Good evening everyone;
GTA REALTORS® Report Resale Housing Market Figures – (See full Report)
Tight Market Conditions Prompt Strong Price Growth
May 6, 2014 — Toronto Real Estate Board President Dianne Usher announced that during April – the first full month of spring – Greater Toronto REALTORS® reported a 1.8 per cent year-over-year increase in sales through the TorontoMLS system. Total April 2014 sales amounted to 9,706, compared to 9,535 transactions in April 2013.
“April marked the beginning of the spring market, during which time we generally see the highest monthly sales totals in a given year. Despite the persistent shortage of listings, a substantial number of GTA residents were able to come to terms on a home that met their needs. However, sales levels would have been higher, but for the lack of supply,” said Ms. Usher.
“A number of factors underlie the constrained supply of listings. Studies and polling suggest that the additional upfront land transfer tax in the City of Toronto has prompted some households to stay put and renovate rather than list their home and move. In the broader GTA context, above trend home sales in the years leading up to the recession have meant that many households who purchased during this period simply aren’t ready to move again,” continued Ms. Usher.
The average selling price for April 2014 sales was $577,898 – up by 10.1 per cent compared to the April 2013 average of $524,868. The MLS® Home Price Index (HPI) Composite Benchmark was up by seven per cent year-over-year. The MLS® HPI strips away price fluctuations resulting from a change in the mix of home types sold from one period to the next.
“Price growth for the GTA as a whole was driven by the single-detached, semi-detached and townhouse market segments in the City of Toronto. So far this year, there has been no relief on the listings front for these home types in many neighbourhoods in Toronto and surrounding regions. Until we see a marked and sustained increase in listings, we should expect to see the annual rate of price growth above the long-term norm,” said Jason Mercer, the Toronto Real Estate Board’s Senior Manager of Market Analysis.
GTA Commercial REALTORS® Report Latest Commercial Market Figures (See full Report)
May 5, 2014 — Toronto Real Estate Board Commercial Network Members reported 450,092 square feet of combined industrial, commercial/retail and office space leased through the TorontoMLS system in April 2014, on a per square foot net basis where pricing was disclosed
Real Estate Sales Commissions. Of course I’m biased but I know good realtors are worth it!
Working in a commission driven environment can be potentially stressful for all parties involved. You need to hire a “Team” of professionals (that cover all aspects of the industry) that truly have your best interests in mind. What makes up this team? Realtors, Home Inspectors, Lawyers, Mortgage Brokers, Contractors, Environmental Engineers, Architects, Trades People and the list goes on and on. Every profession has a way billing for products and services rendered and in every case market forces play a role.
Buyers
- Although 99% of the time buyers are not charged directly any commission, it is ultimately paid out of the sale price.
- Remember commission is only paid once there is a SUCCESSFUL purchase transaction. Until then, Realtors are working for free with no guarantees of any compensation!
- Picture yourself going into your work place not knowing if your employer will in the end pay you for your efforts? What if this went on for several months and then your employer change their mind altogether and said “thank you, you are great but we don’t need you anymore” all the while you have not received any income. This can and has happened in my business. It’s just how it goes in our industry.
- If a buyer does not purchase a home, any incurred expenses are bared solely by the realtor. This can happen after months (or even years) of research, appointments, offer presentations, bidding wars, driving around, multiple dealings with other realtors etc.
- On several occasions I have had buyer rethink purchasing a home due to many reasons. It would be ridiculous of me to ask for any compensation when the end goal was not achieved. It boils down to taking care of your client! In any business your primary and paramount goal is to take care of your client. This will result in success and continued referral to other potential clients.
- The single biggest expense (other than the home purchase) for buyers is typically the land transfer tax(es).
- In this sellers’ market it may take several months to locate the proper home for your clients. In some cases years! And it’s all fine because again, it’s about taking care of your clients.
- There are so many pitfalls and risks that need to be considered that having a trusted team of professionals on your side just makes sense.
- REALOTRS TAKE ON A HUGE LEGAL RESPONSIBILTY AS WELL. WE ARE LICENSED AND INSURED! Worth the commission alone.
Sellers
- There is no set commission rate! Buyers, Sellers and Realtors can agree on a commission rate to be charged and which services to be performed.
- Typically the commission charged is a total commission that is split 50/50 with a Cooperating Buying Brokerage.
- Remember commission is only paid once there is a SUCCESSFUL sales transaction.
- I always break down the numbers for my clients and ask that they not focus solely on the commission rate but more on how much money ultimately ends up in their pocket.
- What I mean by this is that any commission rate should be attached to a realtor that offers you loyalty, value, expertise, experience, competence, full service, proper marketing to target groups, , expert negotiations, PPP (Proper Property Prepping).
- DON’T LOSE SIGHT OF THE DOLLARS BY FIXATING ON THE PENNIES! A top agent will obtain their clients much more than any proposed reduction on commission.
- If a proper job is done a seller will sell their home faster and for more money.
- GREAT REALTORS are also able to get deals done. There are many ways to overcome any obstacles or barriers that come up.
- REALOTRS TAKE ON A HUGE LEGAL RESPONSIBILTY AS WELL. WE ARE LICENSED AND INSURED! Worth the commission alone.
- What expenses can listing realtors incur?
- Marketing: Print Ads, Brochures, Virtual Tours Professional Photography,
- Agent Open Houses / Public Open Houses
- Staging
- Pre-Home Inspections
- Floor plans
- Minor repairs
- Of course the realtors time.
- We deal with all the inquiries, negotiations and guide you through the entire process.
- If a home does not sell, no commission is paid and the realtor is out of pocket.
- As a full time / full service realtor, my mission is to make the process of buying and selling your home as easy as possible. To make this possible my clients rarely see “the behind the scenes” work and efforts.
- It is also common that realtors will pay out of pocket to address any surprises that may come up. E.g fix/replace broken appliances, Chop down trees, etc.
- Great client service is how you deal with any problems that may surface!
There are just so many variables to consider. One variable that almost no seller considers is that a realtor is a brand! We have to showcase and sell your home in a way that is consistent with our brand, work ethic and image, regardless of the commission rate being charged or the home type being sold. A dirt cheap commission does not allow this. In other words I don’t cut corners on the service I provide.
There are indeed Realtors that only care about the quick sale. They reduce commissions to acquire the business but don’t do too much after that. This is where some of the public’s negative perceptions of our industry stem from. In this sellers’ market homes tend to sell quickly but unless a proper job is done you don’t know what money you left on the table. You may have saved a few bucks on the commission but possibly missed out on a whole lot more.
How new CMHC rules will impact housing April 28th / 2014
Robert Hogue, Senior Economist, RBC Capital Markets tells BNN how new CMHC rules will impact the housing sector.
Video by: MoneyTalk
http://money.ca.msn.com/video/?videoid=daf9ec9b-87b7-4e10-9bfd-96def6543ed0
To all the fantastic moms and moms to be have a wonderful weekend and a great Mothers’ Day. Anthony