RE/MAX Hallmark Blog

Call it what it is - An Auction

it's still out there, the under priced listing. Causes a lot of problems too. Just read an article from The Star  this weekend by journalist Tony Wong. Mr Wong wrote about the practice some Realtors and sellers have of deliberately marketing a home at a "I can't believe it" price. All in the hope of generating activity, interest and multiple offers. Problem is, the price the home was marketed for is never one the sellers would ever dream of taking.

Why don't we call it what it really is? An Auction. In an Auction, a product or service is displayed to potential buyers and a market value is proposed as a guideline. The potential buyers assess what they think the product or service is worth, and compete to purchase it. Sometimes the seller's indicate there is a reserve bid on the property, which means it will not be sold by the seller for a price under that.

If deliberately under priced listings indicated the seller had a "reserve bid" on the property, I wonder if the activity or interest would be as strong?

Our Board cannot get involved in competition issues In other words. Our Board is powerless to do anything to influence or direct the free real estate market. But our Board can do something to direct the behaviour of Realtors in their marketing, as long as it doesn't effect the value of a property. All the Board has to do is create a process for Realtors to indicate on the MLS listing if the property has a reserve bid on it. This will save a lot of time, money and effort for many people.

In the weekend Star article, Sally Cook and Duncan Femlin clearly indicate what they think of under priced listings. Well done.

Phantom Offer Task Force

Why do things have to be so complicated? Several months ago, the Toronto Real Estate Board struck a task force to evaluate, and make a recommendation on the issue of "Phantom Offers" in our industry. "Phantom Offers" are just what the name implies. An offer is made to exist when in fact it is non existent. In multiple offer situations, it is always good to know (from a buyer and buyer representative) perspective the number of offers you are competing against for a particular property. The strategy or ability to negotiate diminishes with every competing offer.

Some buyers and buyer reps may not believe there are competing offers on a property. It's all about perception. Buyers ask, "How do I know for certain there really was another offer?" Some brokerage firms say in so many words, "you are gonna just have to trust us."

Phantom Offers are not a problem in our industry, but the perception certainly is. The task force recommended leaving everything "status quo." Got a problem with Phantom Offers, go to RECO.

That doesn't work and either does setting up a Competing Offer Registry System. Too cumbersome. Many many months ago, RE/MAX Hallmark set out a policy procedure when dealing with multiple offer situations. It is company policy for every Realtor at RE/MAX Hallmark to disclose, when asked, the identity of Realtors involved in Multiple Offer scenario's. Period - end of discussion.

If you are a buyer or Realtor in a multiple offer situation with our firm and question the authenticity of multiple offers, ask and rest assured.

It's all about perception.

Bold Idea...

I am nearing completion of my second term as a Board of Director for the Toronto Real Estate Board. Today we had a day long meeting, held monthly which was not any different from most. We discuss the usual things. What to do with the surplus of funds available at the Board, what MLS rule or standard needs to be tweaked. Hours are spent going over recommendations brought to us by committee chairs. Really nothing earth shattering was dealt with. Our Board is in fine shape and indeed takes a leadership position for real estate in our country. We are very aware of the responsibility we have as a collective, and do every effort to fulfill our responsibilities.

I have served on this Board for close to four years and I am extremely proud of the volunteers and staff professionals I have worked with. They are committed individuals, each and every one.

Having said that, I do get frustrated though with the process. I have seen our Board more or less try to play even keel for the past couple of years. I know it may be difficult at times to look 10 years ahead, but I believe it is critically important for us as a Board to do so. I don't think our Board does that enough. It is a fine line between existing and growing.

How can we grow? By creating a Legacy. I think we should start planning now, as a Board to invest more in our Realtor community. We can and should start a foundation for Realtors who need our help in retirement. We all see them. Agents who have spent many many years working our trade and at the end are left with very little to show for it. They have lived from one deal to the next, until, unfortunately the next deal didn't come. Time beat them.

No matter how much training we offer, or how much business mentoring we provide, there will always be some amongst us who just don't make it after 25 or more years in our profession. These are the individuals I am writing about. Why not create a retirement village geared specifically to Realtors, subsidized by a foundation created by the Toronto Real Estate Board? An agent who didn't have the sense or ability to prepare for his or her retirement (we have no group pension plan to speak of) could "retire" in a community of his or her peers. With pride and understanding.

I know it is a big idea, but other industries have created similar programs for their own. Why not us?

Donald Bentley with RE/MAX Europe

Every year at about this time, the new Board of Directors of The Toronto Real Estate Board convene to plan the upcoming year. A strategy session so to speak. New committee chairs are voted on and the direction for the upcoming year is gone over. This year, our two day meeting was held at Niagara at the Lake. It has always been a good idea to get the board and the senior staff members away to focus on the upcoming year. President Donald Bentley did a fantastic job of organization for this event and much was accomplished.

Near the end of the two days, President Donald Bentley announced to the Board he was stepping aside as President of the Board in October of this year. Recently Donald resigned from his position as manager at Royal LePage in Leaside to accept a position with RE/MAX Europe beginning on September 1st. This opportunity is incredible for Donald and one he just had to accept. I for one am very happy for Donald and pleased he is now working with RE/MAX. He has incredible talents and will be an asset to our organization. As for the Board, he will definitely be missed.

Maureen O'Neill as President Elect of the Board will take over as President upon Donald Bentley's official resignation in October.

No Home Buying Tax.com

The lobby against the  City of Toronto New Land Transfer Tax proposal is gathering storm. I am pleased to see that the Toronto Real Estate Board is taking a strong proactive role in this proposal fight.

The Toronto Real Estate Board will issue a news release on July 5th promoting the www.nohomebuyingtax.com website, which has been developed to bring more focus and understanding to the issue. Also starting on July 5th and up to the council vote on July 16th, TREB is taking out advertising in the Toronto Star and selected newspapers to focus on the constituency of undecided councilors.

Why is this New Land Transfer Tax proposal from the City so wrong? If enacted, it will double tax home buyers specifically in the City of Toronto, which will impact the buying and selling decisions of many. Right now if a home is purchased for 1,000,000.00 there is already in place a Land Transfer Tax from our province of 16,500. With the new Toronto Land Transfer Tax proposal, an additional 16,500. will be added on, making the tax payable on closing of 33,000. That is outrageous and just wrong. In the City of Toronto proposal, they are considering making first time home buyers exempt from the new tax, if and only if they are buying new homes. In other words, pretty well everything in the residential side on TREB would be taxable.

It is time for the City to step back on this issue and rethink it.

The Spirit of RE/MAX Hallmark

This evening I was at the annual Toronto Real Estate Board Appreciation night. Every year at this time, the Board holds this Gala to honour the volunteers connected with their organization, acknowledge some of the deeds many of the members do within our community, recognize some long term members and introducing the newly elected board.

Tonight was very special. Two RE/MAX Hallmark Realtors were rightly recognized for their work within our community. John Zimnoch and Carolyn Griffis. John has been active for many many years working in particular with The Hospital for Sick Children among other charitable causes. He has always made the time to create a difference for others and to engage other Realtors and non Realtors to take up the cause. It was fantastic that he was formally recognized for his deeds.

Carolyn Griffis has made a big impact on our community as of late. She has spearheaded a new program developed by her called Breakfast for Kids in which school age children are finally getting the nourishment needed to get them through their mornings. Many schools are being looked after with plans for many more throughout the GTA. I can see this program getting really big with Carolyn's leadership and drive.

Congratulations to both of them, they are the true Spirit of RE/MAX Hallmark.

OREA Conference

Off doing my duties for the next couple of days as a Board of Director at the Toronto Real Estate Board. I am at the OREA Conference here in Toronto as a voting delegate and representing our Board.

The Ontario Real Estate Association takes up one of the "layers" in the structure of real estate in Canada for us. Primarily, in my view it has been responsible for looking after the interest with Ontario Realtors in education, provincial government matters concerning our industry and offering a collective resource for the many Boards in the province.

As you may know, I am not a big fan of these type of conventions. Too much talk centred around bylaws and "corporate structure" stuff for my liking. Give me a convention anytime which allows me to expand my thinking and offers me growth. Not so sure I will find that in the next couple of days.

Last night I was able tho to spend some time with fellow Board of Director members and senior Board Staff at a social gathering hosted by our Board President - Dorothy Mason. These type of evenings are far and few between for a group which spends alot of time together running the Board. Although I enjoy my time spent with the Board of Directors, I particularily like spending time with the staff leaders at the Board. All of the staff leaders are amazing, they really know their stuff, are up to date and totally committed. They are a group of action.

Board Stuff...

Yesterday was my day at the Board, and when I say day, I mean day. Each month we have a Board of Directors meeting. Usually these monthly board meetings take up about 4 hours or so. Yesterday's meeting was different - 8 hours.

We had some presentations from several board members concerning the branding or unbranding of virtual tours and prospect matches originating on torontomls.net. There has been much discussion and concern around this issue. Do we allow agents to "brand" themselves on torontomls.net? Torontomls.net is a member to member site and is not an advertising tool. With the introduction of the "Prospect Match" vehicle the member to member model was stretched. In any case, lots of deliberation. The matter was sent back from the Board of Directors to the MLS committee for proper drafting.

In the morning I was involved in a presentation from the Education Department at TREB. This department is always on the cutting edge, offering all sorts of classes to help us out in our day to day operations as realtors. The presentation I sat through was "Tips and Tricks" in reference to Torontomls.net. There are all sorts of things which we are able to use to get information to help us in serving our clients. We can do graphs, drill down to get complete info on particular streets, and housing styles. I was so impressed I am making arrangements to have the Board put on a 2 hour presentation for our agents. This will definately be worth it.

Conveniently holding back offers...

This kind of stuff really annoys me. Just got off the phone with one of our agents. During the weekend our agent had been showing properties to her registered buyer. They came across a property listed with another brokerage, which very much interested our agents buyer. It was perfect for her. Problem was, no offers were being considered until Monday (today). Our agent, in front of her buyer, asked the selling broker when they were presenting offers. 6 pm tonight was the answer. Great, off they go, doing the prep work necessary to bring in a clean offer.

This morning comes around, and you guessed it. A phone call is made to the listing brokerage inquiring about the offer presentation time, and our agent is told the property sold this morning!!!

Not even a phone call to our agent. Not even a heads up. Upon investigation it was determined that the listing broker conveniently double ended the property sale this morning. This kind of behaviour stinks and gives our industry a bad name. I have tried to get our board to move quickly on this problem, but good intentions always seem to get tied down with someone inventing the right wording for the rules. I will once again bring this up at the Board table on Thursday.

As for this incident, I assured the listing brokerage that they have not heard the end of it. Our industry needs to be more accountable to the public and the clients we serve. This type of behaviour makes me ashamed to admit to the public I am a Realtor. The time for action is now.

Candidates Forum

This morning I was asked by the CEO of the Toronto Real Estate Board, Don Richardson to attend a candidates forum for Toronto mayoralty candidates at our board. Don wanted a board of director present to answer any questions which board members may have and to show support from the board table for the candidates program. This morning there were only two of the three candidates partaking, Jane Pitfield and Stephen LeDrew. Our mayor, David Miller has chosen not to "debate" any of the other candidates in a live forum. I guess when you are so far ahead in the polls, why bother ?

A couple of things grabbed my interest...

I wasn't surprised that the event was sparsely attended. There must of been a total of 30 people there, with perhaps 10 of those board staff and board of directors. Pretty typical I guess for any election, especially one in which the front runner is so far ahead.

I was pleasantly surprised with the presentations of Jane Pitfield and Steven LeDrew. They still have the passion for the campaign even tho they are so far behind. A poll published today gives David Miller 44% of the decided vote, Jane Pitfield 22% and Stephen LeDrew a mere 2%. But in spite of that, these two candidates were hard at it, each stating they were the agent of change for our city. If elected as Mayor, things would be much much different, according to them.

It occurred to me that there is a special passion for this type of work, being a politician. The salary is low, the work hours are long, and the stress must be unbelievable for any mayor. But every several years, there are many candidates queuing up for the job. Thank God our society creates people of change like this. Complete dedication to this cause.

All we have to do is vote.