REM Magazine July 2009 by J Fred Duncan

Real Estate Marketing

Issue #241

News

Mortgages

Te c h n o l o g y

July 2009

Do you need a niche? Page 12

Three key indicators to pricing predictability Page 36

Dealing with inherited tenants Page 6

Sam Coreaâ&#x20AC;&#x2122;s secrets to success

A top Calgary sales rep on the benefits of finding your brand Page 8

Opinion

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REM JULY 2009 3

OBITUARY

Condo market perceptions improve A

new poll by TD Canada Trust shows that the perceptions of the condo market have improved significantly over 2008 with 44 per cent of urban Canadians believing the current conditions have improved for buying a condo as an investment (versus 21 per cent in 2008). Respondents say it is a buyers’ market and condo prices are declining. If they can’t afford to buy one on their own, 43 per cent are willing to consider a joint purchase with a friend or relative to make the condo purchase possible, the survey says. The poll showed that the top reason urban Canadians would consider a condo purchase is because condos require less maintenance than houses. The second most popular reason is that condos are more affordable than houses. Not surprisingly, in Vancouver, where housing costs have traditionally been high, the responses differed from the rest of Canada, with 35 per cent of Vancouver respondents citing affordability as the top reason for a condo purchase. The amount Canadians are willing to spend has remained con-

sistent. For a two-bedroom condo, 82 per cent say that they would be willing to pay less than $400,000 (compared to 84 per cent in 2008). Prospective condo buyers continue to want to keep their costs low, with 83 per cent saying they would pay less than $400 per month in condo fees (compared to 84 per cent in 2008). “I imagine there are many people who believed just a year ago that they would not be able to get in to the housing market – and now current market conditions are allowing them to reconsider their options,” says Joan Dal Bianco, vice-president, TD Canada Trust. “Low interest rates, affordability, the range of condo options and amenities make a condo an attractive purchase for many Canadians.” Ninety-seven per cent of survey respondents chose low condo fees as their top condo feature or amenity, followed closely by good security at 96 per cent. An energy efficient building is also important (93 per cent), as is attractive design (95 per cent). A brand new condo climbed the list of important features in 2009 with 58 per cent

selecting it as very or somewhat important compared to 45 per cent selecting it in 2008. Some other findings: • Parking is a driving force in deciding whether or not to purchase a particular condominium. • Vancouver residents are more willing to raise a family in a condominium while residents of Montreal and Halifax are least likely to consider a condo as a family option. • Residents of Halifax are more likely than other urban Canadians to purchase a condominium because they are approaching retirement. • Montrealers are willing to pay the least in condo fees with 60 per cent willing to pay less than $200 a month. Torontonians will pay the most in monthly condominium fees with 72 per cent willing to pay more than $200 a month. • Residents of Calgary, Toronto and Vancouver are most likely to consider owning a condo as an investment (that is not their primary residence) and residents of Montreal and Halifax are least likely. REM

Les Higa es Higa, broker and coowner of Coldwell Banker First Lethbridge Realty, died on May 26. “Les was a unique individual who was admired and respected by all of us who were fortunate enough to have known him,” wrote John Geha, president of Coldwell Banker Canada. “As this year’s recipient of the President’s Award, we recognized Les for his truly distinguished career with a standing ovation at our Canadian Awards Gala. He was a man who in the words of the CEO of the Alberta Real Estate Association, ‘epitomizes the qualities most admired in a real estate professional and is a credit to Coldwell Banker, his community and the industry at large.’ Les was a powerful advocate for organized real estate and set a shining example for all who knew him. His reputation as an industry leader was earned through knowledge, honesty, integrity and a willingness to share with everyone, including the competition.” Mr. Higa was appointed director of the Alberta Real Estate Association in 1991 and became president of AREA in 2003. In 2006, he was appointed by AREA to represent Realtors from across the province on the Real Estate Council of Alberta.

Mary Gordon, his business partner of 17 years, says, “If you looked up the word professional in the dictionary, I’m sure Les Higa’s name would appear. Being partners with Les is not a job, it’s a privilege.” Mr. Higa was born in Coaldale, Alta. in 1955. He is survived by his wife Mary Jean Aubin; daughter Kameko (Martin Baender) and son Raiden; stepdaughter Candice Aubin-Lam (Simon); brothers Gary (Danna – deceased) and Randy; sisters Brenda (Lester) Tanner, Donna (Ray) Journoud, and Sharon (Arlon) Bauer; six nephews, two nieces, numerous cousins, aunts and uncles, and his maternal grandmother. Memorial donations may be made to the Canadian Cancer Society, 317-10 Street South, Lethbridge, AB T1J 2M7, or to the charity of your choice. REM

4 REM JULY 2009

Multiple Listings By Jim Adair

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

ohn M. Ross has been named managing director of Avison Young-Edmonton. Ross has more than 30 years of experience in the real estate business, specializing in investment sales and acting on behalf of pension funds, REITS, publicly traded companies and private sector clients. For the past three years, Ross was vice-president, Real Estate Investments for Albertabased WAM Development Group, focusing on the Alberta and Southwestern U.S. markets. Prior to that, he was a partner with J.J. Barnicke in Edmonton from 2000 to 2006. Commercial real estate veteran Michael Keenan has joined Avison Young’s Vancouver broker-

John M. Ross

age operation. Keenan has been in the real estate business for 28 years, initially with Knowlton Realty and most recently with CB Richard Ellis (CBRE) in Vancouver. Over the past three decades, he has negotiated approximately $1.8 billion in leasing and sales transactions. In the recent past, he focused on development sites and value-add opportunities within the urban Vancouver precinct. For several years, Keenan also served as senior vice-president and sales manager of the Vancouver office of CBRE. ■ ■ ■

Ron Young of Exit Realty Specialists in Saint John, N.B. has opened a new office in the neigh-

Michael Keenan

bouring town of Rothesay. The new office has 3,200 square feet of office space. Young opened his Saint John office in the summer of 2006. It now has the No. 1 market share and 67 agents, the most of any office in the city, the company says. “I was extremely cautious about making my move to buy an Exit Realty franchise,” he says. “I was the top producer in the city for another franchise competitor and had a lot to consider, but everything inside me kept telling me this was the right vehicle for me to gain real financial leverage for my future for the first time in my real estate career.” ■ ■ ■

Ron Young

Keller Williams Energy Real Estate has opened for business in Whitby, Ont. At the helm is operating principal Chris Davies, who says, “Keller Williams Energy was conceived using the following recipe: First we put together an initial group of 38 salespeople and staff who believe that our individual careers will grow stronger if we share information and expertise with each other. We then set up an environment of sharp business focus, education, fun, personal growth, high standards, balanced living, and strong personal relationships. Stir all that together and we get energetic salespeople doing great business. We have a lot of fun doing it, and then we go home to our families.” Among the sales reps at the new company are Larry Lloyd and Tracy Mullin, who lead a local team with more than 20 years of experience. ■ ■ ■

Domus Realty is marking 20 years as an independent real estate brokerage in Halifax. Founding partners Sandy Rutledge, Gail Morris and Stephen Townsend celebrated the milestone anniversary with family, friends and clients at a reception on May 20. “It was never our intention to become the biggest real estate business out there, but to stay handson as Realtors ourselves and to focus on putting the customer first, to conduct our business with professionalism and integrity and to work with like-minded associates,” says Rutledge. “After 20 years it’s clear that a big part of our success is the fact that we have fabulous clients, great suppliers who make it much easier to do our own jobs well, and a strong network of professional and personal support from our fellow agents, staff and families.” The company was started in Halifax by Rutledge, Morris and Townsend in 1989. Townsend retired in 1999 but Rutledge and Morris continue to run the business with a staff of four other associates and seven support staff, six of whom are also licensed real estate agents. Approximately 95 per cent of the company’s business comes from repeat or referred clients, including all Halifax-area hospitals and universities, as well as many clients from financial industries. ■ ■ ■

The team at the new Keller Williams Energy Real Estate in Whitby, Ont.

Exit Realty’s recent Canadian

Franchisee Conference in Toronto drew record attendance, and featured seminars about industry firsts in technology, marketing systems opportunities and adaptation strategies for the changing economy. Exit says, “The full effect of the heart of the Exit system, singlelevel residuals, was transparent. Now, more than ever, getting a paycheque, even when you don’t have a real estate transaction closing, has proven to be the financial stabilizer that agents in the real estate industry need.” The annual conference “provides franchisees with an injection of ‘jet fuel’ for the coming months,” says the company. “Growth strategies, dynamic recruiting initiatives, and leadership management directives were integral sessions” delivered members of the Exit system. The company says Exit is now the largest real estate company in Atlantic Canada and “is strategically positioned to have over 320 franchises across Canada with 18,000 sales associates. Exit Realty Corp. International has now sold over 1,300 franchisees across Canada and the United States.” ■ ■ ■

Mississauga, Ont. real estate broker Akbar Zareh received a suspended sentence after being convicted of sexually assaulting a former employee. Zareh was arrested in 2005 and charged with 11 counts of sexual assault. At trial, several former female employees testified that Zareh made sexual comments and touched them inappropriately while they worked at the Re/Max Realty One brokerage. Zareh’s lawyer said that the banter was condoned and accepted by everyone at the office, including the alleged victims. The jury found Zareh guilty on one count, not guilty on six counts, and could not come to a decision on the remaining four counts. In June, Zareh was sentenced to one year probation, during which he may not have contact with the victim. Zareh is now a broker at Maxcom Realty, which is operating as Kingsway Real Estate in Mississauga. ■ ■ ■

A former B.C. real estate agent and convicted tax evader was sentenced to 20 months in jail and fined $98,211 after being extraditContinued on page 6

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6 REM JULY 2009

Dealing with inherited tenants Real estate investors who buy a multi-unit building as an investment can choose their own management staff – but they must learn to deal with existing tenants By Judy Liebner

nvestors in multi-residential properties need to do much more than ensure the building they want to purchase is structurally sound. In many cases, they’ll also be forging long-term relationships with existing tenants, employees and service providers. Joe Hoffer, a London, Ont. lawyer who specializes in residential tenancy law for landlords, says many small investors move up from owning several duplexes or four-plexes to a walk-up apartment building with eight to 24 units. The difference between owning a four-plex and a multi-residential building is huge. “They’re really dealing with a much different environment in terms of regulations. They’re taxed at a multi-residential rate, there’s much more scrutiny from the city, and (in provinces such as Ontario) there’s a different assessment methodology by the municipal property assessment authority. It really is a different class of property,” Hoffer says. Buyers need to be particularly aware of any contracts the current owner of a building has with outside service providers, such as elevator, fire safety and cable television contractors. There may also be contracts related to appliances and building maintenance, and for the employment of a building superintendent and cleaning staff. Buyers should examine the contracts, determine which ones they’ll maintain and whether they’ll require the vendor to terminate others. “In the vast majority of cases when you buy a building you become an assignee under all of

J U LY 2 0 0 9 Cover photo: BRYCE MEYER

those contracts and you take over the obligations of the owner that are set out in those contracts,” Hoffer says. It’s common for buyers to include a clause in the Agreement of Purchase and Sale stating the vendor will terminate employees so that the purchaser is free to hire his or her own staff. There is no choice with tenants, however. Buyers must retain existing tenants even if there is no written tenancy agreement. That can be a Catch-22 situation, says Joyce Byrne, a broker with Sutton Group Preferred Realty in London. Although buyers and owners want tenants to stay to ensure their cash flow, buyers don’t want to inherit poor tenants. Byrne recommends that investors visit the building they are considering purchasing at different times of day to get a feel for the area and the residents. They should take note of such elements as window treatments and whether tenants are using their balconies as an outdoor amenity or as storage units. They should also look at the parking facilities and drive by in the early evening to see if the lot is full or has room for visitors parking. “I think when people look at a building they can easily see how tenants live,” Byrne says. “Tenants don’t seem to change the way they live when the building is up for sale to impress what they think might be the new landlord.” Byrne, who owns student properties, says investors should talk to the superintendent about any problems in the building, what kind of tenants live there and how long the superintendent has

worked there. That information helps to establish whether the building has been well managed. “The big thing is whether tenants pay and stay,” Byrne says. “Most people will stay if the building is taken care of until they can afford a house of their own.” Hoffer says buyers should reserve the right in the Agreement of Purchase and Sale to inspect tenant files and suites, and to have a qualified building inspector assess the building. Investors should also determine if there are leases and where they’re kept. A file for each tenant should include maintenance requests and copies of notices, including eviction notices and notices of rent increases that were served to the tenant, as well as copies of complaints made by the tenant and an incoming inspection report. The files give buyers a good indication of whether there were problems with how the former owner managed the building. “Each tenant’s file gives you a little bit of history about how the landlord dealt with that particular tenant and how that particular tenant dealt with the landlord,” Hoffer says. “If the vendor can’t even produce tenant files, I would be extremely concerned about the quality of management.” Buyers should ensure, as well, that notices were served to tenants on the proper forms. For example, in Ontario, a notice of rent increase that isn’t served on the correct form is void under the Residential Tenancies Act in Ontario. If the landlord didn’t give proper notices of rent increase, or no forms were used, the tenant legally has the right to return to

the rent that was charged at the beginning of his or her tenancy. Buyers need to stipulate in the Agreement of Purchase and Sale that the owner transfer the last month’s rent deposits to them, Hoffer says. Otherwise, buyers will have to pay those deposits out of their own pockets, plus the interest, when tenants vacate their units. As with other types of real estate, location is important, Byrne says. Investors should research typical rents for similar properties in the immediate area and whether

Multiple Listings Continued from page 4

ed from Mexico. Last year a warrant was issued for the arrest of John W. Loosdrecht after he failed to appear at the continuation of his trial. He was found guilty of income tax evasion in absentia, located in Mexico and extradited back to Canada in April. Loosdrecht, a resident of Kent, filed his 2001 to 2004 personal income tax returns without reporting any income or deductions, says Canada Revenue Agency (CRA). A CRA investigation revealed that Loosdrecht’s employer had filed T4A information slips reporting self-employed commission earnings totaling $758,228 during those years. Loosdrecht attempted to evade paying $98,211 in federal income tax by failing to report those earnings and making false statements, says CRA. During the trial, the court considered Loosdrecht’s position that his activities as a real estate agent

competitors are offering similar amenities. Even if landlords invest a great deal of money in a renovation, they may not be able to command rents much higher than the average rent in a particular neighbourhood. Moving up from owning duplexes or tri-plexes to a multiresidential building represents a learning curve for investors, Byrne says. “The more units you have, the more inflation-proof and financially secure you are. It’s very common for people to start small and work their way up.” REM were not taxable since they were conducted in his own capacity as a “natural person”. In his Reasons for Judgment, the judge said that Loosdrecht’s conduct “defies any logic and, in particular, is not believable in the context of a person in his circumstances. His conduct amounts to willful blindness at law.” ■ ■ ■

Re/Max International recently added Brazil to its list of international regions. Four region owners, who originate from Brazil and Portugal, have purchased master franchise rights for Re/Max Brazil and plan to open offices throughout the largest country in South America. Re/Max now has a presence in more than 70 countries. Re/Max Brazil Region owners Luis Juliao, Jose Luiz Monteis, Renato Teixeira and Paolo Toledo average more than 20 years of real estate experience and have been operating an independent firm in Brazil with more than 800 agents.

Publisher HEINO MOLLS e-mail: heino@remonline.com

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Director, Sales & Marketing DENNIS ROCK e-mail: dennis@remonline.com Brand Design SANDRA GOODER

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REALTOR® and REALTORS® are trademarks controlled in Canada by The Canadian Real Estate Association (CREA) and identify licensed real estate practitioners who are members of CREA. MLS® and Multiple Listing Service® are trademarks owned by CREA and identify the services rendered by members of CREA. REM is published 12 times a year. It is an independently owned and operated company and is not affiliated with any real estate association, board or company. REM is distributed across Canada by leading real estate boards and by direct delivery in selected areas. Subscriptions are $40.95 per year (including $1.95 GST), payable by personal cheque. Entire contents copyright 2009 REM. All rights reserved. Reproduction in whole or in part without written permission from the publisher is prohibited. The opinions expressed in REM are not necessarily those of the publisher. ISSN 1201-1223

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8 REM JULY 2009

Sam Corea’s secrets to success “Overnight I changed the look of what I was doing, coming out with my ‘brand’ and the look for my ads that I still have today,” says Calgary’s Sam Corea, one of the country’s top sales reps. By Susan Doran He ranks in the top 10 worldwide as well. He estimates that he spends $300,000 a year on marketing. Corea has been involved in upwards of 1,500 transactions in the past decade and says he has about 50 listings at any given time. He works on an offer almost every day, and his client list includes singer Jann Arden (“She has a huge personality. I never appreciated her music until I met her,” he says) and various members of the Calgary Flames. A native Calgarian, he says that he “caters to his circle of influence” – wealthy clients he’s had for years and their friends. “I don’t do open houses (they’re not standard with top-end homes, he says) and I don’t prospect … I believe in social networking, old-school techniques, face-to-face,” he says, citing as an example his previous chairmanship of the Alberta Theatre Projects Patron Development Committee.

Photo by Bryce Meyer

would be remiss as a journalist – a profession that dictates that you begin an article with a tantalizing tidbit to capture your readers – if I did not start here by telling you that Calgary megaagent Sam Corea says he has to ask his super-wealthy clients to get rid of the naked pictures of themselves that adorn their homes “more often than you might think.” Now, I get why potential buyers might be taken aback by such pictures. But I’m having trouble figuring out why such photos would be there in the first place. Do rich people look better naked than the rest of us? Is there an unusually high number of exhibitionists among multi-millionaires? Or is this is a phenomenon unique to Calgary?

Sadly, Corea has no answers to these questions. All he can say is that his clients are the crème de la crème, residents of Calgary’s posh west end and the inner city. Nudie shots aside, the million-dollar-plus homes he sells generally need little in the way of staging, as his clients tend to have great taste and an eye for quality, he says. That’s not all that sets Corea and his target market – luxury homes – apart from the mainstream. Dubbed “the million dollar man” by his colleagues at Calgary’s Re/Max House of Real Estate, Corea was Re/Max’s topranked agent in Western Canada last year, and has been among the top 10 Re/Max agents in Canada for the past several years.

“Networking with high-networth individuals, I met lots of people who would write $1 million cheques …and it all went to a great cause, helping the theatre.” The current market slide doesn’t scare him. “Most agents are doing half as much business as before ….but my business has improved,” he says. “When the market is down, top agents do better. We’re getting more qualified calls. In a tough market people want someone with experience, not a friend of a friend who’s part-time.” But he wasn’t always one of the chosen. A builder’s son, he learned about trends and quality materials and finishes from his father,

who he says “did a lot of highend millwork and was an old world craftsman,” leading to Corea’s love of upscale homes. Corea got into real estate at 22 after a stint in the restaurant business. He’s now 38, although “most people think I’m 50, they’ve seen me around for so many years,” he says. He started as a licensed assistant to a top agent who specialized in luxury homes. Once he ventured out on his own he stuck to the same pricey areas, and he did just fine, by most standards. But by 2003 he felt his business had “plateaued” and he wanted to take things to the next level. He hired a graphic designer

funded. Being a luxury home specialist is big win/big loss,” he says. It can cost $4,000 for a glossy full-page ad. And you can spend thousands of dollars marketing a home that winds up not selling. Before he transformed his business, he was “working hard but not get getting the return,” he says. Now he feels he’s actually working less than before – “a real paradigm shift,” he says. “You have to put in the time in this business and once you do it will pay off.” He’s highly scheduled – that almost goes without saying. “Before my son was born I was probably a workaholic. But now I’m very specific about the hours

A builder’s son, he learned about trends and quality materials and finishes from his father and sunk $100,000 into advertising everywhere from billboards to “all the (business) magazines I could, branding myself as the luxury guy,” he says. “Overnight I changed the look of what I was doing, coming out with my ‘brand’ and the look for my ads that I still have today.” Within a short time his income tripled and he went from not even being in Re/Max’s top 100 to consistently being in the top 10. His advice to young sales reps, not surprisingly, is, “Try not to be all things to everyone … Know your market and brand yourself accordingly.” But be careful what you wish for, he says. “You have to be well

I’ll work. Most deals are done in my office between 9 and 5. . . .The only evenings I work are Mondays and Tuesdays. I work a half day on Saturday and have no appointments on Sunday.” Corea has three unlicensed assistants, a “user-friendly” website, and 2,500 square feet of private office space that he shares with his wife, who is a designer. He has plans in the works to launch his own glossy magazine with a circulation of 20,000 to showcase his listings. He’s also a wine connoisseur. “I’m blessed,” he says. “I’ve met some great people. The secret to success is getting in front of the right people.” REM

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10 REM JULY 2009

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or one night, sales rep Debra Tosh put away the open house signs and turned off her cell phone. She put on a navy blue strapless gown with chiffon butterfly wings and shone with rhinestones on her neck, ears and in her hair. Then she and dancing partner Tom Secretan, chief warrant officer, 8 Wing Trenton, danced to raise money for charity. The dance partners came in second of seven couples who participated in the second annual Dancing With The Stars of Quinte at the Yardman Arena in Belleville, Ont. in May. Six hundred people, including Tosh’s parents, friends and relatives, sat at tables placed around an 18 x 40foot dance floor on the ice area of the arena. “There were many polished dancers in the crowd and they filled the dance floor….It was fun to watch them float across the floor showing off their moves,” says Tosh, who is with Re/Max Quinte. She and Secretan danced the Viennese waltz to a pipe and drum song called The Maestro and the Minstrel. “It was a classic waltz but we tried to give our dance a bit of a Celtic flare,” she says. Secretan, at 6’5”, wore his regimental RCAF kilt and full regalia. “It is interesting that the tartan for the RCAF is based on the Anderson tartan. My maiden name is Anderson and I sold real estate in Toronto under that name in the late ’80s for Terry Martel Real Estate,” says Tosh, who is barely 5’4” tall. She has been an agent for 23 years, and has been in the President’s Club and 100 Per Cent Club for top producers. Five judges offered a commentary after each performance, and every member of the audience was given a vote. “Although we came in second, (a photo of us) dancing that night was posted in three local papers in full colour, including the front page of the main newspaper, and there was plenty of chat on the radio waves leading up to and following the event,” she says. “There were posters all over town with all of our names on it and the position we hold in the community. It was a

great way to promote myself, have fun, get into shape and make some wonderful new friends.” She says she has since received emails, cards, letters and phone calls of support and “we were even asked to perform it again at a fundraising ball held in nearby Warkworth.” The event raised more than $8,000 for two not-for-profit organizations, Big Brothers Big Sisters of Hastings and Prince Edward counties, and Volunteer and Information Quinte. Jamie Troke of Coldwell Banker Ekort also participated in the competition of non-professional dancers. Couples are assigned a teacher and decide on the dance and music, and are given eight hours of instruction. And they practice, hard. Tosh also hired a personal trainer to prepare for lifts and work on upper body strength. Tosh is not new to performing. The actor/producer has been in several musicals, last year starring as Mama Rose in Gypsy. She produced a vintage clothing fashion show in celebration of the Belleville General Hospital’s Auxilliary’s 70th anniversary. Tosh is also not new to giving back to her community. Fundraisers have included producing a children’s play that raised $12,000 for the Canadian Cancer Society; and a Halloween Dance that raised $3,000 for the Belleville Theatre Guild and the Quinte Humane Society. She has also volunteered on the Sexual Assault Crisis Line. REM

Debra Tosh and partner Tom Secretan

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18 REM JULY 2009

METES & BOUNDS

By Marty Douglas

oad trip. At my age, I tend to eschew driving much further than the wellworn path to and from work. So it was with some excitement for the journey and nervousness about descending from my chariot after an eight-hour day that my fiancée and I set out on a 2,200 km circle tour. You mean there’s more to do on Vancouver Island than fly away on WestJet? Yes indeed, my ROC (Rest of Canada? – Ed) friend. BC Ferries has a new pocket cruise ship, the Northern Expedition, fresh from German

Marty’s B.C. road trip shipyards, sailing every second day from Port Hardy to Prince Rupert, a journey of about 16 hours. Have a look at the ship, routes and schedules at www.bcferries.com/schedules/ inside. The downside is the sailing time of 7:30 with a two-hour check-in, making for a pretty early start to the day. I recommend driving to Port Hardy the day before, enjoying an uncluttered road, one bear and some terrific scenery. We stopped for lunch in Sayward at a diner where they assume you want coffee, and artificial sweeteners have never been contemplated. It’s a simpler time and place. After an evening cocktail at a waterfront bar in Port Hardy, we retired early to the Glen Lyon Inn, minutes from the ferry terminal, where the clock radio is set permanently for 4:30. A rigorous identity check preceeded an on-time departure. By

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8 am we were doing what we do best when travelling – eating. The new ferry features dining facilities unusual to those of us used to the southern routes – linen, place settings, stemware and a chef at a carvery station for dinner. Yes, Virginia, they serve liquor. For those not ready for the leap into BC Ferry haut cuisine, a cafeteria is also available. We had booked a two-berth cabin, mostly for my afternoon nap, and I was pleasantly surprised, not only by the roomy bathroom and shower, but by the flat screen, satellite served TV. The lounges feature allleather recliners, including a footrest if booked in the forward lounge – only the skipper has a better view. A movie theatre with two shows per sailing rounds out passenger amenities. The ship is 150 metres in length, and can carry 600 passengers and 130 cars. On our voyage there were fewer than 100 passengers and the crew ratio was just over one to one. After a sandwich lunch we opted for a couple of leather recliners in front of a 6x6 window. We smoked by the Diamond Princess cruising toward Alaska, waved at Bella Bella, Klemtu and remote light stations until we were in Grenville Channel making 20 knots in a passage occasionally only 1,400 feet wide. Despite threats of swimming moose and grizzlies, there were only eagles and gulls. Waterfalls cascaded every mile, snow still deep on the northern faces of the slopes on either side. The water is deep and cold. Gill Island had passed without comment from the BC Ferry staff, who had been making announcements en route. Not surprising, but it was surely a mistake to ignore the March 2006 loss of the Queen of the North and two passengers, and particularly the heroic rescue of 100 passengers and crew by the local aboriginal community of Gitk’a’ata in Hartley Bay. For a map and description of the sinking - http://continuouswave.com/ubb/Forum1/HTM L/011840.html .

We arrived in Prince Rupert, a critical deep-sea cargo terminal for Canada and North America, in rain around 11 pm, disembarked our vehicle and with one turn around the block due to a navigation error caused by the uncertainty of what “slightly right” means in Google Map speak, we were at the Crest Hotel – the finest in Rupert. By the way, contrary to this city’s reputation, there were hours when it wasn’t raining. Then we were on the road through the Skeena River valley with mountains, waterfalls, Simon Frasers’ other river and another bear. Terrace, Smithers, Houston, Vanderhoof (the geographic centre of B.C.) and we were well into the high cattle country of the Caribou. Prince George brings a couple of Google searches to find our destinations, a late dinner and drinks with family and friends. Jim McNeal, a friend for nearly 30 years in real estate, has asked me to speak at his sales meeting. My topic is “Now that I’m in real estate, how do I get out?” Trust me – it’s positive. While in the neighbourhood, I have a beer with another old real estate friend, Bill Lynch and get caught up on his life in the north. Before the beer, Bill includes a tour of UNBC, a recipient of significant contributions by Bill and the Realtors of B.C. through the B.C. Real Estate Foundation. Former real estate board president Noel O’Beirne – he claims a senior’s discount although he doesn’t look eligible – has insulted me daily at a morning coffee klatch and it’s time to decamp. We drive south on Highway 97 through Quesnel – Granville Coffee Bar is a great breakfast stop – through Williams Lake, Clinton for lunch, and at Lillooet turn for Highway 97 and the coast. Who knew it was a road rally on a ripped up stretch of road? The Fraser is impressive and muddy, the mountain scenery and rushing roadside streams are distracting. The single lane bridges and hairpins

drive me to drink – and I’m not driving on this stretch. That night the Pemberton Valley Lodge recommends the Black Squirrel restaurant and so do we. The next morning is our run south to Tsawwassen and in my haste, as we approach the 2010 Winter Olympic resort of Whistler, I meet a member of the RCMP who advises of the perils of “speed against highway sign” and saves me $138 with a warning. I like to think it was my pleasant demeanour. No more haste means we arrive at the BC Ferry southern mainland terminal with an hour to spare for the 2 pm sailing of the Coastal Renaissance, another recent German import. This baby is 10 metres longer than her northern sister, carrying 1,650 passengers and 370 cars. The crossing to Victoria is one hour and 35 minutes via the close confines of Active Pass. Sunburn alert on the upper decks! Two days of fine dining, especially at the James Joyce Bistro and Billiard Hall – I’m not kidding, check it out – followed by Sunday morning chorizo eggs benedict at John’s Place – then a performance by Il Divo at Memorial Arena. Everything you have heard about this tenor quartet is true – fantastic show – and I wasn’t the only guy in the 5,000 or so crowd. June 1 saw us finish the circle and by noon I was in my office, listening to a salesperson’s tale of woe over a deal gone sour. Made me miss the pain of getting out of the car after an eight-hour drive. Marty Douglas is a managing broker for Coast Realty Group (Comox Valley) Ltd., managing two of 15 Coast Realty Group offices on Vancouver Island and the Sunshine Coast of B.C. He is a past chair of the Real Estate Errors and Omissions Corporation of B.C., the Real Estate Council of B.C., and the B.C. Real Estate Association, and is a current director of the Vancouver Island Real Estate Board. Email mdouglas@island.net; 1-800-715-3999; Fax (250) 8973933. REM

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20 REM JULY 2009

Industrial, Commercial & Investment

By Lloyd R. Manning t the beginning of this century, the term “going green” evoked visions of little one-eyed green men who just arrived from a distant galaxy. Referencing commercial real estate, today the term implies an environmentally sustainable building, increased income through lower operating costs, and a greater resale value. Government agencies in Canada and the U.S., followed by real estate developers, major manufacturers and commercial companies, are going green. It is a movement intended not only to gain respect and satisfy the environmental gurus, but to produce enhanced longer-term profit. Rather than a somewhat nebulous goal, the development of sustainable buildings has become a tangible objective. However, when considering the commercial property market, the sustainable building trend has yet to bear that much fruit. So far the going green persuasion is an unco-ordinated jumble of mixed postures and unprovable benefits. When purchasing a commercial property, the market is more cognizant of the sale price, capitalization rate, lease rate per sq. ft., net pre-tax income, location, and environmental due diligence than it is in going green. On the other hand, institutional and end-user commer-

cial property investors are increasingly demanding green building practices. Many experts agree that the environmentally friendly building approach is here to stay. All evidence indicates that soon the real estate industry will have no choice but to adapt in a world in which excessive energy consumption and material waste will no longer strain our planet. Still, all of this must be phased in. Although the green movement may happen more rapidly than a snail’s pace, the slow plodding turtle is probably more representative. Edmonton appraiser Guy Bourgeois says the only time the difference between a green and standard building is now taken into consideration is when the rentals are substantially higher or the operating costs lower. He says that although there is the suggestion that green buildings will command a higher dollar, so far the concept lacks market quantification. Bourgeois says that it will probably be about 10 years before it will be a market reckoning factor. On the other hand, some U.S. studies indicate that green buildings will rent for 10 to 15 per cent higher and will bring a 10 to 15 per cent price increase over those that are less efficient. It appears that Canadian real estate professionals and appraisers have much catching up to do – yet to survive and prosper; they must do so in the near future. Several U.S. cities have mandated that all government buildings must be built as “sustainable”. The U.S. federal government and several state governments have jumped on the “developing energy efficient buildings” concept. There is the Green Building Council’s LEED (Leadership in Energy and Environmental Design)

Commercial buildings go green – but does it pay? Standards with its Canadian chapter, California’s Green Building Standards Code, Washington’s Clean and Affordable Energy Act, and so forth. With LEED, most U.S. cities are promoting building green, and it is catching on here. In Canada, the Building Owners and Managers Association (BOMA) developed an extensive Go Green Program for commercial buildings, which recognizes and certifies those properties being managed with a commitment to environmental responsibility. BOMA’s program is intended to provide the methods by which building owners can reduce energy consumption and operating costs and improve waste management techniques. In Canada there is a multitude of individual codes and standards that can be applied in the creation of sustainable buildings, but no overall standard that applies to all. There are several labeling systems but little coordination between them. Although the U.S. is in the same position as we are in Canada, they are streamlining their processes. Canada is playing follow the leader. So, what does all of this mean to commercial real estate professionals who earn a living by selling and leasing investment-commercial–industrial properties? At the moment you may say “very little”, and you could be right. However, it is now necessary to provide property purchasers with relevant added-value information, of which “going green” will soon become preeminent. It will probably become necessary for sales reps to become qualified authorities, or at the minimum be able to detail the principal differences between sustainable and standard structures, including how the additional cost to construct is offset by operating expense savings. The recessionary economy of the past few months, projected

to continue for the next couple of years, has created a high degree of investor uncertainty. This implies that because the risks are greater and the rewards lower, purchasers of commercial real estate will be seeking valueenhancing investments that will withstand the roller coaster business cycle for many future years. Methods to accelerate revenues

educated about the added value of building green and be able to pass this on to their clients. With access to thousands of sellers and buyers each year, real estate professionals are in an excellent position to help raise awareness of the benefits of energy efficiency. The Alberta Real Estate Association and others are in the process of developing

In Canada there is a multitude of individual codes and standards that can be applied in the creation of sustainable buildings, but no overall standard that applies to all. and reduce expenses will be the constant strategic challenge. The effectiveness of commercial real estate professionals will be dictated by their ability to educate clients about the advantages of maximizing long term benefits, even at the expense of lower near-term earnings. In an informal survey of commercial real estate practitioners in the U.S., Reuters News Agency says one-third of those surveyed said that green building is important to their clients, and more than half said they frequently discuss green building practices with them. “Nine out of 10 agreed that in the coming years there will be more interest in environmentally friendly buildings,” says Reuters. “All indications are that the market for green buildings has arrived. Builders are including the latest of energy saving devices and using the most recent environmentally friendly construction methods.” The bottom line is that brokers and agents must become

green awareness programs for both residential and commercial real estate. There is the National Association of Green Brokers and Agents, a Canadian organization with its exclusive designations. The National Association of Realtors (NAR) has begun certifying brokers as green specialists. A year-long course is offered by EcoBroker. Over the coming years, more real estate associations, national and provincial, and several commercial colleges will offer green building courses. To keep up with the changing times, commercial Realtors will have to learn about going green and be able to pass this information along to their clients. Lloyd Manning, AACI, FRI, CCRA, PApp is a semi-retired commercial real estate and business appraiser and broker who now spends his time writing for professional journals and trade magazines. He resides in Lloydminster, Sask. Email lloydmann@shaw.ca REM

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22 REM JULY 2009

Moving issues for Holocaust survivors T

he Holocaust may have happened more than 60 years ago, but survivors can have flashbacks that make the atrocities seem as if they’re happening now. There can be many triggers that cause flashbacks, especially when it comes time for seniors to downsize into a retirement or nursing home, says Marsha Silverberg Fingold. Through her Toronto-based company, Marsha’s Helping Hands, Silverberg Fingold offers a “dignified and compassionate home transition service” for all seniors, but specializes in Holocaust survivors because she can relate. The daughter of two survivors (her mother, Faye Silverberg, is 88-years-old), Silverberg Fingold was raised knowing the horrors of the Holocaust, when the Nazis exterminated six million Jews from 1933-45. And she understands the effects the trauma still has on survivors and child survivors, who are now about 60-years-old. The thought of giving up their independence and their family home may remind them of a time when Nazis snatched them from their houses with only the clothes on their backs. Hospitals and retirement homes take them back to a time when they were in the camps and Nazi medical examinations would determine who would live and who would die, she says. “I understand this. I go to their home with a warm heart and listen. It’s important for them to know they’re not alone.” Having someone who speaks Yiddish helps ease the pain of transition, she says. Silverberg Fingold goes in for the initial consultation, working to calm the individual. “They are often paranoid and have major trust issues.” Then together she and the client dissolve the home, going through everything. “They decide what they want to take, those treasures dear to their heart, and what they can part with. I understand

the necessity of things going to the Jewish society or to a Jewish family or child. We sell vintage items and give them the money, which is important to them.” Survivors know the value of a dollar and worked hard to make money so they could spend lavishly on their children’s and grandchildren’s education and other needs. When possessions have been dealt with, Silverberg Fingold, a certified staging professional, will prepare the house for resale. On moving day, the client is taken to a guest suite at the retirement home, or Marsha’s Helping Hands staff may take them out for lunch. “By this point, they are almost excited about moving,” she says. “If I did my job well, they’re okay to go.” Once her team of movers has finished, Silverberg Fingold then goes to the client’s new home and unpacks. “I create a small mockery of the home where they came from,” she says. Afterwards, Silverberg Fingold orders in dinner, and helps the client settle in. “We become like family. There are few clients that when the job is done, I don’t see again.” For information: www.marshashelpinghands.com or 647-8865437. REM

Marsha Silverberg Fingold with her mother, Faye Silverberg

24 REM JULY 2009

THE GUEST COLUMN

g Stayin h in touc er v has ne o been s t. an impor t

C Customized N Newsletters

By John Geha

Client Newsletters 2ETAIN s 2EPEAT s Referrals

realtyreport®

Danny Brown

The Lowdown on Down Payments

Real Estate Agent

With a wide selection of properties for sale these days, and the reasonable mortgage rates available, it’s tempting for ﬁrst-time buyers to push their home ownership goals forward, and for existing homeowners to consider buying a second or investment property. One question we are frequently asked is, “How much of a down payment do I need?”

Market Connections Inc.® 4950 Yonge Street, Suite 101 Toronto, ON M2N 6K1 Bus: (800) 387-6058 Fax: (800) 800-7093 dbrown@marketconnections.com

Solidify client relationships and encourage referrals with realtyreport®.

Market Connections Inc.®

Compliments of Danny Brown

employer? A birthday or holiday cash gift from a family member? Put any extra money into a separate savings account that you won’t withdraw from until you meet your savings goal. Set up an automatic savings plan so that a predetermined amount is automatically deposited into your special account every payday.

A conventional mortgage requires a 20 percent down payment, while a high-ratio mortgage requires a minimum of 5 percent down. Note that as high-ratio mortgages require less cash up front than conventional mortgages, they are subject to a higher insurance premium.

Greetings! You’re receiving this newsletter with hopes that you ﬁnd it informative and entertaining. If you’re thinking of making a move, or are just curious as to real estate trends in your area, please feel free to call at any time. It’s always good to hear from you!

The next question often broached is, “How do I come up with the funds for the down payment?”

If you know anyone who is a ﬁrsttime homebuyer, make sure they know about the Home Buyers’ Plan, a federally instituted government program that allows the homebuyer to withdraw up to $20,000 per person from an RSP for their down payment.

HERE ARE SOME SUGGESTIONS TO CONSIDER:

All the best,

Danny Brown

With the price of gas at an all-time high, do you need that second car? Why not sell it and put that money –and savings from gas, insurance and maintenance – towards a down payment?

I invite you to call me for an idea of what’s on the market, so that you can set your savings goal to meet your ultimate target.

Did you get an income tax refund this year? A bonus from your

CNSF

Volume 4, Issue 10

Market Connections Inc. 4950 Yonge Street, Suite 101 Toronto, ON M2N 6K1

Neighbourhood Newsletters Attract New Clients Increase your client base by advertising to select areas.

Danny Brown Broker

EAST END REPORT

Bus: (800) 387-6058 Fax: (800) 800-7093

Market Connections® Inc.

Volume 2, Issue 3

The Lowdown on Down Payments

April Showers Bring May Curb Appeal

RIVERDALE MARKET WATCH O CM TO AY B E2R0 0 28 008

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NO. SOLD

AVERAGE PRICE

$ 331,098

$ 384,591

DAYS ON MARKET

DETACHED 2 BEDROOM 3 BEDROOM

4 BEDROOM

$ 497,222 7,222

5+ BEDROOM

$ 588,500

2 BEDROO BEDROOM

$ 308,624

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100

$ 297,423

4 BEDROOM

$ 429,054

5+ BEDROOM

$ 403,360

2 BEDROOM

$ 317,667

3 BEDROOM

$ 378,779

4 BEDROOM

$ 290,900

TOWNHOUSE

Figures are based on MLS® sales as reported by the Canadian Real Estate Association. Market values depend on factors besides housing type and number of bedrooms. Overall condition, square footage, upgrades, lot size and specific location are some other key factors involved. Source: Canadian Real Estate Association

From the desk of Danny Brown.... Whether you’re thinking of buying or selling your home, or are just curious as to real estate values in your neighbourhood, you’ll want to make sure you talk to a real estate professional who is knowledgeable and familiar with the area. I invite you to call me at 416-441-1081 for the most up-to-date market information about Riverdale and East Toronto.

Danny Brown

Market Connections® Inc. Bus: (800) 387-6058 Fax: (800) 800-70931 4950 Yonge Street, Suite 101, Toronto, ON M2N 6K1

Danny Brown Broker

NEW! Realty Online E-Newsletters Expand your channels of communication by sending Realty Online to your sphere of influence.

1-800-387-6058 www.realtyreport.org 3510-06 05/15/09 R1

he federal budget tabled in January included several initiatives to stimulate the Canadian economy through home-buying initiatives, and rightly so. Real estate is a main foundation of our national economy, and all of us in the industry were pleased to see it addressed in the budget. But the big question now is, what are real estate professionals going to do to maximize the impact of these initiatives? The increase in the Home Buyers Plan (HBP) maximum from $20,000 to $25,000 will help Canadians buying their first home to do it in a financially responsible way. A proposed First-Time Home Buyers’ Tax Credit would provide up to $750 in tax relief. These incentives combined with increased affordability from lower mortgage rates and declining prices will help drive a new buyer into the market. On the flip side to the government stimulus plan to encourage buyers, there is also demographic pressure, creating pent-up demand on the seller’s side. A Statistics Canada study noted the leading edge of the baby-boom generation is now on the cusp of retirement. Those born in 1946 are turning 62 this year, the current average retirement age of Canadians. These people will be moving to downsize or to accommodate changes in their income or lifestyle in record numbers. All this spells good news not just for the housing industry, but for the national economy as a whole. Resale housing transactions across Canada generate significant economic activity. The purchase and sale of homes generates fees to professionals such as lawyers, appraisers, real estate agents and surveyors. When Canadians move, they purchase new appli-

The chicken or the egg ances or furnishings and make renovations to tailor their new home to their specific needs. A recent study commissioned by CREA estimates that between 2006 and 2008, the average housing transaction in Canada generated $46,400 in ancillary spending (spending on items other than the actual house and land). This represents a staggering $22 billion per year to the Canadian economy. Of course, buying and selling homes drives the economy in other ways beyond the initial transaction. As communities grow, so do retail outlets, schools, recreational facilities, places of worship and infrastructure. And we haven’t even touched on the jobs created to generate the materials needed

As real estate professionals we must communicate to the consumer that there is great value in today’s real estate market. for such new construction. There are few industries that can exert such a profound impact on the economy. That brings me to the age-old question, “What came first, the chicken or the egg?” We can apply that same question to real estate. Do we now sit back and patiently wait for the economic recovery to come and with it an improved housing market? Or do we proactively engage the consumer to instill confidence in the market now and drive the economy in the process? The answer is clear. As real estate professionals we must communicate to the consumer that there is great value in today’s real estate market. How do we do this? One way is to stop talking numbers and start

talking value. I firmly believe this is one of the best times ever to buy a home. Yet, the media has barraged the public with headlines about how much sales activity or house prices have fallen. They rarely mention they’re comparing today’s results against recordbreaking highs. They focus on short-term provocative headlines that instill fear in the home-buying public. They say very little about the long-term benefits of owning your own home, including freedom and pride of ownership, or building equity rather than putting your investment in a landlord’s pocket. They don’t tell the story of the vast majority of homeowners who have enjoyed appreciation in the value of their home. Only through educating the consumer can we take away the fear and help drive the market back to recovery. Those of you who know me have heard me say that people in our industry tend to overcomplicate our business. Remember, we need to listen to the consumer and address the consumer’s needs. That’s how we deliver value. As real estate professionals, we must be able to illustrate to prospective buyers the “big picture” about how home values have appreciated over time. We need to demonstrate how historically low interest rates have improved affordability and added to the buying power of consumers. Be prepared to show them how much more home their money can buy today. There’s a great deal of good news to share, and we’re doing the Canadian consumer a huge disservice if we allow the media to tell only one side of the story. So let’s not wait for the economy to turn, and carry the housing market with it. Let’s do what we do best, communicate with our customers, build consumer confidence and drive the Canadian economy in the process. John Geha is president of Coldwell Banker Canada Operations ULC, and has a proven track record as a management consultant in Canada for the past 10 years. REM

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Exceptional People Craig Woods Royal LePage REALTOR®. Walking Inspiration. Exceptional Person. Ten years ago, Craig Woods was diagnosed with an illness that left him a quadriplegic. But, if you met Craig today, you’d never know. With relentless determination, Craig spent thousands of hours to regain the use of his body and developed a winning attitude towards life and work. His experiences re-ignited his zest for life and fueled his passion for helping others. Today, Craig’s approach to real estate is very similar to his take on life, “We all have a purpose for being here, it’s up to each of us to find it, hone it and be the best we can be.” Craig is one of over 13,000 REALTORS® whose dedication and positive attitude contribute to Royal LePage’s unique culture of support and success.

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28 REM JULY 2009

innipegRealtors is now participating in the Manitoba Amber Alert Network. “Our recent adoption of a sophisticated messaging technology and the successful testing of it in the past few months has made it possible for WinnipegRealtors to volunteer its 1,000 plus Realtor Touchbase Real Estate messaging system to assist the Winnipeg Police Service as a new partner in the Manitoba Amber Alert Network,” says board president Deborah Goodfellow. Using the same messaging technology in the lower mainland of B.C., an 11 year-old run-away boy was found by a Realtor. Upon checking his text-message alert from the RCMP, he looked out his window, spotted the boy and immediately called 911. Six years

LEGAL ISSUES

By Donald H. Lapowich n Ontario case is an example that “facts” and not “suspicions” are what determine the day. The plaintiff purchased a duplex from the vendor and three years later discovered that the foundation was useless. It had reached the end of its lifespan prior to the closing date. Prior to the plaintiff’s purchase, another potential buyer had a home inspection that disclosed the defects in the founda-

later in 2006, a Realtor in Langley, B.C. was instrumental in helping the RCMP locate a missing teenager. Winnipeg Police Services chief Keith McCaskill says he welcomes the participation of the Winnipeg board’s membership in the event a child under 18 goes missing and an Amber Alert is issued. “The more eyes and ears we have out there, the more success we can have,” says McCaskill. ■ ■ ■

The White Rock RCMP is crediting Realty Watch, that community’s crime prevention program of Lower Mainland Realtors, for helping them locate a missing, vulnerable senior within one hour of asking for their assistance.

The RCMP issued a press release asking the public for help in locating a 91-year-old female, suffering from dementia, missing from her care home in White Rock, B.C. since the early morning. They contacted the Fraser Valley Real Estate Board requesting it to issue a Realty Watch “fan-out” – a text message that is sent simultaneously to its 3,000 members. Dan Korness of Royal LePage Northstar Realty in Surrey was showing a house on 20th Avenue in South Surrey. He was outside with his clients when an elderly woman walking nearby on the sidewalk stumbled and fell. Other than a few scrapes, she appeared to be okay, but to be on the safe side, an ambulance was called. An hour later, Korness was now kilometres away at a different White Rock listing when he received the Realty Watch fan-out text message for a missing person. The description strongly resembled the elderly woman that had fallen… in particular her age, hair colour and white sweater. “I just put two and two together. So I called the police telling them that I thought the missing senior they were looking for might

be at the Peace Arch Hospital and told them the story of what happened in front of the house.” This is Realty Watch’s third success in the Fraser Valley. ■ ■ ■

François Léger has been elected chair of the Board of Directors of the Association des courtiers et agents immobiliers du Québec (ACAIQ) for a two-year term. More than 5,500 brokers and agents voted in the election. Léger sat as director of the ACAIQ board from 1991 to 1995 and was chairman of the ACAIQ from Winnipeg Police Services chief Keith 1995 to 2001. He succeeds McCaskill and WinnipegRealtors presiChristiane St-Jean, who held dent Deborah Goodfellow at a news conference to announce the board’s participathe office for two years. David Farber and tion in the Amber Alert Network. Johanne Roy were re-elected prepublication of the Draft as directors for the Montreal Regulations of the new Organisme region. Previously, Robert Aubin d’autoréglementation du courtage was declared re-elected by acclaimmobilier du Québec (OACIQ) mation as director for the Western has not yet taken place, and this region. must be followed by a 45-day conThe ACAIQ says Quebec’s sultation period. A new implenew Real Estate Brokerage Act mentation date for the legislation will not come into force on July 1, has not been announced. REM 2009 as initially announced, as the

Only the facts matter tion. The plaintiff’s home inspection did not, because the walls in the basement had been since covered with drywall. The plaintiff sued the vendors based on their alleged awareness of the condition of the foundation, concealment and inducement to purchase. The court found: • The vendor was not present during the first inspection and was not told why the first potential buyer backed out; • The vendor was not aware foundation was useless. The drywall he added was for esthetics and not to conceal a known defect. Case dismissed. ■ ■ ■

British Columbia and now Quebec compel practising lawyers to take mandatory continuing legal education. It is

hoped that through continuing education, self-adjudicating bodies governing professionals can prevent errors and omissions in order to protect the public. This is to any professional a “two edged sword”. By maintaining self-governing powers, the professional society must of necessity continue “to educate”. To continue to educate raises the bar, known as the standard of care that you and I will be judged by in a court of law. On the other side of the sword, any professional worth a grain of salt will voluntarily engage in continuing education. Our society and expectations have changed at an accelerated pace in the last 40 years of my practice. Who would imagine the speed of communication with clients today compared to 40 years ago? This in turn demands

a reservoir of up-to-date knowledge in your area of practice, and just as importantly the person or persons to whom you can refer your client in areas where you recognize you do not have the expertise. Quebec has taken the failure to take continuing education one step further. Such lack of concern can lead to disbarment. It is easier said than done, however. What are the “minimum” educational guidelines governing Realtors, brokers, lawyers, doctors or any other professional? We are so specialized today and perhaps too compartmentalized as well. A court often confuses what an expert witness testifies, with the “expected” conduct of a generalist to whom many of the members of the public rely on and can afford. I personally believe in con-

tinuing education but often wonder that if it is mandatory and not enforced by the professional regulator properly, whether an action should lie against the professional society. The law has evolved in this area as well, in certain jurisdictions. When all is said and done, it appears that especially in bad economic times there will always be work for litigators and yet “vulnerability” for each and every one of us in this demanding and continuing era of consumerism. Donald H. Lapowich, Q.C. Hon. FRGD is a partner at the law firm of Koskie, Minsky in Toronto, where he practices civil litigation, with a particular emphasis on real estate litigation, and acts for professionals including lawyers, real estate agents, insurance brokers/agents and dentists. REM

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Content is king Realty Promoter software

By Larry Easto

he key to a great website is simple – prepare great content. There are five key elements to preparing content that attracts and satisfies visitors. Planning – Web pages are online elements of your overall marketing communications strategy. Like all marketing communications, great web pages do not just happen. They are carefully planned, then prepared and built just as carefully. Assuming that the overall goal of your website is to attract visitors that will ultimately generate new business, the most ideal visitors to your website are search engine spiders, prospective clients and referral sources. The spiders (actually automated robots) visit your site to gather data that will indexed and filed in the search engine’s data base. It is this indexed information about your website that allows search engines to direct visitors to your site. Prospective clients come to your site looking for information about you and how you can help them. Great web pages provide the information that visitors need to consider contacting you. Referral sources are those wonderful people who recommend you and refer their friends and acquaintances to

you. They will draw upon the content on your website to support and enhance their recommendations and referrals. Objectives – For each of these kinds of visitors, your content has a specific objective. In one way or another, your objectives must contribute to achieving your overall goal of attracting visitors and generating new business. As a result, your objectives should clarify what you want your visitors to do after visiting your site. Obviously you will want spiders to take useful data back to the search engine data base. But what about your human visitors...what do you want them to do? Certainly you want visitors to choose you as their agent. But your website alone will probably not achieve that result. A more probable scenario is that your visitors will like your content enough that they will be prepared to contact you to learn more. As for your referral sources, you will want them to recommend you to others. Great webpages will help you achieve all three of these objectives. Keywords – These are the words and short phrases that identify the specific theme or topic for each web page. These are the elements that spiders take back to search engine data bases. They are also the magic tools that help you keep the content of each web page focused and user-friendly. Because of their importance to both spider and human visitors, keywords must be chosen very, very carefully. Content – The best content for human visitors is both informa-

tion-rich and user-friendly. It is not a hard-selling promotional pitch. Preparing great web pages is not all that difficult. The key is to write well about what you know and love. You already know what you know and love...looking after clients. Great web pages also offer a good supply of user-friendly content for search engine spiders – keywords. Use your keyword appropriately in sentences, spread throughout your page. Some experts suggest having keywords concentrated more at the beginning and end of your page than in the middle. Text links – These are critical, but often forgotten, features of web pages. A text link connects a word or phrase to another page on your site. Properly placed, they can turn good web pages into great web pages. These links can add significant value to your website. Graphics – Well-chosen and carefully used, graphics can also help convert good web pages into great web pages. They can help illustrate specific points and elements of the content. They also break huge blocks of text and add interest a screen of text. Without a doubt, you are the ideal person to prepare your web content. You and you alone have the detailed knowledge of how you help clients. Think about how passionately you tell family, friends and anyone who will listen to you how much you love your work. When preparing your web content, remember that the primary purpose of your website is to encourage visitors to contact you. It is unlikely that individual visitors will hire you simply because they like your website. However, with great content, your website can and will help convert site visitors into good prospects – prospects that you can convert into clients. Larry Easto is a best-selling business writer, syndicated columnist and author of four ebooks about real estate marketing. He is also publisher of http://www.real-estate-marketinglink.info.To learn more about preparing the best web content to convert site visitors into good prospects, see http://www.real-estate-marketinglink.info/best_web_content.html REM

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32 REM JULY 2009

A human home security system f you have clients who must leave their homes before they are sold, or even if they are going to return to their home after an extended absence, consider finding them a house sitter. It can provide many benefits for the homeowner. Not only is an empty space hard for many people to envision as home, but they get an entirely different point of view from the sofa in the living room. Aside from appearances, a house sitter provides other benefits. A home that’s occupied is more secure from invasion, fire and the little problems (like a leaky roof) that can develop into major deficits (such as catastrophic electrical failure and structural damage). Homeowner Dorothy Schwartz of Hernando, Fla., says having a house sitter provides “peace of mind knowing everything was being looked after.” For a homeowner, Schwartz says, this means that “if something needs attention it’s going to get it. Mail and the paper don’t have to be stopped

What’s

New Vacant homes may not be insured Agents beware. If your client is moving out before the new owners are moving in, it’s possible their insurance policy won’t cover the home if it is vacant more than 30 days, says Gilbert Carlson, president of UNIRISC Canada. “Every year thousands of homeowners leave their home empty or vacant without understanding the provisions of their homeowners’ policy, and risk everything,” says

(piles of mail and newspapers at the door can alert thieves to an empty house). Garbage is taken out. There’s a car going in and out. In other words the house is lived in and occupied.” Keeping up appearances of a vacant home and unkempt yard might well cost more than a real estate agent is willing to invest. An absent homeowner, meanwhile, is likely spending the money on travel, purchasing a new home and other priorities. Helena Bastedo of Hope, B.C. now has house sitters for the first time but has yet to see them or the house since they arrived. She’s happy already and reports, “The couple minding our house has been excellent – dependable, conscientious, thoughtful – really everything one could want in a house sitter. Furthermore, they’ve involved themselves in our community too and have really enjoyed their experience, which meant a lot to all of us involved.” I asked her where she would look in the future for somebody so reliable. She says, “If the the CREA brochure, What Realtors Should Know About Property Insurance. “In some policies, coverage can be dropped, at least for certain lines like vandalism, in as little as 30 days. Many homeowners that leave their house unoccupied for over 90 days don’t understand they may have no coverage, or reduced coverage, in the event of a peril (like fire) that causes a serious loss.” Insurance for vacant properties has traditionally been difficult to obtain, with companies offering coverage to corporations, but not to single parties, Carlson says. Now UNIRISC offers singleparty agreements, with enrolment consisting of a one- or two-page form with basic information. There is a 30-day minimum insurance purchase required. After 30 days, the fee converts to a daily rate. Vacant property insurance costs about 1.5 to two times as much as regular homeowners’ insurance, he says. Another issue is rental properties that have an absentee landlord, Carlson says. Many insurance companies are no longer offering insurance to absentee landlords, because they are afraid of properties being used as grow-ops in the

same couple was available, I’d bring them back. If not, I’d go to the samewebsite I went to before: mindmyhouse.com.” Whether it’s a client’s home for sale, your second home, a vacation rental or your own place when you’re on holiday, a house sitter helps to keep it insured. Bastedo says, “The house insurance company preferred that we have a reliable house sitter as opposed to someone checking on the house.” Susan Holtham operates mindmyhouse.com from her home in Stokes Valley, near Wellington, New Zealand. She says, “Leaving your property empty for any length of time is tantamount to asking for trouble. Not only is your vacant house far more likely to be vandalized and burgled but your home and contents insurance becomes null and void after your home is empty for 30 (or sometimes 60) consecutive days.” Unlike property managers, caretakers or drop-by services, house sitters generally don’t charge landlord’s absence, he says. UNIRISC also has a policy for absentee landlords. The cost is less than a vacant property product but about 1.5 times more than a typical homeowner’s policy. For information: 1-800-4615048 or www.unirisc.ca.

New site connects agents, resorts ResortAuthority.com is a new Internet-based network of real estate professionals dedicated to helping second-home/resort developers market their developments. Todd Zurcher and James Churches, principals of Organic Marketing Innovations Group, LLC (OMI Group), and founders of ResortAuthority.com, first introduced the concept at the National Association of Realtors Symposium for Resort and Second Home Property Specialists, and they say it has been well-received by real estate agents and resorts. “We’ve been on the developer side of the equation for 15 years, and understand how difficult it can be for resorts to tap into the Realtor

By James Robert Daniels

fees. Tova White’s family owns a working farm outside of Toronto but they’re only there three weekends a month so they have house sitters to care for the property and animals. White pays hydro, cable, phone and gas (which they otherwise wouldn’t keep turned on). In exchange for the sitter’s accommodation and utilities, they have a list of small jobs, like collecting the mail, feeding the animals and putting out the garbage. . . more or less standard house sitting duties. The house sitter gets first right of refusal on the extra work of farm jobs, like gardening, lawn care and housekeeping at competitive hourly rates. Most house sitters are interested in earning some income during their stay, anyway. Some take work in the community as well, which helps to get them involved in the local culture and let neighbours know that there’s a well-maintained property here that may be up for rent or sale, all to the good. As White says, “A good house sitter is priceless!” Sue Fenlon, a sales rep in community in the states where their potential buyers are living,” said Zurcher. “We’ve created an easy way for both sides to gain business they couldn’t achieve through any other means.” ResortAuthority.com established a referral network of real estate professionals from around the world, designed to increase the market reach of participating resorts. The network allows developers to tap into the sales reps in their key feeder markets and gives agents a portfolio of resort developments to sell. Sales reps are eligible for referral fees available to them from the resort developers who are subscribers of ResortAuthority.com’s collection, the company says. Real estate agent members of the network introduce their clients to the collection through new media and traditional marketing channels. The potential buyers visit ResortAuthority.com based on the recommendation of a trusted professional. If they go on to purchase a home at a participating resort, the agent who referred them receives a referral fee directly from the resort. REM

Helena Bastedo

Sue Fenlon

Woodstock, Ont. has been a house sitter on two occasions and has used the services of a house sitter, who she calls “a gem. I’m embarrassed to say she cleaned my cupboards and I returned home to a far neater home than the one I left her with.” She agrees that the obvious benefit is completely satisfying insurance requirements. And she points out the real possibility of something going wrong: “Last year, for instance, during a snowstorm, the exterior vent pipe for my gas furnace got buried in snow drifts and automatically cut off the furnace. The storm continued all night, and I had to go out and dig out the pipe twice, and reset the furnace both times. Had the house been empty, no one would have been here to do that and the pipes could have frozen. That was one of the reasons I found a house sitter this year. “The other big advantage is communication. While I was in Mexico this year I wanted to complete the real estate update course on-line. I could register as long as I had my real estate broker’s license registration number. Alas, it had been left behind at home. I was able to email my house sitter and instruct her where to look for the license registration number, and she emailed it to me.” REM

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34 REM JULY 2009

A guide to commission advances

By Arryn Greenspan

commission advance is a loan that is set up to provide you with funds against your commissions due on a firm deal prior to its closing. Commission advances are personal loans secured against a firm real estate sale to be repaid once the sale has been completed. The process of obtaining a commission advance is quick and easy. Most advance companies just require a copy of the purchase and sale agreement, waivers and a copy of the trade record sheet. This article will clear up some of the obvious and some of the not so obvious assumptions and facts surrounding commission advances. Advantages: Commission

advances can serve a broad spectrum of functions to any real estate professional. Many sales reps use commission advances to regulate their cash flow and increase self promotion and marketing, while others use advances for unexpected personal or business expenses. Something that most agents don’t realize is that the fee you pay to advance your commission may be tax deductable if the money advanced is used for business/operating expenses (check with your accountant to see if this applies to you). While commission advances are more expensive than your existing lines of credit, they are not tying up your lines of credit. Disadvantages: To state the obvious, you are losing a small portion of your commission in the form of a fee the advance company charges you. Notwithstanding this, in absolute dollar terms, the advance fee may not be substantial. A bigger concern may arise should the deal you advanced not close, and you have spent the advance proceeds. You will be

required to repay the loan to the advance company. What should you look for in a commission advance provider? It is important to understand what the companies are, what they offer and how they work. Commission advance companies are secondary lenders (they are not banks) and are advancing money based on a “pre-emptive” receivable. Only once the deal closes does it become a firm receivable. Understand the loan structure: What is the approval process? Will the company perform a credit check? If a credit check is done, this will be recorded in the credit bureau system and in turn may hurt your credit. Does the advance register a public security against your commission account? Again, this may hurt your credit and will be in the public domain. On the other hand, there are advance companies that will simply structure an internal agreement with you and your brokerage office.

What will the advance cost you? What is the advance company’s basic fee charge? Most companies charge a base fee per $1,000 advanced per day. Make sure you find out what additional fees (such as administration, processing, and minimum fees) are being charged. Does the advance company hold back a reserve to cover late payments; and if so, how will this affect you if payment is either on time or delayed? It is important to know the terms of the advance. Is it open or closed? If it is open, is there an early payout administrative fee or is it completely open without restriction? If it’s closed, make sure you understand the terms and what would happen should the sale close early. What deals does the advance company advance: residential resales, commercial deals, leases, new homes, new condos? What restrictions do they apply to the time to close and are there other

funding restrictions? Commission advances are an effective and quick source of funds when done responsibly. Make sure that you diversify your commission portfolio – that you are aware which deals you have advanced and when they are closing. It is advisable to maintain at least one firm deal that is not advanced to protect you, should an advanced deal not close. Avoid advancing a deal that you have concerns about closing. Stay clear of the temptation to max out on an individual advance – if the advance company is offering 90 per cent of your commission and you only need 60 per cent, take 60 per cent. Finally, maintain equity (10 per cent to 30 per cent) in each deal you advance so that funds come to you after closing. Arryn Greenspan is vice-president of AccessEasyFunds Limited, which provides commission advances to real estate agents across Canada except in Quebec. www.accesseasyfunds.com

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36 REM JULY 2009

Three key indicators to pricing predictability By Leon d’Ancona

eal estate is a true and absolute manifestation of the law of supply and demand. Homes will sell for a price that buyers perceive they should pay for it, not what sellers decide they want for it. If you have difficulty with that concept, think about how much your home will be worth when they find just a little nuclear waste in your backyard. Even esoteric matters can influence the price of a home. A house that President Kennedy slept in will command a higher price than the one next to it. In over two decades of provid-

ing real estate statistics to thousands of brokers and agents, a truth has emerged that I see happening over and over again. Sellers and buyers react to what they read. They fail to notice that what they read already happened and has already affected the price of their homes. Instead of reacting to market conditions, real estate consumers respond with too little, too late, if at all. Real estate is the most documented endeavour of the free enterprise system. No other activity gives such complete details about a transaction. Not only do we know the exact price that a home sold for, detailed information is available about all aspects of the sale including the intent of the seller when he first put the house up for sale and subsequent price changes.

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Real estate agents have detailed information about every transaction with which they can advise their clients as to market trends. These precise details are the key to moving with the market rather than following the market. Our society that advocates caveat emptor (let the buyer beware) makes purchasing a bigticket item an adversarial process. Adversaries look at the same thing with different perspectives. While the seller is convinced that his home is an under-priced palace, the buyer looks at the same habitation as an overpriced dwelling that will take fix-up efforts to meet his needs. While it might be said that the buyer and seller behoove each other, it is the buyer who decides the outcome of the transaction. The buyer is the dominant decision maker in the home buying process, to which the seller must subjugate himself. This is especially true in a declining market. Newspapers and real estate agents like to write about a “buyers market” or a “sellers market”. These terms are meant to indicate the relative negotiating strength of each of the parties in the current housing market. Newspapers tend to report the out of the ordinary. The problem with reading about real estate trends in the newspaper is that assuming the author knows as much about real estate as you do (which in many cases is not so), he is regurgitating information read elsewhere, which is usually general, rather than specific. Any real estate agent is likely to have a better appreciation of the market than the newspaper writer trying to meet a deadline. A key indicator that every agent recognizes is days on market – the time it took to sell a home. Even small movements in days on market are significant when taken with the right sampling. If you are tracking 500 homes sold and notice that last month it took

eight days longer to sell a home, the conclusion should be obvious: 1,000 buyers (usually two per home) took an extra eight days to make up their minds. They felt less compelled to make a quick decision. The logical derivative of this slower decision-making is that these people’s perception was

month-by-month basis, especially in the agent’s sphere of influence. Using these three indicators makes short-term market predictability much easier. The challenge of the real estate professional is to be able to give clients a short-term pricing scenario that is realistic, while her sellers or pur-

Real estate is the most documented endeavour of the free enterprise system. No other activity gives such complete details about a transaction. that the market was not as buoyant as the sellers believed. Yet another key indicator that should act as a barometer predicting short-term housing price movement is the “sold-to-asked” ratio. Simply put, it is the ratio of the asking price versus the selling price. If the asking price was $100,000 and the property sold for $95,000, then the sold-toasked ratio was 95 per cent. The logical progression is that a decline in these numbers along with longer days on market, results in a price decline. The next indicator the true real estate professional uses is tracking the average price or median price of homes on a

chasers are relying on data long since negated by the current reality of real estate. I believe that consumers, when educated properly, accept that reality. Sixty-day price predictions are easy and accurate to come by. Leon d’Ancona B.T.L., M.T.L., RRESI, is president and founder of IMS Incorporated, and creator of REality, an online service used by franchises, brokers and agents to improve their bottom line. Author and writer, he is a regular speaker at real estate gatherings throughout the continent, and is well-known for his entertaining, illuminating presentations. Email: Leon@realestatestatistics.com. REM

Keller Williams Canada Is Honoured To Welcome Two New Franchises... “This is a company that believes the agent is at the center of the business, and gives us the tools, systems and resources to operate successful, profitable businesses.” -- David Sachko Sales Representative Keller Williams Energy Real Estate Brokerage Whitby, Ontario - Opening June 2009

“We believe the training and culture of Keller Williams leads to an exciting and encouraging office energy. We all enjoy going to work everyday!” -- Peter Mulholland Sales Representative

Keller Williams Real Estate Services Brokerage North York, Ontario - Opening July 2009

Different by Design This is not your ordinary real estate opportunity 74,175 Associates | 693 Market Centers* To learn more about franchise or leadership opportunities at one of Canada’s fastest growing real estate companies, we invite you to contact us. johnfurber@kw.com | 416.565.3851 © 2009 Keller Williams Realty, Inc. Each office is independently owned and operated.

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*Numbers as of year end 2008

38 REM JULY 2009

Budgeting for home maintenance

By Dan Steward

any home buyers need to be reminded that all homes, old or new, need ongoing maintenance. One way to know the extent of the maintenance needed and the costs to repair and/or replace items is to have a home inspection conducted. A home inspection determines the current condition of the house, offering a report of all the systems and components in need of maintenance, service and repair. Real estate agents can work with buyers to help them to see what issues are most common for older homes, offering the right perspective. Homebuyers need to understand that it’s normal for items in a home to wear out; this should not be considered a defect. For example, consider a home inspection that finds the heating system is old and requires replacement. A home buyer may see this as a huge problem. However, this may be the only item in the home that requires attention. If a buyer

were to look at this situation in perspective, this home could be well above average – a well-maintained home that merely requires the replacement of a worn-out furnace. The key is for sales reps to continuously educate clients. First, sales reps should explain the one per cent rule to their clients. This rule postulates that normal maintenance on a home is about one per cent of the value of the home per year. For example, a $250,000 home would require $2,500 per year to maintain. This would be enough to replace the roof covering, and then a few years later to replace a failed hot water tank, and then a few years more until a new central air system is required. Then there is the three per cent rule. Some experts say that home buyers should plan on spending three per cent of the value of the home in the first year of ownership. This is because new home owners will most likely have to buy drapes, blinds, a washer and a stove, maybe even a new roof covering. Most home components have fairly predictable life cycles. For example, the typical life cycle of a high efficiency furnace is 15 to 20 years. What this means is that most high efficiency furnaces last between 15 and 20 years. Here are a few implications of this example: • A two-year-old high-efficiency furnace is not likely to fail in the

next year. • A 15-year-old high-efficiency furnace is more likely to fail in the next year. • A 20-year-old high-efficiency furnace is very likely to fail soon. • A 20 year-old high-efficiency furnace may continue to function for a few more years. • It is possible for even a twoyear-old high efficiency furnace to fail in the next year; it’s just not very likely. The point here is statistical. If the home is bought with a 15-yearold high efficiency furnace, it may work fine and not need to be replaced for a few years, although the buyer should be aware that it could fail soon. Home inspectors are required to let the buyer know if a component is significantly deficient or if it is near the end of its life cycle (service life). Here is an example of how a home inspector uses the life cycle concept during a home inspection: An air conditioning system looks well maintained, and on testing it was working just fine. From the data plate, the home inspector knows that the air conditioning condenser was manufactured in 1988. The typical life cycle, or service life, of an air conditioning system (compressor) is about 12 to 15 years. In southern climates it’s even less – about 10 years. This system is at the end of its service life. This is

not a defect; it’s just a warning. The air conditioning system does not need to be replaced immediately. It may work for a few more years. Here are life cycles of some of the most common components in a home that you might want to share with clients: • Hot water heater - 12 years • Sink garbage disposal - 10 years • Well pump - 10 to 15 years • Garage door opener - 10 to 15 years

Some experts say that home buyers should plan on spending three per cent of the value of the home in the first year of ownership. • Asphalt shingles - 12 to 20 years • High-end asphalt shingles 20 to 30 years • Cedar shingles - 20 to 35 years • Slate - 50 to 150 years • Modified bitumen flat roof - 20 to 25 years

guide can provide their clients with a range of costs associated with replacements and maintenance within the home. They become an even more valuable resource to buyers when they can put in perspective a normal maintenance issue in older homes and approximately what a repair will cost.

A reputable home inspection company will offer up-to-date repair cost guides. For example,

Dan Steward is president of Pillar To Post. For more information, visit www.pillartopost.com. REM

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Pillar To Post maintains a cost guide area on the web site at www.pillartopost.com. Go to the Real Estate Professional area and select Cost Guide. A brochure version is also available. The cost guide estimates reflect the average basic costs for supplies and installation of building materials in the United States and Canada. Costs may vary depending on regions, upgrades, complexities and disposal fees. Real estate professionals who have easy access to a repair cost

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40 REM JULY 2009

Gen X the “next wave” of recreational property buyers G

eneration X purchasers are poised to replace aging baby boomers as the major force in recreational property markets across the country, says a new report by Re/Max. The report found demand from Gen X (those born between 1965 and 1980) has nearly doubled over one year ago. Seventy-four per cent of markets surveyed this year reported a marked trend toward 30-something buyers snapping up affordably priced product, ranging from waterfront cottages to resort condominiums, compared to just 40 per cent in 2008. “Much of the activity in the marketplace today has to do with the mindset of this particular generation,” says Elton Ash, regional executive vice-president, Re/Max of Western Canada. “More important than the investment aspect is the commitment to lifestyle. The purchase of a waterfront home or a condominium is more than a simple transaction to Gen X purchasers – owning a recreational

HOUSE WORKS

By Steve Maxwell

hen a kitchen fire destroyed the lakeside heirloom cottage of Mike and Alice Ogden in June 2005, they decided to rebuild in a way that blended appropriately with the lakeside setting of their property, while also allowing the new cottage to become a yearround retirement home. They built small (about 700 sq. ft.), and they opted for a composting toilet that posed no threat to the lake

property underscores their dedication to family and balance.” The financial strength of the cohort dovetails well with current market realities, says Re/Max. Sixty-six per cent of recreational property markets surveyed reported a decline in recreational product sold in the first four months of 2009, while 22 per cent indicated sales were either up or on par compared to one year ago. While the combination of inclement weather and a global recession clearly hampered sales activity earlier in the year, many major centres are currently experiencing an upswing in activity as the traditional cottage season gets underway, the company says. “After being priced out of most markets for the better half of the last decade, Gen X purchasers now have the financial wherewithal to buy recreational product at virtually every price point,” says Michael Polzler, executive vice-president, regional director, Re/Max OntarioAtlantic Canada. “Gen X is ideal-

ly positioned to pick up any slack in recreational property markets caused by softer demand from baby boomers and retirees. They represent the next wave of recreational property owners in Canada and they know it.” Re/Max says the time to buy has never been better. With four exceptions, recreational property prices have softened in most major markets across the country. Only on the Newfoundland Coast and in Ontario, from Innisfil to Oro, Kingston, and Beaverton, have values increased this year compared to 2008. Starting prices remain similar to one year ago and in some cases are even higher. “While buyer’s market conditions exist virtually across the board, sellers of recreational properties from coast-to-coast are clearly content to wait out the storm,” says Polzler. “They are in no hurry to unload their product. Many have held on to their properties for generations – they’re fully owned yet underutilized, which has

prompted some aging owners to list them for sale.” The report also found that while lowball offers are on the rise, very few meet with success. Through tough negotiations with multiple sign backs, purchasers who are serious tend to find out the hard way that sellers are serious too. As a result, the sales-to-list ratio remains relatively high in most recreational property markets across the country. “The prospect of greater stability down the road is creating cautious optimism in the marketplace,” says Ash. “Purchasers are seeking to buy quality product, whether it be situated on lakes, rivers, or ponds, before values start to once-again edge up.” The report says supply is adequate in most markets, but heated activity in the lower end has resulted in tight inventory levels for entry-level product in 18 per cent of markets including: Bancroft, Combermere, Honey Harbour/ Port Severn, West Kawarthas,

Orillia, Flesherton, North Saskatchewan and Salt Spring Island. Older cottage owners, many who own their properties outright, are selling to younger purchasers with families, the report says. Some American cottage owners in Canada are taking advantage of the stronger dollar to cash out of the market. American purchasers have largely fallen off the radar, with some exceptions: Lake Winnipeg, Shediac Bay, and Sault Ste. Marie. Pent-up demand is a factor in the marketplace, as those purchasers who had intended on buying recreational properties in the latter half of 2008 deferred their purchases to 2009. The report says older Canadians continue to seek secondary homes in warmer parts of the U.S. such as Florida, Arizona, California and Nevada. It says the upper end has somewhat softened in markets across the country. REM

Composting toilets make cottage sense because it uses no water. I’m the world’s least likely spokesman for composting toilets because of revolting childhood experiences I endured thanks to two ill-designed units we had at our family cottage. But as it turns out, the reality of a growing number of flush toilets in cottage country is pretty ugly, too. This fact has kept me from giving up on composting toilets altogether, and it’s a good thing. While development pressures in cottage country have increased over the last few decades, composting toilets have become a whole lot better in ways that might surprise you. At first glance, composting toilets are not a glamorous product. What else can you say about a hefty, box-like receptacle that sits in your bathroom and processes months worth of human waste right next to the shower? But after 40 years of first-hand experiences

in cottage country – both loving it and fearing for its future – I’m here to make the case for the humble, much-maligned composting toilet. I’m convinced that no other single piece of household technology offers greater promise for keeping cottage country green, and this fact is true in not just one way, but two. No matter how little water a flush toilet uses, it still pollutes water. Lots of it over the course of a year. If the waste system designed to treat toilet water malfunctions in any way, the quality of surrounding lakes and rivers will suffer. Composting toilets, on the other hand, don’t produce dirty water, so they eliminate all risks of contamination. Most of the basic, self-contained models include a heated, ventilated chamber directly below the toilet seat. Waste is stored, dried and aerated there with a roof-mounted vent, drawing

odours outdoors. The result is harmless, soil-like compost that’s removed from a sliding tray every six to 12 months. Larger composting toilet systems include a remote composting chamber that’s well suited to year-round use. Unlike my loathsome childhood experiences, a number of modern composting toilets actually perform like they’re supposed to. Mike and Alice have been using a Swedish-made Mulltoa 60 for the last three years, and they’re completely pleased with its performance. “It’s worked perfectly,” says Mike, “even when we’ve had a bunch of guests camped out in the yard and coming in to use the bathroom. There’s been no odour, no leakage and nothing to threaten the lake.” Another drawback of flush toilets in cottage country is the disruption involved in creating a traditional septic system to treat all the polluted water they create.

This often means cutting down at least 1,000 sq. ft. of forested land (sometimes much more), then hauling in truckloads of fill to create a raised weeping bed. This is where partially purified water trickles through the soil to clean it up. Besides costing many thousands of dollars, weeping beds are always visually devastating in a forest landscape. That’s the second reason composting toilets make sense. Weeping beds need to be seeded, mowed and kept free of trees and bushes forever. “We simply weren’t prepared to cut down the forest next to our cabin just so we could have a flush toilet,” says Mike. “That would be wrong.” Steve Maxwell is Canada’s awardwinning home improvement expert, and technical editor of Canadian Home Workshop magazine. Sign up for his free homeowner newsletter at www.stevemaxwell.ca REM

42 REM JULY 2009

THE UN-COMFORT ZONE

By Robert Wilson

know an advertising agency owner who never fully takes a vacation. He takes his family to fairly exotic locations, but never so alien that they are outside the reach of modern communication. In other words, he is never further than a cell phone call or email away. He checks in with the office several times a day – much to the chagrin of his family, who want him to be fully engaged in the holiday at hand. So, he ends up sneak-

GREEN REAL ESTATE

By Elden Freeman

ew environmental standards are coming in all of North America’s biggest industries. With the effective nationalization of a large chunk of America’s automobile manufacturers (and a corresponding investment in Canada by our federal government), policy makers have made it clear that guidelines and potentially new regulations will be implemented in the auto industry. In this and other areas of business, Canada’s government has said that it will follow America’s lead. Personal transportation is one of the mainstays of this continent’s economy, and it contributes to a great deal of each individual’s

Keeping the ball rolling ing off under the guise of visiting the restroom, or going to the bar for a cocktail, in order to connect with his staff, a client or a prospect. His wife and kids aren’t fooled; they just sigh and accept the inevitable. I used to think he was a control freak – someone who couldn’t let go and let someone else take over – until I came to understand the concept of momentum. In science, momentum is equal to mass times velocity. Or just think of Indiana Jones in Raiders of the Lost Ark, running as fast as he can out of the tunnel while that huge stone ball rolls faster and faster after him. In business, momentum is the point at which success begins to come easily. Business veterans jokingly refer to it as having “paid my dues.” In short, momentum is an accumulation of acquired knowledge, skill, experience and connections. And,

those who understand it also know it can be fragile and easily lost. Sales professionals who have achieved momentum will tell you that you must pursue a number of activities to generate sales leads: phone calls, emails, sales letters, networking events, and so on. You keep it up building dozens, then hundreds of leads at a time. Then to convert those leads to sales, you keep following up on each of them in a timely fashion. Meanwhile, you are still maintaining all the activities that continue to generate leads. So between generating leads, following up on leads, then turning leads into sales, you begin to feel like the guy in the circus who spins plates on top of poles – rushing from one plate to the next to keep them spinning. No wonder these folks hate to take vacations – it breaks the momentum they’ve spent months or years creating and they know it

takes time to get it going again. Years ago when I first started giving speeches, a seasoned professional speaker advised me, “It took me 10 years to quit sweating cash flow, but even so, it is still all about non-stop marketing.” In other words: maintaining momentum. For a growing company, momentum is the point where you have done enough advertising, marketing, public relations, networking and customer service that business begins to flow. It is the point where you are garnering the precious and often elusive word-ofmouth referrals. Momentum is about building a reputation. Acquiring it, however, doesn’t mean you can taper off on your efforts... but it does mean that your efforts will become easier. The best thing about momentum is that once you get it, motivation becomes self-perpetuating. Momentum is energizing. It keeps

you on your toes. And, the rewards come quickly and regularly. I have found this to be true in all pursuits. Even when I am writing fiction there is always a certain point in a novel that it takes on a life of its own and demands my daily attention, energy and focus until it is complete. Unfortunately, nothing quite puts the brakes on momentum like finishing a book, or completing any other major task. The trick to avoid losing that momentum is to begin another book or another task before you complete the first one. Then you just shift your energy over to the next project that is already under way. Robert Evans Wilson, Jr. is a motivational speaker and humourist. He works with companies that want to be more competitive and with people who want to think like innovators. www.jumpstartyourmeeting.com. REM

‘Green’ certification will enhance business impact on the environment. But where and how we choose to live in our homes has as significant an impact as how we get from place to place, and while much attention is currently focused on new developments in automotive business, technology, and regulation, similarly revolutionary changes in awareness and practices are coming to the real estate business. Though Canada has yet to implement a complete plan for regulating environmental and energy efficiency standards in the home, a wide variety of incentive programs across all levels of government shows that the first steps toward a comprehensive ecological rethink of how consumers and businesses think about the home are underway. The period we are in right now can be confusing to those who haven’t studied up on all the rebates and programs available, as well as the best practices in construction and building certifications for both new and old homes –

not to mention corresponding equivalents in commercial real estate. Countries such as Britain and Germany lead the way with their comprehensive, easy to use and understand home emissions regulation. While Canada will probably adopt a similar system in the future, real estate practitioners need to be ahead of the curve in order to position themselves as leaders in this new field of awareness, and educate themselves in order to adapt and take advantage of a changing marketplace. In addition to the National Association of Green Agents and Brokers’ current educational and certification initiatives, NAGAB is introducing the Corporate Greenrealestate Leaders program to recognize those real estate boards and businesses focusing on their environmental impact by adopting sustainable practices in their day-to-day business. In addition to generating their own savings and reducing a business’ ecological impact, one of the strongest

arguments a Green Agent can make in favour of making a home more energy-efficient and earthfriendly is that those same practices are used at his office. As well, in a period when so many companies try to brand and position themselves as “green” without much substance behind their claim, being able to list in detail the environmentally friendly practices of your organization both burnishes the organization’s reputation and contributes to educational outreach toward the client. When clients see that businesses understand how ecologically sound practices also save money, this encourages them to make their housing more ecofriendly and to adopt conservation habits that are more environmentally sustainable. The Greenrealestate Leaders application process is straightforward. Certifications are graded turquoise, jade, and emerald, in ascending order according to company commitment to sound ecological practices. NAGAB also

publicizes certified organizations in order to promote awareness about organizations that pursue green policies in their workplace. This includes listing in the NAGAB Greenrealestate office index, listing on the association’s homepage, inclusion in email newsletters, and lobby certificates and window decals for promotional office display. For more information about how to green your organization or practice, and to apply or find out more information about the Corporate Greenrealestate Leaders program, visit www.nagab.org. Elden Freeman B.A., M.E.S, broker is the founder and executive director of the non-profit National Association of Green Agents and Brokers (NAGAB). Freeman says he believes that Realtors across Canada can play an important role in educating their clients on increasing energy efficiency and reducing greenhouse gas emissions. (416) 5367325; elden@nagab.org REM

Assist-2-Sell franchise owners say low-commission-plus-full-service approach wins business and meets challenges of real estate's future. Written by: Marcie Geffner freelance real estate reporter, writer and blogger

Lyle and Sandy Longridge were no different from countless other real estate agents who sell property across Canada. That is, until last August, when the dynamic husband-and-wife duo decided to open up the country's newest Assist-2-Sell® franchise. Their new company, in New Westminster, B.C., opened for business in October, and today, Sandy Longridge calls the couple's choice "the most exciting and fulfilling" decision of their careers. "We wanted to run our own show and be our own boss," she says. "We wanted to do something that we could believe in." The Longridges settled on Assist-2-Sell after almost a year of research because they admired the company's business model, which is built around giving home sellers and buyers exactly what they want in today's housing markets: Flexible commissions and superior service. "Real estate is changing," says Lyle Longridge. "The traditional model is not going to survive in the same form as it is now. Assist-2-Sell is a great way for us to position ourselves for that future and those changes." Assist-2-Sell's mission is to provide home sellers substantial savings and professional reliable representation throughout the homeselling process. Owning a franchise offers real estate professionals an opportunity to start and run their own business, effectively manage a significant volume of transactions and still provide the full service that sellers and buyers want and need. Assist-2-Sell: "Best Model in the Business" Many brokers are understandably leery of discount companies that offer home sellers lower costs and less service. But the Longridges discovered that Assist-2-Sell takes a radically different and far superior approach to the conundrum of lower commissions and better service. "The Assist-2-Sell full-service, low-fee commission structure is a big deal," Sandy Longridge explains. "It opens up options for home sellers. They're impressed because they have choices and love that it is not do-ityourself." The Longridges liked the fact that Assist-2-Sell isn't just about low commissions: It's also about good service. While the company's commission model can attract more business and assure significant discounts for home sellers, full service is still the key to the company's success. "For example, sellers like being kept in the loop," his wife adds. "Assist-2-Sell has a million and one great ways to keep people up-to-date, and it's not just at the beginning of the transaction and the end, but all the way through the entire process."

Mayor Wayne Wright cuts banner and welcomes new Assist-2-Sell office to New Westminster. Assist-2-Sell Begins With Fresh Approach Assist-2-Sell was founded in 1987, when Mary LaMeres and Lyle Martin left a traditional real estate brokerage behind in search of a better way for consumers to sell their homes. They developed an innovative model that gives sellers all of the services they need, along with a low flat fee. They soon discovered that the model also had strong appeal for home buyers, who appreciated the large selection of competitively priced homes offered through Assist-2-Sell s exclusive home listings database in addition to MLS listings. The response to this consumer-friendly model was immediate and significant. Since LaMeres and Martin opened the first office in Reno, Nevada, Assist-2-Sell has grown to more than 400 franchise offices in 44 U.S. states and six Canadian provinces. Over the years, Assist-2-Sell has been recognized as one of the fastest-growing and most successful real estate franchises, a testament to the efficacy of the low-fee, full-service real estate service model. The model is even featured in the company's business-winning slogan: "Results with Savings!"® Their track record of growth and success really impressed Lyle and Sandy Longridge. "We tried hard to poke holes in the Assist-2-Sell model, but we couldn't find any," Lyle Longridge explains. "We really thought Assist-2-Sell was the best model in the business because it gives people a break on the commission without compromising service."

"We've seen so many problems with other discount agencies," Sandy Longridge adds. "Assist-2-Sell has taken the good qualities of the discount model and the good qualities of the traditional model and put them together. It's a model we believe in and feel really positive about." Brokers Learn Secrets of Success LaMeres and Martin continue to play a vital role in Assist-2-Sell's success and growth. Nearly every month, they personally train new franchise owners who travel to the corporate headquarters in Reno, Nevada. They continue to teach these training classes because they love sharing their ideas, methods and experiences, and they enjoy being part of each new franchisee's success. Lyle and Sandy Longridge recall their trip to Reno with great enthusiasm. "We got a ton of tips that we've used in our business," Sandy Longridge says. "We picked up a lot of ideas from Mary and Lyle in the class that you can't get through reading a book. It comes from their experience of what works and what doesn't." That experience continues to shape LaMeres' and Martin's efforts to make the Assist-2-Sell model even better and even more responsive to the needs of today's home buyers and sellers. "You can spend thousands of dollars just to find out what doesn't work," Lyle Longridge says. "But they've already adjusted the Assist-2-Sell model, worked out the kinks

and shown us what works. We bought into their plan and everything that came with it." Assist-2-Sell Model Works in Canada Assist-2-Sell first came to the Longridges' attention when a franchise office opened in nearby White Rock, BC and quickly won a significant number of listings throughout the area. "We were nervous about a discounter coming into our market and taking our business," Lyle Longridge recalls. "But then we looked at the model, and we couldn't find any flaws in it." "If you can't beat 'em, join 'em," Sandy Longridge chimes in with a laugh. "The owners of the White Rock franchise have been generous with their support and advice on how to apply the Assist-2-Sell model to the Canadian market," she adds. "We talked to other Assist-2-Sell brokers in the U.S. and Canada," she says. "They are all very supportive. You really are part of a team!" The Longridges say they weren't concerned about the fact that Assist-2-Sell is based in the U.S. The company is well-established and has offices in Canada that are doing well. The Longridges are so committed to Assist-2-Sell that they've purchased the building that houses their new office, he adds. "We plan to be here for a long time."

For information on franchise opportunities, call 800-528-7816 or visit BuyAssist2Sell.com.

44 REM JULY 2009

Staff at Sutton Group – West Coast Realty in Victoria raised $5,000 for a school playground.

Good Works M

ay 23 marked the first annual Royal LePage Shelter Foundation National Garage Sale for Shelter. More than 90 Royal LePage offices and 120 clients participated, holding local garage sales across Canada. Early in May, Royal LePage offices started collecting used items from colleagues, clients, friends and family members. Many brokerages personalized their sales with the addition of hand-made jewelry

and bake sales. The self-titled “little office that could” Royal LePage Lakes of Muskoka (with brokers Jay Richardson and Stephen Leonard) in Dwight, Ont. turned their office into a massive garage sale including tents, live music, hot dogs and an antique fire engine. The office raised $1,800 to support their local shelter. The turnout was so large and enthusiastic that the porch of the building collapsed from the weight of

Above: A golf tournament supported by Sutton Group Preferred Realty in London, Ont. has raised $92,000 for local medical charities during the last six years.

Royal LePage Lakes of Muskoka had so many people at their sale that the porch of their building collapsed.

The Slave Lake sale organized by Royal LePage Progressive Realty was held in a local curling rink.

Coldwell Banker Horizon’s Big Bike team. The Royal LePage Northshore cheque presentation to Sage House. From left: Vera Holman, chair of the fundraiser and sales rep at Royal LePage Northshore; Laura Reynolds, acting executive director, North Shore Crisis Services Society; and Bill Binnie, broker/owner, Royal LePage Northshore.

A group from Coldwell Banker Johnston Real Estate in Edmonton recently took part in a Habitat for Humanity build in St. Albert. The group helped build a duplex that will be home to two deserving families. Coldwell Banker Johnston team members for the Habitat for Humanity build, from left: Lisa Brown, Sheldon Johnston, Ann Johnston, Sara MacLennan and Nathan Mol.

The Niagara Association of Realtors (NAR) recently took part in a challenge to mark the 90th anniversary of Community Care of St. Catharines & Thorold by raising $90,000 and 90,000 pounds of canned food in 90 hours. From left: Angela Higgins, NAR president-elect; Al Hines, NAR president; Phil Porter, St. Catharines Transit; Betty Lou Souter, Community Care; and Tim Denis, 610 CKTB, who camped out with Porter in a bus shelter at the Pen Shopping Centre for 90 hours.

REM JULY 2009 45

the crowds, but everyone kept smiling and the band played on. In Slave Lake, Alta., Royal LePage Progressive Realty raised more than $4,000 for its local shelter. In a community with a population of just 8,000 people, the office embarked on a major fundraising challenge, which included RCMP dunk tanks, a petting zoo and barbecue. Funds supported the Northern Haven Women’s Shelter. Royal LePage Prime in Winnipeg raised more than $11,000 for Osborne House. The office staff filled three large storage bins to the brim with unique sale items including pianos, dining room sets and couches. After raising $35,000 for Sage House, Royal LePage Northshore in West Vancouver added another $1,605 at its garage sale event. Sage House is a safe house for women and children fleeing domestic abuse. Nationally, the event raised more than $120,000. ■ ■ ■

Sutton Group - West Coast Realty in Victoria became involved with the Adopt-aSchool program last spring. The first school they chose to “adopt” was École Shoreline Community Middle School. The school required funds to complete their community playground. Lynn Van de Kamp, the office manager, says, “As of March 1, we reached our objective of raising $5,000 to complete the Shoreline Community playground.” The office raised funds by collecting monthly personal contributions from the sales reps. They also held a barbecue fundraiser. Blake Moreau, a sales rep and Adopt-a-School committee member, says the initiative “is one of the most important things we do in our business as it shows our clientele we care and value the community…programs like this go beyond real estate; it is about building good foundations in the community.” ■ ■ ■

The Coldwell Banker Horizon Realty team of Kelowna B.C. recently raised $2,485 in the Heart and Stroke Foundation’s Big Bike rally. The event promot-

ed the importance of heart health in communities from coast to coast. The team’s contribution helped toward raising more than $7 million for heart and stroke research. This year Coldwell Banker Horizon received a charity fund-raising award for “most online funds” and last year the company won the Spirit Award. ■ ■ ■

Broker Stan Franjkovic and sales rep Lesley Hailstone of Sutton Group - Preferred Realty in London, Ont. were inspired to turn their energies to their local community after suffering the devastating loss of their son, Michael Franjkovic, due to a car accident in 2003. Bryan Wiersma, a close friend of Michael, passed away a month earlier when he lost his battle with cancer. Together, parents, family and friends started the Michael and Bryan Memorial Golf Tournament dedicated to the two young men. The tournament is now in its sixth year and has raised $92,000 to date, benefiting the Parkhill and North Middlesex Medical Centres, Strathroy Middlesex General Hospital and the Cancer Research Institute at the London Health Sciences Centre. This year’s tournament was scheduled for June 20, with a goal to reach the $100,000 mark. “We are expecting a full house, with 144 golfers, to have fun while helping the community at the same time,” says Franjkovic. “Helping others has always been a part of our lives and we encourage other Realtors to do the same.” ■ ■ ■

Sales reps at Re/Max Kelowna raised $4,200 at their annual Yard Sale for the Cure recently. The event encourages Canadians to hold a yard sale and donate the proceeds to help in the fight against breast cancer. Proceeds are donated to the Canadian Breast Cancer Foundation. “The response from the community was wonderful. Our office was full to the rafters with items donated by our sales representatives, their clients and the public. Our entire sales force really pulled together for this event,” says Cliff Shillington, broker/owner of Re/Max Kelowna. REM

46 REM JULY 2009

THE GUEST COLUMN

By Jamie MacMaster

ith the worn peaks of New York State’s Adirondacks quite visible on any clear day, it is difficult for Glengarry, Ont. folks to ignore the presence of our neighbours to the south. But proximity notwithstanding, my forays into “Merica” have been decidedly few: an occasional ski trip, a few days wandering the Presidential Range in New Hampshire and an evening or two watching the bears circling barbecue pits at a Vermont resort – all would fall into the category

Land of the free, home of adults of jaunts as opposed to excursions. And with the exception of Mike and Nadine from Minnesota who we met on vacation a few years back and who have become our great friends, my interactions with Americans have been few, fleeting and mostly of the business type. So it would be safe to say that until a few weeks ago, my image of Americans had been constructed almost entirely upon the suspicion that when it came to Yanks, the bed-wetters at CBC and the Trawnah Star were probably once again serving us up their ovine political ideology as a substitute for independent thought, analysis and accuracy (remember, Preston Manning was “scary”). I suspected that the “culture of the gun” was just as firmly entrenched on the streets of Scarborough as it was in Harlem, and the average Canuck wouldn’t fare out any better in a street interview about peculiari-

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ties of the USA than Rick Mercer’s hapless Yankee victims did when quizzed about the supposed state of affairs in our Great White North. So when yours truly and business partner ‘Jom’ Picken loaded up the truck with assorted dead deer parts, lumber and business propaganda, and struck out for 10 days among the natives in Harrisburg, Pa., the idea that I

Miller retching in the aisles. A middle-aged Amish (maybe Mennonite) lady handed a hunting rifle over the counter to a complete stranger, who worked the action, sighted through the scope at a sparrow up in the ceiling trusses, and then plunked down his credit card and strolled to the parking lot with his new steak-maker. In the archery arena, scores of 12-year-olds

would dare to hand out homesmoked venison to his guests. And while you’re at it, what about the hotel chain itself? But it was the thoughtful words of a gentleman from Virginia, who pulled up a seat in our booth during a quiet spell one afternoon, which came closest to putting a finger on the difference between “us” and “them”. He listened while I told

With my apologies to Maude Barlow, Mary Walsh and Jack Layton, I searched high and low but I couldn’t find a single drunk, let alone a right-wing militia or a lynching. would be laughin’ and scratchin’ with my redneck cuzzins made me just as happy as the prospect of luring some of them north next fall to spend some Yankee bucks on Canadian bucks. I tell you, Harrisburg was an eye-opener. The Eastern Sports Show bills itself as the largest event of its type east of the Mississippi; over a million people pass through the State Farm Show Complex over nine days to take in the wares showcased by 1,200 plus exhibitors. Bass-boats, bullets, barren-ground caribou and beer…lots of beer; the dozen or so bars in the huge show halls opened at 11 am. Now you’d think that this would be a recipe for disaster with all those rednecks fuelling up on rifles and rot-gut. Nope. With my apologies to Maude Barlow, Mary Walsh and Jack Layton, I searched high and low but I couldn’t find a single drunk, let alone a right-wing militia or a lynching. Tens of thousands strolled past our booth with beer bottles or Jack Daniels in hand, but there wasn’t a raised voice, broken bottle or a fist fight to be found. The scene in the gun hall would have Trawnah Mayor

whistled arrows into the vitals of deer targets with deadly accuracy, and later on their parents shook their heads in disbelief and exclaimed, “But that’s just plain stupid, look at the money your government’s losing,” when we told them that, so sorry, they could come up and hunt in Ontario, but their young’uns couldn’t. But the one scene that drove home the fact that we were truly in a country where adult decisions and actions were encouraged, took place in the restaurant lobby of the hotel complex where we stayed. We were standing in line waiting to be seated, when the restaurant manager came up to us with a tray of hors d’oeuvres and asked us if we wanted to try some. We took him up on his offer, and, while sampling the smoked delicacies, asked him what it was. “Oh, my assistant manager and her husband are big hunters, and every year they do up some deer and elk for you folks that stay here during our Sports Show.” Now I invite you to speculate on the probable fate of a restaurant manager at the Sheraton or the Holiday Inn in Mississauga who

him about the land confiscations, our insane gun laws and the crippling effects of the incestuous relationship between our governments and environmental NGOs that our rural population was enduring. He shook his head in disbelief, not that he didn’t believe it was happening, he couldn’t believe it had been allowed to happen. “But men wouldn’t put up with that. No, men don’t put up with that.” In a way, I think he had it right. Because a rural population that demands spoon-feedings of subsidy cheques, supply-management security blankets, and blindly accepts stewardship program soothers in lieu of real compensation, is probably quite content to let Mommy Government handle all the grown-up stuff: rifles, beer, smoked venison and property rights. Jamie MacMaster is a real estate salesperson with Rickerd Realty in Glengarry County, Ont. He is a director of the Ontario Landowners’ Association and owns a hunting/outfitting business. www.uppercanadaoutfitters.com. REM

REM JULY 2009 47

Trade Shows and Conferences For complete listings, visit www.remonline.com To add a listing to this calendar, email jim@remonline.com Sutton National Conference 2009 September 16 – 18 The Fairmont Royal York Hotel Toronto conference@sutton.com The Oakville, Milton and District Real Estate Board Halton Symposium and Trade Show Thursday, September 17 Oakville Confernce & Banquet Centre Oakville mls@omdreb.on.ca La Capitale Real Estate Network Annual Convention September 22 – 23 Levis Convention Center Levis, Que. France Masse – 1-800-3636715, ext. 312 fmasse@lacapitalevendu.com Century 21 Canadian Conference 2009 September 25 – 27 Vancouver Exhibitor inquiries: pinpin.luk@century21.ca Realtors Association of Hamilton-Burlington Realtors without Borders Conference & Trade Show Thursday, October 8 Hamilton Convention Centre Hamilton, Ont. Sheila Sferrazza sheilas@rahb.ca

WinnipegRealtors Technology Conference and Trade Show Wednesday, October 14 Victoria Inn Winnipeg Lucy Hajkowski – lhajkowski@winnipegrealtors.ca www.wrexpo.ca Realtors Association of Edmonton and the Edmonton Apartment Association Suites and Homes Trade Show Thursday, October 22 Northlands - Hall E Edmonton Lixmila Serrano – specialevents@ereb.com The Peak Experience Re/Max 26th Annual Canadian Conference November 5 – 7 Fairmont Banff Springs Banff, Alta. www.remax-western.ca/banff/ National Association of Realtors 2009 Realtors Conference & Expo November 13 - 16 San Diego, Calif. www.realtor.org

Compiled with the assistance of Bob Campbell at Colour Tech Marketing, www.colourtech.com

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48 REM JULY 2009

AS I SEE IT FROM MY DESK

By Stan Albert

an Plowman is the team leader of 17 real estate professionals with Re/Max Rouge River, serving Toronto, Pickering and Ajax. He is also a team systems trainer, showing other successful sales reps how they can build their own successful teams. We recently sat down for a conversation about teams. Stan Albert: Dan, the two things that have shaken our industry in the past decade or so are T and T – technology and teams.

Building a real estate team Dan Plowman: Technology and teams are very important. I also believe advanced marketing techniques and having the right people are equally important. The real power comes from understanding how to leverage people, technology and marketing. Our team systems provide a clear path, sharing proven results with other team leaders so they too can excel their business. Albert: I’ve addressed this subject in the past, but I see what tremendous success you are having, sharing the ideas of forming teams and the mechanics necessary to do so. Plowman: I know that as we continue to grow, a large reason for our success is quite simply that we share with others. The more we give – the more we get back. I love seeing people grow and succeed. Albert: What made you decide to go into real estate in the first place? What was your business background? Were you a success as

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an individual agent? Plowman: I had a successful heating and air conditioning company and was able to understand the power of leverage at a young age. I loved the sales part of that business. This is why I had an interest in real estate. I did very well as an individual sales rep but found little time left for a life. This balance was created after developing the proper team model. Albert: What format did you take on at first? Was it 2-3, buyer’s agent? Plowman: I believe hiring buyer’s agents or licensed assistants does not make sense. A licensed sales rep should be able to focus on Realtor activities and the more we are able to put sales reps in front of clients and eliminate a lot of the tasks that disallow time spent with people, the more a licensed sales rep will achieve. A team leader’s focus should be to maximize Realtor/client opportunities. Albert: Why did you decide to do this? It’s not a novel idea, others have tried it and been successful and yet others have failed at it. Plowman: I believe it is easy to fail when starting to build a team. You can streamline success in any aspect of life by following other causes that lead to a desired effect…it is that old law of cause and effect. If you desire an outcome, find another person who has consistently been successful and you too can expect a similar outcome if you follow the same steps. Many of our coaching clients are following our team building systems and experiencing drastic growth while avoiding costly mistakes. Albert: Do you hold regular meetings? Plowman: Yes – meetings with focus and purpose are important. Without them we tend not to communicate as one cohesive unit and therefore fail to take advantage of the strength in our numbers. Albert: I’ve found that most great agents don’t make good managers of teams. What’s the basis of your success? Plowman: The spirit of a great agent can be summarized as a great entrepreneur… and entrepreneurs, in general, do not make great managers. Management is an art.

Managers are charged with the tasks of attending to details and accountability. A good manager has a strong focus on where waste is occurring and is best described as a bottom line thinker, whereas entrepreneurs are sales driven. Entrepreneurs are driven by their own vision and goals and are most often great leaders as a result. The acceptance of this led me to understand the need for a strong office manager. But more importantly, it led me to understand the importance of allowing myself to be held accountable to this person… my son, Michael. Albert: How hard was it to find the “right mix” of agents? Plowman: It is and should be a constant focus of a team leader. We are always looking for great talent. Albert: Whose help did you enlist, or did you have prior experience in building a business, which essentially is what team leaders do, right? Plowman: I have a strong background in business, but to further myself these days, I find only the very best people. To some, it is intimidating to hire or recruit someone with greater skills in a certain area but the truth is that you prove that you are smarter than someone when you hire or recruit them. I have also found great success in hiring and recruiting the best and getting out of their way! Albert: What was the most difficult task in building the team? Plowman: Staying far enough ahead to motivate but close enough to the front lines to relate with them. Albert: How do you keep them motivated in an economy that’s not exactly coming out of the doldrums right now? Plowman: 1. Overwhelm them with opportunities and new business with strong lead generation. 2. Remind them to stop watching the news. Albert: Do you find that the consumer wants to talk only to you, and when that happens, which I’m sure it does, and you’re busy, how do you handle this challenge? Plowman: This is a very common challenge for a team leader. I can remember asking myself, “Why will they not deal with my

Dan Plowman

assistants?” And in time, it became clear – my clients use me because they trust me and they trust my judgment. The very term, assistant, denotes “less than.” I was telling my clients that I have someone less than me for them to use, then trying to convince them to work with them. It was ridiculous – would you let your lawyer’s assistant defend you in court? Nor would your clients accept any less than the standard that you represent. They are not your assistants, buyer agents or employees. They are your partners. If you expect them to perform as an equal they must be treated as an equal – they are your partners! Once I started communicating this to team members and clients, it was amazing how quickly the issue was solved. Albert: Are consumers totally happy that they may not see you from beginning to end? Is that is the case at times? Plowman: This is one of the greatest team building myths. The truth is that your clients are not loyal to you. They are loyal to the standards of service that you represent. As long as my partners are communicating that standard of service, my clients are just as happy… this is why training is such a constant focus for a good team leader. Proper training not only offers me a sense of extreme fulfillment, it also ensures that my partners are reading out of the same playbook. Albert: How many of your team are licensed and how many are admin people? Can you give

REM JULY 2009 49

me a breakdown of how you pay them? Plowman: We have 16 licensed team members and 10 of them are selling in the field… we also have another five unlicensed staff members to make a total of 21 team members. Our system of paying and compensating is considered to be one of our secrets to success. I can tell you it involves profit sharing and bonuses above and beyond commission and regular wages. Albert: I am sure you set goals each year as you expand your team, so do you offer any incentives if they reach your mutual goals? Plowman: Profit sharing is the big one but we also offer a monthly lunch that we pay for if the team hits the monthly goals. Albert: Why are you now

A FUNNY THING HAPPENED

By Dan St. Yves

know that as a motorist, you’re generally supposed to obey posted speed limits. It’s just common sense, and responsible behaviour on the road. But once in a while, you get distracted or perhaps find yourself running a little late for an appointment – and bingo! An eagle-eyed officer of the law standing behind a convenient bit of roadside shrubbery, radar gun trained eagerly on your vehicle, nabs you. This scenario is so effective, even TV’s Corner Gas featured a modest shrub, to assist the two Dog River police officers with concealing their own small-town Saskatchewan speed trap. We’d get a whole lot fewer speeding tickets if we de-shrubbed the roadways. Over the years, I will admit to having been moderately “distracted” on occasion, and picking up the odd ticket. I’m never happy when it happens (totally rarely, I swear), but eventually I reconcile with the fact that the radar officers are just doing their job, and I wasn’t bright enough to buy a radar detector

offering courses on how to develop teams? Have you ever thought to put your seminar before RECO for a credit course? I feel that this seminar has real “meat on the bones” for agents to increase their incomes. Plowman: We are trying to create a more professional environment for Realtors and yes we are looking into offering credits. Albert: Would the team format be a good place for newcomers to the business to join up with? Plowman: Yes. Team systems combined with training streamlines one’s ability to accelerate their learning curve and also provides continued support. A good team model also eliminates a lot of the risks they would otherwise face on their own Albert: What is your credo for

success in your venture into team building if you’d like to share it? Plowman: “In the future, every Realtor will have to make a decision – do you want to start a team, or do you want to join a team? This is the future of real estate.” Albert: Last but not least, how do you make time for family and what’s your best advice? Plowman: My daily commitment is to family first. I make time for business. Stan Albert is celebrating his 39th year in active real estate, and is with Re/Max Excellence in Woodbridge, Ont. He serves on committees at RECO and at the Toronto Real Estate Board. He is an established trainer and business consultant and can be reached at salbert@trebREM net.com.

‘Signs’ you are going too fast before blazing by their cruiser. On one occasion several years back, I had a memorable moment in the company of a diligent guardian of the roadways. When I first became a real estate agent, one of the many methods I used to promote my services was self-sticking car signs. With today’s technology, you can literally shrink-wrap your car or SUV in full-colour ads and pictures. You’ve probably even seen some of the many businesses (real estate included) that do that now, and resemble a billboard on wheels (some vehicles look more like a billboard that’s been leased out to a mad scientist advertising agency, but to each their own). Back when I wanted to do that, to advertise on your car you either had to spell out your name and phone number with masking tape on your car windows, or spring for a magnetic sign that you could place on your car door. The option I chose (after struggling to make my masking tape letters legible) was a clear vinyl sign that magically stuck onto my windows. I had three altogether – two on the rear passenger windows, and one along the top of my rear window, to solicit any potential buyers or sellers following my vehicle. Only once did someone ever

follow me across the entire city of Kelowna, trying to get my attention, while I drove on oblivious to their efforts. Peter Falk’s Columbo I am not. One afternoon, running “a little late for an appointment”, I noticed a gentleman in a hat and some sort of uniform motioning for me to pull over. He turned out to be a police officer, on radar duty. Seems I had indeed been a tad hasty en route to my destination. Not like breaking the sound barrier hasty, but pretty hasty nonetheless. Waiting for the officer to write me up a stern warning, I noticed how well set up his spot was. The shrubbery along the road perfectly hid his position. When he came back to the car and handed me a ticket instead of a warning, I grumbled a bit, but remarked on how well he had chosen his place to set up shop for the day. He smiled, and said: “Well, sir, my job is a lot like yours. If there’s one thing that’s VERY important, it’s location, location, location”. At least the signs got noticed. Humour columnist and author Dan St. Yves was licensed with Royal LePage Kelowna for 11 years. Check out his website at www.nonsenseandstuff.com, or contact him at ThatDanGuy@shaw.ca. REM

50 REM JULY 2009

A Canada Day quiz

THE PUBLISHER’S PAGE

cation and now I am too old to even get any points for age. (You get 10 points if you are between 17 and 49. You can look it up). I am so grateful to be here. I cannot understand how some immigrants today do not seem to appreciate the incredible gift they have been given to live here. This is not a perfect country. But we are provided with the very foundation necessary to improve it. We have the freedom to gather and talk and vote to change things. How anyone could possibly not think this is the best country in the world is beyond me. I shake my head when I hear of people who don’t think that. I am also saddened to see so

By Heino Molls

MARKETPLACE

t’s Canada Day, a big day for me. I have written many times that I immigrated here in the ’50s. This day is especially significant because I know that I would never get into this country under the point system that the government has in place today. I don’t have enough money or edu-

many people, particularly young people, who do not know even the most basic general knowledge of this country. When I think of how many people who were born in this country fly to the Caribbean or Florida or Europe on holiday, yet make no attempt to see this beautiful land, I find myself near tears thinking of what they missed. I believe with all my heart if you were born in this country and you have not personally visited every single province in Canada by the time you are 50, then it is high time you hit the road. When I became a citizen I had to pass a general knowledge test about Canada. I do not know if they still do that test but I wonder

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if you would like to try one out and see just how much you know about the greatest country in the world. Do you think you know Canada? Well then step up and give it a try. Some of these questions are the same ones I remember from my citizenship test. They are pretty easy. The answers will be on REM’s website on July 1. 1. Who is the Governor General of Canada? 2. What is the capital city of New Brunswick? 3. What is the capital city of British Columbia? 4. Name Canada’s provinces that do not touch salt water. 5. How many Maritime provinces are there? Name them.

6. Within three million, what is the population of Canada? 7. Name the oceans, not seas, that border Canada. 8. Who proclaimed Canada’s official colours? What are they? 9. Name Canada’s five largest lakes. 10. Who has most responsibility for teaching children about Canada? The federal government, the provincial government or the municipal government? If you think you know all the answers, drop me a line. I’ll send a swell REM mug along with my thanks for taking the quiz to the first three readers who can tell me the correct answers. Heino Molls is publisher of REM. Email heino@remonline.com. REM

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