No surprise to most of us, the Competition Bureau (CB) is investigating the Canadian Real Estate Association (CREA)’s MLS commission policy requiring a commission be paid to buyers’ agents, and the Cooperation Policy requiring all listings to be on the MLS within three days.

I expected both, and I’ll be surprised if the Cooperation Policy comes out unscathed as I find it unethical no matter how many times I re-evaluate it, but I take real issue with the investigation into the mandatory buyers’ agent commission policy.

Now, this is clearly a complex issue involving both law and ethics and, as we realtors get used to saying, I am not a lawyer, but I would like to comment on both the legality and the ethics of the situation.

Our MLS at a high level

Before I comment, I need to back up a few steps and discuss our MLS from a high-level standpoint. MLS in North America is, to use the parlance of our times (Big Lebowski fans will recognize that line), a unicorn. In many, if not most, countries, listing agents do not cooperate with buyers’ agents, and even in North America we see that commonly with commercial transactions.

In other countries, buyers are forced to peruse multiple websites, drive around, talk to multiple agents — none of whom work in their best interests — and then ultimately work with one of these agents whose primary job is to get the most money from them as possible. Whether or not it’s the best home for them is secondary. These agents are’t bad people; this is just their duty, same as listing agents here. 

Of benefit to buyers, sellers and both agents

Our MLS strikes me as one of the best creations the world has ever seen, and I’m not exaggerating. For most of us, our home is an extension of who we are and one of the most important purchases of our lives. American psychologist Abraham Maslow recognized this almost 100 years ago when he placed shelter at the very base of his hierarchy of human needs. A comfortable, happy home is probably one of the most important factors of a fulfilling life.

The MLS gives homebuyers easy access to the widest selection of potential homes while simultaneously allowing them to have a trusted representative on their side in what may very well be the most expensive purchase of their lives. I dare say only a few things in this world are more important than that to the average person, though we rarely take the time to think that through.

At the centre of this transaction is the trusted representative, the buyers’ agent, the realtor. In my career, I’ve had the opportunity to work across the table from some very competent realtors. Watching these professionals at work has been a great pleasure and learning experience over the years. Many homebuyers have been able to purchase the best home available to them at the time with the least amount of effort and under the best terms and conditions available, thanks to the guidance of these professionals. MLS is truly a win-win-win-win — homebuyers, sellers and both agents benefit.

A conflict of legality and ethics, of cooperation and competition

Considering all these factors, the question arises: how should we reward these practitioners fairly and adequately? This is where the divergence between what is legal and what is ethical comes into conflict.

Is it ethical to have these people work for us with no guarantee of any pay, even up to the time of possession? No, but it is legal. Is it ethical to allow buyers to use this system without having to make any commitment to paying anyone anything at any time? No, but it is legal.

Before expanding on my answers, I need to cover a couple more things. As I mentioned, the MLS is a unicorn in that realtors cooperate and compete at the same time, and our legal system seems to have a difficult time wrapping its collective head around such a system, especially since the legal system is primarily an adversarial system and the notion of cooperation is foreign (I do find it particularly ironic and satisfying that both parties in a legal dispute start out adversarial but once nobody wins and they run out of money for legal fees, they quickly become cooperative.)

The real question: Is it unreasonable to ask that consumers using the system must pay for it?

The critical distinction is that whether we’re cooperating or competing, it is always in the client’s best interest. We cooperate to get the seller’s home sold and to get the buyer a home purchased; we compete to attract and keep business, and that means competing on fees. I can’t recall ever, not once, in 30-plus years having another realtor try to conspire with me for a mutually higher fee, but I sure have lost a lot of business to lower fees or better service.

Now, given the benefits I’ve just listed, here’s the real question, in my opinion: is it unreasonable to ask that consumers using this system must pay something? That something could be a dollar but it must be something and both parties are free to negotiate that fee. Is that unreasonable? Is that anti-competitive?

Negative price competition and steering: Not remotely possible

And this brings me to the current situation. The CB is investigating whether the commission policy negatively influences price competition and whether it enables steering. I cannot see how either of these is remotely possible given that the policy simply states that a fee must be offered — this could be any fee, even 10 cents.

Our Buyer Agency agreements in Alberta, and I suspect across the country, address specifically what happens when a listing offers more or less commission than we have agreed to with our buyer. If a buyer has chosen not to sign an agency agreement with us for their own interests, then we owe them the same commitment they owe us: little or none. This is both legal and ethical. We’ve offered them a mutually satisfactory arrangement and they refused. Additionally, it takes away a seller’s right to make their property more attractive to the marketplace, something I argue the CB and no human entity has the moral or legal authority to do.

A comical yet sobering proposition: Value of services rendered diminishes greatly once services are rendered

I remember being at a conference some years ago where an economist was speaking and he mentioned the system in which realtors only get paid after a transaction is completed. Economists had come up with a casual, humorous principle by which they described this system.

Decorum does not permit me to provide all the details, so let me just say that they compared our system of payment to the system of payment for one of the world’s oldest professions, as follows: the value of services rendered diminishes greatly after services have been rendered. It was comical for a moment but has been rather sobering since then, and it applies directly to today’s situation.

When we really need a service we will negotiate a higher fee; once we’ve received what we wanted, we want to renegotiate. That may be legal but it’s not ethical. If you use a product or service, you must expect to pay for it.

I don’t know the answer but I’m becoming more confident in my conviction that the CB needs to take a step back and re-evaluate the ethics of what they are doing. Competition is only one factor of many in the world of economics and business — nothing exists in a vacuum.

A challenge in the world of government relations is that it’s inherently a long game. Here in British Columbia, the provincial government has been hearing the desperate voice of the electorate to restore affordability as quickly as possible.

This has manifested into a litany of housing policy announcements that are often big on podium bluster and critically shy on advance research or sector collaboration. The result is often one step forward, two steps back. 

Housing policy often used for populist purposes; ends up rushed, under-researched & weak on advance collaboration 

The BC Real Estate Association (BCREA), in cooperation with a coalition of like-minded and equally concerned housing organizations including the likes of the Aboriginal Housing Management Association, BC Non-Profit Housing Association, Canadian Mortgage Brokers Association – BC, LandlordBC and many others, made a public call for the government to establish a permanent roundtable on housing in April 2023.

The ask, however, fell upon resistant ears for a likely series of reasons. One of the most concerning is the governmental tendency to use housing policy for populist purposes. 

It’s my perspective that a true crisis deserves the best minds working to solve it, and it certainly shouldn’t be manipulated to attract votes. What’s necessary is collected expertise working together, a non-partisan approach, in-depth research and evidence-based decision-making. Far too often in B.C., our housing policy is rushed, under-researched, weak on advance collaboration with sectoral expertise, and as a result, significantly less effective than it has the potential to be. 

It’s not that the provincial government doesn’t have good intentions and a genuine desire to effect positive change. However, the influential leaders involved are either unaware of best-practice policymaking or arrogant enough to believe their hodge-podge of ministerial policy staffers is sufficient to solve the incredibly complex housing issues before them. 

Residential Tenancy Regulation changes: A victory with unaddressed concerns remaining

As a result, there are many instances where the government announces policy, only to have to make rapid amendments to correct overlooked issues due to a lack of advanced research. Case in point, over the summer the Province amended the Residential Tenancy Regulation to require landlords to give tenants four months’ notice, instead of two months, when evicting for landlord or purchaser use. The amount of time a tenant had to dispute the notice was also increased from 15 to 30 days.

In response to feedback from the BCREA and the Canadian Mortgage Brokers Association – BC, on August 1, 2024, the Province announced that it would be further amending the Regulation to require a three-month notice period (down from four months) and would give tenants 21 days to dispute the notice (down from 30 days) when a landlord issues a notice to end tenancy for the purchaser’s use of the rental unit.

These changes took effect on August 21, 2024. This was a sizeable BCREA Government Relations victory in terms of identifying issues created by the new legislation and achieving an almost immediate public backtrack from government. But while this was a partial course correct, there are still a variety of issues and concerns with the legislation that, as yet, continue to go unaddressed. 

Privacy and transaction lead time concerns

We voiced privacy concerns about a new requirement that landlords provide a copy of the Contract of Purchase and Sale (CPS) with the notice to end tenancy. To the government’s credit, the new landlord web portal was then updated so landlords are no longer required to provide a copy of the CPS to the tenant(s). Landlords will still be required to upload a copy of the CPS to the web portal, but it will not be disclosed to the tenant and will only be for internal Residential Tenancy Branch (RTB) use.

We would like to see high-ratio insured buyers (including first-time buyers) who will be occupying the property continue to have a two-month notice period because of the financial hardship caused by a longer delay in them taking possession of their property, and the likelihood of them running afoul of financing restrictions.

In future, the B.C. Government should allow much longer lead times for implementation when making changes that involve real estate transactions and tenancy issues. Provisions should always be made to exempt transactions that are already in progress when announcements about these kinds of changes are made.

To protect the privacy of buyers, it would be prudent to eliminate the requirement to report to former tenants for buyers who intend to occupy their own units. The buyer’s intent to occupy could be documented for the RTB by use of a Statutory Declaration or as part of the Property Transfer Tax return process. An early sale of the unit could be tracked through the Land Titles or BC Assessment systems. The government already has its own sources of information to verify the occupancy status of an owner and that the unit hasn’t sold within the year.

Addressing needs of certain demographics and short-term rentals for owners between completions

They also need to provide a more paper-based alternative to the new web portal for use by less technically savvy landlords or allow the existing paper forms to still be used for giving tenants notice. The Ministry’s suggestion for such landlords to visit a Service BC Office or the RTB’s Burnaby office for assistance is hardly a realistic or efficient option and is dismissive of legitimate problems of different demographic groups within our communities.

Lastly, they should also allow the rules for short-term rentals to accommodate property owners or buyers who are stuck between completions if the rental is needed for a period under 90 days.

In about a week, the B.C. election takes place. In the end, the Province will most likely be governed by either the BC NDP or the Conservative Party of B.C. Whichever party emerges victorious, a new, more collaborative future that back-benches politics and puts a newfound focus on non-partisan results is vitally needed.

Please note that it’s BCREA policy to not respond to comments on any of its online articles.

No query is too big or small — if it’s about elevating the look of your real estate, we want to hear it and we want to help! Email your questions to ninadoiron@isodesign.ca

As a real estate agent, one of the key challenges you may face when helping clients sell their homes is ensuring the property remains show-ready at all times. While staging is an excellent way to present the home in its best light and attract buyers, it can be difficult for sellers to live in a staged home, especially when balancing busy lives. But don’t worry — there are plenty of strategies to help sellers keep their homes ready for showings while minimizing stress and maintaining comfort.

Here, we’ll explore tips for sellers on how to live comfortably in a staged home, keep the property show-ready and avoid potential pitfalls. With your expert guidance, your clients can increase their chances of selling quickly and for top dollar.

Why it’s important to keep a staged home show ready

First, it’s important to emphasize to sellers why keeping their homes in pristine condition during the listing period is essential. A staged home is designed to appeal to the emotional triggers of potential buyers. A clean, well-organized space helps buyers imagine themselves living in the home, which can lead to quicker offers and higher sale prices.

However, one messy or cluttered space can break that emotional connection for buyers. When they walk into a home that’s untidy or doesn’t look like the photos they saw online, they can become distracted by the clutter and may focus on negatives rather than the home’s best features. That’s why sellers must maintain the home in show-ready condition at all times.

Tip #1: Create a daily routine to stay show-ready

A daily cleaning and tidying routine can help sellers keep their homes looking fresh without the need for a deep clean every time there’s a showing. Encourage your clients to set aside 10-15 minutes in the morning before heading off to work and another 10-15 minutes in the evening to quickly tidy up common areas, wipe down countertops and do a quick vacuum or sweep if needed.

This daily routine can prevent messes from piling up and help your clients feel more in control of their space. Consider sharing a checklist of high-priority tasks to focus on daily, such as:

• making the beds (use photos taken on staging day as a reference to restyle the bed)
• clearing off countertops
• putting away toys, clothes and personal items 
• wiping down kitchen and bathroom surfaces
• emptying the trash
• checking for pet messes or odours

Tip #2: Pre-pack personal and non-essential items

Encourage sellers to think of the staging process as the first step of moving. Ask them to pack away personal items, non-essential decor and excess furniture that could make the space feel cluttered or personalized. By doing this in advance, they’ll have fewer items to worry about maintaining and will make the home feel more neutral for potential buyers.

Not only does this help declutter, but it also reduces the number of personal belongings sellers have to organize every day. Plus, it gives them a head-start on moving once the home is sold!

Tip #3: Implement organizational systems

Having organizational systems in place can make a world of difference for sellers living in a staged home. Encourage them to invest in storage solutions like decorative baskets, bins and drawer organizers to keep essential items easily accessible but hidden from view.

Here are a few quick organization ideas that can help:

• baskets for storing items like shoes, blankets and kids’ toys in living areas
• bins or baskets inside closets to hide clutter
• drawer organizers in bathrooms and kitchens to keep counters clear but necessities closeby
• decorative trays on coffee tables or countertops to display essentials (like remote controls) in a stylish, controlled way

Tip #4: Designate ‘off-limits’ areas

If possible, recommend that sellers designate one or two rooms or spaces where they can store personal items and daily clutter when showings are scheduled. A basement storage room, garage or even an out-of-the-way guest bedroom can serve as a quick spot for stashing toys, laundry or paperwork before buyers arrive. Remember, this doesn’t mean that they should toss these items into the space — these storage spaces should always be neat and tidy.

This strategy can ease stress and provide a sense of relief for families who still need a bit of extra space for daily life but want to maintain the overall appearance of the home.

Tip #5: Be prepared for last-minute showings

Showings can often be scheduled with little notice, which can catch sellers off guard, especially during busy weekends. To help them prepare for this, encourage your clients to keep a “showing emergency kit” ready with supplies they can use for last-minute touch-ups.

The kit could include:

• a microfiber cloth and multi-surface cleaner for quick wipe-downs
• a lint roller for furniture
• air fresheners or room sprays to neutralize odours
• a laundry basket to quickly gather and hide personal items
• a small vacuum or broom for fast floor touch-ups

By having these essentials ready to go, sellers can clean up quickly and feel more confident when a last-minute showing request comes in.

Tip #6: Keep pets and pet items under control

While many buyers are pet lovers, not everyone appreciates the presence of pets during a showing. To appeal to as many potential buyers as possible, advise your clients to manage their pets’ presence and belongings during the listing period.

Pet management could include:

• arranging for pets to be taken out of the house during showings, either to a neighbour’s home, to daycare or on a walk
• keeping litter boxes, pet beds and food bowls clean and out of sight
• neutralizing pet odours with air fresheners or odour-eliminating sprays

Tip #7: Maintain outdoor spaces

Don’t forget about curb appeal! The exterior of the home is just as important as the interior, so sellers should keep outdoor spaces clean and tidy as well. This could mean mowing the lawn, sweeping the porch, clearing walkways and even adding seasonal plants or fresh flowers to the entryway. Yard maintenance should be done on a weekly basis. 

If sellers are too busy for this, encourage them to consider outsourcing the task to a local yard maintenance company. It’s important to remember that the condition of the outdoor space is often a good representation of the indoor space. Both should be show-ready at all times. 

Why it’s worth the effort

While it may seem like a lot of work to maintain a staged home, the effort is well worth it. Homes that are kept clean, clutter-free and neutralized for buyers tend to sell faster and for higher prices than those that aren’t. By following these practical tips, sellers can live comfortably in their staged home and ensure that it remains show-ready, allowing them to maximize the potential of their sale.

As a real estate agent, your role is crucial in guiding sellers through this process and providing them with the support and advice they need. The result? A smoother selling experience and happier clients.

Got home staging questions for a future column? Submit them to ninadoiron@isodesign.ca

Recent changes in the housing market present exciting opportunities for homebuyers. As a realtor, your role is crucial in guiding clients through these updates, helping them build effective plans to achieve their homeownership goals by having them reach out to a mortgage broker to see what they are able to afford.

Knowing these new rules and guidelines will help with strategy and future goals of climbing the “real estate ladder.”

Expanded amortizations for first-time homebuyers

Starting December 15, first-time homebuyers will have access to 30-year amortizations. This change can benefit your clients in two significant ways:

1. Lower income requirement. By extending the amortization period, the income required to qualify for a home purchase decreases. This means more clients can meet the necessary criteria.

2. Reduced monthly payments. Clients will experience a decrease in their monthly payments, making homeownership more financially manageable. For instance, on a $600,000 purchase, the monthly payment could drop by approximately $250, providing greater flexibility in budgeting.

Increased insured mortgage cap to $1.5 million

For clients with high incomes but difficulties saving for a down payment, the increase in the insured mortgage cap to $1.5 million can accelerate their path to homeownership. Previously, purchasing a $1.4 million home required a down payment of $280,000. Now, as of December, clients can potentially purchase the same property with a down payment of about $115,000 — a savings of $165,000.00 in upfront requirements.

This change is also advantageous for “right-sizers” looking to downsize. It allows them to allocate more funds from the sale of their larger home toward retirement, as they can put less down on a new, smaller property. However, clients should keep in mind that closing costs, typically around 3.0 per cent of the purchase price, need to be accounted for in each scenario.

For a $600,000 purchase price, anticipate that clients will need an annual income of approximately $150,000 to meet today’s stress-test requirements.

Switching lenders at renewal: A business opportunity

While you may not initially think about how switching lenders can benefit your business, it’s essential to understand that mortgages encompass more than just interest rates. The Canadian Mortgage Charter now allows insured mortgage holders to switch lenders at renewal without undergoing a stress test. This change opens up opportunities for borrowers to shop around for better rates and terms, potentially saving them thousands of dollars.

Encourage your clients to consider lenders that don’t adhere to posted rates. This strategy can significantly reduce Interest Rate Differential (IRD) penalties.

Case in point

For example, let’s compare a $1 million mortgage with three years left on a five-year term at a 5.0 per cent interest rate: 

By choosing a monoline lender (provided qualifications are met), your client could save $25,000 in IRD penalties, allowing them to manage financial changes better and seize new opportunities.

Tax-efficient savings strategies

As well, two important tax-efficient savings methods have emerged that can empower your clients on their journey to homeownership:

1. RRSP withdrawal limit increase. The amount that can be withdrawn from an RRSP has increased from $35,000 to $60,000 per borrower. This change provides additional funds for clients to put toward their down payments.

2. First-time home saver account. Introduced in 2023, this account allows clients to save $8,000 per year in contribution room, which reduces their taxable income. Unlike RRSP withdrawals, funds from this account do not need to be repaid and any gains earned within it are tax-free. This account, however, has a sunset clause in 2028, making it vital for clients to act quickly to maximize its benefits.

These recent changes create valuable opportunities for your clients. By understanding the implications of expanded amortizations, increased mortgage caps, flexible lender options and tax-efficient savings strategies, you can help them make informed decisions on their path to homeownership.

The stalemate continues between buyers and sellers in Toronto’s real estate market this month. It’s easy to get excited because sales are up from last year — but let’s remember that last year was an exceptionally bad year. In the broader view, the fall market has been relatively weak in the long-term context against the typical month of September.

Key September points

The Toronto Regional Real Estate Board (TRREB) posted its monthly Market Watch report, and here are the key points you need to know from the summary: 

1. Sales are up 8.5 per cent from last year.
2. New listings are up 10.5 per cent, slightly outpacing sales. 
3. Properties taking 35-45 per cent longer to sell compared to last September.
4. Because of slowed sales cycle, active listings are up 35.5 per cent! Supply accumulation is becoming substantial.
5. House prices are still grinding down — nominally, 1.0 per cent below last year, with real house prices down 3.0 per cent when adjusted for inflation.

Source: TRREB

Recovery or rebalancing? 

TRREB argues the uptick in sales we’re seeing is the result of favourable market conditions, such as interest rate cuts and revised mortgage lending guidelines. These factors are certainly important to recovery, but a deeper look suggests that the GTA market might be more balanced than on a path to full recovery.

It’s worth seeing a long-term “sideways” market, rather than an “upwards” one. The key factor here is the rate of growth in supply, which has outpaced demand, challenging the notion of a straightforward recovery. Until that changes meaningfully from buyers entering the market more quickly than sellers, it’s tough to imagine a complete recovery has begun.

Sales increase due to new opportunities for buyers, but price still most important factor

The 8.5 per cent year-over-year increase in home sales (4,996 in September 2024, up from 4,606 in September 2023) is presented as evidence of recovery. TRREB President Jennifer Pearce attributes this increase to buyers capitalizing on lower borrowing costs and adjustments to mortgage lending guidelines.

These changes include:

1. rate cuts from the Bank of Canada 
2. reduced five-year fixed mortgages from a falling Canadian five-year bond yield
3. the coming introduction of longer amortization periods
4. the ability to insure mortgages for homes valued up to $1.5 million 

These factors certainly make the market more affordable for some buyers who are limited by capital costs and the lending environment. However, with the B20 stress test still in place and buyers qualifying at rates over 5.0 per cent, price ultimately becomes the most important factor for many buyers looking to re-enter the market.

Easing of stress test could build staying power

To this end, TRREB highlights that the easing of the mortgage stress tests for existing homeowners on renewal could build some staying power into the market, by making homeowners and investors able to afford to keep their homes rather than selling when faced with financial stress.

TRREB also expects further rate cuts to allow a growing number of households to afford homeownership. This notion is especially pointed at first-time buyers, who have been outlined by the Bank of Canada as nearly 50 per cent of all homebuyers, representing a key demographic for those hoping for a recovery in the market. 

Supply outpacing demand

A closer analysis reveals a more nuanced picture. While demand (measured in sales) grew, the rate of new listings entering the market has grown even faster, by 10.5 year-over-year, slightly outpacing sales growth. In September, 18,089 new listings were added to the MLS, contributing to an already better-supplied market. This gap between supply and demand, rather than indicating a shortage of homes, points to an easing of market pressures and a better market for buyers to enter. 

Compounding this, we’re seeing a significantly increased “time to sell” — meaning it takes an extra week for a listing to sell, compared to the average 20 days on market from September last year. This slowing absorption has led supply to accumulate, with active listings now up 35.5 per cent compared to September 2023.

Ability to negotiate on price: Indicates a market no longer heavily favoured to sellers

Should this trend continue to hold, it’s reasonable to expect that buyers will resume their home search as they see more homes on the market and hope they can capitalize on the supply, shop around and negotiate with sellers. This is how the imbalance between supply and demand is further materialized, in a decline in prices.

The MLS Home Price Index Composite benchmark was down by 4.6 per cent year-over-year, and the average selling price in September dropped 1.0 per cent compared to the previous year.

TRREB attributes this to increased negotiating power for buyers, especially in the more affordable segments like condominiums and townhouses, which are favoured by first-time buyers. More activity in the lower ends of the market can skew the average down. Interestingly, 416 condominium sales are actually up year-over-year, despite the market being in a severe state of excess supply. The ability to negotiate on price is a clear indicator of a market that’s no longer tilted heavily in favour of sellers.

Source: TRREB

The pricing context: A “recovery” in question

A true market recovery, by definition, would generally see home prices stabilizing or even increasing as demand starts to outpace supply. However, this is not currently the case in the GTA.

While average selling prices have edged up slightly on a seasonally adjusted basis compared to August 2024, the year-over-year decline in benchmark prices suggests that the market has not fully recovered to its previous highs. Affordability challenges that plagued the market before the interest rate hikes are being alleviated, but they haven’t disappeared.

Furthermore, while rate cuts may improve affordability in the short term, they don’t necessarily address the long-term structural issues in the housing market, such as supply constraints or high construction costs. It’s worth noting that while lower borrowing costs can temporarily boost demand, they can also encourage speculative buying, which could further distort the market, particularly if supply doesn’t keep pace.

Recovering sales, but not prices

Despite TRREB’s optimistic messaging, the GTA housing market appears to be in a state of balance rather than recovery. Yes, sales are up, and rate cuts have eased some of the financial pressure on buyers and sellers. On the other hand, the growing supply of homes, coupled with modest price declines, suggests a more buyer-friendly market, one in which supply is catching up to — and in some cases, surpassing — demand.

This dynamic is providing more negotiating power to buyers, and while that’s a positive development for affordability, it doesn’t necessarily signal a robust recovery in price. Instead, the current market is best characterized as one where buyers have regained some control, but where underlying challenges around housing supply and affordability remain.

The return to a balanced market does point to a steady resurrection of sales activity, which is welcome news for the real estate profession that has been dealing with drastically reduced activity for some time now.  

Recently, I had a productive conversation with clients who were planning their retirement. We discussed timelines and strategies to secure their future, including selling their current home and weighing the benefits of continuing homeownership versus stepping away from the housing market.

Their current home is valued at around $1.2 million, with no mortgage. They also have savings and RRSPs, but most of our focus was on how to optimize their real estate assets for retirement. If they sold their home, they’d have around $1.14 million in equity to invest, so the key question was how to best use that money to achieve their goals, including frequent travel.

Here’s a look at the options we explored based on their real estate and assets. A scenario like this could apply to many of your clients and come in handy when discussing their options.

Option 1: Sell and invest locally

One possibility was selling their home and purchasing a property in Oshawa with a legal accessory apartment for around $800,000. After covering purchase and closing costs, they would have $300,000 left to invest.

At a 4.0 per cent return, this would generate approximately $12,000 in annual income. In addition, the accessory apartment could be rented for about $1,800 per month, bringing in an additional $21,600 annually.

This would give them a total of $33,600 per year in combined income, which would be taxable but with minimal tax implications given their lower retirement income. Plus, some home expenses could be written off as rental deductions.

Option 2: Buy a seasonal or vacation home

Another appealing option was using the $300,000 to purchase a winter home in Florida instead of investing it in the stock market. After converting the funds to American dollars, they would have about $225,000 to buy a property in “The Villages” northwest of Orlando.

The carrying costs would be about $300 per month. Although this option wouldn’t generate investment income, they would still earn $21,600 annually from renting out their Oshawa property. Additionally, they could rent out their Florida home when not using it, potentially generating $3,000 to $4,000 per month in U.S. dollars.

Helping your clients explore equity-shifting opportunities

This conversation highlighted how many homeowners, particularly those who have lived in their homes for decades, overlook the financial potential of downsizing or shifting their equity into different types of properties. Even if they opted to rent rather than purchase a vacation home, the income from investments or property rentals could still comfortably cover their travel and living expenses.

For homeowners in the Durham Region and many other areas, selling and reinvesting home equity offers a range of benefits, from financial freedom to increased quality of life. I’ve spoken to many who regret holding onto their homes for too long, only to find that rising maintenance costs strained their budget and limited their ability to enjoy retirement luxuries like travel.

At a certain point, it’s important to reassess whether homeownership continues to make sense or if downsizing is the smarter financial move. For my clients, their next step was to consult their accountant about the tax implications of owning rental properties both locally and in Florida.

It’s a good problem to have as they enter this exciting new phase of life. Your clients might be in a very similar position.

Struggling to close deals in today’s market? Let’s get practical and tactical and look at three simple goal-setting techniques that will help you increase your closing ratios.

Early on in my career, I woke up without a plan. I would log into MLS, get distracted by the notifications, decide to update my profile, open my email and social media accounts and dive headfirst into the wormhole. 

I would get a lead and be super excited about the opportunity, but I didn’t have a system for getting from the call to closing. I felt “busy,” but I wasn’t getting the expected results. 

So I found people who were. And I studied them in depth. What did they do differently by which they were achieving success when so many in this industry gave up before they even had a chance to succeed?!

Do some goal-setting before investing time, skill or money

A huge unlock for me was zooming out and setting up goals for what I wanted to accomplish BEFORE I deployed time, skill or money.

The three pillars I focused on to start with were setting clear goals personally, professionally and transactionally.

Personal goals

If your personal life is falling apart, it will seep into your professional life, and people can FEEL it. 

No one wants to do business with people they don’t trust or who don’t show discipline or professionalism in their personal life.

If you had to grade the following from 1-10, with 7 not being an option,* where would these fall in your life? (This is my stack. Modify it to whatever tracks with your ambitions.)

• Faith
• Fitness
• Family
• Friends
• Finances

If I take care of my stack in order, by the time I get to work, I’m PUMPED and EXCITED that I GET to do my job. 

Others I meet resent their work because their family is upset they work all the time. Or they feel sluggish and unhealthy, which studies have proven makes you more irritable and likely to fly off the handle. 

What you focus on expands. 

It doesn’t mean I’m perfect by any means, but if any of these fall below a 6, I ask myself what small action I can do to make it an 8-10. 

Often, it’s just frontloading the calendar with family trips, walks to the beach and time-blocking my workouts in at a time I KNOW they’ll get done. Personally, I had to start waking up earlier to get my mind and body right before the world started pulling on me. It took time and effort to make the change, but I can tell you that the version of myself now would run OVER Justin 1.0. 

If I don’t take the time to ask myself these questions, how fast will time pass without me making improvements? I can tell you: Decades in the blink of an eye.

Professional goals

Having a plan for what you would like to be known for, including transaction volume, marketing plans and budgets, is no different than plotting a course for a journey across the ocean.

Not having a plan is also no different than not plotting a course across the ocean.

Which would you rather do if you were crossing the Pacific?

Reverse engineer success. As an example, if you want 50 deals:

• 8 dials = 1 contact
• 12 contacts = 1 lead
• 5 leads = 1 appointment 
• 2 appointments = 1 contract
• 2 contracts = 1 transaction 
• 240 contacts = 1 transaction

By this metric, if you wanted to do 50 deals a year, you should contact 230 people a week. Let’s say you can only commit to prospecting four days a week. That’s 55 people (rounded down).

That’s not a lot. If you sit down for 30 minutes, open your CRM, hit 45-50 people a day x5 days a week — there are your 50 deals. 

The key is like my morning routine: start with 1-5 people daily until you develop a system. What you focus on improves. If you commit to it, you get faster. My bet is with one hour of focused prospecting time daily, you can get to 100-200 touches quickly. But it starts with one. 

The real secret? Most successful agents do 1-3 hours a day because they understand one clear thing: prospecting is the easiest way to always stay in business. 

This doesn’t mean turning into a boiler room cold-calling machine. Prospecting can be DMing a contact on Instagram, texting or emailing, but yes, a human call is the mother of all connections. The key is to log the contact in a system where you can track your efforts. 

The basics are undefeated. 

Transactional goals

Many people don’t realize that it’s essential to have a clear picture of success in a transaction with a client. Be it a buyer or seller, tenant or landlord, all of these have different measures of success.

Some are price-related, some are condition-related, some are tied to an overall portfolio strategy where the transaction is part of a bigger plan. 

The best thing you can do for a client is spend the time to reverse engineer what success looks like for THEM. Many agents get this wrong — they fail to remember that we are FIDUCIARIES. This means that the client’s goals are above our own. 

Think about how this has played out in the industry:

Agents who throw cutting comments amid tense negotiations to belittle others so they can feel important or because they felt slighted in the past and are looking for revenge — all while their client suffers the costs, unbeknownst to them. 

A broker-owner so caught up in a personal vendetta that he chooses to exert power over a minor contractual disagreement that could lead to an unneeded legal battle between clients when everything could have been easily mediated.

The listing agent who literally tells a client that they need to buy through them “because it’ll be easier to get the deal done” and builds a reputation for it. 

I could probably write three articles on stories that all give you the same “feeling,” but I think you get the point. All of these are typically a sign of shortsightedness and insecurity. 

Over time, focusing on the transactional goal will allow you and your clients to develop a stronger bond and relationship as you’re tested with various challenging situations because, if documented, you can always zoom out to the original goal, then zoom in to the problem at hand for a pragmatic solution. 

Plan ahead to execute well

So, what goals are YOU going to set — personally, professionally and transactionally?

I bet there are deals and things you can think of RIGHT NOW.

I know that simply writing this has reminded me to update mine. I used to business plan every December, but over the years I’ve realized that in our business, you need to be working 60-90 days AHEAD of when you’re looking to execute. This means that planning for me now starts after Labour Day so I’ve got a clean plan in writing by October. 

If you need help or accountability, reach out anytime. Sometimes all it takes is sending a message.

* 7 is a non-answer — if you force yourself to choose 6 or 8, you know where you really stand.

We know the majority of real estate agents love selling homes because they love architecture or helping and working with people. For many agents, there is nothing more satisfying than helping people find their first home or a new home, and they often wear many hats other than just helping to buy or sell properties.

The public asks a lot of their agents but maybe not enough when it comes to selling condominiums. Assessing the property value of a condominium is so much different than a single-family home. 

Be your client’s first line of defense in a potential condo purchase with warning signs

Buyers are purchasing a unit in a corporation run by a board of directors voted on by its owners — do real estate agents take this complex situation into consideration when selling a condominium unit?

Agents can be the first line of defense when showing potential condominium owners new units by helping them identify the signs of a bad board of directors — and to do this, they don’t have to review documents. A condominium board has a fiduciary responsibility to the owners and the corporation itself, so they are directly responsible for a neglected building.

The first time I walked into the building of my first condominium I was a little surprised that the entry system had not been updated. There was no fob system either, just the same old lock and key system installed over 20 years ago. A little ping in my head went off, and I remember thinking how odd it was — it’s not a huge expense to introduce a fob system into a building so what did this mean?

This was the first red flag I should have considered because the problems didn’t stop after I stepped into the building.

Bring up potential issues as you view a property

Real estate agents can help potential buyers by identifying a few potential red flags, which can be communicated while showing the property. Depending on the number of warning signs, it may be necessary to consider an additional review of documents.

Buyers can see the red flags but they often don’t register because buying a home is overwhelming.  We all know the only thing most buyers see is that fantastic kitchen or large patio, for example. Everything else just fades away and any practical signs are often overshadowed by those great features. If a realtor can help identify some of these flags, they can assist potential owners in making sure they don’t get stuck in a really bad condominium building with a unit that happens to have a great kitchen. 

Watch for these common red flags

These little signs will allow you to possibly make a suggestion to your buyer that a more detailed review will be needed: 

1. Little to no upgrades. If you’re walking into a time warp, it’s a sign that the board is not working well together. Why the building hasn’t been upgraded should be something you think about before your client buys.

2. Meeting minutes. A lack of minutes isn’t necessarily a flag but it could be something to consider. The board may be very efficient and do a lot of governing by emailing each other so they don’t meet every month, or maybe it’s because the board is dysfunctional or undemocratic and doesn’t hold meetings.

3. Neglect. Have a look in the corners of the common areas, elevators and back alley to see how often the building has been cleaned. Buildings need a good commercial cleaning and a power wash on the inside and outside every couple of years — if it’s not done, that’s a pretty good sign something is not working in the corporation.

4. No welcome or information package. The more services a building provides, even for small buildings, the more important these types of documents become. They should include items such as passwords, garbage policies, recycling and any number of helpful things an owner should know about their building. If there isn’t anything provided, it’s a sign that there is very little organization from the board and you may need to dig deeper.

Best to take it one step at a time

While it’s a big thrill to sit and write the offer for a unit on the spot, if the building is exhibiting several reg flags it’s worth the extra effort to first wait and check out how the building and corporation function.

If the owner isn’t interested in the time or expense of a detailed document review then it’s prudent to at least suggest taking a second look. Have the buyer bring a friend or family member to the building that isn’t wearing those rose-coloured glasses and can point out some of the flaws.

Selling a condominium should take a little extra attention and more work because of the nature of communal living. Ensuring your buyer is investing in the best building is your first priority. There are too many problems with boards and property managers that affect the health and well-being of an owner, unlike what they’d experience in a single-family home.

Working to safeguard and protect your buyer in picking the right condominium in a building where the board operates in the best interests of its owners should be at the top of the list.

The sayings “You get what you pay for” and “Penny wise, pound foolish” are tales as old as time.

I’ve seen these messages play out in the real estate industry throughout my career, and they apply to everything, including choosing a lawyer. It’s tough to ignore price, but this should not be your clients’ focal point. What should be foremost in their minds is getting value for their money.

‘Cheaper’ law firms

When I recommend lawyers to my clients, I don’t tell them “this is the cheapest lawyer” or “this lawyer won’t charge you as much as the others.” Instead, my lawyer recommendations are based on personal experience, ability, eye for detail and their upfront honesty and work ethic.

I have heard and witnessed horror stories of clients who don’t listen to my advice. They make up their mind that “cheap is best.” But nothing could be further from the truth.

For example, one of my clients chose a lawyer that purposely advertised their fees as being X amount of dollars flat rate and everything done with no hidden fees. Well, you guessed it, the hidden fees are what absolutely caused a transaction to not close. This law firm did not provide them with the correct land transfer tax figure or the correct cost of title insurance, they charged “hidden fees,” and they then tried to blame the client for the reasons the amounts were different (higher) than previously advised.

Unrealistic amount of 4-5 star reviews

There have been issues with law firms, from what I hear from other firms, blatantly “buying” reviews. If a law firm is offering a discount for a review, those are indeed “bought” as people want money back or a “discount” on their costs to buy or sell a home.

These reviews could be, and lots of the time are, disingenuous or inaccurately reflective of the law firm, its staff and its services. When you look at the 1-2 star reviews, you might hear a tone that doesn’t match the “cookie cutter” positive reviews but does match one other about problems, lack of services and post-closing issues that cost clients more than what they saved.

What a quote should indicate

When you request a quote from a law firm, you want to see the following, with an amount, next to each item:

Legal fees

• Purchase/sale – $X.XX
• Mortgage/discharge of mortgage – $X.XX
• First-time home buyer documents – $X.XX
• Land transfer tax compliance – $X.XX
• Applications/notice of assignment of rents, etc. – $X.XX

Disbursements

• Title search – $X.XX
• Office disbursements – $X.XX
• Tax certificate – $X.XX
• Water certificate – $X.XX
• Software – $X.XX
• Bank charges – $X.XX
• Other fees/charges
• Title insurance – $X.XX
• Registration – $X.XX
• Land transfer tax – $X.XX

This is a quote you can trust.

One of the best quotes that I have seen, advised who exactly was receiving the money. This law firm’s quote specifically stated the amount of money that was being paid to Service Ontario, the amount that was being paid to the Minister of Finance, the amount paid to the title insurance company, which title insurance company the law firm was using, etc.

This gave the clients a comprehensive breakdown of not only the amount of money owed but who was benefiting from that money, and they could also do a bit of research into the title insurance company and have some ease knowing what protection they were getting from that specific company. When you look at the amounts on a quote, it can seem very overwhelming, and quite frankly expensive — but the point is, you see it!

There should be no hidden costs, no surprises, no scrambling last second to come up with money. Your client is well prepared when they see a full, upfront and honest quote.

Purchasing a new build

The costs associated with purchasing a new build always catch my clients off-guard. To account for this, law firms with experience in purchasing new builds will advise clients that they need to prepare for a significant amount of money to be provided. Since the COVID-19 pandemic, the material costs, development costs and, depending on the nature of the purchase i.e. a condominium, townhouse, single-family house, etc., other associated costs are not a simple mathematical equation done by an agent or mortgage broker.

We usually tell clients on resales to anticipate anywhere from 1-3 per cent of the purchase price, but with new builds, this can be an extremely low estimate. An amazing law firm will, after reviewing the Agreement of Purchase and Sale (APS), provide a ballpark of the amount but with the warning that it could be a lot more. The biggest hitter on these charges is development fees, which are paid to cities/municipalities, provinces, government ministries, etc. to cover and accommodate the new influx of people moving into the area. This includes, for example, adding more public transportation, new roadways that will need to be maintained each season (e.g. snow plowing), schools, parks and more.

On a basic 1-2 bedroom condominium, these fees can be $6,000-$7,000, and on an average semi-detached or detached home (depending on location) they can be $12,500-$25,000. And this is only one charge. Hydro and water connections range from $350-$1,500 each, driveway paving ranges from $650-$1,250 and tree planting can be around $500-$1,000. Since these are not normal costs on a resale property, the 1-3 per cent estimate doesn’t work. 

Conversations with buyers about these charges should not only start with me as a real estate agent but should also be reiterated by the law firm. This is why the most important thing to do with new build purchases is to have a clause that allows for solicitor review, as law firms can write a letter asking that these costs be “capped” to a certain amount and can then negotiate on your client’s behalf. Depending on the property being purchased, a great law firm will get these additional costs, including development fees, capped at $5,500-$15,000. This will give your clients an idea of how much “extra” money they need at closing.* 

Title insurance

Buyers should never close a transaction without the protection of title insurance, especially with the amount of fraud that’s so prevalent these days. Title insurance is their sword and shield — it steps in to sort out issues. Nonetheless, this insurance is always a sore spot with my clients. They don’t understand why their $1.5 million home purchase has title insurance in the amount of $1,300-$1,500, even when lawyers advise that after $500,000 premiums are paid in increments as the purchase price gets higher. 

This one-time payment protects homeowners for as long as they own the home, for example, from mortgage or total title fraud. It also covers outstanding bills, like water or property taxes, that the seller didn’t pay, along with undisclosed orders on the property and more.

I had a client buy a (commercial) property with TSSA (Technical Standards and Safety Authority) orders that would have cost him around $150,000 out of pocket, but title insurance paid the value of the whole policy plus the 10 per cent increase after one year, making the damage minimal to his pocket.

An amazing lawyer will ensure buyers have Deal Protection Endorsement and Market Value Endorsement (MVE). MVE will protect the value and equity in the home. If an issue pops up, say, 10 years from closing and the home has exponentially increased in value, if they’re to be paid out anything, MVE ensures it’s for the current market value, not the original value shown on the policy.

The bottom line: if a law firm doesn’t explain this to their clients, it’s not a law firm that you should be recommending or using, ever.

The law clerk/legal assistant

Your client’s main point of contact will be the law clerk and/or legal assistant assigned to their file. One telltale sign of a disorganized law firm, or a law firm that won’t take a client’s best interest to heart, is if the transaction has been “bounced” around to multiple parties at the office. Now, if there has been an emergency and the clerk/assistant is not in the office, that’s a reasonable explanation for a file to be moved to a new person. These situations happen and they don’t mean the law office is less than par, but if they’ve been given to more than four different people, this should be worrisome.

It’s one thing if they mostly talk to the assistant and then the clerk calls to clarify something (as the clerk has the better legal knowledge and does most of the legal work on the file), but if they’ve spoken to multiple clerks/assistants and are constantly getting asked the same questions over and over again, this is a “cause for pause” and a conversation they need to demand they have with a lawyer.

My favourite law firm has the law clerk talking to everyone, she makes notes in every file and the front of every file has a checklist to indicate what happened/is happening, when and why, what’s outstanding and still needs to be addressed, etc. Your clients need to be comfortable with the clerks and assistants.

My rule has always been if they’re not forthcoming with what to anticipate or if they find out but don’t divulge information clients most definitely should know, that’s a sign for concern. A prime example here is if the law firm finds out your client is in a “train transaction,” meaning they’re selling to buy and the people they’re buying from are also selling to buy: the parties are reliant on the very first transaction. In this case, a good firm would tell them to try and get a same-day bridge loan. This will stop them from incurring costs on the purchase in the event that the seller doesn’t get their mortgage funds, funds don’t come in time, etc.

No law firm wants to deal with extremely costly extensions due to subsequent train transactions. These are law firms that know what potential situations can incur and the costs they might involve, and they’ll do everything to ensure clients aren’t getting “screwed” financially.

Above all, the law firm your clients go with will make or break their experience, finances and sanity. Help them make the best choice.

* I’ve heard of cases where builders set water/hydro connections at $70,000 to “get around” the capping agreement, as these charges aren’t included in capping (also not included in capping are property tax, common expenses, grading/performance deposit, etc.). Lawsuits have come out of this and possibly still are.

Canada’s post-secondary education system is globally recognized, attracting students from around the world. However, a severe shortage of student housing threatens this success, posing a broader socioeconomic challenge that demands urgent action.

The Canadian housing market faces a significant supply and demand imbalance, with over four million homes needed over the next six years to restore affordability.* Other policymakers, such as the Canadian Human Rights Commission, believe this number could be even higher. Rising government charges and insufficient construction capacity have exacerbated this crisis.

Without positive government intervention and policy adjustments — such as the recently introduced HST exemptions on rental housing — amid the currently challenged financial environment, the lack of housing starts witnessed in the past two years will persist, particularly in university cities and towns where demand for all housing is exceptionally high. 

The magnitude of the student housing shortfall 

Canada is experiencing an unprecedented shortfall in student housing, with a deficit of over 400,000 beds nationwide.** This shortage is particularly acute in the country’s 20 largest university markets, which host approximately 1.5 million post-secondary students but offer only around 170,000 beds.*** The result? An overwhelming majority of students are forced to compete for already limited and expensive rental housing, exacerbating the housing crisis in local communities. 

In university towns like Guelph, Ontario, the housing shortage is particularly severe, reflecting a broader trend across many such communities. The strain on local rental markets, driven by insufficient student housing, has led to rising rents and forced many, including students, into substandard or overcrowded accommodations. Compounding this issue, the provincial tuition freeze mandate for domestic students has compelled universities to increase international student intake to cover rising costs, further straining the housing supply. 

The role of purpose-built student accommodations 

Purpose-built student accommodations (PBSAs) offer a viable solution to this crisis. Unlike traditional rental units, PBSAs are specifically designed to meet the unique needs of students, providing them with safe, affordable and community-oriented living spaces.

Countries like the United Kingdom and the United States have successfully implemented PBSAs at scale, significantly alleviating housing pressures on students and local communities alike. Off-campus PBSA accounts for 60 per cent in the U.S., 58 per cent in the U.K. and 69 per cent in Australia, but only 29 per cent in Canada.**** The PBSA market in Canada remains underdeveloped.

To close the gap, we must incentivize the development of PBSAs through policy changes, financial support and streamlined regulatory processes. The recent introduction of PBSA in the Government of Canada’s Affordable Housing Fund, which aims to provide low-interest loans for new affordable housing projects, is a step in the right direction, though details have yet to be released. Still, more needs to be done given PBSAs are essential to drive affordable housing and economic growth, by alleviating existing housing stock that can be made available to the general non-student population.

Student housing in Ontario amid ongoing municipal approval challenges 

Bill 185 in Ontario is a significant development for expediting approvals in the student housing sector. This legislation has enabled Forum Asset Management to unlock approximately 1,100 units across projects in Guelph and Toronto, providing University of Guelph and York University students with high-quality, community-focused housing.

However, despite the progress made by Bill 185, developers continue to face headwinds, from continually escalating development charges (which in Toronto, according to data from Scotiabank, have increased by 2,000 per cent over 20 years) to higher construction and financing costs. 

The way forward: Collaborative efforts and policy reform 

The Canadian student housing crisis cannot be solved by developers alone. It requires a combined effort from all stakeholders, including government agencies, educational institutions and the private sector. Key policy changes, such as the inclusion of PBSA in the definition of affordable housing (which would create development charge exemptions) and the adoption of policies similar to Bill 185 across other provinces, are essential to unlocking the potential of this sector. 

Additionally, property tax exemptions for student housing catering to specific university student bases, both on and off-campus, should be created. These exemptions could play a pivotal role in supporting universities’ broader educational and community missions, regardless of whether the housing is university-owned or operated by the private sector.

By lowering the operational costs for student housing providers, such exemptions could directly translate into lower rents for students. This is particularly critical as students often face significant financial pressures, including the burden of repaying student loans upon graduation. Alleviating financial strain allows students to focus more on education and well-being, and less on the economic challenges associated with finding suitable housing.*****

Moreover, universities must take a more active role in facilitating the development of PBSAs on or near their campuses. The QUAD at York University is an example of what can be achieved when public and private entities work together toward a common goal. 

Canada’s housing crisis is multifaceted and impacts all Canadians as well as international students. By adopting supportive policies, we can create more PBSA, which delivers a “two birds, one stone” approach by freeing up traditional housing while providing students with the safe, affordable housing they deserve.

Successful projects such as ALMA @ Guelph and The QUAD at York University offer a blueprint for creating vibrant communities that benefit both students and the broader population. Crucially, these projects require experienced developers who understand the unique needs of students, as PBSAs are far more than just conventional apartment developments — they’re about building communities that foster social belonging, well-being and positive environments essential to the development of our future leaders.

* Canada Mortgage and Housing Corporation, Housing shortages in Canada, Updating how much housing we need by 2030.
** Forum estimate using data from Bonard, Student Housing Market Canada. November 2023, and Statistics Canada.
*** Bonard, Student Housing Market Canada. November 2023.
**** Canada Mortgage and Housing Corporation, Canada’s Housing Supply Shortages: Estimating what is needed to solve Canada’s housing affordability crisis by 2030.
***** Simplydbs. Student Housing Index Survey. Student housing and youth mental health: Survey finds strong correlation.