Stephen Hodge's Blog

Internet marketing... more than a static online ad!

Stephen Hodge (Chestnut Park Real Estate Limited, Brokerage) — Thu, 13 Aug 2009 17:56:30 -0700

When you are developing your web site in order to sell your services and listings, it's really important to always keep at the front of your mind that this marketing resource of yours isn't "local". By it's very nature, a web site is selling to the entire planet. Even if the vast majority of your visitors are local, even if that's who your key target audience is, your site is still going to be seen by people from all over everywhere.

Okay, great, so we know this - so what? Well, lets think about what they might mean for those visitors arriving who are from out of area. What might THEY want to find that's different from a local visitor? After all, you are selling yourself as an expert in real estate and that can mean a lot of things to people, not the least of which is being expert in your local community. And not just in the price of homes for sale, but where the good shopping is, transit, what parts of your area are popular local destinations for residents, etc.

So, how might this impact what you do on your web site? For starters, why not put up a page giving some background on the area you work in - a little bit of the history, some notable residents perhaps? And create links to other resources that could be useful like city hall, local tourism sites, newspapers, etc. But don't go overboard either. Too many links out and not enough in will hurt your ranking in search engines, so find a balance between being found and being worth finding!

And Internet clients are a paranoid bunch as well - so create a friendly environment for visitors. This can be through language, photographs and how you present yourself in your bios and on advice pages. Letting visitors know right upfront there will be no unrequested spamming or sharing of personal information they enter in you site's information request forms is also helpful.

Mostly what you want your web site to do on your behalf though is to be active, not passive. It's easy to imagine a site as a worm hanging in the water waiting for the next fish to bite, but any fishing aficionado will tell you that active bait is much more effective. And your fish are a lot smarter and discerning as well. If you site isn't representing you as a proactive and busy Realtor... then it's saying you are simply sitting there waiting for the next sale. Just like your clients. Some may call this old school, many will call it dead in the water.

And finally there are some old school elements that stay true even in today's wired world - and a classic tenant to stay with is the KISS Principle. Keep It Simple (Stupid... if you feel inclined to use the second "S"!) An easy to read, well laid out, not overly complex web site that isn't full of moving bits and is full of well thought out tips will trump busy sites every time. Design is even more critical under these circumstances. A simple site doesn't and shouldn't look simple - it should look sleek, sophisticated and striking. What that translates into for you will vary greatly from person to person - but if it looks cheap, it will look cheap to everyone!

And one final note - please, please, please don't put anything that makes noise on your site! Not on your tours, not some recorded introduction... not anything! Think about who your users are - often they are people taking a few minutes at work to browse around for new houses for sale. If all of a sudden their computer starts squawking about Realtor services or a houses features, then your visitor is going to be less than happy. Along with simple, keep it quiet and discreet as well - you won't get anyone in trouble unnecessarily that way!

Are you selling, or just bait?

Stephen Hodge (Chestnut Park Real Estate Limited, Brokerage) — Thu, 06 Aug 2009 12:53:24 -0700

Representing best interests does not entail catering to a client's every whim, want and desire. And sometimes the conflict between those two competing interests means refusing to work with someone. It's curious that a system like that of Real Estate, where the service provider (Realtor) and the person serviced (buyer or seller - aka "client") both want the same thing, should run into so many conflicts over how to assess value. But it happens, in some places in particular, quite often.

When I show up to a listing appointment, I assume at least 50% of the time, even when the market has been tough, the home's owner will have an overinflated sense of value for the property they want to sell. The reality is probably more like 80 to 90%, and it's easy to understand why. After all, there are many talking heads and neighbours who advocate real estate as the be-all and end-all to growing wealthy. But despite expectations, I still go into that meeting, armed with real numbers, comparable sales, and recent economic history and activity in order to demonstrate why a house should list for a certain price.

As a Real Estate Professional, monitoring what goes on in the market everyday, I find significantly overpriced homes remarkably rediculous. Any Realtor who is familiar with their local market will almost always recognize an overpriced house right away. Sometimes the description of the house will provide clues as to why a house may appear overpriced while actually being competitive. But most times it just appears to be a home destined to sit, priced out of the market and getting no showings.

Most of the time the price is just a little on the high side, requiring a small adjustment to bring it into "play". But on some occasions it just appears to be pure hubris. And when those extremely overpriced houses do come up for sale, Realtors and buyers just tune them out - and even price adjustments may do nothing to regain their attention. There are laws in my area forbidding the practice of overpricing for the purpose of getting a listing but, sadly, it rarely appears to be enforced. And when a really overpriced house does turn up - there's a short list of whose listing it probably is.

The question that should shoot to the tip of many consumers tongues is "why?" Why would a Realtor accept/suggest listing a property so grossly overpriced it will be almost impossible to get the house sold? (While many Realtors similarly wonder why some sellers insist their house must be worth more than very comparable others recently sold...) Well, there is more to a listing for a Realtor than a "Sold" sign... though sold signs are still the best signifier of success. But having many signs dotting a neighbourhood can bring more people to that Realtor or brokerage - buyers as well as sellers - even if those listings aren't actually selling. Most people aren't paying attention enough to the local real estate market to recognize that one, or several, Realtors don't seem to get their listings sold.

So profile becomes part of the equation, and it's precisely this reason there are laws about taking obviously overpriced listings. In short, the Realtor is merely using their client as bait for new clients, not exactly a model for long-term success, but it can and does work to a degree. It certainly doesn't fit the concept of representing a contracted client's best interests though - even if the price is what the client wanted. Once again, best interests are not the same as wants and desires.

So how can you (as a home seller) be sure you aren't being used as bait for a Realtor to grow their other business? Well, for starters, ask questions like how many houses have you sold and how many have you listed this year? A good Realtor doesn't have to have sold dozens of properties - it's more critical to get an idea of what percentage of their listings they sell. Some high volume Realtors may sell many dozens of homes... having listed three or four times that many.

If they are only moving 20 to 30% of the houses they list, then they aren't working for the client, they are working for profile. I looked up one who has more than three times the number of properties listed now in August than they have successfully sold all year! And they have more expired properties on the year than sales as well. All in all, they have managed to sell 19% of the properties they have listed year to date. I can't say for certain, but I suspect any client faced with the stark reality of an 80% chance their house won't sell, would think twice about listing!

Sellers can also get multiple opinions. Some Realtors don't like going to a listing appointment knowing they are in competition - but tough. That's the world we all live in. If you get three different people in to look at your house and provide a suggested listing price, that should give you a good idea of the value you should be seeking. Afterall, Realtors want to sell your house for as much as possible, and they want to get your business - so most of the time even conservative Realtors are relatively optimistic. But if one of the three comes in much higher than the others... that should be a warning sign there's something not be quite right! Be prepared as well for the price you imagine to be too high... nobody decides on a price, the market does that, and buyers quickly get an idea as they view homes just what is good and what is bad value for their dollar. So don't shop for the highest list price, shop for the most professional and proactive service... that's where you will get value for your money, and sold for that matter.

Something else to keep top-of-mind when it comes time to sell is that typically an overpriced house will, ultimately, end up selling for less than it would have had it been competitive from day one. So by trying to win the lottery, you end up losing more in the end... and have had to continue paying for the upkeep, insurance, taxes and more as the house sits on the market for longer than average! It's a lose-lose situation for you, but the Realtor may meet several new clients because of the exposure and make out like a bandit elsewhere.

For the most part, these tactics don't really work for anyone, but they do still exist. We warn all buyers that it's buyer beware when purchasing a house. Do your due diligence, have a home inspection, consider the re-saleability, understand the carrying costs, etc. The same goes for purchasing the services of a Realtor. A good Realtor will help you find other good help as well, so a little effort in the initial hire can also help find top-notch mortgage, legal, home inspection and other required services along the way - so choose carefully and save yourself all sorts of grief in the days to come!

How are we supposed to know?

Stephen Hodge (Chestnut Park Real Estate Limited, Brokerage) — Mon, 15 Jun 2009 13:16:43 -0700

There's a lot of things in business, including real estate, people feel they have to take on faith. But time and again we're told to measure, measure, measure when choosing what, where and how to spend our marketing and capital investment money. Which is a truth not to be trifled with. But if you can't get a good measure on the value of something, does that necessarily mean you don't do it?

One of the things Christine and I have enjoyed doing tremendously, since starting in the real estate, are public seminars for buyers and sellers. They don't always attract big crowds, they don't always lead directly to business - though on occasion we have in time done very well by the people we have had at our seminars. Often in fact, virtually every attendee has met us previously and would have likely worked with us already. So, did we make any more money or improve our business as a result. Not that the numbers would tell us - but I firmly believe we have, yes.

When we hold these seminars we advertise them heavily throughout the region. We are about the only people doing them at this time. We have door prizes and good food available, we bring in experts to speak about a variety of real estate related topics - we aren't just two talking heads with some chairs in a room we rented at the mall. It's a special event to us so we treat it as such and put forward a face of professionalism we want to be recognized for. But sometimes it feels as though it's a waste of time... but we keep doing them anyhow.

Why? Because we hear about them later from other people who didn't go but who heard how good it was from someone who did attend. Or we hear people talking about how they saw the ad in the paper and had clearly noted it in their memory. Holding these seminars separates us from the pack, we are seen as slightly more expert, slightly more professional, just slightly more altogether. Not necessarily true, but that's the perception, and perception is reality in many cases.

So these aren't events designed to get clients signed up at the time, and we even get other Realtor's clients showing up, (which we respect and accommodate as well as plan for to ensure we aren't going to be offering advice that may conflict with their advice - we keep things fact based). But they are very valuable nonetheless, building public profile beyond those who are actively looking at buying or selling right now. They help put us top-of-mind with people when it comes time to become active in the market for them.

Consequently, along with attending local home shows, being highly visible on-line and maintaining less but higher profile advertising than many others, we almost never have to explain to anybody who is looking at buying or selling real estate locally who we are. They've seen our web site, met us at a home show, heard about us through a friend, or attended a seminar. So three years into the business we now get phone calls that, instead of asking for a home evaluation, simply state they'd like us to come and list their house.

That change in initial contact, where we are no longer having to sell ourselves at the front door, is a different kind of measure, anecdotal though it may be, and it's one that makes the growth and success of our business much more likely, smoother and longer term. So we're going to keep up with the seminars even if they do occasionally get poor attendance, or are populated exclusively by people we've already met. Because without knowing the precise mechanics of how they benefit our business and reputation, I do know that they do.

Historic Highs and Historic Lows... Century Homes can be an Adventure!

Stephen Hodge (Chestnut Park Real Estate Limited, Brokerage) — Sun, 07 Jun 2009 20:06:07 -0700

Cobourg ON - former short-list candidate for national capital of Canada. Neighbour to Port Hope, original trading post in early settler days. Respectively called Hamilton and Toronto prior to the larger and more well know modern cities were named as such. Home to a great many well preserved and restored century homes - from starter to magnificent mansion.

The enduring appeal of of historic homes is unquestionable. There are legions of fans out there who troop through house tours and a few who will drop seemingly endless quantities of money into them in restoration efforts. And they do so for the love of something that today's newer built homes lack in many ways - character. These are houses built at a time when you finished the building you were working on before moving on to the next project, unlike today where houses are built in stages, row on row. Even modern custom homes are usually one of several projects any self respecting contractor or designer is working on. And the character that is added to these homes can easily be bought by the linear foot at your local hardware store or lumber yard.

But love can sometimes hurt you, and when entering into a relationship with a Century Home caution is always the wise approach. There may have been gold in the hills when the house was built - but in the walls of that house today can be heaps and heaps of trouble! More the caution if the house has been completely fixed up... surface work can seemingly increase the value of an old house tremendously, but what's behind all that new plaster and hardwood? Knob and tube? Dry rot? Vermiculite? Asbestos? Lead Paint? Sub-par construction by today's standards?

That last point could raise the ire of some Century Home fans I'm certain - but it's true, many of the oldest homes were built with what is known as "balloon construction." Balloon construction built outside walls of the house first then suspended the flooring in between... you know, with nails-n-stuff. Now, a floor that has been secured to a wall for over a hundred years with fasteners (rather than sitting on top of each level's wall) is going to be reaching its useful age sometime much sooner than when it was originally built. And the "stuff" of a typical modern family dwarfs that of a century plus ago. So the additional weight of more books, computers, clothes, bathroom fixtures and so forth will only add to that eventual failure if not addressed in the meantime. But can you find out if this is the case for your century home before you buy it?

Well, anything not visible becomes difficult to verify - so one must rely primarily on two elements of research before buying. First, seller disclosure - particularly if there have been renovations, repairs or upgrades to the house. Find out from the seller what they know, in writing, so you can be more assured you aren't buying a liability instead of a home. And this is a good point for Century home owners to pay attention to as well. If you are sinking that endless pot of money into upgrading and restoring your house, keep meticulous records of everything. There'll be gold in them there files! Future buyers who can see invoices, written proposals of work done and photographs as restoration is done will have a very good idea of what they are buying and likely value this knowledge in the homes final sale price.

Secondly, look into the house's provenance. Most towns and cities have historic archives available that may hold some useful information about when the house was built and by who, which can also lead to a better understanding of how the house was built and perhaps by reputation how well it was built. You may also find alterations to the house that should have had permits... which if not on record could indicate more recent concerns to the homes integrity. This isn't always easy work, and doesn't always bear fruit, but it's a good way to find out if concern is at all warranted about the overall soundness of an old building.

If neither of these approaches get you all the answers you need, then there is of course the option of doing a more thorough inspection - but these are expensive, often difficult to negotiate with the seller (who may have to lower the price of a house if a significant problem they previously knew nothing about is discovered) and can become messy if repairs are required and the present owner refuses to be satisfied. So really, if the seller isn't prepared to find out what's needed to make the buyers comfortable in purchasing the house... it may be best to just walk away.

This post just scratches the surface of Century home ownership, purchasing and selling as the issues are as wide and varied as the number of century homes available. Making certain you choose to work with a Realtor who is knowledgeable about the specific issues old buildings present is critical for all those who aren't themselves expert. But the character these historic houses - Jacksonian, Victorian, Edwardian (in our region at least) and others - are well worth investing in if you know what you're getting yourself into. Just don't let your love blind you to what lies in store because love lost can quickly turn into a nightmare, expensive and drawn out - just like any divorce.

Time to buy as Mortgage Rates start to go up again!

Stephen Hodge (Chestnut Park Real Estate Limited, Brokerage) — Thu, 04 Jun 2009 15:42:00 -0700

Interest rates centrally have been set to stay where they are for about another year... but that's not the rate we consumers pay. And the banks aren't beholden to the central rate either, which is why this week we see rates creeping back up again for mortgages. Anyone wh is thinking about buying and requires a mortgage to do so would be well advised not to drag their feet too much because the rates for us normal folk can start going up as market activity increases, or just becaues the banks decide for business reasons they want to.

If you are looking to get pre-approved then contact a Realtor you are interested in working with first - they will have Mortgage Representatives they work with (usually a few so you still have choice) which will help if there are any complications during waivers (waiving conditions on a purchase). A Mortgage Broker who has a relationship with the Realtor involved will inherently be more inclinded to make certain everything is done correctly and quickly so that the relationship remains intact.

Prices are low, choices high, money cheap - it has never been this good a time to buy and won't be again for a long, long time - if ever!

A Brief History of Cobourg

Stephen Hodge (Chestnut Park Real Estate Limited, Brokerage) — Mon, 01 Jun 2009 19:03:43 -0700

The Victoria Park Garden Clock:

Factoid: Cobourg was once on the shortlist of Canada's national capital selections - along with Kingston and Ottawa!

Cobourg was founded in 1798 and known as Hamilton, after the township. The town was renamed in 1819 in honour of the marriage of the Princess of Wales to Prince Leopold of Saxe-Coburg-Saafieldonce. Cobourg has played an important role in the history of confederation, including being on the short-list of cities vying to become the nation's capitol, along with Ottawa and Kingston. In the April 2006 edition of MoneySense Magazine, Cobourg was named the sixth best place to live in Canada - when considering economy, home prices and leisure as measures.

Home to some of Ontario's most prominent citizens, Cobourg continues to attract many of the province's elite. Egerton Ryerson founded Victoria College here (later Victoria University - now part of the University of Toronto's downtown campus) before moving on to establish the groundwork for the education system we know in Ontario today. The former Victoria College building, was designed by Kivas Tully (who also designed Queen's Park) and was officially opened in 1860 by the Prince of Wales who would later become King Edward VII. Now it is known as Victoria Hall and, with it's prominent location in the middle of King Street, Cobourg's main centre of business , the building today houses Cobourg's municipal offices, a museum and a concert hall. Other notable Cobourg residents are: the first Anglican Bishop of Toronto John Strachan; Marie Dressler of silent film fame; frontier artist Paul Kane; and one of the fathers of Canadian confederation James Cockburn.

Along with Cobourg's rich history of famous residents, it is today home to 2006 Stanley Cup winning-goal scorer Justin Williams of the Carolina Hurricans, and librarian and author Ed Greenwood, who co-wrote the original stories the Dungeons and Dragons role playing games are based upon.

With over 250 different stores and businesses, Cobourg's downtown hub is considered the economic centre of Northumberland County. For a list of businesses and their contact information you can go to HodgesLodges.ca and look under "Local Resources" on the left menu bar.

Ten Things that Help Sell in a Buyer’s Market:

Stephen Hodge (Chestnut Park Real Estate Limited, Brokerage) — Thu, 28 May 2009 18:18:51 -0700

By: Christine & Stephen Hodge

While the market has warmed somewhat in recent months, let's face it, it's still a tough slog out there. But just because it's tough, doesn't mean one should give up - Realtor or Seller. Simply put, those who put forth the effort will be justly rewarded - and that's a sentiment all Realtors and Sellers should heed!

What helps sell in a tough market? Here's a list of what we find works to sell a house while the market is in the buyer’s favour:

1.) CLEAN: Do not underestimate the power of a hair, or a stain in just the wrong place (think bathroom here in particular) to cause a potential buyer to go scurrying from your home. It shouldn't matter that much, but to some it really, really does! Pay close attention to bathrooms, kitchen and windows.

2.) CLUTTER: Or, more to the point, a lack thereof. A homey, but relatively uncluttered living space is more appealing, feels larger, and allows buyers to better perceive their personal objects in the space they’re thinking of buying. Pay particular attention to counter tops, storage areas, kid’s rooms, family areas - everywhere junk tends to collect! Insert “more” or “less” in front of each word in this equation:

Space = Property = Value.

3.) LIGHT: A bright house is a welcoming one. If you’re living to save energy and have reduced the wattage in all your bulbs - good for you! But while you house is up for sale, boost that wattage back up so the house lights up for showings. And don't let burnt out bulbs hang around - especially in entrance ways, dark corners of basements or in walk-in closets. Buyers want to see everything – so make it easy for them!

4.) ODOUR: Have pets? Smoke? Forgot to take out the garbage or diaper pail? Every house has a smell and bad smells can kill a deal faster than anything! Conversely, a nice, clean, mild smell (baking bread, fresh cut flowers and such) can really help people feel at home. However, avoid strong smells of any kind, good or bad. Pet odour, cleaners, masking agents (like plug-in air fresheners), smoking and other strong scents tend to have a negative impact either by actually smelling bad or, and perhaps even worse, suggesting a bad smell is being hidden (even if it’s not).

5.) COLOUR: The right colours really help set a mood in a house. Too bright and garish will give some people a headache. Too muted and dark will make the home feel cavernous or too small. Too many and you create a chopped up feeling. There's no one rule here, but go for what appeals to a broad base, and lose the personal preferences - especially if they tend to one extreme or another. And never, ever, underestimate the value of a fresh coat of paint where it’s needed!

6.) CURB APPEAL: First impressions count. If you have an untended garden, a broken railing on the front porch, or paint that's peeling, then you’ve already set a tone for the buyer - even if inside the house is gorgeous. A little elbow grease out front is always well worth the effort. Weed, edge, paint, and repair to help create a positive start to your showings.

7.) INFORMATION: Make sure information on the house is readily available to people during showings. If they like the house, a nice feature sheet will give them something tangible to discuss later and keeps them closer to the good feeling they had for the home. Also make sure Realtors have all the background info they can use - carrying costs, taxes, maintenance records, etc. A speedy answer can prevent a tough question from lingering in a buyer's mind. Information pamphlets on the outside for passersby and neighbours can also help bring people in to see what's on offer.

8.) APPLIANCES: Particularly if you have a house appealing to first time buyers – leave them in! Appliances being purchased on top of the home buyer’s financing for the house will most often come right off the deposit. A lower deposit can, in turn, increase CMHC costs, possibly mortgage rates and just add to what’s already an expensive process. Suddenly an extra $5,000 is playing as though it’s an extra $20,000. With few exceptions, you will lose more on the value of your house than the appliances are worth.

9.) LOCAL REALTOR: If a real estate sales professional isn’t good enough to compete in their own local market… why would you think they’d do a better job for you in a market they know much less about? Local Realtors will be up-to-date on issues affecting local market conditions for better and worse. They will also have established local marketing and attract buyers to their web site looking in your local area. Local is always the way to go.

10.) PRICE COMPETITIVELY: A buyer in a buyer’s market is well aware of what your house is worth – even if your home is priceless to you. And, even in a buyer’s market, a correctly priced home will sell quickly and for close to asking. Just because you ask more doesn’t mean a buyer will go higher. Buyers perceive value based on comparably sold properties – not what you’re asking. If you’re way overpriced, more than likely an interested buyer won’t even attempt an offer, opting instead for the easier negotiations of a house priced closer to what it’s worth.

The Problems of Pricing

Stephen Hodge (Chestnut Park Real Estate Limited, Brokerage) — Tue, 19 Jun 2007 21:00:34 -0700

When listing a property, Realtors generally try to ring a representative sample of comparable homes to the table that have recently sold in order to accurately determine what an appropriate asking price is. And, for homes in areas of similar neighbouring homes, this is fairly easy to calculate... but what about unique properties? Worse yet, what about unique premium properties - or carriage trade as they are often referred to? A sub-division home that should sell for a predictable amount should sell fairly quickly in a good market when priced properly - but for carriage trade this isn't always so. Some of these homes SHOULD be hard to sell in order to ensure the seller receive the maximum value available at that time in the market.

But having said that - what does "hard to sell" really mean? If you are getting plenty of interest from qualified buyers, second showings, requests for information, but no offers - then is that being hard to sell, or just not selling at all? How long qualifies as hard to sell? Or are you just waiting for that "right buyer" to come along? And is that buyer a lottery win or a legitimate possibility? With unique properties the questions can get pretty difficult and knowing what to advise your clients on, or when to get hard nosed about price and negotiations can be a difficult and touchy task.

Many owners of unique signature style homes, or those in prestigious and hard to recreate locations, can have an over-inflated sense of value for their "one of a kind" property. One of a kind it may be - but it isn't the only one of a kind home on the market, of that you can be sure. And it doesn't matter if it's a country shack in the woods beside an ideal pond that many could afford - or a million plus dollar mansion overlooking everything around it, overpriced will kill the interest.

And once the initial peak of interest has passed, finding the one buyer who will love that property for what your owner's feel it's worth will become more and more difficult. Interested buyers who moved through in the early days may come to accept that they won't be buying that property even though it has now come down to a more reasonable price. People tend to move forwards, not back. So, while a seller may be patient and in no rush, keep in mind and make certain they understand that their patience may - in the end - result in a lower price than they would have received if they had just lowered their price earlier when it was obvious that people just weren't buying their home at their price.

So, what's the answer - who knows, every situation is different with unique properties. But certainly, if you are getting lots of nibbles but no bites after a reasonable period, it's often better to change the bait than to stick with the same lure that hasn't caught anything yet.

Questions to ask your prospective REALTOR

Stephen Hodge (Chestnut Park Real Estate Limited, Brokerage) — Thu, 22 Mar 2007 10:49:16 -0700

I am routinely surprised, when going on listing presentations just how few questions are asked beyond, what should I do to my house, how much do you think it should sell for and when do you think I should list it. It's an reminder for me that many of our clients aren't all that aware of the many different aspects of selling their houses that an agent has to be involved in for it to be a smooth and successful result. And why would they after all? A typical home owner might sell a home once every five years at most - quite often a lot longer. So not only is the process of buying and selling a house not second nature to people, but think about how much has changed in selling real estate over the last five to ten years. Fundamentally nothing has changed in principle, but in practice... vitually nothing has been untouched by either regulation, technology or simple demographic shifts.

So if you are thinking of selling a home what are some of the questions you might want to ask before signing a contract with them? Well, here are a few to start with:

How will you market my property? There are two things that typically help a house to sell outside of the house itself - price and marketing. A professional agent should have a marketing plan, in writing, they can show you. They should also be able to outline the value of the various avenues they are choosing when marketing your house or property.
What has the market been doing lately? And when you ask, llok for teh answer to contain specifics - not generalities like (It's ben kinda slow) - a professional should be on top of what is going on with statistics and examples to back them up. Generalities might be more suggestive of what their business has been like rather than the market as a whole.
What are my rights as a client? In real estate there are many contracts to sign, including those binding you as a seller and/or buyer together with the agent you choose. But having signed that piece of paper, what are your rights if you aren't happy with the service you get. Make sure you get the agent you are thinking of hiring to outline exactly what signing a contract with them means, and what recourse you have if yo udon't feel things are going well. You should find out that the contractc you sign has as much and probably more protections for you as a consumer as it does for the agent.
What experience do you have other than real estate? Many real estate agents, most I'm sure, have previously worked in another industry or career. It's not a bad thing to find out if that previous experience could be beneficial to their ability to market and sell your house. And if it isn't, just finding out how they answer the question can provide useful insight into how they will handel awkward questions about your home when they come up.
What would you do if you bought my house? Buyers don't often see the potential in a house in the first ten minutes of beig there. A good agent will be able to help provide ideas and creativity in their marketing and showings of your home in order to overcome some of the hurdles people may artificially place on a property.
Do you hold OPEN HOUSES? Surprisingly, not all agents do. That's because only about 1% of houses are sold at open houses... which seems like a good reason not to put too much weight on them. But, while your house may not sell at an open house, your agent may have met your buyer at an open house they've done previously. They are excellent networking and new business opportunities for good agents and those agents will likely have more buyers interested in your property than agents who don't hold open houses.
What do you know about house construction? Real estate agents are not general contractors, but houses are their business and they should have more than a passing knowledge of how they are put together and function.

There are many other questions yo ucan ask of course, and you should, because when you go to sell or buy a home, you are trusting an agent withyour most significant investment and valuable asset - so make sure they are taking the sale of your house as seriously as it should be!

Referrals - what's good for the goose...

Stephen Hodge (Chestnut Park Real Estate Limited, Brokerage) — Fri, 26 Jan 2007 10:03:17 -0800

If you are looking at moving to a new community fairly far from your present home, even if it's in the same large city, don't be afraid to ask your trusted real estate agent for a referral rather than working with them directly. If the area you are moving to is not one that your existing agent is familiar with, then the responsible thing for them to do is to offer you two or three options of agents they trust for you to check out, and hopefully hire one, who are local to the neighbourhood or town. This way you will know you are being represented by a fully knowledgeable professional... and your existing agent will get a percentage for making the referral in the first place. So, in reality, everybody wins.

But times are tough out there for many real estate experts, and many will look to go further a field than perhaps they really should - after all a commission is a commission, and everyone has bills to pay, families to house, clothe and feed, and other everyday life pressures. And this isn't to say they won't do a perfectly good job for you. But, as a consumer, you need to make sure your loyalty isn't simultaneously hurting your own best interests. And getting the referral for an agent who is more knowledgeable about local issues and concerns is definitely your better bet. When your present agent goes to make a referral to other agents, they will do a little research and make sure they are sending you to a good and reputable agent - after all, that agent's success is what they will get paid their percentage of the commission on.

My wife and I offer to help people who are looking to buy out of area by finding them an agent through our website Hodgeslodges.ca. Again, the work we do to ensure the agents we refer to are meeting some strong criteria for being considered as a worthwhile recommendation helps the customer know they are getting excellent local representation. This way, once again, everybody wins - in particular the consumer, because that's who has the most at stake!

So don't be afraid to ask for a referral, and do look to hire a local representative, because a house is usually the most important investment you will make in your life, both financially and as a person or family. It isn't worth leaving anything to chance on something that significant.

Local Expert - Global Reach

Stephen Hodge (Chestnut Park Real Estate Limited, Brokerage) — Thu, 25 Jan 2007 20:06:12 -0800

Where I operate from, the County of Northumberland ON, we get a lot of agents from outside the area listing homes, particularly premium or carriage trade properties. The felling amongst many sellers for these properties is that you need to have a "big city" agent in order to attract the attention of "big money" buyers. Yet, for all the logic involved in leaping to that assumption, "big money" buyers who want to move somewhere specific are going to be looking to that somewhere specific to find their next home.

What this means of course is that while the homes are listed by agents from our larger neighbour Toronto, the houses are still often, if not usually, sold by local agents who have found the buyers in the first place. Or perhaps, more accurately, agents who the buyers have found. And why wouldn't a buyer with deep pockets go to a local agent to buy? After all, who is going to know better than a local agent just why a house on one street that's very similar in size to a house on another stree just isn't comparable at the end of the day. Once you are in the real estate business for even a little while, you quickly begin to grasp that location isn't just a silly cliche - it can make are break the resale value of properties... and not always for obvious reasons.

So the smart shopper shops locally, and the smart agent operates globally. And by doing this, local sellers have nothing to worry about when working with a local agent. Through our site, my wife and I have been in contact with people looking to buy properties in the higher price ranges from towns next door to ours, to across Canada, the United States and even the United Kingdom. In fact, listing with a city agent may actually limit you to finding people from that one city - when there are usually quite a few cities in reasonable range of smaller communities. Here in Northumberland you can find people moving here from Ottawa, Montreal, and many points beyond.

So listing with an out-of-area agents because you think you will be accessing a larger pool of buyers may in fact be limiting you to a much, much smaller pool than you might think. When choosing an agent, your best bet isn't to concentrate on where they are from, but where they market themselves... because that is where the people looking for properties are going to find them. If you own a million dollar mansion in the country, nobody is going to find it on the web page of a downtown city agent, because nobody is going to be searching for countryside properties on sites that key word themselves to city oriented searches.

Besides, I find it tremendously ironic that a town or region is good enough for people to live, but not good enough to offer professional services suitable to those very same people. If there aren't quality people living in your own home town, then what are you saying about yourself?!?

So list locally with an agent who has a global reach - that is by far and away your best bet for selling unique properties.

Selling your family home...

Stephen Hodge (Chestnut Park Real Estate Limited, Brokerage) — Sun, 14 Jan 2007 16:42:10 -0800

If you are considering selling a family home this spring, don't leave it too late to list it. Families looking to buy homes will want to move, often in the months of June, July or August - when their children aren't in school. In order to be sure your house has time to sell and close for your best value on the sale, allowing enough time for families to look and decide to buy your place can be critical.

A good month in most sellers' minds is April, and even May, but in the slower real estate market that we face today, getting your property out and marketed in March (and perhaps even February) would be more sensible. A house that takes two months to sell, as many are these days, will be looking to close in July or even August typically if it's listed in March - any later and closings might get pushed into a new school year and family buyers may have moved on - meaning you won't be appealing to as broad an audience as possible and you may just limit your possible selling price as a result.

And knowing that earlier is better than later is a good motivator to finishing up several of those little nagging jobs you've been meaning to get to before selling - whether putting new silicone around the bathtub, or replacing the old and out-of-date light fixture that doesn't work - getting to these jobs earlier than later will make your property much more saleable once it does hit the market.

So the message is - if you are planning on selling this spring, start preparing now, and don't leave your listing day too late as the market is slower and you don't want to miss your best window of opportunity!

All the best,

Stephen Hodge - Sales Representative

Looking to update your web site?

Stephen Hodge (Chestnut Park Real Estate Limited, Brokerage) — Thu, 21 Dec 2006 21:33:57 -0800

Websites have changed dramatically over teh last few years - a point that was driven home when I began to discuss the cost of sites with an associate who was still using the same site he'd set up in the late 90's. Not only was the site ineffective by this point, and lacking many of the newer useful features visitors are looking for today, but it was costing him a small fortune and he coudn't do any of the work himself.

This is the problem with technology and the small business person. Yo get too busy to pay close enough attention and then you don't realise just how much it's costing you - in new business as well as real dollars - until it's years after you should have made a change. In my associates case, it was as a result of watching a realtive newbie such as myself come along and start to get top line hits on searchengines within only a few months. While he opperates in a large city, I work in a smaller town and rural area, yet I get at least double the daily visitors he does. And I pay a very modest sum for a web site that looks professional, is easy to update on the back end, and has numerous useful tools to help me track, contact, communicate with my clients and potential clients, and to measure the effectiveness of my whole site as well as my individual listings. And there are many site templates available just like mine - and most are better than homemade sites that were more prevelant even several years ago. (To see my site's template provider information you can go to MoneyMaker's web site and even sign up for a free 30 day trial to see how it works.)

But while having a running start with a useful template, there's still lots of work to do if you want your site to be noticed. First off, there has to be content. Many real estate template sites provide you with lots of information about real estate for potential clients, but in order to help yourself be seen during teh many years between the typical home buyer & seller's need for an agent, try to include local information that will be useful for them to refer to from time to time. Links to events, local businesses, home imporvement professionals, and the like, will help to make your site a more useful long-term reference and will also improve your odds of turning up in search engin results. After all, at the end of every day, marketing yourself in real estate - just as it is with your properties - is a numbers game. The more people see you the high the likelyhood that someone will choose to contact you. From there of course it's about closing the deal, but that's a topic for another blog.

Good luck and good fortune!

Stephen Hodge - Sales Representative

Don't forget to sell yourself as well!

Stephen Hodge (Chestnut Park Real Estate Limited, Brokerage) — Thu, 12 Oct 2006 22:24:05 -0700

Every day I sit down and examine what I've done not just for my clients, but also for me. It might seem silly, but afterall isn't my job to do things for my clients? Well, yes and no of course - that is to say it's a part of my job, but in real estate your job is your business, and it isn't enough just to sell your listings, you also have to sell your business - constantly. This is most important when you are busiest. When you're busiest is when most entrepreneurs tend to start ignoring much of the work they do for themselves and focus on the immediate money making opportunities at hand... only to find out once that money has been made that they have next to no new business coming their way.

This is how you create a boom and bust cycle, and the way to beat the cycle is to never forget to work for yourself ever single day - asking yourself "what have I done today for my business" each and every day no matter how busy you might be.

Most experienced agents will take this as a matter of fact, many may have learned this lesson the hard way along the way. But for newer agents, like myself, keep one simple thing in mind while working. More small businesses go under because they forget to manage their growth and give-up the important job of working on the business once the business gets busy. Usually because they are busy doing what they like, which is why they got intow whatever business it is they are in.

Similarly, most of us got into this line of work because we like to sell houses, and once we have some to sell, we can easily get caught up in the processes involved. But the reality is, you will and should spend far more time selling yourself as an agent than you will ever spend selling the homes you list... for to do otherwise is to simply hand yourself over to being outcompeted by those who do.

So... what have you done today to increase your business?

You have money? Thinking of buying a house? Do it NOW... timing is perfect!

Stephen Hodge (Chestnut Park Real Estate Limited, Brokerage) — Thu, 12 Oct 2006 22:11:19 -0700

It's kind of ironic in some ways. When prices are being driven up in a hot real estate market, it's all an agent can do to keep buyers realistic about what they are bidding on. Not that we have all that much incentive to do so, but it is fascinating to watch people happily over-pay for a house just to get it.

Then, a year later, when the market has cooled, the buyers whole mentality seems to shift into conservative worry mode. And the irony is you ask? Well that's simple, it's all backwards. Buyers should be pouncing on the great deals that a buyers market offers.

Sure a buyers market illustrates the inherent risks in real estate, but if you're smart about homeownership then even under typically bad conditions (lets not talk about the artifically created 20% interest rates of the early 80s) your risks don't have to hurt you - inconvenience perhaps, but not harm. And besides, they are the same risks that exist when you are overpaying in a hot market... and nobody seems to worry about them then!

The fact is, the present buyers market gripping my area at least (just outside of Toronto Ontario) may not last all that long - certainly not based on the number of people I'm talking to who are interested in buying. And for those who are too cautious and don't grab a deal while it's available, and find themselves back at having to compete for houses will have missed a golden opportunity to own a home for a great price. Today there is bargaining power, by next spring... who knows?

I'm not seeing massive layoffs, or severe downturns in the economy. Heck, we had a $13 Billion federal surplus, a government committed to tax cuts and a central bank that is holding the course on low interst rates, and may spur a sellers market next spring by lowering them in the mean time. So, buyers, if you have some money, want to buy a house, and are looking right now - don't wait! I know it seems as though there's lots to choose from and that you have all the time in the world, but that can change in a hurry and you can suddenly find yourself having to pay much closer and perhaps even over the asking price than you would have to at the moment.

So ask any financial planner, they'll all tell you that the best dollar you'll ever spend is the one you save... so save yourself a few dollars and buy something while the buying's good. In a few years, perhaps you'll have the opportunity to sell when the selling's good and make a few more bucks in the process, but for now, you'll be in a better house for less money than when you're in competition with other buyers.

Non-traditional mortgages... are they worth the hype?

Stephen Hodge (Chestnut Park Real Estate Limited, Brokerage) — Wed, 11 Oct 2006 21:27:29 -0700

There's a lot of talk lately about non-traditional, customized, private, long-amortization and what-have-you mortgages and what that might mean for the Canadian Real Esate market and Economy given what is presently occuring in the United States. So, is there anything to worry about? Do these new ways of financing homes provide wider opportunities for people who wouldn't otherwise be able to won property... and is that ultimately beneficial for them? Who knows?

Well, for one, not me. The real problem with many of these newer and rickier mortgaging options is in relation to the consumer who they are given to. A 30 or 35 year amortization on a mortgage could be a great opportunity for a potential home buyer who wants to get into a larger home than they could otherwise afford... saving them the cost of moving again (boo from all us Realtors ;o) and still providing the opportunity to increase payments later on when income has risen of money is available to shorten that amortization. But, on teh other hand, if the consumer just keeps blindly paying the minimum payments they risk spending thousands and thousands of dollars that they simply can't see. So is a longer amortization good for some - yes, if they are disciplined and able to manage their debt in a way that will ultimately pay it off faster than the initial amortization period. If they aren't disciplined in this way, then it may not ultimately be to their benefit.

And this same logic holds true of the other forms of non-traditional mortgages available as well. Essentially, under teh right circumstances, applied correctly and managed responsibly, most of these options provide a tremendous wealth of options to consumers who may not fit the bank's idea of a good risk, but who should still be able to afford to buy a home. However, if these other forms of mortgages are used to subsidize unreasonable lifestyle choices... well then, look-out, because that's a fire that you, or the entire country doesn't want to be playing with. Just ask some of our American friends about that.... it's fun on the way up - but the trip down is inevitably ugly!

So if you are thinking about getting a non-traditional mortgage, then make sure you talk to a financial advisor first, someone who will look at your entire financial profile and give you unbiased advice about what you can afford, how you can best minimize your expenses, what variety of options you have available to you and so on. And ask yourself why you are considering it? Is it to buy that house that's really just too expensive for you to afford based on what you're earning and likely to earn? Or is it because it will help you acheive something important faster, that you will be able to off-set in the near future making it more reasonable and less expensive in the end? One of these ways might make sense, the other almost never does...

All the best,

Stephen Hodge - Hodgeslodges.ca

The value of a web site...

Stephen Hodge (Chestnut Park Real Estate Limited, Brokerage) — Sat, 30 Sep 2006 07:59:29 -0700

I was recently asked by one of Toronto's top real estate professionals, a person using the same web-site service and template that I use, if I was getting much business from the site. She was having her doubts about its effectiveness. I resonded that yes, I am in fact getting some business opportunities directly as a result of people finding my web page by searchin online and liking what they found. But I realized after sleeping on it for a while that to compare our experiences is as rediculous as comparing a Ford Focus to a Ferrari (and yes, I'm the Ford).

For me, the web-site is a critical element of my marketing portfolio. I am newer to the business, work in a smaller market (smaller than some real estate offices in Toronto in fact), and sell properties to people who aren't always easily able to access them in person and therefore require a good source to visually inspect their potential next house from their office desk or home computer. The Toronto agent on the other hand has been the number one agent for her Real Estate parent company in Toronto for many years, not to mention the number one agent in Canada for that same company for over a decade at one point. Her needs from a web-site diverge from mine in almost every way you can think of.

For her, a clean, professional and frankly somewhat sexy and leading-edge web site is the minimum her clients expect to see. While her potential buyers are probably very local to the houses she's selling, many of these homes are not the type to be easily opened up to viewings and certainly won't ever offer open houses - simpy based on what's in them. For this agent a good web site probably won't have much of a positive impact on her volume of business, but not having one could certainly have a very negative impact.

So a good web-dite inreal esate is a critical tool for all agents to have, but why it's critical can change dramatically from agent to agent. And taking the best advantage of your web investment requires an understanding of why the site is important to you. Much like finding the right home for a buyer is predicated on evaluating several factors that are important to that buyer... location, bed and bath rooms, kitchen, condition, price, etc.

So go forth and prosper on the internet in Real Estate, but do so with an understanding of what aspects of a web presence is most beneficial to you based on your needs, location and position in the marketplace etc!

Good luck!

For Sale By Owners (FSBOs) - beware, it's a tough haul in a HOT market!

Stephen Hodge (Chestnut Park Real Estate Limited, Brokerage) — Mon, 25 Sep 2006 16:55:54 -0700

Attention all home sellers going it on their own!

First off, congratulations, selling real estate is really pretty exciting stuff. There's always opportunity lying just around the corner. But, when the real estate is your own, then there's more than opportunity you are looking for - you need results!

Now yes, I AM an agent, but I'm not here to simply say LIST WITH ME (though I'd be happy to do so of course... ;o) What I am here to let you know about is all the wide and varied avenues you have available to sell your home so you can make sure your final sale is closer than it may have been previously.

If you are reading this post, then you have already discovered one of the most powerful tools available, internet postings. There are many online classified sites available, like Craig's List, that are free. But these posting are most valuable to agents like myself to direct and drive traffic to our web sites, whichhave many homes for sale. (See Hodgeslodges.ca for an example).

Another critical element to selling your home is knowing what other comparable homes have SOLD for... not listed for, but the final selling price. And establishing just which properties are actually comparable is another key point, it's not always as obvious as one thinks! Knowing these two things will be very valuable in setting your price accurately - because once a buyer sees you're overpriced they will, 9 times in 10, put you out of their mind and move on. You won't be winning them back easily simply because you drop your price to where it should have started... most likely you are now in a situation where significant discounting may have to occur in order to get the property sold. This same problem occurs with agents listings, so you're not alone!

Networking is also vital, and probably the most underrated element of real estate sales professionally speaking. Make sure you are available to agents and their clients - offer a 2% (or better) commission to an agent who brings a buyer with them to your house. Many of these buyers are under contract (as buyer agency agreements help to protect home purchaser's best interests... which are many in regards to real estate) and if you aren't entertaining buyer agents, then you are writing off the most actively interested buyers from the very beginning... making the sale of your home much, much less likely.

And remember, for the 2% you are aoffering, an agent may have been working with the buyers for many months before coming to your property - so they aren't merely walking in and then leaving with a bunch of your money - they've worked many hours to earn your offered commission! And by offering to include the agent's fee within the purchaser's price, you save the purchaser the difficulty of having to find that money outside of their financing... which is why selling and buying commissions have always been combined in the seller's property price.

And keep in mind that, nationally, only 1 in 10 real estate deals are "double ended" meaning the seller (you) finds the buyer. More than 90% of the time a listing agent or seller is approached by a buying agent in order to sell a house. So cutting off buying agents is like cutting off 90% of your opportunities!

Also be aware of present market conditions. Recently things are slowing down, meaning homes are taking longer to sell and aren't commanding a premium as often any more. This means an offer in hand today is much, much more valuable than it was a year ago! Lose that offer, and it could be many more months before another similar one comes along again! Buyers are very aware of what they should be paying. After all they are looking at and comparing houses for sale almost everyday in their search for a new place to live! If you aren't doing the same, then don't be too sure that they don't have a better idea than you do of what your property is worth! This also goes back to the earlier point of knowing what comparable properties have actually sold for recently - without this information you can never be certain if you are being low-balled or if you are actually asking too much.

For Sale By Owners, or FSBOs, attract more low-ball offers as buyers look to take advantage of a seller who may not be as aware of the market as professional agents are or who might be feeling as though there aren't that many buyers out looking as they aren't getting agent showings that MLS properties are getting. This here is another good reason not to cut buyer agents out of the mix as they are required by law to negoiate with you fairly and honestly... even as though are contractted to represent the buyer's best interests. A real estate professional is much less likely to try and steal your shirt when bringing an offer.

And finally, be very, very sure of your information. The legal requirements for selling a house are extremely strict. Quoting square footage in a vague round number won't do, and be sure you are aware of any local political or developmental issues that could affect the value of your property. Buyers are legally entitled to full disclosure and accuracy when they purchase a property. For example, in my home-town there are certain local issues you must provide information about by federal law - it's not optional. Many out-of-district professionals often get tripped up by this local aspect of the market when attempting to sell or buy properties here because they simply don't know.

So be sure you get all of your facts beforehand, know your market and local issues, be aware of the details of your property and don't publish vague measurements that could lead to costly legal issues or collapsed deals later.

If you do all of these things, and market your property in a smart, savvy and well thought-out manner, you will certainly receive a good result for your property. But be patient, because unless you are working at selling your house all day everyday, then it's going to take time - particularly in a slower market.

If you'd like to find out more about what some of the requirements that are going to be needed in the Northumberland region, or to get some advice on where to go to market your property most effectively, then give me a call. I'd also like to know more about your house and whether or not I could bring one of my many buyers through to see it!

Thanks for reading this post and I look forward to helping you sell your home yourself!

All the best,
Stephen Hodge - Sales Representative
CENTURY 21 All-Pro Realty Ltd.

800-440-7524 - toll-free 24/7 pager

905-885-2416 or 905-372-3355 - office numbers

Hodgeslodges.ca - Be Seen & Be SOLD!

Buyers be warned - you DON'T have to call the name on the sign!!

Stephen Hodge (Chestnut Park Real Estate Limited, Brokerage) — Mon, 11 Sep 2006 21:02:46 -0700

It still surprises me a bit that buyers of real estate often think they HAVE to call the listing agent if they are interested in a property for sale. Really, this couldn't be more wrong - well, at least here in Ontario - as any liscenesed real estate broker of sales rep can sell you ANY listed property. In fact, they can usually manage For Sale By Owner properties quite well when required to do so.

But the real question is... why? Why would a buyer find an agent to do all the research for them on what's available on the market? WHY would you have someone else book appointments to see the propeties you are interested in - AND join you in order to provide insightful expert advice regarding the local market or the state of the particular property you're looking at? AND WHY would you want to have an expert real estate professional looking out for your best interests when making what is probably the largest and possibly riskiest (at least as far and property condition and transaction clauses are concerned) investment / purchase of your entire life? AND WHY WOULD YOU WANT THIS WHEN IT'S ALL ESSENTIALLY FOR FREE NO LESS!!!!

Why indeed.

To dip or not to dip... that is the question. Isn't it?!?

Stephen Hodge (Chestnut Park Real Estate Limited, Brokerage) — Mon, 11 Sep 2006 11:54:26 -0700

If you are a first time buyer, you may be getting advice to dip into your RRSPs in order to help you with a down-payment. But those are your retirement savings! And besides, you have to pay them back anyway - how does doing this make any sense!?!

Well, it does, but it takes some mental gymnastics to see how sometimes. First off, you are still borrowing the money because you do have to pay it back... to yourself. But you are borrowing it at 0% interest and no bank, credit union or other mortgage source will be offering you anything near that good a rate. Secondly, you are still going to be earning value against that money as it will go against the equity you own in your new home - which like your other investments increases in value every year - lately a little more slowly, but it's increasing nonetheless. And more importantly, our house is increasing in value based on its entire worth - not just on the part you own, but also on the part you have mortgaged - so you earn on your savings AND on the mortgage money you've borrowed. That's a lot more accrued savings than you were going to earn in your RRSP alone! And finally, you are putting your savings into an asset that you will someday finally own - meaning an end to rent/mortgage payments every month! Doesn't that sound nice ;o)

So dipping into your RRSPs for a first time buyer - good thing or bad thing? Well, the Federal Government put this into place in order to encourage potential first time buyers to make the leap because they know that owning property is the one thing that allows most Canadians to retire because it is the most valuable and potentially rewarding investment you can make. So yes, you do have to pay yourself back within fifteen years, but otherwise you will have to pay the bank back even more money... so while it may feel like more money borrowed, it really isn't. It is cheap money borrowed however, and it can help you get into a nicer first home and provides you with some loan money with more flexibility if you have to skip a payment or two here and there.

So remember, first time homebuyers RRSP loans are exclusively for the benefit of the buyer of a home - and there are lots of great reasons to do so. Call your local real estate expert of mortgage specialist to get fully informed, but make sure you know exactly what options are available to you and how they benefit you when buying your first house. Right now is a great time to be looking as prices are a little more stable than they have been in the recent past and there may be a few good deals available on the market to find.

Good luck hunting and remember, if you are looking in the Northumberland region of Ontario, I am able to put together a complete list of available properties that might interest you - so visit my page http://www.hodgeslodges.ca or call me at 800-440-7524 or 905-885-2416 locally.

All the best,

Stephen Hodge - Sales Representative, CENTURY 21 All-Pro Realty

Is it a buyer's or a seller's market?

Stephen Hodge (Chestnut Park Real Estate Limited, Brokerage) — Tue, 22 Aug 2006 23:11:03 -0700

The question I get a lot these days is "has this finally become a buyer's market?" to which I invariably answer... "Well, yes, sort of... but not really. It's hard to say."

Now if this sounds a little inexact or confusing, well, then you understood me perfectly. The fact is, it certainly isn't the seller's market it once was, but it isn't exactly a buyer's market either. In fact, right about now there is as close to a balance between the two parties (in a broad sense) as you'll ever likely see. So - what to do then? If you're a buyer, should you wait until the pendulum swings more your way? Or if you're a seller - are you going to have to give away the dog in order to get your house sold?

Well, once again, there isn't an easy straight forward answer to this - but if you want to buy a house, now is as good a time to do so as there has been in years. For the first time there are deals out there if you go looking for them and manage your expectations. For sellers, if you don't put yourself in a position where you absolutely HAVE TO SELL NOW! well, prices are still stable and rising, but it's taking longer... a lot longer in some cases, to sell homes that would have moved in weeks or even days a year or so ago. Today, it isn't at all unusual to see houses on the market for several months. And many of these houses still get a price that represents growth in the market, as long as the owners aren't desperate to sell.

So the long and short of it... if you want to sell quickly you HAVE to be competitive in your pricing, but that doesn't necessarily mean that prices are dropping, they're just rising at a much slower pace at the moment. And vor buyers', there are deals out there and prices aren't running away from you anymore allowing for a little more patience... but if you find the right place, don't dilly dally, there are still other buyers out there and while it may seem like a home will wait for you that's not always the case. If you want to buy it - do it! A home is still a great investment and there's no point in waiting once you've made up your mind.

Thanks for dropping in and I look forward to hearing any comments in return!

All the best,

Stephen Hodge - Sales Representative

CENTURY 21 All-Pro Realty (1993) Ltd - Port Hope / Cobourg Ontario