The Duncan Fremlin Blog

Duncan Fremlin, Disambiguator

Yes, I'm a Realtor.  However, as I've written about often here, that means I wear many hats.

One of the more undervalued and under promoted skills I offer and use every day is that of consultant (or as I've read recently, a disambiguator).  The Oxford dictionary definition of a consultant is "a person who provides expert advice professionally".  

Do I get paid for this?  Not directly.  Do I have to provide this service to be a Realtor?  I think I do although many other Realtors may not.  In fact, many may not be able to because of their limited knowledge and experience.  I love this part of the job.  It's Problem Solving 101 and I'm good at it.

Example:

Young man calls me and wants to meet to discuss buying a house with the help of his out of town parents.  Next time his parents are in the city, we all meet at my office.  They've never done anything like this before so there is lots to discuss.

I introduce them to a mortgage broker I know and trust so they can learn what their options are regarding principal of mortgage, the cash that mom and dad will be providing (are there restrictions because it's a gift?), monthly payments, carrying costs of the house and so on.

I introduce them to a real estate lawyer to discuss how to structure the ownership.  Dad originally thought all three would be on title but when he learns that this property could become the principal residence of his son who in turn could use the capital gain as a tax free benefit, he admits it's wise to rethink this.  This leads us to the idea of buying it as Tenants-in-Common i.e. each of them are on title but for a predetermined percentage.  For example, mom and dad could each own 5% and their son could benefit from the capital gain on his 90%.  

I'm then told the parents might retire to the city in a few years and take over the house form their son when he's ready to move up into a large and hopefully matrimonial home.  This leads to a lengthy discussion about where they might actually like to live in relation to where their son would likely want to live.  This part of the equation is very uncertain so this leads us to the idea of the house as a post retirement investment with rental potential.  "Mmmm..." they say.  "We hadn't thought of that".

We ended our meeting with the dad telling me has a lot to think about and discuss with his financial advisor.  Next time we meet, we'll be much closer to proceeding with a purchase.

 

 

5 Stages of Social Networking Acceptance

Published this week in Real Estate Marketing magazine.  

I was at a real estate seminar the other day and overheard a conversation about social networking. One agent had a Twitter account but wasn't using it.  The other agent didn't have a Twitter account and had no intention of getting one.  

This struck a chord.  I realized I had been in both places at one time or another but am now a committed Twitterite.  What happened for me to end  up "with them"?  How did I get from denying it's importance to accepting the value and enjoyment associated with this strange phenomenon?  In other words, how is it I joined the Margaret Atwoods of the world?

Then I realized I had traversed through the five stages of change (DANDA) described by Elisabeth Kubler-Ross in her 1969 book, On Death and Dying.  The agents I overheard were immersed in this process, fraught with guilt and only time will tell if they proceed to the finish line.  Most do not make it to the acceptance stage.

I began by DENYING the importance of Social Networking.  I have a good friend who is a salesman and he's so stuck at this stage he'll never escape.  His business is suffering because of it.  Deep down, I knew it was necessary if I wanted to continue being a full service Realtor to my clients and customers.

I knew I was at the ANGER stage when I used to feel resentment towards those who had progressed beyond me and were actually profiting from this modern way of communicating.  I would lash out at the Twitter logo every time I saw it.  The smug Twitter users had this holier than thou attitude, or at lease I thought they did.  I can be a very small person when the circumstances are right.  

I knew I had entered the NEGOTIATING stage when I hired a young Twitterite to try and teach me how to do it.  I didn't quite get what she was talking about but I figured if I had an account, I would at least be able to communicate to my clients that I was hip and living in the modern age.  That's not to say I was Twittering because I wasn't.  However, in my little Twitter mind, I didn't feel I had to if I wanted to make my point.

I woke up one day and read that sales people were soliciting business and solidifying relationships through Twitter.  I didn't want to get out of bed.  I was sad and Twitter DEPRESSION had set in.  I didn't know it at the time but I was on the verge of a break through.

Then one day, I started sending my blog entries to my Twitter and Facebook accounts.  I figured, what the hell?  What's the worst that could happen?  As it turns out, nothing bad happened.  Now I've ACCEPTED my life as a Twitter user and actually have benefited from it.  My bank picked up on my recent complaint and their Twitter Guy (Nate is his name) fixed it for me in short order.

Now, I must click the Publish icon to the right of this cursor and all will be published everywhere.  It feels good to be on the other side.

Parliament Street, The Walk

Once upon a time, about 42 years ago actually, there was this country bumpkin from a sparsely populated farming community in Northern Ontario who arrived in Cabbagetown only to learn it was the most exotic place in the world. First he learned about Amelia Street and the peoples east of Parliament Street. Then he took up residence by the beer store at Gerrard and Seaton and discovered life on the west. The constant from both locations was the hub of the community, Parliament Street.  

At all hours of the day, it was teaming with people from all walks of life. The long time residents left over from the war years, with a light dusting of hippies, dominated the rooming houses, the bars and the mum and pop businesses along Parliament Street. It felt strangely lonely as only a big city can feel. 

I was thinking about this last week when my wife Karen and I walked down Parliament Street from Wellesley to the Distillery. It was a warm sunny January day and a coffee at Balzac's Coffee seemed like a good idea. Besides, since I've been selling houses and condos here for 25 years, I thought I should try getting out of my car to better explore the new street-scape that's been built these past few years. 

Well I must tell you folks, it was a very pleasant stroll indeed. As you probably know, that wasn't always the case, most certainly not 42 years ago. In 1972 I worked the night shift at my summer job on a city garbage truck during my university days and we'd park at Dundas and Parliament to eat our lunch (or whatever you call a meal at 3:30 in the morning). We'd be entertained by the ne'er-do-wells as they performed their nightly deeds, many of which were of the illegal variety. It was like a theatrical event some nights. The blocks south of there were no better with vacant car lots, abandoned buildings etc.

Well, here we are in 2012 and Parliament Street is now a destination. I would never have imagined this 10 years ago. The shops north of Gerrard are diverse and as interesting as any in the city. The wasteland of poorly designed housing called Moss Park is mostly gone. The sidewalks are clean and safe. Feel like a Tim's? No problem. Need a few items at a fully stocked grocery store for your gourmet dinner? No problem.

Oh, and that abandoned industrial complex called the Distillery that housed the pigeons and the homeless? Well, it's simply become one of the most beautiful building complexes in Canada.

This photo comes from the Toronto Public Library Archives and shows Parliament Street, East side south of Gerrrd in 1952.  All was demolished soon after to be replaced by Regent Park.  

 

Anatomy of One Internet Hit

In January, at my Business Networking International meeting, it was my turn to offer a 10 minute presentation about my business and the services I provide as a real estate Broker here in Toronto.  It was the story of what happened following a hit on the internet and how this Innocent email eventually turned into 6 transaction.

Let me point out that MOST internet hits are junk.  They have no value and lead to naught.  This was the exception.

My photographer friend and  Mun Chau from Mun's Photos filmed the presentation for me.  It's pretty good if I do say so myself.

 

 

Frustrated Real Estate Buyers

In a Saturday Toronto Star recently, Susan Pigg writes about a woman, Melissa Hart, who began writing a blog three weeks ago about her frustratingly unsuccessful three year search for a home in Toronto.   I think it's called FML Listings ("the M nd L stands for My Life.  The F is...well, symbolic of  her frustration".)

Apparently, this blog has attracted a lot of readers, including fellow house buyers and even Realtors.  

There is some merit to her rants.  Yes, underpricing is annoying as hell and even verges on the unethical.  I've written about that often both here, and in the International Edition of the RE/MAX Times.   I totally agree with her on that.

However, I know from experience, and from working with buyers who have tried to stretch the experience out over a three or more period of time that if she wants to succeed, she'd best change a few things.  First of all,  she'd best change Realtors.  Smart and skilled Realtors will know underpricing without even driving by the property.  Their job is to help their client move on to properties they actually have a chance of buying.  

AND, she'd best look in the mirror.  Is she stuck on the notion that she thinks she can buy a $600,000.00 house for $500,000.00?  That's a pretty common beginning point for many buyers.   They begin with big expectations but scale them back when they learn more about the market and what their preapproved mortgage will buy.  This buying process occurs in car dealerships, appliance stores and so on.

Three years?  Still hasn't found anything?  Come on.  Give me a break.  Given she's now "three more years behind" the real estate value cycle, the likelihood of her buying is decreasing each day.

Effort to present a house for resale is noted by the customer

When a Seller takes the time and spends the money to present their house or condo in a favourable light, the customer notices and appreciates this.  In fact,  buyers will pay dearly for this as we've seen time and time again.  Isn't that what staging is all about?

There's a feeling client's get when they walk in a house that's listed for sale.  Does it feel like a good house or preferably maybe it feels like a GREAT house?  Or is it an ok house but comes with a sense that maybe something is just not right here?

It's difficult to identify the reasons but it's obvious when a house has been well cared for.  It's called pride of ownership and a wise buyer will identify the value in that and pay handsomely for it.  The same rule applies to used cars.

Sometimes I'll walk into a house and know immediately there is something amiss, as in "there's no love here".  There's a coldness or a blandness as in no sparkle.  Often this is a house being sold because a family is going through a nasty separation.  My first question to the listing agent is "are both husband and wife on the same page here and are both signatures required?"  I'm wary of offering on a house that is being used as a tool to force a separation agreement or some such thing.  This happens too often mostly because the listing agent hasn't done their job and qualified the sellers.

 

 

What's Going On?

If you're a service provider, tell your customer what they can expect when they hire you.  In fact, tell them often.  It's a simple thing but it does more to solidify relationships and inspires loyalty than anything else I can think of.

I've been trying to incorporate more of this in my day to day affairs and I've discovered that something else wonderful happens.  It makes me feel better too.  

When I first meet a new buyer, I obviously can't predict how long the process will take or what their dream house will look like but I can offer some ideas on what "might" happen.  They like that.  However, as the search progresses, the expectations change.  Therefore,  I have to revisit the part about what "might" happen next.  My clients like that.  I like that.  It helps. 

It's the same with Sellers.  It's not easy being the seller.  It's disruptive as hell.  My clients need to know that "the universe is unfolding as it was meant to unfold" and I, as their Realtor, am very much ok with that.  It's my way of saying over and over again that everything is under control, not to worry.  

I expect the same from my mechanic, my doctor, my stager, my window washer... all service providers I rely on.  Surely that's not too much to ask.

 

New Political Hero

One more thought about Karen Stintz, the TTC chair who defied the Ford Brothers and voted with her brain rather than her political future.

She describes here approach to politics as "day to day, issue by issue.  I've tried to make that my approach."

Does that seem like a fresh sweet smelling breeze that over-powers the stench usually associated with politics in the new millenium?

 

What Does City Council Have to do with Real Estate Values?

EVERYTHING!

This recent tsunami of reasonable debate at Toronto's City Hall is a breath of fresh air for everyone.  Our two mayors, Rob and Doug have been the face of our city for a year and perhaps that will now change.  Wouldn't that be something?

The vote the other day on the future of rapid transit in Toronto is a stunning event in terms of municipal politics.  My friend who works in the Executive level at City Hall tells me the energy at that meeting was nothing short of "electric".  That's notable because there's not much electricity on the council floor where long boring meetings are the norm.  I kind of wish I had been there.  

What it boils down to is the message politicians send to their constituents.  This applies at all three levels of government.  And that is, "we serve the interests of everyone, not just the special interest groups with the largest lobby budget".  

So, does all this have anything to do with real estate values?  Yes.  The better run our city is, the more desirable it is as  place to live and the more livable the streets are.  Simply put, the citizens are in a better mood if their political affairs are being taken care of.  

I salute Karen Stinrz for showing such courage.  I cannot imagine the knot in her stomach as she announced to the world that she was going to present this petition to the Mayor.  Wow.  That is some politician.  That is some leader.

New Video Released

This is "the first in a series of real estateisms designed to entertain and enlighten".    My friend and TV producer (HNIC) Tim Thompson produced this minute of video with my lovely wife Karen Laing ably acting as director.  Man, this was a lot harder to complete than I originally thought.  Lots of fun though.