Real Estate Sales

Unlocking China: A Marketing Masterclass

Today I implemented a custom marketing plan to directly market one of my listings to Realtors in Hong Kong, Shanghai and Beijing.

I knew that the Buyer would be a very unique one because of both the opportunity and the style of the home, so one of the suggestions I had was a direct marketing campaign to Realtors in China from three of the main cities that immigrate to Canada.

How did I do that?

To start, I did some research on what Chinese Buyers are looking for in a Country, City and Home, and how Ottawa was a great selection. Then I took my drafted marketing and framed it in a way to reflect all of those aspects a Chinese Buyer was looking for. Next, I took the reframed marketing on Canada, Ottawa and this particular home, combined it with favourable photos, and translated it carefully into both Mandarin and Cantonese. After this, I leveraged my REMAX network to identify the top producing agents and Broker Owners with highest producing brokerages, and sent them a personalized email in both English and their language of choice, with the Electronic Flyer in both languages.

Common sense, right?

Sure, it took some brainstorming, resources, careful attention and about 4 hours to put together – but this isn’t something other people can’t do.

What it comes down to is you really have to have pride in your work, and a job well done. If you’re one of the type of people that like to just get by with the bare minimum – than you may find this excessive. But, it you’re a person that values hard work focused in an effective manner, this might resonate with you.

This type of strategy is simply a Macro version of what a normal Targeted Marketing campaign looks like. Normally we identify the Buyer for a home and tailor the marketing for that one specific and ideal buyer, but in this case we simply took the same principles and applied it to a larger audience.

😉

Real Estate Investment

Buying Your First Investment Property

YES, it is true, Real Estate investing produces more millionaires than any other industry. But that doesn’t mean it’s dummy proof.

And YES, it is true, it’s hard to lose when it comes to Real Estate investing over the long term. But that doesn’t mean you CAN’T lose, or at least that some strategies are better than others.

So where do you start?

Well – here are some questions you need to consider.

How much money do you have?

How risky do you want to be?

Are you more interested in short term CASH or long term equity?

Do you want something turn key, or something that needs work?

How handy are you?

How much time do you have to put into this?

How big of a project are you comfortable taking on?

When you take the time to answer those questions you can really start to determine what works best for you.

For example. Lots of money, time and skills, willing to take on risk and looking for short term cash? Maybe we buy a house on a main street on a big lot where prices aren’t yet too crazy but rents are still high – and we build a wicked multi unit, rent it out, and flip it as a cash cow.

Little money, time and skills? Want as little risk as possible and ok with long term equity? Let’s buy a brand new apartment in the most steady location we can find and rent it out for 10 years.

Both could be your first investment – and one is SUPER ambitious and the other is pretty tame. Both are good.

Rather than list all the options, just answer all those questions and feel free to send me the answers for recommendations on investments that match your answers.

What’s the most popular 1st time investment in my experience you ask?

I’d say a purpose build duplex that could use some lipstick and that would fetch some great rents. That’s a pretty decent first step that gives you some low(ish) risk that will probably get you a little positive cash flow but will absolutely get you some nice equity over the long term.

The MOST IMPORTANT part to Real Estate Investing? START.

Honestly, that’s it. Even slightly sub par investment will pay off big time if you hold it long enough, but what’s undeniable is that when you own Real Estate you have more options. If you have a property that builds some decent equity, once that mortgage is due you can refinance it and pull out some money to invest in more Real Estate – and it snowballs from there.

If you want to have a talk about how to get in the game, send me a message and I’ll be happy to talk 🙂

Real Estate - ANALYSIS, Suburb Series

The Impact of 4 Rate Reductions on Prices

Have the prices gone up since the rates went down?

I looked at prices of the median residential home across the major suburbs in Ottawa within 10 days of the past 4 rate reductions to track, if any, the impact on prices.

Here’s what I found.

Question: Have the prices gone up since the rates went down?

Hypothesis: Yes, I bet they went up a bit.

Research:

Baseline: April 10th +10 days = Median Price of $691,000

Now let’s start lowering rates and see what happened!

June 5th impact? $695,000 ok. small but fair

July 24th? $672,000 probably just a one-off

Sept 4th? $680,000 better, but still lower than baseline

Oct 23rd? $677,000 that’s really weird, rates dropped .5%

Analysis: Well, it looks like in this particular instance, the prices have NOT gone up since the rates went down. Technically, they also went down.

Conclusion: In Ottawa’s suburbs, prices for residential properties have NOT gone up since the rates have started to come down. I believe this is really due to the financially conservative nature of the residents given the drop in values we saw after the Covid bubble. We’re not used to big swings in value like that, and I think it put us on our heels. People are still being very careful with their spending.

There you have it. I’m honestly surprised as I at least suspected a 20K rise in the average price. Nothing big, but enough to show that people are at least opening up their pocket books just a little more.

Seems that’s not the case.

If you have any questions let me know 🙂

Thought Process - THOUGHT PROVOKING

Multi-Generational Living doesn’t mean be a Loser.

If your adult child is still living in your house, and it’s causing them to miss out on major life milestones and delay their development of basic life skills – that’s YOUR FAULT.

I get it – it’s a Hard Knock Life, but that’s no excuse to not properly develop as a functioning adult.

I’m fortunate enough to see a LOT of different living arrangements, including multi generational ones, and I’ve seen at last 10 different cultures do their best at it. The ONE common denominator for those that seemed to have done it properly and raised their adult children like functioning members of society is GOOD PARENTING. I’ve seen some parents ensure their kids are responsible, they work, they study, the help around the house and at least carry their weight – and I’ve seen parents let their kids freeload.

Believe me – letting them live at home is NOT the problem.

Bad parenting is.

According to recent reports from CMHC, millennials are having a tougher and tougher time affording homes. Property prices are rising faster than wages are, and massive student debt payments are sucking them dry.

That makes sense. What doesn’t make sense is letting your kid turn into a basement dwelling troll that doesn’t know how to function in society.

I know PLENTY of Millenials in their 20’s and even young 30’s that are still at home with their parents who are complete MACHINES, and frankly… who are blessed with INCREDIBLE parents that put forth their very best efforts to ensure their kids are shaping up to be excellent humans.

What do you think?

Market Update, Real Estate Financing

Lower Rates = More Money in Your Pocket

As we move into late October, there is growing optimism in the financial world regarding interest rates. Many forecasters are eyeing a potential decrease of 0.25% to 0.5% in variable mortgage rates, creating a buzz about what this could mean for home buyers and sellers here in Ottawa.

For potential home buyers, lower mortgage rates represent a golden opportunity. A decrease in rates can reduce monthly payments significantly, allowing you to stretch your budget and potentially afford a more comfortable home. For example, on a $100,000 mortgage, a drop to 4.75% could save you around $15 a month compared to the current 5.0% rate. If rates fall to 4.5%, that savings could reach nearly $30 per month! This could be the deciding factor that helps you move from window shopping to actually closing on your dream home.

Sellers, too, should take note of these potential changes. Lower rates might attract more buyers to the market, as affordability increases. More buyers often mean a faster sale and potentially greater interest in your property, leading to better offers. With a competitive environment, carefully staging your home and pricing it right can leverage these favorable conditions to your advantage.

In conclusion, as we await the next Bank of Canada announcement, keep a close eye on interest rates. Whether buying or selling, now is a great time to strategize and prepare for a market that could become more favorable with a potential rate drop. The landscape is shifting, and there’s no time like the present to take action in the Ottawa real estate market!

Real Estate Development, Suburb Series

Suburban Transormation -The Rise of the 15 Minute Neighbourhood

Earlier this week I went to a Public Consultation regarding the City’s new proposed Zoning Bylaws, and I confirmed that there are MASSIVE CHANGES coming to our suburbs.

Long story short – 4 Units or more allowed in every home, and mixed use buildings on main roads around transit hubs. What that looks like is significantly more multi units and local mom and pop shops up and down the main streets in neighbourhoods.

The City calls this ’15 minute Neighbourhoods’, which basically promotes all amenities and essential services within a 15 minute walk from your front door.

Some people say this is a marvel in urban planning, and will make for better local economies and the environment. Others say it’s a Communist ploy to control our every movement and slowly suffocate us into slavery.

Personally, I think it’s awesome. I think it will increase housing supply, it will give home owners more ways to earn income, it will spur the economy and allow a lot of small businesses to flourish, and will give investors or all types more opportunities to invest. Pretty awesome!

The City is hoping to have this all finalized by the end of 2025, and then it’s time to watch our suburbs boom!

What do you think?

Real Estate Sales, Suburb Series

What Makes a Good Location?

For our Suburban Buyers, finding a good location can often be tricky. It isn’t enough to be in a ‘good’ suburb – you ideally want to be in the most favourable part of it. So what exactly makes one part of a suburb more favourable than others? Here I’ll give you a few great examples to look out for.

First of all, we need to acknowledge that a suburban buyer often has a family that needs and values certain things. Safety being the most important, then proximity to recreation being second, and finally proximity to amenities and transportation being third. Let’s go through those one by one.

First – Safety. One aspect that makes a good, SAFE location for a Suburban Buyer is one that has little to no traffic so that their kids can play or even wander in the street without panic. Every parent wants their kids to be able to play street hockey, ride their bikes, or throw a ball in the street and feel safe doing so. The peace of mind that a location like a base of a crescent provides makes a very particular lot even more desirable. Suburban Buyers would also like to be on a street or block where the other homes are at least as nice and as big as theirs. When neighbouring homes are of a poorer quality (build, look or upkeep) there are generally poorer standards in the area – which can make them feel unsafe.

Second – Proximity to Recreation. Being right next to a park or a sports field gives Suburban Buyers a place to get some space and exercise, and to feel safe with their kids while they do the same. As long as these places are well kept and attract other similar people – this is a massive bonus that makes a home worth even more.

Finally – Proximity to Amenities and Transportation. The trick here is to think of these like your in-laws. You want them close – just not next door. Around the block, a few streets away is perfect lol. Suburban Buyers want the convenience of being able to run out and get some food or whatnot, and don’t want to have to be stuck in traffic for 15 minutes just to go 1 mile down the road doing it. Many suburbs get so developed that getting to the highways or rapid transit stops are easily 25-30 minutes on average. God forbid someone has to take a bus or two just to get OUT of the suburb – time adds up quick.

So if you are a Suburban Buyer thinking of WHERE you want to be in your preferred suburb, I would strongly consider these three items I’ve mentioned above, or at least be very clear about what it is you are looking for.

Too often I’ve seen buyers more focused on a few thousand dollars as their main driver when it comes to finding a home, and I would hate for you to be lured into thinking that would be the most important thing in the home where you’ll be spending the next chapter of your life.

Real Estate Development, Real Estate Sales

Sobeys Building High Rises in Orleans?

Yes – that’s what they are proposing. Sobeys has applied for a zoning by-law amendment to develop 7 High Rises on their site on St.Joseph ranging from 7 to 18 storeys high!

Currently a giant, mostly vacant site on the NW side of the roundabout at St. Joseph and Jeanne D’arc, Sobeys would see it transformed to a mix of both residential high rises and mixed use mid rises. The proposed buildings facing St.Joseph would have some commercial uses in them, the remaining to be residential use, and nearly 500 parking spaces underground!

This site is incredibly close to the new LRT station at the 174 and Jeanne D’arc, which is a major consideration for the approval of the amendment.

If this gets passed, this will be 1 of a handful of projects that will see nearly a dozen mid to high rises get built on and around St.Joseph.

Real Estate Sales

Paint the Porch

In negotiations, it’s important to know that in order to TRULY get what’s best for you and your side – you need to work with the OTHER side to get it. Some people try to bully or force for their win, and that NEVER get’s you all you could have got out of the deal.

A subtle way to use strategy and gamesmanship in negotiations to get what you want and not lose cooperation with the other side is what I call the ‘Painting the Porch’ strategy.

This strategy essentially describes the act of having or adding things into your offer that you don’t really need (or even want), only so that you can make a perceived concession at some well timed point in negotiations.

In order to do this, you need to know what items you or your client DON’T need in an offer that would normally be considered standard, WHERE your clients’ preferences for terms lie, and a few pain points on the sellers side.

Let’s break that down.

First – do your clients need an inspection? Do they need a finance condition? Are there any standard conditions they won’t require? Consider ADDING them into the offer anyways, as long as they don’t raise any yellow flags and appear to be completely normal.

Second – are your client’s completely negotiable on closing date? Are they able, or want to put down a large deposit? Consider appearing to need these terms on the opposite end of the reasonable spectrum from what the other side wants, only to adjust them later on.

Third – ask the other side what feedback has been like. What are the pain points? What does the seller know about the property that has been causing it not to sell? Maybe the reason it hasn’t sold is because of a reason that you or your client didn’t even realize or don’t care about! Consider using that pain point as a reason for being where you want to be in the deal and it will resonate and seem understandable to the other side.

An ideal example would look like this: A seller wants a reasonably quicker closing on their home that needs some work and is a little older, and they know the front porch needs to be redone because everyone has been commenting about how bad it looks. Your client, a contractor, doesn’t care about the closing date, doesn’t need or want an inspection, can put down a huge deposit and couldn’t care less about the porch.

Consider an offer with a closing date that’s on the end of the reasonable time frame, have an inspection condition (reasonable), and ask the Sellers to have the front porch repaired and painted prior to closing because ‘your client can’t take on all that work’. This, of course, comes with your price on the lower end of reasonable.

As you work through negotiations, to keep your price nice and low, consider moving the other variables. Shorten the closing date, up the deposit, remove the inspection condition and tell them you’re willing to take on the front porch disaster, all which will appear as very favourable concessions, while keeping your price nice and low.

In the end, you could end up with the EXACT price and terms your client wants, all while keeping a nice low price for them too.

Well played.

Again – it is CRITICAL to remember that you can’t use tactics like this to bully or force your terms on the other side. Why? Well, not only do you want and need the other side’s cooperation and good faith to KEEP this deal together and to get the most out of it, but if you want to have a long career in Sales you need to be able to work with and trust your counterparts – and that won’t happen if you are unfair with them.

Good communication with the other side, an understanding of your fair limits and boundaries, and respect for the other side is CRITICAL for a good deal. That’s why I always advise to work within reason when negotiating.

Real Estate Sales

How to Prepare Your Home For Sale

Likely the largest hurdle for our Sellers – HOW to get the home ‘show ready’. Seems like a daunting task for sure, however there are a few good rules of thumb to follow to get you going in the right direction.

For starters – good home maintenance is a must. We want Buyers to come in to your home and feel like the home has been cared for. After all, pride of ownership says a lot about BOTH the sellers and the home. Seasonal maintenance, regular maintenance on appliances and utilities, as well as maintenance on any property damage are all a must. Our most successful sellers are on top of ALL the required maintenance of their homes and keep detailed logs so they can show prospective Buyers.

Second- declutter and clean. We’ve all heard this before, however there is more to this than you might thing. Regarding cleaning – give your home a DEEP clean right before you list. That means dust all those hard to reach places, clean the stove and fridge, and wipe the baseboards. When it comes to decluttering, what you want to do is ideally have a large number of the EXACT same type of cardboard boxes or plastic bins, get some labels, and sort out a proper, clean and well lit place to place all your storage. Why go through all this trouble? Because EVERY house will have 1 or 2 rooms with storage, but most will look like … well… a garbage dump. I’ve seen garages packed the ceiling with what seems like a variety of items just thrown right as far and as high as they’ll go. YOUR storage on the other hand will reflect well on you. It will be clean, organized, and neat. This is an excellent opportunity to stand out from the competition and to give the next Buyers the impression that when THEY move in, they’ll be organized too!

Third – paint your home. Consult with a stager to see what the latest and greatest colours and matches for your specific property, and if you can’t paint like a pro – hire one. This is one of the best ways to freshen up your home, give it a ‘new home smell’, and is also an excellent return on investment. Paint is a few hundred dollars in the cans, but 10-15K worth of value on the walls (if done right).

These are just the basics, and there are many more strategies to get into if the resources exist. Depending on the levels of time, money and energy available, preparing a property can go from the simple rules of thumb above, to a complete transformation.

Any questions? Ask 🙂