Advice for Agents https://realestatemagazine.ca/category/advice/ Canada’s premier magazine for real estate professionals. Thu, 30 Jan 2025 15:18:30 +0000 en-US hourly 1 https://wordpress.org/?v=6.7.1 https://realestatemagazine.ca/wp-content/uploads/2022/09/cropped-REM-Fav-32x32.png Advice for Agents https://realestatemagazine.ca/category/advice/ 32 32 Lessons in Leadership: Natalka Falcomer on Don Kottick’s secret to success https://realestatemagazine.ca/lessons-in-leadership-natalka-falcomer-on-don-kotticks-secret-to-success/ https://realestatemagazine.ca/lessons-in-leadership-natalka-falcomer-on-don-kotticks-secret-to-success/#respond Thu, 30 Jan 2025 10:03:31 +0000 https://realestatemagazine.ca/?p=37000 Sotheby’s Canada President and CEO, Don Kottick predicts a leaner, more competitive industry in Canada and has advice for those looking to carve a path in real estate

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Effective leadership can make the difference between success and stagnation in an industry as competitive as real estate. Don Kottick, president and CEO of Sotheby’s Canada, has consistently demonstrated the ability to inspire, innovate, and adapt. 

 

“Some of the best lessons in business have come from the worst leaders,”- Don Kottick

 

For Kottick, the cornerstone of leadership is assembling the right team. Reflecting on his experience leading at Sotheby’s, Royal LePage, Johnston & Daniel, Peerage Realty Partners, Right At Home Realty and the Real Estate Institute of Canada (REIC), he emphasizes the importance of trusting your instincts when making hiring decisions. “Your intuition knows,” he says, recounting key hires that transformed teams and drove exceptional results. 

The principle of “getting the right people on the bus,” inspired by Jim Collins’ Good to Great, has been a guiding philosophy throughout his career. Associated with this first principle is the second of “hire slow and fire fast, if they are not the correct individual for the role”.

Beyond hiring, fostering a culture of excellence is paramount. Kottick believes in setting high standards for professionalism and development. “Trust, transparency, and collaboration are crucial to any organization’s success,” he notes. 

He champions open communication and encourages feedback from all stakeholders to stay attuned to the market’s evolving needs and nuances.  Kottick shares, “Some of the best lessons in business have come from the worst leaders, especially those leaders that espouse values that they fail to deliver on.”  

 

Elevating brands to new heights

 

Kottick’s tenure as president at Right at Home Realty demonstrated his focus on branding as a critical component of leadership. Recognizing the need to elevate the brokerage’s reputation in its early days, he worked to position it as a credible and appealing destination for real estate professionals. 

By recruiting and developing a new management team and restructuring the organization, he substantially increased the company’s market share and propelled it to the top brokerage position in the Greater Toronto Area by transaction units. 

Under his leadership, the company improved its national ranking in Canada within two years even though it was a regional player. This focus on branding wasn’t just about perception—it was tied to measurable outcomes that resulted in substantive growth.

 

“Technology should be a competitive differentiator, not a patchwork of disjointed solutions,” – Don Kottick

 

As the real estate industry increasingly intersects with technology, Kottick has been a vocal advocate for thoughtful innovation. At various organizations, he spearheaded the integration of proptech designed to streamline operations and enhance client engagement. 

From virtual tours in the early days of the internet to advanced marketing dashboards, his focus has always been on creating tools that provide real value rather than adopting a scattershot approach.   

As a former director of the Canadian Real Estate Association, he was the leading advocate for more investment in the development and promotion of Realtor.ca in order to combat competition from the USA.

“Technology should be a competitive differentiator, not a patchwork of disjointed solutions,” he explains. This principle has guided his leadership, ensuring that agents have access to resources that empower them to deliver extraordinary client experiences.

 

Navigating change

 

The real estate market is no stranger to upheaval, and Kottick has faced his share of challenges. From economic fluctuations to regulatory shifts, he has led teams through periods of uncertainty by prioritizing adaptability and resilience. “The industry has become more competitive, with a clear flight to quality,” he observes. “Realtors and brokerages that can’t offer measurable advantages are being sidelined.”

To navigate this landscape, Kottick underscores the importance of continuous learning and innovation. Whether introducing new training programs or leveraging emerging technologies, he has consistently championed strategies that prepare teams and Realtors for the future. One such example was bringing the Ninja Selling philosophy and methodology into the culture at Sotheby’s Canada which he says translated in serious productivity improvements. 

 

A vision for the future

 

Looking ahead, Kottick predicts a leaner, more competitive industry In Canada. He sees a future where only those who combine exceptional service, cutting-edge tools, and a commitment to excellence will survive and thrive. 

For aspiring Realtors and brokers, his advice is clear: focus on building relationships, embrace lifelong learning and align yourself with organizations that support your growth and have a strong international brand and presence.

Under Kottick’s leadership at various organizations, the numbers speak for themselves. whether at Johnston & Daniel, Royal LePage, Right at Home or Sotheby’s Canada, he led the teams that drove significant growth. 

More recently at Sotheby’s International Realty Canada, sales volume increased from $4-billion to $10-billion, and the agent population nearly doubled with Kottick at the helm. These results highlight his ability to develop and transform businesses, enhance their market presence, and create lasting equity value for the organizations.

Kottick’s leadership journey offers a blueprint for managerial success in real estate. By prioritizing people, leveraging technology wisely, and remaining adaptable in the face of change, he has not only navigated the complexities of the industry but has also inspired those around him to reach new heights. 

For those focused on building their careers, his approach serves as a powerful reminder that great leadership starts with a commitment to excellence and brand.

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How Connexus Group uses culture and contribution to build success https://realestatemagazine.ca/how-connexus-group-uses-culture-and-contribution-to-build-success/ https://realestatemagazine.ca/how-connexus-group-uses-culture-and-contribution-to-build-success/#respond Tue, 14 Jan 2025 10:05:51 +0000 https://realestatemagazine.ca/?p=36655 Ravi Singh inspires his team to embrace servant leadership, collaboration and a shared vision. With 27% growth in 2024, it's working

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“Pain is a good teacher … The silver lining is we don’t have any drama.”

This is what Ravi Singh, team leader of Connexus Group at Re/Max (Connexus), had to say about the fallout of his third major health scare since 2006. After he dealt with a colectomy, cancer, gallbladder removal, degenerative liver disease and 13 emergency room visits in a year, Singh’s team quickly learned what matters and has been extremely motivated to achieve greatness—both for themselves and their leader.

“They work really hard. Our numbers are up 27 per cent (in 2024 from 2023),” Singh notes. “They showed up when (I) needed them.”

He feels that anyone can be successful anywhere but, “Sometimes you want to have somebody to high five. You want to feel like these are my people (and) I can’t wait to share good or bad news.”

Indeed, Connexus saw $1.8 million in gross commissions last year. Of course, this and the rest of their success—including consecutive Re/Max Platinum and Diamond Team awards since 2016—result from very intentional efforts.

 

Habits, rituals and culture

 

Singh says the main things vital to his team’s success are the culture and core beliefs. “We work on an ‘all hands on deck, everyone wins’ philosophy,” he says.

Connexus agents start with the philosophy of contribution. “Giving starts the receiving process,” Singh says, and his team isn’t there for what’s in it for them. “They’re trying to figure out how to grow through giving. To really understand that is at the core of what we do.”

This “servant leadership” approach creates an optimal platform to understand agents and meet them where they’re at, ensuring their version of success is being navigated, not his. “I’m giving them the best possible platform in terms of tools, resources, mentorship, expertise and business best practices that I can to ensure that success.”

 

A balanced view of contribution and value plus quantity and scale

 

Singh notes that agents typically look at quantity and scale, while he looks at contribution and value.

He stresses how important both elements are to success and notes this is where the servant leadership philosophy comes in. “When we serve, the byproduct is kinship and money … It’s about how (we) can make an incredible contribution.”

 

Consistent processes and practices year-round

 

Singh holds two regular meetings that he says are crucial success factors, the first being a weekly “jam session.” There are two components to this.

First, the deals pipeline gives agents a “bird’s eye view and fly-on-the-wall perspective” of what others are working on, to learn through experience, something Singh notes is invaluable to all. The second component is a future focus on marketing initiatives that Singh breaks down into process and projects.

Process involves things like buyer and seller appointments, open houses, showings, offers and paperwork.

Projects are assessed to ensure the team is building a healthy pipeline that targets their ideal client or demographic: an “approachable baller” he describes as very well-rounded, with, say, two kids and a nice townhouse in a walkable, urban Toronto community. Recent projects centred around the holidays and included client gifting, events, drop-bys, annual comparative market analyses, real estate reviews and surveys.

The second regular meeting is a 10-minute agent huddle, where team members stay accountable by reviewing, answering and documenting three questions: What are you working on? What did you do? What is your immediate next step?

Singh also holds an annual offsite for yearly planning, and “all hands on deck challenges” about twice a year. These are proactive campaigns for lead generation with high-touch, one-to-one, personal client transactions. “Nobody leaves until it’s done. I give them what I call ‘rocks’ to call, (or) people and initiatives, like introducing the Re/Max Canada Housing Outlook report to 30 people daily.”

 

An open policy on financials

 

Singh feels his openness around financials sets his team apart. He says the open-book policy has created incredible transparency and trust, and he’s “very comfortable” with the company’s net operating income of 13.5 per cent because he’s being fair to his agents.

The team leader reports that in 2024, his team of seven earned about $1.8 million in gross commission from 83 transactions and 36 leases, growing by about 15 percent year-over-year.

 

Agent profile

 

Singh’s agents have been with him for years, some over a decade, and there’s next to no turnover. They’re very competitive, extroverted high-achievers but, “They have no organization,” he points out with a smile.

This is why Singh hires naturally organized staff who can support the agents with everything from coaching and mentorship, administrative support, listing preparation, database management and programming to increasing lead generation, prospecting or geographic farming and online leads.

Singh’s agents are team-oriented and coachable and don’t need the spotlight. He likens this to a band: “Each band member must play their part … My ideal agents want to succeed but not necessarily do all the parts—(just) be belly-to-belly with clients and thrive in the hot seat.”

Likewise, Singh is intentional about not putting himself in the spotlight. He explains that each team member is their own top producer and could thrive alone. “But the goal is not to create a revolving door of juniors,” he stresses.

 

Advice for agents

 

Connexus has a corporate charter with defined principles or beliefs, including being relevant, energetic and fun. Singh believes this last charter quality is paramount. “If you’re not having fun, why are you here? To shuffle through something you dislike? I don’t want that energy around me.”

He also tells anyone looking to improve to remember that success leaves clues and builds off of mentors, colleagues and models. “Don’t reinvent the wheel,” he advises.

Finally, to truly succeed, he says agents must define what success looks like for them, personally. For Singh, it means retiring on the Amalfi Coast surrounded by his grandkids and his team, looking back on 2023.

“I haven’t built a team, I’ve built a family.”

 

Photo: Connexus Group team

 

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Don’t get sued: Legal risks in real estate practice https://realestatemagazine.ca/dont-get-sued-legal-risks-in-real-estate-practice/ https://realestatemagazine.ca/dont-get-sued-legal-risks-in-real-estate-practice/#comments Mon, 13 Jan 2025 10:05:46 +0000 https://realestatemagazine.ca/?p=36533 The smallest oversight can lead to significant legal and professional consequences. Learn how to safeguard your reputation with meticulous documentation and ethical practices

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In the high-stakes world of real estate, a single misstep can transform a promising career into a legal nightmare.

Although I’m an active Realtor, back in the 1970s, as a broker, I was called upon to testify as an expert witness. The case involved a broker who was accused of not being vigilant during an open house when jewelry was stolen by someone from the public. That single case started a second career for me as an expert witness. I’ve testified in about 600 trials and written thousands of expert reports, seeing firsthand how quickly professional dreams can unravel.

The real estate industry is experiencing a critical moment. An influx of poorly trained, part-time agents who fail to understand fundamental rules and regulations is creating a perfect storm of potential litigation. The consequences are far more than monetary—they can devastate an agent’s reputation and professional future and negatively impact their brokerage.

 

The landscape of professional liability

 

Agents face numerous potential legal challenges, including professional negligence claims, fraud allegations, breaches of fiduciary duty, misrepresentations of professional expertise, financial damages from incorrect advice to buyers and sellers, vicariously dragging their brokerage into litigation and the besmirching of their personal and their brokerage’s reputations (which can be dramatic in smaller communities).

One of the most insidious risks lies not in outright lies but in strategic omissions. Agents who fail to disclose critical property details—whether they’re zoning restrictions, environmental hazards or structural defects—are setting themselves up for potential lawsuits.

 

Common pitfalls

 

There are many recurring issues that invite legal scrutiny and lawsuits, including:

Agents stating that zoning or other uses are legal when they’re not. It’s up to you to verify the zoning online or in person at the local zoning office.

 

Omitting negative factors

 

Sloppy practice inclusive of badly written offers

 

Accepting details from older, previous listings as fact, like incorrect lot sizes or room and gross area dimensions. Original builder representations of square footage can be exaggerated. Buy a decent laser measurement tool and, if possible when listing, get electronic floor plans and the provincial assessment gross floor area.

 

Pushing buyers to make a clean offer when they won’t qualify for an adequate mortgage

 

Selling land for a home or other construction only for the buyer to find out that it’s in a flood plain or on a restricted site

 

Selling contaminated land without disclosure, promising the buyer a specific (and usually inflated) price for their home when the market value wasn’t there, so they can’t close

 

Lack of understanding of the rules and regulations that guide the real estate industry

 

Your best defense: Documentation

 

The difference between surviving a lawsuit and being crushed by one often comes down to one critical factor: meticulous record keeping.

Agents must maintain comprehensive documentation of every transaction, including all offers, counteroffers and forms, detailed transaction diaries, email correspondence, text messages, handwritten notes and verbal communication summaries.

Be sure to verify all facts including former MLS listings and verbal representations by your sellers or buyers.

Putting this all together can be challenging and depending on the case can eat up two weeks of an agent’s time. Text message downloading can be a chore. As well, the brokerage has to produce a similar list. Preparation is your shield.

Here’s some practical advice you can implement now:

  • Maintain a detailed transaction diary
  • Document every conversation and action
  • Verify all property and market information
  • Be transparent about potential limitations
  • Follow legal counsel’s guidance precisely
  • Learn the rules, and study your provincial and board guidelines

 

The emotional and professional toll

 

Being sued is more than a legal battle—it’s an emotionally draining experience that can paralyze your business. If you end up in a legal case, remember, the lawyers assigned to it are veterans and they will guide and advise you. Follow their direction at all times.

Some cases settle not because the agent did something wrong but because the lawyer felt that they would make a poor witness. Some people simply can’t handle the cross-examination of opposing counsel—I’ve observed agents breaking down and quivering on the stand during that process.

 

The real estate profession demands more than sales skills—it requires unwavering professionalism, attention to detail and a commitment to ethical practice. Keep these tips in mind to protect your reputation and your business.

 

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Home upgrades to help clients add value and reduce risk and costs https://realestatemagazine.ca/home-upgrades-to-help-clients-add-value-and-reduce-risk-and-costs/ https://realestatemagazine.ca/home-upgrades-to-help-clients-add-value-and-reduce-risk-and-costs/#respond Mon, 13 Jan 2025 10:03:18 +0000 https://realestatemagazine.ca/?p=36647 Guide your clients with strategic home improvements that can lower insurance premiums and enhance safety, security and marketability

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As a real estate professional, part of your role is to help clients make informed decisions that not only enhance their homes’ value but also provide long-term savings.

An often overlooked opportunity is advising homeowners on upgrades that can reduce insurance premiums while improving the property’s safety, resilience and appeal. Zoocasa reported on these 10 key improvements to share with your clients.

 

1. Install a security system

 

Encourage clients to invest in modern security systems with cameras, alarms, fire and carbon monoxide detection and smart locks. Insurers often reward homeowners with premium discounts for reducing theft and burglary risks.

 

2. Upgrade the roof

 

A durable, weather-resistant roof lowers insurance risks significantly. Suggest materials suited for local weather challenges, such as impact-resistant shingles, especially in storm-prone areas like Ontario or Alberta.

 

3. Add storm shutters or impact-resistant windows

 

For clients in areas with severe weather like snow or rain storms, these upgrades provide extra protection and demonstrate proactive risk management, leading to potential insurance savings.

 

4. Update electrical wiring and plumbing

 

Highlight the importance of modern wiring and plumbing systems to reduce fire and water damage risks. This is especially crucial for older homes.

 

5. Enhance surge protection

 

Whole-house power surge protection safeguards electronics and electrical systems, lowering risk profiles and qualifying homes for potential insurance discounts.

 

6. Use fire-resistant materials

 

Non-combustible siding like stone or brick, and fire-resistant insulation and roofing can significantly reduce fire risks and lead to lower premiums for clients.

 

7. Upgrade heating systems

 

Recommend modern, energy-efficient heating systems, like natural gas furnaces or electric heat pumps, to reduce fire hazards and enhance energy efficiency. Clients can save on utilities and insurance.

 

8. Install a sump pump or backflow valve

 

In flood-prone areas, these upgrades protect basements and electrical systems from sewage and water damage and may qualify homeowners for reduced premiums.

 

9. Consider fire sprinklers

 

For dry or high-risk fire areas, a sprinkler system can control fires early, mitigating damage and often resulting in lower insurance costs.

 

10. Maintain a clean property

 

Regular maintenance—like clearing gutters and trimming trees—improves curb appeal, prevents avoidable damage and keeps insurance claims at bay.

 

By advising your clients on these upgrades, you position yourself as a knowledgeable professional who prioritizes their best interests. These improvements not only reduce insurance costs but also enhance a home’s appeal and marketability, giving your listings a competitive edge.

 

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Setting up a fantastic 2025 with business planning and ongoing support https://realestatemagazine.ca/setting-up-a-fantastic-2025-with-business-planning-and-ongoing-support/ https://realestatemagazine.ca/setting-up-a-fantastic-2025-with-business-planning-and-ongoing-support/#respond Tue, 07 Jan 2025 10:05:10 +0000 https://realestatemagazine.ca/?p=36449 Learn the four keys to running a successful and enjoyable business each year as a real estate professional

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As real estate professionals, we tend to get wrapped up in the day-to-day—especially when we’re juggling multiple clients, deals, properties and, well, life! Plus, it can feel like we’re on a rollercoaster of emotion in this career, so it’s essential to take steps to achieve calm, balance and forward movement.

But how?

The key to running a successful and enjoyable business each year as a real estate professional requires a few basic things: 

  1. Leads and clients
  2. Annual business and marketing planning (including goalsetting)
  3. Scheduling/time-blocking to support the plan
  4. Ongoing support/training/professional development

 

1. Leads and clients

 

Most of us make money only when we sell properties, when we refer a client who sells or when we get a percentage of another sale. Even the best of the best in the real estate industry can only be successful with actual leads and clients to SELL to. It’s therefore vital that you have a solid plan to attract and retain leads and clients on an ongoing basis.

 

Sphere or circle of influence/database

 

Whatever you call it, your list of contacts (people who know who you are, like you and, ideally, trust you) is GOLD as a real estate professional. It’s said that attracting a brand-new prospect or lead is six times more expensive than fostering an existing relationship. That’s a lot of extra cash to throw around.

As you get into the new year, ensure that you have a functional CRM (customer relationship management) tool or database system in place to track your contacts and your interactions with them. Include key details like their name, phone number, email, address and birthday. Do some research and choose the system that fits you and your business best.

Pro tip: If you already have a database system, do a relationship audit and choose a few contacts on social media to see if you have them in your database.

 

2. Annual business and marketing planning (including goalsetting)

 

January is a time with many business planning sessions, and the people running them are passionate about helping. They run through key areas of business:

  • Mission, vision, plan
  • Word of the year for the upcoming year
  • How did you do last year? This includes numbers, celebrating accomplishments and lessons
  • How do you want to do next year? This includes numbers and goalsetting/vision boarding
  • How will you keep in touch with clients?
  • How will you grow your client base?
  • Client appreciation
  • Marketing ideas (in line with budget)
  • Professional development/accreditations
  • Coaching
  • Networking opportunities/groups

If you can join in on a business planning session—either in person or virtually—with successful colleagues, you’ll also be able to help each other mastermind, idea-share and problem-solve. These sessions tend to be shared by word-of-mouth, with agents taking time each year as part of their commitment to giving back and deepening their referral relationships. 

 

3. Scheduling/time-blocking to support the plan

 

The best part (and worst part) about the real estate industry is the ability to be your own boss. As many of our colleagues have noticed, our bosses might be too strict, too lax or just a mess sometimes. Jon Acuff noted the key to things that are important but may be difficult is to allocate roles according to the mindset we have in the evening or the morning:

Morning me is in charge of actions. Morning me is a great order taker but will talk me out of anything difficult if it’s asked to decide.

 

Jon Acuff, New York Times author and leadership speaker

It’s also important to know how and when you work best as an entrepreneur. Some people crush the day if they start at 6:00 am, others work best in the late evening hours. It also depends if you need quiet or silence to work or if being around too many people makes you incredibly unproductive because you’re a social butterfly.

Brian Buffini talks about the Win the Day formula:

  • 2 hours of solid lead generation every day = win the day
  • 4 days a week of winning the day = win the week
  • 3 weeks a month of winning the week = win the month
  • 8 months a year of winning the month = win the year

This seems low, but the two hours a day is a solid two hours of being face-to-face or voice-to-voice or writing a personal note to clients and contacts. As a professional real estate agent, you also need to take time to market, network, complete paperwork, do professional development, etc. Surprisingly, the two hours a day is more than most real estate professionals put into that lead generation.

 

4. Ongoing support/training/professional development

 

One of the most common things we hear about in the real estate industry is that real estate as a career can feel very isolating and very lonely—especially if you’ve chosen it as a second career. The way to circumvent that loneliness is to connect with your colleagues.

To ensure that you feel supported, here are a few tried-and-true things I recommend to agents that you can start implementing today.

 

Join the right brokerage

 

When you’re interviewing brokerages for the right fit, look beyond the dollar split. Just like when we sell a home, cheaper services aren’t always better services. Look at training, the culture of the offices/brokerage, office meetings, etc., and talk to some of the agents to get their views.

 

Network with other agents

 

With Buffini, I run a Buffini Group and within my office, I also run a Mastermind. The goal of both is to connect, share ideas and help each other. Each city will have these; the key is to find a group that’s open to welcoming you as a member with an attitude of abundance (and not one of scarcity).

 

Join or start a business networking group

 

As a real estate professional, you might find that existing networking groups already have your spot filled (along with the mortgage agent), but every now and then, a spot opens. Take a couple of meetings to see how you vibe with the group and then, if you like the people, go for it! If there isn’t a group with an open spot, do what I did in 2013 and start your own. You can set up an atmosphere of warmth, welcome, support and abundance all while helping yourself and others with their businesses.

Pro-tip: Even though saving money is important, if it’s possible, make sure every dollar you spend on your business is going to another businessperson who you can build a relationship with and who might, one day, give you business back.

For example, there might be a great deal on business cards online, but someone in your networking group can get them done professionally for just a bit more money and might refer you business or connect you with someone who can.

 

Get a coach

 

When it comes to excelling in your field, getting a real estate coach is a great idea. Most highly successful people in the world have coaches—from business coaches to trainers—and there’s a reason. Being accountable to someone who knows your business and can see it from the outside is important.

While it seems you cannot throw a rock without hitting a real estate agent, there are an almost equal number of coaches out there. Whatever you invest in a coach should be less than you earn with the coach in your business.

Find one with a solid track record who can help you to be the best you possible, and take the time to interview the coach to ensure it’s a good fit. If it’s not, keep looking until you find the right coach who understands you and helps you shine. The key is to find the coach, program and/or system that resonates best with you.

Pro-tip: Pick one at a time. Being over-coached is like being over-conferenced. It feels great while you’re in it, but are you really getting the benefit if you never have time to implement anything?

 

Get an accreditation

 

From full-service professional to luxury home marketing or international property specialist, there are an abundance of certifications and accreditations you can get. It’s really about staying sharp and on top of market trends to be a better real estate professional for your clients.

 

Take time to plan and chart a path forward so you can hit the ground running this month. We can GIVE our best when we’re AT our best. Cheers to a fantastic 2025!

 

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Helping clients navigate the complexities of rental property investments https://realestatemagazine.ca/helping-clients-navigate-the-complexities-of-rental-property-investments/ https://realestatemagazine.ca/helping-clients-navigate-the-complexities-of-rental-property-investments/#respond Mon, 06 Jan 2025 10:05:34 +0000 https://realestatemagazine.ca/?p=36421 From choosing the right type of rental to understanding costs and management, there’s more to it than meets the eye

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Many people find buying or converting their primary residence to an investment property unexpectedly complex. Choosing the right property and hiring professional property management are critical decisions. Real estate professionals are key in guiding their clients with these key decisions.

 

Investment property types: Pros and cons

 

Choosing an investment property type has the potential to be difficult for clients, as each comes with distinct advantages and disadvantages. Vacation rentals, fully furnished executive rentals and unfurnished residential rentals cater to different markets:

  • Vacation rentals offer high short-term income potential and flexibility but require intensive management and face regulatory challenges.
  • Fully furnished executive rentals attract business professionals seeking convenience for medium-term stays, offering steady income and reduced turnover, though furnishings can increase costs and wear.
  • Unfurnished residential rentals target long-term tenants, providing consistent income and lower upkeep, but may lack flexibility and have more extended vacancy periods. 

Realtors must consider market demand, regulations and client goals when recommending these options, balancing profitability with the specific needs of landlords and tenants.

Clients also need to consider the financial aspects of their investments carefully. While rental income is often the primary focus, many other factors come into play when purchasing a rental property.

“When I have a client looking at investment properties, we discuss everything at the beginning of the sales process,” says Julia Stauffer, real estate agent with Macdonald Realty in West Vancouver.

“I want to ensure they have their finances in order beforehand. Many clients overlook the costs associated with these properties. Depending on the property, there can be mortgage fees, property taxes and maintenance costs. Too often, people focus solely on rental income and fail to account for these expenses.”

Phillip Davies, owner of Cartref Properties, echoes this sentiment. “When I bring on a new rental client, I always advise them that operating costs can vary, impacting their income. A rental property is no different from other investments. I tell them it should be treated as a long-term investment and held for at least five years.”

 

Complexities of rentals in an ever-changing market

 

However, buying the property is only the first step. For many owners, understanding the complexities of rentals can be overwhelming, and rental agreements, provincial regulations and market trends are just some of the factors to consider when renting a property.

Clients choosing to hire a professional property manager or take on the responsibility themselves can greatly impact their experience. “Part of my discussion with clients involves the management process. It comes down to the buyer’s confidence and experience level when deciding whether to hire a professional manager,” says Stauffer.

“The Metro Vancouver rental market is difficult for landlords right now. There are ever-changing regulations to keep up with, and mistakes have costly ramifications for landlords. We’re also seeing an increase in availability, so understanding how to market units is key. Rental units are staying vacant slightly longer, and rent prices are trending downward,” Davies adds.

 

The right representation matters; experience and transparency are key

 

The right representation matters, and finding a good fit with a property manager is crucial. Clients are often referred to management companies through their colleagues, friends or realtors.

Wallis Lee, Managing Broker at Sutton Max Realty and Property Management, notes that her team is often involved during the sale. “80 to 90 per cent of our clients come from referrals, particularly from realtors. We’re often asked to provide a quote for rental management as part of the sales package,” Lee explains.

“Sales is a full-time job, and so is property management. It’s impossible to do both effectively while providing the best service to clients,” she adds, emphasizing the importance of working with a specialized manager. Lee notes that property management is more than simply renting the unit. There’s ongoing coordination of the property, from daily operations to financial needs.

Davies agrees and highlights the importance of hiring a manager experienced in handling the specific property type being rented. He also stresses the need for financial transparency. A reliable management company should provide regular financial statements detailing the rental’s income and expenditures.

 

Investing in rental properties can be complex for the uninitiated. It requires careful planning, financial preparation and an understanding of complex regulations. With the proper guidance from real estate professionals and property managers, buyers can make informed decisions about how to best manage their assets.

 

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Burnout is a reality for many Realtors—here’s how to avoid it https://realestatemagazine.ca/burnout-is-a-very-real-hazard-for-realtors-heres-how-to-avoid-it/ https://realestatemagazine.ca/burnout-is-a-very-real-hazard-for-realtors-heres-how-to-avoid-it/#respond Mon, 16 Dec 2024 10:01:35 +0000 https://realestatemagazine.ca/?p=36125 There are practical ways for resetting, recharging and reclaiming your balance to avoid year-end exhaustion

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With the holidays nearing, so many in the real estate industry are approaching or past the point of burnout—a challenge the World Health Organization has identified as an occupational phenomenon. Symptoms include constant exhaustion, growing detachment or cynicism toward work, and reduced effectiveness on the job—issues that can weigh heavily on Realtors, especially during the year-end rush.

Addressing burnout requires more than surface-level fixes. From rethinking self-care to setting boundaries and rediscovering joy in the job, there are practical steps Realtors can take to recharge and thrive—both personally and professionally—as they head into the new year.

 

Self-care means many things, not only “turning off”

 

Debbie Cosic, CEO and founder of In2ition Realty emphasizes that self-care is a crucial part of combating burnout and notes that it can take many forms. At her company, the annual December strategy meeting is held at a spa, giving team members the chance to reflect, recharge and reset while enjoying treatments. But Cosic is quick to point out that self-care goes beyond spa days and relaxation.

Chris Harding of Engel & Völkers Nova Scotia Halifax agrees, highlighting that Realtors are naturally outgoing and always “on,” whether networking, attending events, or working with clients. “We usually end up in the business because of it,” he says, adding that self-care doesn’t always mean turning off completely. Instead, it can mean stepping outside of your routine and trying something new—whether it’s a simple activity like doing a puzzle or reading a book, or something more involved, like trying a new sport, tackling a home project, or volunteering.

 

Tips on how to recharge day-to-day

 

  • Don’t drive whenever possible. “If I don’t have to drive somewhere, I won’t. Get out of the car,” Harding suggests. “These are habits we don’t even think about.

 

  • Leave the phone behind. Harding points out Realtors are not on call and don’t need their phones at all hours. “If you’re not waiting for anything time-sensitive, leave it in another room,” he advises. “You have voicemail and can state what your hours are.”

 

  • Learn to let go and have fun. Cosic believes in and encourages having fun, especially because her team works incredibly hard. She explains the development industry is filled with events, thanks to large marketing budgets affording things like dinners out, sports games and even trips. “It’s a huge outlet for them, the fun part of the job they look forward to.”While many in the industry don’t get to access events like these, there are many ways to have fun within and outside of work. The key is tapping into what it personally means for you and finding outlets to enjoy yourself.

 

  • Quit saying yes to everything. Harding feels learning to say no when needed is probably the hardest one to learn, especially for newer agents, but it’s important. “You can do this nicely, by clearly communicating how and when you talk to clients or the office hours you keep.” Of course, at times you’ll deviate, but the key is to set boundaries. Be polite and keep it simple. “If it’s an appointment request, suggest another time and don’t share your reason. You’ll get a sense of empowerment and your clients will respect it and gain confidence when you negotiate on their behalf—they’ll understand you have power.”

 

  • Collaborate and delegate—don’t master everything. This doesn’t mean you need to be a top performer with an executive assistant, but it’s important to take advantage of your colleague’s strengths and weaknesses and use automated tools to alleviate stress and workload.

 

How self-care can impact your business

 

For Harding, his comfort, energy and attitude towards working each day improved when he put self-care on his radar. “It inherently changes how we communicate, which is key since we’re in a relationship business. If you’re communicating from a better place internally, it affects your performance and your clients will notice,” he asserts.

Truly understanding these concepts often comes from experience, which can mean hitting some thresholds before you realize their importance. That’s where mentorship comes into play, especially for early-career agents.

Cosic sees this in her team members, who are extremely driven and work very long hours, adding, “Our biggest problem is trying to teach some of them life balance. We’ll say, ‘You can’t work those hours. Please schedule days off. Take your team out for lunch.'”

She recalls it took a long time to teach them because of their “hardworking, aggressive and successful nature,” and the fact they run the same pace at home that they do on the job. However, there’s a healthy balance to strike: “Yes, you have to work very hard, but you have to take care of yourself,” Cosic stresses. “If you don’t, it’s all for naught. There are only so many dollars you can put in the bank.”

 

How the industry can help agents avoid burnout

 

Harding says that first, self-care needs to be on their radar. In his experience, brokers want to help and would probably take it seriously if it were brought up. For example, “Many bring in industry-related speakers to meetings, but there’s an opportunity to have professionals talk about helping those running the business.”

Cosic has thought about this for a while and supports her team in different ways. For example, since the pandemic, she’s offered team members mental wellness support, including covering the cost of counselling, “Some people have had a dozen or so sessions over a year because they’ve gone through a traumatic situation they needed to deal with.”

Aside from intentionally shutting down her office over the holidays so people can “regroup, rethink the year and come back re-energized,” she’s offered a flexible work schedule from day one, something she says her team takes comfort in when they need a mental health day.

Cosic stresses that although the success of the company is very important, “The success of the culture within it is equally important to me.” For her team, the flexible culture is especially key for those juggling family and children with their careers. 

“There’s a lot expected from a successful professional with a family to raise—it’s really two jobs running simultaneously, and a lot of people don’t realize that. They’re doing it all, so it’s a perfect recipe for burnout.”

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Stop trying to be perfect: How vulnerability and focus drive success https://realestatemagazine.ca/stop-trying-to-be-perfect-how-vulnerability-and-focus-drive-success/ https://realestatemagazine.ca/stop-trying-to-be-perfect-how-vulnerability-and-focus-drive-success/#respond Fri, 15 Nov 2024 05:03:50 +0000 https://realestatemagazine.ca/?p=35749 Can your real estate business thrive without constant stress? Guest columnist Justin Konikow reveals how vulnerability—not perfection—attracts the right clients

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I used to think I needed to be perfect for people to want to work with me. But now, I realize that the most successful people I admire—and the clients I love working with—feel quite the opposite.

There’s no need to get impostor syndrome if you don’t have all the answers.
There’s no need to pretend you’re perfectly successful.
There’s no need to carry the world on your shoulders.

When I started being more vulnerable and real, so did the people I wanted to be in business with.

 

Imagine a business without daily stress

 

Would you prefer a business that doesn’t bring constant stress and anxiety? Imagine not always worrying about the follow-ups you missed, the strained relationships you don’t have time to nurture or the social posts you feel pressured to create just to maintain appearances.

Instead, picture a business that naturally attracts the right clients, partners, and team members. I’m going to show you how to build exactly that in three simple steps—and I’ll even show you how two multibillion-dollar companies can help you do it for free.

 

Step 1: Identify who you are and what you do

 

Start by clarifying the basics:

  1. What do you sell?
  2. Where do you sell it?

Then zoom out:

  • What do you want to sell, and where?
  • What do you need to learn to get there?
  • Who do you need to know?
  • What are the daily actions that will help with both?

 

Step 2: Put actions in your calendar

 

Let’s make this practical. For example:

If you want to become an expert commercial agent:

  1. Action: Look at MLS daily.
  2. Add it as a repeating task Monday through Friday.
  3. Call five agents with new or sold listings, congratulate them, and ask for insights you can’t get on MLS.

 

Step 3: Share what you’re learning

 

Next, share your insights to build credibility. For example:

  1. Action: Post on LinkedIn about something you learned during your calls.
  2. Add this as a repeating task Monday through Friday.

Over time, these small actions will compound, and people will start to see you as an expert in commercial real estate.

 

Contrast this with the typical agent approach

 

Too many agents barely look at MLS, rarely share what they learn, and pretend to have all the answers when leads call. It’s no wonder their conversions lag.

Instead, embrace three habits that will compound over time:

  1. Learn your craft.
  2. Build your business.
  3. Market yourself.

No one else will do it for you.

 

How multibillion-dollar companies can work for you

 

Here’s the kicker: If you focus on delivering real value to your ideal clients, platforms like Facebook, LinkedIn and Google will help bring these clients to you. They’ll even help you discover clients in your own backyard.

Most people think it’s all about gaming the algorithm or paying to play. But the truth is, you’re probably confusing these platforms about who you are and what you do.

 

Challenge yourself for 90 days

 

For the next three months, try this:

  1. Pick one platform.
  2. Choose one client type.
  3. Focus your content on their needs and questions.

Post relevant insights, articles with your opinion, or videos speaking directly to that audience. Engage with those who respond to your content and watch what happens to your business.

Tip: If your feed isn’t aligned with your goals, unfollow or hide content, and train the platform to show you more of what you want.

 

The truth about engagement

 

If you don’t have a large following, focus on building community over just posting content. It’s a myth that constant posting alone will build your following. Instead, engage meaningfully with 10 accounts you respect. The algorithms will notice and help connect you with like-minded people.

If your feed is filled with terrible things it’s likely because you watch too many terrible things. If your feed is filled with arguments, it’s because you spend too much time reading arguments or engaging in them. 

Be intentional in what you consume and engage with.

Remember, the success you seek lies in the actions you might be avoiding. At the end of the day, you have your ambitions and your actions. If you’re not reaching your ambitions, change your actions—or change your ambitions.

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A Realtor’s guide to navigating strata documents in B.C.  https://realestatemagazine.ca/a-realtors-guide-to-navigating-strata-documents-in-b-c/ https://realestatemagazine.ca/a-realtors-guide-to-navigating-strata-documents-in-b-c/#respond Mon, 04 Nov 2024 05:02:27 +0000 https://realestatemagazine.ca/?p=35523 Master the complexities of strata documents to help your buyers avoid costly pitfalls and learn how AI can help

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Realtors play a vital role in guiding buyers through the often overwhelming process of purchasing a unit in a multi-family complex. For many, the volume of required documentation—from disclosure statements and financial reports to meeting minutes—can feel daunting. Knowing what to focus on and interpret is crucial for a smooth experience and can make all the difference in helping clients make informed decisions.

 

Assessing financial health

 

One of the first steps in this process involves familiarizing buyers with regulatory forms like Form B and Form F, which are required in British Columbia when selling a unit in a strata corporation. These forms provide a valuable snapshot of the unit’s financial standing, including outstanding fees and details about parking and storage. However, while Form B and Form F are informative, they don’t tell the whole story. The overall financial health of the community is just as important as the individual unit’s details. Realtors who dig deeper beyond these forms offer their clients a significant advantage.

A key aspect of reviewing a multi-family property’s financials is assessing the strata corporation’s financial health. In British Columbia, strata corporations generally have two main accounts: the operating and contingency reserve accounts. The operating account covers daily expenses, like electricity, landscaping, and routine maintenance, while the contingency reserve fund (CRF) is designated for more extensive, infrequent costs—reroofing, plumbing repairs, or other major building upgrades. A well-funded CRF indicates financial stability and can give buyers peace of mind, knowing the community is financially prepared for unexpected expenses.

 

Red flags to watch for

 

Thoroughly analyzing financial statements can help identify potential red flags. Under-budgeting and overspending are common issues that, if left unaddressed, can lead to budget deficits. These deficits are usually covered by increasing monthly fees or levying special assessments—charges that owners must pay to fund significant repairs or unexpected costs.

“A healthy strata corporation should run neither a large surplus nor a deficit,” explains Katharine Olson, owner of Groundbreaking Strata Consulting & Education. Olson emphasizes that special levies are a normal part of the property lifecycle and should be considered when reviewing sales documents. Buyers should carefully examine any history of levies and anticipate future ones based on the age and condition of the building. This helps prevent unexpected financial surprises arising from missed or overlooked fees.

 

Understanding special levies: What buyers need to anticipate

 

Special levies are additional charges for specific projects not covered by the contingency reserve fund. These levies are typically documented in both financial statements and meeting minutes. Reviewing these documents ensures previous owners have paid past levies and helps determine if future levies might impact potential buyers. This information can significantly influence a buyer’s decision, especially if costly repairs are anticipated within the next few years.

 

Matching community rules to buyer expectations

 

Common issues around people, pets and parking often arise in multi-family living. Carefully reviewing the complex’s bylaws and rules can reveal necessary restrictions, like limits on pet ownership, which may impact buyers directly. Matching the bylaws to a buyer’s lifestyle is essential, ensuring their daily living environment aligns with their needs and expectations.

 

The importance of reviewing meeting minutes

 

Meeting minutes are among the most valuable yet often overlooked resources in a strata document review. Minutes from strata meetings provide an honest look at the day-to-day operations of the complex and can reveal important insights. Although two years’ worth of minutes is usually offered, Olson recommends that clients and Realtors look further back if possible.

“Minutes show us a lot about the workings of the complex,” she explains. “For example, the financials might look solid on paper, but the minutes might show that maintenance is often deferred or certain issues remain unresolved.”

 

AI tools transforming document review

 

Given these documents’ details, some Realtors and buyers opt for AI-driven tools to simplify the review process. Many brokerages now turn to AI-based platforms, like Eli Report, which can speed up document review by highlighting critical information in financials, meeting minutes, and other documents.

“We bring transparency to documents,” says Thomas Beattie, CEO of Eli Report. “We help Realtors and owners pinpoint what to look for in the minutes and provide an overview of the financial health of the building.” By scanning for trends in levies, maintenance records, and violations, these AI tools can help buyers and Realtors identify potential red flags more accurately, allowing for a more efficient and informed review process.

In multi-family real estate transactions, a thorough document review is essential. For buyers, understanding the financial health and dynamics of the community they’re joining is crucial to avoid costly surprises and find a property that suits their lifestyle. Realtors can provide invaluable guidance by diving deeper into financials, examining the bylaws, studying meeting minutes, helping clients make sound decisions and fostering confidence in their investment.

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Helpful tips to determine if a foundation is solid https://realestatemagazine.ca/helpful-tips-to-determine-if-a-foundation-is-solid/ https://realestatemagazine.ca/helpful-tips-to-determine-if-a-foundation-is-solid/#respond Thu, 31 Oct 2024 04:03:42 +0000 https://realestatemagazine.ca/?p=35450 Learn to spot the warning signs of foundation issues that could end up costing your clients thousands of dollars

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Basement flooding is the number one issue that often comes to mind when most people think about foundation issues. That’s because homeowners, homebuyers and Realtors want to ensure that the home’s interior and all possessions aren’t ruined if water seeps indoors, causing a large out-of-pocket expense. 

What people often fail to realize, however, is that the impact of a foundation crack or other issue could pose far worse problems than water entering the basement. The entire integrity of the foundation and its ability to support the home could be at stake. Major foundation repairs can end up costing tens of thousands of dollars.

The purpose of a foundation inspection is to determine whether the base of the home is structurally sound and able to support the rest of the home. Structural issues can lead to sagging roofs, slanted floors and cracks that leave the home vulnerable to pests in addition to water damage.

While nobody wants to hear that a home they’re looking to buy or sell has major foundation issues that will cost thousands to properly repair, it’s something that shouldn’t be left to chance. 

 

Common causes of foundation issues

 

A home’s foundation can be damaged by environmental factors such as earthquakes or extreme temperatures, as well as tree roots, so it’s especially important to monitor the foundation if any of these potential threats exist. Other contributing factors include:

Soil type

Most lots contain fill dirt since they’re often built on uneven ground and need to be properly graded. Low areas must be built up with fill dirt and, if the slope of the lot isn’t sufficient, retaining walls will be required to hold the fill dirt. Areas that contain fill dirt don’t get compacted as well as they should and can compress over time leading to settlement. When foundation soil experiences an extreme change in moisture content, this can result in damage to the foundation in the form of settlement. An excess amount of moisture is capable of saturating the soil of the foundation, which can lead to softening/weakening of the soil. When the soil is no longer capable of supporting the load, the result is often the settlement of the foundation. Different soil types are affected by moisture in different ways, so it’s important to know what type of soil surrounds the home (eg, sand or clay).

Drainage

Moisture can be a serious problem for homes in general, but it’s worse when it comes to the foundation. Poor drainage will allow water to pool around a house and, in turn, this saturated soil around the foundation expands and shifts. Pressure on the foundation walls then increases and results in cracks and leaks that allow water to penetrate the foundation. This can cause electrical hazards, mould growth and structural damage. It’s important to note that older homes tend to be built on flat areas where drainage is an issue.

Age

Foundation strength relies a lot on the size and amount of support beams present in the home. Older foundations tend to have smaller and fewer beams, making them less stable than homes built today. 

 

Foundation inspections

 

When a home inspector is examining a foundation, they’ll be looking for things like foundation cracks, uneven areas, and damaged walls and floors. If there’s a crawlspace under the house, they’ll carefully examine it to determine if it’s wet or musty. If there are wet or rotten areas, there may be a foundation drainage problem that needs to be corrected.

Small cracks in the concrete can be considered normal, but larger and visibly deep cracks are signs of a bigger problem, and the inspector may recommend that a structural engineer conduct a thorough foundation inspection. 

When a home inspector is examining a home’s exterior, they will also be looking for drainage issues around the home. So, if there’s standing water right next to the foundation, there may be issues inside as well. Poor drainage can be caused by such things as improper grading, or gutters that are clogged or drain too close to the home. If there’s standing water outside of the home, be sure to take a closer look inside to ensure that the foundation is dry.

One common problem associated with too much water present around a foundation is known as hydrostatic pressure. When soil around the foundation becomes saturated with water, hydrostatic pressure builds up against the walls. This can cause cracks, bowing and other damage to the foundation walls over time as water is forced against the home’s structure. 

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