The Importance of Getting The Price Right

Something that happens to real estate agents on a very regular basis is the issue of getting the price right on a new listing. Sellers want to get top dollar for their property, and so do we, but sometimes the "seller's price" is over the top and totally unrealistic. Especially in this slower market, it is very important to get their price in a marketable range that will encourage showings and offers.

Here's a story that happened in our brokerage recently that demonstrates the importance of getting the price right. The seller had a country property in a good, central location. The house was really nice with many updates and recent renovations.

We gave them an asking price of $ 450,000 about 18 months ago. They felt this was low, and decided to try and sell privately for $ 699,000. Later they listed with another broker at the same price without success. Well over a year passed in the process and they did reduce the price a bit, but nothing substantial.

In the end, after 18 months of the stress of trying to sell their property, they sold it for $ 415,000. I am sure everyone was disappointed in the end.

Nobody will ever know for sure, but we're pretty confident that they could have sold it for more than that with a year's less stress.

Any agent will tell you that they don't want to take overpriced listings. You can spend thousands of dollars advertising without a realistic chance of seeing a return on your time and financial investment.

Profile: Mike Milovick, Kitchener Office

Mike has been in the real estate industry since 2002 specializing in multi-residential, student housing, development land and property around the WLU area.

Mike has had a very successful real estate career thus far, winning a number of awards and recognitions including: Chairman’s Award, QSC Platinum Award and being a top office producer for the past 4 years.

Mike has dedicated his life to landlording in Waterloo. He is an advocate for Waterloo’s landlords at City Hall. Mike also lends support to 600 members of WRAMA (Waterloo Region Apartment Manager’s Association), where Mike is also Vice President, and takes pride in supporting his clients in enabling them to achieve their income property goals.

Along with being a successful Realtor, Mike has also worked in the property management industry and insurance rental replacement industry. Mike was also a proud member Canadian Armed Forces.

Mike’s many accomplishments include meeting and marrying his lovely wife, Jenny, and has three beautiful children, Michael Wilfred Jr., Maxwell Laurier and Madison Jennifer.

When Mike isn’t busy selling real estate he spends his free time with his family, cottaging, weight training, playing hockey and softball and is a season ticket holder for the Buffalo Bills.

Hats Off to the Phillies

I love baseball. I'm not apologizing. I love the Blue Jays. I Hate the Yankees. Always have, always will.

So, here's my point. Major League Baseball has not kept pace with the times in professional sport. Salary caps, drafting policies, and league rules still hugely favour the teams in large markets with more money.

So here we are are watching the almost new Devil Rays against the Phillies. Two great teams with a grand total of ONE World Championships in their storied pasts. It's a great story.

I think back to 1992 and 1993. It was truly a thrill to be there for the Blue Jays. I was at that Game 4 when Devon White made that great catch against the wall. It was a huge thrill to be part of those celebrations. I love Joe Carter. But, as thankful as I am, I think every fan in baseball deserves that thrill. I think today about those Philly fans with seasons tickets who have been there year in and year out cheering for their team. I've been there and I'm happy for them. High fives all around.

That's why I hate the Yankees. They flagrantly throw hugh balls of cash at old players expecting them to produce one more time for the historied Yanks. They're not good... they just have lots of money. I'm personally happy that their business plan seldom works.

So now it's been 15 years... I think it's getting close to our turn. What do you think? How soon can Pat Gillick return?

Longevity Milestones

It has come to my attention recently that a number of people in our company will be receiving Service Pins from our local real estate boards for their long and dedicated serice to the real estate industry. Congratulations to all.

30 Years: Murray Garlick, Cambridge office


25 Years: Jose Bairos, Cambridge office

25 Years: Frank Herold, Kitchener office



20 Years: Fred MacMaster, Cambridge Office


20 Years: Paul Dawson, Kitchener Office

20 Years: Dorinda Orser

You make us proud!

Russ Donnelly Retirement

Last Friday we held a retirement lunch for Russ Donnelly. He has decided to take it easy after 43 active years in real estate.

Russ came into the family business started by his father. At one time, they had offices in Cambridge, Kitchener, Waterloo, and Guelph. They had been an independent, and a franchisee with Gallery of Homes, and later with Coldwell Banker. Since September 1965, Russ has seen a lot of changes in the real estate business.

He is also a past president of the Real Estate Board of Cambridge.

Russ has been with our company for the past 7 years. We were always proud to have him part of our organization. I think Robin Hickey said it best at the luncheon. Russ hired her 23 years ago when she started in real estate and she felt he was very supportive at the beginning of her career.

We hope you enjoy your retirement, Russ.

Imprev Marketing Materials

We have recently signed an agreement with Imprev to give our agents access to some great marketing materials for your listings and your self promotion.

Imprev is an online service that allows you to create very professional presonal brochures, flyers, feature sheets, virtual tours, postcards, web commercials, e-newsletters, and much, much more.

If you haven't already joined in, you can check out their website and promotional video at imprev.com

Please see Goran or me for more information and pricing.

Prudential On Line Training

In case you missed it, I'd like to point out to you the online training that is available to Prudential agents. There are two types available:

Virtual Instructor Led are courses you take at a specific time with live instructors on the phone as you view the presentation online. You can take these courses anywhere, as you just need an internet connection and a phone to connect to the 800 number.
For example there is one scheduled for Thursday October 23rd at 11AM with the topic of "Selling By Style". It appears these course will be running once or twice a month. We will keep you informed on your monthly calendar and in this blog about what courses are coming up.

Web Base Training are courses you can take at any time and are designed mostly for newer agents. You don't need a telephone, only online access.
Some of the courses online are: Action Pack for Success modules in about 12 different sections, dealing all different sorts of prospecting. There's also a Profit Planning module for developing a business plan, and one on Power Listing Strategies.

I recommend you take some time to have a look at what's available . It's a great resource!

Here are the instructions on getting to the site:

1. Go to PREA Centre and log in.
2. Click on the link at bottom left to "Prudential University Learn Centre"
3. On the next page, click on the link "Learn Centre" word link.
4. At the bottom, click on "Web Based Training" or "Virtual Instructor Led" to view the courses.

Sears Home Centre Corporate Discounts

We are pleased to announce an affinity alliance for your your buyers and sellers with the Sears Home Centre at 130 Gateway Park Drive, Kitchener. All your clients are entitled to a 5% additional discount off any pricing in the store. This offer even applies to all items on sale.

The program requires that the customer have a Sears Discount Certificate which is available in our office. Sears will monitor the certificates redeemed and there will be gift card incentives for the agents referring the most clients.

If you have any questions, our contact person is Kristin Devlin. She can be reached at 519-242-5171 (cell) or 519-650-3993 (store).

Profile: Stacey Chaves, Cambridge Office

Stacey was born in British Columbia and moved to Cambridge with her family at a very young age. She has grown up in Cambridge along with her parents, 2 brothers and 1 sister.

Stacey and her husband Mark have a 2 year old daughter named Ally, they enjoy spending quality time together as a family whenever possible.

Stacey has had a lot experience working in the public field first as a secretary and then as a front end supervisor in a grocery store.

Stacey has successfully completed the Chris Leader course and has taken part in the Marshall Northcott training sessions.

When Stacey is not busy selling real estate, she enjoys sewing and cooking.

Catch the Spirit - Canadian Connection

Prudential Real Estate Canada is running an excellent training day in Toronto on Thursday, November 13th THe two speakers are Dirk Zeller, a renowned U.S speaker from Real Estate Champions, and Chris Leader (who many of you know) from Leader's Edge in Barrie. Of particular note, the afternoon session is eligible for three Continuing Education Credits.

There's a free lunch, courtesy of Prudential, a chance to network with Prudential agents from across Ontario, and an exhibit area set up with marketing materials and tools.

It will prove to be a great day... and it's free. There's a sign up sheet at the office. Deadline for sign-up is November 7th.

Selling Privately

I really don't know why anyone would consider selling their house privately. Seriously. There are many things in this world that I have done for myself to save money, but selling my own house would not be one of them. And, usually the seller doesn't save any money - the buyer does.

I don't do the maintenance on my car. I don't fix my own computer. Heck, I don't even wash and iron my own shirts. I hire professionals to do these things. People who have the skills, knowledge, experience, and the tools to do the job properly. That means there is very little inconvenience or headaches to me.

When I sit in the broker-manager's chair for a brokerage handling roughly 1500 transactions a year, I see some pretty strange things happen in transactions that would make your hair stand on end. Sometimes the buyers or sellers are not honest and mis-represent facts. Sometimes people change their minds when it's too late to change their mind. And, sometimes buyers have bad credit and are not qualified to buy a house and lie about it. It's a tough world out there, and if you're going to sell your property yourself, you better be as tough as the lowest common denominator.

As a buyer, what would possess you to buy a house privately? You don't have to pay the agent (the seller usually does). You don't have access to all the properties that are for sale (the agent does). And, you don't have the knowledge or experience to negotiate the deal. How do you know you're not paying too much? It makes no sense!

As a seller, hiring an agent makes perfect sense. They have access to all the information and market data to give you an accurate evaluation on your property. The agent gives you maximum exposure to the most buyers through other agents, the MLS system, the internet, print advertising, agent and public open houses, and more. And of course, a basic marketing fundamental is that maximum exposure brings you a higher price.

Of course, let's not overlook the annoyances of dealing direct with the other party. Making appointments, dealing with "no-shows", broken promises, security issues, mis-representations. Without an agent doing these things for you and acting as a go-between, your tolerance can wear a little thin.

Let's not forget that when you use an agent, you only pay for a successful sale on your terms. This is the ultimate in a customer guarantee. "If I don't produce, you don't have to pay me". If you use a private for sale marketing company (who sometimes try to make themselves look like an agent), they get paid when you buy their "package". They have absolutely no interest in whether your house sells or not. They get paid up front and then they're gone.

Sometimes you get what you pay for.

As I look around our offices, I see some pretty outstanding individuals who bend over backwards in the best interest of their clients. They work until 11 at night sometimes and often all day Saturday and Sunday. And at the end of the day, they have some pretty happy clients who would tell you in a flash that they were worth every penny they were paid. It makes me very proud to be associated with these people.

Important Upcoming Dates

Here's a refresher on some upcoming training and social dates. If you haven't already, you should mark them into your calendar

October 17 - Oktoberfest Lunch at Concordia Club 12:30 PM

October 24 - Retirement Lunch at Cambridge office for Russ Donnelly

November 7 - Sunshine Kids Mini -Golf at Cambridge Office

November 13 - Prudential Education Expo in Toronto

November 19 - Cambridge MLS Annual Meeting

December 12 - Annual Prudential Christmas Party at Knights of Columbus Hall in Cambridge

Sabine Nassar Profile (Kitchener Office)

In December 1976 Sabine left Germany to join her husband, who emigrated earlier in 1976, to start a new life.

A few months later, when she finally gained enough courage to speak English, Sabine found a job, of all things, with a German Freight Forwarder (nowadays this field is better know as international logistics). She started as a typist and over the next 13 years worked "her way up" to eventually get transferred from Toronto to Kitchener.

Sabine always called it "having the cake and eat it too".
In the meantime Sabine had 3 small children and the opportunity to leave the "big city" and come to K-W was the best thing that ever happend to her family.

Sabine spent another 17 years running the Kitchener office with her latest position being VP of Western Ontario.

With very mixed emotions Sabine resigned from her job in May 2007 and had her last day at work just before Christmas last year.

Since she was always interested in Real Estate (one of those people that always show up for an open house but never buys anything) Sabine decided to get her real estate licence. With the kids (now 23,25 and 27) out of the house Sabine knew she had to do something (mainly so she doesn't drive her husband crazy with more home improvement projects).

So here she is, thoroughly enjoying the training and the work environment.

Sabine is looking forward to working with all of us at Prudential.

Do Not Call List - Short Version Update

Most of you are aware that the Do Not Call List is being phased in at this time. It deeply affects you as a sales representative if you are making telephone solicitations for business.

If you are making calls, you will need to cross check the numbers you are calling with the two lists to ensure their number is not on the list. The first is the National Do Not Call list which we have puchased for the local area code. It is an excel spread sheet in numerical order that you can quickly check to see if a number is on the list. The second is a Prudential Grand Valley list that, if requested, we must add their names. If you are calling and someone asks that nobody from Prudential Grand Valley calls, then you must report this to you administrator and we will add the number to our company list.

So, in short, you must crosscheck both lists and add any people requesting to the company do not call list.

We will have a meeting in the next couple weeks to deal with the lists and questions. We'll talk about the logistics related to you accessing the lists as well.

You can read the document in detail at Realtorlink.

Even though people are calling in as we speak to be added to the list, the policy is not enforced until October 31st

Sunshine Kids Annual Mini Golf Tournament

We are presently organizing our 4th Annual Sunshine Kids Mini Golf Tournament. It will be held at the Cambridge office, 471 Hespeler Road, on Friday November 7th from 2 -6 PM. We are looking for sponsors ($ 100.00) and ticket sales ($ 20.00). It's a great event, and all proceeds go to Sunshine Kids. There's food and refreshments, door prizes, a silent auction, and a chance to connect with old friends. All this with a charitable tax receipt! Contact any Prudential agent or the office to book your ticket now.

September 2008 MLS Statistics

I have just arrived home from the annual Prudential Canadian National Brokers's Meeting, and had some interesting conversations with brokers across the country about their local markets. For sure, there are many area feeling an unstable market with all the U.S. news. When you look at our September numbers, our market seems to be doing OK. We didn't experience some of the big upswings like Calgary and Vancouver encountered, so maybe we will see a softer downturn as well.

Here are the September 2008 MLS monthly statistics from our two real estate boards:

	K-W This Month	K-W Last Year	Cambridge This Month	Cambridge Last Year
Avg. Sale Price	$ 255,700	$254,134	$247,981	$248,172
Percentage Change	+0.6%		No Change%
Properties Sold	527	473	262	221
New Listings/Sales Ratio	57.0%	60.8%	51.8%	53.9%
Properties For Sale Now	2953	2816	672	749

2008 Award Criteria

There had been some miscommunication about award criteria for this year. Just to settle the record, here are the requirements. All numbers are based on closed transactions during the calendar year.

Chairman's Circle - Diamond - $750,000 Residential or Commercial GCI or 150 Residential Units

Chairman's Circle - Platinum - $535,000 Residential or Commercial GCI or 100 Residential Units

Chairman's Circle - Gold - $260,000 Residential or Commercial GCI or 70 Residential Units

President's Circle - $180,000 Residential or Commercial GCI or 50 Residential Units

Leading Edge Society - $130,000 Residential or Commercial GCI or 35 Residential Units

Honour Society - $85,000 Residential or Commercial GCI or 25 Residential Units

A Sunshine Kids Thank You

We plug along day to day contributing and raising money for the Canadian Sunshine Kids. This thank you letter came to me via email recently. It is written by Ashley Dauke from Port Coquitlam, BC, who attended a Sunshine Kids event in New York City in July. It makes our fundraising efforts all worthwhile. Our mini-golf tournament is coming up on November 7th at the Cambridge office. This year's goal is $ 10,000!

Thank you Sunshine Kids
I want to tell you how much I appreciate the experience of New York. I had been looking forward to July 20 for months and my expectations were not disappointed. It's true what they say, New York really never sleeps. I can see why, it's so big and bright with so many things to see. Who wants to sleep?
The New York trip marked the end of my intensive treatment and the beginnings of normal life. It's a trip I'll always remember for changing the way I see the world.
From the bottom of my heart, Thank You
Ashley Dauke

J. D. Power Associates Award

Wow! We should stand Proud! Prudential Real Estate now ranks as "Highest in Satisfaction for Home Sellers Among National Full Service Real Estate Firms" in the J.D. Power and Associates 2008 Home Buyer/Seller Study. This is great news!

Upcoming RECO Update Courses

As most of you know, the K-W Board runs the RECO Update course every month in the board's downstairs classroom. If you wish to attend, you need to register through OREA, either online or via telephone.
Here are the upcoming dates:
September 17 (Ken Topping)
October 8 Commercial (Norair Yeretsian)
November 5 (David O'Gorman)
December 3 (Marg Gourlay)
January 7, 2009
February 4, 2009

August 2008 MLS Statistics

Here are the August 2008 MLS monthly statistics from our two real estate boards:

	K-W This Month	K-W Last Year	Cambridge This Month	Cambridge Last Year
Avg. Sale Price	$ 265,952	$246,828	$267,925	$240,564
Percentage Change	+7.7%		+11.3%
Properties Sold	466	595	204	260
New Listings/Sales Ratio	60.1%	81.7%	49.0%	61.2%
Properties For Sale Now	2864	2751	N/A	N/A

We'll Miss You, Ernie

This week we lost one of long time sales people, who has been a pretty key person in our organization. Ernie Shomphe has been with Prudential since we opened the Kitchener office in November, 1998. Anyone who knew Ernie, knew he represented all the core values of the Prudential family.

He was a very honest and hard working agent. Any buyers or sellers he worked with knew that. He always went "beyond the call" to look after his client's best interest. And Ernie was a true family man. He spent a lot of time with his family and was very proud of them all. Also, his loyalty and pride in being part of the Prudential team was well noticed. He was always there to help others when he could.

Ernie lost his battle with cancer this week, almost a year after he found out the bad news. It certainly has been a roller coaster for he and Iola over the past year. Our thoughts and prayers are with Iola and the rest of the family as they go through these tough times.

We're going to miss you, Ernie

New Canadian Sunshine Kids Website

There is a new website for the Canadian Sunshine Kids Foundation. There's lots of information about trips and fundraisers. There are even a couple picture from one of our mini-golf fundraisers. You can check it out at www.sunshinekidsfoundation.ca

Prudential Company Barbeque

Don't forget to sign up at the office for the Company Barbeque. It's being held on Saturday, September 6th. Bring the whole family. We've got games for the kids, and lots to eat. It's at the same place, the Sage Farm which is behind Whistle Bear Golf Club. (There's a map at the office).
Start time is 4 PM. Dinner is at 6.
See you there!

July 08 MLS Statistics

Here are the July 2008 MLS monthly statistics from our two real estate boards:

	K-W This Month	K-W Last Year	Cambridge This Month	Cambridge Last Year
Avg. Sale Price	$ 267,513	$247,767	$255,812	$241,585
Percentage Change	+8.0%		+5.8%
Properties Sold	657	655	255	298
New Listings/Sales Ratio	70.8%	80.4%	54.3%	70.5%
Properties For Sale Now	1941	1999	N/A	N/A

Do Not Call List

CREA has created the booklet “The National Do-Not-Call List” to provide more information to REALTORS® about how they will be affected when the list comes into effect on September 30, 2008. The booklet can be viewed on the DNCL Compliance section, posted in the Compliance Centre on www.realtorlink.ca. The information below can be found in the booklet.

Real estate brokers or representatives, making unsolicited telephone calls qualify as telemarketers. This doesn’t mean that REALTORS® cannot contact consumers in other legal ways, such as direct mail. It means that if the consumer, private sellers included, puts their name and telephone information on the National Do Not Call List, you cannot contact them at that number (phone or fax) to sell them a product or your services or in any way solicit business, unless:

the call is to a consumer who has an existing business relationship with your company, or
the call is to a business consumer.
An existing business relationship, such as one between a consumer and a real estate brokerage, is defined in three ways:

The consumer purchased or leased a product from the organization within the past 18 months;
The consumer had a written contract (such as a Listing Agreement) with the organization that expired within the past 18 months
The consumer had made an inquiry with the organization within the past six months (for example the consumer called for a listing presentation).
An individual can also specifically consent to be called by a certain organization, even if he or she is registered on the National DNCL.

CREA provides the example of an Open House and consent to be contacted.

The REALTOR® is hosting an open house. Mary and Bob Ford come in for the tour and sign the guest book. Does this mean that the REALTOR® can call the Fords to offer his services?

YES– if they signed the guest book or otherwise indicated their interest and intent in a business arrangement.

NO– if they signed the book but specifically asked not to be contacted. Then the REALTOR® would have to add the Fords to his corporate do-not-call list. (Under Canada’s Do-Not-Call legislation, all telemarketers must also maintain their own do not call lists– even if they are making calls that are exempt from the National DNCL rules).

Other tips

If a consumer makes the request to be placed on an internal do-not-call list, you must process that request immediately.
Be sure to disclose the purpose of your call and the company or individual you are representing right away. It’s a good idea to have a prepared script to work from.
The CRTC intends to launch a public awareness campaign to publicize the web address and telephone number for consumers and telemarketers to access once the National DNCL becomes operational.

June 2008 MLS Statistics

There's been plenty of doom and gloom about the real estate market in the media over the past few weeks. We acknowledge things are a bit slower, but certainly nothing as bad as some reports say. When you look at the June numbers, it certainly confirms this. The number of sales is down about 10% to last year's numbers but certainly not as bad as some would lead you to believe.
Here are the June 2008 MLS monthly statistics from our two real estate boards:

	K-W This Month	K-W Last Year	Cambridge This Month	Cambridge Last Year
Avg. Sale Price	$ 276,384	$255,323	$263,500	$252,724
Percentage Change	+8.2%		+4.2%
Properties Sold	706	761	277	311
New Listings/Sales Ratio	70.2%	77.6%	65.4%	66.5%
Properties For Sale Now	1938	2136	N/A	N/A

Changes to FINTRAC Legislation

As you may be aware, there has been recent changes to legislation related to FINTRAC and money laundering. There are some changes that we MUST make to conform with the legislation.

Please take come time to read the information. Everything you need to know is on the web at Realtorlink. http://www.realtorlink.ca/content/fintrac/

In a nutshell, we must follow the following rules:

1. We must report suspicious transactions. If you feel that your client may be breaking the law, it is incumbent upon you to report it.
2. We must report any cash deposits over $ 10,000. (Please be advised that our brokerage does not accept cash deposits over $ 10,000. If your client wishes to do so, you must inform the client that it is our policy that they must get a bank draft, money order, or certified cheque to replace the cash.
3. IMPORTANT CHANGE! We must see photo ID of our client and it must be kept on file. Common acceptable forms are birth certificate, passport, drivers licence, and SIN card. Ontario Health Cards are unacceptable. If attaining a photocopy of this document is not convenient, then you must view the document and fill out the attached form. This must be done for all parties to the transaction (IE each spouse must fill one out)
Please note that the admin staff will be “reminding” you if you do not submit the photocopy or applicable form.

These changes become effective on June 23rd, so you should be starting this practice immediately.

Please take the time to read the issues online. If you have any questions, please contact Goran or myself.

We will be making some changes to the company policy manual to reflect these changes.

May 2008 MLS Statistics

We're back on track! Here are the May 2008 MLS monthly statistics from our two real estate boards:

	K-W This Month	K-W Last Year	Cambridge This Month	Cambridge Last Year
Avg. Sale Price	$ 270,069	$245,138	$256,852	$238,891
Percentage Change	+10.2%		+8.4%
Properties Sold	625	780	259	344
New Listings/Sales Ratio	60.8%	73.8%	45.4%	59.8%
Properties For Sale Now	2010	2154	N/A	N/A

Better Late Than Never March & April Stats

I have set a new record that I am ashamed of. Six weeks without a post. Inexcusable! But I DO have an excuse.... The Cambridge Board changed to the Filogix MLS system and it has taken them this long to release the statistics under the new software. So, I apologize, but the problem is now resolved. Here are the statistics for March and April. I expect to have May stats up by the end of the week.
March 2008:

	K-W This Month	K-W Last Year	Cambridge This Month	Cambridge Last Year
Avg. Sale Price	$ 253,815	$247,417	$253,094	$244,465
Percentage Change	+2.6%		+3.5%
Properties Sold	606	616	236	293
New Listings/Sales Ratio	77.0%	65.1%	54.9%	60.5%
Properties For Sale Now	1733	2081	N/A	N/A

April 2008 Statistics

	K-W This Month	K-W Last Year	Cambridge This Month	Cambridge Last Year
Avg. Sale Price	$ 261,865	$247,083	$266,358	$236,331
Percentage Change	+6.0%		+12.7%
Properties Sold	691	712	254	307
New Listings/Sales Ratio	66.1%	67.3%	48.6%	61.2%
Properties For Sale Now	1850	2176	N/A	N/A