Real Estate

PRIME TIME EPISODE 17

A little insight into our day to day. Locally owned #RealEstate firm with Global reach

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Serving London Ontario, Grand Bend, Bayfield, and Elgin and Middlesex Counties

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Market Update June 20th 2018- THE END OF THE WORLD

home sales strong in may, with best monthly numbers in 2018
June 5, 2018

The London and St Thomas Association of REALTORS® (LSTAR) announced 1,171 homes* were sold in May, down 24.4% over the same time last year, which saw a record-setting month for May with 1,549 homes sold. The May 2017 home sales stands as the highest ever sales month in LSTAR’s history, since the Association began tracking sales data in 1978.

"We're very encouraged by the sales in May, which represent the third best May results LSTAR has had," said Jeff Nethercott, 2018 LSTAR President. "The homes sold are actually above the 10-year average, despite the ongoing challenge of low inventory in the marketplace. Similar to what’s happened each month this year, home prices continue to gradually increase across the region, as fewer homes are available for sale.”

The average May sales price in London and St. Thomas was $366,096 up 6.4% over May 2017 and up 28.4% over May 2016. By geographic area, London South was $370,851 up 4.4% from last May. In London North, average home sales price was $451,556 up 4.7% compared to the previous year, while in London East, it was $291,359 an increase of 11.1% from May 2017. In St. Thomas, it was $288,723 up 11.2% over last May.

"The big trend we continue to see in the marketplace is low inventory, which remains at its lowest level in 10 years," Nethercott said. "In May, there were 1,643 active listings, down 7.7% from this time last year and down 44.6% from May 2016. The sales-to-new listings ratio was 70.8%, which the Canadian Real Estate Association (CREA) says represents conditions in the marketplace that favour sellers. With warmer temperatures and summer around the corner, it's a great time to contact your local REALTOR® if you're considering selling your home."

St. Thomas saw a total of 100 homes sold in May, down 12.3% from the same period last year. For inventory, there were 82 active listings, down 28.1% from last May and down 49.7% from May 2016.

The following chart is based on data taken from the CREA National MLS® Report for April 2018 (the latest CREA statistics available). It provides a snapshot of how average home prices in London and St. Thomas compare to other major Ontario and Canadian centres.

SOURCE:  https://www.lstar.ca/news/home-sales-strong-may-best-monthly-numbers-2018

#THECLOSERSDAILY : EPISODE 281: HOW MUCH IS THAT PLACE WORTH

So, the market's getting crazy again. We covered that in yesterday's episode. The multiple offers are back, limited inventory is driving buyers to be a little bit emotional. We we're gonna give you guys a tip on how to navigate a seller's market. And the first tip we're gonna give you guys this week is gonna be, don't get caught up on the list price. So list price is put there by the listing agent to generate interest. Sometimes they're listing at market value, sometimes above, sometimes under. A lot of times in the seller's market they are doing it under market on purpose to generate as much interest as possible. The more offers they get, the more likelihood that they're gonna get above-market value with no conditions. Which is a dream for any seller out there. So say a property is worth 300 and they price it at 280, some of the people going in and writing offers on that property are gonna get stuck mentally on the 280, when the smart agents that are out there are gonna look at the property value and see where it's actually gonna sell. So just be aware of what the property is worth and don't necessarily get caught up on the listing price.

Disclaimer: "Although care has been taken to ensure the accuracy, completeness and reliability of the information provided, we assume all information is subject to change and should be verified independently by the buyer and their agents.”

#THECLOSERSDAILY : EPISODE 280: HOW IS THE MARKET?

So the question on everybody's mind right now is how is the market? We got another viewer request, and this is something that's coming up in day to day conversations because people didn't know where the market was gonna head. Well, if you really wanna know, you're gonna wanna watch out full blown Market Update. They're typically anywhere from 20 minutes to 45. Guest questions and everything else this week, so make sure you jump over to our Facebook page. But short and sweet, it's getting crazy out there again. So last year, if you were paying attention January 'til about June-ish, the market went bananas in London and surrounding area. And whether you're in London specifically or you're within that range, you're gonna wanna pay attention to what's happening over the next two to three weeks. Now that the weather's cracked, we're starting to see everything going multiple offers, inventory shrinking, so pay attention 'cause I think things are about to get even crazier.

Disclaimer: "Although care has been taken to ensure the accuracy, completeness and reliability of the information provided, we assume all information is subject to change and should be verified independently by the buyer and their agents.”

#THECLOSERSDAILY : EPISODE 279: INSURED vs. NOT

Hi everyone, it's Mandy from Mortgage Wise Financial. Justin Konikow from The Closers asked me to reach out and touch on a topic that some of his clients and my clients have been asking, what is the difference between an insured and a conventional mortgage. So here you have it, an insured mortgage is protected by CMHC Genworth Canada Guaranty, therefore meaning that the lender is protected. A conventional mortgage isn't, therefore meaning that you may see a little bit higher rates with your conventional mortgage. Guys, if you have any questions, please reach out to me or the guys as Mortgage Wise Financial. We'd love to help you out.

Disclaimer: "Although care has been taken to ensure the accuracy, completeness and reliability of the information provided, we assume all information is subject to change and should be verified independently by the buyer and their agents.”

#THECLOSERSDAILY : EPISODE 278: PANICKED SELLER

So what do you do if you have a house to sell but you found the perfect place that you wanna move to and you don't wanna risk not being able to sell your house? Well, what you do in real estate typically is include what's called a condition of home sale clause. This clause gives you the ability to firm up on a deal but still have an out where if your house doesn't sell, you can escape the contract and walk away from the deal. What the seller's likely gonna include is what's called a 48 hour waiver clause meaning that they can continue to market the property, and if they accept another offer, you have 24 or 48 hours, whatever you negotiate to firm up on your original deal. Now, we had a question from an audience member is if I locked up a property for let's say 400 and then somebody comes in and pays 500, doesn't that mean that I'll have to pay more? No, your escape clause is for you. So if you waive that clause, deal goes firm, you get it at 400, and you'll have a super upset seller knowing that they coulda got more money. Now, you have to determine is it worth risking waiving that clause, and is your property still gonna sell? Part two coming tomorrow.

Disclaimer: "Although care has been taken to ensure the accuracy, completeness and reliability of the information provided, we assume all information is subject to change and should be verified independently by the buyer and their agents.”

#THECLOSERSDAILY : EPISODE 277: NOT YOUR SELF GURU

So the last thing I am is any type of motivational speaker or Stuart Smiley character from Saturday Night Live trying to just send you quotes every day and tell you gosh darn it, people like you. What I am trying to do is share glimpses I see into other world of top producers and people that do things that seem impossible but make your realize that you're just as good as anybody else out there. There's a guy named David Goggins out there, and I, Navy Seal, ultra marathon runner, apex guy that you think, man, there's no way I could ever do what that guy's doing, but I actually just listened to his interview on Joe Rogan's podcast. Go give that a download and a listen. And you'll be shocked. The guy was actually spraying cockroaches in restaurants in the States, living a life after child abuse and all kinds of crazy stuff. I'm not even gonna get into it.

Disclaimer: "Although care has been taken to ensure the accuracy, completeness and reliability of the information provided, we assume all information is subject to change and should be verified independently by the buyer and their agents.”

#THECLOSERSDAILY : EPISODE 276: IS #THECLOSERSDAILY OVER?

So you may have noticed we didn't shoot The Closers Daily for three days. We actually got a DM from one of the audience members asking us if the show was over, and no, it's not. We actually wanna tie it into this episode, and what it has to do with is making sure you're taking time to take care of things in your life other than just the work side of things or things you are maybe super passionate about like we are with real estate. You know, we had the long weekend. We had Family Day on Monday, and we had Saturday and Sunday, and typically what we do is we'll post a Closers Daily Monday to Friday. We actually have a tweak in the programming coming up you guys'll be really excited to see in the next couple weeks. But in the interim, we actually take holidays and the weekends off for two reasons. One, we wanna make sure that we do have that focus time with our families. You know, the team is always working, always out there doing stuff, but you gotta take that downtime and make sure that you're recharging your batteries, and you know what? We end up getting more ideas in our downtime than we do even working in the field day to day. So hopefully that answers your questions. Stay tuned. We have some fun stuff coming for you guys.

Disclaimer: "Although care has been taken to ensure the accuracy, completeness and reliability of the information provided, we assume all information is subject to change and should be verified independently by the buyer and their agents.”

#THECLOSERSDAILY : EPISODE 275: DON'T BE SELFISH

Do nothing out of selfish ambition or vain conceit rather than humility. Value others above yourself. It's the founding biblical principle that we established our entire firm on and it's about approaching every situation and always make sure that you're doing what's right for the other person. Case in point we had a couple dudes who run a business down here in Charlotte, North Carolina. Gave us an opportunity to come down and master mind about business, family, faith, life, and everything, and I had an amazing weekend. We actually approached it, you know wanting to know some things about how they run their business, but really when we got down here we wanted to make sure that we provided even more value than we were taking. And you know what ended up happening was we forged an amazing friendship with two great guys and I'm sure there's gonna be more to come. But every situation put the other person you're dealing with first. Always take care of them and put your interests aside, and you'll be shocked at what happens in your life.

Disclaimer: "Although care has been taken to ensure the accuracy, completeness and reliability of the information provided, we assume all information is subject to change and should be verified independently by the buyer and their agents.”

#THECLOSERSDAILY : EPISODE 274: AGENT GETS SUED

So a real estate agent is getting sued. Do I have your attention? A riveting topic, and it does happen in real estate, and what happens when a real estate agent's gettin' sued, this one's really important for brokers and agent out there because you always wanna notify RECO of any claim made against you. There's a court case I read about where a lady was gettin' sued by her clients because there wasn't an adequate water supply when they closed on the house, and she was in the right. She actually had proof that they had documented, had the well inspected, and the buyers knew about it and said they were gonna drill their own well. And they made a false claim against her. She actually won the court case. But then when she went to recover her legal fees, she found out her broker of record hadn't actually reported it to RECO. So RECO wasn't gonna cover her legal fees. RECO said you're always supposed to report any claim against you, whether you're right, wrong or otherwise, and the broker misinformed his agent. So she actually ended up suing him. It got really hairy, really sticky. She got her money back, but the lesson is if there's any claim being made against any real estate agent, always report it, and that's it.

Disclaimer: "Although care has been taken to ensure the accuracy, completeness and reliability of the information provided, we assume all information is subject to change and should be verified independently by the buyer and their agents.”

#THECLOSERSDAILY : EPISODE 271: DON'T BUY IT

So this episode is a warning message to you guys and also very simple. So stuff is being relisted and sold on a daily basis. Find out what the history of that property is. There was a multifamily property that we saw hit the system yesterday that we had under contract about five months ago. We had it under contract around 370, and then we found out the windows were improperly installed. You're likely looking at another $20,000 to re-add that property. Now, in the interim, the selling agent ending up finding their own buyer and selling it for 390 to their buyer. Hit the system again today after they did $50,000 of improvements, and it's listed for 420. Now, do that math, add in, say, a 5% real estate selling commission, and think about how much money that purchaser is losing. So don't rush into something just 'cause you're scared to lose it. Take your time, do your due diligence, do proper home inspections. Especially getting into the spring months, people can get excited about owning properties and stumble into problems.

Disclaimer: "Although care has been taken to ensure the accuracy, completeness and reliability of the information provided, we assume all information is subject to change and should be verified independently by the buyer and their agents.”

#THECLOSERSDAILY : EPISODE 206: HOW'S THE MARKET

So how's the real estate market? Probably one of the most common questions you get asked as a real estate agent, and if you know what you're talking about, you're gonna say which market? It really depends. Are you a buyer, are you a seller, are you an investor, are you looking at commercial real estate? What you gotta be careful about when you're asking people how's the market is who you're talking to and what's their end game. Do they do enough business and are they gonna survive through downturns in markets? Are they investor focused? Are they buyer focused? Not only that, in a geographic area, it could depend street to street or what's happening with impending development. So it's a very, very loaded question but you can actually learn a lot about a real estate agent by asking them that.

Disclaimer: "Although care has been taken to ensure the accuracy, completeness and reliability of the information provided, we assume all information is subject to change and should be verified independently by the buyer and their agents.”

#THECLOSERSDAILY : EPISODE 205: THE BIGGEST MISTAKE

Mistakes real estate agents make in this business is not following up with past clients and people they've actually done successful transactions with. Real estate agents are notorious for getting caught up with bright shiny object syndrome. Whether that be marketing, leads, somebody that just called them and getting caught up in the day to day. Make sure you're calling the people that you've worked with in the past. You know touching base with them, seeing where they're at in their lives. Not necessarily just for a sale. You know maybe they're doing a renovation and they need some advice. If you're a seller or a buyer and you've worked with somebody and you're looking at refinancing. You know maybe you're redoing the bathroom or the kitchen. Or maybe you're gonna put in an infinity edge pool in the backyard and over improve the property by $75,000 that's your decision but your real estate agent's there as a resource for you. You know we get paid on the transaction but it's a life long relationship and don't be shy. That's what they're there for. You know the real estate agents that watch this show, I hope this spurs you to pick up that phone and call the people you've done business with because you know it can get so far gone that you don't even realize that they may be looking to sell their house.

Disclaimer: "Although care has been taken to ensure the accuracy, completeness and reliability of the information provided, we assume all information is subject to change and should be verified independently by the buyer and their agents.”

#THECLOSERSDAILY : EPISODE 204: AGENTS NEED TO EARN THEIR KEEP

So here's a warning to all my real estate agent friends out there is don't become a commoditized asset. What do I mean by that? I mean if you look at different types of industries, when consumers approach something and they want information, if you can provide only the information that's the same information they can get anywhere else, then what value are you bringing? You really need to stay ahead of the curve. You look like companies like Zillow in the States, they become purveyors of information. And what did real estate agents used to hold as the biggest thing that they could provide? It was the MLS listings. It was the book. Well, access to information is rapidly changing. In my opinion, I think consumers are gonna have full access to sales data and everything else within the next five or 10 years. So get ready for that. What's your value proposition? What do you bring to the table? You gotta make sure that you do something that stands out from the crowd and earn your value. Long gone are the days from us just sitting here like the Wizard of Oz behind the curtain with all this information that nobody else can have. You gotta make sure that you're bringing value in every single transaction and earning your keep.

Disclaimer: "Although care has been taken to ensure the accuracy, completeness and reliability of the information provided, we assume all information is subject to change and should be verified independently by the buyer and their agents.”

#THECLOSERSDAILY : EPISODE 203: STICK TO THE PLAN STAN

All right, so the weather has been so beautiful, I am feeling extra generous. So I'm gonna give you guys a negotiation tip on how to keep your emotions in check when the transaction's getting hectic. So one strategy you can use is when you identify that perfect property, write down the big ticket items that matter to you. The price, the conditions, the chattels or the things that you want in that property. Put it in a note somewhere. Then establish your strategy. How are you gonna approach it? Are you gonna give them an offer they can accept the first time around? Or are you gonna try and negotiate? You know, do you expect it to go back and forth for two or three days. Well, if you're doing the latter of those and it's day two, and another buyer comes in, people can tend to get emotional. We're human beings, we want to win, and people can kind of get off base and off strategy when they feel they are competing with somebody else. Go back to your notes. Go back to your actual strategy and stick to it. I've seen people get caught up in the heat of a transaction, give up tens of thousands of dollars, because people are using the tactics against them. I've also seen people pass up on purchases because they get emotional about chattels or things the buyers are asking for. Stick to your plan. Make sure you get the best.

Disclaimer: "Although care has been taken to ensure the accuracy, completeness and reliability of the information provided, we assume all information is subject to change and should be verified independently by the buyer and their agents.”

#THECLOSERSDAILY : EPISODE 202: DON'T BE A LOSER

So real estate's a funny business, one of the only industries where you'll actually spend time, money, going and pitching for new business and not necessarily getting it. And we had an audience member ask us, how does it feel when you don't land that contract, or how do real estate agents react when somebody, you know, has been pitching them for business, and then all of a sudden goes and does a deal with somebody else. And we never really talk about ourselves on the Closers Daily. Really, it's about you guys, we don't like to pitch our business or anything, but I do want to answer the question for our audience member. To be honest with you, I don't even really give it a second thought, and the reason that I say that is, there's no sense dwelling on something when you don't know what the outcome's gonna be. The second thing I feel, is I feel bad for them. And the reason I say that is, I know the level at which we do our business, and I always feel like I could have done a better job, or cut them a better deal, or whatever it's gonna be, but at the same time, I always keep the door open, and I still give people respect, 'cause I don't know what's happening in their personal life, I don't know what led to the decisions that they made, but I do know if I keep that relationship over, they may be coming back to me down the road to solve the issue that they couldn't get solved.

Disclaimer: "Although care has been taken to ensure the accuracy, completeness and reliability of the information provided, we assume all information is subject to change and should be verified independently by the buyer and their agents.”

#THECLOSERSDAILY : EPISODE 201: MASSIVE MORTGAGE RULE CHANGE

So some massive changes coming in the mortgage industry, and Ottowa dropped a bombshell today, and that was that people that are putting 20% down on a house are going to have to qualify at a higher rate than they did previously. What does that mean for you guys, the consumer? It means the same house you qualify for today, as of January, you're going to have to earn 20% more income to qualify for that same house. You know, if you've been watching our series, we've been predicting that mortgage rates are going to continue to climb, they're now saying they are going to be up to about the 5% range if things go the way that they're going, but this is the biggest change we've seen in the mortgage industry in a number of years, and kinda scary. I know some of the banks are concerned that this is going to push consumers to go to tertiary or secondary lenders, and unsecure lenders which, who knows what that's going to do? And, they also don't know how it's going affect credit unions, who are governed provincially, versus federally. It is massive news, if you have any questions, give us a show, we'll hook you up with a mortgage person that can definitely guide you, and we'll keep an eye on this story for you guys.

Disclaimer: "Although care has been taken to ensure the accuracy, completeness and reliability of the information provided, we assume all information is subject to change and should be verified independently by the buyer and their agents.”

#THECLOSERSDAILY : EPISODE 190: GIMME ALL YOUR MONEY

Let's cover another riveting topic in real estate. This one has to do with deposits on a contract. How does it work? Usually works one or two ways, you can either submit a deposit when you actually submit the offer, or you can have it upon acceptance. So if they accept your offer, what is that look like? Well, in a standard contract it has to be given to the selling brokerage within 24 hours of acceptance of the offer. If you're late on that they can actually try and squeak out of the deal. I've heard in Toronto when they hear another buyer is lined up they often try to do that, doesn't necessarily happen as much in our market, but it's something to be aware of. Now, once The brokerage receives that deposit, they've got five business days to get it into their trust account. A trust account is where the deposit is held while the buyers are fulfilling conditions so that it is protected. Typically they're non interest-bearing. Deposits work in a lot of different ways. You can put some stipulations in the schedule "A" of your contract. If you have any specific questions, hit us up in the DMs. Thank you for watching, we love you guys.

Disclaimer: "Although care has been taken to ensure the accuracy, completeness and reliability of the information provided, we assume all information is subject to change and should be verified independently by the buyer and their agents.”

#THECLOSERSDAILY : EPISODE 189: REFERRAL DANGER

So, word of caution for people looking for real estate agents, be very wary of referrals. You gotta be aware, kind of behind the curtain in real estate how referrals actually work. So what will happen is an agent will call an agent in another market and say, "Hey, I got a client for you", get a percentage referral fee from that agent, I've seen as low as 15, I've seen as high as 35, if not a little bit more in some cases. But what's really important is who are they calling? Are they just calling a random broker and saying "Hey, I got a referral, I want 35%, "give it to whoever you want."? Or is it somebody that they actually know and they vetted and they know what type of business they run, are they a top producer, do they know what they're dealing with? If you're looking for investment properties, and that agent gets a call, sometimes people will just fake and say, "Yep, I do investment properties, "I totally specialized in that." and then they might be learning on the fly at your expense. Just make sure you know who you're dealing with, make sure you know how they got vetted. Like Hamilton, for example, Mike Kettle, I've known the guy for three, four years, I know exactly how his business runs, and I know he would be treating my clients like family. So you just gotta be aware of the situations that you're getting yourself into.

Disclaimer: "Although care has been taken to ensure the accuracy, completeness and reliability of the information provided, we assume all information is subject to change and should be verified independently by the buyer and their agents.”

#THECLOSERSDAILY : EPISODE 188: OFF MARKET DEAL

Tonight we've got everybody's favorite thing in Real Estate, and that's an off-market property. We always promise that we're gonna give you guys off-market deals, aside from just the insights that we do on the daily episodes. So 1621 Mardell, off market, exclusive listing. It's not going on MLS. It's gonna be priced at $289,000. Cash flow is just over about $1,000 a month, it has just over a six cap as well. If you're curious about that, let us know. We'll send you a link, or check out the link below and sign up and we'll blast it out to our private network tomorrow. Again, it is exclusively listed. Agents know what that means out there. So if you're curious, or you have buyers, feel free to give me a shout and I'll give you the lowdown on the property. Student rental near Fanshawe Area, and it will fly off the shelves. It'll sell before it even goes on MLS.

Disclaimer: "Although care has been taken to ensure the accuracy, completeness and reliability of the information provided, we assume all information is subject to change and should be verified independently by the buyer and their agents.”