Greg McCarvell on London Ontario Real Estate

Some ideas of what you should do THIS week...

Greg McCarvell (RE/MAX Centre City Realty Inc.) — Fri, 27 Mar 2009 18:45:58 -0500

Spring is here... in Ontario, I believe the weather has turned to the point where the snow isn't returning until next winter. You can enjoy your warm seasons so much better when you are in "warm season" mode. Here are my tips for adding 10% to your warm months each year.

- PUT AWAY. We store things for the winter and for the summer. Christmas decorations, winter coats, boots, skates, snow shovels, etc. Get these things in storage THIS WEEK... it will get it all overwith and you'll start enjoying the new season sooner.

- TAKE OUT. Unpack the patio furniture, find the spring jackets, dust off the bicycles, pull out the roller blades, unearth the gardening tools and turn on the outside water hoses. Take out all the things you'll eventually take out over time THIS WEEK... get into Spring!!

- Share a dumpster with neighbours. Offer to host a dumpster for 2 days with your closest 5 neighbours. Offer to split the costs and allow each one of you to get rid of the winter junk storage that no one bothered with.

- Sit in the sun. The next sunny day over 15 C, get out on a lawn chair and soak in some sun. It's good for the soul! This will kick start the relaxation part of the season.

Best of luck and enjoy the season!

Don't underestimate the benefits of a newer home...

Greg McCarvell (RE/MAX Centre City Realty Inc.) — Fri, 27 Mar 2009 18:37:27 -0500

The slant is often told towards the benefits of mature, resale homes. Hey, I'm one who's talked this talk many times. True enough, mature homes have significant advantages over newer homes - I should know, I bought my current home for just those reasons.

Tonight though, as I am updating the baseboard trim throughout the main level, I can't help but appreciate the benefits of building new or buying a home within 5 years of construction! Let me outline a few key benefits, some may apply to you while others don't, but everyone can agree there are benefits:

1) Updates not generally required. If you want to update a newer home it is usually to update the quality of finishings - maybe you put hardwood in where carpet was, perhaps some granite countertops or a big deck. These updates are more or less optional, where older homes can actually REQUIRE updates.

2) Young families. If you have a family with children, fact of the matter is, one key demographic that you will find in newer homes is families. I think nieghbours are important, I think having community interaction is important. If you have children, condsider this point.

3) The big stuff. If you tend to move every 10 or so years (or less), you can often be in and out of a newer home without ever doing any of the major improvements like furnaces, windows, roofs and flooring. Don't forget, while you usually save some money on the purchase price of an older home, you need to factor in the average monthly maintenance into the equation.

If you want some solid information about home builders in the London area see www.londonhomebuilders.com

What's the big deal with virtual tours?

Greg McCarvell (RE/MAX Centre City Realty Inc.) — Tue, 24 Mar 2009 08:17:07 -0500

There are a lot of angles to cover when you are selling a home! First you have the mediums: print, internet, direct, referral and more. Secondly you have many branches within each medium. Today I am going to tackle one very specific branch of internet marketing - the Virtual Tour.

What is a virtual tour? Some think of this as a warped image that is projected in such a way that it appears a first person navigatable shot of a room. This was the original concept. Today I think this is too narrow a box. In my mind a virtual tour is an online representation of a walk through.

Just like Realtors have different styles and techniques of showing a homes, they also have different styles of displaying properties online. Realistically though, this style also has a lot to do with budgeting. Realtors face to face showings are largely different because of personality - which is free! An online virtual tour takes investment of time or money on the part of the Realtor.

Trends and directions for virtual tours are interesting. I am finding less and less of the panoramic images and more video. Videos in many cases are painful to watch - editing video is much more complex than editing images. I am in the middle of having a new virtual tour technology developed that will combine the best of everything. Still photos in my mind give the best visual representation of a room. They tend to be better quality (as in less shakes). The new virtual tour will naturally flow between animated still photos and small video clips.

From a lead perspective, virtual tours are critical. In my market, this is the only link you have that connects you directly with the public. On your virtual tour site you can do what you want versus on the MLS sites you need to conform to the standard format.

Spring Update 2009...

Greg McCarvell (RE/MAX Centre City Realty Inc.) — Mon, 23 Mar 2009 16:01:36 -0500

Do you want stats? Do you want hard numbers on the London real estate market so far in the Spring? Sorry, you will have to read elsewhere ;) This post is strictly my perspective - the pulse of the market. The truth is stats are history, if you are selling your property in the near future the pulse is what you are looking for!

A good Realtor spots trends, spots avenues to opportunity and areas of blunder on behalf of their clients. To date I am happy to say that for all listngs priced properly the market is quite brisk! You will notice I put a qualifier in to that statement...

The last two offers I put in on behalf of a buyer were multiple offers - 2 offers on the first and 3 on the second. Keep in mind the homes were both well priced. They were not priced like a fire sale, not being given away, they were WELL PRICED.

What would you say is the key to knowing where to price your home? There are a few key factors - proper home work and research, experience (as in years) and current experience (as in deals per month). Do you think it's rude to ask a prospective Realtor what their volume is? How many homes they sell in a typical month? Even more so to have them prove it (far be it for me to suggest a sales person would exagerate their performance!!)... I think you have every right.

Now don't get me wrong, many lower volume producers are fantastic - give their clients excellent service and are extremely competent. Common sense tells you that a Realtor who can spot the pulse of a market will be doing some deals right? They will have been in the thick of things recently.

How many deals is right? I think you should look for no less than an average of 3 deals per month. That's the bare minimum to know what is going on in most areas of London.

As I mentioned, pure opinion, but an opinion with some history and experience!

Easy Tips for Energy Savings

Greg McCarvell (RE/MAX Centre City Realty Inc.) — Sun, 15 Feb 2009 12:46:12 -0600

Have you ever run into an environmentalist who has an 'all or none' attitude? They are obsessed with perfection and often paralyzed by the same thing! I take a different approach - if a 30% improvement can be gained easily, using readily available technology without a huge investment and I can also convince 10 other people to take the same actions I think I'm doing a better service for the planet. We always need idealists, but physical progress in mass numbers is what we actually need to happen for things to move quickly.

Here are some very basic steps you can take to lessen your impact on the environment and probably save yourself a chunk of money on the way!

1) Replace your lightbulbs.Get energy efficient bulbs. It seems to me LED is the trend that's gathering a lot of traction right now. I'm having a hard time recommending anything with Mercury (CFL's in many cases). Should you swap out CFL's for LED? I can't say this is a great idea, the CFL's are going to end up in the landfill either way, so you may as well use them. The other option is to bring all your old Compact Fluorescents to a family member who still has a pile of incandescent bulbs burning.

2) Insulate. An easy, inexpensive way to conserve is to add insulation. Even if you built new chances are the level of insulation in the attic could be improved. Do some reading for your climate in particular and find out what is recommended for maximum efficiency. The other place to consider insulating is the siding of your house. I recently had my house resided with a shelter wrap type product underneath. The cost was about 10% more, but the gain in efficiency is substantial.

3) Fix leaky water sources. Check your outside taps, baths, sinks, utility areas and toilets. A resolved drip can make a huge impact.

4) Get out the caulking! Sealing air leaks around doors, windows and other openings can go a long way toward decreasing the amount of air leakage.

5) Plan your trips. Gas money is not the best way to spend. Limit your trips to the store, plan when you can and attend errands in the same general part of the city while there for other reasons.

6) Open your curtains. If you find yourself leaving lights on during the day, maybe it's because you have too many curtains closed. Natural light is a better and free alternative during the day.

7) Get an electric mower.I know the cord can be a pain, but there are effective ways to manage this concern. You'll be glad you didn't buy a polluting 2 stroke gas mower when you notice you aren't pouring gasoline all over your shoes and waking up the neighbours with the eardrum breaking noise!

8) Avoid lawn sprays.Many municipalities are now banning certain types of lawn sprays. You know when the goverment finally gets around to banning a product that it must be bad! Save your money and enjoy the status of being the 'new cool'... you can only be 'new cool' with imperfect lawn!

9) Exercise for real.I remember clearly one day I was about to get on my treadmill while training for a marathon. I started it rolling as the lights dimmed due to the strain these machines take on the electrical system. Then I looked outside - it was a beautiful sunny day. Why was I running inside? Get outside and exercise! Another thing to do is pair up your exercise with errands - take your bike shopping, ride to your Mom's place to drop off those photos - you get the idea.

10) Adjust the furnace / AC. A couple degrees up or down can reduce the amount of energy used substantially. Get a programmable thermostat - you have different needs when awake and when sleeping - when you're home and when you're not home.

Sharing your Expertise with other Realtors

Greg McCarvell (RE/MAX Centre City Realty Inc.) — Sat, 14 Feb 2009 18:12:04 -0600

It's a struggle at times. Real Estate sales is a competitive business... quite honestly, the most competitive that I've personally experienced. Some businesses are more price sensitive, some are more prone to shopping around, but none are as competitive on so many fronts. This is the reason it seems that so many Realtors are secretive when it comes to providing meaningful help to co-workers.

I can understand the protectionist mentality. We all work very hard as Realtors to develop a broad offering of services. It seems like you are throwing away your competitive advantage if you share your thoughts on how to operate the business. I think you should ask yourself the real question first though - how many times are you really up against that particular person for a listing or buyer client? Even if you answer "all the time, I'm in small town"... I still don't buy it. You can have 20 people deliver the same information and top performers will still be at the top of the pile. It's a beautful thing called personality.

I am guilty of sharing everything - if someone asks - I'll tell them. I don't care in the least. First - I have a substantial financial investment in my systems, not everyone I talk to has the finances to duplicate what I've done. Secondly, I have a MASSIVE amount of time invested. Just look at my blog as one small indicator. You can't just spend a night and create an extensive collection of first hand real estate writings.

The internet opens up a whole new avenue. Geographics are no longer an issue. There are many venues where you can start to develop mastermind groups where the members have no physical capability of crossing paths. I think this is so powerful because you automatically see the barriers of the protectionist mentality stop.

If you're a new agent, an agent who has been around for awhile but wants some fresh ideas or a top producer in your maketplace and you think I have an answer that you could use - drop me a line, I'd be more than happy to give you my take on it!

Greg

Purchasing Power of Sale Homes in Canada

Greg McCarvell (RE/MAX Centre City Realty Inc.) — Sat, 14 Feb 2009 17:57:40 -0600

I've seen a drastic increase in the number of listings with Wells Fargo, HomeTrust, TD Canda Trust or some other financial institution in the Seller's description. Obviously someone wasn't able to pay the bills anymore; It comes with the territory in an economic slowdown. This is just a quick entry with some tips on purchasing these properties.

Buying as-is - Frequently you will see the description include all kinds of words and phrases that seem to be the opposite of selling points. Comments like "no guarantees implied", "purchased as is - no warranties", "UFFI cannot be verified". Due diligence is always important - do a home inspection, follow up any possible issues and also have some room in the budget for unknown problems. This is not neccesarily an indicator of a home that has problems. A bank will throw every disclaimer at the buyer possible to relieve as much responsibility from the property as they can.

What if there's a problem - Recently a client made an offer on a bank sale property. On home inspection there was obvious water problems in the basement (sometimes it pays to do inspections on a soggy day!). We took what I feel is a good course of action - had a contractor give us a formal estimate on what it would cost to rectify the problem and made the bank aware of this information. We ended up negotiating a price that included a full subsidy for the basement issue.

How low is too low? Generally I work off common sense - at what point does it make sense for the seller to reduce the price and remarket the property versus accepting your offer? Say you had a house listed at $280,000 - I would say anything under $250,000 probably is out of the question. The reason is that is if the bank reduced the price by $15,000, re-marketed the property and sold for $260,000 after 2 months, they are still ahead of the game. Keep in mind that a bank will almost often want more than your inital offer. I had one circumstance where they specifically said they would not sign back - just accept or reject.

It is quite easy to pull off a list of bank sales. These houses all have a value - maybe the banks aren't doing the best job at pointing out the benefits, but they sometimes are no the bargain most people would think the are. Do your homework and be sure the value is there.

The Basics of Marketing a Property

Greg McCarvell (RE/MAX Centre City Realty Inc.) — Mon, 30 Jun 2008 07:54:29 -0500

You will find many different forms of marketing as you interview real estate agents to sell your home. I thought it would be useful to present the bare minimums that you should be offered. The following marketing tactics are the basics, the most common actions.

The "For Sale" Sign
I know it seems obvious. Well, it is your choice if you have a for sale sign on your lawn or not, my recommendation would be to definitely have one. Many sources state that 20% of your potential buyers will be alerted by your sign. Immediate neighbors often know a contact. Many times people who have interest in an area will drive the roads within searching for signs. Make sure you get a commitment from your Agent to inspect the sign on a regular basis and ensure the sign is in proper repair.

Open Houses
An open house is particularly crucial when you first list your home. Let's face it, having people come though your house to inspect the property is not the most convenient thing - what's worse is when they are all spread out evenly for 3 weeks. Have your agent commit to an open house on the first weekend when your listing will appear in the MLS database and ask them to hold off all individual showings until after the initial open house. By promoting this open house, you may be able to avoid some unnecessary disruption in your life and get a volume of showings completed in a short period of time.
Some other quick tips in this area - be sure you agent has the assertiveness to gather names and phone numbers of buyers and follow these leads up. I don't know how many times I have been to an open house and not even been asked for contact information.

Individual Showings
Your agent should be very flexible in the times they offer for showing your home. Arrangements for your availability should be the only limiting factor, an eager Realtor will make themselves available. There are times when a buyer agent will ask that the home owners either stay in the background or not be present. This is normal - if a home owner is not on the premises buyers feel more at ease to discuss things about the home and get the answers they need. Trust your Agent's judgment on this one and be as flexible as you can.

Information Sheets
A complete summary of what your property offers should be prepared prior to listing on the MLS system. Make sure a few copies of this sheet are left with you in case someone asks you for the details of your home. A professional presentation on paper can set a good first impression.

Classified Advertising
A small blurb in the newspaper is a good idea. Some people check these on a regular basis. Probably a more effective place for a classified ad is a specialty paper dedicated to real estate. These are normally free to readers and contain a wealth of listings in one place. People who are truly searching will definitely be reading these publications.

Inclusion on Office Ads
Most Realtors work for an office that does advertising in different areas. Be sure to have your Agent push to have your home included on these ads if at all possible.

Websites
realtor.ca is the largest concern here - be sure to allow multiple photos and even a virtual tour for this site. The amount of visitors is astonishing and the more information you can put in their hands the better. Inclusion on franchise, office and personal websites is also a good idea.

As I mentioned, these are the absolute basics. In later writings I will be exploring some of the more unique ways to market your home.

Changing with the Market

Greg McCarvell (RE/MAX Centre City Realty Inc.) — Mon, 30 Jun 2008 07:57:32 -0500

There have been a lot of changes in the real estate market since my previous posts, mainly in the U.S.A. London has been a nice, steady and strong market consistently for the past couple of years (probably even longer). I am just now starting to see evidence of a market shift from an extreme seller's market into a balanced market.

Even this perception is up for debate. Many sources feel London will be strong in the following years because we didn't see the massive upsides that other major centers such as Toronto and Vancouver experienced. Compared to most cities, even ones right in our immediate vicinity, London is quite affordable. This affordability in comparison to similar cities in our region makes it an attractive destination for relocations.

With all of this in mind... if we were to experience a slower market in the near future my advice to a home buyer/seller would be as follows:

Buyers
- Take advantage of some choice. For quite awhile buyers were forced to pounce on the first house they liked or take a very sincere risk of losing it to another buyer. In a slower market, you might just get that chance to "sleep on it". Now take that with some caution. If you've found the place, you've found the place. If you know it's right, go for it - why take a chance!
- Keep a log of homes and take time to really compare. Since you have a selection of homes to ponder you can take time to really compare and think of each house in relation to your life. Generally it's wise to use this as your very first step in the buying process. Arm yourself with a pen and paper and start writing a list of what you want and don't want in a house.
- Negotiate. If your Realtor is timid and you have the ability to find someone new - do it. A lot of agents will have become soft during the seller's market and will find it difficult to grind a little bit for a good deal. Please don't misinterpret a bold person for a rude person. There are ways to ask for significant discounts and be very polite and tactful.

Sellers
- Take a load off and relax. It may take a bit longer than 2 weeks this time! No problem, the goals is still the same - find the right person.
- Realize that you may not sell for over list price. No one can predict exactly what your house is worth or how many buyers are out there looking for a house like yours. It would be wise to price with a little bit of room to discount because in a balanced market, this is normal practise.
- Understand the tradeoffs in price. Unless you are cashing out of real estate entirely, realize that real estate is like a currency. If you're not getting to the price point you might have expected, understand that you will gain that difference on the buyer's side. The basics still hold true - moving to a superior home costs money and downgrading to a less substantial home nets you money.

Keeping up to Date

Greg McCarvell (RE/MAX Centre City Realty Inc.) — Mon, 30 Jun 2008 08:00:05 -0500

In the life of a Realtor, winter is the opportunity to upgrade your skills. This could be technical courses, business system performance tweaking, sales and service training or an great time for a vacation to recharge. It's quite often that people fail to recognize patterns in their life and take advantage of the natural cycles. Below is an outline of the plans I have for this year and why I think it addresses an important part of my business life in general. Perhaps some of these thoughts will be useful to you after translating to your life and your situation.

1) Techincal training: I am currently enrolled in a course studying the details and regulations behind property management. I felt this would be a good foundation course to help investors understand the needs for properties they may purchase and also serve any future investments I may secure myself. To me, technical training is important. I make sure not to go over board - afterall my role is a service role. Service requires action - techincal training is good to support that role, but is never a replacement.

2) Sales and service training: I am scheduled to attend a two day event in Toronto focussed on customer service and client satisfaction. The trainer is Brian Buffini. I found his introductory material interesting because the approach they use stresses improving your service levels to gain more business (through referral) rather than spending time with prospecting activities that do work, but generally annoy people (cold calling, door knocking etc). With a service oriented approach everyone wins, my clients will have the best service possible and I will reach the goal of having a healthy, profitable business that serves it's clients with excellence.

3) Systems overhaul: I've been working heavily on my marketing systems, websites and follow up systems to support a few areas that I feel are not living up to my standards. By the new year I believe I will have the most advanced real estate services on the web and also have a nice backbone of systems to ensure prompt, unprecidented service levels. I'm really looking forward to 2008.

4) Vacation: Montreal is the destination - it will be a great time!

So You've Made It!

Greg McCarvell (RE/MAX Centre City Realty Inc.) — Thu, 24 Jul 2008 22:06:22 -0500

You may be reading this entry out of interest - you may be reading it because you are in the market to buy and sell luxury real estate - whatever your case I welcome you! Big goals and dreams are the starting point for success in life! Please read on for an all-round taste of the luxury real estate market as it pertains to London and area.

What is a “Luxury Home”?

I think the answer to this question is largely subjective. It is also a moving target! Generally speaking, the luxury home in the London real estate market today is considered over the $500,000 range. Even more specifically, over $700,000 is where you begin to see very unique, custom built dream homes. How do I know? Well, I asked LOTS of people

Over time I have been developing a niche specialty in luxury homes to compliment the other facets of my business. In the last year I have had the opportunity to represent 7 listings between $550,000 to $1,300,000. One thing is for certain, without experience in this realm it is truly impossible to grasp the true value many of these home owners have invested. You can see examples of these homes throughout the website - all photos are listings I have personally represented at some point. Nice Homes

How is Selling a Luxury Home Different?

Understanding the differences in selling a luxury home is based mainly on understanding the fine home buyer. Put yourself in the seat of a buyer - they have worked hard - quite often for years on end so they could one day enjoy the fruits of their labours. As a buyer this type of person is not likely to settle in many respects. They have definite needs, clearly outlined wants and most importantly a sense that it’s time to fulfill a long planned dream. For some it’s size, others it’s a “kitchen to die for” or like me it’s to find the perfect setting just outside the city. How do you cater to these demanding requirements? With a much more in depth selling approach

Think in terms of magnifying everything in a more typical transaction. More photos, better quality images, a more detailed website, glossy brochures, extensive feature explanations etc. When selling a luxury home, explaining all the information in great depth is key. Similar to this is putting everything in a nice “lifestyle package”

A lifestyle package approach is really about spending the time to profile the target buyer. What would someone buying your home likely be looking for - what type of lifestyle are they probably looking to achieve. Once this is established you need to delivery the message of the features in a step by step build up painting exactly the picture of the lifestyle they desire! Remember, in a typical transaction the mindset is often “this house works great!”... but another will be along in a couple of months that would probably suit us just as well. A luxury buyer quite often has been keeping their eyes out for YEARS!! The message of possible lifestyle needs to be delivered with absolute clarity and followed up with emotional triggers to get a seasoned “house waiter” off the chair into a buying position.

Seller expectations are also important. In most cases the time frames from listing to sale on a luxury home is longer in comparison. This is not a negative thing, simply a reality that needs to be understood. You will be dealing with a more focussed but less plentiful buyer, the first few weeks are key for identifying all the “house waiters” in the wings. It is imperative you have a crisp approach from the first day listed in order to capture this market. After the initial month, you will need to go into a mode of optimistic expectation. Patience is a virtue at this time - think of it as the last chances you have to enjoy your current setting and soak up every minute

Finally, be sure to choose the right person to represent your interests. Having a person without experience can be a major liability. Buyers who can purchase your property tend to have less tolerance for mistakes and misinformation. If you are working with an agent who doesn’t know the depth of knowledge required on the property, potential buyers will become frustrated with what is seen as an uncaring sales person who didn’t have the courtesy to educate themselves on the product they are representing.

Buying a Luxury Home

Purchasing your dream home is an experience like no other! One thing I always encourage my clients to do is keep the process an adventure - think of it as searching for treasure. A home hunt can get the best of you at times, with the proper perspective it can always be exciting and new

You first need to start with the basics - defining the dream! Where will it be (out of the city, in the city), what will it have (a pool, a sauna, a ravine lot), what will the layout include (main floor master bedroom, games room, three car garage, third floor loft), these are all examples of good questions to ask yourself. Spend some time, get it all down on paper. Might I recommend a specially designated coil pad? Keep this pad with you in the car, when you think of something new, add it to the list and rate it accordingly with a “must have”, “would be nice” or “absolutely not”

So now you think you know what you want right? It’s time to view your first set of homes. Take a snapshot of what is available today, be very inclusive in your approach at the beginning. One of the keys to the step previous is experiencing different homes. Chances are you are moving up into a new price range - perhaps there are qualities available in a home that you aren’t accustomed to are even knew existed! Viewing a few listings will probably trigger more ideas

After the initial viewings, if you didn’t find what you are looking for you will need to get into a scanning game plan. Develop a plan with your Realtor on how to communicate new listings - typically email is the best. Be sure this plan is wide range, experience is a key again. The luxury market has a way of working itself in many cases outside of the MLS umbrella. Be sure your agent is in tune with the market and will be privy to pre-listing information from other Realtors in the area.

Be patient. Remember, you are hunting for a treasure! Keep at it and don’t loose sight of the goal!

For additional information on the luxury market see www.londonluxury.ca

Regional differences in real estate markets

Greg McCarvell (RE/MAX Centre City Realty Inc.) — Sun, 31 Aug 2008 09:30:52 -0500

Last week I travelled to British Columbia - I toured through the Okanagan Valley (which includes Kelowna, Vernon and Penticton), Vancouver and Vancouver Island (Victoria, Sidney, Comox Valley etc.). This has to be the most picturesque part of Canada! While there I spent some time experiencing the local real estate markets and learned how important it is to verify the scope of information you base your decisions upon.

Keep in mind this examples presented in this entry are time and date sensitive, I am including specific numbers in order to illustrate the concept.

Comparison of the Markets

The real estate market in B.C. right now appears to be on a downward trend. Based on the British Columbia Real Estate Association’s website the dollar volume for B.C. real estate sales were down by 38% in July 2008 vs. July 2007. Units sold volume was similar with a 37% drop. Interestingly though, the average price only fell by 0.5%. In 2008, with yearly unit sales falling 24% province wide, the average sale price was up compared to 2007 by 8.2%.

These figures indicate to me that the average prices in this market have a strong possibility of trending downwards or at least leveling out. When the demand lessens (number of sales, increased active listings, decreased unit volume) the market tends to shift towards the buyer’s favour. In a buyer’s market there is a more competitive landscape for sellers leading to lower prices.

London in contrast had a strong July, not a record breaking year, but the second best on record. While year to date unit sales are still down 9.1% in comparison to 2007, the market is robust and healthy. Another factor I consider contributing to the strength of London is the affordability. Below is a summary of average home prices in a few different cities across Canada since January 2008:

London & Area: $213,603

Calgary $416,109

Greater Vancouver $615,012

Toronto $ 390,289

Edmonton: $339,147

Hamilton: $285,666

British Columbia has been outpacing other provinces in average sale prices for some time now. This makes me wonder what is driving the prices. I see the draw of the province with it’s beautiful environment, picturesque cities and wide range of world class outdoor activities. Conversely, there are a lot of financial opportunities and population centers in other provinces that should appeal to people’s financial sensibilities.

Affordability

What makes a market affordable? It is largely indicated by the ratio of income to housing prices. According to the Frontier Centre for Public Policy’s Housing Affordability Survey, the following Canadian cities ranked in the most affordable and least affordable cities:

Affordable in Order: Thunderbay, Saguenay, Saint John, St. John’s, Regina, Windsor, Quebec City, Trois-Rivieres, Winnipeg, Sudbury, London, Oshawa, Ottawa.

Least Affordable in Order: Kelowna, Vancouver, Victoria.

The fact that these three B.C. cities are the only ones that rank amongst major US, Australian, UK and Canadian cities shows just how much they have outpaced the other areas of Canada. Knowing all the information in this entry, I will say I would still consider making B.C. a place to live - there really is no other place like it!

Learning Through Teaching

Greg McCarvell (RE/MAX Centre City Realty Inc.) — Sat, 18 Oct 2008 09:27:13 -0500

Recently I was invited by RE/MAX Ontario-Atlantic to speak at a convention series called “Trading Secrets”. I was only able to participate in two sessions, GTA and Sudbury, due to a conflict with my broker registration course. The premise of the event is to have a panel of 4 top producers converse on how-to’s from the eyes of a successful Realtor. I knew going into the event that I would learn more than simply being in the audience. Keeping at the top of your game is the result of many things - determination, consistency, organized planning AND having new, fresh ideas constantly.

Walking into the event I could feel the anticipation of the audience as they mingled in the lobby and common areas, music played in the background of the convention center - there was a lot of excitement! Eventually I met the 3 other panelists - truly great people. Eventually we were introduced and took the stage. I didn’t think about it, but I soon noticed I was the only one who brought a pen and paper with me! I wasn’t even thinking about it, but I was planning on having a way to record some new ideas because this is an unrehearsed session. As it turns out, I put the pen and paper aside and learned a lot from each person on that panel. I also clarified in words many of the tools and tactics I use in my career that up until now were only internally defined.

To me the most important part happened after the session was complete. As the event finished up people approached me with conversation pieces relating to the information I presented during the session. It was amazing how many different ideas came to the table - and they were all making there way to my ears because of my role as an instructor! I think I figured out how teachers in school know the answer to every question - they have been asked them in the past by students!

A Buyer's Market from a Financial Perspective

Greg McCarvell (RE/MAX Centre City Realty Inc.) — Thu, 20 Nov 2008 13:20:43 -0600

It seems to be the overwhelming trend - first in the United States, the the Western parts of Canada, then Toronto and now even London - it's official - buyer's market is the new reality. I am writing this entry mainly because it's information I seem to be covering almost on a daily basis with my clients. If clients are asking, there is a good chance that the general public would appreciate the information as well.

Here is the bottom line: What does a buyer's market have to do with me and my financial health?

Fortunately, it's an easy answer. The logic I am about to outline is intended to put you in the correct state of mind to really evaluate if this is a "BAD" market. That is the wrong terminology - for some people a seller's market is a bad market - let me illustrate.

Thinking in CURRENCY terms
The most basic thought pattern I would like you to have is thinking of your investment in real estate as a different currency all together. Consider market shifts a differentiation between our Canadian Currency and Real Estate currency. Consider it like you consider trading Canadian money for American money. Here are some different scenarios:

1) A homeowner wishes to downsize. It is this client that could possibly feel the negative effect of a buyers market - WHY? The currency is depreciated against the Canadian Dollar (prices are lower)... therefore when they convert (sell) there home into Canadian currency, they are exchanging at a lower rate. What is the level of negative impact?

Here is the part of the thought pattern you need to be careful of... if a person is selling completely and then moving to a rental, yes they will feel the full impact. But remember, in this scenerio the client is downsizing. What is a typical downsize? Perhaps they are going from a property worth $300,000 to a property worth $250,000. This client will only feel the negative impact on the $50,000 difference. The other $250,000 is remaining within the same currency (which will eventually fluctuate back up). So if the market prices were down a drastic 10% compared to recent past, the actual loss is 10% of $50,000.

What this works out to is $5,000. Now in the big picture, would I advise a buyer to wait in their home until a market recovers for a $5,000 benefit? Probably not. Here is why: lifestyle. If you're downsizing, most likely you've already been putting it off for years. Secondly, nothing is 100% in real estate - I can't call a properties value within that small range - it's within the margin of error. Just make sure you buy properly and I would bet your cost to move is well worth the benefit of living where you belong.

2) A homeowner wishes to Upgrade. This is the client who will benefit from a buyer's market. You can reverse the above scenerio and the $5,000 gain goes in the favour of this client. You will be investing more into the real estate currency and buying it at a discount. Don't get wrapped up on selling price, the discount is in effect for the home you really care about - the one worth more money!

The ultimate winner is the first time buyer. They are able to act quickly on closing dates, wait until the right deal comes along and are moving into the market when prices are affordable.

I hope you find these thought patterns helpful in sizing up the buyer's market and how it effects you in real world terms.

Understanding a New Home Buyer - from the Resale Perspective

Greg McCarvell (RE/MAX Centre City Realty Inc.) — Sun, 23 Nov 2008 21:26:13 -0600

When I first started in the real estate industry, it constantly amazed me the amount of turnover a newly developed neighbourhood would experience in the first 5 years. Over time I realized this is a natural occurance for many reasons. In my opinion the main reason is that a younger demographic tends to be attracted to new builds. The younger demographic tends to have more major lifestyle changing events that inspires moves.

I've worked with many sellers having a home under 5 years old - for this client it is imperitive to understand the new home buyer because they will quite often cross over into recently built resale. Below are some tips on how you can cater to new home buyers on the most important levels.

1) Bring out the list of upgrades: if you are in a position where he builder is still offering the same model or a very competitive model then you need to determine what they are offering a similarly equipped house for built new. Take a walk over and find out - it will be very valuable information.

2) Take credit for your post build improvements: decks, fences, gardens, shubs, patios, retaining walls, finished basements and more! All of these items cost extra from the builder, tally up your post build assets and hand them to your Realtor - these will help you build a case and crystal clear marketing tools.

3) Talk about the dirt: one of the downsides of building new is the dirt, muck and dust constantly present in a new development. With a recently built resale you can have all the characteristics of a new home and not live through the 2 years of dust. Make buyer's aware of the daily car washes they will need if they go the other way!

4) Sell it like it's a new home: there are distinc differences in how to effectively sell a new home versus a resale home. Undertanding this difference can be experienced by attending a couple of new home open houses hosted by builder reps. The new home buyer is interested in the small details - they want to know the breakfast bar is an upgrade, they want to hear how the 4 paint colours cost extra money... they are accustomed to this from he builder, so continue on that line of selling. On top of the new home selling techniques, layer in resale tactics and you'll have them won over in no time! Bring the details into focus by talking about quality of life, the area, the overal package of the home - help them fall in love with what is in front of them, some people find it daunting to pick all the colours and finishing themselves.

5) Work with a Realtor who knows what they are doing! If you live in the London Ontario region I have a great person! See www.londonhomebuilders.com for info!

Greg McCarvell