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The classic example of price VS perceived value is in the automobile business. You’ve all seen an ad from car dealers that sell “a dollar over invoice” or “at invoice” or “a dollar below invoice.” No value. Certainly no perceived value. What happens after I take ownership? How will I value from the “use” of my purchase? What kind of service can I expect?

I promise you that no one remembers the price at 7:00am when you are waiting in line at a car dealership for service, and you don’t get taken until 7:30, and the service person is somewhat rude, and they have no loaner cars so someone else has to drive there with you and take you to work, and when you get back at 5:00pm to pick up your car you wait another 20 minutes and come to find out they didn’t have the part for what was broken, and you have to come back again next week.

But you were the smartest guy in the world! You saved $100 on the car! At that moment you would have paid an extra $1000 for the car.

This was an excerpt from Jeffery Gitomer’s Little Red Book of Selling. Go to http://www.Gitomer.com for more information.

No, not Bret the Hitman Heart. Unfortunately not as cool – but arguably more important 😉

The Real Estate industry is changing. Buyers are more Internet savvy than ever – finding homes on the MLS and then previewing them through virtual tours and Google Earth. Sellers have added a great marketing tool the their private efforts – the Internet posting. In an age where buyers can find their own home, and sellers can advertise their own home – where and why does a Realtor fit in?

Answer: In the transaction itself, because the actual transaction involving property for money is a complicated and important one.

The value of a Realtor is a long and complicated discussion, and I’ve had it many times, even on this blog. Of all the topics I’ve touched on such as pricing, marketing, legal, insurance, accounting, financing, negotiating, managing, and closing (to name a few – seriously), the huge bulk of those skills come into play in the transaction itself.

That being said, the Realtor of the future has to focus their efforts on becoming somewhat of a business advisor, project manager, and a transaction expert. the level of professionalism in ALL of the topics I touched on above will have to increase tremendously – you know why?

BECAUSE MANY PEOPLE WILL NOT WANT TO PAY FOR A HOME SEARCH OR HOME MARKETNG – regardless if I or other realtors know we can do a better job. There is a shift coming, and that is the shift of private buyer and seller empowerment – however short lived and naive as is may be in most cases.

Realtors that simply market homes or find properties for clients and STOP the hard work once the transaction starts are going to get a rude awakening. Realtors that is, that put a sign on a lawn and the net, or for buyers create a search and in both cases sit back and wait. “Oooh, you mean you can create a custom search for me?” or “Oooh, you can put up a professional listing?”. Get over yourself – cause your ‘clients’ are about to.

The deal has to be executed – and THAT is where 99% of the guts has to be for top professionals. Leave the home search and marketing efforts OUT of your value proposition, because there will soon be no perceived value there at all. Up your professionalism, get more designations, continue your education, study SERVICE – not SALES, and your business, and your future – will be bright.

The first principle in Marketing 101 is to define your target market, and then what follows is the customization of a marketing plan’s key elements (Price, Place, Product and Promotion) that are tailored to that target market. 

So WHY IS IT that marketing efforts in today’s Real Estate market are the EXACT SAME 99% of the time? The marketing plan of the day seems have 10 pictures taken, uploaded and a description that says “Wonderful X bed Y bath home – Must see!”

Really? Is that all you need? With approximately 2400 Realtors in Ottawa alone, and with over 5000 listings on the Ottawa Real Estate Board at the same time – do you really want a marketing plan that blends your home in with the rest?

One of the benefits I provide to all my clients is a tailored marketing plan according to WHO buys their product, WHERE they are, and WHAT they like. Now depending on your location, your builder, your style of home (inside and out) and your price range – there will be a certain type of buyer that dominates your area. Not only can the target market for your home be identified, it can be understood and targeted according to elements such as:

• Marital Status
• Age
• Level of Education
• Average Household Income
• Employment Type
• Languages Spoken
• Ethnicity and Religion
• Events that occurred in their lives
• Movies they watch
• Entertainment the enjoy

 

I can pinpoint this information down to a 250m radius from YOUR HOME.

How? Cencus, postal and land registry information – combined and analyzed.

Why? Targeted marketing speaks to the right buyers, attracts them, gets them in the home, and ultimately leads to QUICKER and more PROFITABLE sales.

September 3, 2010 : Better supply of properties for sale brings balance to housing market; prices rise steadily

After an HST- influenced dip in sales in July, August saw a return to a more normal number of sales. Members of the Ottawa Real Estate Board sold 1,122 residential properties in August through the Board’s Multiple Listing Service® system compared with 1,211 in August 2009, a decrease of 7.3 per cent.

Of those sales, 266 were in the condominium property class, while 856 were in the residential property class. The condominium property class includes any property, regardless of style (i.e. detached, semi-detached, apartment, stacked etc.) which is registered as a condominium, as well as properties which are co-operatives, life leases and timeshares. The residential property class includes all other residential properties.

“The number of sales year-to-date is slightly ahead of last year’s sales for the same period, and last year’s sales volume was the highest ever. This shows the stability of the Ottawa Real Estate Market. ” said Immediate Past President Rick Snell. “The market is in a balanced position in relation to the number of homes for sale and the demand for properties. This is a good market for both buyers and sellers. I expect to see a normal fall market with longer selling times and stable prices,” he added.

The average sale price of residential properties, including condominiums, sold in August in the Ottawa area was $321,969, an increase of 2.1 per cent over August 2009. The average sale price for a condominium-class property was $262,999, an increase of 16.8 per cent over August 2009. The average sale price of a residential-class property was $340,294, an increase of 0.1 per cent over August 2009. The Board cautions that average sale price information can be useful in establishing trends over time but should not be used as an indicator that specific properties have increased or decreased in value. The average sale price is calculated based on the total dollar volume of all properties sold.

The Ottawa Real Estate Board is an industry association of 2,600 sales representatives and brokers in the Ottawa area. Members of the Board are also members of the Canadian Real Estate Association.

The MLS® system is a member based service, paid for by the REALTOR® members of the Ottawa Real Estate Board. The MLS® mark symbolizes the cooperation among REALTORS® to effect the purchase and sale of real estate through real estate services provided by REALTORS®. MLS® commercial and residential listings are available for viewing on the Board’s internet site at http://www.OttawaRealEstate.org and on the national websites of The Canadian Real Estate Association at http://www.REALTOR.ca and http://www.ICX.ca. Information about listings and open houses is also available in the Board’s weekly newspaper, Ottawa Real Estate Guide, available free at 700 locations across the Ottawa area and now online at http://www.OttawaRealEstateGuide.ca.

Members of the Ottawa Real Estate Board sold 1,149 residential properties in July through the Board’s Multiple Listing Service® system compared with 1,578 in July 2009, a decrease of 27.2 per cent.

Of those sales, 294 were in the condominium property class, while 855 were in the residential property class. The condominium property class includes any property, regardless of style (i.e. detached, semi-detached, apartment, stacked etc.) which is registered as a condominium, as well as properties which are co-operatives, life leases and timeshares. The residential property class includes all other residential properties.

“Last July saw a record high number of sales in Ottawa, which was the result of pent-up demand as the market came out of  a downturn. What we see this year is a return to more seasonal sales volumes,” said Board President Pierre de Varennes. “The ratio of listed properties to sold properties indicates that Ottawa remained in a seller’s market last month, and sale prices continued to rise at a steady pace, as they generally do here in the national capital,” he added.

The average sale price of residential properties, including condominiums, sold in July in the Ottawa area was $321,827 , an increase of 7.1 per cent over July 2009. The average sale price for a condominium-class property was $249,674 , an increase of 15.2 per cent over July 2009. The average sale price of a residential-class property was $346,638, an increase of 7.1  per cent over July 2009. The Board cautions that average sale price information can be useful in establishing trends over time but should not be used as an indicator that specific properties have increased or decreased in value. The average sale price is calculated based on the total dollar volume of all properties sold.

Article provided courtesy of the Ottawa Real Estate Board

I’ve put together some of the best questions I’ve received from Private Sellers out there, and will do my best to get you all the information that they would have liked to know when they were trying to sell their home. I should remind you that my answers are simply to the best of my knowledge and off the top of my head while I am here writing- it is very possible that I’ve missed a part or three. That being said – I’m sure I did a pretty good job.

Q: How do I coordinate my paperwork between lawyers, agents, lenders, inspectors etc?

A: Very Carefully. Lol. This is definitely a stress point for many private sellers, especially considering that the wrong info, or late info can turn a deal sour on a moments notice. This list is by no means complete, but should be pretty thorough. Consult with the various experts to double-check my guidelines.

Lawyers are going to want just about every piece of paper that either you (as the seller) and/or the buyer have signed relating to the agreement of purchase and sale. A good rule of thumb is that any and all parts of an agreement between the two parties should be sent to the lawyers – and MAKE SURE EVERYTHING IS IN WRITING! A good saying in Real Estate is “Verbal Shmerbal” – doesn’t count, never happened, unless it’s in writing. It might not be a bad idea to run ideas by your lawyer before you sign anything either, and if they are going to be specifically mentioned (i.e.: Lawyer to retain funds for repairs, or lawyer to approve of this or that), then you want to make sure you ask them if they will have time to fit you in before you tie yourself up. As the deal progresses and conditions are waived/fulfilled and/or the agreement is amended – send the paper trail to your lawyer.

Lenders, in my experience, are managed by the lawyers. They will touch base and coordinate necessary paperwork and fund transfers. You may want to request a letter of pre-qualification from the Buyer’s lender before accepting their offer, just to make sure they are able to afford your home. Private Buyers must work very closely with their lenders and will need to provide a great deal of paperwork to them. Hopefully there is at least one professional Realtor involved (on this side for our purposes) that can manage and coordinate the paperwork.

Inspectors will be working with the Buyer’s in most instances. If the Buyers come back and say that there are issues that need some attention, don’t be shy to request the pages from the report that outline the issues in question. Be sure no one is pulling your leg! You may choose to get your own inspection, either pre-sale or as a 2^nd opinion, and either way you will need to keep your report. This is for your records only, and can be shared at your discretion.

Agents will want a variety of paperwork including a survey, an SPIS (talk to your lawyer about this one), permits for work performed, and manuals for any and all working parts of the home. Whether or not you have or even want to share these documents is up to you. Be sure to have copies of everything you hand out, and consider sharing only the copies when critical documents are being considered. Originals can always be left on the kitchen counter once you leave.

 Those are the big four, and a few more come into the picture from time to time (appraisers, engineers, specialty inspectors, government bodies (MNE for example)). Paperwork for a private buyer is another story, and there is actually MUCH more paperwork for buyers to provide. If you do NOT have a professional Realtor on the Buyer’s end, then you could really be playing with fire. I’ve spoken to many private sellers who have gotten into agreements three times over and the deal has fallen through because no one has coordinated the sale properly.

Q: How do I set the price of my home?

A: NOT based on what “some guy down the street had his house for sale for”. Just as bad – not based on what other people in the area are asking. The thing is, FOR SALE is another way of saying NOT SOLD, so why would you base your prices on properties that have not sold? Are they what you are trying to mimic? NO – you want to SELL. This is where you have to call or email a Realtor for a Free and No-Obligation Comparable Market Analysis, or CMA. The Realtor will (should atleast) try to pitch you on why you should list with them (and handling that is up to you), but atleast you will get some good info on what sales prices are, what you can expect, and how you can price accordingly. Best Answer: Get three CMA’s. Some Realtors may be selective with their comparables, or might have missed something, and having a second and third opinion never hurts.

Q: What is the best way to market my home?

A: Marketing 101 says to know your target market, get the right kind of exposure (known as positioning), and that maximum exposure will create maximum demand leading to highest price.

Target market: who lives in your area? Better yet, who WANTS to live in your area? Tailor your marketing images and highlights to attract these buyers. You know who has lots of qualified buyers that are looking to buy? Realtors! Find out who the top-selling Realtors are for your type of home and target them!

Positioning: Had a look at the competition lately? How are they marketing themselves? How have the ones that have SOLD marketed themselves? Your goal is to emphasize the parts where your unit shines, avoid (where ethically possible) the areas where your property doesn’t compete so well, and LOOK BETTER than anyone else. Do your homework and put a plan together!

Exposure: Internet – do it. MLS and Grapevine are good – MLS is great actually – but there is much, much more. Kijiji, Used Ottawa, Zoocasa, craiglist, Google, MSN, Yahoo, Home Hippo, House Locator, Hotpads, Viva Real, Trulia, Home Finder, Second Space, Ebay, Kneedle, Second Space, Oodle  etc. There are over 300 destinations out there, and you want to advertise on as many as possible. Keep in mind that certain marketing vehicles are LOCAL in nature, and if you are putting all your eggs in one local basket, you’re missing out on all kinds of great business. Print media is good as well. Ottawa Citizen classifieds, Ottawa Sun and local papers.  Don’t forget lawn signs and directionals.

 That’s it for this month. Other questions were about contracts and legal, and warding off un-ethical people and practices. Those topics are pretty thick, and may need their own entries. I’ve answered those specific questions but a response that covers everything is beyond the scope of this piece. There is some great information on the Ottawa Real Estate Board’s website here: http://orebweb1.oreb.ca/info.shtml

Feature Piece provided by Matt Haddad, Owner and Operator of Living Spaces Renovations.

Jack of All Trades is a common term for handymen that can tackle any repairs, additions, restorations or overhauls.  Many of these jacks of all trades have a basic knowledge required for such projects, but is that really good enough for YOUR renovation project?  When it comes to certain trades like electrical or plumbing trades – a basic skill set isn’t only insufficient, but can be dangerous. As a general contractor, I strongly believe in bringing in licensed professionals to jobsites to handle any significant workload in their related fields.  This helps large renovation projects to run more smoothly, as well as guaranteeing work that is done correctly and up to date with code.

As a general contractor, I strongly believe in bringing in licensed professionals to jobsites to handle any significant workload in their related fields.  This helps large renovation projects to run more smoothly, as well as guaranteeing work that is done correctly and up to date with code.  At Living Spaces Renovations, our team includes highly skilled, licensed tradesmen who are friendly and motivated.  Furthermore, dealing with one person in charge of a team of professionals helps to alleviate some of the stresses that are common with large renovation projects.  If there are any problems or concerns, the general contractor will take care of it.  Our goal is to provide absolute customer satisfaction as well as a clean, professional workmanship, and that’s a guarantee. 

            Too many times I have seen an individual taking on work beyond their capabilities, leaving the client no other choice but to instil trust in another to come in and fix the mess.  At Living Spaces Renovations we promise this will never happen.  We will leave you with a fresh, clean and sound renovation.  Whether it is as simple as painting your new home, or building you an addition, you can trust that the best people will have had part in the project.  

Matt Haddad – living_spaces@yahoo.com  – 613.794.7090

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