It's Sold You're Moving

Selling property in 2012 - Know when to sell and when to buy

2012-01-06T13:46:00.001-05:00

By Penny Elizabeth Dutkowski, Broker
Well here we are at the start of another year and the opener to what is typically the GTA housing market's busiest time of year. My sales record will prove that an important factor leading to a seller achieving exceptional results is in knowing when to buy and when to sell which translates into an advantage of several thousands to their benefit. So if you are going to be buying and or selling property this year, consider the following tips before taking the plunge.
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A Little youtube Real Estate Humour - Pushy Real Estate Agent

2011-11-30T13:21:00.000-05:00

Enjoy

Apparently The Key to A REALTOR's® Success Is Tight Skin

2011-11-23T14:40:00.003-05:00

So claims one let's call her EW of so and so vitality medical something or other in the most ridiculous solicitation ever to land in my inbox.

Lucky for me, EW, a woman whom I've neither met nor heard of before so profoundly wants me to increase my income and "give me the edge over other Real

Estate Agents" she is offering two exclusive skin tightening and inch loss tightening treatments guaranteed to make me look 10 years younger. A value of $949.00 all for free. Why this generosity? because as she puts it: " I know first hand what it's like to be a Real Estate Agent and I want to help you be the best you can be" without having to undergo expensive, invasive treatment.

Nice! I'll take an edge and exclusivity any time. Except that an invitation to call and book an appointment is followed by: " My staff are aware that this exclusive offer in(sic) only available to Realtors."

What happened to my edge? Where's the exclusivity since I only have one face?

To prove the effectiveness of the treatments,
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Negotiating Big Discounts With A Builder - The Savings They'd Rather You Not Know

2011-11-22T15:32:00.001-05:00

By Penny Elizabeth Dutkowski, Broker
Before you even set foot in a builder's presentation centre there are a few things you ought to know when it comes to negotiating the best discounts possible because as soon as you walk through that door your scenario is likely to go something like this.

You behold a gorgeous setting arrayed with eye-popping visuals that include a massive floor display with a 3D mock-up of the development replete with parks, trees, expansive roads. On the walls and displayed on easels are visual aids of various models, elevations and interiors so beautifully and artistically rendered you automatically envision yourself living in the picture. Around the corner is a real kitchen and bathroom both of over-sized proportions. The top of the line finishes draws you in and you're fully and finally hooked. Unbeknown to you though is that while you were staring with wide-eyed longing at the scenery, you were being watched for your reactions to everything.

Along comes the builder's sales rep and before you know it you've made a selection. You talk price and are either told there isn't much room to move or, with mild capitulation s/he agrees to your price then quickly switches to exactly what the builder wants you to negotiate over - upgrades. Don't allow this to be the path negotiations take as you would be handing over a big chunk if not all of the money they expected you would hand over. Instead...
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Planned Markham Mosque Stirs Debate Between Residents and Council

2011-10-26T13:11:00.014-04:00

A few days ago this flyer landed in my mailbox. Evidently, for its creator(s) the issue is that a mosque does not belong in Markham's 'historic' Swan Lake.

I live in the area a mere 4 minutes away from the planned site and while I oppose the mosque at this site, it is not for this reason because there is no 'historic Swan Lake' argument to be made as there is no evident historicity.

At the heart of the issue is a two storey 28,000 square foot mosque to be built about one kilometer east of Markham Rd. and 16th Avenue beside the Brother Andre Catholic High School. News of the impending project came as quite a surprise to area residents who learned of it via Markham's local newspaper, the Economist and Sun. Opposition to its location was immediate with harsh criticism levied at town council for keeping the application to build such an imposing structure low-key.

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ONTARIO'S HOUSING BUBBLE - IS IT REALLY ABOUT TO BURST?

2011-10-04T16:26:00.002-04:00

Since mid 2008, hardly a week has gone by without economic experts predicting that Canada's housing bubble as driven by BC and Ontario will pop and more so, that it needs to asap.

In the last several weeks those same pundits have upped the ante and taken to predicting doom and gloom for Canada's, nay the globe's near economic future. One day they will be correct after all the housing market is cyclical, but is Ontario's market ready to collapse or did the bubble already burst or at least deflate and they didn't notice?

I love crunching numbers and use them to successfully guide my clients on buying or selling particularly for if and when they should. This chart along with other relevant facts will clarify why the housing market has been robust for the last 8 years and barring a global meltdown, where it is 'imminently' heading.
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THE COMPETITION BUREAU'S PROTOCOL TOWARD TREB

2011-07-10T13:20:00.001-04:00

COMPETITION BUREAU v. TREB

Richard Silver, TREB's president stated that Melanie Aitken never once met with TREB during the time the Competition Bureau was in discussion with TREB about permitting VOWS and that while all of TREB's task force members remained consistent during these meetings the CB's kept changing.

I recently saw this picture with Melanie Aitken and wondered if this is our government office's boardroom or that of a past law firm employer of hers.

It reminded me of the time when in 1990 I travelled to Ottawa as a representative for Arkwright Mutual Insurance Company, one of three sister companies known today as FM Global, to pitch our case against GST on shared services to the deputy minister responsible for implementing the tax. The exercise was a frustrating and daunting task due to the required political protocol.
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TREB ANNOUNCES VIRTUAL OFFICE WEB SITE POLICY

2011-06-28T12:56:00.003-04:00

On June 24, The Toronto Real Estate Board announced a policy that would enable brokerages to offer enhanced reporting services of statistical information contained within the board's MLS System® to their customers and clients via virtual office web sites (VOWS). TREB's initiative in this regard began in July of 2010. The policy is currently open for review and input by all TREB members before being instituted.

The policy provides for the following:
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ADDRESSING THE MYTH - YOU DON'T NEED A REALTOR TO SELL YOUR HOUSE

2011-06-03T21:07:00.004-04:00

It's no secret that there is a minority who think that one does not require a REALTOR® to sell their property. They make their views known via fsbo and news forums ultimately supporting their claim on the basis of having sold their property in due time on their own. These individuals become particularly vocal, quite often resorting to obnoxious behaviour without any real debate with any and all who would present a pro-REALTOR® point of view, preferring instead to dismiss any who would argue otherwise as being a shill REALTOR®. This is particularly evident when the real estate industry is being targeted as in the case of the Competition Bureau versus The Canadian Real Estate Association (CREA) and most recently, the Toronto Real Estate Board (TREB).

I make it my business to peruse some of these fsbo forums and news commentary sites because I care to hear what I may do better to enhance my services. I can honestly say that some of the advice dished out by these supposed gurus of the do it yourself sale is both frighteningly wrong and delicious fodder for litigation lawyers and so, I have yet to find one improvement I should make as a result of their commentary.
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TREB's DATA SHOULD BE AVAILABLE BUT NOT IN MELANIE AITKEN'S WAY

2011-06-03T12:30:00.005-04:00

In my last post, "Deconstructing Melanie Aitken's Claim Against TREB," I stated that I don't have a problem with legitimate buyers and sellers seeing days on market, sold listings, sales price versus listing price and the number of times a property was relisted. The key to that statement is the word, "legitimate" and the meaning it construes. My reasons are twofold: 1) to make an informed decision when determining the list or purchase price of a property 2) To make an informed decision when interviewing a REALTOR® who makes claims along these lines.
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DECONSTRUCTING MELANIE AITKEN'S CLAIM AGAINST TREB

2011-05-28T20:45:00.001-04:00

Well, now that I've read the anti-competitive claim made by Melanie Aitken against TREB, a claim which by the way includes charges that are lifted almost verbatim from the 2005 U.S Department of Justice's allegations against the National Association of Realtors, I've come away with the distinct impression that Ms. Aitken has no idea that there are distinct differences between the Canadian and U.S systems. Her filing suggests TREB purposefully denies innovation because it will not allow all manner of brokerage businesses and that it withholds information such as sold amounts in this effort to block discount brokerages and "non-traditional models."

These allegations in my opinion, demonstrate she lacks understanding of the board, privacy laws, the Real Estate Business and Brokers Act, Advertising and Money Laundering Laws and therefore is completely misleading the public. Further, while choosing to keep his name out of it, Aitken has specifically taken up the cause once again for Lawrence Dale of Realtysellers and Fraser Beach fame. Dale is obviously a smarter lawyer - he's twice now convinced her to fight his cause with the public's purse. My rebuttal starts with Dale's interest in this.

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COMPETITION BUREAU FILES COMPLAINT AGAINST TREB

2011-05-27T21:57:00.002-04:00

The Melanie Aitken led Competition Bureau has filed a formal complaint against the Toronto Real Estate Board charging that it engages in anti-competitive behaviour by not allowing all of its MLS® listings to be downloaded by individual brokerages and/or its members into their virtual office web sites.

Aitken's complaint is that the general public can't go to XYZ company's virtual web site which requires membership, a login account and password to search for any and all properties one may so choose to search for in such and such an area and price range. This, Ms. Aitken believes would deliver results that allows one to make informed decisions before leaving the comfort of their couch and venturing out to see the property.

I would bet a dollar to a donut her she has never typed: www.realtor.ca on her keyboard.

If I were Ladsbrook, I 'd give 5 to 1 that she has no idea what number of files she could convert into .pdf via her IPad either, and 10-1 that she does not care to know.

On the face of it this seems like a reasonable complaint, but it is, in my opinion, an infringement of every capitalistic right afforded real estate brokerages to carry on a legitimate business in the manner they so choose and a downright assault on the privacy afforded private citizens.

I might very well be wrong because I haven't yet read her complaint against TREB, but I surmise that she takes up the case where the Realtysellers and Fraser Beach backer, Lawrence Dale, left off in his court loss to TREB in 2010. In addition, this is a move that would circumvent stricter privacy laws soon to come into force.

www.realtor.ca is a web site that just about every house hunter knows, and if they don't, they will quickly come to know it far sooner than the tens of thousands of obscure web sites offering property searches from soup to nuts. It does not require one become a member, or provide personal information or register a password to search properties. This is first and foremost important for the public to understand because you can be completely anonymous.

Issue 1: You see, the privacy laws are changing and very soon REALTORS® will not be allowed to contact anyone electronically unless there is express consent given by the contactee first. This means, less spam with enormous fines to those who do not comply with the new law. BUT! What you the public may not take the time to read are the caveats found in fine print that specifically states that should you willingly provide information, you have consented to the collection of your private information and to be contacted (spammed) at will by the person or company you willingly contacted. Maybe you will even give the company the right to sell your contact information to third parties. Further, this allowed contact can be extended for additional periods depending on your action or non-action to their solicitations.

It amounts to advertisement revenues generated for the web site. Your free web search or membership will not keep the owners of these web sites sheltered. Your clicking on the advertisements and the selling of your contact information will though. Web sites owners with outside advertisers are paid on a per click basis.

With Aitken as their advocate, your anonymity disappears with membership unless of course you fraudulently represent yourself to be whom you are not. Then you're engaging in a criminal act.

TREB's rebuttal to the charge is that they are protecting the privacy of sellers.

Issue 2: This is true. At present the seller's name(s) is displayed on the REALTOR's® version of realtor.ca only. It is required that all REALTORS® when taking a listing verify that the seller is who they say they are and has the authority to sell the property . This lends credibility to the buyer's agent that this in fact took place under the FINTRAC law which came about as a direct result of the mortgage scams and identity theft issues so prevalent 2-3 years ago. Unfortunately this was compromised when Aitken went after The CREA in 2009/10.

This new charge in my opinion opens the flood gates.

Private sellers may now opt to have their name and or contact information displayed on the MLS system, that is their choice. However, most sellers do not want to be identified. Aitken's change will mean that this information will be searchable by anyone with a computer and browser. From the fake Nigerian priest types who steal listing photos and advertise them as rental properties to the hackers of Sony who collect identities and sell them to anyone whose vested interest in your self worth lies exactly with how much to the last penny they can collect in your name.

Imagine now you are an elderly couple cashing in on your asset for your retirement years; a single person, perhaps suddenly widowed in need of the proceeds of sale; a young person or couple starting to build your assets; a recently divorced or separated person; an investor who resides out of town; an executor and even an owner whose property is being sold under power of sale. Aitken's proposal threatens to expose all of this to people with a screen name, a bogus ID and the express intent to impersonate and or defraud you.

TREB has stated in their response that they have been actively working on VOWs since last July (2010).

Issue 3: This is also true. I can, as a member of two TREB committees since 2009, attest to this statement. It appears to me though that Aitken wants the public at large to have more access to personal information than TREB may be willing to cede.

I for one, cannot in good conscience, look my seller clients in the eyes and tell them that their personal information regarding the largest asset they might own will not be that much easier to steal by any crook and identity thief, should they choose to list on MLS System® if Aitken has her way.

Issue 4: If Aitken has her way it will not stop with this. I could foresee the ethical brokerages opting out of the MLS System® in order to protect their clients and Aitken suing them for being anti-competitive.

I do not speak of identity thieves lightly. The media has not tried to hide this type of crime. But, I have the ability to tell when this web site is visited, from where and what the visitor is looking for. The same goes for my realty web site www.itssoldyouremoving.com. Both are in English yet, I get frequent traffic from some countries that cause me to raise an eyebrow.

And I am small potatoes compared to TREB's hundreds of thousand of listings.

What are some of these visitors looking for?

You decide.
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Ellen Roseman Off The Mark on "Cut-Price Agents"

2011-05-23T17:21:00.010-04:00

Ellen Roseman, for those not familiar with the name, pens a consumer advice column in the moneyville.ca section of the Toronto Star's Monday edition. Over the past several months, one of Ms. Roseman's favourite topics has been about REALTOR® services. I'm a regular reader who often finds her advice to be instructive even her article about Buyer's Agency which, although not completely factual at least attempted to portray her view as unbiased. Her May 23rd column however, "Cut-Price agents can now offer MLS® listings," is lacking in common sense leaving me to believe that Ms. Roseman is biased against REALTORS®.

In this column Ms. Roseman laments that most people haven't caught up with the news about the "momentus change in real estate sales," offers a poll by TitlePlus® that shows only 11% understand the changes and from there commences her promotion of lawyer services and private sale companies in order that sellers would pay less than a 5% commission. Roseman neglected to do what she as an advocate for consumers ought to do - offer unbiased advice as I will demonstrate:
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TORONTO TO SEEK DEMOLITION OF ILLEGAL BRUNSWICK AVE ADDITION

2011-05-10T23:23:00.010-04:00

With an attention grabbing headline -"A red-tape nightmare on Brunswick Ave" the May 8 Toronto Star's front page story commences to tell a woeful tale of a couple's fight with city hall to retain an illegally erected addition to their property and clearly attempted, in my opinion anyway, to paint the owners as old and sickly victims of a mean, unjust, biased and vengeful system of beaureaucrats through 4 hierarchies all the way up to the Ontario Court of Appeals.

Arguing their case is their harvard educated daughter, Pauline Tseng, a New York based lawyer with a certificate in conflict resolution.

Incredulously, they now plan to appeal to the U.N's Human Rights Committee.

It may be entirely coincidental that this Pauline Tseng from Canada, is/was associated with 2 U.N divisions. I'll discuss this later.

If the article was intended to raise a guilty verdict against the city via the public court of opinion, the over 200 comments on their web site suggests it seriously backfired. Nor was I moved to sympathy for these owners or convinced that what I read made a case for them and after doing my own research I became totally vexed with the Star's reportage and annoyed with the owners for trying to obtain after the fact an exemption from a zoning by-law they absolutely and knowingly breached while blaming everyone but themselves for their troubles.

I put forward a synopsis of The Star's story and the missing facts for you to form your own opinions.

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ETHICS- SELLERS SHOULD DISCLOSE MATERIAL FACTS

2011-04-25T22:23:00.010-04:00

In simple terms, a material fact is one that would could affect a buyer's decision to purchase a property or the price they would pay. It is generally characterized as a latent defect -one that is hidden, often known by the seller but concealed and more specifically, one that would not be discovered in the usual course of a general home inspection.

Sellers want the most money they can get for their property and knowing a latent defects exists, some will either rationalize that they have fixed the problem so there is nothing to disclose or, throwing caution to the wind, they gamble that a lawsuit won't be raised. Yet, when sellers become buyers they would think themselves deceived in such a case. While there is no Canadian statute that requires such disclosure by sellers, the courts do rule against them for concealment on moral and even fraudulent grounds. The REALTORS® they hire though are obligated to disclose if they take the listing regardless of the seller's wishes.

Two scenarios are provided, both factual, one speaks to disclosure, the other, non-disclosure.
The scenarios...
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GETTING TENANTS TO CO-OPERATE WHEN SELLING A PROPERTY

2011-03-05T17:23:00.003-05:00

There is nothing more frustrating to a buyer than not being able to view a rental unit or property because the tenants either can't be reached to schedule an appointment or are un-cooperative. I field the inevitable question: "why put this property up for sale if no one is allowed to see it?" far too many times when my request to arrange a showing is rebuffed or we arrive and can't get in because of the tenants. Sellers/landlords and their REALTORS® inherently know that this reflects negatively on the property, the type of tenant that will be inherited and worse - the purchase price.

So why does this happen and what causes the problem? I've narrowed it down to three main reasons. The first being that the seller has really bad tenants yet the seller still hopes that the limited ability to see the property will not deter a buyer's interest or from his paying top dollar. The second is that the seller/tenant relationship is dysfunctional and the third is that the landlord is not knowledgeable about his rights. Tenant co-operation can be greatly improved just by a landlord being versed in his rights and knowing how to implement them.
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WHY YOU SHOULD/SHOULDN'T HIRE A REALTOR® -Part 1

2011-03-03T13:43:00.000-05:00

In case it isn't obvious let me say -I am a REALTOR®. But don't reach for that X button just yet. The first post in this series is my opinion as to why one shouldn't use a REALTOR'S® services. Of course there will be another that speaks to why one should.

Why would a REALTOR® say this you ask? The answer is at the end of the post.
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Choosing a REALTOR to sell your home- Not the Usual Advice

2011-03-03T12:19:00.001-05:00

An internet search for - 'how to choose a realtor, ' returns results numbering in the millions. A random read of 10 or so even those written by non REALTORS® will produce the same oft repeated advice and chances are it revolves around why one should or shouldn't sell privately or hire based a REALTOR® offering a lower commssion rate/fee.

That advice differs in many ways from what you will read here possibly because I entered this field determined that my clients would have the same excellent service that I, as a consumer, require of anyone who acts on my behalf. When all is said and done we all want to come away with the impression that our business mattered and we couldn't ask for better service.
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THE PITFALL OF MULTIPLE REPRESENTATION aka Dual Agency

2011-02-09T23:00:00.013-05:00

To many, the term - dual agency means that a REALTOR® represents both the buyer and the seller in the sale of the REALTOR's® listing. This is only partially true. Buyers and sellers, via representation agreements, become clients of a brokerage - the agent. You, as a client, are not solely linked to the REALTOR® with whom you are dealing because you have essentially hired all of the brokerage's REALTORS®. Dual agency comes into play when a brokerage represents two or more clients in the sale/lease of one property. As long as two or more buyers or, buyer and seller are represented by the same brokerage and not necessarily by the same REALTOR®, dual agency exists. To better reflect this, legislation renamed it multiple representation.
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WHAT DOES MPP CHERI DiNOVO HAVE AGAINST INVESTORS?

2011-02-06T14:51:00.005-05:00

The NDP's representative for Parkdale-Highpark who understandably wants to help tenants who find themselves living in less than tolerable dwelling conditions has decided the rights afforded them by the Ontario Residential Tenancies Act (RTA), aren't enough to defend against unscrupulous landlords.
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Buyers Representation Agreement - What It Is

2011-01-30T22:21:00.011-05:00

Have you ever contacted a REALTOR® and had them show you a listing or attend an open house and while there commence to tell the REALTOR® how much you like the property or what you think of the asking price, even how much you would pay to buy the property? Perhaps you chose to ask how much the seller was willing to accept or why they were selling only to become annoyed when the REALTOR® wouldn't tell you?

Well, it might shock you to learn that the REALTOR® has a duty to protect the best interests of the seller. Listing representatives can pass on all the information you so freely gave because it can be used to the seller's advantage if you went forward with an offer. Essentially, You are owed no response to your questions as that could be disadvantageous to the seller - they are the client you are not.
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Customer Service v. Buyer Representation Agreements

2011-01-30T22:16:00.005-05:00

In real estate there are two types of buyers - client and customer.

A client is someone who is the beneficiary of an agency agreement wherein a brokerage either agrees to or, via conduct, acts as agent for the beneficiary. This may be in the form of a Buyer Agency Representation Agreement. The common law of fiduciary duty is owed to the client by all representatives of the brokerage. Generally, a written agreement establishes agency however, the conduct of a real estate brokerage and/or its representatives may consitute implied agency. It is a violation of the REBBA 2002, Act, for another brokerage to represent someone who has a binding and in force client agreement with another brokerage for the exact same criteria and parameters.
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The REALTOR® and privacy issues

2011-01-24T22:48:00.014-05:00

I happened across a complaint against REALTORS® made by someone in a real estate forum and think it worthy of clarification since it addresses a misunderstanding of the requirements REALTORS® have in upholding the Privacy Act.

The complainant stated they were preparing to purchase a property and accordingly contacted REALTORS® to request that only information on sold properties within the desired area be forwarded. The (general) response appears to be that under the Privacy Act, the information could not be provided. The requestor took umbrage to this and lashed out against REALTORS® in general as though this was a contravention of law, goodwill or the definition of customer service.

To those of the general public who do not in their business lives concern themselves with this act, the complaint may appear valid, but it isn’t.

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Finding A Newer Way to Market Real Estate

2011-01-05T15:17:00.032-05:00

That's right - 'newer.' Sound strange? That's real estate parlance for you. I bet you thought this was going to be about the rules relaxed by the Canadian Real Estate Association that allow for brokerages to list private seller properties on the MLS® system? Those are actually revised rules updated to meet the 21st century's way of competitive business practices. I doubt anyone in my profession would actually refer to them as newer, yet such flowery and impractical terms flow freely in our marketing of properties and that is what this post is actually about.

It is said that the CREA changes will cause some of us to find ways to be better at our job. Translated, that means to serve our clients' best interests even better than we have been. When we hold the rudimentary fundamentals of client representation in esteem, we find they are the root of all ethical decisions, cross all manner of clientele and transcend all fiduciary responsibilities thereby becoming second nature.

These are a few basic marketing fundamentals I've vowed to uphold. Will my peers join me?
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Real Estate Reality TV - Take With A Grain Of Salt

2011-01-05T09:56:00.056-05:00

The last week of the year is officially couch potato week in my house - a much needed respite from the prior week's mad dash to prepare for Christmas. So, being a real estate junkie, I took up residence on the couch to get my fix via real estate TV show marathons. They confirmed to me that I must indeed be a different kind of REALTOR® for none that I watched mirrored the reality of how I conduct myself in the field - thankfully!

I was entertained, even liked one or two but overall I winced, whined, swore and became downright agitated and concerned as to how my profession and the way we conduct our business are being portrayed. My conclusions? I hope there is a lot of scripting in these so called reality series. Here then is my review of the shows I watched.

BUY ME: Always liked this show but not sure if its still in production. I think it does a fair job portraying the ins and outs of selling properties mostly from the seller's point of view. Nevertheless it's usually about selling at the worst time of year with a fair share of unreasonable sellers and missteps by the REALTOR®. It does provide some educational benefit to sellers and REALTORS® alike.

FOR RENT: About REALTOR®, Jodi Gilmour, who helps tenants find a rental and overcome its shortfalls by sprucing it up for them on the cheap. It appears that Jodi doesn't actually get involved with negotiating the rental for the tenant, but this is one REALTOR® I admire for her positive, friendly and helpful attitude.

PROPERTY VIRGINS: REALTOR® Sandra Rinomato assists buyers with their first ever purchase and educates them as to the process. I like the premise because the expectations, pros, cons, pitfalls, disappointments and the negotiating process actually apply to all buyers. But, it's too scripted. I doubt Sandra in actuality would have a client view properties while she waits outside or asks them to guess the price, one is counter-productive and the other irrelevant.

AGENT VS. AGENT: Follows two REALTORS® from the same brokerage competing for a client's business. Purely fictional in the sense that in real estate terms, the brokerage IS the agent for the client and the reps as employees of the brokerage each owe the same fiduciary duties to its clients. If it involved competing brokerages I might be interested.

LOVE IT OR LIST IT: Hilary, an interior designer promises to make sellers love their home again by fulfilling their wish list of must haves while broker David promises to find the house of their dreams and induce them to sell instead . At worst the sellers will have an upgraded and more valuable home. Entertaining for the banter between the two and great to watch the transformation of the home. But, I have a few issues. It appears that Hilary agrees to the entire wish list before due diligence is peformed. Invariably the budget is blown because too late was it realized that the electrical is knob and tube, the roof is rotten, etc., and, I shudder about the way they sometimes both speak to the clients. More scripting -Home searches always begin with the most unlikely property match to finding the dream home just in time for a decision; The sellers' always have doubt, disbelief and animosity toward the rivals throughout the show but that quickly turns into a love fest at show's end.

MILLION DOLLAR LISTING: Showcases the personal and professional trials, tribulations and rivalry of three young California REALTORS® with very well-to-do connections. Were it not for the different market, fascinating properties and Josh, I wouldn't watch this show. Of the three, Josh at just 24 years old or so is: think outside the box solutions inventive; not afraid to tell the client what they need to know and, always in command of negotiations. It's fun to watch him out-negotiate the other side. Chad, on the other hand is a fellow with serious OCD, a strange image fetish and a weird attraction to a little dog which he carries in a satchel. He will promise the world, knowing full well he can't deliver and before long go back to the seller for price reduction after price reduction. Chad's idea of selling a property seems centred around holding broker open houses catered with expensive foods and a cake in his likeness; an uber expensive ad in some glossy magazine that is more about him than the property and when all else fails, out comes the dog which, remarkably, reduces the disgruntled client to putty in his hands. Finally, Madison is somewhere in between. Only in California - I hope.

SELLING NEW YORK: Featuring the brokers from several of New York's high end brokerage houses as they shop and sell properties valued at $'000's per square foot. Ditto why I watch, except there is no Josh here - not even close. It's actually a vacuous show when it comes to showing what it takes to sell real estate. Aside from the one show where a broker consistently urged her daughter to be sure about moving back to the city and finding the absolutely right property, the admirable quality of client first, begins and ends here. It's all about greed! Commissions come first and the hard sell to get it is unfortunately a sad reflection on those of us who put our clients' interests ahead of our own.

HOUSE HUNTERS/INT'L: The premise involves buyers viewing three properties and then choosing one. It's a house hunt with character scripting limited to the requisite females posing unnaturally with one leg in front and at an angle to the other, no unfolding drama and a happy ending.

PROPERTY SHOP: Follows a way too full of herself broker/owner as she pursues wealth, whines, argues and berates clients. I won't be tuning in again.

Debbie Travis, if you're reading, how about a show that follows buyers as they contend with the search, purchase and sale of their current property?

Should a Buyer rely on A Seller's Inspection Report?

2010-03-24T18:33:00.029-04:00

Considering that multiple offers seem to be today's norm that is a question that many buyer's probably ask their REALTOR in the current market. It is not uncommon to see real estate professionals, lawyers, mortgage brokers and of course property inspectors recommending that sellers are well served by having a pre-inspection report on hand for review by potential buyers.
There are a host of reasons cited as to why this is good for both the seller and buyer. These boil down to:
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The Impact of Flaherty's Proposed Mortgage Change

2009-12-23T10:11:00.008-05:00

Citing future affordability concerns for purchasers who buy properties with less than the conventional 20% down payment and who in the future would face higher interest rates once the economy picks up, Finance Minister Jim Flaherty, is proposing to increase the down payment requirement,reduce the amortization period or both.

The move may seem an assault on Canadian home ownership especially so soon after doing away with 40 year amortization terms, but in Mr. Flaherty's defence, the plan has its virtues - not the least of which is that the high value of the Canadian dollar is adversely affecting our economy. Increased interest rates generate investment in our dollar and often with that its value rises and of course so too will borrowing costs - for everyone. His statement is likely a warning shot that rate increases are around the corner anyway and that all homeowners with mortgages should plan carefully.
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HST Bill Passed -Revised Tax on Home Purchases

2009-12-09T18:00:00.011-05:00

With today's passage of the HST bill, effective July 1, 2010, consumers will be paying an additional 8% tax (provincial component) on goods and services previously exempted from provincial sales tax such as: new residential real estate property where it is used as a primary residence either by an owner or tenant; leased land used for residential purposes and substantially renovated housing.

The good news is that the tax on new residential property was revised to reduce the burden of cost.
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Buyer Beware When Attempting To Evict Tenants

2009-08-18T11:28:00.017-04:00

Recently, a tenanted property I had listed for sale attracted the attention of buyers who wanted the property for their own use. The tenancy agreement was for a fixed term with many months left on the lease.

The REALTOR for one buyer having called to let me know an offer was likely forthcoming mentioned that the buyer will require the seller (my client) to give 60 days notice of eviction to the tenant upon acceptance of the offer. When told that under the Residential Tenancies Act (RTA), the tenancy would have to be assumed for the remaining term, the REALTOR was confident that 60 days notice is all that is required to evict the tenant.These two individuals aren't alone in their understanding of the eviction requirements, I've heard this many times before and I surmise that it may be attributed to the snowball effect - one person says it and it is passed on as fact or, the Residential Tenancies Act was perused only to the point where the reader's understanding was confirmed.
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HST On New Homes Confusing To Some

2009-05-02T11:40:00.021-04:00

Reader's note - Changes to the purchase price subject to rebate have been made/proposed and will be noted under a separate blog entry once the tax provisions have received assent.

Based on some questions I was recently asked on the new HST it is evident that there is some confusion about the calculation of the new tax on homes priced under $400,000 given the different ways the tax effect is being reported. Various publications in trying to explain its benefits or lack thereof mention: 1) 2% tax, 2) 6% tax rebate and 3) zero effect. Without visual calculations, readers are left scratching their heads so I will try to explain what these three mean by using the numbers provided in my previous post and again for expediency although talking about a home priced at no more than $399,999, I will simplify it by calling it $400,000.
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Effects of HST On The Housing Market

2009-04-04T12:52:00.017-04:00

Apparently an average, 2.5% RST is currently included in the builders’ cost of a new home which is then subject to the percentage of mark-up they choose to apply. The new HST calls for the RST to be removed as of July 1, 2010 from the mark-up since it is an end user value added tax. However, any potential savings to the buyer will depend entirely on builders who stand to lose and how they will price their post July 1 completions against their unsold pre July 1 inventory.
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Friends Can Be a Realtor’s Best Focus Group.

2009-02-06T12:30:00.013-05:00

With a wad of mail in her left hand, her right hand quickly slides them one at a time from the top to the bottom of the pile- requests from charities, charge card invitations and flyers – lots of flyers. “Propaganda and more propaganda” my best friend proclaims as she unceremoniously tosses them all into the recycle bin.

I love that word – propaganda, it needs no description.

It seems to have taken on even more significance as the financial crisis unfolds, at least for me anyway as the air waves roll out commercial after commercial each extolling the remarkable success of the products offered by the very institutions responsible for the crisis. The fascinating thing is that propaganda does work – how else to explain the billions spent on advertising and the gall of these institutions to act as though their products are all that? But those are the big boys who can afford to buy in-your-face air time where just being within earshot means the message is delivered to the memory banks. Not so for the rest of us who depend on the written word better known as flyers. We have to hope my friend’s approach is a rare reaction of indifference rather than a nationwide outbreak of the – “are you kidding me?” syndrome I seem to have developed within the last few months when it comes to these commercials.

My best friend is one of three people I turn to for flyer critiquing lest by virtue of my own biased point of view I appear to be, #1 Realtor ever. They are - just give me the goods in five words or less, no fluff allowed kind of people - and until Statistics Canada starts reporting on the number of people disaffected by ‘fluff’ as they put it, I totally trust their points of view.

Anyway, after several revisions in as many days, I just received the nod from the de-facto head of - the society for the promotion of few words, that my latest endeavour is suitable for distribution. Well, it’s not a flyer really but a fridge list with information every household can refer to without having to thumb through papers or surf the net. I truly like to deliver items that my neighbours would use. For last Canada Day, I dropped off flags to about 250 mailboxes in my neighbourhood with a note wishing all a happy Canada Day. As luck would have it, I was invited to dinner by society members two and three and took the handful of remaining flags with me, planted them sans note on each side of their street’s driveways. A week later they were still on display and the feedback I received was that the residents loved it, wondered who put them there and thought it a lovely gesture. Appreciation makes the small effort all worthwhile. But I digress.

It’s an advertising challenge for every Realtor to find a way to provide reasons why we each should be hired and not the next person and particularly so given the advertising constraints by which we are held. We are not permitted to make ambiguous, false, misleading, deceptive or unverifiable claims. That means that when stating: guarantees – a reference to applicable conditions must be made; mentioned commission rates- must be quantified; #1 this or that – must provide a verifiable source. As much as we would like to think we are, calling ourselves the gta/town/city/area specialist, leader or expert is a no no - there’s no such public vote. Likewise is tagging ourselves with titles such as king or queen and claims like, ‘will sell your house for top dollar’ or ‘best price’ can neither be qualified or quantified if called upon to prove it. Draws and raffles can get us into some serious trouble with the lottery and gaming regulators.

Autonomy of advertising a Team is also affected by the rules. In a team, a Realtor would hire other Realtors to deal with clients, bring their own clients over and of course generate new business where all the business is sometimes done in the name of the hiring Realtor only. The concept can create a significant increase in business and when the advertising is done in the hiring Realtor’s name only it provides for some impressive statistics which can be misconstrued as relating solely to the hiring Realtor. Now, all members of the team must be identified where volume of business or trading activity claims are made.

Creative originality doesn’t seem to be our strong suit since as fast as a slogan is coined by one, it is proclaimed by thousands, but considering the above, originality is no small feat.

Of comfort is that my little focus group tells me they’re not enticed by such advertising anyway and have a preference for simple and to the point –k.i.s.s! They are tough cookies, believe me! I am sure, my name, title, brokerage and phone numbers appear on my fridge list only because by law they must. Thankfully so! A phrase I live by surprisingly received the heads up for inclusion too. But, for sure there will be a test of allegiance come December when I nonchalantly check certain fridges to make sure said list is front and centre.

I’ve known the society for 35 years now, or in Realtor parlance that’s a combined 140 years of friendship. In truth, I am more like my friends than not, that is, partial to the k.i.s.s. method and they keep me grounded by ensuring that I don’t compromise the business ethics I stand for. Self-promotion requires a tricky bit of navigation to avoid the propaganda, but, just to ruffle my dear friends’ feathers, one day I am going to produce a flyer and include the combined number of years of experience within the brokerage. At 450+ realtors, that’s enough experience to have sold the Giza plateau to the pharaohs.

Now that is an outstanding achievement!
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Profiting In A Chilly Housing Market

2008-12-19T18:30:00.006-05:00

When buying and selling real estate it is as it is in poker – you have to know when to hold ‘em and know when to fold ‘em because each of the three types of real estate markets has its primary beneficiaries, and in today’s market they are:

- Entry level buyers who intend to hold the property for an extended term.
- Investors who purchase to rent out to the influx of tenants a declining market brings, to sell in the upswing.
- Sellers who will then buy to move up in price and stay for an extended term.

While the first two are obvious, the third is veiled by dizzying promotions and hype that psychologically suggests that if buyers don’t get into the market while it is ‘hot’ they risk being locked out of their dream home. The prudent seller though plans for their future wealth (e.g. retirement), buys up when the market is down and stands to realize a greater return on equity. Allow me to illustrate with some very interesting facts by using property values over twenty-two years from my street.

At the end of the 1987 the year I bought my current home, the average sale price on my street had increased by approximately 37% over the previous year. With housing prices skyrocketing out of control and interest rates hovering near 20% there seemed to be no end in sight to the buying frenzy. Within two years the average price soared by another 42% and those of us who were already on the street were delighted I am sure. Then, as with all housing market cycles it reached its peak and started to slide. In my case, by the end of the sixth year at its lowest, my home was worth a scant 1.3% more than I paid for it – but the value held. I was in finance back then and the accountant in me knew that gains and losses on paper mean nothing to a homeowner until converted. It was to take until year 2000 – ten years after the onset of the declining market for the increase in my home’s value to finally break back into double digit gains. As the market recovered, our street’s average sale price reached a new milestone in 2004 and broke into the next hundred thousand dollar range, jumped two years later by another $35,000 and as of today, our street’s 2008’s average sale price is reflected by an increase of 242.8% over that of 1986. In other words those of us who purchased prior to 2005 still have at the very least the full purchase price of our homes in tact plus a cushion.

Here is an example of how the seller who is moving up in price profits from a declining market:
The seller anticipates selling their home for example for $350,000 and can afford to comfortably carry one costing $450,000 and plans to for at least 5 years. They have; determined that the equity in their current home is no less than the original down payment and calculated that it actually costs thousands less to move up while the market declines rather than while it is rising. Using the 7% decline in median prices for Markham/Unionville since November 2007, and assuming all price ranges are equally adjusted, the seller realizes that a year ago, the two homes were worth roughly $376,400 and $483,900 respectively and the decline in values will result in: paying $7,500 less for the purchase; $678 less in Ont. land transfer tax; lower monthly mortgage fees ( if financed); less mortgage interest, and less in commission if a Realtor is used to sell the property. During the next ‘hot’ market they sell the property and move down (& move up again later on) or, liquidate the gain.

As with some on my street, there are untold numbers who purchased and resold between 1989 and 1996 and suffered a loss of equity in the conversion. Clearly they were not beneficiaries of the declining market. And among the various reasons that one may purchase at the height of the market and sell as it ebbs is the unfortunate circumstance of those who overextend their finances. In today’s market prominent causes for loss of equity can be found among speculators and flippers. They may not have adequately assessed, received or heeded a proper assessment of the market and their objective or, expected the market to keep climbing higher before cashing out and so did not exercise caution when buying to flip.

In a seller’s market, sellers often believe that there is still more growth to come and consequently puts off selling until it is too late. No one knows when a market has actually hit its peak until it starts to decline. Markets rise gradually but once the decline begins the erosion is often swift and deep. Likewise, buyers can find themselves in a similar situation as they wait for the bottom which is only known when prices start to rise. In either case it requires a careful assessment of economic conditions and market trends to recognize and match the window of opportunity to the planned objective.
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The Blame Game on the Housing Market Slump

2008-11-07T10:38:00.027-05:00

Tony Wong, Toronto Star Business Reporter reporting yesterday on the slumping housing market noted that Realtors blamed the "slow sales and lack of consumer confidence on the media," one going so far to say that "people are being misled by the media," a statement Wong declares is supported in a news release by TREB president Maureen O'Neill.

And respectfully to my fellow Realtors, I couldn't agree less!

I believe our profession is far more in tune to the economy and cautionary when guiding our clients in times of economic slowdowns than this sentiment reflects, and we should not be blaming the media for shrinking economies and job losses.
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Welcoming The National Do Not Call List

2008-10-01T20:38:00.012-04:00

I’m ecstatic that the National Do Not Call List now in full swing in Canada will take care of 25% of the unsolicited phone calls I get from hawkers of all stripes, it’s better than nothing.

Maybe.

That seems odd coming from a Realtor I know, but, I’ve never picked up the phone to solicit strangers because I truly dislike having my privacy interrupted by such calls myself. How many times after all, can I possibly have my ducts cleaned or windows replaced in one week? And there’s just not enough weeks in the year to take all those vacations and cruises I’ve won through contests I’ve never entered.
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Now I’m Ready For A Do Not E-Mail List

2008-10-01T20:28:00.053-04:00

Yes indeed! I’ve engaged the spam filters provided by Sympatico, Windows and my firewall, blocked the unwanted and set them as junk mail and still my inbox is assaulted on a daily basis with all manner of spam enticing me in every way with promises of good fortune and income beyond my wildest imagination. Numerous offers to work for a team all number 1 in some statistic or other. I can only guess that as an inductee I would be doing the prospecting, listing, buyer showings and even negotiations in the name of the point person who gets the cumulative bragging rights and an enormous chunk of the commission.Invitations to attend the launch of development projects with the offer of a bonus or a larger than usual commission to bring buyers. My clients would be tickled pink I’m sure to know that I steered their purchases into my pocketbook.
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Morgtage and Loan Crisis The 80s all over again?

2008-09-16T16:04:00.018-04:00

At first glance at that question you probably are thinking – she’s nuts, what is happening now is far different to what happened back then.

But is it?
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My .02 cents Worth on FSBOs.

2008-08-15T16:13:00.009-04:00

In my net travels for all things realty, I happened across more than one forum feud between fsbo’s, fsbo facilitators and Realtors®, cyber shouting over each other as to why one is better at delivering the sale of the listing than the other. To my astonishment the rhetoric can get pretty ugly as each side tries to prove the other is soon to go the way of the dodo bird.

As if capitalism is going away anytime soon!

The Real Estate Market 's Next Trend

2008-08-15T16:08:00.006-04:00

Readers of my newsletter, please accept my apologies for my tardiness in posting this.

It is my opinion that the real estate activity in 2007 was an anomaly effected by home buyers rushing to avoid the double land transfer tax imposed by the City of Toronto and take advantage of the less stringent mortgage vehicles. If we are to attempt to make any sense of the glaring disparity between 2008 and 2007, thereby avoiding a skewed analysis, it becomes necessary to recall the last year the market trend was static – 2006.

The Market Perspective – My Two Cents

2008-06-06T12:15:00.006-04:00

It’s been a splendid run for the real estate market since 1996, we had all become accustomed to reading the reports about the best ever months and years that the monthly news (TREB^® Market Watch^®) so far this year of slumping house sales is softened only by the but factor… “but prices are up.” May’s rally of 649 more units sold than in April is reflective of it being the historical peak month of the year. In comparison May 2007 registered 11,146 sales with an average of $383,787 while May ’08 declined to 9,411 sales with the average climbing to $398,148.

Seller Property Information Statement - To use or not?

2008-06-02T17:40:00.006-04:00

The SPIS for short is a statement sellers may opt to complete to provide disclosure on facts pertaining to their property. Disclosures run the gamut from how long the seller has owned the property to material problems the buyer should know. The form declares several associated points of note: It is not a warranty provided to the buyer; it is designed in part to protect the seller; the buyer should make their own enquiries and the brokerage and salesperson shall not be held responsible for the accuracy of the information.

A view on the I'll Buy your house guarantee

2008-05-14T19:37:00.017-04:00

In a recent discussion with a friend a question was asked about the merits of a Realtor’s guarantee (the promise) to buy the home if it does not sell in XX days, and if I would ever consider making such an offer. I’ve not had the opportunity to read this type of agreement between a Realtor/Brokerage and a seller so I couldn’t say with any degree of certainty what the exact terms would be and certainly there are variations as well. However, having read advertised claims and disclosures on web sites I get the gist of the underlying premise and some of the terms behind the promise. It is something like this:

The Multiple Offer Mambo

2008-04-28T18:20:00.014-04:00

Sellers, raise your hand if you would love to be at the receiving end of multiple offers. Buyers, raise yours if you would like to be at the offering end. That’s what I thought, sellers yeah, buyers nay. Okay, switch hats, now what’s your answer?

A 261 Page Rule Book, Used Cars and some Tylenol...

2008-04-24T20:10:00.009-04:00

When the Real Estate Business and Brokers Act. 2002, (REBBA) landed in my mail box in 2006, a gift from the Real Estate Council of Ontario to all 50,000 or so member realtors, the thump it made quite frankly ended up giving me a headache. I was expecting the package since the act itself was written in 2002 but not in force until ’06, while the real estate courses I had to take before being granted Realtor status were laden with the provisions of the document.
The news of its existence resonated from the instructor’s mouth to my ears as I sat in that first classroom and the floor jumped up and inflicted a mighty bruise on my jaw.

It’s wasn’t that there were all those rules and regulations, but that there were all those rules and regulations now codified as law. I’ll explain it this way. Internet Polls indicated that the general public ranked Realtors barely above used car salesmen.

Well what the heck am I getting myself into? was my thought. I mean, I wasn’t exactly void of experience with realtors. When I bought my first house when Latin was still a subject, it was through the seller’s realtor and although the house had more unanticipated problems than I could shake a stick at, when the time came to sell I just figured he wasn’t a very good realtor and used someone else. Carole, if I recall the name correctly, was a doll, a tough cookie and sold my house with great results. But in those days, realtors stayed within certain boundaries, and my next purchase and current house was going to be in a small town an overwhelming 30 minute drive north into the sticks.

You know you’re in the sticks when twice a year the fresh aroma of manure hangs for two days like Broom Hilda’s cloud over the town, but I digress.

Carole couldn’t help. As luck would have it though we ran into Kathryn. Iin retrospect I think she was fairly new to the game, but to this day Kathryn is my role model and a competitor I highly respect. During my bean counting years, I also had the pleasure of dealing with some extraordinarily talented commercial realtors and if I can brag a bit, taught them a thing or two when negotiating for a fortune 100 insurance carrier. All in all then my memories of the profession was favourable.

As it turns out most of these rules and regulations were provided for under an umbrella of various codes of ethics developed and instituted by several Realtor associations. But what was with the almost a used car salesmen rating? The picture I formed of the publics' perception upon meeting me and before I even opened my mouth wasn’t at all pretty… ‘who is at the door honey?’ – ‘looks like a used car saleswoman no doubt wanting to know if we’re interested in trading in our house for a newer model with a simonized interior.”

The rules and regs were established over time partly from the self-regulating industry’s desire to ensure the members were professional, forthright and knowledgeable when serving the general public and partly from complaints made by the public themselves. Without the force of law behind the R and Rs, penalties were pretty much just that – penalties. REBBA threw the full force of the law behind them, added some more and can constitute some very tough punishment from the courts. My first purchase could have been the ultimate model for pretty much the whole rule book.

As we studied some of these R and Rs in the courses, examples of cases where they were breached were provided and even though it was painlessly obvious to me that the gist behind them all smacked of common sense and a do unto others as you would have them do unto you attitude, it was easy to understand our standing in the publics' eyes.

Later, I’m already registered as a salesperson and practicing my new profession when my gift shows up at the door. I take some time to read through the whole kit and caboodle and by the end, my eyes are twirling in their sockets and my head was in dire need of Tylenol. If by chance I wasn’t a law abiding citizen with only ~~one~~ two speeding tickets in my entire life, I was surely going to be now just to make sure I don’t find myself on the wrong side of interpretation…

Subject to subsection (2) and (3), the power to make regulations under subsection 50(1) of the Act is delegated to the board of administrative authority. O.Reg. 581/05, s.1 (1)

The authority to make regulations under paragraph 20 of subsection 51 (1) of the Act that require information required under the Act to be in a form approved by the Minister is not delegated to the board of the administrative authority. O. Reg. 581/05, s, 1 (2)

A regulation made by the board of administrative authority pursuant to subsection (1) is subject to the approval of the Minister. O. Reg. 581/05 s, 1 (3)

If you get my drift. And I think it resonated the same way throughout the profession – by last report we had leaped past the legal minds the likes of who would be responsible for clauses like that, I bet we had a say in the vote that time
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A Canadian Real Estate Blog

2008-04-23T17:49:00.011-04:00

I couldn't fight it any longer - this 21st century phenomenon called blogging, well that and the fact I actually like to write and have a fair bit to say about real estate. Hopefully, my posts will prove a worthwhile read to all who care to drop by and I promise to keep them not just informative but also on the lighter side of real estate. Yes, it is true, Realtors have a sense of humour too. I have to warn you though the majority of my career was spent as a bean counter so my humour might be a bit compromised.

Thanks for dropping by and please let me know your thoughts or questions if you have any. I won't be soliciting anyone since I am a passive resistor of intrusive solicitation myself.

Oh, by the way, rules and regulations require me to dislose my professional status etc., that is why you see my full name, title brokerage and address.

Penny Elizabeth Dutkowski, Broker
HomeLife/Bayview Realty Inc., Brokerage
Thornhill ON. (905) 889-2200

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