Real Estates Sales Professionals Must Know Neighbourhood Demographics

What do the words neighbourhood demographics mean to you? Pretty much everything you want to know about who lives in a particular neighbourhood and the composition of their families. How is this useful? A number of different way. For example, neighbourhood demographics can help you tell investors where there is high rental potential in a particular neighbourhood or perhaps highlight an area that a family starting out may not want to live.

So what demographics are really relevant and how can they be leveraged? When looking at neighbourhood demographics there are 4 key areas that you may want to hone in on.

1.    Population – this deals with family composition. Naturally people want to live in neighbourhoods where other families similar to theirs live. You can’t tell by looking at the outside of a home how many people in the neighbourhood are married, single, have children or don’t, age distribution, etc… Perhaps seniors that are downsizing would like to live in a quiet community that has a higher population of older residents. On the marketing side, looking at trends in the population can enable you to adjust your messaging to hone in on niche markets in the area you serve.

2.    Households – this deals with the types of properties in the area and how they are being used. You want to be able to know percentages of owned vs rented properties for both investors and families who may not want to live in neighbourhoods that have a high % of renters. Average sizes and ages of homes in the area are also very relevant demographics that you want to know and be able to discuss with your clients. You can also use this information to identify shifts in neighbourhoods and what it could potentially mean to you later if you cater to a particular market but the face of the community you are working in is changing.

3.    Socio Economic – Back on the theme that people want to live in communities that have other people like them – many buyers would probably like to know things like the education levels in a community. The type of worker – white collar vs blue collar, dominant professions etc… Socio economics also play a huge roll in marketing. The needs of a family can change depending on income levels, likes and education. Targeted marketing works better. Again, knowing the people in the community you are marketing in enables you to come up with marketing initiatives that connect with prospects.

4.    Cultural – Cultural demographics are important not just for your clients but also to you in terms of your marketing efforts. Cultural demographics highlight ethnicities, religions and dominant languages of people who live in a community. From the perspective of your marketing – identifying neighbourhoods that have common cultural demographics can enable you to look at marketing in ethnic magazines or even in other languages.

Knowing the demographics of the neighbourhoods you serve, for obvious reasons, makes you more knowledgeable and able to offer a higher level of service – and it also makes you more agile because you can diversify your marketing and even messaging according to the communities you are marketing in.

If you would like information about a tool that helps you access all of the above neighbourhood demographics information and more please visit www.geowarehouse.ca.

What is the difference between GeoWarehouse and ViMO?

The marriage of GeoWarehouse to ViMO is proving to be one of the most powerful toolsets available to real estate sales professionals. To have ViMO, you must be a GeoWarehouse subscriber. This has led to some confusion, and a number of people are still not fully aware of the ViMO app nor the many benefits it offers. Some believe that ViMO is GeoWarehouse’s mobile app and that it serves the same purpose - it doesn’t!

This blog will help separate fact from fiction.

GeoWarehouse is a tool that real estate sales professionals primarily use to perform due diligence and investigate details about properties and neighbourhoods. Through GeoWarehouse you can even reveal encumbrances and liens on properties; electronically request surveys and condo certificates and much, much more. GeoWarehouse is the Ferrari of real estate research and due diligence!

While ViMO, on the other hand, is a tool that can be used to perform research about a property,  a neighbourhood or demographics, it is primarily a marketing tool. A real estate sales professional can use ViMO to post listings as well as market them; collaborate with other professionals and even use it to electronically sign documents.

ViMO is a tool that comes in very handy when working remotely and out of the office. Imagine increased ease transacting while on the road with clients or working open houses. ViMO makes the buying and selling process way more efficient and with far less paper. That said, full service client representation involves more than just the buying and selling of properties. This is where diligent real estate sales professionals turn to GeoWarehouse: to validate legal ownership of a property, check registered mortgages to ensure the existence of sufficient equity, or to review a property's history to ensure that everything is copasetic.

As a real estate sales professional your sales related duties are important. Yet of even greater significance, is your role as the first line of defense against mortgage fraud and as the first professional - in a string of professionals - to deal with the administration of legal documents that facilitate a property transfer.

While you can use both GeoWarehouse and ViMO to perform some of the same basic functions, these two tools are optimized when you combine them.  Not only will you achieve more while on-the-go, you can also help make the entire buying and selling process more efficient.

If you are a GeoWarehouse customer interested in more information about ViMO you can view the full demo here https://www.youtube.com/watch?v=mxkxwZbUmNs.

Not a GeoWarehouse customer? Find out why you should be and reach out to our sales team today! Please call 1-866-237-5937.

Should Real Estate Sales Professionals be Requesting Credit Reports?

You work hard for your clients and unfortunately you don’t get paid until your deal closes – often from the seller’s equity. Also, if you are representing a buyer, your deal may also depend on your client’s ability to get a mortgage. 

These are two reasons why some real estate sales professionals are left feeling vulnerable and considering different methods to vet new clients. Nowadays, some even go as far as to ask the client to provide a copy of their credit report.

In an extremely competitive market, questions like this can leave a client feeling bad about their experience with you. They may surmise that you have decided based on their appearance or interactions with you. You also know, that in such a competitive market, there is likely another real estate sales professional around the corner waiting to snatch up your client.

So what is the balance and how far should a real estate sales professional go to validate that their client has the ability to meet financial requirements?

You might want to start by assessing if your client is an existing homeowner. If they’re not, a credit report may be your only way to vet their ability to be approved for a mortgage (unless they have a large down payment). Or ask for a mortgage approval letter from their bank.

If they are a homeowner, leverage tools you likely already have access to, such as GeoWarehouse.

-        You can validate the number of mortgages registered on title, the amounts they were registered for, the presence or liens, etc…

-        Then it is simple math. Take the value of the home and subtract the estimated encumbrances and you will have an idea of whether there is sufficient equity to cover the closing costs which include your fees. Also, the presence of liens or a number of mortgages could be a sign that you may want to look at a credit report to assess if it is likely that your client can even qualify for a mortgage on their next home.

As you know, especially in areas where the real estate market has been booming, a number of homeowners have an abundance of equity. Massive equity = the ability to make massive down payments which makes one’s credit standing much less relevant.

Validating this information will enable you to identify deals where there is an abundance of equity – meaning that there is little point in risking offending your client by requesting a credit report, which should be your last resource.

For more information about how you can validate the information provided to you by your client please visit www.geowarehouse.ca or call 1-866-237-5937.

 

Flashback: How to Access the Year Built

We released this video back in January 2013 and got a lot of positive feedback - many real estate sales professionals found it really useful. For this reason we decided to flash back and share our training video about how you can access Year Built information and learn the year that a home was built. This video will show you how to access information through: 

·        GeoWarehouse Residential Report Level 1 MPAC Assessment Report

·        GeoWarehouse Residential Report Level 2 MPAC Assessment Report

·        GeoWarehouse AVM Enhanced Residential Report

Real Estate Sales Professionals Who Care – An Excellent Initiative Sponsored by OREA

From time to time we like to highlight the good work of organizations who are giving back to the community. This month, we take a look at The REALTORS Care Foundation. For the past 15 years they have been raising money and granting funds to more than 20 shelter-based charitable organizations in Ontario. Watch this video so you can find out how you can get involved:

Attn: Toronto Real Estate Sales Professionals – How You Can Subscribe for GeoWarehouse Directly!

As noted by Drew Doherty, Director, Real Estate at Teranet Inc. in the Ontario Real Estate Professionals Group on LinkedIn in December, “34 (out of 35) Ontario Real Estate Boards have agreed to extend their contract with GeoWarehouse for three more years.”  

 

The one board that did not renew was Toronto. Toronto real estate sales professionals ceased having access to GeoWarehouse this past month. This has left some real estate sales professionals wondering how they can get back into GeoWarehouse.

The good news is that you can register for GeoWarehouse directly on the GeoWarehouse website.

Once the GeoWarehouse team receives your website submission you will be contacted to complete your application and discuss pricing.

Both individuals and real estate brokerages of all sizes may apply for access to GeoWarehouse, though larger real estate groups qualify for reduced cost to access the application.

To register:

·        Visit www.geowarehouse.ca

·        Click ‘Buy Now’ which will bring up a contact form

·        Complete the contact form

·        A salesperson will follow-up to discuss pricing and complete your application

Validating Property Ownership Remains a Key Consideration for Ontario Real Estate Sales Professionals

It is more important than ever for real estate sales professionals to perform due diligence when taking on a new client for a listing or to buy a property. Due diligence not only prevents fraud but also saves real estate sales professionals time and hassle.  

According to Paul Mangion, real estate sales professional at Axxess Realty, validating property ownership remains a key consideration in Ontario. According to Paul, “Ensuring that no other people are on title that you are unaware of is one of the main reasons we like to validate property ownership. If this comes up on closing, not only is my time wasted but also that of all parties involved.” Paul went on to highlight that independently validating property ownership information also prevents fraud. 

When we asked Paul what steps he takes when taking on a new listing, here are some of the things he does and the tools he said he relies on in a typical residential listing:

·        Assess/determine the value of the property – Review sales history on both the property and also comparable properties nearby. Tools used: MLS and GeoWarehouse 

·        Review historical listing data on the property – Tools: MLS and GeoWarehouse

·        Confirm property ownership information – Tool: GeoWarehouse

·        Validate last assessment value – Tools: MPAC or GeoWarehouse 

·        Google the address – See if anything is in the news about the property or past owner (death, fire, disaster)

Many real estate sales professionals rely on different tools to validate information about a property, owner or neighbourhood – GeoWarehouse is a central place where all of the above information can be obtained in a single location.  

Some real estate sales professionals are even taking the due diligence process one step further; by purchasing a Parcel Register through the GeoWarehouse Store. This is the provincial ownership record and contains a wealth of information about the subject property; such as: ownership and financial standing, property transfer history, any mortgages registered on title, property liens and more. 

When you take on a listing there is nothing worse than working on the premise of being paid once a deal is made only to find out later that someone else was on title or that there is not enough equity to cover your commission! Taking advantage of the different tools available can make you more agile and competitive – and save you time and money. There are also a number of different apps emerging that are making it easier for real estate sales professionals to do more on the go. 

For more information about validating property ownership information please visit www.geowarehouse.ca.

Mobile Apps for Real Estate Sales Professionals and How They Complement Each Other

Fortunately, for real estate sales professionals the companies who serve you are listening. An increasing number of companies that provide services to real estate sales professionals in Ontario are pursuing mobile solutions to provide you with more capabilities when you are on the go and the Real Estate Information Solutions team at Teranet is no exception.

In the spirit of enabling real estate sales professionals to be able to offer better service to their clients, thus making the value of using a real estate sales professional glaringly clear, we have elected to focus on technology that is geared to the real estate sales professional as opposed to the consumer.

In 2014, the Real Estate Information Solutions team at Teranet will be releasing a new mobile app, ViMO (Virtual Mobile Office), which will provide real estate sales professionals in Ontario with the tools to do much more. Not only will you be able to access vital information about properties and sales, you will also be able to retrieve key demographic information about the people, schools, and other vital information about an area that makes all the difference when someone is trying to determine if a particular area is right for them.

The government’s initiative to allow for electronic signing of real estate documents will mean that, by using ViMO, you will be able to go paperless and sign and finalize your deals with your clients right on the spot using your tablet.  You will be able to connect and collaborate with other real estate sales professionals and more. This app has been developed solely with the real estate sales professional in mind, not the consumer. The point is to give you the ability to shine when dealing with your customers as opposed to your customers thinking that they can manage on their own.

What is very promising though is that more real estate apps mean more business for everyone as the easier it is for consumers to buy real estate and for real estate sales professionals to service them, the more opportunities are created for all. Mobile apps are the way of the future, so having one that has been developed with your needs in mind is key.

For more information about ViMO, or any of the services offered by the Real Estate Information Solutions team at Teranet, please contact us at 1-866-237-5937 or visit us online at www.geowarehouse.ca

Toronto Condo Real Estate – A Sticky Situation?

There has been a great deal of speculation in the news over the last few months regarding condo flipping and the condo market in Toronto.  With last year’s stricter CMHC lending guidelines, this summer’s mortgage interest rate increase, as well as the CRA audit targeting aimed at those investing through condo flipping, this hot-button topic has people talking – and for good reason.  

According to Canadian Business, new condo sales are dropping to record lows, at a rate of over 30% from January to August of this year. Add to this the fact that there are tens of thousands of condo properties currently being built in the Toronto area, and although a vast majority of them are already spoken for, most owners have yet to make the substantial final payment due upon completion (a daunting concept considering the stricter lending behaviours of banks and the rising mortgage interest rates).This has made some market analysts less than enthusiastic about the future.  

Some are quick to voice support for the popular theory that this surge is not an issue because the Baby Boom generation will soon be downsizing, and therefore buying these condos. However, this speculation ignores the fact that the construction of new households may outweigh the growth of the population. This could potentially lead to a collapse in home sales and a subsequent loss of jobs.  

 

What about condo flipping specifically? What impact is this having, or expected to have, on the real estate market? A recent Huffington Post article had this to say: "If the upcoming supply of units is not absorbed by demand as they are completed over the next 12 to 30 months, the supply-demand discrepancy would become more apparent, increasing the risk of an abrupt correction in prices and residential construction activity." 

There is a chance for a decrease in sales in the future; this news is coupled with the recent crackdown on condo flippers (or suspected flippers) by the Canada Revenue Agency. According to The Toronto Star, CRA auditors are focusing primarily on individuals who have purchased condos before they were built, with the intention of selling the condos once building is completed. The article continues stating that any profits made through such a transaction must be reported as income, and if not a principal residence, HST and GST rebates must be recalled. And this is becoming problematic not only for those flippers unaware of tax legislation, but also those forced to sell before or at completion due to extenuating circumstances.  

So, real estate sales professionals, what course of action should be taken to deal with this deluge of attention that buying and selling of condos is receiving? Should you be counselling clients to buy or stay away? Are newly built or resale condos the way to go? Do you think a pre-construction condo is still a good investment? Should you even be voicing these opinions at all? With all the buzz in the news it is prudent to be prepared to answer questions posed by clients regarding condo sales, condo flipping, and the tax legislation regarding these transactions. Clients are far more likely than in the past to have some knowledge, so being unable to answer any inquiries may not bode well for business. 

For more about the current condo market and how to protect clients please contact GeoWarehouse by calling 1-866-237-5937.

Spot the Common Denominator

We thought it would be fun to share a fun little game - kind of “four pics, one word.” Can you spot the common denominator? Here is a hint: the answer is two words – the first word is 10 characters and the second word is 9 characters. Post your answers and in 4 weeks we will post the correct answer. Good luck!

Mobile Technology for Real Estate to Improve Face-to-Face Interaction with Clients

The past decade has revolutionized the value of social media and mobile technology in Canada. Information and the social environment is no longer based on face-to-face interactions, mail, or over the phone. To be fully integrated with society, it has become necessary to access and utilize social media, smart phones, and technology in general.  

While this phenomenon is not as common with the older generations, the younger generations have established it as the norm. Generation Y, those born between 1981 and 2000, is part of the younger generations that have become accustomed to this standard in society. It is important to consider this fact because they encompass one-third of Canada’s population and it is also noted to be the fastest growing demographic in the workplace.  It is also projected that in 15 years, Generation Y will compose three-quarters of the workforce. All things considered, the use of technology and social media is progressively becoming more crucial to the workplace environment and society.  

Some real estate sales professionals have expressed concern that technology, especially mobile technology, is decreasing human interaction and face-to-face relationships with customers. This natural progression does alter the methods of communication, but it is not necessarily harmful. The utilization of technology continues to progress in both the older and younger generations. It is because of this that technology actually creates more opportunities for real estate sales professionals to compete and engage, especially with this rapidly growing demographic. Technology also allows for an ease in accessibility which will contribute towards your efficiency and productivity. Trips to the office will no longer be necessary, and both you and your client will be more readily available. 

What is important is to learn how to leverage technology and behaviour to embrace clients who use technology religiously. It is essential to develop parallels between face-to-face interaction and interaction using technology to find ways to achieve the same result with clients using both established mediums. Beat the competition by using technology to your advantage. Mobile technology will allow you to work efficiently and update yourself with social media.  Keep yourself updated, and search for available applications that will allow you to integrate more mobile capability into your workflow. 

Electronic Management of Real Estate Transactions in the Near Future

You know better than anyone that when the time comes to close a deal, paper begins to fly! Offers begin going back and forth and this can become time consuming and complicated. As with many other industries, the real estate industry continues to move towards going paperless. According to 680 News, in March of 2013, Canada’s PC Government made it clear that they believe it is time that Ontario approve the use of electronic signatures for real estate transactions. In fact, Ontario is one of the last provinces still manually signing and closing real estate deals.

On June 12, 2013, OREA applauded the passage of the 2013 provincial budget which included provisions to make electronic real estate agreements a reality in Ontario. The budget included an amendment to the Electronic Commerce Act (ECA) which will extend the legal protection of the ECA to include electronic real estate agreements. You can view the Act here http://www.e-laws.gov.on.ca/html/statutes/english/elaws_statutes_00e17_e.htm  

In September of this year, OREA posted an update on the amendment to the ECA forecasting that we will likely see electronic signature capability in 2014.

Some real estate sales professionals have commented that they feel that the ability to sign electronic forms will interfere with face-to-face relationships and engagement with clients, while others have surmised that it could lead to an increase in fraud.

We actually believe it will be quite the opposite. This amendment will certainly lead to new technology and successes for real estate sales professionals across the province. New capabilities will mean that you can do more on the go, service your clients better and close more deals. As Henry Ford famously said, “If everyone is moving forward together, then success takes care of itself!”

With the introduction of mobile applications, such as ViMO (Virtual Mobile Office), real estate sales professionals will be able to use their tablet in a client meeting instead of preparing and carrying the necessary documents ahead of time. They will also be able to have the client sign their documents electronically. Instead of going back and forth between the client’s home and their office, they can send the documents to the real estate sales professional instantly.

This amendment is a progressive step in the right direction and will lead to more success and prosperity for all.

Innovative Ways that a Property Ownership Search Can Help You be More Efficient!

When representing a client, whether it is a buyer or a seller, the more information you have about a property and its owners, the better. Most real estate sales professionals will turn to a search in GeoWarehouse to get the information they need quickly. A property ownership search can be performed in GeoWarehouse by leveraging different reports and searches to obtain the information that you need.

When requesting a Property Details Report in GeoWarehouse, you will get access to not only the sales on the subject property, but also the property’s PIN (Property Identification Number). Say you want to know how much the subject property is encumbered for, what current owners paid for the home, when they purchased it, etc.  Armed with the property address and PIN, you can request a Parcel Register in the GeoWarehouse Store and instantly identify who is on title to the property, the type of ownership, when they purchased the property, what they paid for it and any mortgages or liens registered.

This can make you more efficient in so many ways:

·        You can validate that the client engaging you actually is the homeowner. What does this mean to you? It means that, if there are other people on title, they are consenting to the sale of the property and that you in fact contract all of the relevant parties.

·        You can learn of encumbrances and liens on the subject property and protect your interests and other closing costs. What does this mean to you? Incredible time savings. You can quickly identify if your deal is in fact a practical deal and address financial shortfalls before investing your valuable time and energy into representing a client.

·        You can identify any prevalent issues that could impact the deal from closing. What does this mean to you? There is nothing worse than being at the 11^th hour on a closing and getting a call from the real estate lawyer advising you that there are issues on title that will prevent your deal from closing. Seeing what is on the Parcel Register will greatly mitigate this and enable you to assist your client to resolve any issues well before your closing date.

Validating property ownership can play a key role in any real estate transaction, and having this information will lead to increased efficiency and a smoother closing.

We want to hear from you. Have you ever had a deal go south on closing because of title related issues?

If you would like more information about GeoWarehouse, please visit www.geowarehouse.ca or call 1-866-237-5937.

Announcement - Facebook Kobo Contest Winner Manuel Bustamante

We are very excited to announce the winner of our Facebook contest. Manuel Bustamante, sales representative from CENTURY 21 Miller Real Estate Limited in Oakville, Ontario, was the proud recipient of a Kobo E-Reader. We thank all of the real estate sales professionals who participated in the contest. 

Stay tuned for our next contest and an opportunity to win something great!