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New to Canada Homebuyer Program A Big Plus For Recent Immigrants

Published February 19, 2024 by Real Estate Leads

We certainly don’t need convincing that Canada is a great country. Here at Real Estate Leads, we’ve met all sorts of like-minded people in our aim to introduce realtors to ways to get more real estate leads as an agent and it seems the consensus is unanimous.

What makes Canada so appealing to those of us from families who’ve been here for generations is what makes it appealing to newcomers too. Many of us had great-grandparents who came to Canada from the British Isles hundreds of years ago with the same idea of a new and better life.

Back then you could get a large parcel of land for what wouldn’t even be half your down payment on a home these days, and the word ‘condo’ didn’t even exist. With the fact home ownership can be dauntingly expensive, it’s ideal that the New to Canada Program for Immigrants has been introduced to make home ownership a possible reality for people who have recently immigrated to Canada and are bringing their professional expertise and career prospects with them.

This versatile program makes it possible for qualified homebuyers new to Canada within the last 5 years to purchase a home with a down payment of as little as 5%. You can purchase a home, build equity, and become economically established in Canada sooner than ever before.

The property value must be less than $1,000,000, and loan security is available on first mortgages. Borrower qualifications include standard income and employment verification, plus 3 months minimum full-time employment in Canada, with borrowers being transferred under a corporate relocation program being exempt.

Only certain homes and home purchase quantities are allowed within the program. The maximum number of units an applicant can purchase is 2, and 1 unit must be owner occupied. Newly constructed home must be covered by a lender approved New Home Warranty Program, and existing resale properties must be readily marketable residential dwellings, located in markets with demonstrated ongoing re-sale demand. The estimated remaining economic life of the property should be a minimum of 25 years, as may be determined by a qualified provincially-appointed appraiser if deemed necessary.

Other lending stipulations for this program include:

Applicants must have a 90.01-95% International credit report (Equifax or Transunion) score demonstrating a strong credit profile OR 2 alternative sources of credit demonstrating timely payments (no arrears) for the past 12 months
Applicant must have immigrated or relocated to Canada within the last 60 months
Must have a valid work permit or obtained landed immigrant status
All debts held outside of the country must be included in the total debt servicing ratio (note: rental income earned outside of Canada is to be excluded from the GDS/TDS calculation)
Guarantors are not permitted
Foreign diplomats who do not pay tax in Canada are ineligible for this program

Qualifying terms and interest rates are as follows:

Fixed, standard variable, capped variable and adjustable rate mortgages are permitted
Maximum interest rate term of 25 years
The qualifying interest rate is the greater of the contract rate or 5-year benchmark rate

and purchase transactions may be made up to a 95% LTV (loan to value) limit, with – as mentioned – a 5% down payment on properties up to 500,000 in value, and a 5% down payment on $500,000, with an additional 10% down payment on the portion of the home value above $500,000 if purchased for any price between 500k and 1 million.

We hope this programs is helpful for valuable newcomers coming to Canada to make our country a better place to live, as has been the case for well more than 200 years now. And we also hope it makes for more clients for our realtor readership. Check Real Estate Leads Availability here and receive qualified online-generated leads provided to you exclusively for your exclusive region every month, and ask away with any questions too.

3 Things Many Real Estate Brokerages Won’t Tell New Agents

Published August 12, 2019 by Real Estate Leads

This topic here today is quite a natural one given the fact that this service will be most attractive to new real estate agents in Canada. The majority will have already chosen a real estate brokerage and the bulk of you will likely be very happy working out of there. Some will have yet to make that decision, though, and it’s in the interest of helping these fledgling professionals that we’re going to use this week’s blog to share some realities of being new to a real estate brokerage that you may not be aware of.

Here at Real Estate Leads, our online real estate lead generation system in Canada is an excellent way to increase the effectiveness of your client prospecting efforts and help you build your client base more quickly. Paired with the usually less-than-rosy realities of what it’s like to be new to the business and a brokerage you’re about to learn of here, the value of using technology to get your business gaining steam is probably going to be that much more attractive.

So let’s get right to it – 3 realities that most new realtors aren’t told during the brokerage interview.

The Curveball Pitch

Brokerage interviews are usually 30-minute sales pitches where the brokerage aims to impress on the new realtor why their brokerage is going to the best spot for them to branch onto. You’ll be making money for them, so they need you as much as you need them. Most brokerages will keep it all very upbeat and positive as a result, and avoid mentioning anything that could be perceived as a negative for them or the profession as a whole.

It’s not so much that they want to omit the information for its own sake. It’s more that they don’t want you thinking the bad stuff only happens at their brokerage.

Yes, all these pitfalls to extensive success early in a real estate career will apply to every new realtor and whichever brokerage they end up choosing to work with.

Real Estate Business is Difficult, and You May Fail

To say directly – or even imply – that real estate is easy money is really doing a disservice to someone. Unfortunately, real estate is not as easy money as a lot of people make it out to be. It requires a great deal of hard work, patience and persistence. The fact of the matter is that real estate sales involve a lot of time doing a lot of work, and often for no money. There’s a lot of running around, researching, networking, following up, and showing and submitting of offers – all with people who could be ready to submit an offer or leave you entirely hanging after all you’ve done for them.

The success rate in real estate for newbies isn’t high can be pretty low and it’s possible that you may end up being one of the 1 in 6 realtors who leaves the profession within one year of becoming licensed – as is the statistic from the RERC (Real Estate Regulators of Canada).

You Get What You Pay For

Brokerages make money by charging their fees. Charging agents to be a part of their brokerage is how real estate companies make money. That may be with a monthly desk fee, a commission split, an annual fee – or a combination of all three.

Just as it is in any business, the more you are able to charge equates to having more services, value and time you can provide. It’s simply not possible to provide quality real estate services to your clients if you’re charging discount rates. This applies to brokerages too, so choose wisely with this very important fact front and center in your decision process.

Unfortunately it’s fairly common for some agents to think they can pay the lowest possible brokerage fees and still get good service from it. That’s unlikely – be wary of brokerages that offer lower brokerage fees, as you truly do ‘get what you pay for’ here too.

Prepare for An Extended ‘Cash-Strapped’ Period

A new real estate agent is always going to be in the process of building a real estate business. If you’ve ever spoken to any business owner, you’ll know that money is usually tight in the beginning. The biggest reason for that is there’s a lot of upfront costs that are being incurred ongoingly while you’re not creating income – or creating very little of it. Going for months like this in the beginning can make this business very intimidating.

Again, the reason brokerages won’t be telling you this very clearly is that they don’t want to think that’s a reflection on them. It’s the nature of the business, and so it really is smart to be prepared for a less-than-smooth start to your real estate career. Focus on the right things, provide real service and value, and be very proactive in learning the trade and you’ll be much better equipped to get through the lean period without second-guessing your career choice.

Sign up with Real Estate Leads here and receive a guaranteed monthly quota of buyer and / or seller leads that are yours exclusively. You have your own region of any city or town in Canada, and all of the leads generated by individuals in that region will be sent to only you. It’s a sure-fire way to supercharge your client prospecting efforts and ensure that your new real estate business becomes profitable sooner rather than later.

5 Social Media Marketing Tips for Real Estate Agents

Published June 18, 2019 by Real Estate Leads

It used to be that realtors who were skeptical about this new ‘social media’ trend could actually dismiss it as a passing fad, or perhaps even as something that won’t be as relevant for ‘their’ clientele. Well, here we are in 2019 and the first part of that is now definitely untrue, and in truth the second part of it isn’t likely very accurate either.

Social media is used very integrally to promote consumer interests – and pretty much any consumer interest. Real estate is no exception to this, and almost certainly the majority of you are already putting at least some part of your budget into social media marketing for your business and in promoting properties that you have listed. And it’s 100% percent true that older people have now come around to the appeals of social media too. Not to the same extent millennials and the like have, but still enough that it’s a viable advertising means for people with ‘deeper pocket’s too.

Real estate is a competitive business, no one needs to be convinced of that. Finding homes for buyers, and buyers for homes, isn’t easy and effectively prospecting clients is a must if any realtor is to be successful. Here at Real Estate Leads, our online real estate lead generation system is an excellent way to see to it you have more in-contact opportunities with prospective clients.

Social media can be helpful in this regard too, and especially in the way it increases your visibility as a real estate expert for your chosen area. Today we’ll look at 5 different tips realtors can use to maximize

Create Your Business Page

It’s true that Facebook is not the social media app of choice for young people any longer. However, it is the one of choice for people who buy homes. Yes, greater numbers of adults are enjoying using Facebook to keep up with all the activities of their friends, and any time you pique the interest of a potential homebuyers with the ability to actually buy a home then you’ve potentially done very well.

Facebook allows you to create a business page, and it’s entirely different from the ones you can have for your personal profile. It’s highly recommended to create your own Real Estate Business Page on Facebook, and use it to promote yourself, your properties, and – last but not least – a resource page for testimonials for satisfied customers. You can link it to your own website, or your blog (there or otherwise), and a whole lot more.

It will take about 10 to 15 minutes of your time, and you also have the opportunity to place paid ads through it that will be shown to Facebook users. Highly recommended.

Make Your Facebook Page the Hub of your Social Media

Plain and simple, your Facebook Business Page should be your hub and the main funnel for your online presence. Your followers’ email and phone numbers can be collected with FB messenger, ad forms, or with a chatbot. The interface of the page provides access to your photos, calendar, stories, bio, contact information, timeline, events, and more. People who are comfortable in the social media realm will like seeing that you’re comfortable promoting yourself there, and they won’t hesitate to contact you and express whatever real estate interests they may have.

In addition, you can even manage your Instagram business from your Facebook page. A great Facebook page really can go a long way in making your real estate business visible to prospective customers

Focus on Customers

Traditional marketing has always been geared around understanding your target customers’ needs, and then tailoring your strategy and ads campaigns to them. Inbound marketing is entirely different. It’s based on the strategy of creating content that your target market with an Attract —> Engage —> Delight model. The last part of that – delighting – is all about giving your customers what they want.

What goes into that depends on the type of client base you’re targeting, but research goes a long way here.

Inbound Marketing with SEO

There may be some realtors who are familiar with search engine optimization, but if there are we imagine they’re few and far between. Having the content you enter on your social media profiles beign SEO optimized is very important. Now if that’s beyond you, no problem, as there are plenty of paid resources online that can make it easy for you to determine which keywords are most searched on that subject matter – and most often the ones you’ll be after will be along the lines of ‘homes for sale in _____’ or ‘________ real estate’

The objective is to rank your content on the first search results page, and it’s really advisable to hire somebody to do this for you effectively if you can’t do it on your own. It’s an essential part of social media real estate marketing (there’s one right there 😉 ) that works.

Tell a Story

Instagram Stories and Facebook Stories are well suited for promoting real estate. Many people will even insist that this should be your template for creating new ads. Tell a story with photos and video of the real estate you’re promoting. Don’t focus on selling primarily, and instead put your focus on attracting and engage your audience. Engaging content is the key, and as with everything, practice makes perfect. Be smart about it and you won’t be able to go too wrong, and you’ll almost certainly improve with them.

What’s more, if you do create one and decide it’s not to your liking you can always take it down as quickly as you like.

If you take nothing more from this, make sure your social media marketing starts with a Business Page on Facebook. Being on multiple platforms is advisable, and Instagram and Twitter also lend themselves to real estate business promotion too.

Get on Board with This Today

Sign up with Real Estate Leads here and receive a monthly quota of qualified, online-generated buyer and / or seller leads that are delivered to you exclusively for your similarly-exclusive region of any city or town in Canada. It’s your region, and they’re your leads. You’ll almost certainly come to see it as money very well spent in the interest of growing your real estate business in much the same way so many other realtors across Canada already have.

Want to read about that yourself? Check out our testimonials page.

The Basics of Putting Together a Solid Comparative Market Analysis

Published March 5, 2019 by Real Estate Leads

If you’re new realtor here in Canada you’ll quickly learn that offering a free market analysis for prospective clients and their homes is pretty much standard practice for every real estate agent. They’re a show of good faith and a nice little bonus for homeowners who are looking for an experience and knowledgeable realtor who is an expert with the local market. That’s an opportunity for you, and being able to put together a solid CMA for clients is definitely important. The same can be said for ANYTHING that helps you become ever more solidly cemented as a good realtor who’s known as a good choice.

Client prospecting is a multi-approach need for all realtors, not just those who are new to the business. Here at Real Estate Leads, our online real estate lead generation system is a real benefit for those who understand what the power of the Internet is capable of in regard to identifying people who are very sincere about buying or selling a home in the near future. Nearly everyone who’s signed up so far has come to regard it as money well spent, and there’s plenty of room left to get onboard.

But back to the topic here, what are the basics of what goes into putting together a CMA for homeowners you’d like to eventually see become your clients? Let’s discuss that now.

Plain and Simple Comparisons

The purpose of a CMA from the realtor’s perspective is twofold; to share valuable information with the homeowner, and equally as prominently to hopefully make them into clients down the road. From the homeowners perspective, however, it’s much simpler. They’d like to know what the value of their home is in comparison to those seen with other similar homes in the neighbourhood that have sold for certain prices.

Accessing sold property records allows the realtor to select recently sold properties that are similar to the subject property and in the same geographical area. Comparing these properties is only just a start, as you need to adjust for feature differences, and the realtor should always make explicitly clear that this CMA is only an estimate of the value seen for the subject property. Keep in mind that the best realtors will always be just fine with doing a second different CMA for a seller or a buyer.

A second CMA would include comparisons to currently listed similar properties in the area. The same process would be used, but using only currently listed properties. This is smart because it allows an assessment of the current competition, and may highlight increases or decreases in the estimate based on the sold properties. And of course you can be certain your initiative in providing a second CMA will put you in a very good light with the homeowners.

Quality of Comparable Selections

A crucial part of any CMA’s accuracy and one where you really need to do your homework to make sure you’re in the right with it is determining market value based on a selection of the best comparable properties. It’s true that choosing even one different comparable out of three or four homes taken into consideration can result in very different valuations. You want to have a CMA based on the best comparable properties, and for two reasons.

First, it ensure that there’s very little chance the homeowners will be disappointed when finding that there home has been overvalued in the CMA. Second, the lower value that will come with may end up leading the home to be listed at a price that eventually is exceed in the sale price due to competition amongst buyers who see more value there.

How that will appeal to homeowners needs no explanation!

Considerations When Choosing Comparable Properties

When the property sold: Homes that sold more than two or three months ago are not good comps, especially in fast-moving markets. The more recent the sale of the home being completed, the less likely it is that the market has shifted enough to make the properties’ sold prices less relevant to the market analysis you’re preparing.
The property’s location: The most ideal situation is that the home is in the same neighbourhood. When that’s not possible then the next consideration is locating comparable homes in the same suburb or in a next-door neighbourhood. This is nearly always possible, at least in large urban / suburban centers. In more rural areas there’s a lot more leeway with comparative properties used.

The home’s characteristics: This is pretty straightforward – what number of bedrooms? Baths? Overall square footage of the home? Size of the lot? The homes you choose as comparable homes should be as similar as possible with regard to these considerations. It’s rare to find ones that match exactly, so choose the ones that come closest.

Quality of the Adjustments

You need to also keep in mind that you must tailor your CMA numbers to compensate for differences in the structures. A realtor will understand the need to make adjustments when weighing the sold prices of the comparable homes to those being considered for the subject property.

An example; The prospective client owns a 3 bedroom, 2 bath home with a two-car attached garage, and 2500 square feet of living area. You’re tasked to find three or four comps with all of those features at approximately the same numbers:

One comp only has two bedrooms. You can assume that it would have sold for more money with three, so you can go ahead and add some money back to its actual sold price to adjust it to having its 3 bedrooms. The same approach can be used for baths and garage spaces.

If it is the opposite, say three bathrooms to the subject home only having two, you’ll go ahead and subtract the value of a bathroom from the sold price as you work out an approximate selling value for this comparable home.
Generally, square footage calculations aren’t touched until you do your calculation final.

Once you have adjusted the comparable homes sold prices, then you’ll divide each sold price by their square feet to get an exact sold price per square foot. Next, average those for your three or more comps to get one average value per square foot that can be applied to all of them as a ‘housing average’ for the area. Then you simply multiply that by your subject home’s square footage to arrive at an estimated current market value.

These are the basics of putting together a CMA, and there’s plenty more to be learned – from your real estate brokerage colleagues most likely.

Sign up with Real Estate Leads here and receive a monthly quota of qualified, online-generated buyer and / or seller leads that are delivered to you exclusively, and for your own exclusively-served region of any city or town in Canada. That part of it makes it important to act fast, as once a territory is claimed it’s then unavailable to anyone except that one realtor. It’s a dynamite way to supercharge your prospecting efforts, and the testimonials of realtors bear that out in a big way.

Redfin The Next Disruptor to Arrive in Canadian Real Estate Business

Published February 19, 2019 by Real Estate Leads

We’ve talked briefly in the past about how the trend of industry disruptors has extended to the Real Estate world as well, and as we are now firmly into 2019 we are seeing yet another example of it again. Indeed, the ways the real estate business has been for many decades have changed very drastically over the course of just the last one, and as you might expect these changes have been very primarily fuelled by advances in digital technology.

As a realtor, one of the things that you must do is accept the reality of the situation. That reality is that these advances make it more of a challenge for you to work as a realtor exclusively in traditional means and approaches and still have the type of success that you envision for yourself. You definitely need to adapt, and revise your strategies and skillsets offered because, as we’ll discuss here today, there are new disruptors arriving in Real Estate all the time and that’s not likely to change.

Here at Real Estate Leads, our online real estate lead generation system is one major advantage for realtors that relies on the same trend where advances in digital technology are coming fast and furious. It leverages the power of the internet to provide real buyer and seller leads based on prospective buyers and sellers filling out forms online. There’s more to it than that, but long story short what you can know is that our service is one digital technology advancement that you can – and should – see very favourably.

Redfin Arrives in Canada in March

Now Redfin, like PurpleBricks before it, is yet another entry into the real estate business that most realtors will have difficulty seeing favourably. That’s because it markets itself as a more affordable way for people to buy and sell homes, and there’s no getting around the fact that services like Redfin and PurpleBricks eliminate a lot of the need for what you’re able to provide as a realtor. Not ALL of it, but a good portion of it.

We’ll say briefly that these types of websites and their services certainly won’t eliminate the need for realtors, but it is changing the playing field for sure. Let’s have a look at this.

Redfin is based in Seattle and will open in Toronto and Vancouver by March. It has plans to expand to other major Canadian markets once well-established in Canada’s 2 largest urban metro centres.

Redfin is a technology-powered brokerage that will have its own agents working in their offices while delivering much of the same services that you do as a realtor. You do it in person, they do it remotely via the Internet. That’s the start of what you need to understand about Redfin.

Redfin was built on the understanding that nowadays so many consumers start their search online. Being a technology-first brokerage helps them meet customers at a lower cost, and obviously that’s a HUGE benefit for the prospective home buyer or seller. Having services provided online means a streamlining of many of the processes that would require some back-and-forth, and time delays, when these customers are working person-to-person with a real estate agent.

Since 2006, Redfin has established its presence in more than 85 markets in the USA, and now Redfin’s website and mobile apps will show all homes for sale through the local MLS in Toronto and Vancouver. It will also put sold prices in those markets on display, whereas previously clients requested that information from their realtor and then waited for him or her to get back to them with it.

Canadian Market Plans

Redfin’s aim is to eventually offer services in other major Canadian cities, but that will obviously take time. For those of you working in the GTA or GVA, however, this powerful competitor is arriving soon and is expected to take root quite quickly. You still have the ability to prospect clients in traditional ways, and many people will still prefer the in-person service and human interaction / trust part of working with a local real estate agent.

That said, all realtors are going to lose prospective clients to these types of services with Redfin and PurpleBricks. That’s the just the way it is. You may need to rethink and reorient your service and promotion platforms and how you present yourself to clients, and it may be something you need help with. If so, don’t be afraid to go back to the drawing board with a real estate business consultant expert.

Take note of the fact that salespeople working for Redfin will be employees of the company – not independent contractors – and will be paid bonuses based in part on customer satisfaction. The number of agents in individual Canadian offices would be a reflection of how busy those offices become.

Agents won’t be recruited in the way a conventional real estate brokerage does, rather customers will be recruited and then agents will be brought in based on the level of increased demand.

Redfin will charge home sellers a 1% listing fee, and the remote agents will provide complete home-selling services, including pricing and staging advice, free professional photography, a 3D walkthrough of the home, open houses, yard signs and nicely designed and put together marketing materials.

That’s right – a lot of what a realtor did him or herself in person for decades. Times change, and you need to change with them.

Big Potential Savings a Necessity for Many Now

Redfin has provided estimates on what they’re able to offer in the way of savings; for example, a seller in Toronto will save $11,250 on a $750,000 home sale when compared to paying a listing commission of 2.5%. The listing fee does not include a buyer’s agent commission, but that’s paid by the seller here with Redfin.

The appeal of services like Redfin are furthered by the reality that nowadays it’s harder to get a loan. Foreign investment has driven prices up, and there’s ever-greater numbers of people who need every last dollar possible put towards the house. In such a scenario, the cost savings made possible with services like these are obviously going to appeal to a lot of people.

Lastly the Redfin model rewards customer service, so agents are accountable to deliver the best outcome for their clients. Customers are asked to review the service they received from their Redfin agent, whether they buy or sell a home or not. The reviews will then be published on the agent’s online profile, and agent bonuses will then be based on these reviews – among other factors.

The New Realities

These ‘disruptors’ aren’t going to stop arriving any time soon, and they’re being seen in all sorts of different businesses and industries that have been the same way for decades up until now. It’s a trend that’s here to stay, and overall it’s a good one as it puts more clout back in the hands of the consumer and we ALL benefit from that – yourself included.

As a realtor, you’re going to have to adapt and, as mentioned, revisit all of your business promotion and marketing approaches to ensure you continue to have the same flow of business you’ve become accustomed to. If you’re starting out, you may be at an advantage as this ‘new reality’ will be the only reality you’ve ever known.

Experienced or new to the business, all realtors should sign up with Real Estate Leads here and receive a monthly quota of qualified, online generated leads delivered to them exclusively for their similarly-exclusively served region of any city or town in Canada. Once you have it, it’s yours and yours alone and only you will receive the buyer and / or seller leads for it. Most realtors who’ve already jumped on the opportunity now see it as marketing budget well spent, and we’re sure you’ll find it to be the same.

Realtor Know-How: Calculating Land-to-Building Ratio

Published February 11, 2019 by Real Estate Leads

Every second week we try to shift our subject matter back to topics that are among the many that new realtors can – and should – familiarize themselves with when aiming to become a more knowledgeable and well-rounded real estate professional. It’s a worthwhile aim for sure, as it goes a long way in being seen as realtor who has more to share with all the different sorts of real estate clients who will have different buying / selling prerogatives.

All of this is of course done in the big picture perspective of building your real estate business. Here at Real Estate Leads, our online real estate lead generation system is an excellent way to get even more out of your client prospecting efforts. Putting the power of the Internet to use and connecting you with people who are genuinely interested and increasingly ready to buy or sell a home should sound good to any realtor, and that’s exactly what you get with Real Estate Leads.

Today’s realtor know-how topic is one that will be very handy and practical when working with commercial or investment real estate buyers; calculating land-to-building ratio. Let’s get started.

Land Parcel Percentages

We can start with understanding that every structure occupies a certain portion or percentage of the land parcel it’s sitting on. This percentage or ratio of the size of the building to the land is referred to as the ‘land-to-building ratio.’ A high ratio indicates that the property isn’t being used to its fullest potential. A low one is indicative of the property already being at full capacity.

The Equation

It’s quite easy to calculate the land-to-building ratio. Here’s the equation:

Divide the square footage of the land parcel by the square footage of the building

Here’s an example:

188,000 square feet of land divided by 43,500 building square feet. This works out to 4.32

This is a 4.32:1 land to building ratio, and that’s a high one. The average is between 2.5:1 to 3.5:1.

Relevance for Residential Properties?

There can be, but it’s typically not something that factors in as strongly for residential properties. The land to building ratio is rarely seen in residential appraisals. It is helpful to know that the ration can be limited by municipal codes and property restrictions, however. In some instances there is a desire to keep the size of homes to a certain percentage of the lot space available for building.

Land-to-Building Ratio in Commercial Applications

The use of the land to building ratio is obviously of much greater relevance with commercial and industrial applications. For example, building codes usually include very firm requirements for the amount of parking that certain size structures must maintain, and the same goes for setback and green area considerations.

A commercial space with an 11 to 1 land-to-building ratio might not be best utilizing the land, there would definitely be value in the additional space. Another property with a ratio of 2.5 to 1 could be at maximum capacity.

It’s easy to imagine that most considerations around municipal and other regulations occur with commercial, industrial, and institutional real estate. Environmental protection issues often come into play with industrial properties as well, and in particular ones related to hazardous materials.

Let’s look at specific commercial real estate types and the considerations that are added to the Land-to-building ratio for each:

Retail Shopping Center or Mall

First and foremost here are population demographics considerations. A consistently sufficient flow of consumers to support the shops and businesses is a must. Traffic patterns are also important. Ratios of the tenant retail lease spaces and the overall theme of the center are important as well.

Office Buildings

The type of offices they’ll house is something to consider. For example, A medical office or dental office complex would have very different space requirements.

Warehousing and Specialty Operations

Warehouses require a lot of space, as well as large truck loading docks much of the time. They don’t need parking spaces the same way a retail development would. Specialty businesses like car and RV dealerships or any type of consumer service provider will have a whole array of different considerations that are unique to them, and different to land-to-building ratios

Excess Land Value

The decision where you will be more likely be expected to volunteer your expertise is whether paying for excess land and its zoning is a wise investment of capital. As the realtor, you may be asked if it that excess land can be divvied up and sold, either in the short-term or long-term. Is the overall land made up of two or more independent parcels? Do any existing or planned structures infringe upon one of them? Does the unused land have its own access? Can it be subdivided legally?

All of these are questions that your clients may ask of you. Be prepared to answer them.

Sign up for Real Estate Leads here and receive a monthly quota of qualified, online-generated buyer and / or seller leads that are delivered to you – and only you – for your similarly exclusive region of any city or town in Canada. Once you sign up with us, that region is yours and all of the leads for it go to you and no one else. We can say truthfully that pretty much every single realtor who’s gotten on board so far is happy with the service and sees it as money well spent as part of the business promotion and marketing budget.

Try it for yourself, we can guarantee you won’t be disappointed with the way it put you in touch with real prospective clients for your real estate business.

The Increased Costs of a Variable Mortgage in Canada

Published December 25, 2018 by Real Estate Leads

As a real estate agent it’s pretty much common knowledge that the vast majority of your homebuyer clients will be purchasing their new home with a mortgage. There are a few buyers who are sufficiently deep-pocketed to buying a home outright without the need for financing, but they’re few and far between these days. Being regarded the way you want to be by your clients is a product of being seen as an expert on every aspect of buying or selling a home, and the ins and outs of securing financing in the best way is a part of that.

Buyers will have a choice of a fixed or variable mortgage when buying their home, and these days in Canada it’s a much more costly option in the long run to choose a variable mortgage. This is true in the face of that being very different from the way it’s been for decades where choosing a variable mortgage had many advantages to it.

Here at Real Estate Leads, our online real estate lead generation system for Canada is a great way for you to get more out of your client prospecting efforts, and then share your expertise on anything and everything related to real estate – including what are their best choices when moving on to working with a mortgage provider. With that understood, let’s look at why variable mortgages are more often not the best choice anymore.

Understanding Variable Rate Mortgages

A variable rate mortgage involves the interest rate not being fixed for the life of the mortgage. Instead of being locked in a higher interest rate, the borrower has their interest calculated monthly and based on the lender’s prime rate (%). This can be a positive or negative for the borrower, depending on the type they have.

Conversely, a variable rate borrower pays a fixed monthly sum, but the amount paid towards the principal will change depending on whether the lender’s rates go up or down. If rates go down, you pay less interest and then more goes towards paying off your principal loan. This means your balance is reduced faster, and this has the potential to save you a significant amount of money. If your rate goes up, then you pay more in interest and reduce less of your principal loan amount. As you can see, that can cost you a lot more.

Over the past year, the variable mortgage rate has jumped considerably, and that’s been very disadvantageous for homeowners who chose variable rate mortgages

The Estimated Canadian Variable Rate Mortgage Is Now Up Over 22%

The cost of a variable rate mortgage has been increasing across Canada. The Bank of Canada has stated that the typical rate reached 2.72% on December 6, which is a jump of 2.25% from a month previous. The rate is now over 22.52% higher than it was at this time last year. The impact of this for borrowers is very substantial.

At mid-December last year it was at 2.23%. In late January of 2018 it spiked to 2.45% but in June it had levelled back out to 2.35%, but in July it began to climb hard. In October it shot up from 2.49% to 2.66% and his been rising ever since until now.

Paying More To Borrow The Same

Let’s look at that in real world impact. A borrower at the estimated rate who borrowed last year, would now have their interest payments sitting at a 22.5% higher rate. If they make the same payments, the amount paid to their principal would decrease by about 6.6%. When their variable term ends, they will have paid much more cash to the bank and made much less progress towards paying off their mortgage.

Interest rates fell for years, but now they’re starting to climb decisively. It used to be that variable rate mortgages worked in favour of borrowers, but as rates were cut these borrowers made principal contributions that tended to be higher. Now the scenario is exactly the opposite. Variable rates are rising in response to increasingly heavy mortgage debt levels, and this of course is making it more difficult for homebuyers to make real progress in paying their debt.

Long story short, advising your clients about the greater advisability of a fixed-rate mortgage these days may be something you’ll want to do.

Sign up with Real Estate Leads here and receive a monthly quota of qualified, online-generated buyer and / or seller leads delivered to you exclusively and for your similarly-exclusive region of any city or town in Canada. It’s a great way to get more out of your efforts and build your client base more efficiently and effectively.

Toronto Real Estate sees almost a 2% increase in sales in 2019

Published October 9, 2018 by Real Estate Leads

Last week, the Toronto Real Estate Board announced that year over year sales in the Greater Toronto Area had seen a 1.9% increase in overall sales. This year over year increase is good news for local realtors and even better news for those who are looking to buy or sell in the hot Toronto market. This kind of increase was expected, but with sales through the multiple-listings system going up over 120 this month when compared to last year, the board has been ecstatic.

This news was only made better when the board compared average selling price in the Greater Toronto Area. Last year, the average home sold for $774,489, while this year the average is now sitting at $796,789, an increase of over 2.9%. This is a huge jump, and although this is still a cool housing market when you compare Toronto to the likes of Vancouver, GTA realtors are starting to take notice.

GTA realtors might be enjoying a larger than normal selling price when compared to last year, but one of the more concerning numbers for those realtors who sell a lot of below-priced homes it the fact that new listings are down. Overall, the GTA has seen a decrease of 3.1% in new listings, and this could start to affect the bottom line of some of the regions top agents.

The board has seen an increase in price growth mainly in higher-density properties around the city. This means that realtors who are selling townhouses, condos or semi-detached homes have seen an increase in both profit and movement around their properties. The numbers have finally started to stabilise after the provincial government introduced the foreign buyer’s tax and speculation fees on vacant homes that saw the market dip in the new year. However, realtors need the advantage to stay ahead, and that comes in real estate leads.

Real estate leads are one of the best ways for Toronto or GTA based realtors to get ahead of the curve and ensure they are one of the more successful realtors in the area. From being able to get leads on who is selling, and who is buying, you will be able to match homes or condos to prospective buyers with relative ease. Imagine not having to cold call throughout the day, and instead, have warm leads delivered to you in a competitive market like Toronto.

This is the reality for those who use real estate leads, and with a hot market like the GTA, you need to get ahead. Now is the time to see how real estate leads can help you take advantage of this almost 2% jump in the market, and the almost 3% jump in pricing, and enjoy being a realtor again. With leads in your mailbox, you will be able to focus on what you love about your job, selling houses, and finding perspective home buyers the house or land of their dreams. It is time to start enjoying work again, see how real estate leads can help make that happen!

Saleability Factors Clients Are In Control Of When It Comes to Selling A Home

Published August 15, 2018 by Real Estate Leads

Even the greenest realtors will quickly find out that selling a home is stressful for clients, and particularly so if the market is more of a buyer’s one that an a seller’s one. That part of it is of course dictated by market forces and isn’t something either you or your clients should be dwelling on. Your clients will be looking to you to be the voice of authority and experience that is guiding them along the way to their receiving the best possible outcome with the sale of a property that they’ve likely invested a lot of their time into owning it. Needless to say, dropping the ball in that regard isn’t an option.

Now we do know that you don’t need to be convinced of that. Gaining clients isn’t easy, and it’s also very competitive in this industry. There hasn’t been enough ‘pie’ to go around for decades, and it’s pretty safe to say it’s never been more challenging than it is today. Here at Real Estate Leads, our online real estate lead generation system is an excellent way to reinforce your efforts there. Once you’ve made initial contact with these potential buyers or sellers, then you have the opportunity to wow them with your knowledge of the biz

Nothing is more assuring for folks in the early stages of the home being on the market than a realtor who can be the voice of reason. And further, if you can take that voice of reason and help them with saleability of the home, you’re well on your way to becoming ‘their’ realtor.

So, here are 5 saleability factors that are very much in your client’s control, that will help get their home sold at the right price.

The Property’s Condition

The home in question may meet all of a buyer’s criteria (and look great on paper) but if it’s ‘run down’ in any way when a buyer comes knocking, he or she will likely leave quickly and scratch your client’s home off their list. Advise them that it is very much their job to make sure their home is in tip-top shape to ensure the home is sold at the best price possible. Make it clear they need to be certain that everything in the home is well-maintained. A good start is to have them declutter their home and make sure everything is orderly and well-serviced. A home that’s been cared for very well and promises to require very few repairs if any and minimal ongoing maintenance is very attractive.

The Terms

Suppose your clients have met with a keen buyer. Here’s what they should do to do themselves a favour and make the purchase an easy decision and smooth process. A good many interested buyers opt out of a potential purchase for no other reason than that the terms are just too complicated or inconvenient. Advise your clients to be proactive in defending agains this. Investing in a home inspection report and dealing with the issues before their home hits the market is HIGHLY advisable. Doing so will help them seal the deal and enable you to reach a larger market as their realtor. Another factor to keep top of mind is their move-out date, and ideally one in the near future. Showing potential buyers that they are able to vacate the home quickly will work to their advantage.

Availability

A client’s home could be the best-looking property on the local market, but what good is attracting buyers if there’s never any available time to meet with them? It is essential that clients adhere to a schedule that meets the buyer’s needs and to also be able to accommodate last-minute viewing requests – even if they will be disrupting their lives. It’s in their best interest to be flexible. Let them know that a buyer’s sense of urgency could be a positive indication that they want to move fast. Denying requests to see the home could mean your clients losing out on a sale. When they are preparing to sell their home, prompt them to take note of any issues that should be dealt with before it hits the market.

Upgrades and Extras

Upgrades and extras go a long way in improving on a home’s saleability. From kitchen renos to installing a new heating system to window upgrades or even simply patching up holes and then applying some fresh paint. Advise clients to stick to practical renovations, as decor renovations are particular to a person’s taste and of course tastes vary wildly from one person to the next.

Price Setting

Speaking with a realtor and being open to his or her suggestions as to what is the right price for a home makes so much sense for clients, and it is perfectly acceptable to state plainly tha pricing a home realistically gives them a much better chance of selling their property quickly. When pricing their home, they should set emotions aside to ensure that their price is fair and justifiable. Explain that the home’s value is best and most realistically indicated by reviewing the comparables. Researching homes that have recently sold in their market and which possess the same characteristics as your clients. Then sit down and show them what you’ve learned, and how it should dictate the way they approach pricing their home as it is prepared to be put on the market.

Sign up for Real Estate Leads here and receive a monthly quota of qualified, online generated buyer and / or seller leads that are delivered to you exclusively and also for your own privately served area of any city or town in Canada. It’s a proven effective way to get so much more out of your prospecting efforts as you move towards becoming an established and trusted realtor in whatever part of the country you’re serving as a reputable real estate professional.

Market for Detached Homes in Canada Now Officially ‘Flat’

Published August 8, 2018 by Real Estate Leads

Realtors all across Canada have certainly been beneficiaries of the tear Canada’s housing market has been on for years. Come mid 2018 and we’re seeing that that era may now be over, and in hot markets like Vancouver and Toronto it’s becoming the ‘bubble’ isn’t going to exactly burst as predicted, but it isn’t getting any bigger either. That of course means something of a plateauing for home values, and particularly for detached homes that were nearly always selling for way over asking as a result of bidding wars. This and the larger number of qualified buyers looking to buy homes before the new Mortgage Stress Test Regulations via the BoC.

Home sale volumes for the period between March and April hit a nine-year low, according to the Canadian Real Estate Association (CREA), and that of course has effects of all sorts as the increased amount of inventory make it not so slantedly a seller’s market anymore.

Of course, realtors will have fewer prospective detached home buyers as a result of both these trends. Here at Real Estate Leads, our online real estate lead generation system is a great way to get more out of your client prospecting efforts and connect with individuals you want to be in touch with as a new realtor.

No Pop, For Now

Home prices for the most part aren’t dropping, at least for now. The national average home price slid 6.4% last month as compared to May 2017. Most of that’s attributable to the fact that the mix of homes being bought and sold now includes greater numbers of comparatively inexpensive properties, like condos and to a lesser extent townhomes, and less in the way of detached houses. The national average lower is skewed lower accordingly.

Looking at CREA’s benchmark home price, home values were up 1% in May 2018 compared to May of last year. That’s not cause for alarm, but it’s still a very big dip from the often tens of thousands of dollars worth in annual home equity gains many Canadian homeowners had been basking in.

The reality now seems to be price increases in the low-single digits. CREA predicts national average home prices to rise by 3.8% in 2019, with gains in Ontario, British Columbia, Quebec, New Brunswick, Nova Scotia and Prince Edward Island, and prices staying stable in the Prairies and Newfoundland and Labrador.

That trend of stagnating or modestly rising pricing, if it holds up, has implications for home sellers, home buyers and even homeowners who aren’t planning to sell.

Bidding Wars Becoming Fewer

Clients thinking of putting their home on the market should no longer rudimentarily assume that their home will sell for a higher price than their next-door neighbour received last year. There will be exceptions to that, and most likely in Ottawa and Montreal, where home prices are still recording healthy gains.

As a real estate agent, you should have a firm idea of how to price a client’s home competitively by looking at price trends over the past three months in your particular area. Being in the know up front prevents any type of misstep on the part of the seller that may hinder or disappoint them in the future. Know market value, and suggest listing prices accordingly.

Have your clients best interest firmly in place, and have all 3 of you ‘know’ your story as you say, knowing how to defend your price. Ideally, you’ll be able to present the buyer and the buyer’s agent with a spreadsheet showing prices for similar properties in your area over the past few months.

Pricing a home in the ‘high range’ of what it’s worth gives you and your clients room to negotiate, while underpricing a property with the idea of sparking a bidding war isn’t nearly as advisable as it used to be.

See bank appraisals for reasons for that. They’re not as assured as before either, and banks want to protect themselves as well in case of any downturn. Long and short of this is banks won’t lend more than a home’s appraised value. The winner of the bid war may not have the finances to cover the difference once the bank looks at mortgage terms.

It’s important to also have an end date for your client’s listing, to avoid their property languishing on the market and to place a cap on expenses incurred within listing the home professionally.

Downsizing Reconsidered More Often

As we mentioned in our blog of 2 weeks ago, more and more detached homeowners are staying put and not downsizing to smaller living spaces as has been the trend for a long time now. That’s because these owners are now having to resize their expectations, especially if home is Toronto or Vancouver.

Yes, sellers will still make a profit, but it won’t necessarily be the big gains they’d been planning on, and naturally their predisposition will be to hold tight for now

Relatedly, condo prices are soaring in all major urban areas in response to this and many other trends in Canadian real estate.

The prospect of getting a home for slightly less than the asking price has improved, and that’s good news for some buyers. Sign up here for Real Estate Leads and receive a monthly quota of qualified, online generated buyer and/or seller leads delivered to you exclusively for your independently-serviced area of any city or town in Canada. It’s a great way to supercharge your prospecting efforts and generate meeting opportunities with potential new clients.

Six Hallmarks of Successful Real Estate Agents

Published October 30, 2017 by Real Estate Leads

It’s been a while since we offered a blog post that wasn’t related to the nature of the market or the ins and outs of buying or selling a home for clients. Statistics reflect ever greater numbers of realtors becoming REB certified in most major cities in Canada, and while that’s to be expected it still poses competition issues for those who are new to the ‘game’ and feel a real need to start building their business with some expediency.

Here at Real Estate Leads, we’re happy to make our online real estate lead generation system available as a means of allowing these new realtors to start getting in touch with legitimate prospective clients in their area. We of course extend that invite to all of you, whether you’re new to the real estate business or well experienced. But today let’s get back to the basics and share tried-n-true approaches to getting your establishing yourself as a successful realtor, and sooner rather than later!

They are Genuinely Passionate about Real Estate

Quite plainly, nothing is more important than a genuine passion for both homes AND putting people in the right one for them. You need to get a real ‘kick’ out of doing so, and it MUST be more than simply a means of getting your commission. We can’t state this strongly enough.

They Return Calls and Emails with Little to No Delay

These are the realtors that take the opportunity of a lead and make something out of it the majority of the time. They immediately make contact and they follow up, answering any questions and perfectly happy to stay on the phone with clients for as long as the client needs to stay on the phone. They are never disconnected from email, text, and phone and they don’t loosen up on that until the entire client-service experience and transaction is complete.

What this does is foster and understanding in the client that they are very important to you, and that’ obviously a huge plus. In addition, be open to switching your communication avenue to match the client’s preferences. If the client prefers text, then text. If the client prefers calls, then call. Pretty simple really.

They are Familiar and Capable with the Latest Tech

This may be a challenge for some, and older newer realtors in particular. If you’re not 100% adept with modern communication devices and applications, putting time (and perhaps money) into getting up to speed with them ASAP is highly recommended. Most successful realtors are all about their tablets and smartphones, and you’ll find many are also quite capable with higher-end DSLR cameras. They make sure they have great data plans so they are never stuck without a remote internet connection. They try to go paperless as much as possible. They put nearly as much time into learning about technology as they do learning about the changing real estate industry in Canada.

They Know Their Neighbourhoods Explicitly Well

You want to become a “neighbourhood expert” as soon as possible. All top agents are walking, talking encyclopedias of what the neighbourhood offers for a prospective new home owner considering buying in the area. They know what’s on the market, what has sold recently, and the overall status of the neighborhood, including planned changes and developments lined up for the future. Becoming this way doesn’t just ‘happen’, you have to put in the time to learn and always have your ear to the ground to stay on top of what’s new in the neighbourhood.

They Are Entirely Open and Transparent Regarding Their Work

Successful agents don’t just make themselves available and then conduct their work out of sight until the client has a buyer for their home, or a new home to buy. The best ones are very active in ensuring their actions are entirely on display and relatable for the client. When they meet with the client for the first time they explain the process, the potential roadblocks, and any of the more likely scenarios that could occur. They keep the client entirely in the know with negotiations, and in this regard it’s better to be ‘overloading’ the client with information rather than supply a ‘reasonable’ amount of it.

Further, they discuss any perceived need to adjust their strategy with the client very proactively. Try to aim to make yourself so transparent in your operations that it’s unlikely that clients would even have the need to inquire about what you’re doing. But when they do, go on at great length and be very clear in why you think it’s the best course of action.

They Generate Leads by Any and All Means Necessary

Leads are nothing more than opportunities, and not all opportunities will lead to a new client. This is true in many cases where even doing everything in your power isn’t going to convert the lead into a client. That’s the nature of the business, always has been and always will be. Smart agents are experimenters, they try out different types of lead sources, they explore different types of ad campaigns, and they analyze what works and what doesn’t. They understand that having a social media presence is important and that advertising and promotion efforts need to be constantly reevaluated and changed given the current climates in the business.

They Have GREAT Networks

The best and most successful agents don’t just have a network to generate clientele, they have a network of top-notch real estate agent partners who have the same understanding of what’s required of them to be the top agents they are. They know the best contractors, appraisers, lenders, and insurance providers in the business. Aim to be a hub of a group of professionals that can advise and assist with anything real estate or home related. Top agents care for their network and are happy to refer clients to other agents from whom they can rely on receiving the best service. Further, they know and can identify realtors who don’t make the grade in this regard. Admittedly, the second part of that equation is one that takes some time to acquire

The best realtors are knowledgeable, authentic, and equal parts driven and passionate to really help people find themselves in the right home for that stage of their life. You too can become one of them, and signing up with Real Estate Leads here is a great start to begin generating those ‘opportunities’ we’ve been talking about. Follow the tips we’ve laid out for you here and you’ll almost certainly see more of your opportunities successfully converted into clients.

4 Pre-Construction Closing Costs Homebuyers Should Be Aware Of

Published October 2, 2017 by Real Estate Leads

There’s no debating that buying a home during a pre-sale or even further in advance of construction beginning has many benefits. In addition to more agreeable pricing as the first buyer, your clients will also have more in the way of options for customizing their home, modifying it to accommodate a mortgage-helper suite if need be, etc. etc. As well, presale buyers will often have a grandfathered-in clause allowing them autonomy over whether or not they choose to rent out their unit, independent of complex-specific rental restrictions.

Here at Real Estate Leads, our online lead generation system for realtors in Canada has been so especially well received by realtors coast to coast, and we believe that helping you have further success with the increased opportunities it’s providing for you is beneficial for one and all. A knowledgeable realtor is always one held in high regard by prospective clients, so this week we’ll yet again share information on a subject yours may well want to know of – pre-construction closing costs.

They tend to be rather unexpected surprises for many a buyer, and you’ll be fostering better relations between them and yourself if you can make them better aware of these costs long before they near their closing on purchasing a home.

A Few Last Pricey Hurdles

It’s easy to get caught off guard with closing costs when buying a pre-construction home. They’ll vary depending on the value of the home, the municipality in which it’s located, and whether you’re a first-time home buyer or not.

As a general rule of thumb, advise your clients to have 2 – 4% of the purchase price earmarked for closing related costs.

Some of the most common of these added closing costs are:

Development Charges

Pre-construction properties most often have development levies at the insistence of the city. The property developer will almost always pick up the lion’s share of them, but a portion of these costs are still passed on to the individual or couple purchasing the home. These development levies are very necessary; they go towards capital and operational expenses for the city, like building new schools, maintain utilities infrastructure, or funding new transit initiatives.

Clients considering buying a pre-construction home should aim to be very clear on whether or not there’s a cap on development charges, unless they’d like to be surprised at closing perhaps. Low rise homes will have their own specific charges, for benefits such as driveway paving, community tree planting, and work needing to be done to meet municipal building specs. Of course, every situation is different – you can go ahead and recommend your clients consult with a real estate lawyer you trust, in order to review the documents and be 100% clear on applicable fees.

New Home Warranty

A New Home warranty is the term used for a warranty for a buyer’s pre-construction home. What’s typically covered within it?

A multi-year warranty for major structural defects
Deposits (paid to the builder in advance of the construction of the home)
Certain defects in work and material Protection against unauthorized substitutions
Coverage for common elements in condominiums
Compensation for construction delays or occupancy
Against financial loss for contract homes

More information in regards to these different coverages are found at the different new home warranty providers’ websites, depending on your Province. The cost of enrollment is – not surprisingly – dependent on the purchase price of your client’s home.

Ontario – Tarion

British Columbia – New Home Warranty via BC Housing

Alberta – ANHWP

Saskatchewan – NHWP.org

Manitoba – MBNHWP

Quebec – RBQ

New Brunswick / Nova Scotia / PEI / Newfoundland – AHWP

Taxes

There are a pair of main taxes on pre-construction homes; the first is the provincial land transfer tax, and the next is provincial sales taxes. If your clients are purchasing a new townhouse, condo or house, however, there may also be an additional municipal land transfer tax.

In Ontario, for example, rates vary with their land transfer tax, depending on the purchase price of the home. Using the same example as above, a $532,000 home would correlate to a land transfer tax bill of approximately $7,100. Keep in mind that first-time homebuyers will likely be eligible for a $4,000 rebate.

To make it simpler, I recommend using RateHub’s land transfer tax calculator to determine the approximate amount your clients will come out at. (Can be used for any Province)

Pre-construction project pricing usually include the GST, or HST depending on your Province. In fact, the builders get a tax rebate on your behalf. Keep this in mind though – if the property is not going to be their principal residence and instead is going to be an investment property, in some (not all) Provinces you will face a tax bill that’s a percentage of your home’s purchase price. If you’re planning on using the home as an investment, be sure to budget for this additional tax.

Foreign buyers should also keep in mind that there’s also an additional 15-per-cent Non Resident Speculative Tax (NRST) for buyers in Metro Vancouver and Metro Toronto, which of course has been smartly implemented to protect housing for Canadians living in those metro areas.

Lawyer Fees

Last but not least, there will also be lawyer fees that need to be accounted for. Real estate lawyers have a pair of main responsibilities; the first is conducting a title search, and the second is preparing an adjustment statement. This includes closing costs plus any additional applicable fees. It’s typical to expect to pay somewhere between $1200 – $1700 in legal fees, depending on the purchasing specifics. It’s always best to shop around for competitive rates, and going with experienced real estate lawyers is best.

It’s definitely stressful, but buying a new home is overall an enjoyable experience for most people. As a realtor you have the most power to make it so your clients’ experience, and by signing up with Real Estate Leads here you’ll have all the more opportunities to do what you do best and ensure your clients are 100% happy with every step of the process AND without too many unexpected surprising costs.

Canadian Home Sales Likely to Drop to Lowest Level in 3 Years

Published September 19, 2017 by Real Estate Leads

Despite certain suggestions to the contrary and the assurances of others, it appears that 2018 will see Canadian home sales dropping to their lowest level in three years, driven in large part by a measurable decline in Ontario. All of this according to the Canadian Real Estate Association, and a forecast that comes with both troubling and promising aspects depending on which side of the owner / buyer fence you’re on.

Here at Real Estate Leads, we understand that predictions of this variety will weigh heavily with those of you who make up the bulk of our audience and registrants – realtors. Our online lead generation system for realtors has been a big success, and we feel that sharing relevant information regarding the national market and facilitating discussion around it benefits everyone.

So let’s look at this forecast in greater detail.

A Noticeable Dip

The association’s expectation is that a number slightly in excess of 495,100 will indicate the number of homes to be sold next year, downgrading its sales forecast for 2017 with a 9.9% drop in August as compared to a year ago.

Come January and the beginning of 2018, the prediction is that sales will fall 2.3% through 2018, and further that the remainder of 2017 will see a 5.3% decline on the original forecast of roughly 506,000 homes to be sold between June 1 and Dec.31 of this year, a number that’s approximately 20K less than what was first forecast in June of this year.

Looking at in greater depth, it’s interesting to note that seasonally adjusted sales in August rose 1.3% from the prior month, in large part due to a 14.3% boost coming from the GTA area. While that in itself will sound promising, the fact that sales in this area are down 35% from a year ago tempers the positivity considerably.

More than a few industry experts believe that the worst may have passed for the GTA, especially following provincially-implemented policy changes restricting foreign buyers, but there’s a lack of anything tangible to bear out that optimism.

Similar Outcomes Elsewhere

The CREA expects sales in British Columbia and Ontario will show themselves to have fallen by 10% or so by the end of 2017, and of course that’s in comparison to record highs set in 2016.

Sales last month were down in nearly 2/3 of all local markets, led by the country’s most populated greater metro area – Greater Toronto and its nearby housing markets.

Meanwhile, out west in Vancouver, August sales were up 7.3% from July and 21.3% higher than where they came in a year ago. Given the ever-hot and fast moving nature of the market in the Lower Mainland, homebuyers are of course watching mortgage rates carefully. Recent interest rate increases are prompting some to make offers before the rates make the scheduled climb, but at the same time others are pulling back.

Housing prices, however, continue to climb and seem unaffected by the dip-in-sales trend, at least for now. The average price for a home sold last month was $472,247, which is up 3.6% compared to a year ago. Greater Toronto was up 3.1%, and Greater Vancouver came in at 17.9%.

The national average price excluding these 2 regions? $373,859.

That number is expected to be up 3.4% to $507,700 come the end of December, which is lower than the prior forecast and that’s in large part because of fewer luxury home sales in Ontario’s Greater Golden Horseshoe region.

The projected 0.6% drop to $503,500 next year is expected to be a reflection of a record number of high-end home sales around Toronto earlier this year, but the fact that that likely won’t be repeated in 2018 is behind the drop.

Other Projections by Area

Newfoundland and Labrador sales this year are forecast to dip by 8.1%.

Saskatchewan should decline by about 4%.

Alberta is predicted to buck the trend, and projected to have Canada’s largest increase here at 7.4%. While that’s a plus for sure, it’s still below the provincial 10-year average.

Last but not least, sales are forecast to expand 5.4 % in Quebec and 5.7% in New Brunswick.

With all of this understood, we’ll of course have to wait and see if these predictions materialize. Should they do so, it will of course mean a bit of a downswing in the industry but as the old saying goes ‘when the going gets tough, the tough get going.’ Put more into your prospecting efforts and apply yourself more stringently and you’ll be able to keep your earnings where they need to be.

Of course, signing up with Real Estate Leads here is a great idea to supercharge those efforts. You’ll receive qualified online-generated buyer and seller leads delivered to you exclusively for your exclusively-retained area / neighbourhood of your home province. From there, what you turn this opportunities into is up to you!

4 Innovative Approaches to Marketing Real Estate

Published September 7, 2017 by Real Estate Leads

Ask any realtor what’s the number one engine driving change in the way properties are marketed and he or she will almost certainly reply that it’s technology, and web-based ones in particular. As is always the case, it’s those who adapt to and embrace these new technologies who gain the greatest amount of benefit from them before their use and application becomes commonplace. Here at Real Estate Leads, we’re obviously keen on new technologies too, having brought our own offering to the table with our online lead generation system for realtors in Canada that’s been especially well received.

Technology comes from innovation, and in turn technology is implemented with innovative approaches to using it. These new approaches can give real estate agents and brokers and edge in an increasingly crowded place. Embracing changing technology, generating unique content, and carving out a specialty niche to stand out from the competition is highly recommended.

Here are 4 innovative marketing trends for real estate agents or brokers.

Video or Live Streaming of Property or Neighbourhood Walk-Throughs

Most of us can take quality 1080p HD video with our smartphones, and video has the potential to be an enormous marketing asset. People by and large pay more attention to videos than text communications and, as of this year, video constitutes 74% of all web traffic.

Short, bite sized videos let real estate agents quickly and easily share the appeal of a specific property. Many brokerages or individual real estate agents will have a prominent section of their website dedicated to video real estate listings.

What’s exploded in popularity these days among realtors, however, is live streaming. It’s a fact that people spend 3x longer watching live streaming video than they are willing to give to other forms of video.

That should sound plenty good to real estate agents: they can live stream videos to Facebook, Instagram, YouTube or other social media platforms to allow potential clients an in-person look at available properties or neighbourhood hot spots.

Here’s a quick tutorial on how to ‘go live’ on YouTube –

Target Specific SEO Keywords Highlighting Your Real Estate Niche

In real estate, 9 times out of 10 your buyer or seller will come from a targeted audience. Keep in mind though that the website of an individual real estate agent won’t able to compete with the well-paid SEO efforts of MLS giants like Zillow.com or Realtor.com. That’s not to say you can’t increase the visibility of your site for search engine like Google and the like, and the key to doing so is by identifying related keywords that are specific to your niche or location – whatever or wherever that may be.

The key here is to NOT attempt these revisions to the text on your website – unless you’re an SEO professional or experienced web copywriter. If you’re not familiar with SEO optimization, meet with one of these experts and share what it is that makes YOU unique in your capacity to serve SPECIFIC customers in YOUR area. He or she will then incorporate these changes to your web copy, without ‘stuffing’ the content – which is the common mistake made by anyone who attempts to DIY upgrade their search engine optimization. It needs to read naturally for 2 reasons; first, keyword stuffing really reads awfully, and second, Google and other major search engines will actually penalize you for it – meaning it will actually harm your website’s SEO!

Zoom in on hyper-local keywords such as neighbourhoods or even postal codes. Are you an expert in neighborhoods like Kingsway or Spruce Grove, for example? Content marketing that’s developed according to specific neighborhoods is getting big. Smart real estate agents or brokers make their targeted locations clear, so as suggested above go ahead and ask around and be open to paying for the services of a professional.

Use a Real Estate Website Building Service

The majority of you won’t have hours or thousands of dollars to spend constructing and maintaining a real estate website. Most realtors will have a website, but the technology associated with web development has grown in leaps and bounds and you stand to benefit immensely if you upgrade to one of the much more dynamic websites that are available these days.

Much the same as above, don’t hesitate to pay a web developer to build you a website that’s both a reflection of the calibre of your business and one that’s particularly engaging for would-be clients that visit it.

Here is a list of the top web developers in Canada.

Many of these new super dynamic real estate sites are MLS integrated and easily customized to target a variety of audience types, generate leads, and more. Your developer may also be able to incorporate building pages, which show a specific development’s unique story. Speaking of stories…

Tell & Sell the Real Estate Story

As is the case in every industry now, content marketing in real estate is more powerful by the day. Realtors can and should be able to sell the experience and tell a great story, whether on their own (you’re likely a much better writer than you’re aware) or with the help of a content marketing specialist. Create content that focuses on the neighborhoods you cover; for example, what are the 3 best schools in that area? What sports or recreational pursuits are available in the nearby vicinity? You get the idea.

Also, when you’re putting together your content make sure you’re not simply rolling out one ‘fact’ after another. The best stories create a bond between you and your prospective clients. Research has shown that 92% of consumers want marketing materials that share some type of story where they can imagine themselves in the experience, rather than being told ‘it’s like this, it’s like that’ . Be creative, especially with your real estate blog posts. Share an engaging bit with them about what their experience could well be in their new home.

These are but 4 examples of ways you can harness the power of new digital media for your benefit with your real estate business. Of course, signing up with Real Estate Leads here and enjoying online-generated qualified buyer and seller leads delivered to you exclusively each month will be similarly beneficial, and we bet you’ll be plenty intrigued with our service once you dig into the details of it a bit.

Appraising Clients on The Best Ways to Approach Bidding Wars

Published August 10, 2017 by Real Estate Leads

Real Estate markets in certain locales across Canada are as hot as they’ve ever been, and there’s no getting around the fact that it means that bidding wars are often the norm for attractive properties. Here at Real Estate Leads we’ve put a lot of effort into providing our online lead generation system for realtors together, but another part of what we do is share industry insight that realtors can share with their clients OR those clients can benefit it from it themselves directly.

As stated, these bidding wars are standard procedure in many parts of Canada. More and more prospective buyers are facing off against another buyer for their dream property, and no doubt it can be stressful. Far too many people go above and beyond their REAL purchasing means, but there’s no reason you have to drain your bank account in order to purchase a home you love. Realtors who have been involved in many multiple-offer situations during their careers have loads of advice on how you can best approach a bidding war and act prudently within it.

Every bit of their advice circles around one particular maxim; make homeownership decisions with your head, not your emotions. We’ll add to that it’s often far too easy for prospective buyers to falsely insulate their perception of what makes the home a ‘must-have’ when the prospect of a bidding war is looming. The token first consideration is to be 100% honest with yourself and always be reevaluating your position with an especially critical and objective view. After all, the purchase of a home is very much not one to be taken lightly!

Anyways, here we go with our 6 tips for being in a bidding war for a home.

Understand Market Value

Regardless of what a house may be listed for, it will typically end up selling for what it’s truly worth. It’s recommended to determine the home’s market value by consulting with a real estate agent or looking up comparable properties via the local MLS before bidding accordingly. For example, if the house is listed for $100,000 less than it should be then most of the offers won’t extend past the initial round of bids. In these instances, prospective buyers who bid low likely shouldn’t have been there in the ﬁrst place.

Don’t Hold Back on Putting in Your Best Offer

Should you be up against 2 or 3 other bids, it may surprise people to learn that it’s best to give their best offer right away. You can then be of the perspective that if you don’t get the house, you can have some assurance in knowing that you gave it your best bid. Keep in mind that putting in your best offer doesn’t always mean going beyond your budget – determine a limit and stick to it. This is about getting the most ideal home for you, and not about ‘coming out on top.’

Nix Your Conditions

It will also be beneficial to have any and all prospective homebuyers understand that removing conditions from your offer may make your bid more appealing to the seller, and particularly so if your bid is similar to that of another buyer who’s less flexible in this regard. The ﬁnancing condition is fairly easy to remove, as long as you have completed the mortgage approval process in advance of your bidding. Another recommended consideration is to think about eliminating the home inspection condition. That doesn’t mean you forego the actual inspection, however, as if you’re really interested in a home you can then pay on your own for an inspection before you state your offer as compared to doing so after you bid.

Bring a Certified Cheque

This one is big; If you’re serious about purchasing a home then bring a bank-certified cheque in the amount of the offering you’re prepared to make so that – should it be accepted – the sellers can deposit the money into their account right away. This has twofold benefits; one, it shows them you’re 100% committed to going through with the purchase, and two – it really gives them explicit incentive to move forward with your offer on the home.

Leave Ego Out of It

As suggested above, it’s unfortunately all too common to have problems arise when buyers get carried away with the competition and become compelled and singularly focused on winning the bidding war. Nothing is worth stretching yourself beyond your means ﬁnancially. Being house poor is a real condition and increasingly legitimate problem for every greater numbers of people these days.

There’s no debating that having the wherewithal and good judgment to be able to accept that you’ve been eliminated from the bidding war is SO important if you want to eventually be in an ideal home AND one you’ll be able to afford. This cannot be shared with your clients earnestly enough!

Which leads to the final tip,

Be Prepared to Walk Away

Go ahead and be optimistic about your max bid but also be ready to move on. As is the common belief in the industry amongst realtors, there is a 90+% chance that any home that you see as being ‘perfect’ and ‘can’t miss’ will be outdone by one that’s either already on the market, or will be on it before long. This advice is even more practical for buyers who are already living in a home that they either own outright, or the majority of it. They absolutely do NOT want to be making ill-formed decisions with the equity they’ve worked so hard to build.

Being informative and helpful for your clients begins with establishing prospective buyers and sellers AS clients in the first place. To that end, our system is a great choice for profit and business growth-minded realtors across Canada. Sign up for Real Estate Leads here and receive qualified online-generated leads delivered to you exclusively for your protected region of the country.

From there, take those opportunities and work your magic putting people in homes they love on the way to making a strong name for yourself as a realtor in your community!

Growing Numbers of Canadian $ Spent on U.S. Real Estate

Published July 31, 2017 by Real Estate Leads

Canadians buying property in the States has been going on for decades, and vice versa with Americans buying property in Canada. While the volume of homes and vacation properties in Canada being sold to American buyers has remained fairly consistent, the number of U.S. properties going to Canadian buyers has surged upwards in recent years. There are a number of factors playing into that trend, and the first and most obvious of them being the prohibitively high price of real estate in major metropolitan areas in Canada.

Here at Real Estate Leads, we’re thrilled with how our online lead generation system for realtors has been so well received by the real estate agent community in Canada, and we’ll continue to make adjustments to it to ensure it’s serving its purpose with maximum efficiency. We also enjoy keeping our thumb on the pulse of trends that are emerging in real estate.

The increasing number of U.S. properties being sold to Canadian buyers is one that’s particularly interesting to note. With accelerated house price growth in Canada’s hottest markets – Toronto and Vancouver – more Canadians are opting to buy affordable properties across the border. Given that we can assume the majority of those buyers do not have dual citizenship or a work visa, there can be some guessing as to what would spur the purchase of a home in a country that – despite being your next door neighbour – is just that, a foreign country.

That can and will be a discussion for a different day, however.

Residential All the Rave

From April 2016 to March 2017, the $19 billion that Canadians spent on residential properties in the United States was a record — in fact, it’s more than double the total of $8.9 billion recorded in last year’s report. All this from the National Association of Realtors’ (NAR) latest report from earlier this month. During this same period, a total of 284,455 properties were sold to foreign investors, a number that was up 32% from 2016.

Canadian buyers made up for 33,819 of those properties, a jump of nearly 7,000 from 2016. China led the way with the most foreign purchases for a third consecutive year, making 40,572 purchases in the US worth an astounding $31.7 million.

This is further despite the fact that inventory shortages continue to drive up US home prices, and it would seem that many of these Canadian buyers are looking south of the 40^th in search of affordable vacation homes.

The common consensus seems to be that a measure of the acceleration in foreign purchases over the past year is coming from the combination of more affordable property choices in the U.S. with foreigners assured in their decision to buy now by understanding that any further weakening of their local currency against the dollar will make buying in the future considerably more expensive.

Exchange Rate Factors

Foreign investment from Canadians dropped from 2015 to 2016 in the US as a result of the weakening Loonie, but this year’s heightened activity is believed to be a temporary phenomenon when we consider the red-hot market activity seen in Vancouver and Toronto. Industry experts expect to see continued strong demand from Canadian buyers, but they also believer there is very like going to be a pullback too.

The median price tag for US homes purchased by Canadians was $288, 615 – which was up from just over $222k in 2016. An interesting trend to note is that from April 2016 to March 2017, the majority of Canadian buyers were choosing the southeast and southwest areas of the US as their preferable investment areas, and most particularly in Florida.

Affordable options and a warmer climate pair to make up the top reasons why Canadians consistently are in the top 3 nationalities of foreign buyers purchasing homes in the U.S. That’s in large part because home price appreciation is quite strong in Canada relative to the United States, and you then factor in warm weather is a driver all on its own. Further, you also tend to get a lot more for your money in terms of square footage and kind of proximity to amenities in U.S. locations

Overall, foreign buyers and immigrants spent $153 billion on homes, and not only is this number a notable 49% increase from $102.6 billion in 2016, it’s a new record high that suggests the purchasing prerogatives for buyers here in Canada and elsewhere are changing to be less focused on the domestic market and buying homes for housing to more focused on investment and acquisition of assets.

Working with buyers is an equal 50% of what most realty professionals do here in Canada, and working in conjunction with similar professionals working in the U.S. to accommodate the purchasing wishes of clients looking for an investment home in U.S.A can be very much a mutually beneficial arrangement.

Sign up with Real Estate Leads here and receive qualified online-generated real estate buyer and seller leads delivered to you exclusively for your exclusive region of the country. You’ll have that region protected, and the leads will be provided only for you. It’s a great business booster that you really ought to take advantage of without delay.

Getting a Getaway: Recreational Properties Set to Become Increasingly Popular Purchases

Published July 17, 2017 by Real Estate Leads

It could be a cottage on the lake, a chalet at the foot of a favourite ski hill, or even a cabin in the remote northernmost part of your province. Interest in buying a recreational property or vacation home is increasing amongst different buyer groups in Canada, and that trend is one that real estate industry professionals would be wise to take note of.

Here at Real Estate Leads, our online real estate lead generation system is a proven effective way for realtors to get more seller leads, and buyer leads too. In particular as it relates to buyer leads, realtors in less-urban areas of the country will want to take particular note of this trend as it may be that greater numbers of prospective buyers will be looking for a real estate professional to assist them with buying a recreational property in rural Canada.

RE/MAX is one of Canada’s leading real estate agencies, and according to their latest recreational property report for 2017, 43% of Canadians would consider buying a recreational property in the next decade. Interestingly, 28% of them with children under the age of 18 would consider selling their primary residence to help finance that purchase, suggesting that it’s not just financially sound soon-to-be retirees or investors that are weighing the market for these types of properties – even young families are increasingly determined to own a cottage or cabin and are willing to explore options to turn that dream into a reality.

This is primarily a reflection of real estate prices in areas of Canada remaining high, and as a result more of these prospective buyers are looking into unique financing options like fractional ownership in a shared property, purchasing a recreational property with a friend, or even selling their primary residence, downsizing, and putting the differential equity into a cottage or cabin.

Resourceful Millennials

Equally interesting to note is that recreational properties are goal for Millennials too. Yes, the thought of having a getaway isn’t exclusively appealing to the more secure generations, and while these young people may be facing much more in the way of career insecurities and the like they are still being smart and creative about how they can afford a recreational property.

The same Re/Max report pointed out above found 65% of Millennials are interested in purchasing a cottage, cabin, or chalet in the next decade, and 39% would use the property as an investment and list it on rental sites to help pay down the financing. Naturally, their interests are tied to locations that facilitate lifestyle more so than older buyers who are looking more for spots that are scenic and less busy.

For example, young Vancouverites who accept there’s no way they could get themselves a chalet in Whistler may be taking especial note of the upcoming redevelopment of Hemlock Mountain Resort just past Mission, about a 2 hour drive from Vancouver.

Boomers Want to Get Away Too

Not surprisingly, the baby boomer generation is tapping into equity to fund their own recreational property purchases. Large numbers of near-retirees and baby boomers nearing retirement are putting the equity they received from sold homes in cities like Toronto and Vancouver into the purchase of a recreational property. Significant price appreciation (and that may well be putting it mildly) in those regions has made recreational property ownership a relatively affordable option for many retirees. Accordingly, we’re seeing price appreciation in popular recreational property markets such as Whistler in B.C. and Haliburton in Ontario.

The Places to Be

Other hotspots for recreational property purchase in Canada from Coast to Coast include:

Tofino and Ucluelet, BC ‘Long Beach’
Squamish, BC
Whistler, BC
Kelowna, BC
Shuswap and North Okanagan, BC
South Okanagan, BC
Canmore, AB
West Lakes of Edmonton, AB
Sylvan Lake, AB
Turtle Lake, SK
Qu’Appelle Valley, SK
Lake Winnipeg, MB
Thunder Bay, ON
Manitoulin Island & French River, ON
Lake Huron, ON
Muskoka & Haliburton, ON
Laurentians, QC
Charlevoix, QC
Shediac, NB
North & South Shores, PEI
East Coast, NFLD

The priciest of those popular recreational property locations in Canada? Right there at the top of the list, with the median price for a waterfront home in Ucluelet or Tofino being between 580 and 660k. The most inexpensive vacation property in Canada? You’ll find that in Newfoundland’s East Coast, at an average of 175k for a waterfront property that – while much less expensive – is every bit as pleasant and scenic at the much more expensive view of the Pacific Ocean on the other side of the country.

All interesting to note, and particularly so for realtors who want to have their thumb on the pulse of significant changes to the buyer / seller cross-sections of the public. As always, being put in touch with these recreational property buyers and sellers is just an opportunity, and what you do with it is up to you. Signing up with Real Estate Leads here is a solid choice, as you’ll receive qualified online-generated leads delivered exclusively to you and for your specific protected region of the country.

Who knows, from there you might find yourself being the perfect matchmaker between homeowners and their new ‘fun time’ home away from the city. Summertime’s here, and we imagine you know what it’s like to be itching to get out of town. Make it happen!

Risky Reprieves: The Inadvisability of 2nd Mortgages to Avoid Bankruptcy

Published July 5, 2017 by Real Estate Leads

It’s well understood that one of the inevitable developments that come along with an extensively inflated housing marketing is having homeowners who are in over their head and very precariously perched when it comes to the mortgage they have on their home and the debt that’s assumed as part of it.

Those kinds of market conditions definitely exist in certain metro regions in Canada, and being ‘house poor’ puts you at risk of defaulting on your mortgage. That’s obviously going to be concern number one for homeowners who have gone in a little more head long than they thought, but it’s not the only decidedly unpleasant potential reality. It can also lead to bankruptcy, and certain people in certain areas and certain lines of work are more susceptible to it than others.

Here at Real Estate Leads, our online real estate lead generation system is proven valuable as a way for realtors to get more property listings, but we’ve also got our thumb somewhat on the pulse of trends and hot topics in the world of real estate and home ownership in Canada. So many of them are related to financing, and this one is really worth a long look.

First off, we’ll share what many of you may already know – there are not nearly as many bankruptcies declared in Canada as there are in nearly every other country in the world. However, does a lack of here mean the average Canadian consumer is doing better than their international counterparts? Much like the lack of mortgage defaults, there’s some foreboding facts to be unearthed if you’re willing to dig.

All it takes is a look at the Homeowners Bankruptcy Index, which is currently at an all-time low. That should be interpreted to be a positive, but it would seem there are fewer bankruptcies due to homeowners refinancing their debt by bundling it into 2nd (or even successive of that) mortgages.

Accordingly, that all-time low number is something of an artificial reality, and one that masks a very large potential problem for anyone who thinks a re-mortgaging of property is their way out of a financial failure.

More About The Index

Few if any of us are debt experts, so it’s entirely natural if you’ll need a little walkthrough of the explanation of the Homeowner Debt Bankruptcy Index. In their words, it measures the percentage of insolvent debtors who owned a home at the time they filed a bankruptcy or consumer proposal. Let’s now give you a quick walkthrough of the terms so that we’re on the same page.

To put it more simply, insolvent debtors are individuals that are unable to make scheduled payments to pay down their debt. When a consumer proposal is offered, it’s an attempt to negotiate them paying a percentage of their debt. Bankruptcy is when you state officially that you’re entirely out of means of paying that debt, and you – for all intents and purposes – ‘surrender’ to your debtors and seek an asylum from the bank if you will.

From there, a licensed insolvency trustee (LIT) liquidates your assets and distributes them to your creditors. Of course, that very rarely clears the entirety of the debt, but that’s where they start.

All-Time Lows

Interestingly, the Homeowner Bankruptcy Index is currently at an all-time low despite the very precarious situations so many homeowners are reported to be in. The number of people filing for a consumer proposal or bankruptcy that owned a home fell to just 7% at the end of May 2017. That’s a fairly significant drop from the 35% it was at in February 2011. If you look at the chart, you’ll notice that it’s dropped almost precipitously in 2016 and 2017. Further interesting is the fact that this was right when home prices across Canada began increasing exponentially.

Decline Is Due To Rise In Home Prices

The answer to why those two specifics add up when they really shouldn’t? It is because Canadians are using their homes much like a bank machine, withdrawing from the solidity of their equity. Homeowners with significant unsecured debt are now seeing being able to refinance this debt through a second mortgage or home equity line of credit as a viable option, albeit a risky one.

There’s 1.91 million Canadians with HELOCs (home equity lines of credit), and even more individuals and couples with a second mortgage. That’s not what you’d consider to be traditionally representative of booming incomes that would be the ideal reason to see delinquencies decline.

Monitoring agencies are warning that any softening of the market that results in a correction (see ‘bubble bursting’) of home values will almost certainly come with a sudden spike in homeowners who have no choice but to file for insolvency. The warning goes further to say that if this combines with a bumping up of interest rates, then the result could be the Homeowner Bankruptcy Index rising above levels that were experienced after the 2008 / 2009 recession.

Canadians have had no qualms about piling on record amounts of debt over the last 2 decades, and it would seem they’re now looking for every possible way to delay paying it back. Refinancing your mortgage to accommodate debt might work for now, but there’s no debating it leaves homeowners that take this option in a more vulnerable spot. A MUCH more vulnerable and risky spot. Bankruptcy or crushing debt aside, keep in mind as well that the less equity in your home, the less likely you are to secure good mortgage rate renewal terms. Worse terms mean higher rates, and you can be certain that it will definitely complicate your ability to pay your bills on time.

Part of being a reputable realtor is being frank with your customers about their purchasing power. You want to attract and retain clients, and in the interest of the first part of that we suggest you sign up for Real Estate Leads and begin receiving online-generated qualified buyer and seller leads delivered to you exclusively for your own area of the country.

Traditional Mortgages Riskier Than Ever According to BoC

Published June 19, 2017 by Real Estate Leads

Home buying has never been a particularly inviting and reassuring process for most, but recently there’s been plenty of discussion in the media about the role high-risk borrowers play in making the financial lending pillars a little too shaky for the big banks’ (and the economy in the bigger picture considering the role housing plays in it) liking.

The question here is how are traditional borrowers doing across Canada? Not so long ago, the Bank of Canada updated Canadians on how low-ratio mortgage originations did in the previous year, 2016. In their quarterly report on vulnerabilities and risks, the growth of low-ratio mortgages was called out. It would seem that well-leveraged home buyers represent a significant portion of the purchasing whole, and that mitigates much of the risk for banks. However, these buyers are – not surprisingly – taking out significantly larger loans much more often, and the way that increases amortization terms is posing risks for real estate markets.

Here at RealEstateLeads, we offer a valuable tool that provides a way for realtors to get more listings, but we understand that sharing knowledge with those agents in order for them to make buyers ever more qualified for the life-altering purchase they’re about to make is definitely beneficial as well. So let’s discuss this recent concern regarding traditional mortgages.

Low-Ratio Mortgage Borrowers

A low-ratio mortgage borrower is a buyer who has a significant down payment when buying a home. Sometimes called a “traditional” mortgage, it will typically stipulate that a 20% down payment is required. According to the BoC, a low-ratio mortgage borrowers averages a 30% down payment at this time. These are the least risky types of mortgage holders. Or in theory at least.

These types of borrowers continue to be the client of choice, but the BoC has been taking notice of the risks associated with their borrowing preferences. First off, after a 35% down payment, income documentation rules become “less stringent”, as the bank puts it. Part of that means income verification is not undertaken. That’s not a particularly pressing issue since the likelihood of a home’s value dropping by 35% is fairly unlikely, but it’s a possibility nonetheless and some would say it’s more possible than ever before and particularly in specific locales.

The average loan-to-income rate across Canada for low-ratio mortgages saw minimal growth throughout 2016. A loan-to-income rate is exactly what it sounds like – the ratio of the amount borrowed on a mortgage in comparison to the amount of income generated by the household. 3 years ago this number was 271%. One year later, it had jumped to 292%, a 7.74% change. 2016 saw it increase to 296%, a 1.36% change. This should be regarded as a positive, but it should be noted this is across Canada. In-demand markets like Toronto and Vancouver are burdened by markets that many people would figure have no correlation.

Low-Ratio Average Loan-To-Income Above 450% Is Growing

One specific risk highlighted by the BoC is the number of low-ratio mortgages with a loan-to-income ratio that stands above 450% is growing. In 2014, the number of low-ratio mortgages had a loan-to-income above 450% was only 12%. By 2015, that number leapt to 15% of all mortgages. In 2016, the total of low-ratio mortgages above that 450% loan-to-income mark was sitting at 17%. It continues to grow, fuelled in large part no doubt that Canadians have shown themselves to have little to no fear of extreme housing debt, or being ‘house poor’ as the term goes.

The BoC is quite justified in their concern about this segment, and for a pair of reasons. The first is the sheer size of loan, while the second is the documentation of income. When your loan-to-ration tops 450%, there are inevitably going to be doubts about your ability to keep up with the payments. Further, when they’re low-ratio mortgages, it’s not unlikely that income wasn’t verified as stringently as perhaps it should have been. Should the borrower haves a significant change to their income or a change in ability to withdraw income from another country, there’s a real potential for big-time problems.
The risk to the lender isn’t all that prominent in such an instance, but the issue is that it threatens the equity of neighbouring homes when it happens repeatedly. Unfortunately, the nature of the market means the stage is very much set for that to happen in specific regions.

Low-Ratio Mortgages Are Taking Longer Terms

Another growing trend is low-ratio borrowers choosing longer amortization periods. In 2014, 42% of low-ratio mortgages had terms that stretched longer than 25 years. In 2015, that number jumped to 46%. Now, the number for low-ratio mortgages with amortizations longer than 25 years is 51%. It’s a growing trend, and one that obviously would be troubling to lenders.

It has the potential to be particularly problematic because of low interest rates. Mortgage rates are already at historic lows, but any type of significant uptick could be very tough for the borrower to absorb. One could increase the length of their mortgage, but that length of amortization may not be available in the future. Should that be the case, you would have to take a shorter amortization and increase your payments dramatically. Not difficult to see where this is going, and why it could be potentially devastating for borrowers.

Yes, the risk associated with these types of loans are likely exclusive to overheated markets like Toronto and Vancouver. They don’t present much of a concern to banks, on account of the cushion applied to down payments.

The concern should rest exclusively with the homeowners, and those prospective homeowners may be your clients. Be sure to have a reputable mortgage broker / advisor on tap to recommend to your clients, and do consider signing up for RealEstateLeads here to get qualified online-generated buyer and seller leads delivered to you exclusively for your specific region of the country.

Best Promotional ‘Swag’ Choices for Real Estate Professionals

Published June 13, 2017 by Real Estate Leads

In today’s super competitive market for real estate agents, you need to make every effort and really strive to get your name and brand front and center for prospective clients. Here at Real Estate Leads, we are enthusiastic about providing realtors to have success with our online real estate lead generating system, but we’re also keen to help you make smarter choices on your own.

Today, we’re going to discuss which promotional items are best for getting increased exposure and how you can allocate your marketing and promotion budget more judiciously as a result of having the understanding. No matter how you tend to disperse this ‘swag’ as these types of promotional items have come to be referred to, there is plenty of it out there to choose from.

The key is to find products that will generate buzz and leave a lasting impression.

Pens, keychains, notepads, business-card holders, USB sticks and more. But does distributing your promotional materials really pay off, and if so – how much, and which items are your best choice?

Well, for starters, research has indicated quite clearly that they absolutely do pay off. Now how much and which are best will vary, but let’s move now to discussing the types and then we’ll discuss some of the variances in how swag can contribute to you generating greater numbers of new clients.

Putting Your Name & Agency In Front of Buyers & Sellers

Swag used for marketing purposes falls into one of two categories. Promotional products include useful or decorative items imprinted with the real estate agent’s name, logo or message and then distributed free to would-be clients. Imprinted items that are offered as an incentive for a specific action are known as premiums.

Manufactures of promotional products like those listed above report a consistently strong demand for these types of products from real estate agents, and that’s true of every region in the country.

Here are some interesting findings regarding how effective it is for realtors to distribute promotional materials to prospective clients:

84% of people remember the advertiser shown on a product they’ve received
42% develop a more favourable impression of an advertiser after they’ve received a specialty advertising product
24 % report being more likely to do business with an advertiser they’ve been reminded of via items they’ve received
62% of respondents have done business with the advertiser listed on a product after they’ve received it and it’s been in their possession for more than 2 weeks

And this last one is HUGE. Take especial note:

The average cost-per-impression attached to an advertising specialty item is $0.004, making it less expensive per impression than nearly any other medium

Other research has indicated that 58% of those responding to a survey said they kept these types of promotional products from anywhere between one to four years. Consider that even if the recipient only uses the item once per week, that adds up to a minimum of 52 impressions over the course of a year plus the possibility of more than 208 over the next five years.

Further, promotional products foster positive regarding of a business by:

Increasing in positive overall image;
Increasing the positive perception of that business;
Creating a higher likelihood of recommending that business
Creating a higher likelihood of their patronizing that business

The Importance of Useful

Promotional products that actually add value to a customer’s life in some way are light years more effective than any type of impractical stuff they will likely end up throwing out before long.

Useful promotional swag items for realtors should improve the prospective clients’ life in some way, while still being relatively affordable for you to buy it in quantity. In addition, it should be personalized with your real estate info so you will be the first tome come to mind when they think of acquiring the aid of a qualified real estate professional.

Best Ideas for Promotional Items

Two particularly smart choices for real estate agent swag are a branded tissue box sleeve and a branded pocket hand sanitizer sprayer. The tissue box sleeve will slide over a store-bought square issue box, and for most people that box will sit somewhere in regular view for months upon months. The cost per sleeve shouldn’t be much more than $3, if that.

Those branded hand sanitizers typically go for about $2.00 each and also will last for a good long while. Further, they show you care about the recipient and by that they are intended to create a more personal, authentic connection

Other good ideas for realtor swag are:

Credit card RFID protectors
Jar openers
Fridge magnets
Calendars
Keychains
Fly swatters
Tape measures
Smartphone desk stands

While all of these above are good choices, we’ll conclude today by saying that when you are considering any of them you should go through a series of questions regarding the specifics of your relationship with the prospective client. You should ask yourself

What is the potential return on investment?
What season of the year is it?
Is it more likely to be left at the office, or taken home?
Is it a novelty item, or useful item with some practical value?
What are your competitors doing similarly?
What have you yourself received that made an impact on you?
What will the cost of distribution be?
How long is this particular item likely to last / be retained?
Is it too overtly ‘saying’ that you are trying to buy their business?

And the most important question for any marketing strategy – can you measure its effectiveness?

We hope this communication is helpful for any of you who’ve been wondering where to best spend your marketing budget funds when it comes to promotional swag items. Whatever you can do to make you visible as a realtor is beneficial, in much the same way that signing up for Real Estate Leads here is a huge plus too, with qualified online-generated leads delivered to you exclusively each month and for your exclusive region of the country. Make sure you get your locale by signing up without delay!

Don’t Wait Until It’s Too Late: The Need For Proper Insurance Coverage

Published May 15, 2017 by Real Estate Leads

Recent events in the Eastern part of Canada are a reminder that shifting global weather patterns and trends – likely prompted by global warming – are seemingly making extreme weather events a much more common seasonal risk for certain communities.

Here at Real Estate Leads, we aim to provide ways for realtors to increase their home seller and home buyer leads, but we also realize the value in having realtors be able to appraise their clients of wise choices when it comes to home ownership. In light of the aforementioned events, and others like the increase in wildfires in the west every summer, it’s important to remind clients of the need for home insurance that matches the specific risks they face based on the regional location of their home.

With regards to these floods, it appears that the majority of Canadian homeowners aren’t insured for flooding and could be left on the hook for at least part of the bill after heavy rains in several areas across the country, experts say.

A representative for the Insurance Bureau of Canada estimates that only 10 to 15 per cent of Canadians have overland flood insurance

. This type of add-on insurance policy is typically not included in the clauses of standard home insurance packages in Canada, and most notably it wasn’t offered prior to 2013, the last time severe flooding affected certain communities in Canada.

The reason for this was that it wasn’t until that time that flood risk maps were developed for the whole country. Keep in mind that the insurance industry needs to be able to quantify the risks so they can assess which premiums should be charged to which people. A risk-per-region determination was required before any type of coverage guidelines could be established, and that took time.

And so, many homeowners with policies negotiated years ago may be insufficiently covered after heavy rains left several communities in Quebec and Ontario struggling with rising floodwaters over the weekend and parts of New Brunswick and British Columbia also faced flooding.

Delayed Roll-Out Inevitable, But Unfortunate

Insurers began working on the overland flood insurance add-on as soon as they could following the establishment of those maps, but naturally it took time to roll the policies out. The add-on has been available for most policies since late 2015, but – as is so often the case – policy owners are often lax about revisiting their policies once they’ve obtained them.

It’s important to do this, and particularly so given the fact that climate change is making calamitous acts of nature much more common across North America. It’s highly advisable to appraise new homeowners you’ve worked with – and ones you’ve similarly worked with in the past and keep in touch with – that they should be having a look at the coverage provided in their policies at least once every year to make reassessments as necessary.

Then there is the fact that most Canadians only interact with their insurance broker when the time comes to renew their policy. Most people are not even aware that overland flood insurance is available, unless they have been directly in a conversation with their broker or agent when renewing over the past year.

Further, homeowners should be adamantly reminded to NOT be expecting to be able to rely on government assistance in the event of an emergency situation, for obvious reasons given the fact that the funds available to cover such incidences are at an all-time low. In addition, government assistance is often designed to compensate homeowners for core essentials only.

Out Of The Know

A study last year that surveyed 2,300 Canadians who live in high-risk flood areas found that the a 70% majority of those polled reported having not been contacted by an insurance company about newly available overland flood insurance. It also revealed confusion on the part of respondents about what is – and isn’t – covered by their insurance policies. The majority of those surveyed thought overland flooding was already covered under their insurance policies by default.

As a realtor, there is a real opportunity here to both further the connection and reputability you have with your clients, as well as ‘do the right thing’ in making them aware of the need to be especially critical when looking at their home insurance policies.

By being a real estate professional you have an inherent level of authority regarding subject matters related to home ownership, and as such your clients are more likely to heed to your advice and or urgings regarding home insurance coverage than if they were to hear it from someone else. Take advantage of this to further your professional capacities, and enjoy being regarded so highly!

Operating your real estate business ethically and responsibly is indeed rewarding, and of course having greater numbers of listings for both buyers and sellers is fortuitous for giving you these opportunities. Sign up for Real Estate Leads here and receive qualified online-generated leads delivered to you exclusively for your protected region of Canada each month. From there, you’ll have a foot in the door and chances to do what you do best!

Analyzing The New Nationwide Mortgage Regulations

Published April 19, 2017 by Real Estate Leads

One of the best pieces of advice you can give to help a realtor get more listings is to put in the time and network, network, network. For a prospective homebuyer who needs a mortgage to purchase their first home, one of the best things they can do is familiarize themselves with Canada’s new mortgage regulations and how they’ll affect their purchasing power. So feel free to pass this correspondence along if you know anyone it might benefit.

It was late last year that Canada introduced its new mortgage rules, and the term that was used for them was ‘promoting responsible homeownership’ – which in large part means more of buying a home to live in it rather than as as a speculative investment purchase. So while the changes were geared toward curbing foreign real estate speculation and, to a lesser extent, promoting low loan-to-value mortgages, for the majority of Canadians what matters first and foremost with the new regulations is how it will affect affordability for the average Joe or Jane.

More specifically here to put some parameters on our discussion, let’s say they’re a first-time homebuyer purchasing with less than 20% down. Or what’s called the interest rate stress test.

Let’s also preface somewhat by looking at how the affordability of Homeownership has been helped in recent years by low interest rates and the availability of high loan-to-value mortgages backed by mortgage insurance. What would be the result, however, if those rates jumped as they’ve been known to do? The government’s response to what could potentially be a bubble bursters was to introduce tougher interest rate stress-test criteria in the latter part of 2016, aiming to make perspective homebuyers aware of the potential for a future rise in interest rates.

So if you’re an average homebuyers with the on-paper means to afford a home – but not endlessly deep pockets – what does all this mean for you? The less-than-rosy answer is that you’ll likely have less money to work with. Here’s why.

Taking The Stress Test

Lenders and mortgage insurers will weigh two debt service ratios when qualifying you for a mortgage and mortgage insurance.

-Gross debt service (GDS)
These are the carrying costs of your home, such as mortgage payments, taxes, heating, etc., and how they stand in relation to your income.

-Total debt service (TDS)

The sum of your home carrying costs (mortgage payments, taxes, heating, etc.) plus your debt payments (credit cards, student loans, car loans, etc.), with all being measured in relation to your take-home income yearly.

To qualify for mortgage insurance, the highest allowable GDS ratio is 39%. The highest allowable TDS ratio is a little more accommodating, coming in at 44%.

Many prospective buyers will technically at least qualify for a fantastic five-year fixed mortgage rate from your bank (2.94%, for example), but it’s now important to keep in mind that the new rules use the Bank of Canada’s five-year fixed mortgage rate (4.64% at the close of 2016, for example) to make a determination on whether you can afford your mortgage payments.

The purpose of this stiffer affordability standard is to serve as a buffer to test whether you could still afford your regular mortgage payments if (and some economists state it’s quite likely) interest rates were to rise dramatically.

Bottom line is, the new rules mean you can afford less house for your income – approximately a 20% to 30% reduction in the mortgage amount most first-time buyers would qualify for.

Best Plan For Prospective Buyers

These new mortgage rules will likely not be reevaluated for many years now. However, many buyers will still be able to work within them. A revision of plans or timelines may be needed, but first-time homebuyers can still get into the real estate market.

Smart prep work in advance of buying your first home will be to lay the groundwork for this responsible homeownership they speak of: start by reducing your consumer debt, saving for a larger down payment (a big one!), and finding a way to boost your overall financial fitness.

Help your clients with their mortgage needs by recommending them to a mortgage broker you trust, and see to it you have more clients to refer in the first place by checking Real Estate Leads Availability here and having qualified online-generated leads in your area provided to you exclusively.

Hard to Argue Against Concerns Over Vancouver / Toronto Market Outlooks

Published April 14, 2017 by Real Estate Leads

There’s been a whole host of different opinions on the state of the markets in Canada’s 2 biggest cities, and ones where – not surprisingly – there’s the most demand for housing and the ever-increasing development of ‘bubbles’ of the same variety that proved to be the start of a major detrimental turn events in the USA nearly 10 years ago now. Here at Real Estate Leads, we have endless tips for realtors but we’re not exactly experts on the connection between the economy and housing investment in Canada

There was a recent interview with someone who most definitely has the credential to say he is an expert. Royal Bank of Canada CEO Dave McKay was one that didn’t see things as rosy (or perhaps ‘rosier’ would be more accurate) as others do, and considering he’s the head of a major financial lending institution you can imagine he’s got his thumb on the pulse of all this in a way most of us couldn’t even begin to.

An Unhealthy Combination

McKay attributed the rapid increase in housing prices in the two cities to an “unhealthy combination of factors” and went on further to cite an imbalance in supply and demand for residential properties, low interest rates, and speculative activity.

“All of these factors are mixing to push prices up to unsustainable levels, stressing household balance sheets and locking many people out of the housing market,” McKay remarked at the bank’s annual general meeting in Toronto on Thursday.

“More and more disposable income is going towards servicing those houses,” he said, adding further ” and more capital is getting invested in those homes. And the real risk for us as an economy is the long-term drag that has on the rest of the economy as so much of a person’s net worth and cash flow goes into servicing their home.”

As stated, this kind of precarious arrangement was a big part of what preceded and initiated the crash in the US in 2008, and the concern of course is that something similar could happen here.

More of the Up, Up, Up

McKay offered his observations a day after the latest data from the Toronto Real Estate Board showed the average price of a home in the Greater Toronto Area increased by 33% over the last 12 months concluding at the close of March 2017.

What’s come as a result is a whole array of responses about what can be done to rein in housing costs in the city, which are now spilling over to the rental market via exorbitant rent increases. After all, the operating principles of supply and demand never really change.

What’s Up Out West

While it is true that price increases in Vancouver have cooled off, Lotus Land has also seen runaway double-digit gains, month after month after month, until the implementation of a 15% tax on foreign buyers last year.

McKay believes one single solution being applied to the entirety of these problems is unlikely to be successful.

He said interventions from federal, provincial, and local governments to come up with a more nuanced solution to a very complex problem would have much more propriety.

“We would welcome any effort by the three levels of government to coordinate their interventions, and to do so reasonably quickly,” he said.

“But longer-term, I believe all parties need to come together — governments; developers; realtors; banks; community groups and others — to accelerate our progress in finding policies and solutions for this issue.”

2 Further Sobering Statistic Comparisons

In bearing out a good portion of what MacKay has alluded to, have a look at these 2 charts indicating average home prices in both these cities in comparison to others, along with what is required for a down payment on that home.

Purchase prices

Vancouver: $420,000
Calgary: $370,000
Toronto: $425,000
Montreal: $250,000
Atlantic: $185,000
*National median: $293,000

Down Payment

Vancouver: 20%
Calgary: 10%
Toronto: 21%
Montreal: 13%
Atlantic: 8%
*National median: 12%

Of course, that means business is good for realtors in Toronto and Vancouver, but the need for housing is a social issue and naturally we all take a vested interest in the well being of that.

Check Real Estate Leads Availability here and help yourself to a bonafide lead generation system for realtors that’s great for ANY region of the country, even the hotbeds of Vancouver and Toronto.

Quick Property Evaluation Reference Tips for Home Buyers

Published April 5, 2017 by Real Estate Leads

For most prospective home buyers, there will only be a few properties that match their most immediate buying prerogatives. For these folks and in this scenario, there’s going to be much more in the way of time and resources available for weighing each of the 1, 2, or maybe 3 homes that line up as a potentially good fit. They can go over each of them much more thoroughly than the buyer who has a good many home they need to make a decision on.

And quite often those decisions need to be made rather quickly, as quality real estate doesn’t last long on ANY market. We’re all well aware of that!

Here at Real Estate Leads, we’re all about providing ways realtors can get an advantage, but this week we’re going to spin it around somewhat and talk about advantages buyers can use as they work with the real estate agent towards purchasing the home that’s best for them.

So let’s get into our house hunting evaluation tips, with specific focus on the exterior, interior and basement for now:

Exterior Considerations

Make a note of your impressions of the exterior of the home, with a particular note of the lot size and shape, position of the house on the lot (facing north or south, east or west), and whether it has a private or shared driveway. In addition, does it have a large front yard, side, and backyard? How is the landscaping, how well has it been maintained, and – perhaps most importantly – how much maintenance do you foresee it requiring to continue looking like you’d expect it too after you potentially buy the home. Trees? Hedges? Your opinions of them?

What type of siding does the home have, and in what condition is it currently in? Does it have an attached or detached garage and whether it can accommodate one or two cars.

Also note whether there is a porch or veranda, storage shed and is the yard is fenced (or perhaps it should be?). How much privacy does the layout of the grounds afford the home?

Take a critical look at the roof, and make detailed notes on its general condition and age. Check to see if any roof repairs were made recently, and make a point to check the eavestroughs and down spouts for signs of deterioration. Now move on to the foundation of the home. This is a big one! Are there any visible cracks or holes or signs of seepage?

This applies to all the points we’ll cover here, but it’s the ideal time to relay a very important piece of advice. You might consider hiring a certified house inspector for a thorough, professional survey — outside and inside — of any home you’re thinking to possibly buy.

Interior Considerations

It’s hard to argue that’s there’s not 2 more important parts of a home than the kitchen and bedroom. We’ll start with the kitchen.

Take particular note of the general size and colour of the kitchen, as well as whether it has an eat-in area and what you’d consider to be sufficient cupboard space. Is there a pantry or food preparation island? Are the countertops and sink in good condition? Are the cupboards old or new? How is the floor holding up, and what is it made of? Is the existing lighting adequate and set up properly for carrying out kitchen tasks, as well as providing dining table light if the eating area is adjoining the kitchen.

Make a note of whether there are enough power outlets to run your appliances and have them spread out along the countertops and not bunched together out of necessity. Are the fridge, stove, and dishwasher included with the sale? Are they all operating, and more simply – do you like their looks? How many burners are on the stove top, and is the stove gas or electric. Is the oven self-cleaning?

Now were’ going to move to the dining room. Take first note of its size, whether it’s separate from the kitchen and the condition of the floors and walls. Is it big enough for the table you have, or will have in the near future based on your family size? Are there any built-in cupboards? Is there a chandelier, and is it being sold along with the house? Now have a look at the living room. Is there a fireplace? How many windows are there around the room, and what is your opinion on their layout and sizes? Are the window coverings staying, or leaving with the seller?

If the home has a family room, determine whether it’s closer or adjacent to the kitchen, does it feature outdoor access, and does it have a fireplace or wood stove. Is the stove CSA approved? Again, check the condition of the floor or carpet – and look for cracks and other potential problems.

Next up are the master and secondary bedrooms . Take note of their size and closet space and whether there are any window coverings or ensuite / adjoining bathrooms. Many people put some emphasis on the type of flooring in each bedroom and the colours given to each of the rooms.

How many bathrooms are there, and is that number in line with what the size of your family dictates as necessity? What are the condition of the bathroom fixtures, and do you think they’ll need replacing any time in the next 5 years? Check all faucets and flush toilets to make sure they are in good working order as well as determining if there is adequate water pressure. Look for signs of mould and deterioration as these are possible indications of inadequate ventilation.

Basement Considerations

Now we head down to the basement. Your first assessment should be whether it is a full basement, or a partially finished one, or an unfinished one. Is that in line with your needs / wants? If not, are you willing to finish the basement yourself after purchase? Next, determine if there’s adequate headroom for moving about, remembering that we’re all of different heights. Is there a fireplace or wood-burning stove? Again, be on the lookout for signs of moisture – such as watermarks and peeling paint.

Note whether there is a utility area and – if the washer and dryer are set up in the basement – whether they are being sold with the house. Again, look for signs of water damage.

Last but not least – and this applies to any area we’ve discussed – find out if any recent renovations have been made to the home. It’s also very important to ask about the type of heating, water service, plumbing and the standard electrical amperage for the home. Is the hot water heater owned or rented? Is it gas or electric, and what is its storage / output capacity? What type of insulation is installed around the house?

This is of course is just a scratching of the surface as regards to what buyers should look at when making quick reference decisions about the suitability of a home. Your real estate professional will be able to add to this list extensively and judiciously, and we wish all 3 (or more) of you happy house hunting!

Quarter-Mark Stats & Trends

Published March 22, 2017 by Real Estate Leads

Here we are almost at the quarter mark for the year, and here at Real Estate Leads we like to discuss the state of the markets from coast to coast, in addition to providing a valuable online resource for real estate agents.

Vancouver and Toronto continued to see significant price appreciation in the first quarter of the year. In keeping with that, the average residential sale price of a Vancouver home in the first quarter of 2016 – compared with the same period for 2015 – rose 24%, while single-family homes in the city of Vancouver were selling for upwards of $2 million on average. In the Greater Toronto Area, the average residential sale price during the first quarter rose to $675,492, up 14%.

Inventory continues to see reductions in both cities. Competition among buyers has discouraged sellers from listing their properties, and while sellers know their homes would be quick to sell there are conversely many who are reluctant to become buyers themselves and enter what continues to be a highly competitive market. In addition, some potential sellers are hesitant to list their homes, buoyed by a belief that home prices could appreciate further.

Nest Eggs

Keep in mind as well that many Canadians are relying on their homes as a source of retirement income. They will move cautiously accordingly. According to a recent RE/MAX poll conducted by Leger, 56% of Canadians aged 55-64 who are considering selling their homes will be selling to release equity for retirement. Outside of Vancouver and Toronto, surrounding regions continue to experience a ‘spillover’ effect. This means buyers are moving farther out in search of affordable single-family homes. This has led to significant price appreciation in regions such as Victoria (+10%), Hamilton-Burlington (+10%) and Barrie (+14%). The population growth in these regions – in large part driven by housing demand – is providing a related boost to local economies as restaurants, shops and services expand.

In Flux

Some Canadian cities have experienced an economic slowdown due to the significant drop in the price of oil, and for these cities there are a pair of factors that have been mitigating the short-term economic effects. Take Calgary for example. It has a diversified economy after years of population growth, while Edmonton and St. John’s are benefiting from numerous capital projects in the region including infrastructure investments and continued investments from the oil industry.

Conversely, other areas of the country have benefited from the return of workers who had moved away to pursue employment opportunities in the West. Regions that for years experienced an exodus of their young working population as they headed to Alberta have started to see that trend reverse. In Atlantic Canada, young people from outside the urban centres who would have moved west several years ago are now going to cities such as Halifax. It’s having a positive effect on those economies.

This trend is notable in Southern Ontario, where manufacturing cities are offering greater numbers of employment opportunities as a result of the low Canadian dollar. Windsor previously had one of the highest unemployment rates in Canada, but it is now trending below the national average. It’s expected that this trend will continue for smaller cities in Southern Ontario, and that’s good news for the regions.

In Canadian housing markets where prices have softened, construction has also slowed to align with decreased demand. This is expected to stabilize prices as population growth catches up to inventory levels. When you consider that Canada is on track to welcome approximately 300,000 new permanent residents this year – the highest number since 1913 – that trend is particularly noteworthy with everything it connotes for certain cities.

We’re eager to see what the next quarter-year has in store for us, and as things look up it means even more in the ways of opportunities for realtors to find new clients. Sign up here for Real Estate Leads and have qualified buyer and seller leads provided to you every month.

Location, Location, Location: Drone Video Footage for the Biggest Picture

Published March 9, 2017 by Real Estate Leads

Not only will every real estate agent be familiar with the ‘location, location, location’ adage, but we imagine nearly every one of them will also agree with it. The home itself is one thing, but where it stands and all that’s around it is just as much – if not more – of the equation. As always, we’re very happy to discuss tips and strategies for real estate agents in Canada. Here’s one that’s not only super effective, but also involves some good old fashioned fun as well!

Realtors in generations past would take plenty of photos of a listed home’s nearby features and the neighbourhood as a whole, but they wouldn’t have the time or inclination to take shots beyond say a half-kilometre beyond the property. And all of those photos were taken from eye-level, unless of course you had one that was inclined to climb trees!

Enter the Drones

All of this has now changed with the introduction and increasingly common use of drones these days. Many models have an integrated video camera that can be remotely activated from the controls and uploading the video to your smartphone, notebook, tablet, or desktop is easy. The appeal this will have with both real estate agents and selling homeowners (including FSBOs) is easy to understand. Now you’ll have photos and videos of the home from the standard perspective AND a really appealing and informative view of the large neighbourhood and even the city or town itself.

Cameras that feature a wide-angle lens with panorama view option are preferable, as is 1080p video resolution for obvious reasons. Choose a sunny day and get your drone up high and video rolling! Flying drones is surprisingly easy, and it’s been reported that the average user is ‘fully proficient’ with operation of the drone within 30 minutes. It’s definitely not a difficult task, and the higher-end models are surprisingly stable in the air and easy to lift off / land.

A Surprisingly Versatile Marketing Tool

Video footage generated from a drone can also be utilized for more specific purposes, and shared in formats outside of the standard uploading method. For instance, drones are excellent for providing an up-close analysis of the condition of a home’s roof or chimney. And higher-end drones will allow you to stream live, either on their own or via your mobile internet device of choice.

The newest drones have built-in redundancy. If an operator lets go of the controls, it simply hovers in place. In addition, standard prices for high-quality drones are expected to drop to as little as $500, though drones with higher-end features, including gyro-stabilized platforms, which help steady the video images, will still run in the vicinity of $1,000 to $1,200. The smaller gyro-stabilized drones, with the rotors shut off, can also be handheld and walked inside a home to provide steadier images during a video walk-through.

Have you already got on board with drones as part of your marketing efforts, or are you considering purchasing one and doing so? We’d love to hear about your experiences with them, and – as always – the more listings you have to try out your new toy video recording them from on high, the better. So sign up with Real Estate Leads right here and get a big online boost to your lead generation efforts today!

The ‘Monitoring Dashboard’ – What is It, and What’s it Saying about Real Estate in Canada?

Published February 27, 2017 by Real Estate Leads

Needless to say, all of the major financial institutions have a vested interest in the state and well being of the Canadian Real Estate Market. As an agent, you’re always looking for resources for realtors and it’ll likely be good to know how the big banks employ the Monitoring Dashboard for real estate market conditions in Canada.

The Monitoring Dashboard has 10 separate individual categories, and to each of them one of three colour-coded statuses will be applied at any time.

The 10 categories are:

Affordability
Resale Market Balance
Rental Market Balance
Interest Rates
Labour Market
Demographics
New Home Inventory – Singles
New Home Inventory – Multiples
Homes Under Construction – Singles
Homes Under Construction – Multiples

And the statuses are:

Red – ‘significantly outside historical norms and posing a higher risk than usual’
Yellow – ‘modestly outside historical norms and posing a moderately higher risk than usual’
Green – Within historical norms and not seen to be creating any immediate risk

These findings are generated from the Canadian Housing Health Check Report, which is compiled by the Royal Bank of Canada. It provides solid insights into the overall Canadian housing market and the contrasting regional risk profiles and trends.

So what’s the Monitoring Dashboard saying for 2017?

Toronto

Reds for affordability and HUC multiples indicate what is called ‘overheating.’ Home prices in the city are becoming increasingly unaffordable, and a downturn in the building of multiple-unit housing developments compounds the issue. Also relevant to this trend is the city’s seeming unwillingness to consider a foreign-buyer tax like the one Vancouver has put into place.

Vancouver

Vancouver sees the same reds, but one more in demographics as well with the fact the city is bulging at the seems and struggling to accommodate the rate of population growth it’s seeing.

Home prices in Vancouver have been falling in recent months, with the average price dropping 3.1 per cent as of the end of last year. Vancouver does have “solid economic underpinnings,” though and the market appears to be adjusting in an orderly fashion with the aforementioned foreign-buyer levy.

Calgary

Alberta’s capital would seem to have the greatest cause for concern according to the Dashboard, with reds for rental market balance, labour market, demographics, and new home inventory for multiples.

Increasing numbers of condos and rental units are sitting empty in Calgary, due to job losses that are in large part an outcome from the lower price of oil – a resource that’s a major contributor to Alberta’s economy. Accordingly, the market here is most at risk of any big city in Canada. Recent drops in condo construction and a slightly improving trend for home resales have been positive developments however, suggesting that risks might ease in the period ahead.

Here’s to hoping things look up all across the board with real estate in Canada, and to that end you should make sure you’re exploring every avenue to increase your business leads. Sign up with Real Estate Leads and receive qualified buyer and selling leads that are yours exclusively for your protected region of the country. Proven effective!

To Be A FSBO… Or Not

Published February 4, 2017 by Real Estate Leads

We’ll start this week’s post by explaining that we’re well aware that this is a real estate topics blog and that the majority of our readership will be real estate professionals who’ll be well aware of what exactly ‘FSBO’ means. We’re going to take a quick moment though, to explain this wacky acronym to anyone who’s not so familiar with it.

FSBO (fizz-bo) stands for For Sale By Owner, and it’s a term used to describe a homeowner who’s made the decision to list and sell their home on their own, without the assistance of a realtor. Now we’re similarly aware that the same majority of you will obviously recommend against such a practice with vehemence, but let’s take a look at some of the pros and cons to being a FSBO. After all, being a well-informed realtor who can offer perspectives without bias or prejudice reflects very well upon you and it’s good to be able to appraise prospective clients of both sides of the coin, no matter how it may end up.

Advantages

Avoiding Commission

This one’s simple to understand from the seller’s perspective, as much as it’s in contradiction to your interests as a listing agent. On average, they’ll pay about 6% to sell their home—split evenly between you and the buyer’s agent. They should factor in the realtor’s commission when determining the asking price for their property. Their decided-upon sale price should be enough to pay off the remaining mortgage balance on the property, plus pay the commission. If that calculation leaves a little bit to be desired, this is one reason they might consider becoming a FSBO.

There are Plenty of Selling Resources These Days

The days of creating your own yard sign and then putting an ad in the local newspaper’s classified section are long gone. Now there are an array of resources available to help you sell a home. These included locale-specific real estate purchase agreements that can be found online, and local title companies or a real estate attorney can help with the legalities and answer questions – often online as well if you can’t contact them in person or by another means. This is huge for folks in more rural areas. Perhaps more important though are the excellent resources available on the web for advertising your property. You can include photos of your house, as well as detailed information about the property, including the number of bedrooms, upgrades, square footage and other features. The Internet is pretty much the greatest thing to ever happen to FSBOs!

Sense of Accomplishment

This one doesn’t need a whole lot of explanation. If you’re the type who likes doing all manner of things yourself, and saving money accordingly – you’d probably make a great and determined FSBO.

Disadvantages

Lack of Access to MLS (Multiple Listings Service)

This is definitely drawback numero uno when it comes to choosing to go FSBO as compared to working with a real estate agent. Working within a city or town’s MLS is restricted to participating (and paying) realtors exclusively, and having a home for sale featured in the MLS is of paramount effectiveness in putting the home in front of the largest number of buyers and the realtors they’re working with. It’s pretty much the bible in this regard, and selling your home without having it featured there puts you at an immediate disadvantage when it comes to exposure and finding the ‘right’ types of prospective buyers – no doubt about it.

Lack of an Industry-Professionals Advice Regarding Pricing, Etc.

A qualified and experienced realtor is often invaluable with the way he or she understands the value of a home in the bigger context of the ever-changing housing market in any specific locale. You may think your home is worth X-amount – and you may have some very solid reference points in coming up with that number – but it may simply not be a realistic asking price given the conditions of the market and any of the other factors that can come into play. The majority of which are beyond the scope of understanding for anyone other than a professional realtor.

Pricing yourself realistically but fairly goes a long way in having you sell the home within the timeline you envision, and FSBOs often struggle right out of the gate this way.

Being Overwhelmed / Intimidated with Requisite Paperwork

There’s a LOT of paperwork involved in selling or buying a home, and often more than the average person could ever imagine possible. Without having a realtor who’s gone through these documents many times previously on your side, you may well find yourself moving along at a snail’s pace, and becoming immensely frustrated accordingly.

You Alone are the Open House Coordinator

This one’s also fairly self-explanatory. Prospective buyers will always want to tour homes they’re considering buying, and if you choose not to work with a realtor you’re very much on your own when it comes to scheduling, staging, promoting and so on and so forth. An agent can filter calls and inquiries from other real estate agents and coordinate open houses and showings for your property, so you can go about your everyday life and not have to concern yourself with it – and it always involves a LOT of concerns. And last but not least, a realtor can speak of your home and it’s attractive features and amenities in a smooth, convincing manner in a way you simply can’t. It’s a developed skill.

Here at Real Estate Leads, we provide realtors with qualified leads generated online and exclusive to them and their region in Canada. We also like to talk about trends in real estate, and if you’ve got anything to add to this post or any other we’d like to hear what you’ve got to say!