SNAP

Digital cameras have revolutionized photography.

When selling your home an important step is to take high quality photos. I'm not talking about megapixels either. You need proper lighting, the right angle, the best lens width for a given room, composition of the shot.

First things first. CLEAN UP! Nothing worse than looking at a home on the internet and seeing kids toys strewn about, unmade beds, "artwork" on the fridge, dirty dishes on the counter etc.

Next you need to consider your equipment.

• Megapixels is really only a concern if you are planning on enlarging pictures. A basic 3.1 megapixel setting on your camera is plenty large enough for web photos.
• Lenses should be a wider angle then your standard 35mm equivalent. This 18-200mm lens would work great as an all around lens. This 18-70mm lens is a great option if you already have a 55-200mm lens.
• The Camera does not have to be a DSLR (Nikon D40, Canon Rebel XTi) but a big advantage to these cameras is their ability to change lenses. A "point and click" camera can work but again consider it's widest angle is usually 35-38mm.
• White Balance is a necessary option on your camera. With more and more lighting options you may need to adjust so your photos are not yellow or blue in colour. Most cameras will have this option. Consult your owner's manual for more info on adjusting for different kinds of light.
• Tri-pods are very usful when talking stills of a home. They allow for a sharper image taking away "hand shake". They are extremely useful in low light conditions like basements where you may need to use "Long Time Exposure" to ensure proper lighting of the shot.
• For lighting no matter the time of day, turn on EVERY light. Light is your friend. I generally do not use a flash. I find they cast shadows and accentuate items closer in frame. The other issue is reflection off windows and shiny objects.
  

When thinking of room angle and composition it is best to use an angle that shows the room in the "best light". Consider time of day, postition of the sun, position of windows to not wash things out with a bright sunny window. As for composition, try a few different angles see which looks best. You will find that for most bedrooms and bathrooms the doorway is your best spot. Kitchens and livingrooms are a little different. Depending on the layout and features you may even want to do two shots or consider virtual tours.

If you are having someone else do the photos (PSP or an agent) make sure you are happy with the photos. It is a service you are paying for so you should be happy with it. Word to the wise, if you see a Blackberry, iPhone or cell come out for photos, send them packing. They sure are not professionals!

Here is a video with great examples of bad photos.



If you come across some bad photos while searching for houses, post a comment with the link or ID/MLS # so we can all have a peek!

M

"Trust" The Experts

He is looking out for your best interests, right?

I have always had issues with people that use high pressure sales tactics. Just doesn't seem right to me. Everyone has to eat and sales is an art, but it does not take much to go from sales person to con artist.

I am not saying real estate agents are con artists. I am saying that their "system" is set up to encourage people to question their morals. More now than ever.

Let's go through some role playing. Humour me.

You are a real estate agent. Times are tough. The market has shown SOLDS down over 30% over the previous year for the last 3 months. You know it because you have not had a deal go through in 4. An "opportunity" arises. Would you question your morals? Most wouldn't.....MOST.

The problem here is agents only get paid when the deal goes through. What is stopping an agent from taking the low road? What is stopping the sales person from doing what they do best, sell you on the property. It may not be the best for you, it may even be a bad deal.

If you are an agent you are screaming at your computer right now saying "I build my client base through a network of referrals. I can't treat a client like that." I hear you. Don't bite the hand that feeds you. What if you have no food and haven't for months. Now you have a buffet staring at you, tempting you, calling you. Temptation can reach us all. It goes back to the "start" of humanity with Adam and Eve.

People's nature is to paint the world in a way that makes sense to them.


Did she really believe what she was saying? Absolutely. Why would she knowingly lie and tell millions of people to loose everything they have. Why would she send them away from their Garden of Eden?

M

Well That's Just Rubbish

You think you have it tough....imagine you had to clean up the entire world??

One of the toughest things we have to do when preparing to sell our house is "purging" or "decluttering". Whatever you call it you are simply getting rid of stuff you have accumulated over the years. You sure as heck don't want to move it to your new place and it would be beneficial to get it out before buyers start walker through and judging your stacks of 1980's era Sports Illustrated magazines.

For some of us, this is a task that could take 20 minutes, others, a whole week with the aid of a garbage bin or mulitple trips to the dump. I want to give you a few alternative thoughts to assist you through this process.

1. Goodwill and Value Village take many items if in good shape as opposed to taking up space in various landfill sites.
   
2. Cambridge, Guelph and Kitchener-Waterloo food banks take clothing donations, specifically warm clothes and winter jackets in the winter months.
3. University students are always looking for cheap furniture, specially in the late summer early fall. Try places like Kijiji, Craigslist, and Facebook Marketplace as free classified sites to sell your unwanted items and help pay for the pizza on move day.
4. My wife and I did the old fashioned garage sale and put the money towards our kids education RESP. Amazing what people will buy for a quarter.
   
5. Habitat for Humanity in Waterloo Region and Wellington County are good spots to donate building materials that didn't get used or old cabinets after the kitchen or bathroom were redone.

There are also services out there to assist you in these aspects. Whether you are too busy or just unable to do this process yourself you could use a service like Moving Forward. Deb Fox, owner and operator, got started in the business after going through the ordeal of dealing with her parents downsize. This is a great service for anyone but is aimed specifically towards the senior market. Those that are going from a house they have lived in for 30 or 40 years to a small retirement condo. Where would you begin? Try calling Deb.

All this talk of accumulation and purging I can't ignore the link. Here he is, the late George Carlin, "Stuff".


M

Culling The Herd Part II

Which cow will survive the cull?

Sometimes I find really interesting things on Youtube.

When I was searching for a video for my "Culling The Herd" post I came across this.




I could not pass up the chance to showcase the way traditional real estate works. There is no doubt that the high cost of using an agent has, in part, to do with the many people taking their piece of your house equity.


Using the example in the video the traditional agent would take $6,000 out of a $10,000 commission with $4,000 going to the broker. Funny how $4,000 of your homes value goes to someone you have never met just because the person that sold your house decided to work in their office.

Back to my point. If less and less deals are happening then more and more agents are going to be forced to have to pay their monthly fees out of their pocket. People that are doing things "part time" will find that it actually costs them money to be an agent. The ones with bad reputations will find the deals are harder to come by. The ones that have not spent the last year working their butts off to grow their business will wonder why no one is calling them.

The market will cull the herd and the agents that provide good service will find that good service is no longer what sets them apart. It will be interesting to see who raises above. I suspect it is someone that offers their clients what they want and need at a reasonable cost.

We'll see.

M

Costs Of Doing Business

It's only money.


Let's look at the value of a home. Their are many things that go into the makeup of a value. The area that you live, square footage, storeys, flooring, numbers of bedrooms, bathrooms and "living spaces", lot size, exterior add-ons, finished basements, types of door handles, colour of the appliances, etc, etc, etc.


When an appraiser comes in to look at your home and decides on a value they look at all of these things as a whole. They compare it to other like properties that have sold recently and also "forecast" based upon current and expected market conditions. This is why you get a range in value from one appraiser to the next that can differ by as much as 5%. The key thing we need to understand is that an appraiser gives us a "market value". This is what the home should sell for on the "open market".


There are costs for you to sell your home on the "open market". Costs are dependent on a a few things. There is a decision to make as to what service you want to pay for and what value you associate with that service. The service of an agent does not add value to a home. So when you are looking at selling your home, evaluate the value proposition that you are offered from an agent.



I didn't find "Hire an agent" on this list. If you still want to use one, by all means sign their contract. It's only money.


M

Culling The Herd

They say that every farmer knows the importance of getting rid of the sick and the old.

There is some talk going around in the real estate world that the changes in the Canadian market will result in less agents in 2009. According to CREA there are 97,000 agents in Canada. Although it is hard to find a number it is estimated that we have over 1,300 real estate agents here in the Waterloo Wellington area. Those 1,300 agents were responsible for 11,426 SOLD properties in 2008. That works out to just under 9 deals per agent or less than 1 deal a month.

Here is where the numbers get interesting. Those estimated 1,300 agents were responsible for just over $3 Billion dollars in real estate SOLD. That works out to $150 Million in commissions paid or $115,000 per agent for the year. Not to shabby for less than 1 deal per month.

So what happens when we start to see the decreases in SOLDS like we have for the last 3 months? Well the way the traditional real estate works, less SOLDS means less money for the agents. My experience with agents is that taking anything less will not happen. So the natural selection process will take over and ensure that the weak and feeble will not survive.

Why do they feel the need to band together? What is the mentality to this herd? Here is an interesting perspective.






In listening to the "psychology" of the herd it seems only natural that Private Sale is growing at the rate it is. Don't look now but you may have a star on your belly.

Welcome to the Private Sale Revolution.

M

December Real Estate Stats And The 2009 Market

Well the news is out. It confirms what we all new.


This linked Record article shows the stats for Waterloo Region for December (and 2008 as a total) had dramatic decreases from last year with MLS SOLD properties

The good news is the sky is not falling.

First we must remember that 2007 was a phenomenal year. Second is MLS is losing ground to competition. The stats for PropertyGuys.com here in Waterloo Wellington show a different story than what the "traditional" real estate model shows. Year over year for December SOLD properties increased by 46.1% and when you look at the entire year of 2008 vs 2007 the increase was 32%.

1/3 more people paid themselves in Kitchener, Waterloo, Cambridge and Guelph in 2008.

People are choosing a cost effective alternative to listing their home with real estate agents. When you sell your home you need some level of comfort. For most a sign on the lawn and an ad in the paper falls short. Some just prefer the all encompassing feeling that an agent can bring, no matter the cost.

I had lunch with an agent today. His opinion of the market for 2009 was pretty bleak. He is going to ensure his clients are focusing on pricing their home not only on past market trends but also on future market trends. This means that with an expected decrease of 5% in the market he will be adjusting his clients accordingly in their expectations.

If you are looking at listing your home and have not purchased one yet you are sitting in the driver's seat. In a market like ours, having an offer not conditional on sale is the ultimate tool for negotiations.



Give yourself a strong start in 2009. Be a CHAMPION!!!

M