Listing Prices Are Obsolete in This Market

Listing Prices Are Obsolete in This Market

Everyone of my clients and people I come across have the same mentality when it comes to looking at Real Estate, what is the listing price. In this market of craziness, it means nothing. The only thing that matters is the last sold on the market, and the current listing prices on the market. Even the last comparable prices are obsolete once it sells. If the market is scarce, and there is a new house up for sale, the prices have already gone up. 

 
I know its hard to think of listing price differently than buying a pair of shoes but it is. When you buy a pair of shoes, you don’t have people bidding on the shoes. You have to kind of think of buying a house in this market as an auction. The put a suggested low price, and they are off to see how high it can go. If the item or house is interesting and worthy, the prices soar, and if not, they stay close to the list price. 
 
The next thing that needs to be taken into account is the it sold over asking none sense. If the agent priced the house correctly and then it went over asking, that is something to be impressed by, but, under pricing a listing by 100k and then selling for 105k over asking is just dumb in my books. Then to advertise that as well, like it means something, is even worse. It almost like your saying to people, you are dumb, and here are my dumb facts, hire me. 

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Transit Solutions Would Help Lower GTA Prices

One thing that can truly help lower GTA prices are some major transit solutions. It is apparent that the GTA market and all of the surrounding areas have gone buck wild in the past few years, and especially in the last few months. So many sales records have been...

read more

Why You Should be Underpricing Your House For Sale?

Its all about quantity and impression.When people are buying a house, they get into some-what of a HEAT! Underpricing Your House drives that heath up. I would call it a hunter gatherer mind set. Buyers are constantly on the hunt, and one thing that I've noticed is...

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Would You Go Into a Court Without a Lawyer?

Buying a house and using the listing agent is like going into court without a lawyer to represent you. Each and every time I have a listing, I have somebody calling me asking me "what's the price if I don't have an agent and buys directly though me?" I always want to...

read more

Liberals Are Going to Tank This Market!

What is the one thing the liberals are looking for right now? Votes and money. The way that they will try to get both is to try and capitalize on this hot real estate market.    The middle & lower class does not like the fact that they cannot afford any real...

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The Risk of Waiving a Home Inspection

If you put an offer on a house that goes into multiple offers, chances are you must waive two conditions: home inspection, and financing. We will deal with financing next week, but for now lets talk about the home inspection clause. In the 80's there was no such thing...

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The Banks Are To Blame For Our “Housing Bubble”

The banks are to Blame for Our Housing bubble. No Really, there is no one else to blame. You could throw the government in there too but mostly the banks. You can blame Realtors for driving up market price. You can blame Owners for jumping on the band wagon and...

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Is The Real Estate Market Bubble is Going to Burst?

Is The Real Estate Market Bubble is Going to Burst?

I’ve been Selling and Buying Real Estate Since 2008 and before that I’ve worked in the mortgage industry. Since the 2008 Drop, people have been constantly saying that they are waiting for the market to drop. Since then the prices have been going up and up.

If you look at the stats from the past 40-50 years, you will see that the market goes up, and the market goes down. Overall the market has steadily gone up and even when there is a steady up take, there are dips and valleys from time to time.

In Canada, the government, has done everything they can to slow the market down, with regulation and new rules. For most of the country this has worked, but in Toronto, this has not. In Toronto you have a double land transfer tax as well. Since Vancouver put a tax on foreign buyers, those buyers have gone elsewhere to invest their money. It looks like Toronto is where they are going. The market has exploded even more since these rules in Vancouver came into effect.

So Everybody is saying the sky is going to fall, well it might, but here are the only way that I see this happening, but in reality I don’t see it happening anytime soon.

1. Interest Rates: If the interest rates increase by 2%, the market is going to change drastically. Investors, and people trying to buy a home will not qualify, with that kind of interest increase and the already new rules that have taken effect.

2. Inventory: If everybody starts listing their home to capitalize on the boom, then there will be too much out there and prices will decrease.

3. Unemployment: If people don’t work, then they cannot afford their home. If there is sudden loss of jobs in the country like in Calgary, then there will be a drastic change in the market. Calgary is an example of this.

4. New Regulation: If the city, province, or Country, makes some new policy to curb the market even further. We have seen this in Vancouver.

5. World Event: If there is some sort of war, or market crash, this could change the equilibrium of the market. If there is some sudden world war or something like that, it would make people not sell their places and buy new ones for a period.

READ RECENT BLOG & ARTICLE POSTS BELOW

Uber is Not Like Real Estate!

I read articles all the time written by Real Estate agents who are trying to convince themselves that we are in a good business to be in, and that it is necessary to use an agent for every transaction. In Toronto, put up a sign and your property will be sold by the...

read more

Transit Solutions Would Help Lower GTA Prices

One thing that can truly help lower GTA prices are some major transit solutions. It is apparent that the GTA market and all of the surrounding areas have gone buck wild in the past few years, and especially in the last few months. So many sales records have been...

read more

Why You Should be Underpricing Your House For Sale?

Its all about quantity and impression.When people are buying a house, they get into some-what of a HEAT! Underpricing Your House drives that heath up. I would call it a hunter gatherer mind set. Buyers are constantly on the hunt, and one thing that I've noticed is...

read more

Would You Go Into a Court Without a Lawyer?

Buying a house and using the listing agent is like going into court without a lawyer to represent you. Each and every time I have a listing, I have somebody calling me asking me "what's the price if I don't have an agent and buys directly though me?" I always want to...

read more

Liberals Are Going to Tank This Market!

What is the one thing the liberals are looking for right now? Votes and money. The way that they will try to get both is to try and capitalize on this hot real estate market.    The middle & lower class does not like the fact that they cannot afford any real...

read more

Tesla’s Solar Roof Powered Shingles

Solar roof panels are the ugliest feature to attach to your house. I tried to sell a house once with solar panels and nobody wanted to even think about it. The panels were bulky and ugly, and the technology to save the power to batteries was messy and confusing. ...

read more

The Risk of Waiving a Home Inspection

If you put an offer on a house that goes into multiple offers, chances are you must waive two conditions: home inspection, and financing. We will deal with financing next week, but for now lets talk about the home inspection clause. In the 80's there was no such thing...

read more

The Banks Are To Blame For Our “Housing Bubble”

The banks are to Blame for Our Housing bubble. No Really, there is no one else to blame. You could throw the government in there too but mostly the banks. You can blame Realtors for driving up market price. You can blame Owners for jumping on the band wagon and...

read more

The Only Thing That Will Change Our Market

The Only Thing That Will Change Our Market

I hear a report daily about the market is set for a downturn, or that we are in a bubble. While most of the country is in a slower market, Toronto and Vancouver are not. In fact they are defying the odds and the price of Real Estate is steadily going up each month. It is on such an up swing that these two cities affect the whole countries stats. 

 
If you live outside of these cities you would think that what you hear on the news is a joke. You might also see your neighbourhood in such a slow market you can’t believe that houses are flying off the market at an alarming rate as your see on the news. 
 
There are so many factors that affect the price of Real Estate, such as, dollar exchange rate, Oil, unemployment, trade and more. Really there is only one thing that will affect the Market in Toronto and Vancouver: The Interest Rate. 
 
While interest rate will deter Canadian from buying, the rate still might not affect foreign buying. So the prices will go down, but it will not go down like you think, and it will not crash like you think. So much of our market is driven by foreign investment. It is the reason why our market in these two cities are so high. We as Canadians are competing for our real estate with foreigners. Typically it was Chinese investors, but now we also have American Investors coming north of the border. 
 
So While we hear that the market is going to crash, really if the interest rates go up, it will only be investors buying properties. The removal of Canadians in the market will lower the prices and bidding wars but the market will still be there due to foreign investment. 

READ RECENT BLOG & ARTICLE POSTS BELOW

Uber is Not Like Real Estate!

I read articles all the time written by Real Estate agents who are trying to convince themselves that we are in a good business to be in, and that it is necessary to use an agent for every transaction. In Toronto, put up a sign and your property will be sold by the...

read more

Transit Solutions Would Help Lower GTA Prices

One thing that can truly help lower GTA prices are some major transit solutions. It is apparent that the GTA market and all of the surrounding areas have gone buck wild in the past few years, and especially in the last few months. So many sales records have been...

read more

Why You Should be Underpricing Your House For Sale?

Its all about quantity and impression.When people are buying a house, they get into some-what of a HEAT! Underpricing Your House drives that heath up. I would call it a hunter gatherer mind set. Buyers are constantly on the hunt, and one thing that I've noticed is...

read more

Would You Go Into a Court Without a Lawyer?

Buying a house and using the listing agent is like going into court without a lawyer to represent you. Each and every time I have a listing, I have somebody calling me asking me "what's the price if I don't have an agent and buys directly though me?" I always want to...

read more

Liberals Are Going to Tank This Market!

What is the one thing the liberals are looking for right now? Votes and money. The way that they will try to get both is to try and capitalize on this hot real estate market.    The middle & lower class does not like the fact that they cannot afford any real...

read more

Tesla’s Solar Roof Powered Shingles

Solar roof panels are the ugliest feature to attach to your house. I tried to sell a house once with solar panels and nobody wanted to even think about it. The panels were bulky and ugly, and the technology to save the power to batteries was messy and confusing. ...

read more

The Risk of Waiving a Home Inspection

If you put an offer on a house that goes into multiple offers, chances are you must waive two conditions: home inspection, and financing. We will deal with financing next week, but for now lets talk about the home inspection clause. In the 80's there was no such thing...

read more

The Banks Are To Blame For Our “Housing Bubble”

The banks are to Blame for Our Housing bubble. No Really, there is no one else to blame. You could throw the government in there too but mostly the banks. You can blame Realtors for driving up market price. You can blame Owners for jumping on the band wagon and...

read more

Real Estate Prices are not going Down

Real Estate Prices are not going Down

While the interest rates may have gone up a bit yesterday, I believe that the Real Estate prices in Toronto, and GTA are not going down at all. There is a lot going against the market, new regulations, interest rates, unemployment, and our dollar.

There are many things going against our market, but there are a few driving factors which will keep the bidding wars coming:

1. Low Dollar:

Did you know that in China, they cannot own property? What this means is that people there have money to invest and cannot invest it in their own country. They come here because of our low dollar. This is what is driving prices up in many markets in Canada. Our Real Estate prices are cheap compared to many around the world. New Yorkers laugh at our dollar per square footage. Now that the dollar is lower than .70 usd, Americans will also be looking to the north for investment.

2. Interest Rates:

While this is on the bad list, these rates are a joke compared to years ago when rates were at 5% 8% 20% It is cheap to own a home in Canada. In many cases its easier to get a mortgage than get a lease. You don’t pay the mortgage, they take away the house.

3. Speculators:

I have many clients waiting to pounce on a lower market. Let’s say the market takes a dip for a few months, and it might, then I know I have a lot of clients waiting to take advantage of that lower priced property. People are waiting for a lower market to go in. This will drive the prices up again.

I think these three factors are the most important things to consider when you panic over a quarter percent interest rate increase. Don’t hold your breath when the pundits are saying that the market is going to crash, in my world its going higher by the minute.

READ RECENT BLOG & ARTICLE POSTS BELOW

Uber is Not Like Real Estate!

I read articles all the time written by Real Estate agents who are trying to convince themselves that we are in a good business to be in, and that it is necessary to use an agent for every transaction. In Toronto, put up a sign and your property will be sold by the...

read more

Transit Solutions Would Help Lower GTA Prices

One thing that can truly help lower GTA prices are some major transit solutions. It is apparent that the GTA market and all of the surrounding areas have gone buck wild in the past few years, and especially in the last few months. So many sales records have been...

read more

Why You Should be Underpricing Your House For Sale?

Its all about quantity and impression.When people are buying a house, they get into some-what of a HEAT! Underpricing Your House drives that heath up. I would call it a hunter gatherer mind set. Buyers are constantly on the hunt, and one thing that I've noticed is...

read more

Would You Go Into a Court Without a Lawyer?

Buying a house and using the listing agent is like going into court without a lawyer to represent you. Each and every time I have a listing, I have somebody calling me asking me "what's the price if I don't have an agent and buys directly though me?" I always want to...

read more

Liberals Are Going to Tank This Market!

What is the one thing the liberals are looking for right now? Votes and money. The way that they will try to get both is to try and capitalize on this hot real estate market.    The middle & lower class does not like the fact that they cannot afford any real...

read more

Tesla’s Solar Roof Powered Shingles

Solar roof panels are the ugliest feature to attach to your house. I tried to sell a house once with solar panels and nobody wanted to even think about it. The panels were bulky and ugly, and the technology to save the power to batteries was messy and confusing. ...

read more

The Risk of Waiving a Home Inspection

If you put an offer on a house that goes into multiple offers, chances are you must waive two conditions: home inspection, and financing. We will deal with financing next week, but for now lets talk about the home inspection clause. In the 80's there was no such thing...

read more

The Banks Are To Blame For Our “Housing Bubble”

The banks are to Blame for Our Housing bubble. No Really, there is no one else to blame. You could throw the government in there too but mostly the banks. You can blame Realtors for driving up market price. You can blame Owners for jumping on the band wagon and...

read more

Social Media Strategy To Sell Your House

Social Media Strategy To Sell Your House

When was the last time you walked into a store and bought something without checking it out online first?Especially big ticket purchases.

Before Hiring an agent you should ask a few questions on his or her online strategy to sell your house. You should also do a quick google search to see if they have any online presence at all. Saying you have buyers is the oldest trick in the book to get listings and in most cases is a trick just to get your house in their book of listings. Do some homework. Here are a few things to check out to see if your agent has a presence on social media platforms.

1. Facebook:

This is the end all and be all of social media right now. A personal page with Real Estate agents and people in the area is a must.

A business page is also a must. Search both the personal page and business page and look to see what type of posts the agent is posting. If its all cats and dogs, you might have a problem. You want to see Real Estate postings, listings, videos, pictures and articles and blog posts.

Twitter:

Still the next most popular platform than Facebook, this is limited to characters but it is just enough to get your property out there. Twitter has improved in the past couple of years to include pictures and videos directly. You want to make sure your agent uses the correct hash tag to accompany your post. Using a hash tag service such as hashtagifyme is a service that you type in the subject or word and it tells you the most popular searches, that you should hash tag. This is crucial for optimizing your tweets and your agents.

Pinterest:

This has become a popular platform and well it is usually for interesting things such as wedding etc, your agent can also use this to post your pictures of your house. Pinterest should also be used as a pro account from your agent, it is better optimized for likes and attention that way.

Linkedin:

While originally a spot to look for a job and posting job applications and resumes, this has become a lot more recently. They have started a section of articles and post now which are posted natively on linkedin. This post section gets more attention and priority than just simple links as before. That is why you cannot just use a service to post links for all the services, it won’t post natively to linkedin.

Google Plus:

While this seems like its dying fast, it doesn’t hurt to use it because lets face it, google the king of searches and posting here will get your ranking higher.

Youtube:

Posting a video and video tour of your property is a way to get your house attention online more than anything. Videos for a long time trump articles, pictures and links. It gets more attention plain and simple. Do a great video and people will see it.

Here are some more keys to great social media.

Watch to see if the agent is simply posting the same thing as the other platforms. This is counter productive, because each platform is different and requires different attention.

You also want to look for interaction with those posts. Is the agent doing their own posts or do they have a service doing them? This is important, because chances are, there are the same posts that other agents are posting and its just a cookie cutter farm then.

One thing to remember when you finally find an agent and they have a proper social marketing strategy is that you should piggy back on their posts, share what they post and get your followers to interact as well. I know its the agents job to sell your house but you never know who may be searching for a house in your own sphere.

Also ask if any marketing dollars are going into promoting on social media, like Facebook boosts and google ad words.

READ RECENT BLOG & ARTICLE POSTS BELOW

Uber is Not Like Real Estate!

I read articles all the time written by Real Estate agents who are trying to convince themselves that we are in a good business to be in, and that it is necessary to use an agent for every transaction. In Toronto, put up a sign and your property will be sold by the...

read more

Transit Solutions Would Help Lower GTA Prices

One thing that can truly help lower GTA prices are some major transit solutions. It is apparent that the GTA market and all of the surrounding areas have gone buck wild in the past few years, and especially in the last few months. So many sales records have been...

read more

Why You Should be Underpricing Your House For Sale?

Its all about quantity and impression.When people are buying a house, they get into some-what of a HEAT! Underpricing Your House drives that heath up. I would call it a hunter gatherer mind set. Buyers are constantly on the hunt, and one thing that I've noticed is...

read more

Would You Go Into a Court Without a Lawyer?

Buying a house and using the listing agent is like going into court without a lawyer to represent you. Each and every time I have a listing, I have somebody calling me asking me "what's the price if I don't have an agent and buys directly though me?" I always want to...

read more

Liberals Are Going to Tank This Market!

What is the one thing the liberals are looking for right now? Votes and money. The way that they will try to get both is to try and capitalize on this hot real estate market.    The middle & lower class does not like the fact that they cannot afford any real...

read more

Tesla’s Solar Roof Powered Shingles

Solar roof panels are the ugliest feature to attach to your house. I tried to sell a house once with solar panels and nobody wanted to even think about it. The panels were bulky and ugly, and the technology to save the power to batteries was messy and confusing. ...

read more

The Risk of Waiving a Home Inspection

If you put an offer on a house that goes into multiple offers, chances are you must waive two conditions: home inspection, and financing. We will deal with financing next week, but for now lets talk about the home inspection clause. In the 80's there was no such thing...

read more

The Banks Are To Blame For Our “Housing Bubble”

The banks are to Blame for Our Housing bubble. No Really, there is no one else to blame. You could throw the government in there too but mostly the banks. You can blame Realtors for driving up market price. You can blame Owners for jumping on the band wagon and...

read more

What will Affect the Housing Market this year?

What will Affect the Housing Market this year?

 

Everything affects the housing market. if the interest rates go up .25% it affects the market. Job rate, solds, inventory, immigration, the dollar, and many more factors go into what will make or break a market.

Here are a few things that could affect the market in either direction:

1. Gas: Over time, if people have more money in their pockets, they can save more. Someone like me has been saving $30 per tank, 3x a week, that’s right roughly $400 a month, and that’s about $6000 a year, give or take. That amount of money is a small deposit on a condo development.

2. Dollar: If the dollar goes down, that means more foreign investment in Real Estate, and in manufacturing. More Manufacturing and Real Estate buys, the market goes up.

3. Immigration: The immigration rates will rise or stay the same depending on policy, but it is not going down, Canada needs immigration to bring in more money and the government knows that. This will keep the market steady.

4. Interest Rates: The interest rates will go up this year and it will affect the market. Depending on how much they go up will determine how much it will change things.

5. Inventory: In some areas there is a lot of inventory while other not so much. This affects the market in that it makes things hard to determine. Forget everything about pricing, and comparables, if the inventory level is high or low will effect your price significantly. Supply and demand.

There are so many factors that can change the market. The past has shown us that any number of things can change things and the market.

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