates about 1.5 million Canadians. Private sector landlords willingly accept extraordinary financial and legal risks to provide safe and healthy housing. Landlords are not social workers, financiers or otherwise an extension of government social housing programs, policies and other political agendas. About 39,000 rental units were built in 1972 alone versus a net of about 22,500 units in the 25 years following. Look at the success of the housing programs of the 1960s and early 1970s and replicate that success. Footnote: an anagram of “LandlordTenantBoard” is “Abandon Rent, Add Troll”. Chris Seepe is a published writer and author, “landlording” course instructor, president of the Landlords Association of Durham and a commercial real estate broker of record at Aztech Realty in Toronto, specializing in income-generating and multi-residential investment properties. (416) 525-1558 Email cseepe@aztechrealty.com; website: www.aztechrealty.com. REM

REM SEPTEMBER 2017 43

The following is paid, promotional content. Ever hear the comment that the “appraiser killed the deal”? Then you better read this! Real estate appraisers work with their clients to determine an opinion of market value of a property to finance or refinance their clients’ mortgage. This value is a critical piece of information and there is a lot at stake in its accuracy — for the REALTOR®, the lender and the home owner! Obtaining a reliable appraisal that is unbiased, independent and based on comprehensive research and analysis is key to the success of this transaction. There is an overall misunderstanding about how an appraiser arrives at a market value, sometimes leading to a misconception that “the appraiser killed the deal”. This article will debunk these myths and provide additional insight and perspective from a designated appraiser’s point of view. Myth #1: The purchase price of the property is the same as the appraised market value. Reality: The appraised market value may not be the same as the selling price of the home- it may be higher, it may be lower. Individual real estate markets can be volatile and are impacted by the economic conditions of the market. For example, in a “sellers’ market”, or when there are multiple offers on a home, an inflated selling price above the appraised market value can result. “Bidding wars” may skew the

true market value of the home, when similar substitute properties are not available in the market. A multiple-offer scenario may be good for the seller, the real estate agent and the mortgage broker in the short term, but in the longterm, the purchaser may face challenges when selling the property in less active market conditions. Having an opinion of value that is obtained through comprehensive research of the market over time provides the property owner and lender with a realistic value. An appraised value helps to ensure that all concerned – sellers, buyers and lenders – make informed decisions. Consumers and lenders should be wary of selling prices that are inflated – either through multiple offers or other local market factors. Myth #2: Appraisers only consider past market/sales data when determining the value of a property. Reality: To provide a reliable market value, AIC-designated appraisers consider a number of factors as such as: • Sales of the subject property within the last three years; • Past sales of comparable properties to the subject property; • Comparable properties that are currently for sale; and • Current market conditions. Adjustments are made based on the analysis of the comparable properties which rely on marketderived elements of comparison including property size and other factors. One of the key requirements under Canadian Uniform Standards of Professional

SHUTTERSTOCK

Myths and Realities of the Residential Appraisal Report

Appraisal Practice (CUSPAP) is for the appraiser to conduct a three-year sales history and a oneyear listing history search and analysis of the subject property. This data considers private sales (non MLS) transactions as well as those on MLS. Other data sources, such as title and property registries, are also reviewed to ensure the most comprehensive and reliable market value is obtained. For more detailed information about the various methodologies used in real estate appraisals, please view AIC’s Industry Guide to Understanding the Fundamentals of Real Estate Appraisal. Myth #3: The appraiser is

influenced by the client’s need for a specific value. Reality: An AIC-designated appraiser has a professional and ethical responsibility to provide an independent and unbiased opinion of the value of a property. Their work will produce an estimate of market value being the most probable price level – irrespective of the selling price or a desire to “meet” a certain value. All AIC members must comply with AIC’s CUSPAP, a Code of Conduct and Regulations. As professionals, AIC members are obligated to prepare their work in compliance with these standards. Myth #4: When a homeowner is completing renovations

they can expect that the value of their home will rise proportionately to the investment. Reality: The return on investment depends on the added value of the renovations, the quality of the renovations, and the neighbourhood’s market conditions. Unique designs or improvements that are uncommon for a particular market may even adversely impact the selling price of a home; therefore, the full return on the investment will likely not be obtained. Obtaining an expert opinion of value from an appraiser will provide an objective perspective on the marketability of the property.

The Appraisal Institute of Canada (AIC) is a leading real property valuation association with over 5,400 members across Canada. Established in 1938, the AIC works collaboratively with its 10 provincial affiliated associations to grant the distinguished Accredited Appraiser Canadian Institute (AACI) and Canadian Residential Appraiser (CRA) designations. AIC Designated Members are highly qualified, respected professionals who undertake comprehensive curriculum, experience and examination requirements. Our members provide unbiased appraisal, appraisal review, consulting, reserve fund studies and machinery and equipment valuation.

44 REM SEPTEMBER 2017

Ski racer turned developer draws Canadians to Mexico By Connie Adair

any agents focus on helping their clients purchase primary homes, but that means they’re missing out on a big segment of buyers – people looking for second, third or retirement residences, says Cary Mullen, a twotime Canadian Olympian, World Cup ski champion and founder of Vivo Resorts in Puerto Escondido. Ninety-eight per cent of buyers in Mullen’s Mexican, Pacific-side resort community bought without the help of a Realtor. That was a great opportunity missed, especially for Canadian real estate agents, says the Calgary-based developer, because 75 per cent of the people who have purchased at Vivo are Canadians. However, it’s not too late for agents to benefit.

Cary Mullen

The resort includes an infinity pool with a swim-up bar, a bistro, a general store and a family pool with a waterfall.

Seventy-five per cent of the people who have purchased at Vivo are Canadians.

Mullen’s company says Mexico trumps Victoria as a retirement destination of choice for Canadians, so it’s worth mentioning the destination to clients. People are flocking to Mexico for many reasons, cost being one. Victoria Real Estate Board figures show the average price of residential waterfront property in early 2017 was $793,725 Canadian, compared to US$373,000 for the average beachfront home at Vivo Resorts. The resort also offers important creature comforts that Mullen wanted in a vacation spot for himself, his family and his retired par-

ents. He made up a checklist of 44 factors to consider, then traveled to more than 30 places worldwide to walk the beaches and score the locations. His research took two years. Puerto Escondido came out first, he says. “We loved it. I said we’d get a place for us.” However, being a developer known for his ability to hone in on emerging markets, he knew the area would present an opportunity to others. The resort caters to two demographics: baby zoomers (“Boomers who still have gas in the tank”) and “generation Mex” (affluent buyers who are in the market for second or third properties).

Puerto Escondido appealed to him because of the weather. The air temperature is 28 to 30 C every day year-round. That makes it perfect for vacationers who don’t want one day wasted due to bad weather, and for people who want to be able to rent their properties when they’re not using them, regardless of the time of year. The water temperature is in the 80s F, warmer than in Hawaii or the Caribbean, Mullen says. And the beach has gentle ocean breezes. “Some (other) places are too windy and you get sand in your eyes.” There’s also little rain and hurricanes are not as much of a worry as some other resort locations. Puerto Escondido has had only a few hurricanes in the last century, he says. Mullen, although not a surfer, was also drawn by the youthful, international and energetic vibe to the surfing town. When complete, the community will include 114 homes and 400 condominiums. The resort occupies 75 acres of beachfront on the southern tip of the Emerald Coast of Oaxaca. There are ocean views from every suite.

Most buyers didn’t use a real estate agent, a missed opportunity for Canadian salespeople, says Mullen. The resort includes an infinity pool with a swim-up bar, a bistro, a general store and a family pool with a waterfall. In December, a new clubhouse will open. It will offer everything from a fitness facility to a kids’ club to a multi-sport facility to event space. The gated community has a three-stage water purification system that provides the same standards as municipal water in North America, Mullen says. It’s also close to the Puerto Escondido airport and urban amenities, including a hospital. When they’re not using their

resort property, a professional rental program brings in investment income. As well, a solid business plan (the company pays cash for land, for example) means it doesn’t have the financial vulnerability of other developments. Canadians are also drawn to the development by Mullen’s reputation. “There’s trust from being a Canadian developer and my background as a champion, there’s trust with that too,” he says. Mullen was exposed to the world of skiing and real estate at a young age. He was on skis from the age of six and when he was 10years-old, his parents bought an apartment building. His exposure to real estate included helping to paint and vacuum the units. He got his real estate licence while he was on the ski team. The third-generation developer began investing at the age of 21. “I did it simultaneously. Real estate was my Plan B while ski racing.” Another reason he looked to warm climes was that when he lived as a ski racer, he spent 12 months chasing the snow for 15 years. “I had had enough of winter.” When his competitive career ended, he began looking at trends, demographically and geographically, and noticed a migration south and west by boomers. “Forty-nine per cent of boomers want to go to the beach and retire.” Mullen has also been busy being a good neighbour. The resort is the largest local employer. As well, the Vivo Foundation was started 4 1/2 years ago to help local kids, families and wildlife. Vivo is the primary sponsor of the turtle sanctuary, and resort residents and guests can release baby turtles into the sea. Realtors are invited to vivoresorts.com to check out the vibrant community. Vivo co-operates with brokers. REM

There are two parts to excellent advertising: The first is good creative. The second is placing that creative in the best medium possible. REM, Real Estate Magazine is the best place to reach the entire real estate business community through 23,000 printed issues delivered across your town and across the entire country monthly. Plus 27,000 unique website users (53,000 impressions), plus 16,000 e-newsletters, plus 27,000 Twitter followers, plus Facebook users and more social media. Imagine the power of your message printed here Contact Amanda Rock for information on how to advertise on this page; call 416-425-3504 ext 1 or email her at amanda@remonline.com

46 REM SEPTEMBER 2017

It’s a career, not a job By Tracey Anderson

ongevity in real estate is not a myth! Even though statistics show that as many as 80 per cent of new real estate sales representatives leave the industry within two years, those who stick it out can be in it for decades. The key to long-term success is strategy. If you have a roadmap, you won’t get lost along the way. When creating the roadmap of your career, the more specific you are with your goals and aspirations, the clearer your path will be. Big planners may need an intricately detailed plan, while others may

need a spot on the horizon to aim for and the ability to be flexible. Decide who you are and what you want and then begin to lay the groundwork. The key is to start somewhere and always keep the end goal in mind. Find your passion: This idea is often overlooked. Many people start out thinking they’ll sell property, but they don’t consider how to specialize beyond that. Perhaps new builds, condos or commercial properties might be a fit that you didn’t expect. This task is part experimentation and part soul searching. The point is to try it all and honestly consider whether a niche is worth it. Sometimes finding what you dislike is just as important as finding what you love. Keep learning: While spending the time to find your passion is a learning experience itself, continuing to educate and train in the

field is part of that process. One of the incredible things about the real estate industry is the huge library of learning opportunities at your fingertips. Your owner/broker will be able to offer you ways to grow professionally. Beyond that, local and national organizations have excellent resources and online sites are a gold mine of knowledge. Being curious about the world around you will lead to an education and opportunities you never imagined. New sales reps, don’t be afraid to ask questions. You will learn from everyone and through that you could find your passion. Learning opportunities can also be presented in day-to-day interactions. Look to inspiration from mentors – formally arranged, or informal. Mentors have been where you want to go. They have experience, knowledge and training that can benefit you. When

seeking a mentor, find someone who challenges you beyond your comfort zone and makes you question how and why you’re doing or making certain decisions. Revisit your goals: Sometimes life takes unexpected turns. Once you’ve set your goals and steps to achieve them, don’t just sit back and wait for them to happen. You need to revisit and tweak those goals to make sure your efforts align with your vision. Long-term goals – Reassess these annually. Have you taken the right steps to get closer to your goal? Does your plan need to be revamped or fine-tuned? Maybe you’ve achieved your goal and it’s time to set your sights higher. Medium term – These are things you’d like to accomplish over the next few months to years. Revisit these more often – at least twice a year. Make sure your daily activities align with those goals.

Short term – At times these goals can feel a bit frenetic. You’re constantly resetting and working towards them, but they’re always changing. These should be reset at the very least weekly but always keeping your medium and longterm goals in mind. Your destination may change, and that’s perfectly acceptable. By purposefully identifying what you want to accomplish and the road to get there, you’re more likely to eventually arrive at your destination instead of a dead end. Just remember, it’s okay to embrace the detours too! Tracey Anderson has had outstanding success as a Century 21 sales representative and as a team leader. Starting with Century 21 in 1994, she is a multiple Centurion Award winner, including six times as the team leader of the Tracey Anderson REM Team in Winnipeg.

Finance firm sees spike in ‘green’ renovation loans By Jonathan Hiltz

e all know the main reason we need to make our homes more energy efficient is to protect the environment, but the second most important reason for slowing global warming is to put money in our clients’ collective pockets. We know that adding modern day systems like solar power and other tools can save greatly on energy bills, but does installing these systems add value to the home? Michael Garrity, CEO of Financeit, a point-of-sale financing company based in Toronto says, “We’ve seen about a 200-percent increase in the percentage of our loans that are going into the green area over the last four years.” He says solar financing for home improvements has increased by 232 per cent from 2013 to 2016 and he expects this year to bring the largest year-over-year growth in solar financing. Garrity says that Financeit

does not do direct research into home buying and renovation trends, so they are just as curious to find out why this is happening as anyone. “We’ve been looking at some of the studies that the Canadian Home Builders’ Association (CHBA) has put out. They surveyed 24,000 new homeowners a couple of years ago and they asked people what their key motivations were in driving a new home purchase. Energy efficiency was the third most desired trait (behind) cost and geography.” Of the people who cited energy efficiency in this survey, Garrity said their core motivation was to reduce utility costs. “That’s the biggest survey that we have seen, and what it tells us is that energy efficiency is important for customers. Their core motivation is lowering the monthly maintenance cost of any new house they would purchase,” says Garrity.

“We don’t track green usage specifically, but from what we have seen on the usage platform over the last couple of years, we’ve seen people going to more energy efficient HVACs, putting solar panels on their roof and using geothermal to make their home more energy efficient.” Garrity also points to a different CHBA survey that says the average home built today uses half as much energy as the exact same size of home built in 1985. The increased efficiency is due to refinements in heating, HVAC systems and window installation, among other advancements. “Homes have clearly gotten a lot more energy efficient and people know that. They are also thinking about the high cost of hydro, which has increased dramatically and it’s a political issue now. So an energy efficient home is a real important selling feature,” says Garrity.

Does a home with greener systems add value for a higher sale? “If you are wanting to increase the curb-appeal or the desirability of your house, and energy efficiency is the third most important thing that people are looking for, being energy efficient is probably a great investment,” he says. Ask yourself, “What is the energy inefficiency of your home? If it’s related to poor window installation or single-pane windows as opposed to the modern ones, then that is an expenditure that will be in the $5,000 to $15,000 range,” he says. Insulation is a $3,000 to $10,000 job depending on the age and size of the home. A large upgrade is solar power installation, which is a “bigger ticket” item of about $20,000 to $25,000, he says. One final thought about green living for increased home value is that energy costs will not be going down – in fact, Garrity says it is

quite the opposite. “If you had to predict where energy costs are going in future, the only safe prediction is that they will continue to rise,” Garrity says. “Gas prices have continued to increase as governments levy more taxes against something that is a discretionary purchase and that has environmental consequences.” Some of the most popular green living additions that can be made to a house include sealing up cracks and air holes with insulation products and replacing old appliances and heating/cooling systems with more modern energy efficient ones. Not only does a house with environmentally sound systems save a home buyer money, green living is clearly a selling tool that can be leveraged to heighten the sales price. Add that to the fact that we are helping the environment and its sustainability and it’s a winwin-win for all involved. REM

REM SEPTEMBER 2017 47

By Heino Molls

great writer but from me. An old man who has simply had the good fortune of watching this business for over 30 years now. My humble advice is just this; count your blessings. You already have all the tools it takes to make it in this business and make it big! Start by looking right in front of you. Obviously, you can read. You are lucky because many people cannot read. You are blessed with the ability to research marketing techniques, ideas on selling and creative solutions to challenging

MARKETPLACE

e are lucky to have some very good speakers in the real estate community. In my opinion, five of the best in no particular order are Richard Robbins, Bruce Keith, Brian Buffini, Craig Proctor and Barry Lebow. I have read much of what these fellows have written. I have heard each one speak. They are very good at what they do. If you want to be inspired, if you need some encouragement, if you want some fresh ideas, I suggest that you read what they write and better yet book a ticket to hear them speak. I sure can’t talk in front of people at that level, nor do I think I can write as eloquently as these fellows. However, I recently came across a couple of folks who seemed down and out about the frustrations of this business and I was thinking about talking to them. I wanted to give them some advice, not from a powerful speaker or

You have the tools to succeed problems. The last time I looked, the public library still had a wide array of books on all these subjects and it was still free to sit there in warmth on a cold wintery night or read at a table in the cool air conditioning during a hot summer day. Most of you are blessed with the ability to walk. Use this to gain knowledge about a community, a neighbourhood or just simply one street. Perhaps you could come upon the original farm house on Smith Street and learn how the neighbourhood was first subdivid-

PHOTO: Blain Thomas

THE PUBLISHER’S PAGE

ed. You could become an expert on the community history. All you have to spend is time. Maybe there’s a coffee shop you could stop by. It doesn’t take much to start a conversation and learn about the issues that concern the residents. If you can walk, you can deliver flyers or a short note about yourself to the residents. Perhaps, if you are ambitious, even a newsletter. I don’t know you but I think it is probable that you have sight and you can hear. These are such great blessings that you can use wisely to learn and see and listen. I assume also that you have been given the great blessing to think, to wonder and to imagine. How unbelievably blessed you are. These great things were given to you at no charge. How lucky you are. What great fortune you have. You have won the lottery of life. If you do not use these things to do good work for others and then apply them to your work wisely, then you are a fool. If you have these tools and you sit and lament that you have nothing, then you are a great fool. Each and every thing you could possibly need is already in your hands, already in your possession, already a part of who you are. From

here forward you have everything you need to succeed, not just in the business of real estate but in life itself. You are so very blessed. It would be wonderful to work with the great array of equipment, modern facilities, computer programs and a large staff to carry out all the mundane tasks that are needed to run a successful real estate business, but you already have all the tools, all the potential, all the opportunities and all the possibilities to do well without these things. I know many people in this business with disabilities. It is among my many blessings that I got to know them. I could fill a book with stories about how they achieved so much, despite being restricted by a lack of the basic abilities that so many of us take for granted. It is probable that you have none of these disabilities. My humble advice to you is just this: Don’t feel sorry for yourself if you haven’t made a sale. You have everything you need to succeed in life. All you have to do is gather your blessings and get out there. Heino Molls is publisher of REM. Email heino@remonline.com.

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