Why Are So Many Realtors Difficult To Get A Hold Of?

I don't really do much "ranting" on this blog, but every now and then something comes up that compels me to throw in my 2 cents...

I’m sure that many of you have come across a property on Realtor.ca and submitted an email request for more information.  Or you’ve driven by a “for sale” sign and phoned the number to inquire about the list price, etc.  How long did it take for the listing agent to respond?  24hrs?  3 days?  Never?

At a time when almost everyone is connected by way of cell phone, smart phone, notebook computer, etc, there’s no excuse not to make yourself easily reachable and reply within a reasonable amount of time.

I fully appreciate that we need to set boundaries so that our work life doesn’t negatively impact our home life.  Especially in an industry where there are no "set hours".  I’m all for shutting off your phone/email at 10:00pm (or whatever time your specific situation deems reasonable) and not re-connecting until the following morning.

That’s not what I’m talking about here.  I’m talking about realtors who make themselves unnecessarily difficult to get a hold of, no matter what the time of day.  I’m talking about realtors who even refuse (or neglect) to at least publish their email address on their website.

What’s the logic here?  If you’re in a service-based business doesn't it make sense for potential clients to be able get a hold of you?  As a realtor, isn't it reasonable to make yourself available outside of the 9-to-5 norm?  Isn't that part of what you're signing up for when you get into this business?  If you have a listing, aren't you doing your client a disservice when you fail to follow-up on inquiries from potential buyers?

Even on a realtor-to-realtor basis I sometimes see this as an issue.  There've been a number of times that I’ve tried to get a hold of another agent, only to find that;

• Their email address is nowhere to be found online.
• Their direct line is nowhere to be found online.
• Their office refuses to release any of the above info, regardless of the fact that I’m a fellow realtor!

My only option is to have them paged through their office, which can produced mixed results and leave me wondering if the page ever actually went out.

Realtors - do yourself (and everyone else) a favour...  Keep your contact info up-to-date, make yourself available to inquiries, and respond in a timely manner.

There.  I'm glad I got that off my chest :-)

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info. I promise you, I'm easy to get a hold of.

Condo Ownership: What To Expect

In the city of Toronto there are realtors who focus specifically on condos, and there are realtors who focus specifically on houses. There's a third group as well - the realtors who focus on both condos and houses.  I'm one of those guys.  Condos and houses each offer their own unique set of challenges, opportunities, and rewards.  I can't imagine giving up one for the other.

When it comes to buying/selling a condo versus buying/selling a house, there are a number of key differences to keep in mind.  Part of my job is to educate my clients as to what these differences are and to make sure they understand how condo living differs from freehold ownership.

I've written articles in the past focusing on condo-specific ownership issues (for example, take a look at my article on status certificates here, or my article on condo townhouses here).  The Toronto Real Estate Board has posted a few of their own articles on condo ownership as well.  I've re-printed one of those articles in full, below.  Take a look...

Following is the article, "Condo Ownership - What To Expect", as it appears on the Toronto Real Estate Board's website:

If you are considering the purchase of a condominium in the Greater Toronto Area you are one of many residents who recognize the numerous benefits of this type of property ownership. Offering affordability, proximity to desirable areas and limited maintenance, it’s no wonder that condominiums now represent one in every three resale home transactions in the GTA.

Before proceeding with your purchase though, it’s wise to gain an understanding of how condominium living differs from freehold ownership. As with any type of purchase, the golden rule when buying a condo is to get everything in writing. If you’re buying a new unit you can expect to receive a disclosure statement. It includes a description of the project’s most important features, bylaws that govern the corporation, rules that regulate owners’ living environment and the condominium corporation’s budget for the first year after registration. Incidentally, during the first year after registration, the condo corporations must undertake reserve fund studies, performance and turnover audits, and if the cost for such common expenses is underestimated, your developer must pay the difference.

If you are planning to buy a resale condominium, you should request a status certificate, which offers similar information and confirms that the owner is current with common expenses. It costs $100 and must be delivered within 10 days of request.

While the purchase of a resale condominium includes a firm closing date, the move-in date for a new condominium can be years in the future. In this case, the developer can extend closing dates but if your unit isn’t ready by their outside closing date, you can terminate the purchase agreement. Your developer will have the option of terminating the agreement as well, if they can’t meet certain conditions including sales of units, planning approval, and financing by specific dates. In this case your deposit is refunded with interest.

It’s more likely though, that you will be able to move in, beginning with an occupancy closing, which takes place until the condominium corporation is registered. In this case, until you take ownership you’re responsible for paying common expenses, realty taxes and interest on the purchase price’s unpaid balance, which is due on closing.

Once the developer loses majority control of the project, within 42 days all new owners may elect a Board of Directors, consisting of at least three Directors. Their responsibilities are significant. The Board must ensure monies are held in trust, funds are properly invested and records are kept. They can hire personnel to maintain common elements, enter into legal contracts with a percentage of owner consent, and buy and sell property for the use and benefit of owners. The Board also enforces the condominium’s documents (bylaw, and rules and declaration) which specify the units and common elements, each unit’s share of ownership, and the types of costs included in monthly expenses.

As an owner, you have many responsibilities as well. You are responsible for your mortgage, property taxes, common expenses, and fees to cover special expenses. Like the Board of Directors, you are bound by the condominium corporation’s declaration, bylaws and rules. The rules for example, will likely prohibit you from making structural changes without prior consent. You can’t damage or neglect your unit as doing so affects all property values. Similarly, you can’t do anything that may jeopardize the project’s insurance coverage. Common area changes are also off limits without prior consent.

Whether you are buying new or resale, it’s wise to enlist the services of a REALTOR® to ensure that you’re clear on all of your responsibilities with respect to condominium ownership. For more information visit www.TorontoRealEstateBoard.com

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

Will Mutliple-Offers Make A Comeback This Fall?

On Tuesday I helped a client of mine purchase a great 2 bedroom + den/2 bathroom condo in St Lawrence Market.

The unit had only been on the market for 5 days, yet we found ourselves competing with two other buyers.

The sellers purposely listed the property approx 5-6% under market value and held-back on reviewing offers until after the long weekend.

Needless to say, the property sold firm for over asking.

Sifting through the listings that popped up this week I noticed that a few other sellers are choosing to go with the “Hold-Back on Offers” strategy.

How will this play out for them?

It'll be interesting to watch and see.

It's no secret that our market has experienced an increase in supply and a decrease in demand over the past few months.

And "multiple-offer scenarios" certainly haven't been happening nearly as much.

I can tell you that if a property is under priced, shows well, and is located in a highly desirable area, it'll likely attract strong interest, no matter what the "norm" is.

Will multiple-offers make a comeback this Fall?

That depends largely on what sort of prices sellers are expecting to get, how many motivated buyers are in the market, and what's out there for these buyers to choose from.

We'll see...

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

Who's Going To Buy My Property If They Also Have To Assume My Tenant?

     In the Toronto real estate market, tenanted properties come up for sale all the time.  Listings for houses with basement tenants, for example, are quite common.  And there’s certainly no shortage of renter-occupied condos for sale.  There’s one very important distinguishing question for the potential buyer of such a property though, “Can I take vacant possession or do I have to assume the tenant?”

If the tenant must be assumed (i.e. they’re not yet at the end of their lease term and arrangements can’t be made for an early termination) the pool of potential buyers shrinks significantly.  Essentially, all that’s left are landlord/investors or buyers who love the property so much that they’re willing to become landlords themselves until they can move in at the end of the lease term.

In the case of a house with a basement tenant, it’s not so much of an issue.  There are actually a number of buyers looking specifically for a house with basement rental income to help pay their mortgage.  So the fact that there’s an existing tenant can be a real bonus.

With condos and lofts however, a tenant that must be assumed can prove to be a tougher sell.  These properties often sit on the market longer than others.  Not always though...

Just this month I worked with a buyer from Ottawa looking to purchase a condo for investment purposes.  We started out visiting the sales center for DNA 3 in the King Street West/Liberty Village area but then decided that a resale property was a better alternative for her (Pre-Construction versus Re-Sale is a subject worthy of its own entire blog post, so I won’t get into it here...). 

We spent a few days viewing what was on the resale market, crunching numbers, and talking through the different scenarios at hand (“How much do you think we could rent this suite for versus that one?”  “Which of these 3 buildings has the best potential for future value growth?”  “Could we get more money if we rent out the parking space separately?”). 

One of the best properties we saw actually already had a tenant in it and they were only halfway through their lease term.  In the end, this is the one my client chose.  She was happy to buy this particular condo knowing that she could assume the tenant and immediately start collecting rent without having to spend the time, money, and effort required to find and qualify a tenant from scratch.

This is a great example of a situation where having to assume the existing tenant actually worked in the seller’s favour.  Generally, these properties can take longer to sell.  But here the sale happened quite quickly.  As so often happens in real estate, it was a matter of the right buyer coming along at the right time.

If you’ve got a tenanted property to sell and would like to find out more about my services, feel free to contact me for more info.      

If you're thinking of buying a tenanted property and would like to know how I can help, feel free to contact me for more info.

The Benefits Of Signing A Buyer Representation Agreement

     The Toronto Real Estate Board recently posted the above video on their YouTube channel.  While it does a good job of pointing out some of the reasons why one should sign a Buyer Representation Agreement, I thought I could expand on this a bit further.

For starters, here’s a list of some of the key benefits of signing a B.R.A. (this list and more info can be found on TREB’s website dedicated specifically to the B.R.A., www.brafirst.ca):

• Reassurance of the duties the brokerage owes to the buyer.
• Included in those duties is full disclosure of all property information known to the  brokerage about a particular property
• These duties help to ensure that you receive expert, professional advice from your REALTOR
• A listing on the Buyer Registry Service, so selling REALTORS can find you easily because your home “must-haves” can be registered
• Peace of mind that your best interests will be protected
• Diligent and attentive service

What is a Buyer Representation Agreement?

Essentially, the B.R.A. is a contract between a real estate brokerage and a buyer.  The brokerage promises to provide a set of services and owes the buyer a number of fiduciary duties (accountability, confidentiality, full disclosure, etc.).  In return, the buyer agrees to work exclusively with the brokerage in their search for a home.

Among other things, the B.R.A. also specifies the geographical boundaries of the home search, the type of property being searched for (e.g.  “single-family residence”), and the commission that the brokerage shall receive (which is most often paid by the listing brokerage or the seller).

If I sign a Buyer Representation Agreement do I have to purchase a home?

It’s important to note that, while a B.R.A. is an exclusive contract, there is nothing in the agreement that says you must buy anything.  I’ve had buyer clients change their plans, mid-contract, and decide that it’s just not the right time for them to purchase a home.  No problem.

When should the Buyer Representation Agreement be signed?

Realtors are required to have a B.R.A. signed prior to their buyer clients signing an offer-to-purchase a property.  Generally, it's best to have the B.R.A. signed and dealt with as early as possible so that everyone involved is fully aware of the all aspects of the buyer-agent relationship. 

While there are some realtors out there who won’t even step foot into a property with a buyer client until they’ve signed a B.R.A., I personally like to go out once or twice with them before we make that commitment.  It’s a two-way street and not only does a buyer have to be comfortable moving forward with me as their realtor, I need to be comfortable with taking them on as a client. 

If you've got any questions about the B.R.A. or would like a more detailed explanation of its contents, feel free to give me a shout.

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

Is A Home Inspection Condition Always Necessary When Purchasing A House?

     I showed a property to some clients of mine a few weeks ago, a fixer-upper in the Parkdale area.  We all agreed that the house had plenty of character but that it would potentially need plenty of work as well.  There were 16+ offers on the table come offer night and it sold FIRM for more than $100,000 over asking.  The thing to note here is that the property sold FIRM - no home inspection condition.

Shouldn't you always include a condition in your offer-to-purchase that allows for a home inspection?

I certainly wouldn't advise a client to make a purchase without having an inspection done.  Reason being, there are sometimes underlying issues with a property that are not obvious to the untrained eye.  Having a professional come in and spend a few hours doing a thorough inspection is crucial if the buyer is to make an informed decision.

This isn't to say that a buyer shouldn't move forward on a property just because the inspection report isn't perfect.  Older homes are almost always going to have some issues (the boiler may be nearing the end of its life expectancy, there may be some dampness in the basement, etc).  But having an inspection done will shed some light on what the potential issues are and the buyer can proceed accordingly.

Getting back to the house in Parkdale...  Even though the property sold FIRM on offer night doesn't mean that a home inspection wasn't done.  Any number of the 16+ potential buyers may have had an inspector come in at some point during the week that the property was on the market.  This is actually quite common in a seller's market where offers are "held-off" until a specified date (generally a week-or-so after the property first comes on the market).   I touched on this in a previous post, which you can read here.

In this way buyers still get the benefit of having a complete, thorough home inspection done prior to making a purchase without actually having to include a home inspection condition in their offer.  The work is done ahead of time so that they can come to the table with a clean offer, thereby bettering their chances of getting the property. 

For more info on submitting an offer, visit my website here.

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

"Holding-Back" On Offers

Save for those two frosty seasons of uncertainty, stagnation, and price reductions that we experienced last fall and winter, “multiple offers” have been and are now a very common occurrence in the Toronto real estate market.

In a seller’s market, which is what we’ve been in for the last four months, demand outweighs supply and there are more buyers that there are properties for sale.

As a result any attractive, well priced property is going to receive quite a bit of attention.

A recent listing of mine in the St. Lawrence Market area had a handful of showings booked within just a few hours of going on the market.

Over the course of the next few days we had almost 50 showings in total, received 3 competing offers, and sold the property for an above-asking sale price!

In such an active market, what’s the best strategy for a seller looking to maximize the exposure of their property?

My personal feeling is that it’s in the seller’s best interest to “hold-back” on reviewing any offers until a specified date (which is exactly what we did for the above mentioned listing in St Lawrence Market).

For example, let’s say that I list a client’s property on a Wednesday morning.

By late afternoon we may have had three or four showings and by early evening maybe even a submitted offer.

And this offer may be an attractive one - full asking price, reasonable terms, etc.

But... there have only been three or four showings at this point.

There are potentially another 20, 30, 40.... other active buyers out there that haven’t had the opportunity to see the property yet.

What if one or more of these others buyers would submit an offer if they had the chance?

What if they're willing to pay more than what the current buyer is offering?

What if they're willing to submit a firm, unconditional offer?

Not allowing any offers to be submitted until a specified future date (generally 5-7 days after the property first comes on the market) ensures that everyone who is currently in the market for such a property gets a chance to view it and potentially submit an offer.

The sellers then can rest assured that whatever happens come offer day, the property has received maximum exposure.

Holding-back on offers actually benefits the buyers in a number of ways as well.

For example, I’m often working with buyers who need a day or two’s notice to make themselves available for showings.

Or sometimes buyers are out of town for a few days and unable to view the property until they return.

In this way, leaving the property on the market for a reasonable amount of time before considering any offers ensures that more than just the handful of buyers who are able to drop everything at a moment’s notice have a shot at buying the property.

Holding-back also helps to avoid buyers feeling as though they're rushing into a decision, as it allows them plenty of time to:

• Speak with their mortgage broker about the possibility of not including a financing condition in their offer.

• Review the comparable sales figures with their Realtor to arrive at a maximum dollar amount that they’re comfortable spending.

• Review the pre-listing home inspection (in the case of a freehold home) or the status certificate (in the case of a condo/loft) if either of these is available prior to the offer date.

It's safe to say that as long as the market keeps up the current pace and there's a steady stream of motivated, qualified buyers, multiple-offers will continue to be commonplace and hold-back offer dates will remain a fixture on many calendars.

If you’re thinking of selling and would like to find out more about my marketing plan, feel free to contact me for more info.

For more info on submitting an offer, visit my website here.