I assume we have all heard the news from Blackberry by now. More job cuts, pending sale to a private equity firm, another failed software launch. Man that was a week!
I am sure there are plenty of people wondering what will happen, how will this impact the local economy, the local housing market. If even 1/2 of the job losses are here in Waterloo Region it will have to effect things, right?
It is no secret that I am not a fan of the traditional real estate agent model. Taking 5% of someone's equity for the work that needs to be done is darn near criminal in my opinion. It is sometimes justified by "market increases" and excuses like "well you are still ahead by $20,000". What happens when you loose your job, or worse yet you AND your spouse loose your jobs? That $15,000-$20,000 in real estate commissions could be the difference between pulling through and bankruptcy.
Selling the PropertyGuys.com way allows you options, at a time when you may not have too many. You have the option of selling at market value and pocketing the commission for yourself. The other option is if you are in a pinch and need to change things fast you have the ability to lower your price by that commission amount and have a competitive advantage over your agent selling neighbours. Most of our sellers land somewhere in the middle between these two options, with a win for both buyer and seller.
It would be a shame to see any negative impact from Blackberry bolster an already over inflated industry. Look around at all the square signs in your community and know that $20,000 is more than just hot air, but then again, those balloons don't stay afloat by themselves.
How do you handle a drop in the market as a seller?
If we know anything about the stock market it is there is one key fundamental and two key ways to achieve it.
Fundamental - Buy low. Sell high.
Achievement method one - Look for quick short term gains. Under valued stock and/or companies that are on the verge of something new, big or wonderful. (Usually individual stocks)
Achievement method two - Buy something stable and dependable now and put it away and know that in 25 years it will be worth more than it is today. (Usually mutual funds or bonds)
The housing market really isn't that different. If you buy in a hot market you are poised to get quick returns. For the most part the big gain in housing happens over time. If you purchased just before the market crashed in the early 90's and tried to sell after the crash, you would have lost thousands. That same house would show a total value increase today worth much more than any loss you would have felt. Long term smooths out the ups and downs of the market with a general overall increase.
With fear starting to penetrate into the media about the "cooling of the market" people are starting to wonder what will happen. How will people deal with the news that their house they just purchased 2 years ago is worth 10 or 15 percent less then what they bought it for? Is that even going to happen?
The good news for us here in the Kitchener, Waterloo, Cambridge and Guelph is that predictions for 2013 are to be steady through the year. The bad news is if there is a correction in the major markets it could send a spiral through the media that will affect the market here.
As someone looking to sell a home in a market that is flat at best with potential for decline the most important factor in selling is price. Anyone looking to buy will also be aware of the market conditions and they will be looking for homes that are more aggressively priced. If you purchased a few years ago for $300,000 and your home has only seen a moderate increase and market value is $310,000 a $15,000+ real estate commission puts you at a loss. A $1,500 marketing package puts you at a gain plus gives you the advantage of being better priced then your competition using a real estate agent because in order to break even they end up over pricing at $320,000.
Typically in a volatile market it is best to hold on for the long term increase, specially with the low interest rates. If you have to sell though, you really need to look at the dollars and sense (yes I meant sense and not cents).
Let's first understand what the traditional "high fee agent" (5%) break down looks like. Typically a 5% commission is split 50/50. Meaning 2.5% goes to the buyer's brokerage and 2.5% goes to the listing brokerage. This means in a $300,000 home there is $15,000 in commissions paid. Man, that's a lot of skin!
In a typical discount brokerage 3% Program the listing brokerage typically discounts their fees down to 0.5% and offer 2.5% to the buyer's brokerage or on occaision they do 1% and offer 2% to the buyer's brokerage. In one way the listing agents are not getting "their share" and may skimp on the service. The other, buyer's agents will prefer to show other listings where they get 2.5%. Same house as above and your still spending $9,000. Still more then a skinned knee!
A typical 1% Program the agent is not offering any commissions to buyer's brokerages and are expecting to work on behalf of both buyers and sellers. The real danger is that for buyer's to get the info they have to call your agent. Your agent now has a buyer looking to buy a home. Your home pays them 1%. Every other home listed with agents (High Fee or Discounts presented above) get your agent more money. Why would they push your home when they can sell the one up the street and make more money! It may only be $3,000 if it sells but unfortunately for you they sold one of the two above and made $7,500 so you sit with their boring old square sign on your lawn selling other peoples' houses!
Ever think someone was telling you one thing and then doing another?
So you have to ask yourself "How will buyers see my property?" Exposure is one of the keys to selling so where will your home be marketed?
Mid-way through last year the Realtors of the Guelph and District Real Estate Board decided it was in their clients best interest to no longer focus on advertising their clients in the Guelph Mercury. They felt that instead of having their clients' listings sent right to the door of many Guelph homes that they would "Go Green" and cut distribution by 3/4 and that home buyers would search out their paper around Guelph in their Green Boxes. Given that it has been a week since the plows have been out plowing snow it appears that not to many buyers are using these green boxes.
Our clients still have the option of local print advertising with any listing done. Whether it is in Guelph with the Mercury, KW with the Record, Cambridge with the Times or Wellington County with the Advertiser. Mind you our clients also have access, through a partnership, to list their properties on Canada's busiest real estate website along with listing on PropertyGuys.com.
It leaves me asking what do Realtors offer for all that money that you can't get yourself with a little guidance?
Well the votes were tabulated and the winners were honoured.
Jan 27th 2010 the PropertyGuys.com annual Revvy Awards were held in fabulous Las Vegas NV. As you can see from the picture above the awards had a groovy theme based on the swinging sixties with a little Austin Powers mojo.
Franchisees and associates from across the country gathered together to honour the best of the best. Here are the winners for 2010...
- Cathy Young Perseverance Award: Leanne Carter, Grey Bruce, ON - Associate of the Year: Tonya Brubacher, Waterloo Wellington, ON - Model Office Award: Rick Davies, Belleville-Quinte, ON - Most Listings Award: Donny and Tiffany Legere, Moncton, NB - Homey Marketing Award: Daina Hernden, Truro, NS - Private Sale Professional (PSP) Award: Linda Bernier, Timmins, ON - Rookie of the Year: Katherine Benoit, Norfolk- Haldimand and Niagra, ON - Top Performer (West): Simon A. Jones, Kootenays, BC - Top Performer (Central): Dave Waters and Mike Shanks, Waterloo Wellington, ON - Top Performer (East): Donny and Tiffany Legere, Moncton, NB - Franchisee of the Year: Donny and Tiffany Legere, Moncton, NB
Congratulations to all winners! I would like to give a few "shout outs" though. Fist to Leanne Carter of Grey Bruce. Leanne and her husband Perry were clients of mine in Cambridge a few years back. When I was in and sat down with them in their kitchen I couldn't help but notice over Leanne's right shoulder she had some "start your own business" books. I made mention that there were franchises available with PropertyGuys.com and to look into it. Well within days not only was their house sold but they were looking into purchasing the Grey Bruce franchise. Always great to see hard work honoured but it means more when you saw the spark that started the fire!
Last year our own Sue Machado was honoured with Associate of the Year award. 2010 has brought the return of the Associate of the Year award to Waterloo Wellington but this year Tonya Brubacher was honoured. If you have ever met Tonya you know her love for her clients is almost always shared with a hug. Here are a few testimonials from her clients:
"Absolutely a delight to deal with Tonya Brubacher. Professional, courteous , enthusiastic and knowledgeable. We would not hesitate to use PropertyGuys.com again as it was not stressful but loads of fun and we saved a bunch of money in not having to pay commissions." Peter and Heather Ternoway Elora, Ontario "Sold in about 2 weeks. PropertyGuys.com provided a friendly professional service, and saved us thousands. No wonder every other PropertyGuys sign has a SOLD sticker on. Thank you Tonya, professionals like you make the difference." Greg Boyajian Guelph, Ontario "The PG team have perfected what it takes to get you all the way through to 'SOLD.' Their professional acumen, knowledge, personal touch, and genuine interest in your success is unparalleled. Lifelong friends have been made in the PG process." Donna Maidmen Guelph, Ontario
How do we figure out the last piece of the puzzle?
Last year turned out to be a fairly strong year for real estate (even after the doom and gloom of the "Next Great Depression"). With any good year there are still problems that exist. When we are sitting on a strong real estate market what inevitably happens is people get caught up in the dollars and feel their home is worth way more than what the market is willing to pay.
The stats for 2009 show KW had their second best year in home sales. But what do the rest of the numbers tell us? Let's have a look.
For the Waterloo Wellington area MLS sales in 2007 were 13,093 based on 19,573 listings. These means that 66.89% of the homes listed sold. 2/3 of all homes listed sold, a very strong year and a seller's market for sure. This means that as a seller you were in a stronger position than a buyer as decidedly more people were selling than not selling.
2008 showed a reverse of this seller's market. MLS sales for 2008 were 11,573 based on 20,292 listings. Less solds and more listings, not looking good. The List to Sell Ratio dropped to 57.03%. Still not a bad ratio but an adjustment of 10% year over year effects the market. This is a common occurrence after a strong market as more and more people jump in to "ride the wave" and get their piece. People see what their neighbour got and then proceed to ask more for their house (and this continues to perpetuate). As the market price pushes up buyers either become more cautious or they just can't afford the costs of ownership.
Which way did 2009 go? I still don't have the Dec numbers in but Jan-Nov show 11,325 MLS sales (sure to be above 2008) based on 18,811 listings (expected to be under 2008). So as it sits the List to Sell Ratio has increased vs. 2008 but is still well under 2007 at 60.20% (Jan - Nov).
So where does this leave us in 2010? What is the piece of the puzzle to keep a strong housing market? I believe that the increase in 2009 is directly related to the lowered mortgage rates we saw. If these rates continue through 2010 then we will see a slight increase over 2009 as the first few months of last year we were still getting our feet under us. If the rates move up with any swiftness we will see a quick spike as those approved under the lower rates will make rash buying decisions and then a stall in the market slowing sales.
All in all our 2010 looks like it should be OK. Could be worse, we could live in the US...
"Just had a client who was listed on MLS for 2 weeks and was already getting the "Drop your price, drop your price, drop your price". The Realtor of course was going to get them "Top dollar" when she set the price two weeks prior. ...... So they dropped her and went with us. Listed Friday and already had 8 families through by Sunday. Somebody gets it, they really get it!!! Product......Price....Exposure."
More and more people are getting it.
Here in the Waterloo Wellington area we have been helping people pay themselves the commission for about 3 and a half years. Things are starting to come full circle in the local real estate market. Those leading private home sellers will be second time clients in the near future (we are already starting to see them).
As the Private Sale Circle grows so does the empowerment of you the home seller. The three card monte game of pricing your home with a realtor will end. No longer will you be lead astray in order to sign a contract. Pricing your home should not be a contingency on your listing. There is a better way. A licensed appraiser has to be objective. Here is a quote from their code of ethics
"public interest will be served by members acting responsibly, impartially, objectively, and with independent judgment."
I was having breakfast with some friends on the weekend and we were thumbing through one of the local real estate rags. It was everything to keep eggs from coming out of our noses looking at some of the head shots that local real estate agents use. I found an interesting blog post showing some of the "worst Realtor head shots" so I thought I would showcase some local talent and things some of the "traditional" and not so traditional poses.
Here are a few of my favorites (along with the one above) from the aforementioned blog: Not your parent's real estate agent. Spray Tan, check. Teeth whitener, check.
OK so here are some pics of locals that seem to speak to the stereotypical agent head shot:
"The Tilt"
Almost like stop motion falling. I dare you to not tilt your head when you look at them. My favorite example of the "The Tilt"...Hold on to that contract!!
"The Lean"
Probably the most versatile of poses. Often imitated and always duplicated. Here are a few styles to choose from. The Single The Double
The Classic The Pairs.
The Prop
Nothing says "I can sell your house" like a sunburst yellow Hummer!
"High School Confidential"
Kinda speak for themselves.
"She's a Brick....House"
There are right and wrong ways to use back drops. Right Wrong
"SMILE"
How much teeth should one show? Too much? Not enough?
"Location, Location, Location"
Let's take a stab where in the world they might be. The outback? Down on the farm? The Sun? ACC? This guy is in Florida for sure!
"The Honour Role"
My mother-in-law cuts off the entire head!
I wonder if they are talking to each other?
Platinum Blonde called....um....they want to talk to you.
Is Facebook really the place to get your head shot?
Super Ben!
I guess at the end of the day, they're only pictures and it doesn't really matter...
Can you hear private sale buzz getting louder? We sure can!
I had the pleasure of spending some time at the KW Fall Home & Leisure Show. You almost couldn't think the buzz was so loud.
Bzz Bzz Bzz
"Hey I just wanted to say hi. Tonya helped us with the sale of our home in Conestogo last month!"
Bzz Bzz Bzz
"That sign sure looks better with the SOLD on it. We just SOLD in 2 weeks in Paris with William!"
Bzz Bzz Bzz
"Our neighbour just SOLD with you guys. I can't believe how quick it was!"
Bzz Bzz Bzz
"Can we book an appointment to list our home today?"
Real estate agents, brokers, realtors all want you to think that private sale is going no where. They could not be further from the truth. The buzz on the street is growing. Our clients are selling their houses and telling everyone how easy it is. Word is spreading. Fast.
How fast does word of mouth spread? Have a peek at this video...
When we make our buying decisions we look to the familiarity of brands. We look to something that is tried, tested and true. Products and services become popularized only after a Maven has proven their worth. What is a Maven? Wikipedia tells us Malcolm Gladwell used the term in his book The Tipping Point (Little Brown, 2000) to describe those who are intense gatherers of information and impressions, and so are often the first to pick up on new or nascent trends.
We brought PropertyGuys.com here to the Waterloo Wellington area over 3 years ago. The Mavens have come and have been telling all their Connectors about us. Word has spread. People are talking about PropertyGuys.com.
How do buyers look at your home? Do they see a bloated balloon? Maybe they see indecision in that faded orange and black sign?
Branding your house, good or bad, could be the difference between selling and sitting. Katie Johnson knows:
[I'm] very impressed with PropertyGuys.com. They have a great brand and have firmly founded themselves outside of the expensive MLS world.
Katie Johnson Kitchener ON Sold Aug 2009
What are you doing to brand your home. Are you branding it properly? Are you passing on confidence of a brand to prospective buyers? One that speaks to them?
We are not just creating our brand through Connectors and Mavens. We are also getting word on to lips of others...
Standing on the porch is always exciting. Waiting there with a bottle of champagne in my hand. Trying to hide it behind me to help with the surprise. The SOLD sign has already been installed and the door bell has been rung. CLOMP CLOMP CLOMP The foot steps are making their way down the front hall. I can barely contain my smile. The door opens almost as wide as the arms...
Human kind shows their appreciation in all sorts of ways. A smile, a wink, pat on the back. I think the ultimate is a good old fashioned hug.
When I was first given the designation of PSP (Private Sale Professional) I never knew just how rewarding it would be. I knew that I would be helping people, but I never understood the unfathomed joy people would get from selling their own home.
Real estate agents talk about the joy they get from helping a client sell their home. If only they could imagine it with out the dollar signs.
Here is a little video of someone who understands the power of hugs.
My grandfather was a farmer. He raised cattle and grew grapes in the lushness that we know as the "banana belt" sandwiched between Grimsby and St Catharines. It's not easy being a farmer. Early chores 7 days a week, sick animals, too hot and no crop, too wet and no crop yet they always seem to be one step ahead. Next time you see that your local Farmer's Market is open, pop in and have a walk around. You will see plenty of beans and tomatoes and lettuce and potatoes. There will be plenty of smiles and earthy hand shakes. The term "salt of the earth" must have been coined about a farmer.
While you are there at the market you will notice something peculiar. People all around you are buying fresh vegetables, meats and cheeses, preserves and honey, fresh cut flowers and hummus. Maybe even a fresh baked pie (apple with some old cheddar is my favorite). Know what you won't find? Check out counters, pharmacy sections, a pop & chip aisle. Look long and hard but these are not grocery stores, just simple little markets with people selling their goods to people that want to buy them.
I know exactly what you are thinking. How is this possible? I mean these are farmers. How do they know how much to sell their beans for? They never went to some fancy university like Queens to get their MBA. My lord how do they know the value of that cucumber???
You see the farmers have a little secret. I was blessed in my travels to have a few local farmers bestow their secret on me. I am going to share it with you under the expectation that you TELL NO ONE! I will deny it was me. Do you think I want to be black-balled by the farmers?
OK, here it is. It has a few basic steps but the concept is sound (It has been handed down for generations). Are you ready?
The market will dictate your pricing
Here is how they do it.
See what other people are selling similar products for. ie. green beans and yellow beans could probably sell for the same price but watermelons and strawberries not so much.
Price yours in a similar fashion and display them where buyers might find them. ie a farmer's market
If the farmer at the next table is selling beans like they are going out of style while yours sit and wilt in the heat of the sun, check to see how he is priced. ie. his are $2.00 a basket and yours are $5.00
Adjust accordingly. ie. lower your price or get a bigger basket
Well there you have it, the secret of the farmer's market. Man I hope no one tells the farmer's I told you about it, they may make me dance....
Maybe my next post I will get back to talking about something that a home seller could use to help them. Something about the economy, because we all know you can't sell a house in an economy. Right?
Garth Turner has had a tumultuous run to say the least.
He has worn many hats in his days. From author to lecturer to syndicated newspaper columnist to TV personality to entrepreneur to 2 time MP. He may just be best known in Canada for standing up to Stephen Harper and getting the boot from the conservative caucus.
In his book "Greater Fool" he looks at where we are heading in the world of real estate. He does not see a rosy future.
Garth continues his thoughts from his book on his blog by the same name. A recent post includes a letter from a local RIM employee that recently sold his home privately in Waterloo.
"Mr. RIM" has $95,000 in equity saved up in his $244,900 house. The one thing that Garth does not expand on is the fact that had this RIM employee used a Realtor they would have used up 13.53% of their equity.
When we are considering whether to use an agent we make choices on a cost of 5% of our home. Unfortunately most of us don't own our home, the banks do. In the case above "Mr. RIM" only owned 38.79% of his home yet he is expected to pay the entire selling fee charged.
When you are looking at the future of your financial life you should look at the big picture not simply what is in front of you. Watch for what lies beneath the water, not just the majesty of what protrudes above the surface. That is a mistake made by so many in the past. Are we not supposed to learn from their mistakes?
It seems these days we are always waiting. Not sure it is because things take longer or because we expect things to happen that much quicker.
Guelph stats for real estate are a little slow to be posted this month. I found an alternate source that says sales are down a little over 16%. Stats for KW and Cambridge are looking a little more promising. With increases of 9.9% and 7.7% respectively it shows the first year over year increase for Waterloo Region since September 2008. This helps the YTD numbers slightly but in total MLS stats show a decrease of almost 15%.
All things have been pointing to the stop to the free fall. Low interest rates and the home buyers' plan and home renovation tax credits. Low interest rates have started to move back up. Does this put an end to people looking to buy, a halt on the pick up of the market? Anyone that was pre-approved has some time to make a purchase but anyone that does not already have the locked in rates may think twice. I would watch for a stall in the July-August time frame if nothing else changes or if the rates continue to raise.
Not to sound bleak. Just looking at what I see. It could always sound worse...
Your eyes begin to pulse as you read further into the statement. Like a scimitar, words cut through your heart as if paper. With unabashed anger you stand up and throw the paper on the floor and begin to stomp on it. It is not enough, you need more. Grabbing the plant seems insane but you can't help yourself. Still your anger is unabated. The chandelier?
You want to buy a house and you still have one to sell. Most people would put in a conditional offer. This condition would state that your offer is under the condition of selling your home with in a time frame (30-60 days) and should include a bump clause that states that if any other offers come in during this time frame you would have the right to either firm up or walk away from the deal (usually allowing 48 hours to make your decision). Seems pretty straight forward, right?
As a home buyer you want nothing more than to breeze through a purchase (including the sale of your home as part of your conditional offer). It would seem local realtors don't want you to do that. They are angry. They feel deserving of your hard earned money. They are even willing to use coercion to get it.
Think coercion is to strong a word? Here is the definition from Dictionary.com:
Main Entry: co·er·cion Pronunciation: kO-'&r-zh&n, -sh&n Function: noun : the use of express or implied threats of violence or reprisal (as discharge from employment) or other intimidating behavior that puts a person in immediate fear of the consequences in order to compel that person to act against his or her will; also : the defense that one acted under coercion —see also DEFENSE, DURESS —compare UNDUE INFLUENCE.
As I wrote about in a previous post, local agents are using intimidation in the offer process. For you to get that house they are forcing you to have to list with an agent. Imagine the feeling of violation when you find out in order to buy your dream home you will be forced to spend thousands of dollars wastefully on a service you don't want or need.
Numbers are in for both Kitchener Waterloo and Cambridge for April real estate sales. Congrats to the home sellers of Cambridge as the leak in the dam seems to have been plugged by the tulips of spring. Cambridge has shown 20-40% decreases over the last 6 months so to only be down by 1.8% over last year is quite an accomplishment. This is still a drop of nearly 20% over the 2007 numbers of 307 homes sold in Cambridge.
Guelph on the other hand does not seem to be holding it's ground. Early numbers show a 26% decrease over last year and that was down nearly 6% from 2007.
Let's hope that the consumer confidence is back and can repair the levee damage so the spring/summer homes sales don't get washed away in the tidal wave of unsurity.
9.69 Seconds is as fast as anyone has gone to date.
How fast will your house sell?
Home selling is a balance of the Home Selling Trifecta. More commonly know as Product, Price, Exposure. If one of these three essential elements is off, you will have issues in selling your home.
The knock most people have with Private Sale is the perception that they are limiting their exposure and extending the time they need to sell their house. Back pre-internet I would tend to agree. Today's private sale marketing companies get you the exposure that you need in order to get in front of buyers. Where this perception comes from is not from the exposure angle of the Trifecta but the other two components.
Product and Price are key in order to sell your home. They HAVE to be in alignment. If you are sitting with a $200,000 house and asking $230,000 people hit the next button on the computer screen. The decision is made without you even knowing.
As Private Sale Professionals we encounter more real estate transactions than that of the average home seller. We see people make good and bad decisions every day. To watch someone give up on private sale and reduce their price when they list with an agent does not comprehend. Let me give you some examples.
140 Peeblecreek Dr in Kitchener had listed with PropertyGuys.com in April 2008 for $384,900. In July they opted for the Realtor route. We last saw them on the MLS system on Feb 26 2009 after it had been listed for 224 days with an agent and had dropped the price to $349,988. A difference of $34,912 not including the estimated $17,000+ in commission. All that and they still had to wait 2/3 of a year!
17 Harrow Ct in Guelph listed at $460,000 with PropertyGuys.com in January 2008. After being listed a mere 66 days and dropping their price to $419,500 they opted to leave for the "greener pastures" of the MLS. Pastures grew, dried up, got covered in snow and were finally thinking of sprouting again this March when things finally showed promise and they sold. A harrowing 344 days with an agent and their last listing price on MLS was $369,000. A difference of $50,500 from their last price on PropertyGuys.com not including an estimated $18,000+ in commission.
61 Clive Ave in Guelph originally listed with PropertyGuys.com in June of 2008 for $349,000. After a few months on the market and price drops to $329,900 with no takers they opted to change their marketing strategy. Agents had been relentlessly telling them that they can get more money for their house, all they had to do was list and get the exposure that comes with from the wonderful world of the MLS. They listed with an agent in August at $340,000. After months of going nowhere except down in price ($319,900 is where they ended up) they opted to come back to PropertyGuys.com in early December. Doing the math they realized that even if they could have sold with an agent at $319,900 they would have ended up with $303,905 after commissions were paid. Knowing they needed to be more flexible they adjusted their price to $309,900. This seemed to put their Product/Price ratio into alignment because just after the Christmas holidays they had a sold sign on their lawn and a little over 95% of their new asking price.
Any athlete knows your performance does not happen out on the track. It all happens in the training. You must prepare yourself for the meet with countless hours of workouts to ensure when the pistol goes off you are ready to run down that track to victory.
Don't tense up and let the lactic acid build up and kill your finish, as Darrin says, "keep flexible"!
Are you outraged about your equity being ravished?
Last Friday a gentleman by the name of Mark Fox wrote a provocative blog post entitled Death Of The Realtor. Mark is a very interesting person. Now a corporate trainer and author he has an impressive resume including rocket scientist. A person not to be misdirected by fluff.
I first learned about the post when I saw it on twitter. What makes it so provocative? Mark likens paying 6% commission in a real estate transaction to rape; loss of control specifically. The use of this feeling of violation is an interesting one. It stirs up an emotion, one that could conjure up guilt in the most ethical of real estate agents. The ones that are lacking scruples won't even bat an eye. Let me give you an example.
I met with a friend of mine this week to discuss the listing of his house. He and his wife got a call from a local agent that wanted to show them a great little fixer-upper. They fell in love with the potential of this house and decided to put in an offer. Knowing the agent they felt comfortable having him work both sides of the deal. They put in a strong offer conditional on the sale of their property. This friend of mine is no rookie in the housing market. Having sold his two previous homes privately he was excited to get it on the market once the offer was accepted.
Knowing the way some real estate agents manipulate clients with trust I gave him a warning. Although some agents have strong ethics and want the best for their clients we have experienced many local agents that thought more of their own pocket books then the financial concerns of the client. Sure enough the offer that was presented was not just conditional on the sale of their property. It was dependent on them listing their property on MLS. That's when it was explained to the agent that they were going to sell privately. The real estate agent said he would take this "new offer" back to the seller to see what they thought. Here is where the real depredation of trust happens. Why would the seller care how the buyer chose to sell their house? Price it properly and get it on the market!
When the agent came back with the news the seller would not accept the offer unless they listed on MLS it became obvious that this agent was not out for the best interest of his clients but only for his own personal financial gain. If he was looking after the clients' best interest why would he force the buyer to have to add an additional $8,000 to the selling price of their house? How is this in the best interest of either buyer OR seller?
Realtors might argue that the agent is working in best interest of the seller because for a home to sell it needs to be listed on the MLS. I beg to differ. Stats for the last 6 months in Waterloo Wellington show that only 43% of homes sold with the high profile marketing of realtors and the MLS while the clients of PropertyGuys.com bettered the agents by selling 46% of homes in the same time period.
Why is that? Why would homes listed privately have a better chance of selling over those listed on MLS?
Private home sellers are in control. No one ravishes their pocket book. They are able to flaunt their lower price out to the market without fear of someone pillaging what is rightfully theirs.
I commend Karen Shartun (KW Real Estate Board President) for trying to put a positive spin on the economy. The traditional media has put enough negative spin on this whole thing we could use some good news. Problem is we need information that is not misleading us.
In another article in the KW Record Ms. Shartun says "the positive momentum suggests the market has turned the corner". Truth is this is nothing special. The "momentum" of the spring market is all part of our normal cyclical nature. More houses sell in the spring and summer then in the fall and winter, FACT.
A better perspective to look at this would have been "Sales for January in KW were down 36% year over year and 28% for February. In March we are seeing that number shrink as MLS sales are only down 18% vs a year ago. Not only are we seeing the seasonal increases that we do every year but the gap to last year is closing as the economy settles down."
On another positive note PropertyGuys.com numbers for KW in March show that client sales were even with last year. If we look at the entire Waterloo Wellington area PropertyGuys.com clients sold 26% more homes this March than last March.
You would think that by know their arm would be getting sore.
Did you hear about Remax suing a small South Carolina real estate agency over their logo? They claim that it was a trade mark infringement yet the logo didn't even resemble Remax's. Seriously, you be the judge... They eventually dropped the suit, due in large part to the negative backlash by the press and in social media outlets. It seems that Remax has a reputation of trying to be the bully against small and medium sized businesses. You hear rumours and stories about it but until it becomes a a part of your reality you never imagine the power of big money.
This past week-end was the annual spring home show at the Aud in Kitchener. For the third consecutive year we were very excited as it hastily approached. 2008 proved to be a success and we committed to the same booth space for 2009 well in advance (last summer). We borrowed our main concept this year from an idea another franchisee had and made arrangements to have a Harley Davidson Super Glide in our booth. We noticed in the pre-show material that Remax had not only came in as the major sponsor for the show but was also located right across the aisle from our booth (B127). With a very attractive value proposition we were thrilled about the opportunity to take on this giant face to face. With out getting into the finest of details after the first day we were relocated out of the main show area and into the hallway between the two arenas (LL02/LL03). Not the most professional place by any means. We were given a partial refund and the impression that we would not be welcome back next year. This is not the first time a PropertyGuys.com franchise has seen this happen. PropertyGuys.com St. John's NFLD ran into it when Remax came in and sponsored the local home show. They went from being voted "Best Marketing of New Homes" in the single booth category in the 2006 show to "not allowed to participate" in 2007. This is their way to control the market. Large companies like Remax come in, throw money at the organizer, flex their muscle and try to suffocate smaller more attractive options.
Last time I checked Canada was a place where we are all entitled to compete in a free and open market. In Canada we have a government agency "overseeing" this type of thing. The Competition Bureau has a mandate to help small companies in this situation. Here is a quote from their Website:
"ensure that small and medium-sized enterprises have an equitable opportunity to participate in the Canadian economy"
When you look through the exhibitor list from the home show you will see many competing businesses throughout the list. I did a quick summary and came up with a list of some of the categories:
Landscaping x 13 Companies
Heating and Cooling x 10 Companies
Windows and Doors x 9 Companies
Roofing x 8 Companies
Financial Services x 8 Companies
Painters x 6 Companies
Flooring x 5 Companies
Fences and Decks x 4 Companies
Water Services x 4 Companies
If there was only one company from each of these services allowed in the show would they even have a show? How can one company dictate if their competitors are allowed to attend when clearly the event is based upon allowing fair and open competition giving greater choice to the consumer creating the draw? We had a videographer at the show to interview other attendees and I thought we would have a walk through to give you our prospective of the move.
The choice of which service you should choose should not be decided by the company with the biggest bank account but by you the consumer, after all it is the Canadian way. If you want to lodge a complaint against Remax to help preserve your rights as a consumer you can do so here. I would also welcome your comments here on the blog.
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