The Duncan Fremlin Blog

Strange Market = Strange Behavior

The Broker of Record for RE/MAX Hallmark Realty Ltd. is Ken McLachlan.  He has a popular and well read blog.  Today, Ken writes:

"Some realtors are forgetting how they should be for their clients and for our industry. They are taking the short term view of things, rather than conducting themselves professionally. It's important for all of us to pause more and remember what we do for a living. It hasn't changed, regardless of current market conditions and the frenzy. 

As a realtor   "are you being the way you want other realtors to be?""

Here's an example of what he's talking about. 

A condo in a hot building gets listed on Monday at 8:03 pm.  It clearly states on the listing that all showings require 12 hours notice (the condo is tenanted).  I make an appointment on Tuesday to show it on Wednesday noon.  I receive confirmation.  All is good.

Then, Tuesday afternoon, I receive an email telling me the condo sold conditionally, no more showings.  How in the hell can that be?  There's barely enough time for this to happen.

I emailed the agent and ask if it's his own offer (I have a conspiracy complex so I thought the worst).  He said no, that an agent booked it shortly after it was on the system and offered on it shortly thereafter.

The result is, "one showing = one offer".  In a market like this?  Is the agent incompetent or an idiot?  I don't  have to have seen the condo, nor do I not have to know the final sale price to conclude that it would have sold for more if other buyers had a chance of offer on it.

One final result from this fiasco?  I have one pissed off client. 

Money Management - or rather Mismanagement

In this blog, I've written often about ACCESS Community Capital Fund, the micro credit organization I've been involved with these past 10 years.  I've also written here about real estate.  There's a common theme that pops up frequently, and it applies to everyone, be they applying for a loan or applying for a mortgage.  The theme?  Money management.

The fact is, we all enter the work force, begin a marriage and become so called adults with little training in how to deal with our money.  In fact, I'll take it a step further and suggest that most of us begin life with virtually "no" training or education on how to deal with money.  We learn by watching our older siblings and our parents "mismanage" their money.

It's time to add this subject to the high school (maybe even elementary school) curriculum. 

I wrote a few days ago about how borrowing has become an olympic sport.  I was making jest but I do not make jest of the laissez faire attitude many young people have toward owing hundreds of thousands of dollars at a very young age.  I often wonder if they're aware of the consequences should they default on this loan?  Do they know what would happen to their life if their credit rating were to tank? Do they know what their job prospects would be if they suffered through a hostile encounter with Revenue Canada? 

My youngest daughter attended an alternative secondary school where she learned how to write essays, how to study, how to present projects, how to craft proper sentences, how to speak clearly and on and on.  This was a very fortunate opportunity in that none of these subjects were in the curriculum  She lucked out by studying with a teacher who understood the value of life skills.  Each day, she cherishes these life lessons. 

It's time to teach the youth how to manage money, be it small amounts or large amounts.  This may not be a popular lesson plan for VISA or Mastercard but my guess is, the result would be fewer divorces and personal bankruptcies.

Real Estate Sales Works for All Personality Types

Back in my hippie days, I worked as a Property Tax Assessor.  One of our annual duties was to perform a "commercial update".  This involved visiting every business we could locate on the streets of Toronto and report on their location, size etc.  Then we'd return to the office and tax the dickens out of them. 

It was 1972 and I was assigned the Danforth.  I began at Broadview and began to visit every store.  I reached Korry's Clothiers, a new high end suit store, and walked in the door only to be greeted by Saul Korman, the well dressed proprietor.  He looked at me up and down and shook his head in disdain.  He offered to help with my appearance.  I told him I was there on business and bribes were not welcome unless it involved huge amounts of cash stuffed in a pop bottle and dropped off on my front lawn the next morning.

I had on my "anti-establishent" outfit which consisted of mismatched items of clothing pulled from my drawer in haste that morning, in the dark.  I would chose items based on shade rather than colour.  I was rebelling against the dress-up policy invoked by my superiors at the Assessment Office.  (I would have rebelled against chocolate ice cream if given the chance.)  Since I was an employee of the Province of Ontario, there wasn't much they could do about it.  Yes, I had to wear a tie, but no one said I couldn't wear the same tie, every day for 3 years.  

I tell this story because I've concluded that if I were to wear that same outfit today, it might take some time, but I'm pretty sure I could find some client to hire me to sell their house.

As I greet agents who come to view my listings, I see all shapes and colours of attire, some of it even dressy.  More and more, Realtors are going extreme-casual and I'm sure Saul would look disparagingly at this business style. 

Personally, I've changed.  It took me  a few years but I finally did change the world to suit me much better,.  I'm no longer anti-establishment.  In fact, I'm pro everything.  I'm even pro global warming when it suits me. 

I still dress in the dark mind you but now the shirts and pants are much nicer and there is still no tie (never did feel right).

The rant was inspired by an article in The Onionsent to me by my good buddy, Dan Aronchick.  I must find out why he selected me to receive this.  Not many professions work this way.  My guess is many choose real estate as a career because of the freedom to dress like a bum.

Pages and pages of Realtors mugs in the newspaper

You may have noticed lately that the real estate companies have been buying expensive ads in the local newspapers to advertise their "top producers"   RE/MAX is guilty of this also.

As an average consumer sitting down with your morning coffee to read the local paper, do you really care one way or the other who received the "president's award" or who earned the most commission last year?  Not likely. 

So why do these companies make such a big splash by buying expensive full page ads to feature these agents?   

It's a way to advertise their brand of course.  But it's also a way the company can demonstrate to these agents that they appreciate the contribution they made to their bottom line. 

In a way, this is one of the neat things about this business.  As an agent working under the RE/MAX Hallmark Realty Ltd. banner, I'm an employee, but not in the traditional sense of the word.  I'm an independent contractor as far as Revenue Canada is concerned and I operate as a sole proprietor in every conceivable way.  The thing is, if I screw up in my duties, it's the owner of the company, the Broker of Record who is ultimately responsible.  

Realtors can change companies like they change their underwear.  It's easy.  Particularly if they are in the top echelon of agents who actually sell more than 4 homes year.  Therefore, the owners of the real estate companies who spend thousands on these full page ads need to do this to demonstrate their appreciation for the agent.  We need each other. 

Can you imagine the TTC taking out expensive ads like this to honour the soldiers who drive the streetcars?  Can you imagine Rogers Communications buying full page ads to pay tribute to the service men who spend hours up a pole working on the cables in cold weather?  Nope.  It's not the same.  These service men are easily replaceable.  No need to waste the money.

A good agent who is productive and runs a solid operation is not as easily replaceable.  Their egos must be stroked. 

Home Buying Preferences barely applicable in Canada

AVID Ratings Co., a firm that provides surveys and employee training to home builders across the United States and Canada, conducts an annual survey of home buyer preferences.

The company found the following hot home features reign supreme in today’s market:

1. Large kitchens with an island.  (sounds reasonable)

2. Energy-efficient appliances and high-efficiency insulation and windows.  These were the most sought-after “green” features from buyers. (second only to stainless steel appliances)  

3. Home office or study (even if it's a cubby hole with no windows)

4. Main-floor master suite (for the old geezers maybe)

5. Outdoor living room (What?  On what continent?)

6. Ceiling fans (give me a break)

7. Master suite soaker tubs and oversize showers with seating areas (what society are they referring to?)

8. Stone and brick exteriors (yup)

9. Community landscaping with walking paths and playgrounds. (maybe in Whitby)

10. Two-car garages (maybe in Alberta)

Open House Frenzy Means Squat!

I wonder how many buyers never get a chance to buy their dream house because they figured they didn't have a chance.

There are two obstacles preventing this offer from being drafted, signed and presented.

First of all, buyers often think that a busy open house will equate into many offers and a very high price.  NO.  NO.  NO.  THIS IS NOT TRUE!  The fact is, some of the busiest open houses I've seen (not on my listings of course) have not generated one offer, even though  more than one offer was expected. 

I've given up trying to make any sense of this.  It's one of nature's freak occurrences...sort of like a Tsunami (at least as far as the Seller is concerned).

The second reason some buyers never get to offer on their dream home is because their agent tells them there's no hope.  When I'm representing the Seller as the listing agent, this is painfully frustrating.  One of my job responsibilities when working for a Seller is to help buyers and their agents take action...that is, get off their duff, put their intentions on paper and draft an offer.  I shouldn't have to spend a lot of time encouraging the agent.  This is their job.

This is an issue because of the unpredictable nature of this business.  Yes, I've drafted offers that didn't appear to have a chance of being successful and yes, most were not successful.  However, MANY of them were successful.  The result is a very happy Buyer. 

I've given up trying to analyze that also.  That's just the way it is.

The moral of the story is, when in doubt, TAKE ACTION.

Borrowing has become an Olympic Sport!

When I first started selling real estate in 1987, banks used to be stingy with their money.  It was often a chore to finance a house.  If the mortgage application was to succeed, it would have to have letters from employers, cash, good credit, co-signers, secure long term jobs and oft times your first born (if it was a male child).  If you were self employed, FUGGITABOUTIT!  You'd have to go elsewhere, like maybe a finance company.  Remember those friendly beasts?  That was like dealing with the devil.   

Those days are over.  Today, in 2010, money is plentiful and cheap.  Consumers are racing to the finishing line with applications in hand, eager to out-borrow the next guy.  Oh, and this is often overlooked but...THE BANKS HAVE ABSOLUTELY NOTHING TO LOSE!  IT'S THE TAXPAYER WHO IS ON THE HOOK FOR BAD MORTGAGES!. 

In other words, if the mortgagors can no longer make their payments, the mortgage insurance industry (the taxpayer) will suffer the loss. 

Since Flaherty's new mortgage rules were announced, money is not AS plentiful and cheap but don't kid yourself, not much has changed.

He didn't go far enough.  The consumer won't behave responsibly so he/she have to be protected from themselves.  That's what consumption is all about.

Letter to Tony Wong, Real Estate Columnist from the Toronto Star

The article in the weekend paper written by Tony Wong pissed me off.  The scope of the article was much too narrow to tell the whole story.  Here's my response.

 

Tony:

 

All this Competition Bureau mumbo jumbo makes good press but won’t help the public as much as you and the general public think.  There are a few good stories embedded in the big story if you’d stop and take a look.

 

For example, how will the public use this new found access to the MLS site?  Will the information they enter be verifiable in any way?  I’m thinking the public will have to be reminded often of the term, “buyer beware”.  As it is now, as you must know, all information on the MLS site must be verified by a licensed Realtor.  Not only that,  the Realtor who enters that information is “liable and accountable” for it’s accuracy.  In other words, if he/she says the electrical is 100 amp and it’s discovered to be on 60, he/she’s on the hook for the cost of the upgrade.

 

I haven’t heard any mention of checks and balances regarding the published data on a house once these new rules are in place.  How will these disputes be resolved?  Litigation?  You might want to ask Melanie Aitken, the Commissioner of the Competition Bureau.  I understand she’s a litigation lawyer.

 

Much of my day is spent protecting the interests of my clients.  For example, if the listing describes a mutual drive as a Right-of-Way, I have to double check that before I draft the offer.  If I describe it inaccurately, this might interfere with the closing.  Who's going to do this for the general public who have no representation?

 

So here’s a suggestion for an article… tighten up the licensing rules.

 

Here are a few ideas:

 

Most Realtors hardly sell anything at all.  60% of agents on average sell less than 4 houses each year.  To them it's a hobby.  Since when is drafting contracts for many hundreds of thousands of dollars a hobby?

Realtors aren't like travel agents selling $500.00 airline tickets.  They sell major assets that for most people represent their entire worth in the world.  These consumers must be protected.

Begin by raising the bar by demanding better education (at least a  university degree) and much better training.  How is it that a 25 year old high school graduate can get a license to sell real estate in only a few weeks and immediately begin negotiating contracts that are staggering in their size?  How is a Realtor supposed to negotiate with a fellow licensed Realtor who has no command of either of the official languages?  

Once a Realtor has a license to be a Sales Representative, they should enter an apprenticeship program and not be allowed to trade in real estate without a mentor.  This would allow them time to learn the trade and elevate their accreditation to the level of Broker. 

The Broker of Record is most often the owner of the franchise.  They are the person legally responsible for all activities and transactions that occur under their banner.  It's impossible for them to supervise a new agent on a day to day basis.  They often have no idea what their agents are doing until it's too late.  Get rid of this Broker of Record system and require that the agents be responsible for themselves.   If they screw up, make them pay the price. 

Increase and legislate the penalties for rogue Realtors.   Bring on lengthy suspensions for unethical practices. 

Neighbour's garbage costs everyone in the end

There's a family in the Dupont/Ossington area of Toronto that are using their back yard as a junk pile.  Of course, the don't consider the stuff they're storing there as junk but...

I feel for the next door neighbours.  They must be perplexed and dismayed by this yard.  My only hope is that they don't plan on selling their house any time soon.  The mess next door would cost them big time. 

There's not much they can do about this other than urge the city to take charge and remove the junk themselves.  They do have the by-laws in place.  If they are inclined, city officials can clean this place up.  Politically, it might be ugly. 

I sometimes wonder how often bad neighbours inspire people to move.  Most don't tell me if that's the real reason.  Why would they?  Sometimes the other neighbours will know the real reason but as I learned over the years, a bad neighbour for one person is another fellow's best freind. 

Trillium Future Funds Vital to Ontario's Economy

On Tuesday afternoon I spent an hour at the Ontario Trillium Foundation offices as a representative (Vice Chair) of ACCESS Community Capital Fund.  We applied for and were granted a sum of money to help with our city wide mandate to reduce unemployment by supporting entrepreneurs, both new and existing.  Our clients are people who otherwise do not have access to institutional financing.  We act as guarantors.  Alterna actually lends the money and administers the loan.

Much of the hour was spent glad-handing with the Minister of Tourism, Michael Chan and the Trillium Board of Directors.   It was quite empowering to meet and socialize with the other successful applicants.  We all share the same mandate... that is to promote causes with long term benefits designed to reduce unemployment in the province. 

The announcement read as follows:  "Access Community Capital Fund (http://accessccf.com/) - $125,500 over three years to develop chapters of Access Community Capital Fund in six Toronto neighbourhoods. Micro-loans will be extended to low-income individuals who are starting or running small businesses but unable to secure traditional bank financing." 

This grant will be the life blood we've been looking for to take our cause city wide (and beyond some day).  Our first order of the day will be a celebration next Tuesday.  This will be the opening of the our first satellite Loan Review Committee in the Black Creek (Jane/Finch) area to compliment the existing committee that's been operating downtown for 10 years.   Further expansion is in the works but it feels very special to get the first one up and running. 

Our second order of the day will be to hire an administrator to organize and run the day to day operations.   To date, this has been functioning on a volunteer basis.  This group of committed citizens have taken ACCESS as far as it could and are very ready to have a paid administrator to take over the reigns.  

Lesson learned?  Perseverance pays off in the end!

Realtors do not sell houses!

For the past three weeks, I've set aside one full day to participate in a rather comprehensive course about what it means to be a "listing agent".  45 RE/MAX Realtors meet once a week at RE/MAX Headquarters and spend a day with Steve Woodruff, a  middle aged but energetic trainer from Michigan.  This guy is good!

One of his "things" is the notion that we don't sell houses.  Vendors sell houses.  Realtors sell their knowledge and their time.

This is particularly enlightening in light of the news coverage recently about the Competition Bureau supposedly investigating the alleged non competitive nature of the Multiple Listing Service. 

If the MLS is deregulated (or whatever the correct word is), where does that leave the 30,000 Realtors trying to make a living in the GTA and beyond?  I'm certain this won't mean fewer houses to sell.  It won't mean fewer clients.  So what exactly will be different?

From a Realtor's perspective, maybe nothing.  After all, I don't sell houses.  I sell my knowledge (and I'll still have lots of that) and my time (I've set aside 40+ hours a week for this).  I'm pretty sure, regardless of who actually is allowed to access the MLS, these commodities will be in great demand.  As a client once said to me, "you make people lots of money".  Yes.  What he failed to mention is how much money we "save" people. 

Man's Greatest Fear... Rejection!

There is a wise scholar who has just written a very important book.

His name is Harold Kushner.  The book is "When Bad Things Happen To Good People".

Contrary to what the title implies, this is not a "downer" kind of book.  Rather, it is quite uplifting and helpful in dealing with the day to day grind.

To listen to a lecture on this topic, click here.

Kushner on Fear of Rejection

 

The author survived the death of a child over 40 years ago.  Like many intelligent and thoughtful people, he used the experience to learn much about himself and consequently strengthen his ability to address other difficult situations in his life.

He writes that the "sense of not being needed is more devastating than either illness or any other kind of disaster". 

Rejection is a noun common to all human beings.  We experience it in our family life when our 3 year old tells us in a fit of anger that we're the "worst parent in the whole wide world".  We feel it when we are laid off from a job;  when a friend doesn't call us back when they say they will;  when a clerk at the local coffee shop is unfriendly;  when our spouse leaves us for our best friend;  when someone hangs up on us... and on and on. 

Wouldn't it be great if we each had a mechanism to convert this gut wrenching fear into something more life affirming so that we can live our day to day life without any sense of dread.  I'm not sure how pessimists would take to this but they're likely the most in need of such a mechanism.

In my quest to be a good real esatate agent, I knocked on strangers' doors every day.  I even tried calling them to ask for their business.  This I discovered was the most sure way to confront this fear of rejection.  The angry homeowners, though few in number, were initially devastating to my fragile ego.  It's funny though.  After one or two of these each day, it soon became apparent that the novelty of this anger soon dissipated and I began to seek it out.  The pinnacle of this journey for me was a call I made one day to a house in Cabbagetown here in Toronto.  For some reason, this neighbourhood had the rudest homeowners when it came to cold calling. 

This one particular homeowner (who I later met at a social occasion) told me in no uncertain terms to F$%# Off and never call back.  I thought about how upset I felt after this call and the next day, I CALLED HIM BACK.  I was sorry to disturb him again but this second call did wonders for my fear of rejection.  I got off the phone with a calm sense of wellbeing and though the fear hasn't disappeared completely, it certainly doesn't gnaw at me like it used to.

Imagine how much more of life we would all experience if we didn't have this annoying fear to hold us back.

Linkedin - useful business site

Of all the social networking sites, the two that offer the most are Facebook and Linkedin. 

They are quite different, each offering a different approach to "keeping in touch". 

Facebook is quite good for the day to day, hour to hour communicating that goes on.  I notice most of my younger clients use this in lieu of email or phone messages and I'm fine with that now that I understand it a bit more.  I'm still not totally clued in to all that it offers but that's not a concern at this point.

Linkedin however has some very practical business functions. 

It reveals just how small this world is.  I'm surprised at how many connections I recognize, from people I would never have guessed.    It's also an excellent way of getting a sense of how my clients appreciate my services. 

The following has been written about my services as a Realtor:

“I have known Duncan for more than 20 years, and I have worked with a number of real estate brokers and agents over the years. Duncan has been by far the best. He makes the experience transparent for the seller or buyer, and goes a long way in helping the client get beyond the mythology and into the reality of real estate. I have recommended him to a lot of my friends, who have had similar experiences to mine. Plus, he's a great banjo player and a pretty good hockey player.”  Dave Coates.

“Duncan is a real estate agent unlike any other. Not only is he extremely good at navigating the complexities of the housing market, but he is a generous and enthusiastic participant in the Toronto communities in which he lives and works. His creativity, thoughtfulness and integrity make him someone I feel very comfortable recommending.”   Doug Worts.

“He is a real pro who is a pleasure to work with. He has a no nonsense approach that works and does not make promises he cannot keep. If I am selling or buying Duncan is my go to guy.”  Gary Beechey.

“Duncan is trustworthy, consistent and reliable. He goes beyond the call of duty and shows great generosity of spirit. If you are hiring Duncan, you can be sure that you are hiring a dedicated and seasoned professional who will work tirelessly to get the job done!”  Jennifer North.

And to think.... there are 19 more on Linkedin.  These kind entries have been a real eye-opener.  I'm truly humbled.

Use a mortgage specialist.. not a generalist

I encourage clients to call a mortgage broker when looking for financing, even if they're hell-bent on using their "loyal" bank manager.  They negotiate mortgages all day long.  Bank managers negotiate mortgages occasionally.  

 

Here's my thinking on this: 

 

 

Why use a mortgage broker instead of your bank?

 

 

Find the Best Mortgage

 

The bank sells only its own products while mortgage brokers have access to over 60 lenders and can offer a wide range of competitive and innovative products and services to meet your mortgage needs.  This is particularly important for clients with poor credit or unverifiable income who may not be able to qualify at their bank.  

 

 

Find the Best Rate

 

Your bank is in the business of making money for its shareholders so you may not be offered the best possible rate unless you shop around and find a lower rate.  Invis for example is one of Canada’s largest mortgage brokerage firms.  This gives it the leverage to negotiate below-market rates with many lenders saving you the hassle of making several calls to negotiate your  rate. 

 

 

Consult an Expert

 

Banks sell a wide range of products such as personal accounts, loans, RRSPs and mutual funds. Mortgage brokers specialize in mortgages only and you can benefit from their product knowledge, market access, exceptional negotiating skills and commitment to highly personalized service.   

 

 

Obtain a Reliable Pre-approval

 

A mortgage pre-approval from a bank often provides little more than a rate guarantee for a mortgage amount determined by your reported income.  A mortgage broker will ensure that your credit, income and down payment meet the lender’s guidelines and will also provide a fully underwritten pre-approval from a lender.

 

 

Professional Service at No Cost

 

The good news is that there is no cost to the borrower for a mortgage broker’s services because the broker is paid by the lender you select.   

The Art of Compartmentalization

This is a good word... "compartmentalization". 

Men are often criticized for performing this task so skillfully each day.  We do it in life and in business but what really riles the ladies is when we do it in love.  I'll have to write about that when I'm older.  It'll be a long essay.  Today, I'm all about business so I'll keep it short.  The fact is, it's not easy being a man.

Another way of expressing this is "categorizing".  I have to be skilled at this.  Otherwise, my business life would be chaos.  My categories are family, friends, clients, musicians, book club members, neighbours etc.  We all have them. 

Maybe the word "prioritizing" is even more accurate. 

I have a buyer right now that is in a desperate situation.  He needs to have some place to live very soon and the search for a condo in clearly a priority.  That's not to say his situation is more important than another client but this fellow is on my mind often each day.  He's relying on me to find him the right place and I admit I've created a special compartment for him.

I have a young family that is getting ready to move later this year.  They have a lot of work to do before they can proceed.  I have another compartment for them.  I don't think about them as often as the other guy, at least not yet.

I thank my lucky stars I'm skilled at this thing called compartmentalization.

Oh, I do it with my emotions also.  I'm of Scottish heritage and we've mastered this art.  Otherwise, how could we have invented the modern world?

An Abundance of Goodwill!

Last Thursday, I hosted and sponsored a show at Hugh's Room in support of Artscan Circle, a most noble charity.  It is a group of artists and musicians who work diligently to take their art and their craft to troubled native communities in the far north.  The house band was the finest in the land, Whiskey Jack.

The show was a huge success.  What impressed me most as I was assembling the cast of many was the endless energy and enthusiasm all felt toward the cause.  Many contributed hours of their time and much inconvenience to make this happen.

Caitlin Hanford, a busy person with two musical acts and a full time career as a teacher to deal with each day offered her time to rehearse and perform as needed.  Russell DeCarle and his golden voice drove to the city from his farm up north on two occasions and thanked me after wards.  George Meanwell and Daniel Kushner came to the club early the day of the show and spent the evening cheering everyone on before it was their turn to perform. Mark Crocker and his pal Chester drove from Parry Sound.  Bob McNiven spent countless hours drafting charts, rehearsing and more.  Chris Whiting offered his time on one of the busiest days of the year in his job.  Rob Whitehead devoted hours to the cause and structured his life (and his family's) to make this happen.  Arlene Zock selflessly participated as she has been doing for so long now.  Randy Morrisson restructured his work life and offered his valued skills to bring good cheer and fine licks to the stage.  Howard Willett continued his tradition of "being there" in so many ways.  Mr. Rick, a joy to sing with, was most gracious and generous with his time as he offered up a soulful tune.  Carol Teal and Judy Find were vital in the lead up to this event, offering support and enthusiasm and of course more and more hours of their time.  What can I say about the fill in Master of Ceremonies and all round cook and bottle washer, Burke Lawrence.  Circumstances forced a change in plans at the last minute and this fine man ran the show from the stage in a professional and very amusing style.  I received many comments about his contribution.  Did I mention he spent much of the evening walking from table to table with his Joker's Hockey Club cohort, Derek Thompson selling $785.00 worth of raffle tickets?  Then there was the Whiskey Jack piper, cousin Dave Fremlin who when asked if he would pipe on the band, always says "yes".  He didn't even have time to go home first and kiss his wife and new daughter.  Now that's commitment!  Thanks also to those who called and bought tickets and sent emails offering support and encouragement.  The world's best photographer, Gary Beechey came right from work to click a few fantastic photos.  Thanks to Karen, my wonderful wife for working so hard to promote and sell tickets. 
And finally, Grant McNeill at the Twelfth Fret Music Store on the Danforth donated a very good banjo for the raffle and I thank him.

All in all, as you can see from the photographs here, it was a terrific night.

Arrogance in business is misplaced

I often joke about how much I contribute to the bottom line of Rogers Communications, even though  I use them as little as possible.  I rely on many but not all of their services and pay them a lot of money each year.  They don't have my home phone (not for lack of trying on their part).  I don't have cable TV (not for lack of trying on their part) but my business communications are all Rogers.  I'm referring to my cell phone and my Blackberry.

At the recent RE/MAX event at the Convention Centre, they had a booth set up to promote their products.  I spent a few minutes with the main man at this booth asking about my Roger's plan, can they improve on it and how the industry is going to change in the weeks to come.

WIND MOBILE is the new cell phone provider offering pretty good, all inclusive, cell phone packages with NO contract.  I'm curious how Rogers and Bell, the two big hogs who dominate the industry, are going to react. 

Well, the Rogers representative I spoke to behaved in a dismissive and arrogant manner.  He began by criticizing the new company and pointing out they're shortcomings.  He didn't answer my question.  I prodded him.  He finally said Rogers is studying the matter but a decision won't be made quickly. 

Suggestion to Rogers:  Get off you duff and pay heed!  I'm keen to go elsewhere and given the chance, I'm outta here!  I'll go somewhere I'm wanted.  Take this seriously or you'll be left behind in the dust.

Try being arrogant in this business climate and you'll play the price.  I for one won't put up with it.

Mistakes! We all make them.

There is a very well respected real estate trainer who had made a couple of potentially devastating mistakes recently.  His name is Joe Stumpf.  He released a video link to prospective clients (including me) and when we tried to log on, the site couldn't handle the volume and it crashed.  This has happened twice that I know of.

I was intrigued by how he handled it.  His approach was not unlike David Letterman. He owned up, apologized, and made amends by offering added value.  He extended the free offer for a few more hours.  He owned up and dealt with it immediately.

Actually, Letterman didn't do that. He couldn't add value since there wasn't much value to begin with.  Either he's funny or he isn't so if he isn't funny in the first place, the only value he could add would be to retire from the airwaves.  He's only as funny or unfunny as he can be and beyond that, there is no added value.  He couldn't extend his show by a half hour.  Even if he did, who would watch?  He's not that good.

Tiger Woods has gamely demonstrated to the world how not to behave if you err.  Stick your head in the sand and the world will bite or paddle your behind repeatedly until you can't take it any more. 

In the early days of my career as a Realtor, I drafted an Offer and did not clearly identify a book case that was included in the deal.  I soon found out the Buyer was expecting a different book case and since it was my mistake, I had to own up and pay to replace it... it cost me $1,500.00. 

Over the years, in similar situations with other Realtors, I've seen agents deny, deny, deny and run away from their mistakes.  I've seen retailers and service providers do the same thing.  It stinks.  These people are to be avoided.  They are unprofessional. 

Sadly, we expect it from politicians and professional athletes. 

It's much easier to own up and accept the error for what it is.  The agony does't last as long.  And the fact is, the mistake turns into a positive.  It simply feels good when it's attended to responsively and honourably.

Easily the Best Real Estate Operation in the world

I doubt there are many industries that are defined by one company.  Real Estate is one of those industries. 

World wide, as I've seen first hand, there is only one sign that defines the health of the local real estate industry and that's RE/MAX.  If I see a RE/MAX for sale sign in Greece or South Africa, I know that transactions are being completed efficiently and professionally. 

I witness this each time I attend a conference.  Yesterday's Kick Start 2010 was a perfect example of that. 

Thousands of bright eyed professional RE/MAX Realtors attended this event that was sponsored and provided free to the agents.  Free courses were offered (Green Energy, Social Media, Staging etc).  The best speakers in the world were there (Joe Stumpf).  The service providers, the entertainment, the food etc. was all first class.

I found out that on average, 20% of all licensed Realtors sell "nothing" each year.  Also, 60% of all Realtors don't even sell 4 houses each year.   Good grief!  There must be cheaper hobbies out there. 

RE/MAX agents however, sell on average, 18 houses each year!  ON AVERAGE. 

  

HST and the end of the world as we know it

According to the Ontario Real Estate Association (OREA) Ontarians will pay, on average, an additional $1,449.00 in new taxes on their next residential real estate transaction.

This is not good for the real estate industry but it's probably good for the Provincial and Federal finances.  I suppose there's a plus side to that.  We don't want to lose the services and the quality of life that make us who we are.  That requires a strong government with money to spend. 

Maybe indirectly it is good for the real estate industry.  Many people from around the world come to this city and buy houses and one reason of course is because our government's finances are in pretty good shape. 

Actually, now that I've thought about it, maybe this HST isn't such a bad idea after all.

I don't read this opinion very often in the real estate trade magazines.  They're convinced the world will end as we know it.  Bah.  Humbug.  We'll get over it as we did with all of the other tax increases.