It’s only been a few years since I first saw a serious home surveillance system installed in a Saskatoon home I’d been hired to market and sell. It was an impressive and sophisticated system that enabled the home owner to look in and listen to what was happening in their home while they were away. They used it regularly to monitor the home.  I later learned that they used it to look in on buyers who were viewing the home.

At the time, systems like this were rare because they did cost a lot of money. The value of this particular system was in the tens of thousands of dollars. Just a few years later, surveillance systems are a dime a dozen. In fact, a $5.00 iPhone app can monitor up to a dozen audio and video feeds using simple equipment like webcams. Small cameras and microphones can easily and inexpensively be used to monitor activity in the home.

The same equipment can be used to look and listen in on your “private home viewing.”

When viewing homes as a prospective buyer it’s best to behave as if you’re being watched. Avoid judgmental comments about the home owner's lack of taste. Try not to get too excited. Put on your poker face. Save your negotiating strategy discussions for the car ride home.  Behave as you would if the home owner were right there with you. They just might be.

I’m always happy to answer your Saskatoon real estate questions.  All of my contact info is here. Please feel free to call or email.

Norm Fisher

Royal LePage Vidorra

If you’ve visited my blog before, chances are you’ve caught on to the fact that I’m very concerned about a practice that is occurring regularly which I believe is deceptive and hurtful to both buyers and sellers. It goes like this; the agent lists the seller’s property and promises to give the home full exposure to the market including all kinds of advertising and more importantly, MLS® service. He then does whatever he can to hide the listing from the market while he makes his best effort to sell the property himself, hoping to pocket the entire commission. Perhaps he lets a few of his best buds from the office in on the game, but for the most part, he tries not to let anyone know it’s for sale unless he or someone else from his office has the chance to show it to the buyer.

Why should you care? Well, if you’re a home buyer it robs you of the opportunity to see and consider homes that were supposed to be listed MLS®. It limits your options. If you’re a seller, you should care because these practices are almost certainly going to cost you money; lots of money. Every agent knows that there is a pretty direct relationship between the number of prospective buyers for your home and the price at which your home will sell. If an agent pulls this trick on you, he has no shame. He is a deceptive, selfish person who thinks nothing of stealing from you. He certainly has no regard for the fiduciary duty which he owes to you as your agent.

At first, I was reluctant to bring it up. Now, I’m like a raving lunatic who can’t be stopped until this evil practice is dead. Please forgive my rambling but I do take this business very seriously.

I did a little research today on Saskatoon and area real estate sales dating back to February 15.

Here’s what I found.

• A seller is more than twice as likely to receive an offer which is above the list price if the buyer is represented by another real estate company (or brand). Last week the average overbid exceeded $6,000 and we’ve seen offers as high as 15% over list price in the past few weeks. As a home seller, you probably want to maximize the chances that it will happen for you.

• Where a listing sold for less than the asking price, the average discount was just .4% if the buyer was represented by a different real estate company (or brand). The discount jumped to 2.4% when the same company (or brand) represented both the buyer and the seller. On a $250,000 home, the difference amounts to an additional $5,000.

I believe that this massive disparity is the result of agents who engage in the practice I’ve described. I can’t think of another reasonable explanation and I’m seeing it happen every day.

There is nothing wrong with entertaining offers from a buyer who is working with your agent, or your agent’s company. However, if there aren’t any agents from other companies inquiring about your home, you may want to find out if your agent is playing “hide the listing.”We are currently experiencing the hottest real estate market I’ve ever seen. Make sure your agent is helping you take advantage of it, and not robbing you blind.

I’m always happy to answer your Saskatoon real estate questions. 

Norm Fisher

Royal LePage Vidorra

Sharon, a real estate investor from Calgary, Alberta occasionally visits my blog.

If I recall correctly, she contacted me after she read one of my little rants about poor quality images in real estate listings. From time to time, she forwards copies of listed properties which strike her as ridiculous in some way. She has no shortage of material to choose from so she uses her discretion in sending me those which are the most fun.

Her latest email was this listing (no longer available), marketed by a Calgary agent who indicates on the listing that it is a “No Animal Home.” This image of the kitchen appears to show two food dishes on the floor in front of the kitchen cabinets. I’m thinking that these people either have a pet or some pretty nasty eating habits.

Sharon asks, “What are they thinking!?”

Sharon, I think it’s safe to say that someone is not thinking very much. 

I heard a story today that left me so incensed, that I couldn’t resist repeating it.

Some time ago, a local church built “a 15 story high-rise building offering enriched housing for seniors.”Apparently, the building is managed by “a voluntary board (hereinafter referred to as the board) independent of the church.The building contains 109 suites, 36 are subsidized rental units and the remaining 73 are “life interest lease suites.”For those unfamiliar with the life lease concept, a buyer buys the right to use the unit for their lifetime. When they are finished with the home, it’s sold back to the original owner, usually a non-profit organization, and the price is determined based on terms outlined in the lease document.

Here’s the story as it’s told to me by the daughter of a senior couple (hereinafter referred to as John and Mary) who purchased a life lease in the building. I have not seen the documents involved in this transaction.

It seems that in 1989, John and Mary had reached their senior years and decided that they were ready for condo living. They purchased a life lease for $83,000 and happily settled in. At the time of the purchase, their lawyer expressed some concern regarding the ambiguity of the resale clause which stated that John and Mary were obliged to sell their interest back to the board when they were ready to sell at a price “hereon depending upon the conditions prevailing” at the time of the sale. Apparently, the documents do not indicate what “conditions” the price is dependent on. I expect most would agree that “real estate market conditions” would be the obvious inference. Comfortable that they were dealing with the church, John and Mary felt good about moving forward. They did.

In 1998, John passed away and Mary became a widow at 78 years of age. Sometime in early 1999, Mary gets a call from the board. As she tells the story, she’s allegedly told that her documents have to be updated to remove John’s name from the life lease. Mary is all too happy to oblige and signs the documents placed before her with the understanding that the only alterations to her original agreement are the names.

Mary’s most recent statement from the board is dated January 2005 and it shows the “current market value” of her unit being $100,300. Between 1989 and 2005, the average selling price of an east-side condominium has increased by 62%. For some reason, Mary’s unit has only increased by 20%. Further, it seems that some provision in her contract entitles the board to 50% of her equity gain. If true, this reduces her total return to just 10%.

Mary’s daughter is not pleased. She’s particularly troubled by the claim of entitlement to half of Mom’s equity, so she starts digging for paperwork. Low and behold she comes across the original purchase agreement and the updated agreement which was executed in 1999. She’s unable to find any clause which specifically addresses a sharing of the equity, but she notices that the first and second agreements are not the same. Where the initial agreement stated that the selling price was “hereon depending upon the conditions prevailing,” the second agreement has additional wording which states the price is to be determined at the “sole discretion” of the board.

It seems that the board has also contracted themselves with an “irrevocable assignment” to act as her attorney to deal with and make all decisions related to the disposition of the property.

Of course, I’m not a lawyer so I suggested that Mary’s daughter might want to meet with one real soon.

I'm always happy to answer your real estate questions.

Norm Fisher

Royal LePage Vidorra

I did a routine search of today’s MLS® listings at about 4:00 pm. There are two new listings showing up in all of Area 1, which for Saskatoon real estate agents includes all neighbourhoods which are East of Circle Drive East. Both of these new listings are in Briarwood. One is priced at only $248,000; the other at $419,900. This small number of listings comes as no surprise. It seems to be the way it has been lately.

Meantime, the number of potential buyers continues to mount. There are plenty of motivated buyers waiting in the wings for these types of premium homes. One of those buyers is certainly prepared to pay more than anyone else for one of these two homes. At least, that’s pretty much how it works in most cases. The only problem is, both homes are currently sold, pending unknown conditions. At the time I write this blog, neither listing has yet found its way to MLS® Online. The listings will appear there tomorrow, a day late and a dollar short.

Of course, the question running through my mind is, how much money did these sellers miss out on by accepting an offer before most of the market could even get away from work? This, we’ll never know. Perhaps they somehow managed to connect with that buyer who was willing to pay the most, but I doubt it. Why would anyone accept an offer before the market knows their house is for sale? To me, it’s simply mind-boggling. Any thoughts?

Norm Fisher

Royal LePage Vidorra

Most Saskatoon real estate practitioners are keenly aware that home buyers are flocking to the internet to search for Saskatoon homes. Some surveys indicate that as many as 85% of prospective home buyers start their search online. Next to the awesome power of the Multiple Listing Service® to expose a listing to agents, the Internet is now the single most important marketing venue for real estate. Naturally, photographs are an important part of the internet and MLS® marketing plan. Many times, buyers will decide if they’ll visit a house, and agents will decide if they’ll show a property based on the strength of the photos which accompany the listing.

With that in mind, I can’t help but be amazed at the substandard work which agents and sellers seem to be prepared to accept when it comes to photography. If you’ve spent any amount of time looking at homes on the internet, you’re already aware that there are far too many lousy and useless images out there. This afternoon, I spent just thirty minutes on a real estate website and found enough awful photos to prepare a virtual tour titled, “The Unbelievably Bad Real Estate Photography Hall of Fame.” You might check it out, just for fun. I actually found a photo of a living room with an old man apparently sleeping in a recliner. I wish I was kidding, but I’m not.

Good quality photographs are difficult to achieve and it’s very clear that a real estate agent can’t be expected to have professional photography skills. They should however be able to recognize a completely terrible image and keep themselves from posting it where the whole world may see it. Common sense should tell us that some routine tidying up will enhance our images, that proper lighting is essential for good exposures and that we shouldn’t take pictures of rooms that can’t adequately be captured with the equipment we’re using.

I purchased my first digital single-lens reflex camera approximately 18 months ago. Since that time, I’ve invested in a super wide-angle lens and a high-quality flash. I’ve invested hundreds of hours in studying photography and image processing. I’m starting to feel pretty good about the images I’m able to capture.

If you’re thinking of selling your home, here are a few things to keep in mind.

• Ask prospective agents to show you samples of their photographic work and understand that what they show you probably represents their best effort.
• Insist on reviewing images before they are posted to the MLS® or the Internet.
• Demand retakes of images that don’t show your home professionally.
• View my report, “Preparing for a successful photoshoot.”
• Hire me! I will do a fine job of presenting your home to agents and home buyers.

I’m always happy to answer your Saskatoon real estate questions. 

Norm Fisher

Royal LePage Vidorra

There’s a disturbing practice occurring all too often, which is padding the pockets of some unethical agents at the cost of their sellers. If you’re considering selling a home you should know about it and make certain it doesn’t happen to you.

We are currently in a market of low supply and high demand. It doesn’t take an economist to understand that good homes that are well exposed to the market have the potential to draw multiple offers at or above the listed price. If agents and buyers are aware that your home is for sale there’s a pretty good chance that they’ll be lining up to view your property. Of course, that’s good for you! The problem, in my opinion, is that some agents may be making an effort to ensure that buyers working with other agents are unaware that a property has been offered for sale, hoping to get the jump and sell the home themselves. On the surface, they may come off looking like a real go-getter. In fact, such practices are only good for the agent and potentially they could cost you thousands of dollars.

In a recent post titled, “Can’t Find a House? It’s Time to Get Ugly,” I shared a story of an agent who listed a fine little property for $239,900 which sold very quickly for $260,010. I’m sure that this agent probably had a buyer which would have been happy to purchase this home quietly before it actually hit the market. Had she behaved in a sneaky and deceptive manner, she would have brought her own buyer before anyone else knew it was for sale and written an offer herself. In a case like that, the dynamics of the negotiation would have been far different than they actually were. In all likelihood, the buyer would have offered somewhere below the list price and the seller may have been prepared to accept that. It’s very doubtful that the seller would have held out for more than the listed price. However, this agent understood her duty to act in the best interest of her seller and placed the property on the open market as she had promised to do and as a result, the buyer who was prepared to pay the most for the home was made aware of its existence and bought it. Both buyer and seller are pleased with the deal that they struck.

All too often, new listings are appearing on the MLS® with a note which says, “Sorry, this one is conditionally SOLD!” Well, I say, “How proud you are for selling your client’s home before 99% of the market even knew it was for sale.” Not something I’d want to brag about.

There have been many instances lately where homes are sold before the close of business on the day that they’re listed. While I wouldn’t go so far as to call this unethical, I’m not sure that it’s a sound strategy for the seller’s interests. The home is sold and most of the market is still stuck at work. It seems to me that we should at least allow some evening showings before we jump on an offer. Wouldn’t you think?

It’s time that agents came up with some kind of a pre-listing marketing strategy to expose upcoming listings to buyers so that more of them have an opportunity to see and consider the home. I plan to do that over the next couple of days and I will share the details with you when I do. Meantime, if you’re placing your home on the market, ask your agent to submit the listing to the Multiple Listing Service® immediately to ensure that as many buyers as possible know it’s for sale. Try not to be so eager to sell that you accept an offer before most buyers can even see it. Yes, you need to deal with offers in a timely manner, but late tonight is as timely as early today and if you give them a chance to see it, the best buyer for your home will step forward and put their money where their mouth is.

Norm Fisher

Royal LePage Vidorra