The Market gets Tough!

Time to breathe.....December has arrived and Buyers and Sellers start thinking of Christmas,

shopping and family. They have no time for real estate. This is the perfect opportunity for me to step back, review the events of the past season, and plan for a new season.
Haliburton, Minden and The Haliburton Highlands in general, saw brisk markets this year, as did most of Ontario. Our prices did not soar, but it was definitely a Seller's market. Buyers were ready to buy and the number of listings available for them to choose was down.
A fabulous meeting yesterday, sponsored by TD Canada Trust, declared that next year will be close to this year, but a bit calmer due to some of the new lending regulations that came into effect near the end of October.
What does this mean to the Seller? to the Buyer? I wish to take a moment to talk to the Seller. More than ever it is important to pick the right Agent (not the agent that gives you the highest quote for your property).
Here is my checklist (contact me by email or phone if you wish an actual form to use during your interviews):
1) Contact 2 or 3 sales representatives to meet with you;
2) Ask your neighbours if they have heard anything about their reputation;
3) Check each website -  look for quality and resources. Not necessarily number of listings -  some agents with fewer listings can give excellent service because they have more time for you, and they give more value to getting your listing;
4) During your meeting with each representative: a) did they come prepared (done any homework on your property ahead of time?) b) did they bring samples of their work and a presentation package that you can keep? c) do they know the neighbourhood, are they familiar with other sales in your area/on your lake? d) are they relatable? Do you feel comfortable with them, does their approach make you feel like they care about your listing? If they are rattling on about how busy they are - maybe they are too busy for you! e) Ask them about their ongoing education - what courses have they taken lately to keep at the top of their game;
5) Does the agent offer you a price right then and there, or do they get back to you with a price. Beware of off-the-cuff responses to value. Again, it comes down to value, your property is worth more research and preparation than a quick verbal value. A good sales representative will not bow to pressure to give a "general idea" during the meeting.
6) Last but not least -  and this is important.....do NOT simply choose the agent that quotes you the highest value on your property! Especially in a market such as this, where competition between agents for listings is brutal, it is so important to work with the agent that gives you the most comfort level. Most agents, if you disagree on price, will list your property at the price you request - for  a time. They will "try" your price first as long as you are willing to re-evaluate if the results are not as expected. Therefore, choose the right agent - not the right quote.

2015's Luxury Market Review

Last year I did a little summary of the Luxury Market in The Highlands and it seemed well received. Time flies, so it is time to review last year's market.

The Highlands is a technicolour  tourist area! Big, small and everything inbetween. Our 600 lakes provide everything from the quiet, private retreat to big boating. And the area is growing! Minden and Haliburton, the two main towns, have both seen growth this past year but the best part is that even though the area is growing, we will never get too big. This keeps our market stable during tough times, and growing the rest of the time. People who discover the Highlands never want to leave!
 In my previous blog I noted that the Luxury Market, although still young to the area, has been growing in leaps and bounds. Between 2013 and 2014 the market grew 38% in number of sales from 5 sales in the whole tourist area that were over $1,000,000 to 8 sales. In 2015 we had 11 sales over $1,000,000.
The lakes that these sales occurred were all over the map! A small, private lake with pure privacy, mid-size lakes such as Mountain and Kushog, chain lakes such as Twelve Mile, Soyers, and Kashagawagimog, and of course the two larger lakes - Kennisis and Redstone. The smallest waterfront was 95 feet, ranging up to 1,273 feet (excluding the private lake which really skews the numbers). Again, the number of sales in a whole year is small, but looking at the big picture of area and market growth - the luxury market is continuing to climb as more luxury cottages are built. The increase from 8 sales to 11 sales in one year is a 28% increase.
At the beginning of February I am travelling to Mississauga to upgrade my training on latest marketing trends and learning from industry leaders in the Luxury Marketing industry. I am so excited...keeping on top and up to date so that I can offer the best possible service for my clients. I will let everyone know how the training went....stay tuned!

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.

Lake Water Quality

I was rifling through some old files yesterday and came across a couple of newspaper articles from 1993 about clear lakes in Ontario. Definitely not a recent account, but interesting all the same. I have always maintained that Haliburton Highlands has amazing, clean, clear lakes. We are located above the Trent Severn Waterway system so we aren't as subject to invasive species and pollutants, and we have lots of natural rock - one of nature's built-in filter systems
. The article supported my theory.
Written by Peter Janas, B.Sc.F., the article references results of a study that Mr. Janas completed. The article explains what is meant by "clear" and how it correlates to lake depth, amount of algae, etc. I won't go into detail of his study, as I am not a researcher and do not want to get any of the accounts incorrect, but what I did like was the number of Haliburton Highlands lakes that were on his "Clearest Lakes" in Cottage Country.
What lakes were they? Hall's Lake, Big Hawk Lake, Boshkung Lake, Mountain, and Twelve Mile Lakes (all along Highway 35's corridor), Billings Lake and Allen Lake (on the Eastern side of the County), Kennisis and Haliburton Lakes (north of Haliburton Village), and Miskwabi Lake, about 15 minutes East of Haliburton Village.
One point that Peter Janas makes is that "clear" often correlates to depth - and each of these lakes are deep lakes that provide excellent lake trout fishing, but we are so blessed in the Highlands with 600 lakes of every size and depth - something for everyone. What a great place to live and play!!!

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!

Misadventures!

Well, I usually try to put informative and factual things on my blog, but today it is all about me :) Life as a real estate person.......

I recently had two outings that are worth sharing. The first was a "first" for me. Although I love the outdoors and camp, canoe, etc., atv'ing is something that I have only been involved in on a simple, short trip level - when required to get from A to B. Two weeks ago that changed. Marilyn and I had listed a large parcel of land that backs onto Crown Land - and like a good agent should, I asked the Seller to show me the property - specifically the 4 corners, and a large pond at the back of the property. No problem! The Seller was quite obliging. First issue - he left on his atv, and I couldn't figure out how to start mine! He patiently turned around and showed me the tiny black switch under the left throttle. OK - now we are rolling! We did a circle around the parking lot so I could get the feel for it, then off we went! I must admit I was a little nervous but how hard can it be to follow someone on a nice, wide trail? Firstly, it wasn't a nice trail, secondly, it wasn't a wide trail. When we vered into the bush, off the main trail, and over a downed tree - I knew I was going to have something to write about (if I survived). Luckily, I only made one really wrong move - not being used to how much I could crank the heavy steering column, I missed a sharp turn and wedged between two trees. With a slight smirk (and I am sure an internal, uproaring laughter), the Seller got off his atv and rescued me. We went over things, around things, and on side slopes - and I survived! My thought all the way out was literally "Oh my God - I still have to turn around and go back!). But, I did it! The pond at the back corner of the property was absolutely stunning and worth the trip, we saw a beautiful fawn bedded down in some long grass, a buck (I missed it because I was too busy trying to steer), and some excellent bushland. I couldn't lift my arms for two days - but I can now say I am an experienced atv'er! I am glad I stuck it out - it was well worth the experience.

My second story (much shorter) is about how to hold your composure in an embarrasing situation! Yesterday I was showing cottages to two gentlemen. We were at an elevated cottage, built on a rock, with stairs leading down to the water front. The men were at the bottom of the stairs and I was near the top, on my way down, when it happened......my foot slipped. My first thought was that if I let go of the railing my life would be over as we know it (a bit extreme but hey!). I held on tight to the railing and went thump, thump, thump, down the stairs with one leg bent behind me and the other straight ahead. The gentlemen ran to my aide, but what could they do? I came to an abrupt stop - hopped up as quickly as I could and said "I'm fine". There was a searing pain in my knee and ankle - but I smiled through my embarrassment and pretended nothing hurt. What hurt most? My pride! I left some layers of skin on the railing and I am now hobbling around - skipped my morning power walk with a colleague (I'll use any excuse!), and feel pretty dumb. So much for professionalism!

I wouldn't trade my job for the world!

Luxury Properties

Haliburton County has seen a rise in luxury properties in the past few years. People have been moving away from other traditional high-end vacation areas and noticing what they can get for their money in the Highlands. Taxes are considerably lower than neighbouring tourist areas. The trade off is the size of lakes. We do not have a Lake Joseph in our County. What we do have is 600 lakes of varying sizes. Our lakes have a wonderful mix of the beginner cottager, the old traditional family cottage, and the beautiful new cottages with spectacular views and amazing water frontages. There are large, grand boating lakes, chains, and quiet, exclusive lakes. In 2011 there were 31 waterfront listings at a price range from between $800,000 and $2,800,000. Through all that choice, there were only 6 sales in that price range. The reason? Buyers do not yet think of Haliburton County as a choice for their luxury vacation property. Some of the properties in our area are outstanding, but we do not yet have a lot of buyers. Time will fix this, but it does show opportunity for Buyers to look at our County now. As more and more luxury properties are being built, there will eventually be more and more on the market. Because we are a "new" area to this specialty market, values will only grow, so a purchase now could provide good gains in the future. Worth considering!

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?

Winter Blah's

Winter seems to be shorter this year (oops, am I speaking too soon?). As Marilyn and I gear up for The Toronto Cottage Life Show in March, we are pouring over our notes, reconnecting with clients, planning our Spring, and getting the word out to get cottages priced now so they can be advertised at the Show. Time has flown by but we are excited for the new season. Winter is a quiet time for making sales, but a wonderful and busy time to organize, reconnect, strengthen our education and improve on systems. You have to be constantly improving and learning in real estate. I will be sad to see Winter go though, it is great to see the snowmobilers whizzing by and enjoying the outdoors, the visitors walking the streets with their Sir Sam's Ski Hill passes and their cross country ski trail passes hanging from their coats, and to smell the fresh crispness of Winter air - there is nothing like it! I don't mind all the dull, grey-brown trees without their leaves because they provide a wonderful contrast to the sparkling white snow. Today the sky seems more blue than usual, and it is definitely a day to enjoy some of that fresh air! But alas, I have to work. Perhaps after work I will get to go for a leisurely walk - Winter will soon be over! I hope that the people reading this are taking the time to enjoy what nature is offering before it is gone. Life is short - don't let the seasons pass you by! There are 4 of them!

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!!

Woodstove

Every cottager wants a woodstove - the smell of a woodstove is second to none and the ambiance is exactly what you want at the lake! One thing I love about real estate is that it is constantly changing, and I am constantly learning. Nothing is static, and I was taught at a very young age by my grandfather that you must learn something new every day! Regulations around heat sources are one of those things that change - requirements get tighter. What passed 5 or 6 years ago for a woodstove, does not meet todays codes. Single-walled pipes now require double-walled, insulated pipes, etc. Now - I am NOT an expert on these things - I sell real estate, not wood stoves, but a recent complication has provided me with one more thing to caution my buyers about. Until recently, we could honestly say that sometimes insurance companies wanted a woodstove "WETT" certified (Wood Energy Technology Transfer) and some companies would simply send one of their own inspectors to the property and it would be satisfactory. Not any more! WETT certificates are now required by most (not sure if it is all yet) insurance companies.

Many cottages have woodstoves that do not meet today's code. For the buyer this means that a sale cannot close until the woodstove is certified, because financing cannot be in place for closing without insurance. Many insurance companies will give a grace period for the buyer to bring the woodstove to code - but not long. If you are unable to negotiate that the Seller gets the woodstove certified, you as a Buyer need to be prepared for the cost. Depending on the issue, you could face anything from a quick fix to replacing the whole stove.

Best advice - during your home inspection, have the woodstove checked for certification. If it needs changes first, find out the costs before signing off on the home inspection. Are you going to pay for it? Are you going to ask for an amendment for the Seller to pay? Are you going to ask to split the cost 50/50? Depending on the situation, there are different ways to resolve the problem, but be prepared. The best purchase is a "no surprise" purchase!

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!