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Posts from the ‘The Morning Meeting’ Category

5
Jun

Dum Da Da Daaaaa! Where Do Clients Come From?

meeting client picI know you’re dying to find out the results. Earlier this week I sent out a simple message to my agents…”The results of my little survey are in BUT you will have to attend tomorrow morning’s meeting to find out where clients come from. The methods were highly unscientific but the results will be mildly informative (hopefully) and, with any luck, generate some worthwhile conversation”. The heading was also a bit catchy…Dum Da Da Daaa!

I have to admit that I was rather curious too. A few weeks ago I pulled the last 120 deals from our records. I wanted to know two things; Where did the agent meet the client AND how long did they know them before they bought or sold their house. I had a feeling what the top response would be but I was more curious about other responses. It took me some time to contact each agent and ask the questions but in the end I was able to categorize the responses into twelve clear groups. We had a full house at our meeting to unveil the results. Now, if you know me then you know that reading them off is NOT something I do well. I prefer the pomp and circumstance of an event, even if the results aren’t all that exciting so we played the “Realtor Feud” game, pitting the Red team against the Blue team in an epic battle (not really) with the winner getting bragging rights for the day.

Obviously the results will vary but I thought it interesting that the top four responses, representing 67%, came from the people we know the most; past clients and friends. I suppose that makes sense, after all, our past clients and friends know us the best. We are still picking up clients from people we don’t know as well. That’s a good sign and evidence that traditional methods of prospecting work. Flyers, news letters, open houses, sign calls and walk-ins accounted for 15%, family and neighbours accounted for 10%, clients coming from social media and web accounted for 6%, and professional referrals (people you are associated with in business such as referral companies, lawyers, accountants) accounted for 3%.

So the next question is how quick did agents buy or sell homes? Well not surprisingly (again) agents had long-lasting relationships with friends, past clients, family and professional referrals. Social media and web-based clients had the shortest relationship time followed by signs calls, open houses and walk ins. This indicates that clients coming from these sources have done their research and are in the active buying or selling process.

The take away from this little bit of non scientific research is that you need to prioritize your inbound clients. Past clients and friends are on a slow drip campaign when it comes to touching base and follow-up. Online leads, open house and sign call clients are ready and able so deal with them quickly. I believe this little test is further proof that a solid CRM system is a mandatory tool for our business. I would encourage all Realtors to evaluate where their clients are coming from and prioritize their contacts.

mark mclean is the Broker/Manager at the Bosley Real Estate Queen St W office and President-Elect for the Toronto Real Estate Board. The opinions expressed here do not reflect the opinions of TREB or Bosley RE.

22
Apr

Real Estate Jeopardy. The Game Show Meeting Topic

jeopardy gameI run nearly over 90 meetings a year. 45 of them are direct “office meetings”, me standing in front of a group of agents talking about “stuff”. Usually its market related, sometimes I have a special guest or do a panel discussion, occasionally it’s a field trip and sometimes I talk serious stuff about what is happening in the real estate world. I will be the first to admit that while some meetings are awesome (and agents come up to me later and commend me on a great meeting), others are, well, dogs. The good ones I blog about and share. The others I bury like a bad bone.
Some of the time you just want to have fun. A few years ago I brought in a magician. Once I asked the agents to pick their real estate anthem song and sing it. That was hilarious. Today’s meeting was one of those fun ones. They take a long time to prepare but are worthwhile. Over the course of the year I keep track of all the little things agents either forget to do or ask questions about. For this meeting I created categories with those questions and had agents square off Jeopardy style. A lot of the questions are fairly easy but what I find is that it gets everyone talking, and isn’t the whole point to get a conversation going?
So you are probably wondering what the questions were. Well, they ranged from who signs the confirmation of acceptance on an offer to what is the legal rent increase for 2015 in Toronto to Land Transfer Tax rebates to how much first time buyers can withdraw from their RRSP’s.
It took about 45 minutes to get through the 20 questions. We had a ton of fun and I hope that the agents will put this one in their memory banks. By the way, the answers to the above are; The last one to accept an offer, 1.6%, $2000 provincial and $3725 City of Toronto, $25,000 per person. By the way, it’s nice to offer a prize. I had little bags of Jelly Beans for the winners (but basically everyone’s a winner).

mark mclean is the Broker/Manager at the Bosley Real Estate Queen St W office and President-Elect for the Toronto Real Estate Board. The opinions expressed here do not reflect the opinions of TREB or Bosley RE.

21
Jan

Top 4 Take-A-Ways From 2015 Real insider Client Briefing

insiderThis week I had the opportunity to attend the RealNet sponsored “Informed Advantage” client briefing entitled “GTA 3.0 – Property Market Crisis or Opportunity”. As usual, I enjoy any chance to sharpen my overall knowledge of the real estate market particularly The GTA and specifically downtown Toronto. If you haven’t attended this briefing before, put in your day timer for next year. You will be glad you did. There where several great speakers, including Benjamin Tal, Deputy Chief Economist CIBC World Markets. I took copious amounts of notes and so I thought it would be worthwhile to talk about the top 4 take-a-ways from the day. Oil, Interest Rates and The Canadian Dollar, The Euro zone and The US recovery, and Ontario’s future. Call it a quick primer on what’s going on at the start of 2015.

Lets start with Oil.

Tal believes that falling oil prices are essentially a ‘Black Swan”, meaning there is no reason prices should fall. His says that it is nothing more than a big expensive experiment by OPEC. Saudi Arabia has been slowly losing market share to Russia, Venezuela, The USA and Canada. They can produce oil at roughly $20 per barrel and make a healthy profit. Russia and Venezuela produce it at a substantially higher price, nearly $100/barrel, while Canada’s Oil Sands projects break even at closer to $60/barrel. Simple economics dictate that if you lower the price of oil substantially you will squeeze out the competition. Tal believes prices will stabilize around $60/barrel. This amounts to a monumental savings for Canadian consumers. (Annual savings of $17 Billion, $1800 per family).
A couple of other points to discuss that relate to oil, namely, China is one of the largest importers of oil. Tal expects China’s economy to benefit from lower oil costs which will have a ripple effect around the globe. Alberta is expected to slip into recession as a result of Oil Sands layoffs. The Alberta Government could suffer up to a $10B budgetary shortfall however with one of the lowest tax rates of all Canadian provinces, they are likely to increase taxes to make up, at least in part, the difference. Tal reminded the audience that the last three major recessions followed a huge spike in oil prices. He believes that lower oil prices are a positive event that will benefit 85% of the Canadian population. Here’s a new catch phrase….The efficiency paradox…The cheaper something gets the more we consume.

Interest Rates and The Canadian Dollar
Tal believes that the Bank of Canada won’t touch interest rates, in fact his belief was that the rates might even go down. He obviously has a very powerful crystal ball as his prediction came true. The reality is that lower oil prices will limit the need to increase interest rates. He was clear in his thinking that the BOC’s agenda is to keep the Canadian Dollar low. A low dollar helps exports and fuels manufacturing. Speaking of interest rates Tal pointed out that one segment of the lending market we should watch out for is the alternative or B lenders. They are typically unregulated and are rising in popularity by almost 25% per year. In his mind this growth has all the ear markings of a blooming subprime market. The good news is that overall this only represents 2.5% of the residential lending market. And since we are on the BOC topic, Tal brought up their recent report claiming that Canadian Real Estate was 10-30% overvalued. He believes that this is a grossly oversimplified report (comparing it to a junior high school project) that only measures against other countries. What the report fails to take into account is the fact that overall values are driven by two markets, Toronto and Vancouver. Both those markets share similar properties that are creating high average prices namely they are the dense city centres and are bound by strict geographic limitations. Vancouver has water on one side and mountains on the other while Toronto has water on one side and is surrounded by a Greenbelt. In both cases, limited land is responsible for higher prices.

The Euro zone and the US Recovery
Where China’s government has the ability to orchestrate a soft landing and oil will fuel the next growth spurt, Europe is a different story. Two factors are weighing heavily on the Euro. First, Italy is in its third recession in 6 years and the winner of the Greek election could default on the countries loan or opt out of the EU altogether. Currently the Euro zone has almost negative interest rates which could effectively force a run on the banks. Tal believes that despite all the turmoil the Euro will survive.
The US recovery is being led by one simple fact…the easing of credit. The US needs higher rates but the market is driving the Fed and not the other way around. Employment is also rising and remains a strong indicator as to the health of the economy. The US recovery has many benefits to Canada through increased demand of lumber and manufactured goods.

Ontario’s Future.
Currently one in four Canadians live in Ontario’s Golden Horseshoe. The population is expected to grow in the region by 2.4 million people by 2036. Cap rates for investment properties are at an all time low, land prices are at an all time high as are new condominiums and low-rise development in the GTA. Despite that, the GTA hit a record high $13.5B in property transactions in 2014. George Carras of RealNet calls this a “Crisi-tunity”. 5 significant office towers are underway in downtown Toronto (with size more planned) but as Carras explains, much of the current commercial development is driven by a replacement mindset, meaning tenants aren’t looking for more space…they are looking for better space. It is interesting to note that Downtown Toronto has the second lowest vacancy rate compared to eight of the largest Canadian commercial centres.
Ontario is a major consumer of oil and will benefit from lower prices. Any effective layoffs in the oil fields will be absorbed by increased manufacturing thanks to US demands and low dollar. Peter Norman, chief economist for Altus Group has looked carefully at long-term housing demand and states that aging in place is on the rise in urban centres which has contributed to lack of freehold inventory. Meanwhile, Millennials are choosing apartment living in ever-increasing numbers. Hot on the heels of a strong year in condominium growth, the biggest concern for developers moving forward will be the time required to deliver new product to the marketplace. Municipal requirements and bank financing are slowing the process down greatly. It is important to recognize that the large increases in average home pricing is not limited to Downtown Toronto. Carras cited an example of a 3300 sq ft home in Vaughan that sold in 2004 for $573k. That same house in 2014 is now $1.553M.
In large part due to the restrictions of the Greenbelt, prices of low rise homes have rapidly escalated since 2011 and are now at $705,813. The price gap with high rise homes, which were only slightly lower by comparison back in 2011, are now $251,337 lower. High rise prices still increased in 2014 (up 4% to $454,476).

Clearly there is a lot to digest here. If you are able, download a copy of 2015 RealInsiderâ„¢ Client Briefing. There are over 160 slides from the presentation available. Great stuff to share with your clients who are worried about buying in Toronto.

mark mclean is the Broker/Manager at the Bosley Real Estate Queen St W office and President-Elect for the Toronto Real Estate Board. The opinions expressed here do not reflect the opinions of TREB or Bosley RE.

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