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In This Issue   We're Baaaaack!
 


Gary Paret, Coldwell Banker G. R. Paret Realty, Tillsonburg, ON

How Technology has Helped FSBO's

Digital Photography Tips

In Memorium - Moe Noormohammed

New on the Blog

Teeing Up For Success! By Sheldon Johnston, Edmonton, AB.

     

It's been a while since we've done an issue of network news, and it will probably be a while until we do another. Sorry to say we have to become a quarterly newsletter. The Spring market in Edmonton was absolutely crazy and summer was even crazier - one listing got 54 offers! Anyway, we've certainly been busy lately, busier than any spring or summer before, and we hear it's not just Edmonton so we hope you'll forgive our absence from your inbox.

One thing we learned over the past few months is that to survive you have to be able to adapt. The market here is drastically changing on a weekly basis and at its height, when we had less than half the number of listings as a year earlier, new strategies were appearing at every turn. From pre-scheduled offer presentations, to homes selling while the listing agent was still sitting at the kitchen table, to home inspectors complaining there was no work in the busiest market in Edmonton history - we've seen a few good ideas and a lot of bad ones.

In this issue we are featuring someone you can be sure to see at the Coldwell Banker Canada conferece this November in Cancun - Gary Paret. And by the way, I have it on good word from head office that you can still register for Cancun so if you're sitting on the fence register already! I've also got some digital photography tips and some editorial on today's market and technology, plus some opinions on the industry from agents all across Alberta. Hope you enjoy!

Hope to see you this fall , Sara.
Edmonton, AB

 

Making it Big Time in a Small Town

 
Gary Paret
 

Have you ever driven down a dead end road wishing it would connect to where you really wanted to go? The reality is that to get where you want to go you have to make the effort to get there; Gary Paret is one such driver. Sitting in a dead end factory job, surrounded by negative, dead end people, Gary wanted more. He knew it wasn’t going to be easy but he also knew he wanted something different. When his ship finally came in he had the good sense to know it; he answered an ad for a career in real estate, that road connected, and he found his true calling.

Gary was born, grew up and now works in the small town of Tillsonburg, Ontario - population 16,000 and holding. While his home town has languished at times it’s going through a major resurgence due it’s proximity to the new Toyota assembly plant. The youngest of three brothers, Gary originally left the family farm and business for the “one of the lamest jobs around” and found himself wanting a career that would reward his hard-work ethics.

Within four years of starting in real estate Gary was managing the office, and two years later he bought the company. When you look at Gary, it’s hard to believe he’s already been in the business 20 years, but then again people say that about me too. Starting in the business at a much younger than average age is something we share in common.

Gary admits his father has had the greatest influence in his life and wanted to share some well-used wisdom his father shared with him over the years. As much as they didn't always see eye to eye, he has great respect for his dad as a very successful entrepreneur and a hell of a sales person. Some great life lessons from his dad are:

1) Don't judge a book by the cover! The one's who have all the money won't tell you about it, and if you’re dealing with someone who says they’ve got it.......they probably don’t!

2) It's not considered work unless you would rather be doing something else! “There are very few days in the last 20 years that I haven't enjoyed what I'm doing. When I don't have fun anymore...... I’ll quit!”

3) Never play your hand first! At a very young age Gary remembers his father negotiating the purchase of a new Oldsmobile. His parents discussed the price they were willing to pay on the way to the dealership, but he never admitted his price to the salesman. “You never play your hand first; always let them make the first offer.” Sure enough his dad paid substantially less then he was willing to pay. Gary uses this tactic almost everyday when there are plenty of agents who’ll give away their clients without knowing it.

I interviewed Gary prior to Moe’s passing. Gary and Moe were great friends and co-workers for over 10 years, not to mention constant companions at many conferences. The day Moe passed Gary called me to express the sad news. We talked for awhile sharing some memories and our concern for his family. It is through these conferences that we’ve become friends and a little like family.

     


Broker
Coldwell Banker G. R. Paret Realty
Tillsonburg, ON
gary@paretrealty.com

 

New On The Blog
  How Technology Has Helped FSBOs
 

Real-Estate War Traps Consumers in the Middle

Raising the bar or are we to be the scape goats?

Breaking up is hard to do

Realtors using more technology: Nar Survey

How to Attract the Type of Customers You Want

New Home Prices Up

Canadian Real Estate Won't See the Same Cooling as the U.S.

The Difference Photography Makes

Formal Complaint Against Comfree Under Fair Trading Act

     

I read an article recently that discussed how technology has helped real estate agents take a greater market share from FSBOs in recent years. Interesting idea but my experience tells me the opposite - technology has given FSBOs the edge over the real estate industry as a whole, due to our reluctance to embrace it. A survey by NAR last fall showed that the percentage of sellers that sell privately has decreased in the US, but there is no such evidence in Canada. In Edmonton there are currently 23 companies operating what I'll call "FSBO-assist" companies such as PropertyGuys, PropertyDirect and WeList. One of these companies alone in Edmonton claims to have over 500 active listings, when the Edmonton Real Estate board had only 1100. Seems to me, at least in Edmonton, the percentage of FSBOs has increased, and I'm hearing similar stories in other Canadian markets.

Why? Well, this is due at least in part to the market, it is a seller's market in the extreme here, and buyers are scrambling over each other to buy just about anything. There is more to it than that though... When you compare what the average agent does for their sellers, to what these FSBO assist companies offer, some would argue that some sellers would be better off selling privately.

Ok, I know that sounds harsh, and if you're reading this newsletter you are probably not one of the ones at fault, but here is what I'm talking about... When a seller pays most FSBO assist companies their up front fee, they sometimes get a series of decent photos, a lengthy write up on all the features of their home, colour hilite sheets, a yard sign and directional signs, simple instructions on what paperwork is needed, and a referral to a lawyer and any other service companies they may need to sell their home. Rightly or wrongly, these selleres feel they have everything they need before their property hits the market.

I don't know how many listings I've seen recently come on MLS with no photos, and one line of text. Sometimes the for sale sign doesn't even make it up until after the property is sold. I can see how, in the sellers mind, they might get better value paying a marketing fee to a FSBO assist company. So for some of us, technology has given us a leg up, and for others it has helped the FSBO. Go ahead, embrace technology, market your listings the best way possible, and prove that technology can in fact give you the edge over the competition, whoever that competition may be. Our challenge is to explain our technology, marketing and how the MLS can benefit the seller. In addition to properly advocating the benefits of your experience and negotiating abilities.

Technology is not going to replace agents, agents with technology will.

 


Digital Photography Tips
 
In Memorium:
Moe Noormohamed
 

We can't all be experts at everything, and at the same time we all can't afford to hire someone to do all the things we aren't experts at, so for those of us who take our own listing photos here are some tips to put your listings in their best light.

Exterior shots: Don't shoot the home straight on, take it from an angle slightly to the left or right. There are very few elevations that look good straight on and often features will be missed such as a garage or sunroom. Ensure the camera is level, especially if the home has columns or obvious vertical lines, or the home will look misproportioned. Lastly, take a number shots of the exterior at different exposure levels - what looks good on the view finder doesn't always look great on a computer screen - depending on the amount of sunlight the home will look better on some settings than others. If you don't know how to change the exposure on your camera, there are usally a number of little icons for settings such as landscape, portrait, night time, and beach - just take one shot on each setting and you're good to go.

Interior shots: The more light, the better... I use three studio lights to light up the rooms I shoot, plus I turn on all the lights and open all the blinds. People like bright rooms, they are warm and inviting and will appear larger on a computer screen. To really make a room look larger, I take a series of 12 photos of each room and stich them together using Panorama Maker software which takes a fair bit of time but is a huge selling feature on our listing appointments. You can also make animated 360 shots with it as well but I rarely bother. Here are some before and after shots of mine so you can see the difference it makes. I also do a fair bit of touching up of photos (bluer skies, greener grass and so on) but that is a whole day long course and not something I can explain in a short article.

Digital Camera Recommendation: If you are considering purchasing a digital camera, my current top pick for agents is the Canon S80. It has a wide angle lens (it's the only camera under $600 with one), and a fantastic feature for stitching photos that can only be witnessed by picking one up and trying it. You won't find them at FutureShop or BestBuy, head to a real camera store and ask.

Last but not least, here are some photos I've collected recently from the MLS, that in my opinion are the epitome of what NOT to do:


This picture is for a $700,000 listing (which is a BIG deal in Edmonton ;) and it was clearly taken on a camera phone. I mean, come on people, you are getting paid a hefty commission and you can't take the time to bring a camera, or better yet, hire a professional?


Pictures of the corners of rooms... is there a better way to say "This room is so small I can only fit into the corner"? A wide angle lens will make a world of difference, or as I do, take a series of photos and stitch them together.


A few comments on this one... First, the date and time stamp is turned on, nothing dates a listing more. Second, the house is in the shade and is quite dark, try a different exposure, or taking the photo at a different time of day. Third, you can't see the front door. Fourth, there is a hint of car door on the bottom right corner suggesting the photographer didn't even get out of the car. Last, it is taken portrait style - on many websites (including coldwellbanker.ca) photos must be taken landscape style or they will get all squished and look really strange.

I don't know what to say about these except, why would someone even take these photo let alone publish it on the web?! If the room is a mess either clean it up or move on. The photo on the right was actually the main photo for the listing I found it on!



Is this guy trying to sell Tide or a home?




For these two it's not entirely clear which house is for sale. Try and keep distractions like yeild signs, light posts, and pick up trucks to a minimum. And don't forget, people like to see the front door.


Last is an example of poor lighting and exposure. A room that has a ton of natural light needs as much artificial light as possible to balance the sunlight, if you are going to try and take a picture of the window. Either bring in studio lights, or come back on a rainy day, and don't forget to turn on all the lights in the room.

     


Recently we were devestated to
learn we had lost a true friend;
Moe Noormohammed of Coldwell
Banker Westburn and previously
Coldwell Banker G.R. Paret,
passed away in his sleep on July
17, 2006 after a long struggle with
heart disease.

If you didn't know Moe, he was
featured in our
very first issue of Network News
just about a year ago. Our
thoughts and prayers go out to his
friends and family.

Moe had many friends in the
Coldwell Banker network, as he
didn't just attend events, he was a
presence there. Always with a
cheerful smile and a great big bear
hug. All I know is that his loss will
be felt by everyone who knew him.

We miss you bud and we'll see
you on the next cruise ;)

We've put together a small
collection of picture of Moe from
various network events. Click on
any of the photos in this column to
see the complete gallery.

 

 

 

Teeing Up For Success! By Sheldon Johnston
 

Truly the great thing about networking is the learning and sharing of ideas. We recently had the pleasure of a round of golf and dinner with some of Alberta’s finest. We “pontificated” on current trends, future market expectations and business strategies, and as always happens when we get together the verbal libations flowed like the North Saskatchewan River. At the table were agents and brokers from a small rural market, a small urban market and two major urban centers.  The discussion was surprising, and the answers even more surprising.

First up: Is the MLS still relevant?  

The consensus from the group was that the MLS is still relevant, albeit less so in the smaller centres where they tend to double-end transactions more often – one agent has had 90% of his listings sold before they got onto MLS. Bob Metcalfe from Chinook City felt that the MLS allows buyers to research ahead of time helping prevent sticker shock. One thing we could all agree on and cite numerous examples of, is that the MLS gets sellers a higher price for their home than selling privately.

On a personal note I feel that interesting times are ahead as CREA moves forward with its Pillars of MLS; the last 3 dispatches (08, 09 and 10) have laid out what it will take to be a member of the MLS.  Considering what is happening in the US with NAR and the anti-trust suits it would appear that we may be in for an interesting ride as traditional models get their legitimacy tested. Rumour has it that the Toronto and Montreal boards will boycott CREA’s AGM if CREA doesn’t pull Dispatch 10 from the agenda.

Lead Generation

Doug Symonds from Claresholm, a smaller market just South of Calgary felt that the franchise web site plus MLS.ca generates all the leads they need. The large urban centers were split on this; one group being able to derive far more leads off their personal or company website and the other group using the franchise site as a major part of their listing presentation but not really deriving any significant value from it. Most agreed that a proactive broker in a larger market can definitely be an asset. In Lethbridge, Erroll Zaretski doesn’t even have a website – he apparently can’t handle anymore leads! An enviable position for sure. 

Media vs. Message

Erroll Zaretski asked each of us how many e-mails we get a day, and do we actually read all of them? Answers ranged from 10 – 100 but we agreed we rarely read every one. His point is that many people are getting away from the basics of the business; his approach is low tech, high touch sending out 400 hand stuffed envelopes every month instead of invading his clients’ inboxes. Some concern was expressed with this approach indicating there is a trend towards being environmentally responsible with marketing material, and also that digital marketing can be far more economical. Overall we agreed at the end of the day that it is the message that matters, not the media and that in most markets a combination of digital marketing and traditional marketing work best. 

I know far too many agents who have paid big dollars for materials and 4 or 5 mail drops and obtained absolutely nothing. I also know a few who have had great success from this approach. We have had tremendous success with lead generation.  I wonder why?

What one thing would you change about your business?

Bob Metcalfe – More and consistent follow up.
Dave Nicholson – Continue to demand more value from the franchise
Mark Ross – Step back or step up. Get more people involved or start to turn away business.
Erroll Zaretski – Not going to change a thing.
Sheldon Johnston – Let Sara do all the work
Sara MacLennan – Go to work for Andrew Zsolt

Random Thoughts at the table.

  • A good deal of Realtors do a poor job of explaining to the public what we do and how we add value; do it well and FSBO companies should have no affect on your business.
  • Franchise value appears to be diminishing with many agents starting their own independent offices and more local franchises entering the market.  So don’t be afraid to make your own value, good broker is worth a 1000 franchises.
  • Discounters - no discount companies seem to be affecting anyone at the table. Mark Ross and Dave Nicholson breakdown their entire fee during listing presentations, and suggest that since they do so much more than the average agent they deserve a higher fee, and 90% of the time they get it.

Overall the consensus is we have to adapt with the times and do things for ourselves.

 

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