Realestock Blog

Ah January – a time for prognostication. Everyone channels their inner Nostradamus and attempts to make sense of the swirl of information around them – trying to figure out what’s relevant and what’s not. Sure there are tons of prediction lists that come out at this time of year, but we at Realestock are going to try something a little different with ours - we’re actually going to hold ourselves accountable. In December of 2011, we’re going to look back and try to determine which of our predictions were right, which were so-so, and which were so very, very wrong.

So what do we think will happen in real estate this year? We’ve boiled it down to 6 firm predictions:

1. The market will stay flat, but people will still look towards a recovery, and every small rise and fluctuation will start people talking all over again. The markets are looking up, and stocks are rising, but job growth is still looking slow and that means we don’t think the market is going to leap up towards previous levels. The CREA is predicting Canadian home sales to fall by 7.3% overall in 2011 and we agree with them.
2. Low prices means affordable prices – those who can buy houses will continue to do so, driving modest sales and making starter homes attractive. Due the excesses of previous years, people will be a lot more conservative in their choices – looking to stay well within their means and choosing more affordable homes.
3. Renting will be cool again. Yes, really. Even with low rates and affordable prices, many will opt to rent for longer to save up bigger down payments to keep their mortgages low and affordable in the long term. People have learned the lessons from the disasters of Adjustable Rate Mortgages in the US, and we think people will wait longer to avoid being caught by sudden rate hikes.
4. Governments will continue to keep interest rates low and mortgages attractive – even in places with hot real estate markets like British Columbia – we think rates will stay right where they are in some places and very gently rise in others to avoid unbalancing a slow economic recovery.
5. It’s tough out there for mortgage brokers and real estate agents. And it will continue to be. Sorry guys.
6. Realtors and developers and brokers will get smarter – not work harder to stick it out. In order to differentiate themselves in a tough market, real estate experts will continue to blog, tweet and socialize themselves into a market position. Social media aggregation will be a big trend this year, with more and more companies using neat tools like these social media hubs to collect all their content together and make their lives easier.

Sources: Top 10 Real Estate Predictions for 2011, Elizabeth Weintraub; BCREA Housing Forecast; 2011Real Estate Outlook, Jerry Barker; 2011Canadian Real Estate Market Forecast and Prediction, Kurt Hemmerling

Picture: KayVee.Inc

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New year, fresh start? If you’re thinking of moving, or waiting to make a big move in the new year, selling your home is the first step. So, how can you make your goals a reality? Here are some simple tips to make your home sell.

1. Price it right: The first step to selling a property is setting it at the right price. Prices should be set against the prices similar properties are selling for – not what they’re being listed for. In a buyers market, a competitively priced house will sell long before one going for more than the market will bear. There are people who want to buy, but they want to buy at the right price.
2. Fix it up: Nobody wants to buy a property with a huge to-do list built right in. Even small repairs can put off buyers, so get a critical friend to come and help you see what touch ups and repairs need to be done.
3. Make it look great: This is just common sense – tidy, remove clutter and clean the crap out of your home. Stage your furniture to show off your home’s best assets – you’ll impress buyers and show off the best assets of your home.
4. Offer incentives: Adding too many premiums can make sellers look desperate; however incentives like help with closing costs can encourage buyers. If you want to make your realtor work for you, offering a bonus on the commission for a speedy sale can work wonders.
5. Be prepared and be flexible: Have a plan in place – know ahead of time what price cuts you’re willing to agree to, and what you won’t. When you plan ahead, you’ll be able to move quickly on the offers you receive.

Thanks for reading the Realestock blog in 2010. We’ll be back in the first week of 2011 with even more great tips, tricks and industry advice!

Photo: The Truth About Mortgage

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Is it the HST? Creeping interest rates? High prices? Something is killing the Canadian real estate market - Canadian real estate sales have dipped sharply – and expectations should be following suit.

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More and more real estate agents are investing in Customer Relationship Management software (CRM) because they’ve been told it will make their lives easier and increase their sales.  Adopting a CRM system isn’t a magical sell-more solution for realtors though.  There are no guarantees that it will make a business more productive and more profitable – the only guarantee is that it will cost money! According to research firm Meta Group Inc, 55% to 75% of CRM solutions fail to meet their initial objectives. If that initial objective is increasing sales for a realtor… then what customer relationships is that software actually managing?

That said, as many real estate agents will tell you, a successful CRM system is an incredible tool for them – allowing them more time, more flexibility and more automation in their day to day tasks.  So, the decision – should you take the customer relationship management plunge –  is not an easy one.  Only you can determine, based on your personal needs if a system will be a boon, or just a money wasting bust.

However, to ease the decision making process, we’ve done some research and put together a short quiz. Give yourself 2 points for a yes, 1 for a maybe and zero points for a no – then tally up your scores and see how you did.

Scores:

0–4: While many real estate agents swear by customer relationship management software, you probably don’t need it.  Your business seems to run well the way it is, and there aren’t a lot of direct benefits to be gained for the cost of a real estate customer relationship management system.

5–8: You answered with a lot of maybes, and that’s where you are with CRM – maybe you need it, but maybe you don’t. There is room for improvement, but before adopting a potentially expensive solution, you may be able to use your existing system better.

9–12: What are you waiting for? You know what you need to do with your customer data to take your business to the next level – so go out there are do it! If you’re in this category, you would benefit from implementing CRM software. Start putting together a list of your requirements, and determining which solution is right for you. You won’t regret it!

Photo Credit: Lincoln Mondy. Flickr

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Any Realtor will tell you that Real Estate is a competitive industry – between competition from other agents, demands from clients, and the breakneck pace of technological updates to keep up on, it’s not surprising that some agents might be wistful for the simpler days when adding their listings to MLS, printing out some direct mail pamphlets and taking out a few advertisements in the local paper were their real estate sales tools. 
So how are successful agents marketing property now? How do you sell real estate today? It’s as simple as BYOB. No, not Bring Your Own… Beverage…
The new sales tools are all about setting up a Brand, using Yourself as a tool, getting your listings Online and setting up a Blog.

Brand
Chances are when you are thinking about a major purchase, you’ll gravitate to a brand that fits your needs. How do you know that a Honda is a better fit for you than a Hummer? Simple – if you’re looking for a car that’s reliable and fuel efficient, you know that Honda is a brand you associate with those qualities. If you already associate a brand with the things you’re looking for, you’ll turn to that brand when you want to buy.
Real estate is no different. A potential client is looking for an expert in the type of home they want to buy or sell. If someone is looking for to sell their high end downtown condo, they’re not going to start with a real estate agent that is primarily in the business of selling family bungalows.  Take what you know, and make it your brand. If you have a lot of interest in local history and architecture, brand yourself as a Historical Homes Expert, and use your knowledge to connect to people who want a heritage home. Drive sales using a unique brand as a real estate tool.

Yourself
If you feel that Twitter and Facebook are replacing ‘real’ interactions with people, you’re about half right. Yes, people are increasingly socializing online, but that doesn’t mean that they don’t want to actually socialize – quite the opposite. In the age when anyone can connect to anyone else, the best real estate sales tool you can have is… yourself! Engage your twitter followers, follow your local hashtag, attend things like ‘tweetups’ and actually become friends with the people you talk to online.  Put yourself out there as not only a real estate agent, but a friendly, local expert.

Online
Putting a listing onto MLS is now just one sales tool. Creating a website to showcase your listings, putting videos of house tours up on YouTube (way better than just a few photos), using location based listing services and specialty real estate websites can greatly increase the chances that a listing will be seen. There are numerous online real estate tools that can be used to market and sell real estate and not just to locals – buyers from other areas, and people looking for investment properties in other markets are likely to use online services to find properties. Getting online and getting exposed is the way to sell real estate.

Blog
When you want information on something, you probably hop online and Google it. Looking for a Realtor is no different. So how do you make sure your name, and your website comes up first? Blog, blog, blog! 

A blog demonstrates that you know about the local market, have good insights and are at the top of your game.  It also gives a search engine something to find you with. If you want to position yourself as the top seller of high end condos in Vancouver, start a blog – they’re one of the most powerful real estate sales tools.  If your blog has lots of posts about condos, apartments and downtown Vancouver living, it’s more likely to be picked up by search engines; therefore, when someone searches for “downtown Vancouver Condos Real Estate Agent” your blog will be one of the first to show up.

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Luxury real estate sales in Canada are soaring, breaking pre-recession sales records as buyers are capitalizing on low interest rates and increasing economic confidence.
RE/MAX released its first quarter Upper End 2010 Report on Monday, showing a marked increase in luxury home sales in markets across Canada. The report noted that, "Canada's sound banking system, political stability, and strong dollar are attracting foreign investment -- and that is spilling over into high-end residential real estate.”

According to Wayne Schrader, a RE/MAX Broker/Owner and specialist in luxury properties on Vancouver Island, consumer confidence is playing a big part in the rallying sales.
“Markets are picking up and turning the corner,” said Schrader. “People are realizing the big recession didn’t materialize in Canada, and at the same time, prices have come down and are much more attractive.”
The Conference board of Canada echoes Schrader’s sentiments - its economic forecasts predict the Canadian economy will grow at a healthy 3.2% in 2010. An upswing in the economy makes the current market conditions even more attractive, as buyers take advantage of the current low interest rates, noted Schrader.
But why have sales increases have been so sharp, in some cases bettering years that were fueled by the white-hot real estate markets of the time? According to Schrader, and the report, they key is balance.
High end property prices have softened from their previous peaks explained Schrader, which can make luxury real estate look like a better investment for some buyers.
“Ample opportunity and a good selection of product exists, and savvy purchasers are taking advantage of favourable conditions,” said the report.
According to the Elton Ash, Regional Executive Vice-President of RE/MAX in Western Canada. the luxury “segment of the market was hardest hit when the recession took hold, yet its comeback has been fast and furious.”
Comparative sales figures back up Ash’s statements. In the first quarter of 2009, high end property sales had slumped - only 411 properties classified as “upper end” were sold by RE/MAX across Canada. This year, the number has leapt to 1,111 - an increase of more than 170%.  Comparing that to 2008’s first quarter sales of 894 high end properties shows overall sales in Canada are still up almost 24% over pre-recession numbers.

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A few weeks ago, we posted an entry with 10 tips on what to include-and how you should take a great set of photos to showcase your property for sale.

While I was writing that particular blog post, I stumbled upon a website known as Lovely Listing.com. Their tagline is ‘Odd Finds in Real Estate’.

After taking a look at the website, I would say that it’s definitely ‘odd finds’ in real estate.There are features, items and issues that should never be showcased in photos to sell a home and yet, are taken by actual real estate agents and homeowners wanting to sell their properties.

As a tribute to Lovely Listing.com, here’s a list of the top 10 features you should never include in photos of your property.

1. Bathrooms with uncovered windows. Now, there may be prospective home buyers who desire to have natural light and air circulating through their bathrooms. That being said, I don’t think they would appreciate having an open window in their bathroom that faces the neighbors and allows them to share the intimacy.
2. Kitchens under renovation. Understandably, many homeowners want to renovate before putting their homes on the market to boost its value. But is it necessary to include a photo time line of every step of the renovation? Buyers want to see the finished product, not the process.
3. Bedrooms with lava-colored carpeting. Now, we understand that that particular carpet color was all the rage back in the 80s. Nowadays though, buyers are interested in modern and contemporary features and lava-colored carpeting just doesn’t cut it.
4. Guns hanging next to the kitchen window. Everyone has their own interests and we’re not discriminating against anyone. But, really, guns? What if the potential homebuyer has children? Not the safe haven we all imagined our dream home would be….
5. A family barbeque on the back patio. Homeowners have lives and the right to enjoy their homes with anyone they wish. But, personal photos of your family memories really have no business being in the real estate listing to sell your home. After all, people want to imagine their family having a meal in the backyard, not yours.
6. Mold in the basement. Common sense tells us to remove all harmful substances or debris from our homes for our family’s safety. Why would you want a picture of the evidence to end up in your listing?
7. House in a bubble. I understand the desire to be creative with your photos. Really I do, but how is putting your house in an actual bubble adding to the appeal? If anything, it does lend itself quite well to jokes about the current housing market.
8. Dark photos of people. I mentioned in the previous post about being careful in including people in your photos. It doesn’t help for a prospective buyer to imagine what their new home may look like with people breaking in.
9. Outhouses in the backyard. See my above comment about the lava carpet, it still stands for this.
10. Living rooms with couches on the ceiling. Remember what I wrote in the previous post about taking a lot of photos so you can fix what’s wrong in the room? This is exactly why you should do that.

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You might remember a blog post where we talked about the Top 10 Tips on Property Photos. We gave the best tips that we could find on how to take-and what to include-great property photos to help sell your listings.

After thinking about it, we realized that photos are not the only element that drives a buyer to a property. So why not expand on that list? Here are the top 10 tips on how to make your listings stand out from the competition (including the photos!)

1. Photos, photos and more photos. We won’t go into detail here, only to say that the higher quality of the photos, the more appealing it is. Refer to our post about property photos for more details.
2. Include special extras. As we said before, photos aren’t the only thing potential buyers are interested in. Think about including a floor plan, maps or photos of the neighborhood to show them where they’d be living.
3. Virtual tour or not? What about a virtual tour? They show more than what photos do and allow house hunters to ‘walk’ through the property and see it for themselves. Think about whether or not there are unique features in the home that you especially want to call attention to.
4. Sales pitch. The language you use in the listing helps as well. Use compelling sales language and make your description as in-depth as possible. Highlight the features, the area and lay it out logically. It has to be accurate right down the spelling and grammar. Consider writing an intro to the listing before getting down the sales pitch.
5. Add more information. Prospective buyers are hungry for as much information as you can give them. Describe the neighborhood, talk about how the home is animal-friendly, or list the price guide.
6. Aim for the top. Look for the premium option in advertising packages. It will help position your listings higher up on the totem pole and catch the eye of more buyers.
7. Take advantage of features. Grab everything you can on paid for positioning, audio, mapping, info sheets and neighborhood data. It’ll put you ahead of the pack in terms of a complete package for buyers.
8. Dare to be different. Does your listing merit a special open house or something else?
9. Stay ahead of the game. Do your research on competition and your market. Could you utilize more features on the portal?
10. Flaunt it. Tell everyone you know about the property. Email it, blog it, tweet it, facebook it, talk about it, make phone calls about it, link to it, whatever it takes.

And finally, make sure your listing is kept 100% up-to-date, and this includes saying when it’s been sold.

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As house hunters scour the listings for the property of their dreams, the next best thing to viewing the property themselves is a fantastic set of photos. Photos give potential buyers visuals on what features a property has and the layout. It is the very first impression that house hunters receive of a home and it can intrigue them as easily as it can turn them away from purchasing the property. After all, pictures are worth a thousand words and a beautiful set of photos go a long way to turning a house hunter into a buyer.

There are a few things to keep in mind in order to take great photos. Here’s a list of 10 tips on how to take amazing property photos.

1. Cover all of the essential features.  Make sure you give prospective buyers every angle and shot on the essential rooms and features inside the home. Rooms that are absolutely crucial to a property and shouldn’t be left out include the bedrooms, bathrooms, kitchen, living areas and the backyard if the property has one. Also, include special features such as fireplace or pool as these could be selling points for buyers.
2. More is best. Don’t be afraid to include as many photos as possible. A floor plan is also a great inclusion if it’s possible.
3. Watch for intruders. Is there something in the photos that shouldn’t be there? Take more than one shot of an area so you can see whether furniture is misplaced or items are in a room they shouldn’t be and fix it for the next photo.
4. Watch the weather. While it’s not something you can control, photos showing an overcast sky or dreary afternoon light should be avoided. You can work around this with different camera setting or Photoshop, of course, but it is best not to overdo it.
5. Don’t leave buyers hanging. Taking a picture of only one side of the room, even if it’s to focus on the best attributes can make potential buyers wary of what’s lying outside of the frame.
6. Work different angles. Taking different angles of the same area gives prospective buyers the sense of perspective. Avoid the temptation to take crooked angle shots or use the wide angle lens, however.
7. Be careful with the flash and mirrors. Remember to turn the flash off in rooms that have lights on or if you’re taking a photo that includes windows. Also avoid taking pictures of yourself in front of a mirror.
8. Give a sense of life in the home. De-cluttering is a great idea to allow house hunters the space to imagine living in the home, but don’t go too far. Bare rooms signify a lack of care in the home, but going out of your way to include obviously constructed scenes will only give buyers a sense of falseness.
9. Know your camera settings and your tripod. If you’re taking the photos yourself, you have to understand the aperture, shutter speed and ISO to make your photos work harder for you. Shooting interiors at a slower speed for instance, makes them look better. A garden can look better in shade, and in harsh sunlight you might want to use a flash. There are courses you can take to learn more about how to make your camera work for you.
10. If in doubt, see the pros. While it is more expensive to hire a professional photographer, it could be well worth the cost.

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