2014 - Steady and Healthy

Another real estate year is almost complete. The market is settling down with distractions such as Hunting Season arriving, and people needing to close up, clean up and secure homes and cottages for winter. For me personally, this was a banner year in real estate in the Highlands as I continue to grow my business, but let's talk about what YOU are interested in! How was the market in general, in the Highlands?
Firstly, PLEASE be careful about what media says about the real estate market. Fear-mongering is big business, people actually benefit from providing scary reports. It is important to speak to someone in the vicinity of where you are selling or planning to purchase. Every region, community, lake, price range, has it's own market. What is happening in Toronto or Vancouver has no bearing on what is happening in a small town, or Central or Northern Ontario.
Even each Cottage Country has a different market (such as The Kawarthas, The Highlands, or Muskoka). Your price range also has a huge impact on market trends. Where is the bulk of buyers for a cottage - $250,000 to $300,000? $400,000 to $500,000?
So down to business - The Highlands! 2011 and 2012 were not the best. Media was reporting tough times, and Buyers came looking for deals. Sellers were not willing to drop their prices, therefore many deals were written, but not that many came together. Last year our market settled down. Prices were not gaining, they were staying steady. This is good news for both the Buyer and the Seller - a balanced market. This year it looks like there will be some small gains in values, but nothing to make Buyers nervous. This again results in lots of sales.
In May 2014 our board saw 1,423 listings on the market, the highest number in the past 3 years, with the most sales happening in August - 511. This is a slight increase from 2013 with 505 sales in August, and a bigger increase from August 2012 of 426. Since May of 2014, each month's statistics show increased sales and listings from the previous year. It is a healthy market!
If a property is priced correctly - it will sell. That's the bottom line!
The Highlands offers a variety of recreational options, from the first-time cottager looking for something on a back road, or close to lake, under $100,000, to direct waterfront at every price range. Our luxury market continues to grow each year, with cottages on the market at $800,000 to $2-3 million.
Thinking of moving to the Highlands? The Residential market, too, is on the rise. Minden and Haliburton are both seeing growth. Minden just received a Dairy Queen, last year received a Canadian Tire, and there are rumours of more. Haliburton just got a Tim Horton's (yes - I said it -- and you thought everyone already had one!). The social groups, activities and culture of the area is very strong. Buyers are looking for that combination of wanting to simplify their life, reduce their expenses, and still have convenience. Of course, growth in residential properties means growth in business....everyone wins!
Can't wait to see what 2015 brings!

Myths Busted

There is a disturbing trend in real estate these days. The ability of people to google, check mls, zoom on Google Earth has empowered Buyers ....mostly in a good way! Buyers are educated, they know what they can get for their money, they can check the neighbourhood and search out statistics. All good.
What it has caused though is a sense of "I know the market", "I watch mls", "I will just work with the listing agent". Here are some points to keep in mind:
1. Knowing what is for sale does not tell you what a property ultimate sold for - there is often a big gap! Therefore a Buyer can easily overpay;
2. What you see on the internet is often deceiving. Good photos can make a property look incredible, and not show the drawbacks. Equally so, and more importantly.....bad photos can have you overlook the perfect property, extending your search time;
3. MLS does not provide a good feel for different areas. A property in the Haliburton Highlands compared to a property in Muskoka or The Kawarthas are not all equal. Your Realtor can explain why there are differences and what your money truly should get you in each individual market;
4. Calling the Listing Agent each time you see a property causes extra work for you, the prospective Buyer. The Listing Agent, until a Buyer Representation Agreement is signed, is working for the Seller. They do not know your likes, dislikes, price point, area of interest. Therefore you continue to call agents, only to find out that the property is not for you, and you start again.
4. Working with the Listing Agent does not give you a better purchase price. At the end of the day, the Brokerage gets paid, and the Seller wants the price that the Seller wants. The listing agent will sell the property - if not to you, then to someone else, all they have to do is wait. Remember, the listing agent's job is to get the Seller the best possible price for their property, not create a fire sale so they can get paid quicker.
One of the scenarios that we are seeing today is a couple drive to the area on Saturday to look at cottages. They have 4 appointments with 4 different listing agents (tough to coordinate to start with!). The couple sees each individual property - none are what they are looking for, they have lost a full day with no results, and each of those 4 agents knows nothing about the Buyers or their goals. The day is a loss, and the next weekend the couple start the dance all over again!
Here is what should happen: the couple talks to 3 or 4 different agents to get a feel for each of the agents. Are they a good fit? Are they truly interested in my goals? In my wishlist? Do I get a sense that this agent will spend time on my behalf? Do they seem to have a knowledge of the listings currently on the market and the area/town/lakes? Once the "right fit" is found, the legwork is in the hands of the Buyers' agent. That agent will look at what is on the market, with their knowledge of each lake (big, small, weedy, good boating, good swimming, quiet), they will weed out the listings on lakes that don't fit the Buyer's wishlist. Then they will look at factors such as seasonal, access, water frontage, # of bedrooms, move-in ready or needing tlc.....THEN, and only then, will they forward possible properties to the Buyers. The Buyers only look at properties that are true candidates. A date is set, the Buyers come up, and the agent takes them to each of the potential properties. The Buyer may not like what they see...that's o.k. It's a process. But that initial meeting is also crucial, because the agent is going to learn even more about you by your reactions to the properties that he/she has shown you that day.
Buying a property should be fun and exciting....not a huge amount of work. Let someone be on your side, work for you, and care for your happy ending.

Ready to Buy that Cottage?

Stunning Kennisis Lake

So you are looking for a cottage. You may have vacationed in the Highlands before, have friends here, perhaps rented a cottage in the area....and now you want your own! Spring is arriving and showings have already begun - people are snowshoeing into the seasonal cottages - they can't wait to get their cottage for the summer!
Are you ready? Have you got your finances in order? Do you have a deposit? Here are some things your agent will need to know to have successful outings:
1. What are you going to do at your cottage: boat, waterski, sea doo, swim, canoe/kayak? Your activities help define what type of lake you need to purchase on, and what type of shoreline you'd require;
2. Are you social people? Do you like to know your neighbours, visit at the dock, or do you prefer a "getaway" with privacy and quiet? Again - this influences the lake, the area, and the property type.
3. Will you use the cottage in winter? If your budget does not allow for a 4-season cottage, are you willing to look at a 3-season cottage that could be easily converted?
4. Are you entertainers? Will you have children and their friends; brothers and sisters and their families; friends of your own? If so, you will need parking space and possibly a spot for a bunkie. Some cottages are very restrictive with space for one, maybe two vehicles and little turnaround space. Will this work for you?
5. Travel Time - our County is huge and we have lakes in every corner. Some people only want a 2 1/2 hr. drive from their home which limits the lakes that you can view cottages on, but note that some of our best lakes are worth driving to!

My last tip today - BE HONEST with your Realtor. We are here to help, and what you tell us about your personal life, habits, finances....is all held in the strictest confidence. But we need that information to provide you with the best possible service, and the perfect outcome for you and your family.

Fireplaces and Woodstoves...again

I know .... a broken record, but a GOOD broken record. Last year I talked about woodstoves and fireplaces when purchasing a property - either home or cottage. It seems each year, lessons are learned over again, and it is all worth repeating. Two property sales recently with stories.....
Story #1. A house with a large, floor to ceiling fireplace.When listing the home I recommended the homeowner get a WETT certificate to ensure their fireplace was safe. A Buyer cannot get insurance without one now (yes -- rules have changed again). The owner was positive their fireplace was maintained in perfect condition and they never had a problem. It "heats the house beautifully". That being said, a working fireplace or woodstove does not mean that it passes certification by today's standards. The house sold (Buyer requested a WETT certificate in the offer which the Owner agreed to). Turns out the fireplace required replacement - all stone removed, etc. for a cost of $6,000. OUCH! Story #2. A house was undergoing a home inspection by the potential buyers when the inspector said there was some issues with the chimney and it would not pass certification. The owner had also informed their realtor that the woodstove in the basement was brand new - never used. There was another Buyer waiting in the wings hoping the home did not pass inspection, or that the Buyers would try to renegotiate so they could present their offer. Because of the other offer, and fear of losing the home they wanted, the Buyers signed off on the home inspection, prepared to pay for the repair in the chimney and get the fireplace and woodstove certified. As soon as they took possession, they called the professionals who quickly told them that the insert in the fireplace was completely finished, along with the chimney, and the woodstove in the basement had been used, was installed wrong, went through drywall, and was a serious fire hazard. A quote of $8,000 was given to bring the two up to certification standards.

Am I scaring you? That is not the intent, but please beware. Do your homework -ask your home inspector questions about the woodstove or fireplace. More and more agents are recommending that Sellers get certifications before they list to prevent problems at point of sale. But not all Sellers are willing to do this, then it becomes a negotiation issue. Everyone wants a fireplace - especially at a cottage. Along with the obvious heat they provide, they create atmosphere, coziness, and enhance memories. Done safely there is nothing better!

Social Media in Real Estate

It's a cunundrum (spelling anyone??).....we tweet, facebook, blog, email, text, advertise in newspapers, magazines, on multiple websites. To be a real estate agent today you have to know all the latest trends! I attended an interesting seminar with a social media (he says there is no such thing as social media) expert named Gary Vanderchuk. The seminar was amazing, but his comments really make you think. Do true buyers and sellers come from tweets and facebook pages? I thought not, but Gary says yes. I have attended many seminars as I believe it is key to keep my education and skills at the highest level possible in order to do an outstanding job. Every one of these seminars said you had to be on Twitter and Facebook, but I never truly "got it" until I heard Gary speak. I am of the "middle age" group of people that are embracing this change with gusto - I love my phone, I love my toys - but I wasn't "raised" with them. I now see that the future buyers and sellers of real estate are being raised on them. Twitter is the new newspaper. I hear the comment regularly that "no one wants to know what I ate for breakfast", and it is true there are those out there that send that type of info into the world. But after using Twitter the last couple of months, what I really see is that it is a newsfeed. You can connect with every business, every company, every group, every individual that has a connection to you, your family or your personal interests. You know when there are changes in companies, when new products are launched, when a new amazing YouTube video is sent out, and now....when new real estate listings are available. It does become an addiction - constantly wondering what's new? Something else I have realized - although millions of people have twitter accounts, they don't actually tweet. They only use them to follow people/companies and news. How soon before we won't know what a newspaper is?

Reflection

As the season draws to an end and we are about to begin a new year - fresh and eager to take on the world, I can't help but think of the changes that have occurred in the way we do business. For a good agent - nothing stays the same. We are constantly changing and adapting to new technology, new sources of information, and new expectations by clients - both Buyers and Sellers. Our clients are savvy and information-hungry, take more time to make a decision, and are more cautious - all good things.

As a RE/MAX agent, I feel very lucky to have a vast amount of technology and information at my fingertips. I recently attended a conference in Mississauga and was once again reminded of everything that RE/MAX has to offer us. Texting and QR codes for our signs, websites and advertising, social network linkages, media releases, thorough statistics, extensive websites that are growing by the day, massive marketing campaigns - all this provides "brand recognition" for our Sellers. Brand recognition equates to more exposure for listings, more ways for potential Buyers to find our Sellers' listings. In this technological world - exposure is everything!

The challenge becomes, for the individual agent, in keeping up. Quick responses to enquiries, activating all the possible linkages and taking full advantage of what is out there for our use. Real estate has always been a 7-day a week career, and it is even more so now.

These new technologies and exposure systems are working. In our local market, our RE/MAX North Country offices held 47.5% of the marketshare in Haliburton County at the end of October, 2011, with all other companies combined holding the difference. Every year agents switch companies seeking the best deal for their money, trying to figure out how best to up their game. Reflection is an important part of starting any new year. It helps you to set goals, ensure you are where you want to be. As I look deep into my chosen career - where it has been, where it is now, and where it is going, I am very thankful for where I am, and choose not to be anywhere else!

Wishing everyone out there a wonderful Holiday Season and an absolutely fantastic 2012!!

Choosing a Waterfront Property

One of the most popular questions when on duty is: where do I start? what do I look for? This a huge question, with many answers! My recommendation is to sit down and decide what your vision of cottage life includes. Quiet evenings and bonfires? Canoeing and kayaking? Fishing? Swimming? Boating and water skiing? Make a list. There are many types of cottagers, many types of properties, and many types of lakes. Each lake has it's own "personality". With over 600 lakes in our County, they range from small, motor-restricted to large chains great for boating. Each lake has a different price point. What $350,000 buys you on one lake, does not get you far on another.

Know your price range - know your "must haves" - know your planned lifestyle. If you share each of these with your Realtor it makes the cottage hunt more efficient. Do you need to get into the cottage in winter? Or will you be a summer cottager? We have a lot of seasonal roads in the County but many are also short and could be ploughed by yourself or someone you hire if that is the right cottage for you - so do not discount them. Cottages on seasonal roads also give you a price break if you are willing to consider them.

Also ensure you can talk to your Realtor and communicate. If you tell your Realtor that privacy is very important to you - know that privacy to one person is not the same as what it means to someone else. I recently had a client that insisted that the most important thing they wanted was complete privacy. They needed to get away from everyone and everything. They asked to see a particular cottage that, in my mind, was not private at all with cottages flanking both sides and very little for trees or shrubs between them. They absolutely loved it and thought it was incredibly private!

If you are not sure exactly what you are looking for - my suggestion is to book a day with your Realtor - have him/her showing you 3-4 cottages on different lakes. By the end of the day your Realtor will know you better, and you will know what you like and what you definitely don't like!