Questions that are important to the sales process-
How do you like to be communicated with?
- telephone
- text
- email
- visit
When will you be moving?
Why are you moving?
When was the last time you moved?
Why are you moving?
What is your current lifestyle? What do you do Socially?
Do you love or participate in sports, arts, religious activities, etc.
If you could have one thing in your new home that is amazing, what would it be?
What is more important to you getting the most for your home or selling it quickly?
What was your past experience with a Realtor like?
What type of school does your child attend?
Do you require Financing?
Are you pre approved for financing? How much?
Use. always, open ended questions. in other words, questions that require an answer other than Yes and No!
Monday, April 14, 2014
Marketing To Generation X and Generation i
Who says we are all the same?
With each generation comes a new and vibrant personality. No longer is multigenerational marketing the most effective way to market to your clients. Each generation has its own method of communicating and must be addressed to suit the unique way they wish to be addressed.
Traditionalists like to read the newspaper. Today their newspaper is the internet as the "Greatest Generation" tackle contemporary media to address their need for information. They still enjoy communication by mail and telephone. However to cross the generational gap, internet communication is now an accepted manner to talk to one another.
Baby Boomers, born from 1946 to 1964 are influential due to their sheer size today. Their community is an important aspect of their existence. They, like the Traditionalist love to talk real estate. They love to own real estate. They love to collect real estate! Vacation properties, time shares, second homes, cottages and other investment properties are their love.
Baby Boomers love to talk. They talk on the phone. They gab on the cell phone. They even talk in long wordy emails and blogs.
Generation X is the Latch Key Generation born between 1965 and 1976. in this short period of time society created an anomaly to their parents, kids who had to help themselves as their parent went to work. These are my kids, your kids.
This generation lived in a time when diverse was rampant and single parent homes were the norm. Thus they have delayed marrying, having children as they seek a real live-work balance. Unlike their parents they will not work until the job is done, they work along with the job.
Their careers will likely range from place to place ten or twelve times as they search for a better more fulfilling existence. Personal time is much more important that work time to Gen X.
Technology was a fact of life for Gen X. they were born into the internet, gaming on line, email and more importantly texting. From this generation came much of the techno communication stuff we use today such as Facebook and Myspace.
While Boomers and Traditionalists respond to Brand marketing. Generation X and Y prefer lifestyle marketing. Gen X does not respond to fear based marketing as seen on TV infomercials.
"Buy today before it is too late!" Doomsday marking will not work here!
They are independent, so micromanaging and indirect communication will undermine your relationship with Gen X.
Generation Y, born from 1977 to 1994 is a whole different environment. This is the most educated generation ever. They are confident, fun, optimistic and collaborative. interestingly, they know how to get the correct answer but may not know how to calculate it. "Google it", they will say!
They love to do the right thing.
They have been told they are "Special". Remember the soccer leagues where everyone, even the losers got trophies! They were Generation Y! They have a unique sense of risk and consequences.
Again they do not respond well the brand marketing. They are motivated with money and success and are impatient and do not want to "pay their dues" to achieve success.
Gen Y want it now. Boomers believe you have to earn privileges, Gen Y want privilege now.
This trend has contributed to an important fact we are seeing among first time home buyers. Most young people are electing to stay at home or to rent in desirable areas. Since Gen Y is motivated highly by money, their first real estate purchase may be an investment property rather than a personal residence. In fact, aggressive Gen Y's are buying property in their teens and early twenties if they can get financing.
Gen Y love collaboration and lean on their peer group for advice. "Group think" pays volumes for them. It is imperative to not be the "expert" with Gen Y but to be a helper or influencer. They appreciate the knowledge and will make their own right decision. Let Gen Y navigate through their own direction towards the purchase.
Unlike Gen X who will confront on a moments notice, Gen Y is not confrontational. That is why texting is popular with this generation. They then have time to consider that response.
Generation X and Y are changing how we market. Less time is being spent by these generations at a computer and more is being spent on mobile. They need a condensed version of everything.
Gen Y are interactive. They co create and cooperate on projects. Thus a blog is imperative and must be included in your website. Social networking is a must as you develop trust socially and network collaboratively. Any social must be real and interactive to develop into trust and friendship. But Pinetrest is supplanting Facebook as these young entrepreneurs love picture statements rather than word essays.
On line activity is a must for GEN X and Y, but many like to remain lone wolf surfers, anonymous and social at the same time. Some of he most recent social sites show this character where you can identify single individuals that are close by without fear of retribution.
You must communicate their way. Text messaging is a must. They use a telephone only as a last resort.
So know the newest generations. They are our buyers and will soon be the dominant sellers on real estate as well.
With each generation comes a new and vibrant personality. No longer is multigenerational marketing the most effective way to market to your clients. Each generation has its own method of communicating and must be addressed to suit the unique way they wish to be addressed.
Traditionalists like to read the newspaper. Today their newspaper is the internet as the "Greatest Generation" tackle contemporary media to address their need for information. They still enjoy communication by mail and telephone. However to cross the generational gap, internet communication is now an accepted manner to talk to one another.
Baby Boomers, born from 1946 to 1964 are influential due to their sheer size today. Their community is an important aspect of their existence. They, like the Traditionalist love to talk real estate. They love to own real estate. They love to collect real estate! Vacation properties, time shares, second homes, cottages and other investment properties are their love.
Baby Boomers love to talk. They talk on the phone. They gab on the cell phone. They even talk in long wordy emails and blogs.
Generation X is the Latch Key Generation born between 1965 and 1976. in this short period of time society created an anomaly to their parents, kids who had to help themselves as their parent went to work. These are my kids, your kids.
This generation lived in a time when diverse was rampant and single parent homes were the norm. Thus they have delayed marrying, having children as they seek a real live-work balance. Unlike their parents they will not work until the job is done, they work along with the job.
Their careers will likely range from place to place ten or twelve times as they search for a better more fulfilling existence. Personal time is much more important that work time to Gen X.
Technology was a fact of life for Gen X. they were born into the internet, gaming on line, email and more importantly texting. From this generation came much of the techno communication stuff we use today such as Facebook and Myspace.
While Boomers and Traditionalists respond to Brand marketing. Generation X and Y prefer lifestyle marketing. Gen X does not respond to fear based marketing as seen on TV infomercials.
"Buy today before it is too late!" Doomsday marking will not work here!
They are independent, so micromanaging and indirect communication will undermine your relationship with Gen X.
Generation Y, born from 1977 to 1994 is a whole different environment. This is the most educated generation ever. They are confident, fun, optimistic and collaborative. interestingly, they know how to get the correct answer but may not know how to calculate it. "Google it", they will say!
They love to do the right thing.
They have been told they are "Special". Remember the soccer leagues where everyone, even the losers got trophies! They were Generation Y! They have a unique sense of risk and consequences.
Again they do not respond well the brand marketing. They are motivated with money and success and are impatient and do not want to "pay their dues" to achieve success.
Gen Y want it now. Boomers believe you have to earn privileges, Gen Y want privilege now.
This trend has contributed to an important fact we are seeing among first time home buyers. Most young people are electing to stay at home or to rent in desirable areas. Since Gen Y is motivated highly by money, their first real estate purchase may be an investment property rather than a personal residence. In fact, aggressive Gen Y's are buying property in their teens and early twenties if they can get financing.
Gen Y love collaboration and lean on their peer group for advice. "Group think" pays volumes for them. It is imperative to not be the "expert" with Gen Y but to be a helper or influencer. They appreciate the knowledge and will make their own right decision. Let Gen Y navigate through their own direction towards the purchase.
Unlike Gen X who will confront on a moments notice, Gen Y is not confrontational. That is why texting is popular with this generation. They then have time to consider that response.
Generation X and Y are changing how we market. Less time is being spent by these generations at a computer and more is being spent on mobile. They need a condensed version of everything.
Gen Y are interactive. They co create and cooperate on projects. Thus a blog is imperative and must be included in your website. Social networking is a must as you develop trust socially and network collaboratively. Any social must be real and interactive to develop into trust and friendship. But Pinetrest is supplanting Facebook as these young entrepreneurs love picture statements rather than word essays.
On line activity is a must for GEN X and Y, but many like to remain lone wolf surfers, anonymous and social at the same time. Some of he most recent social sites show this character where you can identify single individuals that are close by without fear of retribution.
You must communicate their way. Text messaging is a must. They use a telephone only as a last resort.
So know the newest generations. They are our buyers and will soon be the dominant sellers on real estate as well.
Monday, April 7, 2014
What CMHC increase really means
By Mark Weisleder, Lawyer
Also found in the Toronto Star
CMHC announced that it is raising their rates on mortgage insurance effective May 1, 2014, by an average of 15 per cent. Although this is not good news for homebuyers, it does not mean that the sky is falling either. Here's why:
If you are buying a home and have less than 20 per cent for the down payment, you need to obtain mortgage insurance, either through CMHC or a private insurance company such as Genworth Canada or Central Guaranty. The costs of the insurance are typically added to your mortgage and paid out over the 25 year amortized term.
The reason for mortgage insurance is that banks would likely not lend money to people who for example, only had saved 5 per cent for the down payment, unless the mortgage was insured. CMHC essentially guarantees the loan to the bank so that if the borrower defaults and the property is sold at a loss, CMHC pays the difference. CMHC claims that they need to raise the premiums so that they have more capital reserves in case more consumers default on their mortgages in the future.
For example, if you have a 5% down payment today and you wish to borrow $300,000, the cost for the mortgage insurance is 2.75% or $8,250. You do not pay for this up front. Instead, it gets added to your mortgage debt so you would borrow a total of $308,250 to net $300,000. Under the new rules, the rate would increase to 3.15%, or $9,410, so you would borrow a total of $309,410 to net the same $300,000.
If you took a 5 year mortgage at 3.49% interest today, your monthly payment would rise from $1,537 per month, to $1,543. This is an increase of $6 per month.
Some say that this could now make a home unaffordable for many first time buyers. I disagree. While no one likes any increase in costs, we are still in a historic period of extremely low interest rates. Compare this to 1990, when interest rates were 12 per cent. The same mortgage would cost you $3,193 per month. In 2008, when the interest rate was 7 per cent, the payment would have been $2,167 per month.
It seems that every day someone else comes out with a prediction on the future direction of house prices in Canada. For every bank economist who says that we will still see stable growth over the next few years, there are others who predict a soft landing, with perhaps a price correction of 2 to 3 per cent. And then others predict that we are headed for a major price crash of 20 per cent over the next 5 years. All I know is that we have seen a period of steady growth in the Canadian real estate market for the past 14 years, despite many earlier predictions of crashes. Canada remains one of the most stable places in the world to live and raise a family.
Buyers, the main message is that you do not have to rush out and buy a home to beat the May 1, 2014 date when the mortgage insurance rates go up. It is more important to just make sure you can afford the home you are interested in and that you properly inspect any home before you buy it.
Click here to read the article:
How to protect yourself in a bidding war
By Mark Weisleder, Lawyer
Also Found in the Toronto Star
The real estate markets are going a little crazy in Toronto and Vancouver, with out of control bidding wars, primarily for detached homes under 1 million dollars. Experts say it is because there is not enough supply. In some cases, over 20 offers are received and the successful buyers are paying sometimes tens or hundreds of thousands of dollars over the asking price. What's worse, many buyers are putting offers in without any conditions whatsoever, hoping this will sway the seller to accept their offer.
Buyers, you can still be protected in this scenario. Here's how:
Buyers should understand that in this environment, you are likely to lose up to 5 times before you win a bidding war. Still, it is important to remember that even if you make a bid without a condition, the home must be pre-inspected by a professional home inspector. This can get expensive, since the average home inspection report costs between $350 - $550, depending on the size of the home. As such, you may pay up to $2,500 in home inspection fees before you get an accepted offer. In my opinion, when buying a million dollar property, this is a worthwhile investment. I have heard too many stories of buyers who buy without an inspection, only to discover major problems after closing.
Before you get involved in this process, meet with a few different home inspectors to get an idea what they look for when inspecting a home. Then try to make a deal that if they end up doing multiple inspections for you, the costs will reduce on a per inspection basis. The main things to watch for are the age of the furnace, roof, water penetration issues and the electrical wiring. The inspector will also look for cracks, slopes in the floors and doors that do not close properly, which all could point to potential foundation issues.
I would also seriously consider backing out when there are more than 5 bidders on a home. You will likely have to seriously overpay to get the home, based on the irrationality of the other bidders. Even if you win, there may be problems with financing your purchase. Just because you may have qualified for a million dollar home, if your lender figures you paid too much, you will not get the loan you expected, which may result in your not being able to close your deal.
Some sellers have their own inspection done and make the report available to buyers. It is dangerous for a buyer to rely on this and not conduct their own inspection. These seller reports usually come with a disclaimer that they are for information purposes only and not a warranty so you won't be able to sue anyone after closing if the information turns out wrong, unless you can prove that the seller actively concealed major defects without telling you.
Foreigners continue to love Canadian real estate as it is seen as a safe haven. With the recent fall of the Canadian dollar, Canadian real estate just got 10 per cent cheaper for foreign investors. These people primarily buy condominiums, so don't expect a crash in the condominium market either.
When you are looking for a home, even at these prices, make sure you are close to public transit, and have nice amenities around you. You are not a stock day trader when you buy a home and then sell it shortly afterwards for a quick profit. If you are buying for the long term and can afford the payments, you do not have to worry about any future changes in the market or in interest rates.
Even when those around you are going crazy, be prepared and you can be successful, even in a bidding war.
Click here to read the article:
Protect your rental investment with a professional property manager
By Mark Weisleder, Lawyer
also found in Toronto Star
also found in Toronto Star
More and more Canadians are buying rental residential real estate for investment purposes. These properties offer in most cases, stable income that pays almost all expenses, with a real estate asset that will typically appreciate in value in the long term. However, there are many pitfalls with becoming a first time landlord. The good news is that with the assistance of a professional property manager, you can be protected and have peace of mind that your investment will be secure for the long term.
Here's why:
Tenants are properly screened
One of the toughest parts of owning a rental property is properly screening tenants in advance. If a mistake is made and the tenant stops paying rent and uses the system to delay, the owner will be faced with unpaid mortgage and other bills that could threaten their ownership. A property manager knows what information to look for and what questions to ask before renting out your unit, to assure that this does not occur. Problem tenants typically stay away when they see that a professional manager is reviewing all applications.
Rents are collected in a timely manner
Property managers generally have offices where it is easy for tenants to pay the rent, if they cannot pay by post-dated cheques or pre-authorized payments. You do not have to arrange to meet with the tenants at odd hours to collect rents. If rents are late, the property manager will likely start eviction proceedings to make sure that tenants get the message and pay the rent on time.
Repairs and Maintenance are attended to promptly
Do you really want a call at 11 pm that the furnace just broke down? With a property manager, all problems, 24/7, are directed to the property manager office. The property manager will have a list of approved contractors who can complete any repairs in a timely and cost-efficient manner, to keep both the landlord and the tenant happy. The property manager will also conduct routine maintenance checks to make sure that furnace filters, eavestroughs are cleaned in a timely manner, so that problems do not arise in the future. Sharon Golberg, President of Dash Property Management, www.dashpropertymanagement.com, which specializes in condominium properties downtown, tells me that his firm will also conduct property visits every three to six months to make sure that the tenant is properly looking after the unit. If the place is a mess, follow up visits are scheduled to make sure that the tenant properly looks after their own obligations.
All income and expense statements available online
Property Managers will typically collect all rents and pay some bills for the owner, usually property taxes and insurance. Most management companies have their own insurance policies that offer better rates and coverages than what an individual owner can negotiate in the market. The manager can then add the owner as an additional insured on the policy, making sure you have all the required coverage should anything happen. They will also ensure that the tenant takes out proper contents and liability coverage to protect the tenant as well. Landlords then have access on-line to these statements, which can be easily printed and given to their accountants for income tax preparation.
Managers believe in relationships
Managers are not exclusively on the landlord's side. If the tenants are happy, they look after the property better. That is why the main goal of property managers is to solve problems quickly, so both landlords and tenants are happy long term.
The cost is very reasonable
Brandon Sage, of Landlord Property & Rental Management Inc., www.landlord.net, tells me that for a little over $100 a month, an owner can enjoy the benefits of a professional manager. As Brandon says, if your time is worth at least $30 an hour, then for 4 hours each month, you can have peace of mind. Sharon Goldberg adds that for most investors, you do not think twice about trusting your stock portfolio to a professional manager. Why would you not do the same with your real estate properties.
It is not easy being a landlord. Using a professional manager will give you peace of mind and a safe investment over the long term.
Tenants can legally pay year's rent up front
By Mark Weisleder, Lawyer
Also found in the Toronto Star
A recent decision of the Ontario Superior Court should have a major impact on lease negotiations between landlords and tenants in Ontario. This could assist credit challenged tenants and tenants with pets from obtaining approval to their rental applications.
Here's what happened:
Alison Corvers agreed to rent a home from Tanveer Bumbi at 969 Mississauga Heights Dr. in Mississauga Ontario from May 1, 2013 to April 30, 2014 for $7,500 per month. Bumbi initially refused Corvers' rental application as a result of the fact that Corvers was from the UK, working in Ontario and was on a visitor's visa and Bumbi was concerned as to whether she would maintain the payments. Corvers then paid one years' rent in advance, being $90,000 to demonstrate her good faith. Bumbia accepted this. Corvers also paid a security deposit of $7,500 up front to cover potential damages to the unit.
The problem is that under Ontario's Residential Tenancies Act, a landlord cannot request more than first and last month's rent before a tenant moves into the property. The Act also states that anything in a lease that violates the Act is void. As such, after moving in, Corvers brought an application to court to pay the extra months' rent and the security deposit back to her, as she claimed that this was all demanded by the landlord. In an original decision dated October 7, 2013, Judge Kofi Barnes of the Superior Court of Ontario looked at a text sent by the tenant's real estate agent to the landlord's agent that said "Allison will pay 12 month's rent up front." Based on that, he decided that since the tenant offered the money up-front, it was legal. However, since the security deposit was not offered by the tenant, this amount had to be paid back.
The case was appealed and in a decision dated February 12, 2014, Superior Court judge Frank Marrocco agreed with Justice Barnes and explained that while a landlord could not "require" a tenant to pay more than first and last month's rent as a condition of the tenancy, if the tenant "offered" to pay more money in advance and the landlord accepted the payment, then it would be legal. In addition, the court held that interest on the entire prepayment of rent had to be paid by the landlord, in accordance with the rate prescribed under the Act, which was 2.5% in 2013 and .8% in 2014.
Lauren Sigal, a Toronto lawyer at Macdonald Sager Manis LLP who acted for the landlord on the case, tells me that both judges relied on a prior decision in 2009 of Royal Bank v Mcpherson in support of this position. In the Mcpherson case, the tenant prepaid a years' rent of $24,000 to the landlord and then the landlord lost the property to the bank after defaulting on his mortgage. The tenant said he did not owe any rent as he had prepaid it for a year. The bank argued that since the payment was illegal, it should not be binding. The court disagreed, and said that the bank must step into the shoes of the landlord and be bound by the prepayment. It would be unfair to penalize the tenant by not recognizing the prepayment.
As a result of the Mcpherson case, lenders who sell a rental property after an owner defaults will typically state that the buyer accepts any tenancy arrangement. A buyer in this situation must do due diligence in advance to try and verify what payments were made by the tenant to the prior landlord so that they are not faced with a similar situation where the tenant has prepaid rent to someone else and now they are stuck with it.
Here are the lessons to be learned from these cases:
- Landlords cannot advertise that they will require more than first and last month's rent in advance of the tenant moving in. This includes any security deposit.
- If the tenant offers to pay extra money up front, make sure that it is clear that the offer is coming from the tenant. This could include a deposit to cover any damages or clean the unit when the tenant wants to bring a pet.
- Tenants need to keep a receipt for the payment as proof that the amount was paid, in case it is ever challenged later by anyone.
Click here to read the article:
Be prepared when applying for any government tax rebate
by Mark Weiseleder, Lawyer.
Also found in the Toronto Star April, 2014
New home buyers and owners renovating their own homes continue to be confused about the GST/HST rebate.
There are different rules when you are moving into the home as your primary residence,
when you are renovating an existing home, or whether you intend to rent your new home as an investment property.
When you buy a new home or condominium and plan to make it your primary residence, the rebate is usually
included in the price. So if you paid $400,000, the real price including the tax is closer to $427,000.
In your agreement with the builder, you likely agreed to transfer your rebate to him,
bringing your price down to $400,000. If you do not move in on closing, you will have to pay the full amount.
If you decide to rent out your new home, you are still eligible for the HST rebate, under a different program,
called the HST new rental residential rebate.
If you substantially renovated your own home and paid the contractors yourself,
you may also be entitled to up to $16,000 in HST rebates. In all cases, you have up to two years from closing
your new home or completing your renovations to apply.
Figuring out what to do can be tough, says Michael Beallor of Rebate4U,
www.rebate4u.com a company that has helps homeowners collect the HST rebate.
He says it can be difficult for the average person to find their way through the Canada Revenue Agency and d
eliver the documents to support any claim for the HST rebate. Beallor says he's helped owners get $6 million in tax rebates. The company does not charge a fee up front, but collects when the rebate is paid. Another company that provide the same service is Custom Business Solutions at www.rentalrebate.ca. In addition, lawyers and accountants
also provide this service to their clients, as I do in my own law practice.
Some buyers intend to move in when they buy a condominium, but when it is ready years later, their circumstances have changed and so they sell. In these cases, the CRA typically says the buyers are no longer entitled to the HST rebate.
But there is a way to fight that, says Toronto author and tax lawyer David Sherman.
Sherman says if you can show that you intended to make the house or condo your primary residence,
but that circumstances changed, requiring you to sell, then you may be able to fight a reassessment.
You may have been relocated for work, there may have been a death in the family,
or a child may have intended to use the unit for university but then was accepted to a university out of town.
What is very important is that you have the right documents to support your claim when dealing with
the Canada Revenue Agency. You may need advice from a lawyer or accountant.
Speaking of rebates, my column of Feb. 28 was in part about first-time buyer rebates related
to the Ontario Land Transfer Tax. Scott Blodgett with the Ministry of Finance,
clarified an example used in the column which referred to a situation where a couple marry and buy a house.
One spouse has already claimed the rebate but sold the home before they got married and one
has never owned a house. Blodgett says the spouse who has never owned a home
can still claim 100 per cent of the land transfer tax rebate, even if they do
not take 100 per cent ownership of the property.
This also applies to the Toronto Land transfer Tax rebate.
If anyone has overpaid land transfer taxes, you have eighteen months to apply to the Ministry of Finance
for an overpayment.
Be prepared when applying for any tax rebate. Click here to read the article:
Friday, April 4, 2014
The Definitive Guide to Marketing Your Business Online
What a great on line book on optimizing your web strategy. it is a quick read wand well thought out. Take a look today to develop a winning social media strategy.
The Definitive Guide Link
The Definitive Guide Link
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