Perspectives from the Real Estate Landscape

Competence

Wed, 23 Apr 2014 23:02:00 GMT

com·pe·tence

[kom-pi-tuh ns]

noun

the quality of being competent; adequacy; possession of required skill, knowledge, qualification, or capacity: He hired her because of her competence as a REALTOR®.

sufficiency; a sufficient quantity: He had the financial competence to complete the deal.

an income sufficient to furnish the necessities and modest comforts of life.

Law. (of a witness, a party to a contract, etc.) legal capacity or qualification based on the meetingof certain minimum requirements of age, soundness of mind, or the like.

While watching the Cirque Du Soleil performance of LOVE in Vegas recently, the thought occurred to me that the simple ease in which the performers glided along the free hanging ropes hid the pain, struggle, and dedication it took to reach such a level of competence. All of the years of effort and dedication had paid off in providing the wonderful audience experience of seeing these masters of their craft defy gravity and float to the music of the Beatles. These performers made it all look so easy…but anyone who has tried to climb a single strand of rope hanging from a school gym ceiling understands how difficult it truly is.

Such is the case in any area of the arts, sports, and business it seems. The incredible musician flows freely with his instrument, seemingly able to pull beautiful music out of it on a whim. Yet the hours of work, tedious and demanding work required, are not seen in the final result. As well, the world class athlete performs superhuman feats like it is second nature. A hockey player skates forward and backward perfectly balanced and can stop on a dime to execute a perfect tip of the stick to deflect a tiny rubber puck into that small unprotected area of the net. Looks so easy…

I have had the privilege of working with some of the best REALTORS® in North America. These individuals also imbue that core competency that makes it look like business falls from the sky and into their laps each day. However, the years of struggle, risk, investment, education, practice, and training are not seen in their steady handshake or easy manner. Make no mistake…to be truly competent is to make it look like you are not even breaking a sweat while leaping tall buildings in a single bound.

Brian Tracy once said, “The future belongs to the competent. It belongs to those who are very, very good at what they do. It does not belong to the well meaning.”

So then, what is competence, core competence, and how do we achieve that pinnacle in our own business?

Competence is not something one can imitate. It can only be developed through time and effort. While it is true that some will have natural gifts that give an edge in certain disciplines, (a good musical ear, or natural athleticism, for example), to develop a true core competency takes work. In real estate some have a natural ability to instill trust in others through superior listening or emotive skills, but that will not remove the need to build good marketing programs, or follow statistical trends in their local marketplace.

The business authors, C.K. Prahalad and Gary Hamel have researched and explored the notion of core competency within organizations on a larger scale. They state that core competency includes communication, involvement, and a deep commitment to working across organizational boundaries to overcome them. It is a fundamental provision for creating added value within the organization as well as for the consumer.

Developing a core competency can be part of a specific office culture and can be developed over time as long as the intent of subject matter know-how, reliable processes, dedication, and commitment are set as the guide posts. It must contribute to the end consumers experience and benefits as well as the value of the products and service to the client.

Every study of high achieving professionals proves that success in life is only possible when you become fully competent at your chosen field. So, one of the best uses of your time is to identify your key result areas and work on competence in them. For example, if understanding trends in market values in your area will result in a higher listing percentage, concentration on statistics and appraisal reports will help you develop competency as a whole. You may find yourself having difficulty making connections with customers at open houses, focusing on your social skills will help you build your core competency.

Remember that concentration on the little things makes a big difference when you are working toward reaching the level of core competence. It’s the small incremental steps that you commit to doing that will set you apart and build true competence. Block out time on your calendar every week to commit to your personal training and education. That one small step will make a big difference in your career.

The Rose-Tinted Glasses

Fri, 13 Dec 2013 18:52:00 GMT

The Rose-tinted Glasses

“… as we know, there are known knowns; there are things we know we know. We also know there are known unknowns; that is to say we know there are some things we do not know. But there are also unknown unknowns- the ones we don't know we don't know.”
― Donald Rumsfeld

In BC the provincial real estate council places a heavy burden of responsibility for an agent’s actions on the shoulders of the managing broker of the brokerage the agent is licensed with. Given the numerous valleys of gray amongst the mountaintops of success, it is a difficult mandate to help agents navigate through the unknowns. It is particularly tough when an agent has just enough knowledge to allow their brains to build confidence in their actions, but not enough knowledge to truly be competent in the field.

I have heard it said that the first phase in any new vocation or skill is that of “unconscious incompetence”. The Provincial Real Estate Councils across the country do a relatively good job in helping new real estate licensees understand their short-comings in terms of their knowledge base in the profession. They move them into that more uncomfortable phase of having “conscious incompetence”. However, Rumsfeld’s mysterious shroud of not knowing what we don’t know is something that impacts on both the seasoned professional and the novice. We must be aware of the Dunning-Kruger effect.

The Dunning-Kruger effect is the name for the blind confidence the brain gives an individual who fails to understand that they truly don’t know something. It is a cognitive bias that creates an inability to recognize personal short comings. Basically, it’s the effect of the brain reaching its limit of self analysis and thereby creating the sense of confidence to plow forward.

The Dunning-Kruger effect is named after David Dunning and Justin Kruger of the Department of Psychology at Cornell University. They conducted a series of experiments to study this phenomenon. Their findings shine a light on the fact that our understanding of things is highly subjective, and that we can fool ourselves into beliefs and prejudices that are inaccurate.

This inability to recognize one’s own inadequate knowledge or ability also brings along some other traits in the process. The unconsciously incompetent tend to overestimate their own level of skill, they fail to recognize genuine skill in others, and will only recognize and acknowledge their own previous lack of skill once they are exposed to training in that area.

Although the Dunning-Kruger effect was first published as a study in 1999, throughout history writers and philosophers have made similar general observations of this very human trait. The book of Proverbs states: Whoever trusts in his own mind is a fool; Confucius put it this way: real knowledge is to know the extent of one’s ignorance; Even Darwin has been quoted on the subject, stating: Ignorance more frequently begets confidence than does knowledge.

Interestingly, when someone speaks with confidence, the majority of people with find it easier to accept information as fact than when one speaks tentatively. However, the Dunning-Kruger effect suggests that those with inadequate knowledge have a self-induced sense of confidence because they have a cognitive inability to understand that they are, or might be wrong.

An analysis of experts and pundants in the media showed that in most cases their comments were inaccurate or just plain wrong. However, because these individuals were able to speak with confident bravado (and in sound-bites) they receive the media exposure. How often have world leaders in history been wrong and lead their countries in directions that time has proven to be damaging? No one, including monarchs, judges, and politicians, is totally immune to the Dunning-Kruger effect. History bears that fact quite well.

If you are in a situation where you are thinking, ‘How can this person be so wrong ‘, and you are totally confident that you are right…take a serious and reflective moment to consider that you, not the other person, might be experiencing the Dunning-Kruger effect. Benjamin Franklin had a wonderful way of freeing the brain from its unknown biases. He would take a sheet of paper and on one side list all the positive reasons for a decision or a potential action, and then on the other side of the paper he would list all of the reasons against it. If it is a list written openly and honestly, then the correct position will reveal itself. However, you have to be willing to accept the outcome, even when it reveals that your own bias could be wrong.

In the extremely complex business of real estate, it is imperative that REALTORS® and Brokers be wary of the ways the human brain can fool itself into a false sense of confidence or righteousness. Never forget to speak to bonafide experts and do research to uncover those areas of “unknown unknowns”.

“We see the world, not as it is, but as we are -- or, as we are conditioned to see it. When we open our mouths to describe what we see, we in effect describe ourselves, our perceptions, our paradigms.”― Stephen R. Covey

Our lives, and our individual experiences have equipped all of us with lovely rose-tinted glasses. If you understand that you are wearing them, the better part of the battle of becoming competent at the highest level is being won.

Sleep Your Way To Success!

Fri, 20 Sep 2013 16:16:00 GMT

The internet series of TED talks is a fascinating diversion these days. The series consist of experts in various fields sharing leading edge ideas and discoveries. The other evening I was scrolling through the latest of the TED talks and came across Russell Foster speaking on the subject of sleep. Foster is a circadian neuroscientist who studies the sleep cycles of the human brain.

While listening to Russell Foster’s lecture, it occurred to me that having a successful real estate career can be greatly aided by paying attention to one’s sleep habits and improving on them. This may seem contrary to the image of a hard working agent who never rests, but research suggests that spending quality sleep time is actually time well spent.

Sleep is the single most important physiological activity of the human brain. In fact, a person living to the age of ninety will have spent 32 years asleep. Interestingly enough, the brain does not shut down during sleep, quite the contrary. There are some areas of the brain that are more active during sleep. Some genes are only turned on during memory consolidation periods of sleep. However, sleep remains complicated. Researchers have theories on what sleep really is, but they don’t really know why we sleep.

The need for sleep is not restricted to humans. Other mammals and birds share with humans the two broad types of sleep: rapid eye movement (REM) and non-rapid eye movement (non-REM). However, the sleep process seems to have a greater impact on human brain activity in the areas of memory consolidation, and the creative areas of the brain. An adult reaches the REM stage of sleep every 90 minutes, but the function of REM is uncertain. What is certain is that without proper REM sleep the ability to learn and retain information is clearly impaired, according to scientific research into the subject.

Our society is sleep deprived. We live in an aura of artificial light that affects natural sleep cycles. As a result we keep strange hours. We suffer from jet lag, shift work, late night computer addictions, and any other of various factors that limit the time resting. Margaret Thatcher famously said, “Sleep is for wimps”. According to Foster and other neuroscientists, Thatcher couldn’t be more wrong.

So, what happens when we don’t get our 8 hours of proper sleep? Lack of sleep has a real nasty downside. For starters, things like mood change, stress, anger, impulsive actions, chemical dependence, lack of concentration, poor memory, and lack of creativity will result from sleep deprivation. Heart problems, obesity, and even mental health problems like bi-polar disorder, depression, and schizophrenia have been linked to lack of sleep. For a REALTOR® any one of these side-effects of the lack of sleep can really impair the ability to fulfill the job description.

On the other side of the coin, getting proper sleep will give you many of the attributes for a successful career. Sleep increases concentration, attention, decision making, creativity, social skills, maintaining a healthy weight, and overall cardiovascular health. A study conducted in 2007 by researchers Turner, Drummond and Brown showed that working memory was clearly reduced by 38% when one was sleep deprived. Another University of California psychiatry study of more than one million adults found that people who live the longest reported a regular sleep habit of 7 to 8 hours. Having good regular sleeping habits pay big dividends in health and effectiveness.

Some cultures have the accepted practice of taking an afternoon nap after lunch. Despite stereo types and social bias this is not a sign of laziness. In fact, studies have demonstrated that taking a short “power nap” actually helps in overall wellness. In fact, the “siesta” has been associated with a 37% reduction in heart disease.

The idea of the “power nap” is not new. Salvador Dali, the famous surrealist painter would often sleep in a chair while holding a spoon. When he went into the sleep phase, his hand would loosen, and the spoon would fall. The noise would awaken him, and he felt refreshed and ready to work again.

Recent studies have proven that short naps during the day can be as good for some types of memory tasks as a solid night of sleep. NASA has conducted numerous studies and research into the effects of sleep patterns as part of their interest in the effects of space travel. Their research has confirmed the importance of naps for memory, alertness, response time, and other cognitive skills. This is a far better outcome from a sleep deprived individual having his brain shut down into the phenomenon known as micro-sleep. Many industrial accidents and traffic tragedies have been caused by micro-sleep. We have all experienced the uncontrollable experience of micro-sleep during a boring lecture, an overly long sermon, or an early morning sales meeting. It’s that feeling when your eyes begin to close and your head slowly begins to drop despite your best efforts to engage your attention.

So, how do we create the atmosphere conducive to healthy sleep? Russell Foster suggests reducing exposure to light a good half an hour before sleep. Have a dark room with a slightly cool temperature, and don’t drink coffee after 3 pm.

Perhaps Brokerages should provide a quiet dark room for those that need a power nap in the mid-afternoon, and remove the stigma of short rest periods during office hours. It might provide as much benefit as an in-house gym, or café style office area. That being said, having a power nap during a quiet open house is not recommended practice!

The conclusion in all of this is; if you want to be your absolute best in the Real Estate business, and achieve greater success through capitalizing on your full potential, remember that quality sleep is a scientifically proven, valuable and important tool in achieving your goals. The plus side of developing and maintaining good sleep habits far out-weight the negative results of sleep deprivation, regardless of what our current social mores may be.

Writer and journalist, Tim Butcher once wrote, “Sleep is God. Go worship.”

Rest well!

Vancouver Market Mirrors the Chinese Economy

Tue, 12 Mar 2013 18:16:00 GMT

Vancouver Housing Markets Cannot Fully Escape The Chinese Dragon

March 11, 2013

Robin Wiebe
Senior Economist, Centre for Municipal Studies

The ebbs and flows of Chinese commerce have strongly affected housing markets around the Pacific Rim, including Vancouver’s. Although discussion of this relationship has focused on its recent behaviour, the bond stretches back much further. Moreover, casual observation and statistical tests both hint that China’s influence rivals that of three key domestic factors: Vancouver’s population growth, changes in its employment and Canadian mortgage interest rates. The chief implication is that observers need to pay attention to China’s economic health when assessing the outlook for Vancouver’s housing market.

Despite a decent local economy and favourable demographics, Vancouver’s housing market was relatively sluggish during the 1990s. Employment increased an average of 2.3 per cent annually and the population advanced 2.5 per cent per year, both solid figures. Nonetheless, the average resale price rose less than three per cent annually, ending the decade up 24 per cent. The market performed much better during the following ten years. Annual sales of existing homes exceeded 36,000 units, a previously-unheard-of volume, for five straight years between 2003 and 2007. The average transaction price doubled between 2000 and 2009 with a 20 per cent spurt in 2006 alone.

One obvious contributor to the market’s improvement was the big drop in mortgage interest costs. The posted rate for a five-year term mortgage declined from 13.2 per cent in 1990 to below 7 per cent in 1998, before edging up in 1999. Rates were generally lower and continued easing during the 2000’s. The five-year mortgage rate fell to an average of 5.1 per cent by 2009. Cheap financing clearly helped people buy homes.

But, Vancouver’s housing market performance can also be viewed through an Asian prism. The 1990’s started poorly for China, whose economy grew only 3.8 per cent in 1990, following a tepid 4.1 per cent advance in 1989. This represented a big shock since annual expansion had averaged roughly 12 per cent in the prior 5 years. The 1990’s also ended on a weak note, with an annual GDP growth of 7.8 per cent in 1998 and 7.6 per cent in 1999. The 2000’s were significantly better: annual Chinese GDP growth never dipped below 8 per cent.

Now the pendulum has swung again. Despite slightly faster growth in employment (2.1 per cent on average in 2010-12) and population (1.6 per cent), along with even lower mortgage interest rates, Vancouver resale volumes fell 23 per cent in 2012 and the average resale price dropped 6.4 per cent. One clue to this tepid performance is that China’s real GDP growth fell to a 12-year low, estimated at only 7.8 per cent, in 2012.

Statistical analysis confirms the importance of China’s economic health to Vancouver’s housing markets. Standard tests find significant correlations between the country’s real GDP growth and three important market yardsticks: existing home sales, existing home price growth and total housing starts. By contrast, local employment growth is significantly correlated to none of these and the five-year rate related to only the resale variables. This could mean that a substantial proportion of Vancouver real estate purchasers do not need local jobs to buy any home (new or existing) and that many do not need a mortgage to buy a new home. On the other hand, better economic health in China gives its residents wealth to spend on Vancouver housing.

This analysis suggests that Vancouver’s housing markets would perhaps welcome a pickup in Chinese GDP growth more than a rise in local employment and roughly as much as lower Canadian interest rates. If the Chinese economy is indeed improving, this could help rekindle both new and resale demand in the lower mainland.

Economic Update for BC

Fri, 04 Jan 2013 16:21:00 GMT

Canadian and US Employment - January 4, 2013

On the heels of a surge in employment in November, Canadian employment posted a strong increase again in December, growing by 40,000 jobs. December's increase in jobs was entirely due to gains in full-time employment. The Canadian economy added just shy of 100,000 new jobs in the final two months of 2012, which pushed the national unemployment rate to 7.1 per cent, its lowest level in 4 years.

Job growth in the BC economy was essentially flat as an increase of 4,300 in full-time employment was mostly offset by declining part-time employment. The BC unemployment rate fell 0.3 points to finish the year at 6.5 per cent. Despite some softness towards the end of the year, the story of the BC labour market in 2012 was overwhelmingly positive. BC employment grew 1.7 per cent in 2012, a marked improvement from just 0.8 per cent in 2011, while annual growth in full-time employment was 2.8 per cent in 2012 compared with just 0.5 per cent in 2011. The provincial unemployment rate averaged 6.8 per cent in 2012, the first time in 4 years that unemployment fell below 7 per cent.

Finally, the US economy continued its slow and steady recovery, adding155,000 jobs in December following job growth of 161,000 in November. The US unemployment rate remained constant, finishing the year at 7.8 per cent.

For more information, please contact:

Cameron Muir	Brendon Ogmundson
Chief Economist	Economist
Direct: 604.742.2780	Direct: 604.742.2796
Mobile: 778.229.1884	Mobile: 604.505.6793
Email: cmuir@bcrea.bc.ca	Email: bogmundson@bcrea.bc.ca

Turn on the Motivational Drive

Fri, 28 Dec 2012 18:07:00 GMT

According to research, the three things that turn on our motivational drive are: Autonomy, Mastery, and Purpose. This is according to Daniel Pink in his book, Drive. Here is how he details these drivers:

Autonomy – Seek autonomy over some (or all) of the aspects of work. Lookf for the freedom to tackle projects in a way that you see fit rather than having to follow a strict procedure.

Mastery – Seek the passion to become better at something that matters to you.

Create an environment where mastery is possible – to foster an environment of learning and development, four essentials are required – autonomy, clear goals, immediate feedback and Goldilocks tasks.

Purpose – take steps to fulfil your natural desire to contribute to a cause greater and more enduring than yourself

In the new year, let's try and find those areas where our passion for mastery can fuel our actions in a more proactive way. Also, let's try an find a purpose for contributions that is deep and meaningful for our greater goals.

8 new studies in psychology reveal some interesting truths

Wed, 05 Dec 2012 21:22:00 GMT

1. If you have to choose between buying something or spending the money on a memorable experience, go with the experience. The things you own can’t make you as happy as the things you do.

2. First impressions are all about value. We’re all hardcore value processors even before “Hello” comes out of our mouths. The subjective evaluation we make when meeting someone new includes–to put it bluntly–what’s in it for us.

3. The “money illusion”—the tendency to allow the nominal value of money (amount of currency) to interfere with the real value (value of goods the money can buy)—is all in your head. Think about what you can buy with your bucks, not just how many you have in your wallet. Most of don’t process the effects of inflation.

4. Playing video games could be an unlikely cure for psychological trauma. Researchers at Oxford University hypothesized that playing Tetris after witnessing violence would sap some of the cognitive resources the brain would normally rely on to form memories. Memory research suggests that there’s about a 6-hour window immediately after witnessing trauma during which memory formation can be disrupted.

5. All of us spend time riding the moral self-regulation see saw. Feelings of negative self-worth can predispose us to acting morally in an effort to fill up the self-worth bank account. If the account is already full, we might be predisposed to choosing not to act morally, or just not act at all.

6. If you’re preparing for a specific challenge, make sure you prep for that challenge and not just ones like it. Title says it.

7. If someone is trying to sell you something, be extra careful to keep your psychological distance. People not emotionally engaged, were significantly better at identifying liars and thus were harder to fool with the old flim flam sales routine.

8. Turns out, saying you’re sorry really is important—and not just to you. Receiving an apology makes the recipient feel better by affecting his or her perception of the wrongdoer’s emotions. Knowing that the other person agrees that what he/she did was the wrong thing to do reaffirms our view of the world as just and predictable.

The REALTOR CODE

Thu, 18 Oct 2012 17:11:45 GMT

The REALTOR® Code

In my role as a Managing Broker, it is not unusual to hear complaints from agents about other agents acting “unethically”. On occasion I have to deal with members of the public expressing concerns about one of our associates acting in a manner which was considered unethical in their eyes. These allegations tend to stem from the complainant imputing motives on the actions of the agent. They interpret what they have experienced as unethical when the results of a transaction, or negotiation do not conform with their expectations nor provide for their well-being. The insinuation is that the agent manipulated circumstances into their own interest, rather than the interest of the client or customer. What comes into play is the subjective nature of our understanding of the ethical boundaries of our business.

Ethical behavior is described in the Dictionary as follows:

eth·ics

1. ( used with a singular or plural verb ) a system of moral principles: the ethics of a culture.

2. the rules of conduct recognized in respect to a particular class of human actions or a particular group, culture, etc.: medical ethics; Christian ethics.

3. moral principles, as of an individual: His ethics forbade betrayal of a confidence.

4. ( usually used with a singular verb ) that branch of philosophy dealing with values relating to human conduct, with respect to the rightness and wrongness of certain actions and to the goodness and badness of the motives and ends of such actions.

Ethics are, in a nutshell, the often unwritten, but internalized, rules of conduct that allow for the well-being of others. While many maintain that it is the religious imprint of our current or past affiliations of faith that give us a moral compass, there is a growing understanding that we all have an innate sense of fairness and communal responsibility. This inborn awareness of what is fair has even been demonstrated in studies with primates that associate in groups.

We all have slightly different points of reference when it comes to acting fairly. Although the “golden rule” is a universal axiom, we are also influenced in what our ethical boundaries are through our upbringing, (including where we are in birth order comparative to our siblings), our cultural background, and our religious influences. Due to these variants in one’s personal experience, it is important to set an objective guideline to overcome the elastic nature of moral and ethical boundaries. The statement that there is “honour among thieves”, suggests that even within groups that might be seen as lacking in moral fibre, a certain ethical standard is upheld. One might be tempted to respond to an accusation of unethical behavior with a question of which standard is being referred to!

CREA developed a code of ethics in 1913 for the real estate industry with the specific reason of ensuring that a standard of conduct be adhered to. They created 28 guiding principles help to determine when someone is acting unethically. This code has a higher standard than the existing legal requirements in many cases. The local real estate boards have taken these guiding principles and applied them to their professional standards doctrines. Boards also appoint professional standards committees to police the actions of agents based on the rules of conduct built around the code of ethics.

CREA describes the code this way:

CREA’s REALTOR^® Code has been the measure of professionalism in organized real estate for over 40 years.

A REALTOR’s^® ethical obligations are based on moral integrity, competent service to clients and customers, and dedication to the interest and welfare of the public.

The REALTOR^® Code, by setting high standards of professional conduct for REALTORS^®, helps to protect Canadians' rights and interests. It also creates a level of trust between REALTORS^® and their clients.

There have been instances where a member of the public contacts me with a complaint, and it becomes evident that the designated agent they were dealing with did not instill a level of trust in their relationship with their client. As a result, as soon as something did not go as planned, the agent was seen as acting outside of the standards and values of the client. Even if nothing was done wrong in a technical sense, the client is left with a bad taste regarding their dealings with the agent.

When someone complains about unethical behavior to me, I will step back and picture the scenario from every angle possible. In most cases, after getting the details, it becomes clear that the agent was not acting unethically but rather, outside circumstances conspired to create that impression to someone that didn’t have the full details. As the saying goes, “There is always at least two sides to every story”. It is a rare occasion that I have found a REALTOR® acting intentionally against the well-being of others. It is for those occasions that the REALTOR® Code becomes a valuable tool in organized real estate.

Understanding the 28 articles in the CREA Code of Ethics is invaluable toward building a solid reputation as a REALTOR®. It is the ethical standard that sets us apart.

7 reasons to remember Dr. Steven R. Covey

Mon, 16 Jul 2012 21:47:52 GMT

As I write this, word has been released that Steven Covey has passed away. I am sure a lot will be written and remembered about this key figure in the world of self-help and motivation.

While Dale Carnegie may have been the God Father of the motivational book, Steven Covey was certainly this generation’s leading prophet, and one of the most influential writers in the genre. I can’t count the number of times that I have listened to “motivational” speakers and realize that they are simply regurgitating Covey’s concepts.

The great thing about Covey was his ability to take ideas and apply stories and thought pictures to help his audience understand how the idea is implemented into daily life. His seminal book, The 7 Habits of Highly Effective People, detailed a process with which to improve one’s business, attitude, and life in general. It was named the #1 most influential business book of the twentieth century.

Covey’s 7 habits of Highly Effective People are:

1. Be Proactive

2. Start with the end in mind

3. Put first things first

4. Think Win-Win

5. Seek first the understand, then to be understood

6. Synergize

7. Sharpen the saw

These habits have been often mistakenly referred to as “Success Habits”. Covey was very careful to establish that these habits are meant for living a life that has an effective impact, not necessarily one that is traditionally measured as successful. Roles models that Covey felt reflected an effective life were people like Mother Theresa and Gandhi. Canadian heroes that embody his principles would include the likes of Terry Fox or Rick Hansen.

The principles that Covey outlined in his books were not original, but the way that he compiled examples and process was. He introduced scores of readers to people whose writings helped to shape his principles of life. People like Viktor Frankl were Covey favorites because they provided key insights based on overcoming dramatic trials in real life.

Steven Covey’s website outlined his bio this way…

Recognized as one of Time magazine's 25 most influential Americans, Stephen R. Covey has dedicated his life to demonstrating how every person can truly control their destiny with profound, yet straightforward guidance. As an internationally respected leadership authority, family expert, teacher, organizational consultant, and author, his advice has given insight to millions.

Some of Stephen R. Covey's milestones:

Over 20 million books sold (in 38 languages)
The 7 Habits of Highly Effective People was named the #1 Most Influential Business Book of the Twentieth Century
Authored four titles with sales exceeding one million copies each: First Things First , Principle-Centered Leadership, The 7 Habits of Highly Effective Families, and The 7 Habits of Highly Effective People
Latest book, The 8th Habit , has sold nearly 400,000 copies
International Man of Peace Award
National Fatherhood Award (father of 9, grandfather of 44)
Author of the best-selling nonfiction audio in history (The 7 Habits of Highly Effective People)
No. 1 best-selling hardcover book on family (The 7 Habits of Highly Effective Families)
MBA from Harvard, doctorate degree from Brigham Young University
Board of directors for the Points of Light Foundations
Co-founder and vice chairman of FranklinCovey, the leading global professional services firm with offices in 123 countries
International Entrepreneur of the Year Award
Awarded eight honorary doctorate degrees

In my career as a Broker, Steven Covey has been a compass to help steer decisions in the right direction, and navigate through difficult interactions. I haven’t always been diligent enough to follow his advice or to prioritize my life in the way that he advised in his time management books, but at least knowing what needs to be done takes one part of the way there.

Steven Covey may now be gone in the sense of the material world, but his writings and insights will remain. His works will continue to be my recommendation to anyone looking to better their life.

Ari Lahdekorpi

Vancouver Market Favours Buyers Currently

Wed, 04 Jul 2012 15:31:00 GMT

The number of residential property sales hit a 10-year low in Greater Vancouver for June, while prices remained relatively stable.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales of detached, attached and apartment properties reached 2,362 in June, a 27.6 per cent decline compared to the 3,262 sales in June 2011 and a 17.2 per cent decline compared to the 2,853 sales in May 2012.

June sales were the lowest total for the month in the region since 2000 and 32.2 per cent below the 10-year June sales average of 3,484.

“Overall conditions have trended in favour of buyers in our marketplace in recent months,” Eugen Klein, REBGV president said. “This means buyers are facing less competition and have more selection to choose from compared to earlier in the year.”

New listings for detached, attached and apartment properties in Greater Vancouver totalled 5,617 in June. This represents a 3 per cent decline compared to June 2011 when 5,793 properties were listed for sale on the MLS® and an 18.9 per cent decline compared to the 6,927 new listings reported in May 2012.

At 18,493, the total number of residential property listings on the MLS® increased 22 per cent from this time last year and increased 3.7 per cent compared to May 2012.

“Today, our sales-to-active-listings ratio sits at 13 per cent, which puts us in the lower end of a balanced market. This ratio has been declining in our market since March when it was 19 per cent,” Klein said.

The MLSLink® Housing Price Index (HPI) composite benchmark price for all residential properties in Greater Vancouver over the last 12 months has increased 1.7% and declined 0.7% compared to last month.

Sales of detached properties on the MLS® in June 2012 reached 921, a decrease of 37.4 per cent from the 1,471 detached sales recorded in June 2011, and a 19.1 per cent decrease from the 1,139 units sold in June 2010. The benchmark price for detached properties increased 3.3 per cent from June 2011 to $961,600.

Sales of apartment properties reached 1,026 in June 2012, a 19 per cent decrease compared to the 1,266 sales in June 2011, and a decrease of 18.4 per cent compared to the 1,258 sales in June 2010. The benchmark price of an apartment property increased 0.3 per cent from June 2011 to $376,200.

Attached property sales in June 2012 totalled 415, a 21 per cent decrease compared to the 525 sales in June 2011, and a 27.8 per cent decrease from the 575 attached properties sold in June 2010. The benchmark price of an attached unit decreased 0.1 per cent between June 2011 and 2012 to $468,400.

Summer BBQ Tips

Tue, 26 Jun 2012 16:29:00 GMT

Now that the summer season is kicking off, it's time to get back in the grilling groove. According to the National Fire Protection Association, gas and charcoal grills cause more than 8,000 house fires each year. Before firing up the grill, homeowners should consider these safety tips:

Grills should be located no closer than 10' (3m) from any structure. Never use a grill under a porch, deck, overhang, carport, or in a garage. Make sure the grill rests on a stable surface and can't be tipped over.

Never use a propane or charcoal grill indoors.

Check hoses and connections on gas grills periodically throughout the grilling season. Replace any cracked or brittle hoses before using the grill. Propane cylinders should never be stored inside a garage or other structure at any time.

Start charcoal fires using a chimney starter instead of charcoal fluid. Not only is a chimney starter safer, but your meal will taste better. If charcoal fluid is used, never add it to the coals once the fire has been lit.

Once the grill is lit, never leave it unattended. It can take just a few seconds for a serious fire to erupt.

While lighting and cooking on the grill, do not wear clothes that are loose-fitting or that have wide sleeves that could catch fire. Use long-handled utensils to handle food while cooking. Wear close-toed shoes while at the grill - you can always change to flip flops later.

Control flare ups by lowering the heat on a gas grill. On charcoal grills, remove the food from the grill and distribute the coals more evenly. If necessary, a flare up can be put out with water from a spray bottle, but remove food from the grill first to avoid smoke contamination.

To help prevent grease fires, remove any accumulated grease and residue from inside the lid of the grill at least every 5-6 uses. Baking soda can be used to extinguish a grease fire still contained within the grill unit.

Always keep young children and pets away from the grill during and after cooking. The grill's exterior can remain hot long for a long time.

Gardening Tips for Home Owners

Tue, 05 Jun 2012 22:55:00 GMT

Spring and summer are when yards and gardens retake their rightful places at the center of attention. This month, Pillar To Post takes a look at several steps that homeowners can take to make their outdoor spaces and their home live compatibly.

Keep water away from the house

Be sure that the ground slopes away from the house all the way around the perimeter. This ensures that any moisture from rain and sprinkler systems will be directed away from the foundation.

The base of shrubs and other plantings should be kept at least 2' away from the foundation to avoid potential problems with roots and drainage. In addition, window wells should be kept free of debris and lined with gravel to help water drain out of the well and into the ground.

Do not leave sprinklers on for too long. Excessive water will not do plants and lawns any good, and may cause problems if there are drainage issues in certain areas.

The right plant in the right place

When a tree is growing very close to a structure, there can be potentially serious problems if the tree grows too tall or too wide for the space. Damage to eaves and roofs can be caused by overgrowth, and there is even a danger of branches or an entire tree falling onto the home. Existing trees should be professionally pruned to lessen the potential for hazard. When planting new trees, homeowners should research potential "candidates" to find how large the tree will eventually grow and make decisions accordingly.

Homeowners should also consider grouping plants that have similar water requirements to avoid overwatering plants that don't need as much. Not only will plants do better, but water bills will be lower over time as well.

Choose plants with maintenance in mind

Some plants end up requiring more maintenance than a homeowner expects. When selecting new planting material, homeowners should seek advice from qualified personnel at a local nursery who will know what plants will do well in their area, their growth habits and maintenance requirements.

Lawns should not be mowed too short or too frequently. Allowing the blades of grass to shade one another helps with water retention and allows grass to grow in more fully. Many newer turf grasses require less mowing than older varieties, and should be considered for new lawn installations. Homeowners can find out more at their local agricultural or extension office.

These are just some of the ways homeowners can increase the enjoyment of their outdoor spaces while ensuring that home and yard are in good shape.

RE/MAX Delivers a New Tech Tool to Help

Mon, 28 May 2012 23:04:35 GMT

Did you know that RE/MAX has launched a new tech tool that is a first in the real estate market in Canada? RE/MAX of Western Canada has recently launched its new Augmented Reality feature, ‘Live View’ on the free RE/MAX mobile real estate search app. This new feature is available on iPhone and Android devices.

How does it work? When looking through the camera view on your GPS enabled iPhone or Android phone you will be able to locate properties for sale and displays the listing information on top of the physical property that you are standing in front of. The app allows you to save the property in a list of ‘Saved Listings’ which can be connected your remax.ca account making it easy to reference while in the application or on a computer. You can also request more information on the property and have a RE/MAX agent contact you.

This app will be particularly helpful when one is looking for active condo listings in the larger buildings in the Vancouver Downtown area!

Download the free RE/MAX application onto your device. Visit www.remax.ca/wc/mobile.htm or the iTunes App Store or Google Play store.

The Year of the Dragon

Tue, 24 Jan 2012 10:47:05 GMT

According to the Chinese calendars, we are now into the new lunar new. This year is the zodiac sign of the Dragon. More specifically, it's the year of the Water Dragon.

Dragon years are believed to be years that are very strong in business and in starting families. To have a Dragon year baby is considered good luck under Chinese traditions. It is also a good time to engage in business ventures. While relying on zodiac mythology might not be the best business model to follow, how can one argue with thousands of years of traditional experience?

If indeed the 2012 Dragon Year is to be a prosperous one for families and business...we are off to a great start in the Real Estate Industry! Interest rates continue to be at historic lows, and the demand for housing in the BC lower mainland doesn't show any signs of letting up it's frantic pace in the near future. The basic economics of supply and demand continue to energize the market. So far, in the early weeks of this new year we are seeing multiple offer situations ocurring, and lots of activity at open houses. While the listing inventory is beginning to stock up after the Christmas lull,with these favourable conditions the supply will be outweighted by the demand in short order.

If you have been sitting on the fence about acquiring some real estate, this is the year to make that decision. I doubt that we will see another moment like this for decades to come. The Dragon is speaking to us!

Balance was the name of the game in 2011

Wed, 04 Jan 2012 15:49:00 GMT

Balanced real estate market prevailed through much of 2011

The 2011 Greater Vancouver housing market began with heightened demand in regional hot spots and concluded with greater balance between seller supply and buyer demand.

The Real Estate Board of Greater Vancouver (REBGV) reports that total sales of detached, attached and apartment properties in 2011 reached 32,390, a 5.9 per cent increase from the 30,595 sales recorded in 2010, and a 9.2 per cent decrease from the 35,669 residential sales in 2009. Last year’s home sale total was 6.3 per cent below the ten-year average for annual Multiple Listing Service® (MLS®) sales in the region.

The number of residential properties listed for sale on the MLS® in Greater Vancouver increased 2.7 per cent in 2011 to 59,549 compared to the 58,009 properties listed in 2010. Looking back further, last year’s total represents a 12.8 per cent increase compared to the 52,869 residential properties listed in 2009. Last year’s listing total was 11.1 per cent above the ten-year average for annual Multiple Listing Service® (MLS®) property listings in the region.

“It was a relatively balanced year for the real estate market in Greater Vancouver with listing totals slightly above historical norms and sale numbers slightly below,” Rosario Setticasi, REBGV president said.

Residential property sales in Greater Vancouver totalled 1,658 in December 2011, a decrease of 12.7 per cent from the 1,899 sales recorded in December 2010 and a 29.7 per cent decline compared to November 2011 when 2,360 home sales occurred.

More broadly, last month’s residential sales represent a 34.1 per cent decrease over the 2,515 residential sales in December 2009, a 79.4 per cent increase compared to December 2008’s 924 sales, and a 12.6 per cent decrease compared to the 1,897 sales in December 2007.

The overall residential benchmark price, as calculated by the MLSLink Housing Price Index®, for Greater Vancouver increased 7.6 per cent to $621,674 between Decembers 2010 and 2011. However, prices have decreased 1.5 per cent since hitting a peak of $630,921 in June 2011.

“Our market remained in a balanced state for most of the year, although higher levels of demand for detached properties in the region’s largest communities caused prices in certain areas to rise higher than others,” Setticasi said. “For example, the benchmark price of a single-family detached home experienced double-digit increases in nine areas within the region over the last 12 months.”

New listings for detached, attached and apartment properties in Greater Vancouver totalled 1,629 in December 2011. This represents a 4.1 per cent decline compared to the 1,699 units listed in December 2010 and a 49.4 per cent decline compared to November 2011 when 3,222 properties were listed.

Sales of detached properties in December 2011 reached 630, a decrease of 18.1 per cent from the 769 detached sales recorded in December 2010, and a 30.2 per cent decrease from the 902 units sold in December 2009. The benchmark price for detached properties increased 11.2 per cent from December 2010 to $887,471.

Sales of apartment properties reached 774 in December 2011, a decline of 4.6 per cent compared to the 811 sales in December 2010, and a decrease of 32.9 per cent compared to the 1,154 sales in December 2009.The benchmark price of an apartment property increased 3.7 per cent from December 2010 to $401,396.

Attached property sales in December 2011 totalled 254, a decline of 20.4 per cent compared to the 319 sales in December 2010, and a 44.7 per cent decrease from the 459 attached properties sold in December 2009. The benchmark price of an attached unit increased 4.2 per cent between December 2010 and 2011 to $511,499.

Why list your property during the "Quiet" Holidays

Wed, 28 Dec 2011 14:07:57 GMT

1. Holiday house hunters are typically serious home buyers, they aren’t going to be looking during the holiday season unless they really want/need to buy.
2. Your home will likely feel very homey during this season (as long as you don’t go Clark Griswald on the neighborhood).
3. Showing may actually be easier than you think if you are planning on spending any time away visiting others during the holidays…your home becomes a “go and show” when you are out of town and is always show ready.
4. Many of your neighbors will be having family and friends over for parties and such…if they love the neighborhood and see your for sale sign…you might just get some interested buyers.
5. Let’s not kid…your house will smell amazing with all the pumpkin pies, sugar cookies, and breads you will be making
6. Lots of people get Christmas bonuses and some will likely plan to use theirs as a down payment…get those folks interested now, while they have the money!
7. You don’t have to worry about any yard maintenance or up keep because your yard is likely dead, your leaves are already raked and flowers won’t be blooming for a while.
8. You can always ask Santa for a ready, willing and able buyer.
9. People are generally happy during the holiday season, happy people make happy home buyers.
10. The majority of folks will think this is a bad time to sell a home so they will take their homes off the market or wait to put them on the market….this means you will have much less competition.

The Reality of Ownership

Tue, 28 Jun 2011 16:23:00 GMT

What is home ownership in Canada? We speak of the bundle of rights that comes with ownership, we detail different types of rights to a described piece of land, even the air above a piece of land, and the depth to which ownership rights sink into the soil and minerals below. What does it really mean to own real estate in this country? Why is it important to us as a culture and a society to be able to claim ownership on real property? What are REALTORS® really selling?

It is fascinating to ponder what ownership of property really is. What I have seen is this; the homeless on Hastings Street in Vancouver, clutching their cardboard, garbage bags, and shopping carts. Their sense of security and shelter differs greatly from the general population that surrounds them. Looking up from Hastings Street one can see the condominiums looking down. These monolithic structures contain layers of strata owners claiming ownership to what is essentially a piece of air for over half a million dollars or more. The condos hang over a mere footprint on a piece of land. It’s a far cry from what property owners a few generations back would have considered ownership of real property. Seeing this dichotomy raises the question: who has a more defined de facto ownership of property, the street person with their nomadic and unfettered existence on their stake of a piece of public property or the de jure property owners in the apartments above?

If the aforementioned strata owners don’t pay the mortgage, they could lose their right of ownership. If any property owner in Canada doesn’t pay their taxes to the crown, or the local governing body, they could lose their rights of ownership as well. The fact that the sovereignty can come and reclaim property ownership due to unpaid taxes is a throwback to the feudal system of ownership in practice. Despite the words, paper trail, and legal constructs, in many respects ownership of land is really just a fabrication of our society. One could argue that despite the protection of modern terms and conditions, the average Canadian can only rely on the security of ownership as long as regular dues are paid to the sovereignty. That in addition to the concept of Government appropriation, does lead to the question of what we really purchase when we claim title to real property. If home or property ownership in our Canadian cultural context is nothing more than a legal construct based on Medieval foundations, what are the rights that one “buys” when a name is printed onto a deed of land?

Ownership in a property can take a number of forms, such as sole ownership, joint ownership, communal property, or leasehold. These different types of ownership may complicate an owner's ability to exercise their bundle of property rights. For example, if two people own a single piece of land as joint tenants then, each may have limited recourse for the actions of the other. This is often the problem in divorce settlements. Traditional principles of property rights include: the control of the use of the subject property; the right to any benefit from the property; a right to transfer or sell the property; and a right to exclude others from the property.

In his book, The Common Law, Oliver Wendell Holmes describes property as having two fundamental aspects. The first is possession, or de facto property, and the second is title, or de jure property. In Manitoba a buyer will first claim possession of a subject property, and then a few weeks later, the title will finally be registered. In BC it is not uncommon to see different dates, usually just a few days apart between possession and completion of the transfer of title.

In every culture ownership and possession are built upon custom and regulation, both legal and social. Many tribal cultures balance individual ownership with the laws of the specific collective be it tribal, family, associate, or national. For example the 1839 Cherokee Constitution frames the issue in these terms: “The lands of the Cherokee Nation shall remain common property; but the improvements made thereon, and in the possession of the citizens respectively who made, or may rightfully be in possession of them, (shall be respected)”.

Different societies have different theories of property for differing types of ownership. It does appear universal that property ownership is not a relationship between people and things, but a relationship between people with regard to things. What someone purchases in Canada when they “buy a home” is not the physical property, but rather a bundle of rights. It is the legal permission from society and the crown, to have the prescribed usage of a defined “place” for whatever the set term is.

Despite the abstract notion of modern ownership and the ubiquitous tax bills and operating expenses, we are driven by the hunger to have something that we can truly call our own. This desire to own real property is not a universal need, as the nomadic tribes in the arctic or the desert demonstrate. However, the need for safety and shelter is a primal and instinctive motivator.

In his 1943 paper entitled, A Theory of Human Motivation, Abraham Maslow introduced the conceptual model for the importance of certain basic needs that a person is instinctively driven to obtain. In the mid-fifties, he expanded on his theory in his book, Motivation and Personality. It has become a well received and respected theory that has had a substantial impact on many other theories of human developmental psychology. Abraham Maslow’s theories focus on describing what the drivers are in our motivation in various stages of our development.

It’s interesting that Maslow studied well adjusted and exemplary people to arrive at his concept of a Hierarchy of Needs, rather than people that were psychologically damaged. In some respects this fact helps to cement the universal nature of the motivational strata that he envisioned.

Maslow’s Hierachy of Needs is usually depicted as a pyramid, with a human’s most basic needs on the bottom platform, and as the pyramid narrows the needs become more esoteric. He placed self realization needs at the top of the pyramid, while physiological needs were foundational. Some have criticized his placing self realization as a “top tier need” as being ethnocentric, or possessing some cultural bias; but no one argues that needs such as food, shelter, and safety are basic motivations in life.

So according to Maslow’s Hierarchy of Needs, the need for shelter is a foundational driver. It is a fundamental motivation in life along with food and safety. These are the ingredients that fuel the hunger for real estate. One could postulate that this primal need accounts for the wars over borders, and the arguments over hedges and fence posts. Countless neighbours have done each other harm over a few inches of lawn, alongside with countries arguing over rocky islands that are inhabited primarily by gulls and clams. History is full of unfortunate battles over real estate. It’s no wonder that dealing with competing offers in a real estate transaction can be so volatile.

The indigenous peoples that had the embarrassment of riches in their unfettered use of large tracts of land seemed to take its availability for granted. The nomads and the gypsies also had an abundance mentality that saw the countryside not as a series of parcels of separate ownership rights, but rather as a shared resource. For these social groups the need for safety and shelter did not tie itself to a quantified lot or acreage, but was shared in a larger global sense. Maslow in studying the elite Europeans and Americans in his theory did not delve into how the pyramid of needs may motivate responses based on cultural elements.

The need for safety and shelter, while it can claim its roots inside the development of the legal constructs of real estate is not the only motivational driver in building a real estate industry. Canadian culture and social convention have added to the primary need for shelter with the notion of self-esteem associated with property ownership. As most Canadians find their primary needs of food, safety and shelter satisfied, they climb Maslow’s Hierarchy of Needs to the upper tier motivational level of self-esteem. As we place our sense of self-worth into the equation, the desire for ownership of property increases. There is no greater flag of conspicuous consumption than the deed to a piece of property in a desirable location.

Considering all of this makes one appreciate that this business is a complex one, built from a primal need to claim a nest,(and then possibly a castle for our self-esteem needs), but it is all for something that can be called “home”. Our cultural and societal motivators drive the real estate industry. This industry will remain strong for years to come because its foundations are primal motivators. The REALTOR ® that appreciates and responds to this will always find a livelihood and a deep satisfaction in knowing that they are fulfilling a deep rooted hunger.

Sellers Beware!

Fri, 13 May 2011 14:13:36 GMT

Sellers Beware!

Written by Kevin Marron Issue Date: May 2011

Illustration: Matt Daley

It’s an uncomfortable fact of life that anyone buying into a new condominium development must sign a contract and put down a deposit, sight unseen, years before they can move into a completed building. That’s because pre-sales are routinely required by banks and other lenders that don’t want to advance funds without the security of knowing units will be sold. But the uncertainties involved in this practice are a frequent source of frustration for purchasers and developers alike all over Canada, often leading to disputes and lawsuits.

The old adage of “buyer beware” goes out the window, says Mark Thompson, a partner with Singleton Urquhart LLP in Vancouver. “The property is simply an idea, a business plan, a concept, a set of architectural drawings, which could be changed in the actual building. And it’s only possible to say to a purchaser ‘Do your own due diligence on this,’ if you have a completed property.”

Nowhere is this issue as hot as it is in British Columbia, where a boom and bust in the property market, together with concerns about leaky condos and other construction defects, has ratcheted up the risks for all concerned. These risks were recently highlighted by a B.C. Supreme Court decision that will make developers evermore cautious of the stringent disclosure rules imposed by the province’s Real Estate Development Marketing Act (REDMA). This legislation, introduced in 2004 to protect consumers buying pre-sale condo units, places strict requirements on developers to provide purchasers with full disclosure statements and allows purchasers seven days to rescind after signing an agreement. It also gives them the right to get out of the contract at any time if the developer has not met all obligations imposed under the act. “The act is clearly designed to make sure that the buyer who is pre-buying is given the full goods and the onus is definitely on the developer here to be very stringent with disclosures,” says Thompson.

Christopher Johnston, assistant chairman of the pre-sale condo litigation group at Harper Grey LLP in Vancouver, has been tracking case law on the legislation and observes that there were very few cases before 2009, while there has been a series of court rulings since then “all dealing with different issues but all finding in favour of the retail purchaser and their rights to disclosure.”

The reason for the renewed interest in REDMA litigation is obvious. Before the market slumped in 2008, condo prices were soaring and purchasers were happy to hang onto or profit from a great investment. Now, it’s the opposite. Condo prices have dropped dramatically and purchasers are finding their units are no longer worth what they agreed to buy them for in the pre-sale contracts. So many people “are looking for whatever means they can to get out,” says Thompson.

The decision in Ulansky v. Waterscape Homes Ltd. Partnership will make it easier for purchasers to get out of their deals, according to Damon Chisholm, an associate specializing in commercial real estate at McMillan LLP’s Vancouver office. The case involved a dispute over whether the developer of an 18-storey building, part of a nine-phase condo development in Kelowna, B.C., provided full disclosure regarding the risk that owners may decide to rent out their units on a short-term basis. The developer had provided assurances in the pre-sale disclosure statements that the building was not designed for, or intended to be used for, hotel-style short-term rentals. In the municipal development permit it was described as a multiple-unit residential dwelling tower. But the court found the disclosure statement failed to point out that a secondary permitted use under the municipal zoning was “hotel/motel accommodation within a multiple residential unit.” This would make it possible for owners to rent out their units and for the strata board to allow this practice.

The court accepted the evidence of the 12 plaintiffs in the case showing that short-term rentals were occurring and were permitted in the building — and that building permits were being issued for that purpose. The pre-sale contracts were ruled unenforceable and the developer ordered to return all deposits to the plaintiffs.

Chisholm does not question the plaintiffs’ motives. He says he understands owners of condo units may feel that vacant landlords or transient occupants of a rental unit will not take good care of the building. However, he says, the ruling will “open the floodgates” to other people who don’t necessarily care about short-term rentals but want to walk away from their contracts for other reasons.

What the ruling does, according to Chisholm, is clarify the position of the B.C. courts on how much detail must be provided in a disclosure statement. Until now, he says, many developers have presented details that they considered relevant and not necessarily followed all of the formal requirements set out for disclosure statements under the act. In this case, the developers apparently overlooked the possibility that secondary uses permitted under the municipal bylaw could be a material fact that should be included.

The risk to developers of missing some relevant detail is particularly serious because REDMA does not require that purchasers prove they were relying on the misrepresentation contained in the disclosure statement. “None of these purchasers who got out of this contract need to argue, ‘Had I known short-term rentals would be allowed I never would have bought.’ That’s irrelevant. The fact that the developers missed doing something required by them under the act allows a purchaser to get out,” says Chisholm. As a consequence of this ruling, Chisholm says he is advising developer clients to “list everything” in their disclosure statements. For example, he says they would be better off “actually copying and pasting the zoning, as opposed to paraphrasing and running the risk that you get it wrong.”

Developers are beginning to get the message, says Johnston: “They’re disclosing everything because they’re so nervous of being offside of the act.”

Meanwhile, in Ontario, where pre-sale disclosure rules are embedded in the province’s Condominium Act, purchasers are having much less success when they take developers to court, according to Gerald Miller, managing partner and head of the real estate practice at Toronto-based Gardiner Miller Arnold LLP. “There’s lots of litigation over this type of thing and the consumer generally loses,” he says. But Harry Herskowitz, senior real estate counsel at DelZotto Zorzi LLP in Toronto, says this is probably because purchasers didn’t review their documents carefully enough or failed to retain a solicitor when they originally signed the pre-sale agreement. When they get to court, he says, they are likely to find that the matters they are complaining about were adequately addressed in the disclosure documents. “Requiring even more disclosure will not necessarily add to the ultimate level of the purchaser’s true understanding or comprehension of the condominium issues involved,” he says.

Johnston, in Vancouver, agrees that longer, more detailed disclosure documents could be harder for purchasers to understand — if they bothered to read them. He says only two out of 200 clients he has seen on pre-sale matters actually brought him the pre-sale documents before locking themselves into a deal. “People are, unfortunately, putting more thought into buying rain gear to go hiking than they are to a half-million-dollar condo,” he says.

That may not matter so much in B.C., however, because REDMA’s consumer protection provisions are strong enough that it is the seller, rather than the buyer, who has the greatest reason to beware.
kevin@kevinmarron.com

The Trust Continuum

Thu, 31 Mar 2011 13:25:16 GMT

The Trust Continuum

Over the years I have watched real estate practitioners come and go. Some have built amazing careers that seem to have no limit their growth, and others never find any type of appreciable trajectory. The difference between those that reach the pinnacles of success, and those who remain mired in dark valleys of defeat seems to be almost unappreciable.

The long term success of a REALTOR® in the business of real estate doesn’t appear to have anything to do with educational levels, physical attributes, ethnic background, or social class. I have seen many instances of agents with poor grooming, lack of social graces, even with speech or other physical impediments reach truly stellar levels of success, while others that seem complete on the surface are left behind. So, the question is; what is the magic powder, the key to success in real estate?

The one attribute that appears to weave itself into every successful agent I have ever encountered is the ability to instill trust. The ability to present oneself in a genuine and competent manner, a manner that says, “I am reliable, honest, and will protect your interests at all costs”. The aura of trustworthiness crosses boundaries of race, class, education, and even health. For those who have the trust continuum built into their character, a long term career in real estate is guaranteed.

So, if developing a trust continuum is so vital to a real estate career… what is it really?

The definition of trust in psychology is based on believing that the person who you trust will do what you expect. It starts at the family level and grows to others after the early years of development. The ability to place trust in others is a key element to a healthy socialization process.

Trust is also integral to the idea of social influence. The fact of the matter is that it is easier to influence or persuade someone who has developed a sense of trust in you. The real powerhouse REALTORS® create that sense of trust in their clients. Perception of honesty, competence and common values are essential. Once trust is lost, however, it is very hard to regain.

Being and acting trustworthy should be considered the only sure way to develop a trust continuum with your clients. Stephen Covey has a great way of describing trust. He calls it the emotional bank account. One puts in deposits of trust, or makes withdrawals, based on responses to perceived actions. Where trust is absent, projects can fail, especially if this lack of trust has not been identified and addressed. Individuals that are in relationships characterized by high levels of social trust are more apt to openly exchange information and to act with caring benevolence toward one another than those in relationships lacking trust.

A key element in developing a trust continuum with your clients is being reliable. Philosopher Annette Baier has made a distinction between trust and reliance by saying that trust can be betrayed, while reliance can only be disappointed. Nonetheless, being reliable is a powerful tool in building trust with a client, while the reverse can destroy trust and empty out the emotional bank account.

In the discipline of economics, trust is seen as an economic lubricant, reducing the cost of transactions, enabling new forms of cooperation and generally furthering business activities, employment and prosperity. This observation created a significant interest in considering trust as a form of social capital and has led to research into a closer understanding of the process of building trust. It’s been claimed that higher levels of social trust are connected to economic development. It is widely accepted and demonstrated by economists that social trust benefits the economy while a lower level of trust inhibits economic growth. Trusting less leads to the loss of economic opportunities, while on the other hand trusting more creates the risk of unnecessary vulnerabilities and potential exploitation.

It’s worth noting that when someone says, “trust me” most people won’t. Trust can’t be forced. Building trust is something that must be demonstrated in many little ways. The subtle clues like eye contact, and body language play an important initial impression of trust worthiness. Even something as simple as showing up on time for appointments helps to demonstrate to others that they can rely on you and hence create the building blocks of a trust relationship.

The life of a REALTOR® becomes much easier when you have won the trust of clients, and peers. The majority of the calls that a manager or broker will receive are based on agent to agent or agent to consumer mistrust. Gaining and retaining trust makes the job easier, and makes life less stressful. It’s clear that the one ingredient that makes the secret sauce for all top producers is the trust continuum.

Supply and Demand

Tue, 15 Feb 2011 13:32:49 GMT

Vancouver continues to be one of the most interesting case studies in North America for Real Estate activity. Predictions abound about the vulnerability of the Vancouver market. Many call the hot market, "a bubble", but from where I stand, I don't see Russia...only the horizon.

The unique Vancouver combination of being the primary Pacific port in Canada, locked into a narrow crease of land between mountains and waterways, and being the most temperate climate in the country make it a compelling location for migrants. In deed many point to the "investor class" migrants who see Vancouver as a destination of choice in Canada as being a primary factor in rising house prices. This is just one factor among many for the climbing sticker price on Vancouver properties.

A year ago Vancouver was the host city to the Winter Olympics. This cast a concentrated focus on this mountain city by the sea. Not surprisingly since then, prices have continued to climb. Some neighbourhoods have seen double digit growth in already comparatively high prices. The Vancouver westside neighbourhood has some of the most expensive "dirt" in the country. Builders and investors look to purchase lots in some of the more mature neighbourhoods in the hope of tearing down the older home and building a newer luxury class dwelling. The problem continues to be that demand outpaces supply.

Multiple offers and bidding wars continue to push prices skyward. As long as affordability remains in reach, Vancouver will continue to demand the highest property values in Canada. Scarcity of supply that meets an overabundance of demand is always the recipe for accelerated prices. That fact doesn't appear to change anytime soon in Vancouver. Not surprising...given that this is best place on earth!

Changes to the Canadian Mortgage Rules

Mon, 17 Jan 2011 10:26:39 GMT

New federal rules have come into play as a result of government concern over rising consumer debt levels. Three new changes to Canada's mortgage rules are an attempt by Finance Minister, Jim Flaherty to create some “moderating” impact on the Canadian housing market.

These new federal rules will reduce the maximum amortization period to 30 years from 35 years for government-backed insured mortgages with loan-to-value ratios of more than 80 per cent.

Secondly, Ottawa will lower the maximum amount Canadians can borrow in refinancing their mortgages to 85 per cent from 90 per cent of the value of their homes.

Thirdly, Ottawa will withdraw government insurance backing on lines of credit secured by homes.

Though longer amortization periods reduce monthly payments, they greatly increase the amount of interest paid over the life of the mortgage and make it harder to build up equity.

The average Canadian resale home sold for $344,551 in December. Assuming a five-year mortgage at 4 per cent interest, and the minimum 5 per cent down payment of $17,227, a 35-year mortgage would have monthly payments of $1,441. Shorten the amortization period to 30 years, and the monthly payment increases to $1,555.

Mr. Flaherty said his concern is not Canada's mortgage default rate - which is less than 1 per cent. Rather his concern is those who are borrowing as much as possible.

"We're seeing people borrow to the max, and borrowing to the max at low interest rates," he said. "Most Canadians are not doing that."

He said the changes will not take effect immediately because of a requirement to give the industry 60 days notice before making policy changes of this nature.

He said past experience suggests there is no need to fear a rush on 35-year mortgages before the new rules take effect.

In addition to cutting mortgage terms, Ottawa is taking action to reduce the rapid rise in home equity lines of credit, or HELOCs. The government will do this by clamping down on the insurance that Canada Mortgage and Housing Corp. offers to the lines of credit.

Home-equity lines of credit and loans have surged in Canada, rising at almost twice the pace of mortgages over the past decade to account now for 12 per cent of overall household debt.

The third measure that will reduce how much Canadians can draw on their home equity. Last February the Finance Department announced that it would lower the maximum amount Canadians could withdraw in refinancing their mortgages to 90 per cent from 95 per cent of the value of their homes. It is now reducing that maximum to 85 per cent from 90 per cent.

The Problem Cognoscente

Fri, 10 Dec 2010 18:16:46 GMT

The Problem Cognoscente

If nothing else, Realtors® are skilled problem solvers. The one trait that glues together all of the successful agents across Canada, it is the ability to work through the myriad of roadblocks that confront what seems like a simple task, that of bringing buyers and sellers together on a transaction within a given time frame.

Keeping a real estate deal together, and navigating through the increasingly complex minefield of laws, and restrictions that surround the real estate industry is not a task that can be accomplished effectively without logical and creative problem solving skills, along with a strong emotional foundation.

I commented to one of our seasoned agents on how unflappable he seemed in the face of the activity that surrounds him. His response was a shrug of the shoulder and the comment, "If there is an obstacle, you just have to work around it, that's all." That sums up nicely one of the key skill sets to an effective long term real estate career.

It is so very true that although you can't control the circumstances around you, you can control their impact on you. There is nothing more valuable than clear headed thinking in the time of crisis. The ability to not throw up your hands in surrender, or run away when the bullets are flying around you can come only with experience, training, and mental attitude. The storybook and film maker image of the steady handed protagonist that guides the frightened hoards through a crisis is not entirely fictitious. The hero of the real estate deal is a real life agent who doesn’t allow emotional pressure to impact on their rational and logistical task of serving their client’s best interests through to the completion of the transaction.

Problem solving is a mental process. Considered the most complex of all intellectual functions, problem solving has been defined as a higher-order cognitive process. It is a process that has been studied by psychologists over the last hundred years, as well as by computer programmers trying to perfect the latest artificial intelligence algorhythms. In fact the key to internet giant googles success is in the top secret A.I. code that they have perfected to solve the problem of searching the internet for information that is not tainted by spammer tricks. Make no mistake, problem solving is an intelligence market of the highest order.

Early experimental work centered on simple tasks so that researchers could analyze and capture real-world problems by understanding the cognitive processes involved. In clinical psychology, researchers have focused on the role of emotions in problem solving. D'Zurilla, Goldfried and Nezu published findings in the early seventies and eighties demonstrating that poor emotional control can disrupt focus on a target task and impede problem solving.

Human problem solving consists of two related processes: problem orientation, (the motivational/attitudinal/affective approach to problematic situations) and problem-solving skills,( the actual cognitive-behavioral steps, which, if successfully implemented, lead to effective problem resolution). Researchers in neuropsychology have found that frontal lobe injuries will cause deficiencies in emotional control and reasoning. Those findings have concluded that one’s emotional state can impact on the ability to solve problems.

Researchers have also learned that the problem solving process differs across domains and levels of expertise and emotional wellness. There can be no universal answer to why one can resolve problems under a crisis management mode more efficiently than another. It is clear however, that experience in problem solving in a given discipline helps to calm the emotional impact of confronting problems.

Difficult problems have some typical characteristics such as; lack of clarity of the situation, multiple objectives, decisions hierarchy, communication breakdown, and dynamic unpredictability. In all of these characteristics the resolution of difficult problems requires a direct attack on each that is encountered.

"A solution, to be a solution, must share some of the problems characteristics." - Richard L Kempe.

Even more than the emotional steadiness and expertise that a skilled problem solver must have is the creative mental process of creating a solution to a problem. Creative problem solving is a special form of problem solving in which the solution is independently created rather than learned with assistance.

Creative problem solving always involves using the creative side of the brain. To qualify as creative problem solving the solution must either have value, clearly solve the stated problem, or be appreciated by someone for whom the situation improves. These are all traits that apply readily to the real estate trade. The situation prior to the solution might not even be recognized as a problem. Alternate labels for hidden problems include words like a “challenge, an opportunity, or room for improvement”.

A good REALTOR® knows from experience that one must be aware of the unintended consequences in any action or inaction. Sometimes a small detail can impact on many elements of a successful transaction with a ripple effect. This is pre-emptive problem solving that can only be done through experience or training.

The value of a real estate professional is much deeper than the average consumer sees on the surface of a problem free transaction. It could be stated that a good agent is a problem cognoscente in the best sense of the word.

How to be the BEST

Fri, 05 Nov 2010 16:02:29 GMT

RE/MAX is the number one Real Estate Franchise on the planet...that is an undisputed fact. However, the reason for the Franchise's greatness lies at the grassroots, in the quality of the REALTORS(r) its associate Brokerages have been able to attract. After watching these amazing professionals work their magic for several years, these are the traits that I have seen surface among the cream of the crop...

1. Create a positive attitude. Research shows that most failure in business stems from an attitude problem. A positive attitude looks for solutions to problems, and is not de-motivated by them.

2. Stay Motivated. The RE/MAX organization has seen this as a key element to building it's sales force around the world. The tools that are available to offer encouragement and motivation to our agents is unmatched. That is why year after year, the top agents in Canada are usually RE/MAX agents.

3. Have Integrity. Always tell the truth and maintain your ethical standards. Face up to mistakes right away and take immediate steps to correct them.

4. Be consistent. Know your strengths and weknesses and focus on tasks that you do well; delegate those tasks that you don't do well. Stay on track.

5. Expect Success. The top challenges in life are to manage your expectiations and to mange the unexpected...this will determine your results.

6.. Manage Relationships. Get to know people by taking a genuine interest in them. Allow your spontaneity to show others how to be positive and upbeat. The top agents are truly nice people!

7. Use Team Skills. A healthy team attitude begins with a solid commitment to help other team members win. You may see the agent, but you don't see the hundreds of support players behind him.

8. Have Vision. People are driven by visions of improvement...lead others to better solutions by offering a clearer vision. Have a clear vision and you will rise to the top. Focus turns light into a laser.

9. Follow up. Listen carefully to what people are asking. Repeat their needs back to them and explain how you will solve them.

10. Practice Self-Improvement. Always keep your temper in check, speak calmly and stay focused on learning. RE/MAX has a slogan that says, "The more you learn, the more you earn."

These are just brief lessons from the amazing agents at RE/MAX Select Properties. They are a guide book by example of how to be the best!

In Praise of Commission Sales

Thu, 23 Sep 2010 13:05:19 GMT

Its seems that every few years someone comes along with a concept or a business model to improve on the tried and true compensation method that has worked best for the Real Estate Industry over the last hundred years. The means of compensation paid for the services of a Real Estate agent has been based on a ‘payment for results’ model. When the sales representative for a Brokerage is successful in putting together (and keeping together) a transaction, they receive a benefit for their efforts. If their efforts fall short, in that a completed sale does not occur, they do not receive any compensation for their time or expenses. Under the common business model in the industry, the degree of success speaks for the degree of financial reward a Brokerage receives annually.

Although this method has been ubiquitous for almost a hundred years in Canada, it has existed in some form or another since the advent of commerce in society. Some within the real estate industry have experimented with different models of compensation to less effective results.

In England during the Middle Ages King Alfred ordered every man to give his allegiance to a lord in exchange for mutual benefit. This benefit included the right to protection from raiding parties, and the right to occupy and cultivate a piece of land in the Serfdom. In turn the lord was allowed to collect taxes in some form and turned them over to his king. The King would then pay a commission based on the results of the lord’s efforts. This commission was a percentage of the taxes as well as gifts of land or other items of value in some cases. The idea of performance based pay grew from these types of models.

When society emerged from the Middle Ages and shook off some of the elements of the Feudal system, the lower class was elevated in that they had acquired rights to the land they farmed. As the market economy evolved and the middle class established itself, the need for a good negotiator acting as a middle man between various interests grew. When the Black Death and the Bubonic Plague thinned out the body of available workers, all wages increased. In spite of the efforts of the kings and lords, change continued and serfdom ended by the 1500's. The economics of the times continued to encourage the development of a middle class and land ownership beyond that of the lords and crown. Pulled along with this fundamental change the idea of commissioned wages continued to grow.

Historically commission wages based on results have brought the most creative and entrepreneurial to the top. When a Seller decides to dispose of land holdings, they look for a combination of the highest market price, the least risk on their end, and the most efficient process. Any other compensation model will not address these desired elements as effectively as a commission based model.

When a compensation model has a pay as you go component, it inadvertently creates a lack of urgency on the part of the agent. The longer a product is listed, the more compensation is earned. Any type of compensation model that offers a flat fee or ala carte type of formula removes some aspect of motivation or creative thinking on the part of the agent. It is not a question of the dollar value of the outcome, it is a motivational incentive that is of the greatest import.

If a Seller wants to feel totally comfortable that an agent is working to gain the highest possible price for their home, and not just make a sale, then a percentage based on the sale price offers the best protection. If a Seller wants to have the least up front risk, or out of pocket expense, then a results based model is the most desirable. When a payment can be made out of the proceeds of a successful transaction, the actual impact on the Seller’s cash flow is minimal.

If a real estate agent was paid on an hourly or service based model, the performance would not compare to the success achieved under a results based model. It is little wonder that the real estate industry has not moved from commission based compensation despite the other forms of business models that have come and gone over the years.

There is no doubt that commission based sales provide both the Client and the Agent the best solution for the complex territory that real estate industry covers.

Gazing into that Crystal Ball

Thu, 19 Aug 2010 19:23:39 GMT

CMHC Housing Outlook Session: Forecast for Vancouver Housing Market

August 18, 2010

Presenter: Robin Adamache Senior Market Analyst for Vancouver Region

August 18,2010, Vancouver - Senior Market Analyst, Robin Adamache began her session by talking about the overall economy in BC. Real GDP up 2.7% in BC although what happens in the USA affects us directly in GDP, so predictions must be done with an eye on how conditions are in the States.

Lower mainland is looking forward to 29 Billion in major projects in the next year…including the New Surrey Hospital and the Evergreen Line. Job growth is at 2% vs. a decline last yr of half a percent. Good solid full time jobs are being created, Ms Adamache quipped that these were not “McJobs”.

Migration growth continues at the same pace as last year’s 58 thousand new migrants into Vancouver area. There will be approx 18 thousand new households in need of housing each year over the next few years if not longer.

The CMHC expects that there will be a gradual increase in interest rates next year. Robin made a point of reminding everyone that interest rates have been at a historic low for a sustained period of time. Any increases will be gradual, but they are expected.

Canada remains about 20 times lower than the US in mortgage defaults. In short, Vancouver has a stable economic environment. There are lots of people moving here and buying here. The question was asked, “Who is buying?” 6% of existing Vancouverites plan to buy. One third of buyers will be first time home buyers, while sixty percent are move-up buyers, and 25% are downsizing.

Despite all of this seeming good news, the reason it is not a crazy hot market is partly due to the changes in lending policies, and the rise in interest rates. The market is in the “balanced” range of 40 to 60% of the sales to listings ratio. Prices will rise next year at about the rate of inflation. There is an ample supply of listings in the West Side. Peak prices were reached earlier this year, but have dropped slightly since. The activity in house sales has shifted to the higher price ranges. 57% of the activity on the MLS has been in the 1.25 to 2.25 million dollar range. Downtown condo prices have dropped by around 3%. Coal harbour average condo price per sq ft is 852; False Creek = 805; West End = 605.

Price growth in 2010 will close out in the average range of 9 -11% due to the price growth and activity earlier in the year. Speculative activity is not an issue and is down according to statistics. Research shows that the speculators left the market in 2006 and have not been a factor since. While average mortgage carrying costs remain higher than average rents, the vacancy rate is at 1.7% in Vancouver.

Summary

Economic conditions in the Vancouver CMA will be favourable for the housing market this year and next

Major projects worth approximately 28 Billion are proposed for the Lower Mainland area

As the economy gets traction, some of these proposed projects and some of the 4 Billion worth of project currently on hold will move forward

Vancouver’s job market is also expected to pick up as the economy improves over the next eighteen months

Population growth will add to housing demand, an estimated 40,000 people are expected to move to the Vancouver region each year, adding about 18,000new households in need of housing

It will be important to keep an eye on higher mortgage rates which may dampen homeownership demand, especially for those who are more sensitive to the impact of higher rates.

Growth without a Bubble

Wed, 14 Jul 2010 14:39:15 GMT

While none of us can truly predict the future, except that octopus in Germany that predicted the World Cup winners consistantly, there are certain indicators that we can look to in making forecasts for the real estate market.

Vancouver is in the unique position in Canada of having a limited supply of land available for development, while at the same time having an ever growing demand from international, and interprovincial immigration.

Post-Olympics Vancouver has seen an embarassment of riches in the tourism industry. June and July are showing that the high end hotels in Greater Vancouver are at phenominal occupancy rates. These types of high end hotels provide the city with high end tourists, many of which are willing and able to own secondary homes internationally. The exposure to all that the Vancouver life-style has to offer is a great advertising vehicle to this market. This same prospective buying group is also being enticed into the city via the new convention centre, which is bringing in industry groups from around the world for professional gatherings.

Household growth in Vancouver is predicted to be 32 thousand per year while housing starts lag behind at an estimated 14 - 16 thousand per year. This scarcity of demand will continue to drive the Vancouver market. There has been a market adjustment recently, but this only slows down the upward price pressure and doesn't remove it. Vancouver is not in a bubble. The price growth will still be a healthy 8 to 9 % year to year increase.

The cost of construction in Vancouver is higher than in other Canadian markets. This is due partly to the demands of the terrain in the Greater Vancouver area. Issues related to earthquake proofing the buildings, soil density, bedrock, and elevation all play a part in making construction in Vancouver a costly venture. Added to the mix is the hard cost of land in Vancouver. Between the physical limitations, there are also economic restrictions and political restrictions that limit the supply of usable land for development.

The city of Surrey is poised to become the largest city in the Greater Vancouver area within the decade. Richmond, and the Tri-Cities are also growing quickly as mass transportation in and out of Vancouver improves.

The biggest challenge, and one of the most important moving forward, is the supply of affordable rental units in Greater Vancouver. The influence of foreign investors is very important in the development of a sustainable rental property supply. It is estimated that 32% of Vancouver residents are renters, and that number will increase as the need to replace the Baby Boomer workers builds over the next decade.

What all of this means to the real estate market is that the Vancouver area has all of the fundamentals to continue to grow over the foreseeable future. Certainly there will be bumps in the trajectory, but the lack of supply, coupled with the growing demand will continue to push prices and development.

Real Trends Stats: US vs Canadian Real Estate Agents

Tue, 22 Jun 2010 11:07:53 GMT

For 23 years, REAL Trends has ranked the largest residential real estate brokerages in the United States in an annual survey published each May. Upon its release, the REAL Trends 500 provides not only a clear snapshot of who is the biggest, but some interesting nuggets on the industry that can be drawn from the data collected. This year, for the first time, a similar survey was published for the Canadian market. By comparing the REAL Trends Canadian 200 to the two hundred largest firms on the US list, we thought the following findings were pretty interesting:

Although the average Canadian office in our sample had fewer sales professionals (40 per office vs. 51 in the United States), it generated far more transaction sides per year (592 vs. 367) and nearly twice the sales volume ($179 million vs. $97 million.)
That meant that sales professionals in our Canadian sample were over twice as productive as their U.S. counterparts (14.9 annual transactions vs. 7.2 in the US).
Over half of the firms in the Canadian survey would have cracked the top 500 of the U.S. list. Not too shabby considering Canada is one-ninth the population of the United States.

Peer Perspective

Wed, 02 Jun 2010 13:49:18 GMT

The power of consumer confidence is often addressed in economic forecasts by the various charter banks and government agencies. For many the impact is not appreciated or realized...but make no mistake it is a powerful mass dynamic.

In their book, SWITCH, the Heath Brothers talk about the impact of "peer perspective" rather than "peer pressure". It seems that people will respond to any given dynamic based on what others around them are doing. In research it has been observed that an individual in a room with smoke coming through the vents will respond differently than one sitting with others in a room with smoke coming through the vents. The individual will immediately leave to look for assistance, while those sitting together will wait and see what the others do. That same response is often seen in an audience watching a film, or play. People will laugh or applaud based in part on what they see their peers doing.

Recently I succumbed to the power of peer perspective when a young paperboy came to my door. I didn't have any intention of signing up for paper delivery until he casually mentioned that "all of your neighbours are chosing the pre-payment plan via cheque". Before I realized what I was doing, I had my cheque book out.

Consumer confidence has the same power as peer perspective but on a larger scale. Mass media has used their influence in steering consumers. This was displayed recently in Canada when, despite the fact that we were not directly part of the American mortgage meltdown, the housing market dropped for a number of months. It was only after restoring the confidence of the consumer that the market came back in any signicant way.

The Bank of Canada recently signalled an upward move in the prime lending rate...and the Bank of Montreal responded by lowering their 5 yr mortgage rate. Both acting in different directions in an attempt to address the consumer in Canada. Like it or not, we work as a group...and part of our actions and responses are due to peer perspective. People see, people do...

Vancouver Top City for Quality of Life in Canada

Wed, 26 May 2010 10:26:10 GMT

Vancouver rated fourth best city in the world for quality of life

AGENCE FRANCE-PRESSEMAY 26, 2010 7:03 AM

VIENNA - Vienna is the best city in the world to live while war-torn Baghdad is the worst, a survey said Wednesday, putting Europe at the top of the rankings with Asia and Africa trailing.

The Austrian capital "retains the top spot as the city with the world's best quality of living," British consultancy firm Mercer said in its 2010 Quality of Living Survey.

Swiss cities Zurich and Geneva followed in second and third places respectively, while Vancouver and Auckland in New Zealand were joint fourth.

For its annual survey, Mercer assessed the quality of living in 221 cities worldwide, measuring them against New York with an index score of 100 points as the base city.

Vienna, which also took the number one spot last year, scored a total 108.6 points, while Baghdad scored the lowest with just 14.7 points.

European cities continued to dominate the top 25 cities in the survey, Mercer said, while Canadian cities also had a strong showing.

Among cities in Britain, London ranked number 39, Birmingham 55 and Glasgow 57.

In the United States, the highest ranking entry was Honolulu in 31st place, followed by San Francisco in 32nd.

Singapore was the top-scoring Asian city in 28th place, followed by Tokyo in 40th.

Baghdad ranked 221st, remaining at the bottom of the list. It was followed by Bangui in the Central African Republic, N'Djamena in Chad, Khartoum in Sudan and Tbilisi in Georgia.

Mercer also awarded cities eco rankings based on water availability and drinkability, waste removal, quality of sewage systems, air pollution and traffic congestion.

Calgary in Canada came top of this list, followed by Honolulu in second place and Ottawa and Helsinki in joint third place.

Port-au-Prince in Haiti ranked at the bottom of this table, Mercer said.

The Power of the Third Party Endorsement

Wed, 12 May 2010 13:29:52 GMT

I have come to the conclusion that people just like the words, Twitter, and Tweet. Even those who have no idea about the social media revolution taking place know about Twitter. The name recognition aside, this cute little bird is actually leading the pack in the power of third party endorsements as the new way to navigate through choices and options.

Let's face it, if you want to hire a plumber you can look through the yellow pages and pick out the one that has the best ad, or you can google to find the best website. The third option is to ask your social media network group about their experiences in finding a good plumber. Which has the most power? For most people the endorsment from a third party will carry the greatest weight in making a choice like finding a good plumber, or finding a great real estate agent in a given neighbourhood.

Some pundants are annoucing the death of the search engine and the corporate website in their enthusiasm to embrace the power of social media like facebook and twitter. While it is a bit like those who predicted the death of radio when TV came in, there is no disputing that the internet landscape has forever changed with the growing interactivity available via social media tools.

Within the real estate industry the changes are coming fast and furious. Today it is necessary for an agent to be well versed enough in social media to have a facebook page and a youtube account to keep in contact with their clients and contacts. Many are engaged in blogging, sharing photos, and posting tweets in an effort to remain visible and available for their clients, Our website allows links to the agents individual websites, as well as links to twitter, linkedin, and facebook.

Passive use of the internet is becoming passionate use of the internet. This trend will help the cream rise to the top as people search out advise, experience, and opinions from their third party network friends.

The View from the Roller Coaster

Tue, 04 May 2010 11:45:41 GMT

I recently watched an interesting visualization of the median house price index for Greater Vancouver over the last 40 years. The animation places the viewer in the seat of a roller coaster as it climbs and drops relative to the housing market. Apart from being very entertaining to watch, it also clearly demonstrates how quickly the environment can change in the Greater Vancouver housing market.

Following market trends is only accurate in the past tense. One cannot truly understand the direction the market will take until the change is in motion. Presently in Vancouver there seems to be a shift occurring. Reviewing the MLS statistics, and the RE/MAX numbers it appears that the listing inventory is rising faster than the housing demand. Listings are up, but sales seem to be slowing down. This is happening despite the fact that the charter banks have warned that they will be raising their interest rates by summer.

The fear that house prices have risen beyond what the market will bear may be slowing down the buying frenzy of the last few years. The price of a condo in Vancouver is reaching the unaffordability level for the average citizen. The price of properties in this wonderful city have reached a level more than ten times the average wage of a Vancouverite. Those who caught the roller coaster at the bottom of the climb have done very well over the last 7 years in this market.

Once the HST effect has flowed through the local economy, the question of affordability will come into a clearer focus. Vancouver has always been higher priced than its neigbouring provinces because of it's desirability as a location. The recent olympics have proven to be a magnet for some international tech companies as well as those well-heeled enough to own properties internationally.

The desire to own property on Canada's west coast might be slamming against the reality that those without a seat on the roller coaster could be in for a long wait to buy a ticket.

RE/MAX is the Most Trusted Real Estate Brand

Wed, 28 Apr 2010 15:06:01 GMT

RE/MAX Recognized as the Most

Trusted Real Estate Brand in Canada

(Kelowna, BC, April 28, 2010)

– RE/MAX has been awarded Most Trusted Residential REALTOR® as

voted on by readers of Reader’s Digest magazine. The survey conducted for the annual awards revealedthat the majority of Canadians trust RE/MAX for all their residential real estate needs, ranking RE/MAX associates five-times more ‘trusted’ than the second most trusted brand.

“Our associates should be proud and honoured to receive the confidence of Canadian consumers as the Most Trusted Residential REALTOR®,” says Elton Ash, Regional Executive Vice President for

RE/MAX of Western Canada. “It’s an inspiring merit that the best trained and most experienced agents

have received for providing valuable assistance to so many families.”

Ash believes that this distinction awarded to Canadian RE/MAX associates is due in part to two notable

attributes. The first being “Premier Community Citizenship” - a quality that RE/MAX associates share

by being ever-mindful of the impact they make locally as they are involved with their communities

through volunteering, fund-raising and more.

The second is that RE/MAX associates carry more professional designations than any other REALTOR® in Canada. RE/MAX agents are invested in additional education in specialized areas such as Senior’s representation, commercial brokerage and luxury homes.

RE/MAX is Canada's leading real estate organization with over 17,500 sales associates situated

throughout its more than 680 independently-owned and operated offices across the country. The

RE/MAX franchise network, now in its 37th year, is a global real estate system operating in more than 70

countries. Over 6,500 independently-owned offices engage over 115,000 member sales associates who lead the industry in professional designations, experience and production while providing real estate services in residential, commercial, referral, and asset management.

Signs of the Times

Tue, 27 Apr 2010 12:25:59 GMT

Spring is the traditional busy season for real estate in Greater Vancouver, as in most of the Western World. This year is no exception. The signs are out in full force across the region. From Richmond to Coquitlam and through the West Side, the signs are popping up like the leaves are filling the trees.

There has been much speculation regarding what this "post-olympic" market will look like. For the most part it is turning into a typical Vancouver Spring Market. There are a few clouds in the horizon that need to be watched carefully...

The change in bank lending policies came into effect on April 19th. This may have an impact on Investors and first time home buyers, requiring them to have more "in-hand" cash before seeking financing. Although this may create some slowing of the market, it is not enough of a deterrent to impact heavily on demand.

The coming HST is of concern to many. It will impact on the amount of commission that a Seller will pay. Prior to the HST Sellers only had to pay the GST, as there was no provincial component in commissions earned. Now the sales tax becomes a blended entity with the service tax, it will create a 7 % increase in the amount due to the Brokerage on closing.The increase in listings thus far does not suggest that some are looking to beat the tax by selling prior to July. If the listings numbers continue to outpace seasonal norms into the late spring and early summer, then it could be argued that consumers are realizing the savings that will occur with a sale prior to July.

The rise of the Canadian dollar may help to slow down out-of-country speculative buyers, but it has been argued that these types of buyers are a small minority of the buying market.

Some concerns have been expressed regarding the potential increases in interest rates projected for the summer. The Bank of Canada may be looking to increase the rates, but with the relatively low inflation numbers being posted, the Bank may reconsider the increase. An increase in rates may do more harm than good for the Canadian economy, which seems to be moving along very well at this point.

The RE/MAX signs out in the yards across Greater Vancouver are a sign of the times. Inventory is outpacing Buying at this point...but demand doesn't seem to have wained at all.

Listing inventory increases for Spring Market

Fri, 23 Apr 2010 09:45:06 GMT

Home listings rise to start the spring season

A steady influx of new listings has helped create a balanced ‘typical spring’ housing market in the Greater Vancouver region.

The Real Estate Board of Greater Vancouver (REBGV) reports that new listings for detached, attached and apartment properties in Greater Vancouver totalled 7,004 in March 2010. This represents a 60 per cent increase compared to March 2009 when 4,385 new units were listed, and a 52.1 per cent increase compared to February 2010 when 4,606 properties were listed on the Multiple Listing Service® (MLS®).

At 13,538, the total number of property listings on the Multiple Listing Service (MLS®) increased 19 per cent in March compared to last month, but remains 7.6 per cent below this time last year.

“The total number of homes listed for sale on our MLS® is at its highest level in 10 months, which translates into more options and variety for those looking to buy during the traditionally busy spring period,” Jake Moldowan, REBGV president said.

Residential property sales in Greater Vancouver reached 3,137 in March 2010, a 38.5 per cent increase compared to March 2009, a 4.7 per cent increase over March 2008, and a 12.4 per cent decrease compared to March 2007. The current figure also represents a 26.8 per cent increase compared to the 2,473 sales recorded in February 2010.

“With a sales-to-listing ratio of 23 per cent, we see a healthy balance between buyer demand and seller supply in the marketplace,” Moldowan said.

Over the last 12 months, the MLSLink® Housing Price Index (HPI) benchmark price for all residential properties in Greater Vancouver increased 20.3 per cent to $584,435 from $485,845 in March 2009. This price is 2.8 per cent above the previous high point in the market in May 2008 when the residential benchmark price sat at $568,411.

Coming Marketing Trends

Fri, 16 Apr 2010 10:50:08 GMT

Four Trends That Will Impact Marketing

Touch: From the iPhone and Google Nexus One to the iPad, the coming plethora of touch-tablet computing validates that we are moving away from fixed computer work stations. Along with that, the constructs of using a keyboard and mouse will quickly go the way of the dodo bird. Some are saying that kids today will learn to type on glass, others think that kids will soon be learning to type on air, and that all manipulation and creation of media and information is going to be multi-touch in a simple and intuitive way…think of Tom Cruise in the film, Minority Report. Get ready for the humanization and personalization of hardware as we begin to touch way more than type.
Analytics: Walmart’s success is driven by its data. As the Internet creates multiple touch points where any individual can report and publish to everyone else, like we are already doing with Facebook, Twitter, or blogging… imagine what real-time analytics are going to do for business. Think about how we're going to be pushing well beyond static data into understanding the social side of information as well. What are we talking about? It's not just about knowing who is doing what on our websites, but it will be about knowing who those people are, who they are connected to, how much of an influencer they are and what that could mean to our businesses - all in real time. If you thought we were already drowning in data, prepare to be swamped with valuable insights on top of that.
One-line: You will no longer be "online" and then on your mobile device. It's just one-line. Many businesses still divide how they develop, strategize and execute on the Internet with what's happening in the mobile space. Yes, the iPad is one kind of link between a desktop or laptop and a mobile device, but the bridge is extended even further as all devices become untethered from wires and fixed locations. The "online experience" is just that - something you can experience in front of a big screen at your home or office, or in the palm of your hand. How we adjust our websites for this coming shift (and coupling it to trend #1) is where the rubber will meet the road.
Location-aware: The recent hype and excitement over Twitter and Foursquare is really more about mobile and location-aware online social networks than whether or not Jesse James is actually following one of Tiger Woods' mistresses on Twitter. The ability to not only publish information, but to receive and engage with content based on where you physically are changes everything. From the value of the content while you're "on the ground" to how search, information and referrals are displayed to you based on where you're presently situated. Whether or not Twitter and Foursquare become as irrelevant as Friendster and Second Life is secondary to what these platforms really offer the real estate world - the ability to connect and publish to those who are physically close to us and interested in what we have to sell.

Vancouver March Market Overview

Fri, 09 Apr 2010 19:06:38 GMT

There has been a noticeable increase in real estate inventory in the Vancouver west side market area.

The rise in inventory however is offset by the actual number of sales. This creates a more balanced housing market moving into the traditionally active spring market. Sellers have an incentive to list their homes now before the HST comes into effect in July; while at the same time the small jump in interest rates is motivating Buyers to act before their pre-approved rates expire.

January thru March, 2010 has seen a rise in housing and condo inventory by 38% and actual sales increased by 52% with the condo market up by 45%

The first quarter of 2010 compared to 2009, shows an increase in the average sale price for houses on the west side of Vancouver by 47% and by 30% in condos.

Einsteins Last Words

Mon, 05 Apr 2010 11:35:04 GMT

Albert Einstein died in 1955, having seen his concepts create a new world of understanding during his life. His passing was at a time when the cold war between the Soviets and the Americans was at a point of escalating. Much of the worry of that year, and the decades that followed were with the growing number of nuclear weapons that both super powers were amassing. The creation of the weapon that could effectively wipe out much of life on our planet was due in part to the theories that Einstein had developed.

Albert Einstein was not only a radical thinker, but he also was an amazingly creative communicator. Although his ideas are beyond the understanding of most of us, he was able to demonstrate his ideas using common speak. His description of the speed of light was done by referencing a moving train, while his explanation of gravity and time was done by the mental picture of an elevator.

The context of communication is so very critical. When looking at something as simple as market trend data in Vancouver, the numbers can be skewed to reflect the researcher's bias, or to amplify opposing opinions. Our age is quickly moving forward in the means that we communicate ideas and opinions. Today Twitter is evolving weekly to address the quick fix communication needs of social media. To some the world view has transformed into a series of games...spurred on by a generation that has grown up with video games and virtual reality. Looking for a home in Kerrisdale becomes an extention of gaming and social media in method and mindset.

The language of the landscape is changing, and as Einstein once said, "We can't solve problems by using the same thinking we used when we created them". The notion of communicating value and service is becoming increasingly difficult in a culture and marketplace where information can be accessed quickly and effectively. The answer to meeting the communication demands in the real estate marketplace is not to continue to use the same thinking of even two years ago. REALTORS(r) must find new ways to communicate service and value to the new consumer.

The context of the information is important, and although information is freely and readily available, it must be interpreted properly and effectively in order to best serve the constituents. As Albert observed, "Sometimes one pays the most for the things one gets for nothing."

The hidden costs are often greater than the sticker price. This is why having effective communication is so critical. Understanding the information is more important than having access to the information,

Nothing reflects the need to communicate properly in the right context than Albert Einstein's last words. Before he passed away, he felt the need to share some final thoughts. The only person in the room was the attending nurse. She heard the final words of the greatest thinker in history. Unfortunately, he spoke them in German, a language the nurse did not understand.

The Real Story Between CREA and the Competition Bureau

Thu, 25 Mar 2010 18:23:06 GMT

For some inexplicable reason, the Competition Bureau has been on a witch hunt against the Canadian Real Estate Association for some time now. It may be that someone thought that this highly effective and progressive industry was an easy target. Certainly with the right spin, and with the media on side, it is easy to create an unsympathetic picture based on old charicatures of REALTORS(r).

It is unfortunate that they are attacking one of the truest free market sectors in the Canadian economy. The Real Estate Industry is one of the most competitive industries in North America. Each Brokerage competes aggressively with it's rivals because remuneration is based on performance. Even within an office, the agents compete against each other for Listings and Buyers. Despite this, the Competition Bureau is smearing CREA and it's almost 100,000 members. The media has been allowed to create untrue pictures of what the issues are surrounding the Competition Bureau's concerns.

Meanwhile, the Bureau does not acknowledge the important changes that CREA has made to address those concerns. Changes that the Bureau itself had recommended.

To demonstrate what is really happening click here to read some recent correspondance between CREA and the Competition Bureau...

Unit Sales Down 13.3% in BC in February

Wed, 17 Mar 2010 12:10:45 GMT

The Canadian Real estate Association (CREA) posted recent statistics showing the change between January and February of this year. A total of 42,799 homes were traded last month, down 1.5% from January, as a gains in Toronto were offset by a decline in units sold in Vancouver.

The Winter Olympics were cited as a possible factor in lower sales in the province last month. Unit sales were down 13.3 %. Compared to Ontario's growth of 3.3% during the same period.

Continuing low interest rates could further prompt home resales this spring ahead of new mortgage rules set to take effect in April. The introduction of the harmonized sales tax will also add to the buying mood of the consumer this spring, as buyers seek to purchase before the tax change takes effect.

The average Canadian house price in February rose by 18.2 % from last year.

Currently the most affordable Canadian city for housing is Thunder Bay, Ontario with a February average house price of $142,280, up 23.6 % from a year ago.

The most unaffordable Canadian city for housing continues to be Vancouver, BC with a February average house price of $658,984. That is also an increase in price from a year ago of 22.4%

Most experts agree that the Canadian housing market will be moving to a more balanced market in the fall, while the spring will continue to heat up to answer demand.

The reason your agent wants to see your ID...

Mon, 08 Mar 2010 19:52:55 GMT

FINTRAC fines brokerage $27,000

The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) has assessed its first fine against a real estate brokerage. HomeLife Effect Realty in Hamilton was fined $27,000 for violating the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.

FINTRAC says the brokerage was fined for committing four violations:
- Failure of a person or entity to appoint a person to be responsible for the implementation of a compliance program;

- Failure of a person or entity to develop and apply written compliance policies and procedures that are kept up to date and, in the case of an entity, are approved by a senior officer;

- Failure of a person or entity to assess and document risk; and

- Failure of a person or entity that has employees, agents or other persons authorized to act on their behalf to develop and maintain a written ongoing compliance training program for those employees, agents or persons.

FINTRAC has had the authority to issue administrative monetary penalties in response to non-compliance with the act and related regulations since December 30, 2008. It says penalties are used as a last recourse after other measures to ensure compliance with the law have been exhausted.

“FINTRAC remains committed to working with reporting entities in ensuring compliance with the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and related regulations,” says the agency in a news release. “The new penalties are a tool to encourage compliance.”

FINTRAC is an independent federal government agency with a mandate to assist in the detection, deterrence and prevention of money laundering and the financing of terrorist activities.

Hang Onto Your Seatbeats!

Fri, 05 Mar 2010 11:42:05 GMT

The indications all point to a very active market for this fall in Vancouver. Following the excitement and energy of a successful hosting of the 2010 Olympic games, Vancouver is poised to experience a gold medal spring in terms of the real estate market in the lower mainland.

Several factors point to continued growth in development, sales activity, and price. Firstly, the market fundamental of supply and demand has never been stronger on the demand side. Vancouver is desirable as a world class city with it's amazing urban amenities. The city is in a natural setting that is second to none in the world. It is nestled between mountains and sea. The incredible landscape also provides for a mild temperature, something unusual for a Canadian city. The forests are lush, with moss and ferns under the canopy of giant spruce and cedar trees. Vancouver is a mountain metropolis surrounded by a rainforest. Following the exposure the area received during the games, inquiries from around the globe have increased, signalling continued demand for Vancouver real estate.

The price of land will continue to climb as long as there is more demand than available supply. Despite the fact that Vancouver is already categorized as "severely unaffordable" in comparision studies between average wage and average house price, the allure of living in this amazing city continues to drive the market.

In order to continue to keep up with the demand, developers seek out new locations for high density housing. Projects are fanning further and further away from the core of Greater Vancouver, ahead of mass transit infrastructure projects. This activity on the development side brings employment and opportunity, which continues to feed the demand for housing.

Sales activity remains strong as baby boomers seek to use the sale of their homes to leverage their retirement plans. Many long time Vancouverites are benefiting from the surge in prices and demand for property in Great Vancouver. This demand has created many new millionaires, who can now consider selling and retiring by downsizing and cashing in on their new found equity.