Swapping Roles From Agent to Seller: Week 1

It has been a week since we listed our condo for sale and, I'm gaining a whole new respect for my seller clients!  While I have experienced the process from the buyer's side, this is my first experience with a personal sale.  I hired a friend in the business to list my condo and spent some time staging and cleaning to prepare for showings.  Now I am hoping for the best.

I thought my readers might find it helpful to know my "to do" list prior to each showing.  When I list a client's home, I give them a similar list to ensure that their home shows well and I certainly hold myself to the same standards.

Before Each Showing:
-  Tidy, tidy, tidy.  This includes all personal items and valuables locked in the safe.
-  Vacuum.  This is necessary when you have a dog or are listing in the winter.  We are dealing with both!
-  Wipe surfaces in bathrooms and kitchen.
-  Clean those bathrooms.  Do not leave out your half finished toothpaste tube or a brush with clumps of hair.  Yuck!  Toilets should be scrubbed and sparkling.
-  Make the bed.  We don't pretend to be daily bed makers... Especially when Corey is working nights.  However, for the sake of selling our home, we are!
-  Take care of odours.  This includes opening and checking the fridge, the closet where we store dog food, the laundry hamper and especially the dog's bed.  I walk through with a bottle of febreeze and I light some candles in the kitchen and bedroom.  Lavender is nice and relaxing for a bedroom, while I prefer a Bath and Body Works candle that smells like fresh baked bread for the kitchen.  I do this with enough time that the candles can be put away right before a showing.
- Turn on our digital photo frame. While we keep our decor fairly neutral and remove many personal items during the listing period, we feel it doesn't hurt to allow buyers to see that nice, happy people live here. We have a small digital frame with a carefully edited selection of photographs which allows a small part of "us" to be visible.
-  Turn on the lights!
- Leave with the dog.  I love my dog and I know he's gentle when I'm around.  However, many dogs become fearful or aggressive when they perceive a threat such as strangers in their home.  Some sellers prefer to lock their animals in a small room or crate but I prefer to give buyers an opportunity to see a home without the distraction of noise or possible allergies.  Even those without pets should give buyers the privacy to fully explore their home by leaving or (at the very least) remaining in the back yard.

Does this sound exhausting?  Yes, it is but it's worth the effort to give buyers the best possible impression of my home.  I'm prepared for a long listing so I may be singing a different tune next month but for now, we're sticking to our list. :)

To view my listing, click here.  Or, enjoy my fabulous virtual tour.

Does Your Listing Need Professional Photos?

As a real estate agent, a partnership with the right photographer can make a huge difference in the marketing of a listing.  I work with Thea Menagh whenever possible, and I'd like to credit her for taking the professional "after" photographs in this post. 

I recently listed my condo for sale and many people have been really interested to know how someone in the business lists their own place.  I've had many questions about pricing, my own expectations, whether I post the listing under my own name or if I hire a colleague, and many others that I can't think of at the moment.  While I'll address most of the questions in a subsequent post, the short answer is that I treat my own listing the way I would treat a client's.  This is includes, hiring my favourite photographer, which is the topic of this post.

I met Thea early in my career although I wish now that I had known her from the start.  I like to see a listing with bright photographs and my biggest pet peeve is the notorious fish-eye lense which, when used in a listing can make even the nicest house look unattractive.  Instead of making a room look large through digital trickery, Thea uses a classic wide-angle lense and moves around (sometimes performing some impressive acrobatics) to find the best shot which will make a room appear as large as it is.  Not larger.  I find it heartbreaking to see the look on a client's face when they arrive at a home only to be disappointed that the house did not live up to the photos.

Thea always reminds me that something that looks nice in person, may not show well in a photograph.  For this reason, she insists on undertaking some pre-photoshoot staging specifically for the camera.  I know from experience that this can make all the difference so I tucked my ego aside and helped her move some of my favourite items (including my fabulous retro orange chair) and I told myself that in this area of the listing, she was the boss!  Below, I'll show some of the actual photographs from my listing along with some others I took on my own.  It will be obvious, but I'll mention anyway that the photographs on the left or top are mine and Thea's professional shots are on the right or bottom.  Think of is as a before and after.  Also, I'm excluding exterior photos as well as bathrooms and my second bedroom/office. 
















I know, I know, the "before" is just awful, right?  Well, unless you're a professional, black cabinets are not easy to capture.  Thea cleared away some items from the counter, adjusted the angle to show the opposite side of the kitchen, and made proper use of her lighting.  Her photograph gives a much more accurate portrayal of my modern yet warm kitchen.





Next, we look at the dining room.  With an entire wall of floor to ceiling windows, I don't know how I managed to make my picture look so dark.  It's also a little embarrassing that I managed to make my large dining room (which has room for an entire church pew along one wall) look cramped.  Thea moved some of my art as well as my little butler table and replaced it with a vintage kidney shaped stool in a light colour.  Essentially, she removed anything that would photograph as clutter while maintaining visual interest.

She also managed to capture the light and space in the room in the second picture.  She stood back and wasn't afraid to show the walls and ceiling.  In the second picture, you see the windows as well as the floorspace.  A buyer would be able to see this and decide whether there was space for their own table or buffet.  I was also amazed that Thea was able to capture subtle details like the wood grain in the floor and the reflective top of my buffet.

When we moved into the living room, I had to bite my tongue.  I knew Thea was right to move my orange chair but even my fabulous piggy bank wasn't safe on the mantle.  It was nice to consult with a professional who could remind me gently that my quirky taste does not always have mass appeal.  Pros need reminders too and while I love my living room in person, I can't argue with the fact that some editing produces cleaner listing photos.









Thea's use of HDR not only exposes the hallway properly, allowing a buyer to see even space but it also allows my lamp to be on while allowing my walls to still appear as a true light grey.  Even my flokati rug looks more plush and cozy!

Finally, the master bedroom photographs show perhaps the best example of how a pro can show the actual size of a room.  The photograph I took was only really able to capture the bed.  Considering the fact that my bedroom is quite large, the effect was underwhelming.  Thea chose an angle which captured significantly more floor space and furniture.

I believe the results speak for themselves. I would not list a home without the assistance of a professional photographer. Remember, the main objective of listing photographs is to show buyers a true picture of the home. While some pros brag that they can make rooms look "bigger and better" this could also backfire by leading to more showings with disappointed buyers. I prefer to choose a professional who captures the nature of the home instead. I want buyers to be interested enough to visit, but also pleased when they see the home in person. Wish me luck with my listing!

My Living Room on Apartment Therapy

 This month, I decided at the last minute to enter my colourful living room in Apartment Therapy's annual "Room for Color" contest.  AT has been one of my favourite home and design blogs for years and they often have great ideas for DIY projects.

When I purchased our condo in 2010, like many first time buyers, my money went towards my down payment and some renovations.  At the time, there wasn't much left over for furniture but I was tired of the furniture I'd used during my years of renting and I wanted something a little more gown up and... me. 

With Corey still in university, we were shopping on one income:  That's when our love of Craigslist began and since we had style but not much money to spare, (after gutting our kitchen and replacing the floors) we made a game of finding unique and well made (sometimes designer) pieces and trying to work them into some kind of cohesive theme. 

My cousin founded an amazing home décor blog called StyleNorth.  I remember reading at the time that he had a large orange flokati rug in his living room.  It was so shaggy and different that I couldn't help thinking that it would be a great piece to work my room around.  I browsed Craigslist for weeks and the odd one came up but they were usually too expensive or not colourful at all.  Finally one day, we found this cute little red number and the seller explained that it had been a gift from her in-laws when they travelled to Greece but she had never cared for it.

From there, we found two glass coffee tables, which allow more floor to be visible and keep our space feeling open and airy, as well as a fabulous retro chrome lamp (which we now love after hours of polishing), vintage chairs, some old bowling lanes which we made into an entrance bench and a table for my office as well as a large painting which I painted myself.  The eclectic style allowed us to display some personal keepsakes such as a large Trilobite fossil and soapstone carving from my grandmother and an old suzani I've always loved.  It was so nice to be able to display these items without worrying about whether they match the room.

We ended up furnishing most of our home that way and we now have fabulous vintage hanging lamps, a church pew in the dining room and many other treasures.  We kept our walls light so that we could display our art without worrying about the wall colour detracting however, I think we may be a little more adventurous in our next home.

Apartment Therapy's "Room for Color" contest is one of my best sources of inspiration for my home and we are honoured to be featured this year.  Check out our entry and make sure you vote!

Competition Bureau vs. TREB: Here's Why I side with TREB... And it's not for the reason you think!

Okay, it's obviously partially because I work in the industry and want to protect my career but, to be honest, there will always be a solid market for those who want to list and buy through a professional.  No, I have other concerns for what it means that the Competition Bureau is pushing to implement rules that will encourage more people to list on their own. 

For those who haven't been following the news, there has recently been more press about the lawsuit between the Competition Bureau and the Toronto Real Estate Board over access to information on the MLS service.  Frankly, as a real estate agent who may also be selling her condo soon, I don't necessarily want the entire world to have access to comments about the condition of my unit, when I am home and instructions for my pets but that's still not my main issue with the public being able to access this information and list on their own.

In an industry where we are taught to give the utmost attention to ethical conduct, detail and accuracy in our listings and diligent research, we also hear the horror stories of what can happen if something goes wrong.  We are trained to negotiate ethically and to also ensure that there is a proper paper trail of all conditions, waivers, amendments etc. to reduce any risk of a mistake.  We also answer to an ethics council which ensure that we behave ethically while practising real estate.  We also maintain insurance to protect us and our clients from errors and omissions.  Even with all these measures, errors occur occasionally and in real estate, when one closing often depends on funds from another, an error or misunderstanding can set off a chain reaction affecting people who have never even hear of the original culprit or their property.

Picture this: Person A has a firm deal to Purchase the home of Person B.  Person A waived their financing condition without speaking with their lender but as closing day approaches, they realize there may be a problem because the bank's appraisal of the property indicates that it is overvalued and Person A cannot fund the difference.  If Person A and Person B both have agents, likely the agents will be in touch regarding the problem and will either renegotiate the price to satisfy both parties, or negotiate who will keep the deposit and allow Person B to re-list immediately in order to mitigate the damages.  If there are no agents involved, things could get tricky.  What if Person A just sends a letter to Person B (or worse, what if they avoid the issue?) asking to be released from the deal?  How do they agree on what is fair?  What if Person B doesn't learn of this until closing day and they are now unable to close on the house they purchased from Person C?  As you can see, things get much more complicated without agents.

Without agents, how would a buyer ever know if an mls listing were accurate?  Who would hold the sellers accountable for errors and omissions or would buyers be forced to pursue legal action for every minor hiccup at closing?  In my experience, most buyers find it uncomfortable to view a house when the seller is home so how would they feel about negotiating directly over something so personal? 

Sure, buyers could still use agents but those agents would still expect to be paid and if sellers decided not to, that would fall on the buyers.  Nobody works for free.  And would those sellers really be saving money when they negotiate directly with a buyer's agent who is both a skilled negotiator and not emotionally invested?

What about the discount brokerages who post to MLS but leave sellers on their own for the rest?  Well, aside from the fact that I would need to deal with my own showings, many buyers don't want their agent to deal with someone whom they perceive to be cheap and difficult.  I've had many buyers not even want to look at these properties because they sense an ugly negotiaion may result.  There's also the question of how they respond to inquiries regarding their own listings.  If you have already paid a brokerage a flat rate fee to post a listing, how motivated are they to answer questions or even return phone calls about your home from people who find the listing on MLS?

To me, my home is my largest investment.  I don't object to people listing on their own but it would never consider listing my own home without the assistance of a Real Estate Agent.  Here's a video which outlines some of the many ways we can help:

Why A Moderating Market Should Make Us Smile!

For those who take the headlines at face value, the real estate market has undergone an absolute roller coaster in the past few months.  We've been hearing threats of unsustainable growth and a bubble that's ready to pop, unscrupulous sellers and their agents who have manipulated bidding wars to extreme heights and now... Eeek, it seems that the prices are falling. 

In reality, home sales typically slow in the summer likely due to a number of factors, such as the sticky weather, family vacations and the fact that very few people want to move during the first few weeks of the school year.  Add to that the new mortgage rules and we are seeing the market moderate a little- Something those of us in the business have been expecting to happen eventually.  Far from a crash, a bit of equalizing could be excellent news for the market.

The Globe And Mail ran a great article this week which outlined five great reasons why a small decline in house prices could be very good news.  Topping the list is the fact that this may give many first time buyers who have been discouraged by the number of multiple offer scenarios last spring, a chance to finally break into the market.    Also on the list was the suggestion that this could lead to more rational transactions and negotiations.  Without an auction mentality, it is easy to reason that more buyers will feel good about their purchases in the years to come.

Our housing market is still strong and steady, as is our economy.  If housing prices see a small correction overall, it will likely increase overall confidence in our market and subsequently long-term strength.

How To Maintain Your Privacy During An Open House:

It's the day of your open house and, in this market, that could mean your agent is expecting dozens of interested buyers to visit your home.  Your house is staged and tidy.  A large bowl of fake fruit sits on your kitchen counter.  The floors are scrubbed, the closets cleaned and you feel prepared for anything and excited at the prospect of offers on the horizon. 

Most good agents will request that owners and pets vacate the house during the open house in order to allow prospective buyers to feel comfortable looking carefully and even contemplating changes they might make if they were to purchase the home.  Your agent has advertised the open house and even brought some extra feature sheets, information on local schools and refreshments.  You know you are leaving your home in good hands.  Everything is perfect.  So what are you forgetting?

 Open houses are such a common step in the selling process that we often forget the fact that there will actually be strangers walking through our houses and looking at our things.   When a seller opens their home to showings, each buyer is accompanied by a licensed agent and the listing agent has a record of all visits.  The very nature of an open house, however, is to allow maximum exposure and so many of the visitors will be looking without their own agent.  A listing agent usually stands downstairs to greet guests and answer questions, but who is watching what happens upstairs?

I recently read a fantastic article in Real Estate Magazine on protecting sellers' privacy during open houses and showings.  Many sellers will not feel that all of these suggestions are necessary and some may seem obvious but I think every seller should at least consider them.  I don't know how many times I've seen calendars in houses during showings with vacation time blocked off.  Do you really want all the guests at your open house to know when your home is vacant?

I would add to the suggestions in the article that it is prudent to ensure that your agent is requesting that each guest sign in with first and last name as well as a home address and telephone number.  People tend to be more respectful when their identity is known.  Another good idea if you own a very large home or if your agent is expecting heavy traffic is to ask your agent if they have a colleague who can assist them by walking around and answering questions.  I also happen to think a one day open house that lasts two hours tends to generate more traffic than an open house that stretches an entire weekend.  Remember, other open house guests also serve to eliminate snooping behaviour.

Last but not least, plan, prepare and then RELAX.  You have hired a professional whom you trust so if you have any nagging concerns, allow them to set your mind at ease with their own security ideas.

DIY Real Estate & For Sale By Owner- Is It a Good Idea?

Now, I'm obviously a little biased where this topic is concerned since I make my living by assisting people in buying and selling homes.  Still, I plan to examine the title question as objectively as possible.

It seems we live in a society where Do-It-Yourself or DYI is becoming increasingly popular.  Our technology allows us to access professional (or amateur) resources from anywhere and it is easy to feel that we are all just a few weeks of Internet research away from being experts at other people's jobs.  I know I am also guilty of this and have gone to the doctor having already looked up some possible causes of my symptoms.  When I was having my will prepared, I recalled a legal article and asked to refine one of the clauses.  I have even speculated at a reason for the noise my AC was making to the repair person.  Am I an unusually annoying consumer?  Perhaps, but my point here is that we all do this to an extent and I find that many professionals respect a savvy consumer who asks educated questions.

But what about those consumers who actually take matters into their own hands and cut out the pros?  It's a matter of opinion.  We could probably cut our own hair, represent ourselves in court or install our own kitchens... but how many of us want to?  In fact, shows like Holmes on Homes show us the many pitfalls of attempting work without the right professionals.  So why do discount brokerages and listings for sale by owner exist?  Some sellers feel that the compensation paid to real estate professionals is too high and would rather try it on their own.

Are they correct?  Perhaps in some cases, they are.  However a good agent should serve as a market expert, assisting with staging, pricing and marketing their property, arranging showings (because an owner who is present for a showing is a huge deterrent for an interested buyer) and orchestrating maximum interest to ensure a good position for their clients during negotiations.  They should have a keen eye on the market and be able to advise their clients when to list, when to adjust the price and when to accept offers.  They should be familiar with clause wordings and be able to negotiate the best price and terms for their clients.  They should be available long after the sale to ensure that conditions are met and closing proceeds smoothly.  A very good agent remains in touch with clients and can act as an adviser with respect to renovations which pay off or tradespeople or professionals that may be required in the future.

So, when is it worth it to try to sell your home on your own?  In Toronto, with the average seller offering about 5% commission, which would mean 2.5% to their own agent and 2.5% to a buyer's agent, a smart seller will never cut the commission paid to a buyer's agent as they want their home to be attractive to agents who may have a buyer.  Of the 2.5% that they would pay their own agent, they should consider the costs of staging their home on their own, paying a discount brokerage to list their home on MLS, added legal fees since they would require a lawyer to review all offers and possibly multiple sign-backs, marketing expenses, the stress of negotiating offers,  the inconvenience of arranging showings and the expectation that homes sold without an agent are generally expected to sell for less and sit on the market longer.  I can confidently tell my clients that I can easily justify my compensation and they will more than likely make more money using me, than they would save on my commission. 

 

A recent Globe and Mail article discusses one couple's adventure with their own DIY listing.  It has long been an accepted fact in the real estate community (and even a source of easy leads for some agents) that for sale by owner properties or FSBOs don't sell.  Many of us even read about the FSBO company founder who sold his own property using a broker.

 

One would expect this FSBO theory to not apply to a HOT market like Toronto's, so I watched this listing to satisfy my own curiosity.  The owners were optimistic that they would have multiple offers on their offer date of June 14th.  I cannot confirm whether or not this was the case but it is now June 20th and the home is still listed.  I checked to see if it was overpriced but it actually seemed to be priced fairly low for the area with the lowest sale of a 3 bedroom, 2-3 storey, detached home this year in the district at $512,000, the highest at $911,000 and the majority of the 18 sales falling between the mid-$600,000's to the mid-$800,000's. 

In my opinion, there will always be some people who prefer to risk doing something themselves if it will save them a couple of bucks and it is wonderful that we all have the freedom to do so.  The question is: Are they even really saving any money?  Each case is different but I tend to doubt it.