Cost savings or.... Investment Freeze?

Too often we cut costs in our real estate sales business with out an investment analysis of the implications of what we are doing. The consequences can be minimal or catastrophic.
What is an investment? It is money, effort or time that is spent to receive a return on that investment. The simplest investment is a monetary investment in a bank account. Deposit a dollar in a bank account today and you will get interest, low interest, agreed, but you will get a return. If you want a greater return you usually must take on a larger risk or greater sacrifice. A Guaranteed Investment Certificate will pay a greater return over a longer period of time. Guaranteed returns come from the sacrifice of time of the investment period. A greater risk again would be the purchase of a stock or bond in a business or company. Greater return from more risk in the investment. We all know the consequences of risk. Without risk our returns would be paltry!
We also understand that in an efficient marketplace we need to hold our costs to as low as possible. The profit equation is simple, the amount of profit from any venture is determined by the gross revenues produced minus and expenses. So when we decrease our expenses our profit will go up! Or will it?
So many times I see mistakes made in determining what are good costs and bad costs, expenses that should be maintained simply to keep your revenue streams increasing rather than holding neutral or even decreasing.
For instance, recently a sales associate in my office decided they should give up their office at our branch as the cost to have an office was just too great to bear in their opinion. This person considered the office cost an expense. My contention is for that particular agent the cost of an office was an investment. It was truly an investment in their business and time. The office allowed them to organize their business. It was a focal point for them to be in  business. It allowed them to concentrate and stay in connection with the Brokerage as a whole. They did not consider objectively the true returns that this investment in an office gave them.My bet is that for this particular agent their business will stagnate as they attempt to stay focused in whatever new office organisation they prepare.
Also of concern is  the impact a change like this will make in the personal life of a sales associate. I like to go to work to be at work. There needs to be a break from your personal life and your business life to allow sanity to prevail. So for me, an office allows this barrier to exist. I would argue that the cost of an office is indeed an investment in you, not a cost to be reduced.
Some costs are necessary for success and this is just one. I just as easily could have written this article on advertisement, marketing, personal assistants, professional development, personal fitness training, equipment, etc. Office costs are just an example of a necessary evil that our business insists on for success.
Sometimes we just need to prioritize for the better of our business and our lives.We need to invest in our business and ourselves.

Homeowner - Seller Report... From Dominec Mirabelli, Morcan Financial Inc.

So you’re selling your home...but for how much? What you need to know about a Comparative Market Analysis?
As part of the listing process, many agents prepare a Comparative Market Analysis (CMA) to help establish a realistic price range for your home. A CMA is basically a written report on your home that contains property profiles of homes in the area which compare closely to yours. The report will often include information on homes currently listed for sale, recently sold properties and properties which did not sell during the listing period. Certain amenities, additions and/or improvements in the homes are also considered.
The key to remember about a CMA is that if properly researched, it will give you the hard numbers necessary to reach a realistic pricing decision. The price range you get from an agent using a CMA may well be lower than what you get from agents who don't use one. But when a CMA is used to determine the asking price of a home, the final sale price is usually closer to the CMA price, than a price determined without the use of a CMA. This can be an important benefit because a properly priced home will usually sell faster.
In addition, once a CMA has been done and provided you with the current selling prices in your neighbourhood and a price range for your listing, it can also be used in conjunction with an estimate of the selling costs to give you a reasonably accurate estimate of the remaining proceeds. This will help provide you with some comfort and peace of mind as you look toward investing in your new home.
If you have any further questions about CMA’s please feel free to call or email me directly for more information.
Readers can also order a free copy of any of our Special Seller Reports on “Finding the Right Sellers Agent”, “Seller Mistakes”, “Seller Open Houses”, or “Selling Tips”.

Domenic Mirabelli
Licence #M10000364
Morcan Financial Inc.
(C) 416.303.4480
dmirabelli@morcan.ca
http://www.thescooponmortgages.com/
http://thescooponmortgages.blogspot.com/

RSS Feed Is A Valuable Tool For Your Blog

RSS stands for "real simple syndication" or "rich site syndication" or "RDF site summary". This is a file created by the use of XML and contains an aggregate of your blog content all in one place.As your blog is updates the RSS is updated creating an up to date resource of your blog's content.
An RSS feed is useful as it is a standardized format that all software programs, devices and websites can read and access no matter what platform you are on. As well it allows subscriptions to your blog so people can be informed of any new blog entries you make. This creates an easy method for people to access your most recent content without having to go to your blog to find out when and what you have created. It allows you to promote your blog and to keep in touch with your followers.

An aggregate or feed reader allows your followers to interface with your RSS feed. Headlines of your blog are featured in the RSS similar t o an email. You simply click on the headline to get to the blog post.
If you use Blogger or WordPress your RSS feed is automatically created for you and updated as you add content. It is up to you to promote your RSS feed to gain more readers. You should include the RSS feed on your blog for readers to copy. An RSS feed widget can be easily added to your blog interface. You can also add this to your email signature, website and anywhere you have an Internet presence.

RE/MAX Professionals rolls out new web site

Check out the new look web site from MCS that RE/MAX Professionals rolled out today. A new look for a new year!

Home prices up 0.3% in December

Teranet – National Bank National Composite House Price Index™

Canadian home prices in December were up 0.3% from the previous month, according to the Teranet-National Bank National Composite House Price Index™. The advance followed three consecutive monthly declines that had ended an unbroken run of 16 increases. December prices were up from the previous month in five of the six metropolitan markets surveyed. A 0.1% rise in the Calgary market was the first gain in five months. The rise was 0.5% in Vancouver and Montreal, 0.2% in Toronto. Halifax prices jumped 3.6%. We note that the composite index would have advanced 0.3% even if Halifax had been flat. The 0.4% monthly decline of Ottawa prices was the fourth in a row.

Historical Index Values   -   Toronto

 

 

RE/MAX CELEBRATES 38 YEARS

DENVER, CO – One of the largest real estate franchises in the world is celebrating its 38th anniversary and a year of significant success despite a challenging housing market. This month, RE/MAX and its Co-Founders, Dave and Gail Liniger, celebrate a year of remarkable achievements and Founder’s Day, the day RE/MAX was created.


In 2010, RE/MAX worldwide franchise sales were up nearly 30% from the previous year and RE/MAX agents were ranked the most productive in the industry by two notable industry surveys.

“It’s been an exhilarating ride, through the ups and downs of every type of market imaginable,” said RE/MAX Chairman Dave Liniger who pioneered the maximum commission concept when he opened his first RE/MAX office in 1973, forever changing the face of real estate. “We’ve accomplished a lot of things in 38 years but by far our greatest success is having an impassioned network of the most professional agents in the business helping buyers and sellers around the world. They’re making a difference every day and I couldn’t be more proud of their accomplishments.”

RE/MAX is now in more than 80 countries around the world, a presence greater than any of its competitors, and building on four decades of tradition, the global network continues to set the pace for the real estateindustry. Most notably, Liniger and RE/MAX CEO Margaret Kelly have been instrumental in shaping the housing recovery and government policies. Kelly serves on the Federal Reserve Board and Liniger was named one of BusinessWeek Magazine’s 50 Most Powerful People in Real Estate 2010. And both RE/MAX executives were named to Inman News’ 2010 Top 100 Most Influential Real Estate Leaders list.

RE/MAX has logged a number of milestones in 2010:

• Worldwide franchise sales were up nearly 30% in 2010 as RE/MAX expanded internationally into eight new countries including Bolivia, Tunisia, Dominica and Suriname.

• Two national surveys ranked top-performing RE/MAX agents above all other national franchise agents in average transaction sides. In the 2010 REAL Trends 500 survey,

RE/MAX agents averaged an impressive 14.4 transaction sides, 46% higher than the next closest competitor. The 2010 RISMedia Power Broker Report put RE/MAX agents at an average of 15.1 transaction sides, 26% higher than the next closest competitor.

• Reader’s Digest Canada named RE/MAX the Most Trusted Brand in Real Estate.

• RE/MAX University (RU), the propriety network for RE/MAX agent training and education, launched a new On-Demand Platform, making its award-winning training available 24/7 online or through the digital media player, Roku. RE/MAX also launched the RE/MAX University Mobile Application to give agents access to training on the go.

• RE/MAX continues to lead the industry in the number of agents trained in short sales with the most Certified Distress Property Experts (CDPEs).

• RE/MAX became one of three companies to pass $100M in donations to Children’s Miracle Network Hospitals and RE/MAX formally launched Home for the Cure in partnership with Susan G. Komen for the Cure.®

• Continuing its pledge to help U.S. servicemen and women, RE/MAX was named Top Ten Military Spouse-Friendly Employer by Military Spouse Magazine for the fourth year in

row and the Top Military-Friendly Employer by G.I. Jobs magazine for the second consecutive year.

• RE/MAX launched the RE/MAX YouTube Brand Channel that features hundreds of RE/MAX videos and a geo-targeting map for consumers searching for videos of listed properties, local RE/MAX agents and offices and community videos.

Each office independently owned and operated. 110234

They have it all wrong, The problem is not our debt, It is our taxes!

The press has been harping of late,  along with the national governing party of our day, of how our personal debt is rising at a dramatic rate. They are absolutely correct! The debt level of the average Canadian is increasing. It does not bode well for an economy based on consumerism.
But is the base level of debt the root cause of this problem? Is there a deeper concern we should address? Are there a couple of factors, over looked purposefully by those in the know that could, if addressed by the Canadian public, change the game and eliminate this problem?
The Canadian consumer is in siege. Attacked by a silent, unmentioned inflation that has put the average Canadian in the unenviable position of being short on cash each month. Our wages are virtually frozen to less than a 2% increase yearly. The inflation rate, posted by economists, followed by governments, and massaged by statisticians has been in a healthy range of 1.5% to 3.0% for over a decade. It is the measure of health of our economy that most specialists quote when discussing the stability of our economy.
Forgive my naivete here, but I find my personal inflation rate much greater that this highly quoted, much aligned statistic. My gas price, for instance has risen from $0.70+ per litre in 2009 to almost $1.20 today. Now lets see, very simple mathematics would suggest this is much greater than the 2.5% inflation we have today. It appears that this is more like a .50/.70 increase over two years, or 80% per year! That seems a little greater that 2%????
Let's look at our utility bill. Due to the close correlation with oil and natural gas, our electrical bill has sky rocketed as well. Not only has the bill risen dramatically, but government run utility corporations now bill by the hour of use. Do not forget the debt retirement fee and the delivery fee. Again, large increases that we are totally unable to sustain.
Nasty day-electrical-use consumers get charged more than those who use electricity at night! Great opportunity for savings by a consumer says the provincial government who is selling this to us as a "Green" initiative. I say this is simply another inflationary attempt to get our natural recourse called "cash". The only "Green" initiative is to get our "Green" money.
Commodity food prices are rising at an alarming rate especially in countries which have become more developed. These new consumers are devouring our commodities as they develop their economies. They want the same things we already have. No question they deserve a better life style. That I applaud. The problem is that in a world community with limited resources, prices are bound to rise on commodities we all want. If we review wheat and corn prices today, they are at two plus times the same level of 2008. Thus the next item to rise in price will be food.
Let us not forget the largest consumer cash grab, the HST. On top of many commodities, services and other consumables we have had an 8% tax increase.
Pinched in the middle is.....me.....you....and all of the other so called consumers with little control and much to loose.
So, are consumers borrowing more? Yes! Why? Just to live! Just to compete with others for the same resources.