Each agent develops a style with services that they include when selling property. Knowing this, the first question I am surprised that a consumer does not ask is “What services will be included in the commission that I will be paying?” Each successful Realtor I know, has developed their own technique that they use to accomplish a successful result.

Before the discussion begins please realize that the listing agent, who collects the commission from the Seller, usually offers half of that commission to the Buyer’s agent. That agent needs to be out in the marketplace daily, viewing listings, guiding and presenting successful offers for their clients. Please note that no commission gets paid to either until the property closes successfully. Not many business models exist where all the work has to be completed before any money changes hands.

I cannot speak for what other Realtors provide, but here are the services that I include for my half of the commission:

1. I am a big believer in staging so I offer all my clients a written consultation with a home stager at my expense.
2. Floor plans allow a prospective buyer to imagine their furniture in the property so I pay for the Home to be measured. There are also some Buyers who can only justify asking price in relationship to square footage.
3. Property photos are hugely important in today’s marketplace so all my listings are professionally photographed at my expense, and featured with Virtual Tours.
4. Your property will be on TorontoMLS and on REALTOR.ca but they will also have virtual tours and at least 21 professional photos as well as professional floor plans attached to the listing for both Realtors and the consumer to view.
5. I am known for providing Agent Open Houses with food served at my expense. It encourages the Realtors to spend more time, look around, feel comfortable and engage with each other. Announcements of new listing and their Open Houses are broadcast on Twitter, Facebook, LinkedIn and more.
6. I have often been surprised at the power of “neighbour marketing” so I send out Just Listed and Open House invitation cards to the surrounding 2000 homes at my expense.
7. I long ago realized the importance of the Internet so not only are properties placed on the TorontoMLS  system, they are on REALTOR.ca , shared on the Toronto Real Estate Board’s  Internet Data Exchange or IDX, they also appear on my sites: www.RichardSilver.com, www.Torontoism.com, and www.DowntownTorontoNews.com as well as our Company site www.BosleyRealEstate.com. All these sites are optimized professionally to be on the front pages of the Search Engines  in the top 30 Categories of search terms for Toronto Real Estate.
8. I am available always and have a licensed assistant, Jan Robinson who handles extraneous appointments, database and follows up with showings  and updates on your property.
9. Recognizing that Today’s Buyers  have changed the way they shop (that is a whole other Blog), I suggest Open Houses for the Public on every possible weekend. I have been working with a trusted group of Realtors below who handle those Open House if I am not available.
10. There are three Realtors who I look to for assistance in making sure my Buyers are getting the best of service: Kimberley Ezeard , Ken James ,  and France Trudeau. I have found that over the years, property marketing has become much more complicated and a consuming time commitment leaving me  frustrated when trying to search for Buyers at the same time. These three have been excellent in helping our buyers find that best available in today’s marketplace because they focus on that task.
11. I do advertise in the Globe and Mail on Friday’s but find that a banner ad sending interested parties to the web is the best way to go. Very few contacts have ever come from Print ads today. 90% of Buyer are now searching on the Internet.
12. I happily work with other agents in facilitating offers on your property to get you the best price possible in Today’s market.

Hopefully this list provides some clarity about how I handle my business model but remember that each of us bring a different set of services to the table and those services may be offered to the consumer for different commission rates. My suggestion when shopping for a Realtor would be to ask them to list the services that they provide when listing a property. When you know what is involved, then it is up to you to decide whether the value is there to commit to that Realtor. If not, you have over almost 100,000 other options in Canada and over 1,000,000 in the United States.

Happy Shopping!

Here is what I think:…like our neighbors to the South, Canadians have a DREAM and that includes a home where they share family life. We have more stringent tax laws and mortgage laws than south of the border and the “Canadian Dream” has always included paying off your mortgage and not using your home as an ATM.

Since 1980 when I started selling houses the market has gone up and down a few times. To me it has been all about finding the right fit for a family and I have watched a lot of those families grow and enjoy a few properties as their repertoire of moments grew. Values have changed but the real value in Real Estate has not been financial, it has been lifestyle oriented. When did home ownership become more about the money and less about the family?

Granted, Toronto has changed and the market here has been one of the healthiest in North America. We are lucky but are we overpriced? Talk to someone from Manhattan, Chicago, San Francisco, Hong Kong or London and they will tell you no…

Buyers: make your decisions based on community, schools, street life, Kitchens and Family rooms,  realizing that the market will go up and it will go down…just enjoy the ride in a home that fits your needs and makes you feel that you are living your “Canadian DREAM”.

Here is a link to an excellent recent article in the Economist. The article does deal with the economics of the marketplace but don’t give up the long term lifestyle dreams. My house goes up and down in value, but it is the center of great family memories are unable to monetize.

Last month alone, a total of 4,718 homes changed hands, representing a seven per cent increase over the 4,395 sales reported in December 2010.

Consistent with the month’s strong sales, sellers’ market conditions continued, with the amount of time that homes were available for sale averaging 32 days last month compared to 37 days a year ago.

Year-over-year sales growth in the 905 Region outpaced that of the City of Toronto in December, with increases of more than 12 per cent and seven per cent respectively. In total 2,770 sales took place in the 905 Region while 1,948 transactions occurred in the City of Toronto.

The number of homes newly available for sale in December also increased, by nearly 14 per cent compared to a year ago, with 4,811 new listings last month. Despite the increase in availability, sales generally kept pace with new supply, resulting in continued price growth.

The average cost of a GTA resale home increased four per cent year-over-year to $451,436. Gains were stronger in the 905 Region, with the December average price climbing nearly six per cent to $435,378 and the City of Toronto showing a two per cent increase in its average price, to $474,270.

For all of 2011, the average selling price was up by eight per cent to over $465,000 in comparison to the average of $431,276 in 2010.  We experienced moderate to strong price growth throughout 2011 because market conditions remained very tight because of strong sales growth coupled with a decline in listings.  Enhanced competition between buyers led to strong upward pressure on selling prices.

We can see just how tight the housing market has been in the GTA over the past two years when we consider a new indicator published by TREB: Months of Inventory (MOI).  MOI tells us how long (in months) it would take to completely sell the average number of active listings over the past 12 months given the average number of sales over the same period.  A lower number of months indicate tighter market conditions and vice-versa.  Over the past two years, MOI has been in the 2.0 to 2.5 months range.  This is substantially lower than the pre-recession norm of between 3.0 and 3.5 months.

Despite price growth, the cost of home ownership remains affordable, due to low interest rates and a stable employment picture.  Five-year fixed rate mortgages continue to be available at approximately five per cent while Toronto’s unemployment rate came in at 7.8 per cent in December, an improvement of more than half a percentage point from the previous month.

Moreover, favourable news regarding our country continues to be generated.  A recent study release by the Legatum Institute, which measured the world’s most prosperous nations ranked Canada as the sixth best country in the world based on criteria that have an effect on economic growth and personal well being. The flood of favourable reports on our country in recent months has been tempered though by warnings from the Bank of Canada and the International Monetary Fund regarding Canadians’ high household debt.  This coupled with the potential impact of other nations’ volatile economies should give all Canadians pause for thought.

It is a fiscally conservative approach, with respect to lending practices for example, that has landed our Canada at the top of so many world rankings, and we should continue to exercise the same prudence with respect to household finances.  There’s never been a better time to begin a new mortgage in order to consolidate debt or perhaps even to move to a home better suited to your lifestyle.  To learn more about the process of buying and selling a home visit www.TorontoRealEstateBoard.com.

Richard Silver is President of the Toronto Real Estate Board, a professional association that represents 32,000 REALTORS® in the Greater Toronto Area.

Follow TREB on www.twitter.com/TREBhome, www.Facebook.com/TorontoRealEstateBoard and www.youtube.com/TREBChannel

Toronto, December 6, 2011

The poll was conducted by Ipsos Reid for the Toronto Real Estate Board (TREB) between November 17 and November 22, 2011.

“TREB supports the recommended 2012 Budget because it continues the process of bringing fiscal sustainability back to City Hall; however, while we support the direction of this Budget, we are pointing out that it does not begin the process of fulfilling Mayor Ford’s commitment to repeal the Toronto Land Transfer Tax in 2012. This is a commitment that is strongly supported by Torontonians,” said Richard Silver, TREB President.

The poll found that,

• 65 per cent of Torontonians continue to support Mayor Ford’s commitment to repeal the Toronto Land Transfer Tax. Even when asked to consider the City’s deficit and recent efforts to address it, public support for the repeal of this tax is at 57 per cent;
• Torontonians want to see respect for taxpayers during negotiations with City Unions: 67 per cent believe that City negotiators should seek concessions from the unions; 57 per cent would like to see an end to current job security provisions; and 54 per cent would support a lock-out if union representatives do not agree to concessions;
• in contrast to the public’s strong opposition to the Land Transfer Tax, 52% of Torontonians support increasing residential property taxes as part of the solution to addressing the City’s deficit and paying for services; and,
• 54%, a majority, believe that City spending on programs and services is cost-effective and efficient. This is an increase of 9 per cent , from 45 per cent to 54 per cent, since April, 2011 when Ipsos Reid last measured this sentiment for TREB, indicating an apparent shift in attitude.

“Notwithstanding the difficult decisions that City Council has faced with regard to the budget, Torontonians understand that the Land Transfer Tax is part of the problem because it unfairly forces home buyers and business owners to pay more than their fair share, costing the average Toronto home buyer more than $6,000 every time they move; it is an unpredictable revenue stream that goes up and down with the real estate market; and it makes the City less competitive than other GTA municipalities,” said Silver. “The Land Transfer Tax is simply a band aid that has delayed the true solutions to the City’s financial challenges.”

REALTORS® believe that sustainable solutions to the City’s financial challenges are a combination of cost reductions and fair revenue sources, like property taxes and user fees.

“TREB Members work with the public across the GTA, so they understand that the City’s Budget affects not only Torontonians but the entire region. Simply put, the City’s budget decisions affect where people live and work. You only need to travel along the DVP during morning rush hour to see the proof: as many people are leaving the City to get to their jobs as there are coming in,” said Richard Silver, TREB President.

“Toronto businesses face the highest commercial and industrial property tax rates. Making business property taxes more competitive will allow the property tax base to grow, providing long-term, reliable, revenue, which, ultimately, will benefit residents by relieving pressure on existing taxpayers and improving quality-of-life in Toronto and the entire GTA by keeping people and jobs close together, thereby reducing traffic congestion,” said Silver.

REALTORS® are encouraged with the direction of the 2012 Budget and, along with the public, are calling for fiscal reform to continue at City Hall.

“REALTORS®, and the public, believe that City Council has made progress in bringing respect for taxpayers back to City Hall. We strongly believe that moving ahead with repealing the Land Transfer Tax, continuing to reduce costs, and using fair revenue sources is the right way to continue to move forward,” said Silver.

These poll results were gathered from 401 residents of the City of Toronto, yielding a margin of error of +/- 4.9 percentage points 19 times out of 20.

Greater Toronto REALTORS® are passionate about their work. They are governed by a strict Code of Ethics and share a state-of-the-art Multiple Listing Service. Over 32,000 TREB Members serve consumers in the Greater Toronto Area. The Toronto Real Estate Board is Canada’s largest real estate board.

THURSDAY, DECEMBER 1, 2011 – 7 pm
Metropolitan United Church, 56 Queen St. E.
Free, with suggested donation of $20.

Hosted by CBC’s Tom Allen with Rev. Dr. John Joseph Mastandrea.

THIS YEAR’S PERFORMERS: Dr. Draw, Prita Chhabra, Singing Out!, David Warrack, Douglas Rice with the Velvet Curtain, Christian Jeffries , The Metropolitan United Church Choir, The Jarvis Collegiate Senior Choir, and more!

Followed by a candlelight ceremony with hot apple cider and cookies in the courtyard.

Click here for photo highlights of the 2010 concert

Toronto, September 21, 2011

“We are proud that the Toronto Real Estate Board was the only business organization that had the courage to go to City Hall and call for the fiscal restraint that so many Torontonians want and demand from City Council. We are proud to be a loud and strong voice in favour of sound and fair financial management from City Hall,” said Richard Silver, President of the Toronto Real Estate Board (TREB).

TREB presented its views to the City of Toronto’s Executive Committee on September 19, 2011. In its presentation, TREB told the Committee that City Hall must live within its means and that the Toronto Land Transfer Tax is not part of the solution to the City’s financial challenges.

“Questions from some City Councillors, after TREB’s presentation, made it evident that some Councillors who are not members of the Executive Committee would prefer to continue to use the Toronto Land Transfer Tax as a band-aid solution to the City’s financial challenges. Torontonians don’t want band-aids to the City’s financial challenges; they want long-term solutions,” said Silver.

After TREB’s presentation, some Councillors implied that the Toronto Land Transfer Tax has improved the City’s budget situation. TREB disagrees.

“Four years ago, many of the same City Councillors that are currently opposing changes at City Hall claimed that the Toronto Land Transfer Tax would solve the City’s financial challenges. Yet, here we are, four years after the City began collecting the Land Transfer Tax, and the City’s financial situation is the same, if not worse. Why? The answer is simple: the Land Transfer Tax was a band-aid, not a real solution. Like all band-aids, it needs to be removed,” said Silver.

Some Councillors,pointed to the current health of the real estate market as justification for keeping the Toronto Land Transfer Tax. TREB is pointing out that the real estate market can experience ups and downs.

“It is important to remember that the Land Transfer Tax is not a predictable revenue stream. The amount of revenue it generates is based totally on the activity of the real estate market. What will the City do if there is a downturn in the real estate market? Create yet another tax to balance the budget?” said Silver.

Some Councillors, questioned the relative influence of the Land Transfer Tax and municipal services on property transactions and values.

“Make no mistake: REALTORS® understand that municipal services play a critical role in our City’s quality-of-life. These services are important to our clients. That is precisely why we want the City to get its finances in order. Without long-term solutions to the City’s finances, the quality of the municipal services that matter to our clients will deteriorate,” said Silver. “While municipal services are important to property transactions and values, for the vast majority of people, price is still the first and, most important, consideration”.

The City of Toronto is the only municipality in the Greater Toronto Area that imposes a second Land Transfer Tax, in addition to the provincial Land Transfer Tax. TREB feels that a budget shortfall supported by a tax collected from a small group to provide services for all citizens is not sustainable in the long run. It is time to axe the tax and find a long term solution.

We look forward to the results of the Core Services Review by Toronto City Council.

The article detailed buyers who had bought from floor plans, but, unfortunately, once the unit was built they were disappointed when they realized that one window looked at a brick wall, the floor was laminate and the balcony was “more of a ledge.” This article is a good reminder that there is a lot to consider when deciding to buy a new home.

Condominiums are regulated by the Condominium Act. In recent months, there has been some talk about the need to reform this law, in part to provide better consumer protection. There is no doubt that the act does need reworking, but caveat emptor, or buyers beware, can go a long way to help buyers when purchasing any home.

When buying newly built housing there are many things to consider. Firstly, when you walk into a sales office, understand that often everyone there is working on behalf of the seller/builder. If that is the case, you may have discussions with them, but their fiduciary duty is to the builder, not you as the buyer. With this in mind, you do have the option of working with a realtor and entering into a Buyer Representation Agreement to authorize them to work on your behalf.

At any time that you work with a licensed realtor they must disclose, to all parties, on whose behalf they are working, in writing. For years I have been hoping that Ontario would make disclosure part of all sales that happen in the province. Currently only realtors who are licensed under the Real Estate and Business Brokers Act 2002 must do so. Consumers would be better protected if all parties involved in real estate transactions — including lawyers, private sellers and new construction on-site salespeople — were required to do so. It’s only fair; anyone acting on behalf of someone else should have to disclose their relationship.

Secondly, a very important thing to know is that all buyers of newly built condominiums are entitled by law to a 10 day cooling-off period, during which time they can cancel their agreement. This is a good time to peruse all documentation and take it to a lawyer for review. When dealing with condominiums, it could help to use a lawyer who specializes in condo law. The lawyer may have good advice on stipulations that you can add into the contract to better protect yourself.

Thirdly, understand what you are buying:

 • Make sure that a condominium suits your lifestyle. Do you have a good sense of the reality of a 665-square-foot unit with two bedrooms and two bathrooms? If you have house-sized furniture, are you ready to sell it all to make this type of new space livable?

 • Be diligent in getting the details. If the plans show nine-foot ceilings, is that in all of the rooms? Where will the heating, cooling, and water be located for the apartment below and above? Ask for the full building plans so you can see where the bulkheads are planned.

 • Understand the status of the neighbourhood. Is it a stable neighbourhood with little redevelopment, or is their significant development going on — or coming — that could change the nature of the area and affect things like the view from your unit. The municipality’s Official Plan and Planning Department staff can help you look into the future.

 • Be realistic in your expectations for the property’s value; use common sense. Getting caught up in hype and speculating that your unit will increase dramatically in value from the time you purchase until construction is complete could leave you disappointed.

 • Finally, be sure to consider all of your options. For many homebuyers, newly built housing is the right choice. However, if you are the type of person who likes to “kick the tires” before buying, purchasing a resale property might be a better option for you.

Newly constructed housing is an important part of the real estate market. It fills an important niche and is the right choice for many people. However, as with any major purchase, it is important that you take steps to look out for your best interests. Go the extra step to make sure that you understand what you are buying and consider working with a realtor who can provide assistance and advice during the purchase.

Richard Silver is president of the Toronto Real Estate Board. The views expressed here are those of the president. For more information, go to www.TorontoRealEstateBoard.com. Follow on Twitter @TREB_Official, on Facebook TorontoRealEstateBoard and www.youtube.com/TREBChannel.

Reposted from The Toronto Star

Toronto, September 16, 2011

“Purchasing and paying for a home over the long term represents the single largest financial commitment most households will make over a lifetime. To make this commitment, households must be confident in their economic prospects,” said Toronto Real Estate Board President Richard Silver. “The fact that sales continued to grow through the first half of September suggests that GTA households remain confident that the economy will remain buoyant.”

The average selling price in the first half of September was $454,194 – an increase of 11 per cent compared to the same period in September 2010.

“Strong price growth in the GTA continues to be mitigated by a solid affordability picture. Mortgage rates will remain at or near current levels until the second half of 2012 if not into 2013,” said Jason Mercer, the Toronto Real Estate Board’s Senior Manager of Market Analysis.

“In response to strong price growth, more households chose to list their homes for sale in comparison to last August. Growth in listings is expected to continue. Increased choice will result in more sustainable rates of price growth,” continued Mercer.