At PropertyGuys.com, we know that selling your home is not something that should be taken lightly and just left to some online platform or website. Over the last 15 years we have worked with tens of thousands of home sellers. Experience like that has helped us figure a thing or two out. We know people want more than a website to sell their house, why else would they consider spending $20,000+ to sell a cookie cutter home?
Being locally owned and operated, having the business owner sitting at your kitchen table to walk you through the entire process is one of our market advantages. We also rely on industry professionals like local appraisers as well as lawyers to offer you what you need when you need it. In addition we have a call answer service that books appointments for you allowing you to never miss a buyer.
When it comes to marketing we look at traditional options like the local newspaper and Just Listed postcards mailed out in your neighbourhood as well as some non traditional marketing like sponsored Facebook posts targeting buyers in your wanted demographic. For those that want to reach the MLS audience we even have real estate brokers that will get you on Realtor.ca for some added exposure.
We are more than just PropertyGuys.com. We are more than a website. We are part of your community, living and working along with you, effecting our local economy by keeping your money in your pocket, where it belongs.
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).
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?
It is hard to be friendly when you have to go through a 3rd party.
Christine Durocher of Guelph recently sold her house. She had been trying for some time. She listed her house in time for the big "SPRING MARKET". She had called upon an agent she knew quite well to list it and it hit the MLS on Mar 26 2009 at $264,000.
After being on the market for a few months and not getting the results she needed (a SOLD sign on her front lawn) she called Tonya Brubacher in our office. Because Christine didn't have to pay the $13,860 (including GST) in commissions she was able to better price her home. She listed on June 4th for $258,000 with PropertyGuys.com and was able to sell her house within 2 weeks for 97.7% of the asking price. This decision allowed Christine to pay herself $13,230 (including GST) in commissions.
Here are Christine's comments on the the sale of her home.
"PropertyGuys.com is definitely the way to go. We are very pleased with the outcome and it didn't take very long to sell our home. Thank you to Tonya and PropertyGuys.com"
I guess the only thing worse than having someone stuck in the middle would be to have THIS guy stuck in the middle...
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.
Last week a "Real Estate Investment Specialist" by the name of Don Campbell was on The Hour (click to watch). Strombo's laid back interview style allowed for a light easy going interview that talked about all sorts of things.
Here are some of the snipits that I took from the interview.
The market is adjusting and people that are expecting the same outcome as the last few years are nuts. If you were a player over the last 3 years you did well, anyone could have done it. It was the "Tiger Woods Years". There was no failing. Things are down now and people are still expecting the high return. There is a home in Cambridge that I was watching. The owners bought a little over a year ago and now have it on the market for almost $100,000 more than they paid for it. They are now on their 2nd agent (over 3 months listed) and still way over priced for today's market.
Now is a good time to buy especially in an area that is growing. We are lucky enough to be one of the areas that he keyed in on along with Barrie/Orillia, Hamilton, Edmonton and Calgary. As an aside if you are a first time home buyer it makes even more sense with programs available for you.
If you are looking at investing in property you don't have to buy where you live. Look at the hot spots, where your investment will grow the most and focus there. He really thought Hamilton was an area poised for growth, looking at access to commuter transit and it's proximity to GTA and KWC.
If you want to live in Toronto because you like the "city life" look at renting. You will not be "house poor" and still be able to save up for a deposit when/if you are looking at investing in a property down the road.
What does this mean for us here in Waterloo Wellington? Well if you are looking at selling a home you can expect to be at an advantage over any of your friends in the GTA. Sure their house may be worth more than yours but you won't lose as much as they will. If you are looking at buying for a principle residence or an investment property, go for it. You will be fine as long as you are thinking 5-7 years down the road.
You may not pull off a shot like this but he is the best...
I just love seeing all the losers that live by the airport when I land in a plane. Do you think any of them used a real estate agent?
If you remember my Fly In A Think Tank post from last year you will recall the new realtor ads that were being proposed.
They have now started to air on TVs across Canada telling us all just how useless we are without real estate agents. So far I have only seen the one with the guy that bought the house in the flight path of the airport. Last time I checked airports were pretty hard to hide. I mean look at any map, you will easily see your proximity to an airport....or a school or a park or a 400 series highway. Heck take a drive around the neighbourhood with your eyes open and I am sure you will see these things.
I think I know where the they got there idea from...
I like to think this is a realtor in some foreign land helping his client avoid making the decision he could not have made on his own. Thank goodness he was there to point out the airport is "hidden" behind those bushes!!
Their new website lists all the wonderful things real estate agents can help you with. They do it with a virtual board game asking you questions along the way. Concept is neat but to have multiple choices like "A: $322,000 should ensure a quick sale.", "B: $503,000 means a hefty profit." or "C: Ask a realtor." insults your intelligence. Only a realtor would know that the difference of $181,000 is ridiculous?
On the question about marketing your home if you actually choose "Ask a realtor" you get great advice like "there is a list of 25 things a realtor will do to market your home. Things like virtual tours, other media sources and of course top of the list putting it on the MLS". Last time I checked on PropertyGuys.com there were virtual tours, various print media options and national exposure with thousands of properties listed from St John's NFLD to Vancouver Island BC not to mention hundreds right here in Waterloo Region and Wellington County.
Getting great advice when looking to buy or sell is a great idea. Just make sure you ask someone that doesn't think you are stupid.
Well according to the numbers in KW, Cambridge and Guelph things are continuing as expected. Sales are down almost 30% and average house prices are still below last year, albeit not by a lot.
Real estate boards are sticking to this ridiculous notion that increasing sales versus December and January is something to boast about. Here is the quote from the KWREB president.
Last month's sales represented a healthy gain over the activity in December and January, the boards said.
"It's a small victory," Karen Shartun, president of the Kitchener-Waterloo board, said in a news release. "But after a steady diet of bad news concerning our economy that we've had in the past couple of months, we'll take it."
At least this time they only claimed it as a "small victory".
Now I know you are wondering if all this lipstick is doing any good? Is the pig looking any better? Is it actually kissable? Someone seems to think so...
I expect the spring market to pick up, as is the cyclical nature of our market. Based upon what we have seen over the last 4-5 months I would expect about a 25% drop in solds over last year. So for March that would put KW at about 470 solds, Guelph at about 210 and Cambridge at about 175. Let's see how close my predictions are.
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