Real Estate Leads For Realtors  

Because real estate prices have dropped quite a bit, the potential commissions that real estate agents and brokers could earn have also dropped. But the drop in commissions can be more than offset by the amount of properties that can be sold. And getting quality real estate leads is one of the keys to making this a reality for real estate professionals. This is because there are so many more properties on the market now than there were before the bubble burst.

The rise in the number of homeowners who are underwater on their mortgages has increased so much that a very large number of them have decided that they cannot afford to stay in their homes. They would rather sell their home and buy a comparable home for a much lower price, and take the loss so that they can improve their cash flow situation by having a lower mortgage payment each month. And since there is no shortage of properties to buy, these people had no problem finding a suitable home for a good price

And another result of the rise in available properties is that more and more people are becoming first-time homeowners. Since prices on homes are falling, more and more people are able to afford a home for the same amount they are currently paying in rent. So the logical choice for these people is to buy a house rather than continuing to rent.

These factors all lead to one thing – a higher need for real estate agents to help the buying and selling of all of these properties. Therefore, even though prices have fallen, the quantity of available properties, buyers, and sellers has raised which more than makes up for the lower prices in terms of how much a given real estate agent could make in the current real estate market. And as we all know, the more clients a real estate agent has, the more properties they’ll sell and the more money they’ll make.

The problem comes in when a real estate agent has already gone through their current client list. The best way for them to get more clients is to somehow obtain more real estate leads. Not only do they need more leads, they need high quality leads if they are going to be successful in converting a high number of them into clients who actually follow through on buying and/or selling one or more properties.

So how can you get more real estate leads? There are of course many different ways. These include buying them from an agency that offers them, advertising, subscribing to lead generation websites, developing and keeping current your own real estate website that draws potential

clients to it, and best of all by getting them through your own network. There are undoubtedly other ways of generating real estate leads as well, but these are the most common methods – all of which have proven to work to a certain degree.

One of the easiest ways to get real estate leads is by purchasing them. There are companies whose sole purpose is to find people who want to buy or sell a property. They then sell this information to people who are willing to pay for it. So if you are a real estate agent looking for real estate leads and either don’t have the time to find your own, or simply don’t want to, then this may be a good option for you.

There are two different major ways to do this. You can purchase the real estate leads from a company as a set of data that you will get in the form of a list or spreadsheet. Then you will need to start sifting through them and using the data available to qualify and categorize them yourself. And after that, it’s time to start making calls to find out they are valid leads or not.

The other way of purchasing real estate leads is by subscribing to a real estate lead generator website that will send you much smaller lists of leads on a regular basis. This can be nice because the information is likely to be much more current than buying a single very large list of leads. But this also means that there are fewer to work with so it doesn’t give you as much freedom in terms of choosing who to contact first.

Purchasing real estate leads or subscribing to a lead generation website can also be expensive. This can be a very bad thing since the whole intent of buying leads is to find clients, sell properties, and make commissions, if the leads that you buy don’t turn into commissions. In that case, not only did you not sell any properties (or many properties), but you wasted money on worthless information, and you wasted time contacting worthless leads when you could have been working on finding good real estate leads instead.

Another way to generate real estate leads is by advertising. If you are a real estate agent, broker, or business person, advertising your services may be a good way to generate real estate leads. This type of lead generation is great because rather than you doing the work to find people who want to buy or sell a property, the tables are turned and they come looking for you instead.

In addition to having people try to find you instead of you trying to find them, there is another benefit to advertising to generate real estate leads. The people who are trying to find you are already definitely interested in buying or selling a property. This means that you don’t have to worry about whether they are going to turn out to be qualified leads or not, because they definitely will be.

A similar way to generate by advertising which can be even more effective than simply advertising on a billboard or in the paper is by setting up your own real estate website. Websites are surprisingly inexpensive to have hosted, and having one developed for you doesn’t have to be expensive either. And if you learn the basics of website development, you’ll be able to maintain it by yourself after it’s been set up so that you can always keep it current.

The reasons to keep your website current cannot be understated. First, you have to keep it updated with the properties you are trying to sell so that the people who visit your website will have something to look at – and since this list of properties will be changing frequently as your client list grows and changes, you’ll need to change your website often to incorporate the new properties and eliminate the ones that are no longer available.

A second reason for keeping your website updated on a regular basis your page rank will grow higher. Search engines use a number of factors to determine how relevant they are to certain keywords, and where to display them in a list of search results. And one of the biggest things that moves a website toward the top of the list is it’s page rank, which is greatly affected by how active and how current the website is. So the more often you update your website, the higher its page rank will be, the higher it’ll show up in search results related to real estate keywords, and the more visitors you’ll get to your site.

Once you get visitors to your site, you’ll be getting the exposure you want to potential clients for free. They can stay on your site for as long as they want to and look at as few or as many properties as they want to. And you don’t have to do anything in order to help them. In fact there could be thousands of people all on your website at the same time. That is something that you would not likely ever have the opportunity to do in person. This phenomenon is what is known as leverage, and leverage is what can turn a small business into a fortune 500 business in short order when managed correctly.

The best way to do real estate lead generation also happens to be one of the most difficult – at least in the beginning. The method of finding leads is by building a very large network, and using it. This is one of the best ways to get leads because it is one of the most surprisingly effective ways. But unfortunately, it’s also one of the more difficult ways to start, and takes a while to yield significant results.

The first thing you’ll need to do is to start building your network. And it’s not that you just need to start building it, you need to intentionally focus on building your network each end every day, no matter where you are or who you’re talking to. This is because for most people, networking does not come naturally.

If you are like most people, you are probably somewhat shy and don’t make it a point to intentionally meet and talk to new people on a regular basis. But if you want to build a network, you’ll have to do exactly that. This is something that can come as a challenge to say the least, both emotionally and technically, but it is well worth the effort in the long run.

It can be emotionally difficult because a large part of building a large network is dealing with rejection. And if you want to build a large network quickly, you’ll have to deal with a lot of rejection each and every day. Too many people, being rejected is taken personally and it ends up wearing them down so that they eventually give up before they gain the benefits that building a large network provides. But if you can learn how to not take rejection personally, you’ll succeed where so many others have given up and failed as a result.

And networking to generate real estate leads can be done almost anywhere. When you need to put some gas in your car, park on the other side of the pump from someone who’s already there and try to strike up a conversation where you’ll be able to tell them that you’re in the real estate business and can help them or anyone else they know who may be looking to buy or sell. And if you’re really serious about it, you may want to only get $10 or some other small amount of gas at a time so that you’ll need to go to the gas station more often and have more opportunities to network.

You can also build your network by meeting new people at any other place. You could talk to someone at the grocery store, library, church, waiting in line at the bank, or anywhere you are around other people for more than a few minutes at a time and starting a conversation wouldn’t be too awkward. It can be done anywhere, with just about anyone, at almost any time. And the more dedicated you are to it, the faster you’ll be able to grow your network and the better off you’ll be in the long run.

Some of the best ways to network are by talking to the people you already know. These are people who are already in your network, and you can use them to help you grow your network even larger. The most obvious way is to simply ask them if they are interested in buying or selling a property in the near future, and to keep you in mind if they are.

But another way to help you grow your network is to ask them who they know that may be interested in buying or selling a property. You are basically asking them for real estate leads using different words. You could ask them for the names and numbers of people who they know who may be interested in buying or selling a property, or you could ask them to give your contact information to the people they have in mind when you ask them that question.

What is a Condominium Status Certificate?

In the province of Ontario, a status certificate is a report on the current state of a condominium corporation. The status certificate is prepared by the Board of Directors of the condo, and it provides a financial summary of the well-being of the building and information on those who run it.

When buying a resale condo, it’s extremely important you obtain a copy of, and carefully review, the status certificate before being locked into your purchase.

Typically, a status certificate is part of a package that also includes the condominium declaration (outlining the building’s by-laws, rules and regulations), a copy of the insurance certificate, financial statements and a summary of the most recent reserve fund study.

Many offers on resale condominiums are conditional upon the review of a status certificate package by the buyer and his or her lawyer.  This clause is not part of the standard agreement, however, and should be added to any condo purchase offer by your real estate agent .

Reviewing a Status Certificate is an essential condition when buying a condo in today’s real estate market, because it helps potential buyers from buying into a building that has problems with the condo management.

What information is included in a Status Certificate?

A status certificate provides information to a potential buyer about the condominium corporation’s management structure, common expenses, the current budget, any legal issues or proceedings, unit leases, insurance, upcoming repairs or maintenance and the corporation’s reserve fund; as outlined in Section 76 of Ontario’s Condominium Act.

The financial statements outline expenditures, receipts and the current year’s budget (including estimated costs and reserve fund information) which gives you—and your lawyer—a good indication of how fiscally healthy the property is.

A reserve fund study is commissioned every three years by the condo’s Board of Directors, and it determines what major repairs need to be done, the timeline for them and whether or not the reserve fund has enough money to cover these costs.

If the condo is an older building, there could be outstanding repairs or things that need to be done, so there is always a chance the condo corporation could increase the monthly maintenance fees. Any immediate planned increase in fees will be included in the Status Certificate.

You’ll also find information outlining whether or not there are any lawsuits ongoing against the the corporation, details of the building’s insurance policy and whether any “special assessments” (extra fees that the owners must pay) are being considered or will be taking place.

Within the declaration, you’ll find information on any restrictions, such as a “no pets” clause, and what rules you must follow when using common areas such as a swimming pool, gym facility or party room.

How do you get a status certificate?

Anyone can order a condo corporation’s status certificate by providing a written request and paying the $100 fee, however this is typically only done when there is a prospective buyer of a resale condo unit. In the Greater Toronto Area it is typical for the Seller to pay the fee.

After submitting the request, you should receive the status certificate package within 10 days, though some condo corporations will rush the order for a fee.  Once received, you and your lawyer typically have 48 to 72 hours to look over the documents and come to a decision.

Why do you need a status certificate?

Since a condo unit is subject to additional rules and regulations—as well as managed by a Board of Directors—there’s an entirely different set of concerns for a prospective buyer than there is when purchasing a house.

You’ll want to make sure that the Board of Directors is being fiscally responsible, that their budget is balanced, and that there is money in the reserve fund for any upcoming repairs.  An unbalanced budget or depleted reserve fund is a red flag, and you could be on the hook for increased maintenance fees to cover repair costs.

You’ll also find out if there are any lawsuits against the corporation or unsettled legal issues. 

It’s always a good idea to get your lawyer or realtor to contact the property manager as well and get as much information as possible before making a decision.

Since the condo corporation makes the rules about balcony barbecues, pets, and common areas, it’s important to fully read the declaration in the status package to ensure their by-laws and regulations are a good fit for you.

A status certificate outlines all this information and more for you upfront, so there are no surprises later on down the line.  This is why it’s important to work with your realtor to ensure your offer is conditional upon a review of the status certificate package.

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8 Ways to Win a Real Estate Bidding War

Bidding War – How to Win

 

bidding war

 

The real estate market has finally taken a breather after many months of frenetic activity and relentless price increases.  Buyers are able to breathe easier, as one of the hardest realities of the recent market – the bidding war – is taking a break. But will the real estate market come roaring back? Many people in the industry are predicting that it will. The supply of available housing stock remains as tight as it ever was. Will we get back to the bad old days when every listing had multiple offers and a bidding war?

Now may be a good time to review the techniques and strategies of how to win a bidding war in an aggressive real estate market. Here are 8 pointers on how to be in the winner’s circle at the end of the evening:

(1) Include the bank draft for your good faith deposit with the offer
Sellers always worry that a buyer could be over extending themselves in a bidding war. The worst case scenario is when a buyer feels remorse the next day, before they have their bank draft deposit in hand. What if they decide to back out? This creates a nightmare scenario for the Seller, who may have turned away a dozen other offers, and is now faced with a Buyer who wants out. Legal implications aside, having the certified cheque or bank draft with your offer shows that if they select your bid, there won’t be a problem with buyer’s remorse in the morning. If your bid is not the winning one, you can return the bank draft cash to your account, with no extra fee or wait hold time from the bank.

(2) Have your mortgage provider do an appraisal before the  making the offer
When a bank offers mortgage funds for any property, they will always have a professional appraisal done as part of their due diligence. Typically the buyer pays for this, and the appraisal is done after the sale. Occasionally, when a bidding war gets carried away, the eventual selling price is higher than the appraisal says the house is worth. At this point, the buyer has a problem – they will need to increase their downpayment to get the mortgage funds, and to stay within the bank’s allowed parameters.

By paying for a bank appraisal before the offer date, you the Buyer then have a ability to show a nervous Seller that you have enough cash for this eventuality. By knowing the appraisal value upfront, you can make it clear that you have the extra money needed, that is extra money that won’t be in the mortgage loan.

(3) Include a personalized note about yourself in the offer 

Try and personalize your offer. Write a note and include a photo to give an idea who you are and who is moving into the home. Tell them something about yourself. Many Sellers have lived in the same house for years, and they care about their neighbours, and about their neighbourhood. When you show them a bit of who you are, you essentially humanize your offer, and this can sometimes make the difference in which offer the Seller selects.

(4) Your offer must not have ANY conditions

In a hyper-kinetic real estate market, the old way of doing offers is dead. What used to be normal practice – including conditions on financing, house inspection, lawyer’s approval, status certificate and so on, is no longer acceptable. When you are in a bidding war, there can be no conditions attached to your offer. It is also no longer possible to offer a price to be paid on the condition that the owner undertakes some bit of care or maintenance. If you need an inspection, arrange that beforehand.

sold over asking

(5) If you make a bully offer, it had better be substantial

One of the most extreme tactics in a bidding war is the bully offer.  It works like this: When the house comes on the market, there is usually a date specified in the MLS listing, when offers are welcome, a date which is usually several days in the future. The bully offer ignores this date, and is submitted in the hopes that the seller will be so impressed that they will take it, rather than waiting for the offer date and the submission of other bids. It stands to reason that any bully offer must be extremely strong, in order to convince a seller to ignore any future bids.

(6)Prepare yourself mentally and learn as much as you can

At the risk of stating the obvious participating in a bidding war can be very stressful for a buyer (and indeed for a seller). Maintaining a calm, balanced state is essential to winning a bidding war. Make sure your real estate agent is experienced in bidding situations, and learn as much as you can from them. Be philosophical – sometimes you may win, other times it’s just a “practice run”. Try to keep anger and frustration in check, because those emotions will never give you the winner’s edge.

(7) Know your limits

You may find yourself up against another buyer who is reckless, and willing to pay any price to get the house or condo. Be prepared to walk away if you are bidding against someone like that. Set a limit of what you are prepared to pay, and respect the limit!

(8) Remember the Big Picture

Real estate prices go up, and they sometimes go down (although historically, they have been in a solid upwards trend for decades).  The house that you paid big bucks for today may go down a little in value at some point, and you don’t want to ever have to sell your house at a loss. So keep everything in perspective. Remember that even in a flat market, you will need to live in the property for a couple of years at least, to cover the expenses incurred when buying and selling.

Participating in a bidding war can be exhilarating if you win, and devastating if you don’t. By preparing and using some of these pointers, you can increase the odds of coming out on top. We hope you have found these tips on how to win a bidding war useful.

 

with thanks for local realtor contributions

 

Mortgage Approval and How to Get It

neighborhood homes street

HOW TO GET YOUR MORTGAGE APPROVAL

Getting a mortgage approval doesn’t have to be a scary or traumatic experience. The banks (lenders) all look for the same signals for credit worthiness, and with a bit of planning in advance,  you can ensure a smooth and easy mortgage approval, helping you to get that house of your dreams! By following this timeline plan up to a year before you want to buy a home,  you’ll be well prepared for your eventual move.

1 YEAR BEFORE:
REVIEW YOUR CREDIT REPORT
Access your credit report online at www.equifax.ca or www.transunion.ca – and make sure there are no mistakes on it.
TIP If your score is low, you can begin to fix it now – there’s enough time to make considerable improvements. Start by paying off debt such as a car lease and credit card accounts with amounts higher than $1,500, as this can help boost your credit score.

10 MONTHS BEFORE:
TACKLE YOUR EXISTING DEBT
Smart buyers enter into home ownership with as little extraneous debt as possible.
TIP Focus on bringing your credit card balances to less than 50% of the maximum amount allowed. Credit cards that are at capacity hurt your score.

8 MONTHS BEFORE:
LIVE ON LESS
Home ownership comes with expenses that renting doesn’t: property tax, utilities such as water and heat, and so on. Start putting aside those amounts every month to help you prepare to take these bills on when you are a homeowner.
TIP Park the money in a no tax high-interest savings account and apply it to your closing costs later.

6 MONTHS BEFORE:
RESEARCH MORTGAGE RATES AND COMPARE
Banks and mortgage brokers can sometimes offer different rates. Keep your options open and take the time to do some research on both. Compare what kind of mortgage each one can secure, what their best rate is and what documentation they will need from you.
TIP There’s no such thing as being too prepared! Speak to at least two different banks and one or two mortgage brokers and compare, so you get the best rate you can.

mortgage approval

4 MONTHS BEFORE:
ASSEMBLE THE PAPERWORK AND APPLY FOR A MORTGAGE
Most mortgage pre-approvals are valid for three months, but your broker (or bank) will need time to process your application. TIP Order your credit report yourself. Why? When someone else (such as your broker, who needs a copy) orders your report, that’s a query that is reported to the credit agencies, and it can impact your standing. When you pull the report yourself, there is no impact on your credit standing.

3 MONTHS BEFORE:
START HOUSE HUNTING!
Attend open houses and start looking with a realtor,  knowing in advance exactly how much you can spend. Make sure you get a written copy of your mortgage approval (pre-approval) for your records.
TIP Remember that your pre-approval is a maximum. You may find your perfect home for less. Don’t over extend yourself as it is always better to have a buffer for emergencies.

portions of this article were originally published by Genworth Financial

Sold Data coming soon for Canadian Consumers?

city skyline

It might get easier for home buyers and sellers in the Greater Toronto Area to accurately compare recently sold data and current homes for sale after a ruling from the Competition Tribunal. The Commissioner of Competition, the federal agency tasked with advocating for the rights of Canadian consumers, won their abuse of dominance case against the Toronto Real Estate Board (TREB) after fighting for years to have sales data made accessible to the public.

At the heart of the Competition Bureau’s argument is that TREB, the real estate board that represents real estate agents and brokerages that work in the GTA, stifles industry competition by restricting who gets full, easy access to housing market data. In an effort to increase competition within the real estate market, the Competition Bureau argued for open, easy access to housing data—data that lives on the Multiple Listings Service (MLS), a suite of services that enables a seller to market their property to multiple buyers in the open market. Read the full article at moneysense.ca