The First Step In Selling e your Home o e rat,c y r ta P, M C lp e H R g in li i M p or inc s a d a an Delivering The Highest Level Of Service Day and Night 6 c o l Re ate a sc s cro 8 19
Contents 1 Letter to future satisfied clients 2 4 10 11 12 13 Market overview Important qualities to look for when interviewing Realtors The biggest mistake a home owner can make Martels Real Estate highlights Marketing synergy Plan of action Common concerns
1 Dear Future Satisfied Clients, Martels Real Estate is focused on achieving success with those who matter most: our clients. We embrace what is most important to you; being effective and efficient, earning you the most amount of money, offering the highest level of service and fulfilling your individual needs. With thousands of Realtors in the Ottawa area picking the right representation can be tricky. It could also mean the difference between obtaining the right value for you home in a hassle free way or many...many months of headache with disappointing results. As professionals we need to be accountable for our actions and the services we provide, not only during the sale but throughout the closing and in the future. Your best interest must be protected at all times. That is why we are delivering an innovative approach focused on long term client care services. With our for sale sign on your lawn, you will know from day one that we are committed to making you our clients for life. Successfully moving forward as part of the top 1% of realtors in Ottawa In our most recent survey, 97% of our clients would use Martels Real Estate again Lucie Martel 99.18% Managing Director and Owner Is how much we get you on average. For a $350,000 home this means $7,245 more in your pocket! Our Relocation focus gives you access to buyers from all over North America and around the World
2 Market Overview 2010 2011 2012 2013F 2014F Resale Market MLS Sales 14586 14551 14497 14000 14140 MLS New Listings 25061 25949 28332 29750 29000 MLS Active Listings 50804 64177 70126 72600 71000 MLS Average Price ($) 328439 344791 352610 356000 358000 Rental Market October Vacancy Rate 1.6% 1.4% 2.5% 3.2% 3.0% New Home Market Total Starts 6446 5794 6026 6300 5350 Economic Overview Employment Growth 3.1% 0.6% 3.3% -2.0% 1.9% Unemployment Rate 6.5% 5.6% 6.2% 6.4% 6.2% Net Migration 10035 7796 7800 8500 9000 *Canada Mortgage and Housing Corporation (fall 2013), Forecast Summary Ottawa CMA Fall 2013, Housing Market Outlook: Ottawa, p.7 Understanding the different factors that influence the Real Estate Resale Market is very important while choosing a method and strategy to sell you home: Renting Observations: The rental market vacancy rate has a slightly increasing trend over the past few years. This can be caused by a decline in population which would mean a lower demand for housing, however, the population of the Ottawa area has been growing. We can assume that this trend is caused by a larger amount of people choosing to own instead of renting. Employment growth Observations: We can see a positive trend between the increase in resale and the growth in employment. The stronger the employment growth, the stronger the growth in resales. CMHC forecasts a growth of 3.9% this year which would be the strongest growth in the past last 5 years. Unemployment Rate Observations: Has been relatively stable over the past years and thus, no direct trend with the resale market can be observed.
3 Migration Observations: No trend can be observed with the migration to the Ottawa area and the resale market. New homes and the resale market 4.50% -0.50% -5.50% -10.50% -15.50% New Home Building Projects Vs Resales 4.00% 4.55% -0.24% -0.37% 1.00% 2011 2012 2013F 2014F -3.43% -10.11% -15.08% New Home Building Projects % Change Resale Sales % Change Observations: The increase in the total amount of new housing starts is negatively correlated with the increase in the total amount of housing resales. This trend shows that the total amount of new constructions projects is reduced (single-detached, semidetached, row/townhouse and apartments). Buyers turn their focus to buying resale homes, thus, increasing the chances for you to sell your home. Fierce market competition: Choosing The Right Realtor Has Never Been This Important 2010 2011 2012 2013F 2014F Resale Market % Sold vs Active Listings 29% 23% 21% 19% 20% *Canada Mortgage and Housing Corporation (fall 2013), Forecast Summary Ottawa CMA Fall 2013, Housing Market Outlook: Ottawa, p.7 Observations: This is possibly the most important observation that can be made regarding the Housing Market Outlook published by CMHC. Less than a quarter of homes that are listed on the market actually sell. This means that the real estate market is becoming more and more competitive. Buyers are increasingly selective and have access to a large inventory of homes. In order for your home to stand out from the others, you must find the Realtor that will be able to attractively market your home, maximize its exposure to buyers and use innovative/aggressive techniques to make sure it will not be overlooked. Limited service representation, basic MLS exposure without representation and for sale by owner alternatives are increasingly risky options that can waste your valuable time and money.
4 Important Qualities To Look For While Interviewing Realtors Honesty And Integrity: Presenting an Accurate Valuation of Your Home Residential Real Estate prices are governed by the laws of supply and demand. Ultimately, the value of your home is set by the market and what buyers are willing to pay for it. Pricing strategies must be designed to offer a quality product that cannot be reproduced or found elsewhere with a larger incentive for the buyer. With that in mind: Would you rather work with the Realtor who can present a knowledgeable valuation of your home and the market or the one who gives you the price you wish to hear in order to secure your listing? On average a home will loose approximately 5% of its value if it is on the market for 120 days or more. Buyers develop a n e g a t i v e p r e j u d i c e regarding the home. Accurate Price Join the ~20% of home owner that successfully sell Will attract a lot of buyers, obtaining more showings and potential offers Unrealistic Price Be among the ~80% of unsuccessful home sellers Better priced comparable homes will be showed before yours which means less showings and potential offers A quick and efficient sale The listing will be dragged on; lose value and will require REDUCTIONS You will know approximately how much you will net in your pockets Easy and simple process that will leave you satisfied and happy You will obtain BELOW market value for your home and lose money Complicated process with headaches and disappointments
5 Strong Negotiator : Will a discount Realtor be able to negotiate the best price for you? A lower commission will not guarantee you will get more money in your pockets once your home is sold. The Martels track record shows that we will get you 2.07% more on the sale of your home. 99.18% Going for a lower commission can actually work against your best interest. More often than not, the discount will reduce the budget of the brokerages or Realtor which will cut the funds available for marketing and force them to also cut on the quality of services they deliver. This can be very costly to you and you may end up losing you more than the 1 to 3% you saved on the commission. Furthermore, how can you expect someone to negotiate the highest amount possible for your home if they cannot negotiate their own salary? If offering services at a discount rate is the only way a Realtor or a brokerage can be competitive in this market then their services must be average or below average to start with. Since they cannot differentiate themselves from the competition how will they be able to make your home stand out from all the others and negotiate you the best price? Is how much we get you on average. For a $350,000 home this means $7,245 more in your pocket!
6 The table below gives a perspective on the importance of strategic pricing paired with quality service (full representation). After all, everyone wants to be able to pick their best option; the one that will net them the most in their pockets at the end of the day: Un-realistic pricing & better commission rate, is it really worth it in the long run? *for a home of $350,000 (average price) Overpromising Realtor Average Realtor Martels Realtor Price at which they will list the home $ 360,000.00 $ 350,000.00 $ 350,000.00 Reductions Your home loses value on the market overtime which increases the amount of reductions $ 20,000.00 $ - $ - Carrying costs of a home during sale $ 340,000.00 $ 350,000.00 $ 350,000.00 Days on market (Average is 51*) 51* 51* 31 Property Taxes $4,592.12 per year (2013)** $ 641.64 $ 641.64 $ 390.02 Average Yearly Maintenance costs $1000 per year $ 139.73 $ 139.73 $ 84.93 $ 781.36 $ 781.36 $ 474.95 Negotiations Average sale to list price ratio (average is 97%*) 97.11%* 97.11%* 99.18% Gross amount obtained from the sale $ 330,174.00 $ 339,885.00 $ 347,130.00 Your Bottom Line Commission Charge For arguments sake we will assume one of other Realtor discounts his/her, the other uses 5% commission and the Martels use the market average 4.00% 5.00% 5.25% Commission Cost $ (13,206.96) $ (16,994.25) $ (18,224.33) Carrying costs during sale $ (781.36) $ (781.36) $ (474.95) Earning after gross commission and carrying costs $ 316,185.68 $ 322,109.39 $ 328,430.73 Additional amount you could have obtained with The Martels $ 12,245.05 $ 6,321.34 *Average data has been obtained through the largest independent provider of real estate statistics in North America based on the MLS system. **City of Ottawa, Property Tax Estimator, consulted March 2014
7 Efficient : Working With a Driven Team In today s competitive marketplace, a professional approach is required to deliver a great service and help you in achieving your goals. Solo Realtors must be able to divide their limited time; provide you with the proper service, develop and upkeep the marketing for your home, prospect for potential buyers, show and attempt to sell your home, do all the administrative paperwork and finally do this for multiple homes at a time while juggling buyers irrelevant to you. A marketing professional will manage and promote all advertisement for your home to increase exposure A customer service representative and administrative staff will work with the Realtor to make sure your needs are attended 24/7 In-office sales representatives will aggressively find potential buyers and arrange showings for your home. A team leader and owner that will provide funds to properly cover marketing related costs and provide a priceless experience Your Realtor will be able to focus and make sure you are protected throughout your transaction and in the future Your Realtor will be able to focus all their attention on getting your home sold! Lawyers, doctors, home builders and many more professionals work with the help of a team for good reasons: Marketing Prospecting Buyers Client care services Admin Work A team backed by over 30 years of experience in Real Estate
8 Unbiased (Impartial) : Working with a friend or family member, will it jeopardize your relationship? We certainly understand the temptation and the appeal of giving business to a friend or relative, especially if that person offers to cut their commission. However, they will be emotionally and personally involved in the transactions because of their relationship with you. Emotions can get in the way of logical thinking and sadly, this might also jeopardize your relationship if they cannot get the job done or under-deliver on their promises. Someone who has no incentive except a professional one will stay impartial at all times, stay focused and use reason accompanied with critical thinking to get what's best for you. Accountability : Living Up To Our Promises Beware of false promises and fake smiles. It is important that your Realtor has a proven track record and standards to which you can hold them accountable to. If not, they can be the nicest person in the world and make wonderful promises, but once they have secured your listing they wont get the job done. We see the value of giving you control and peace of mind by providing guarantees to which you can hold us accountable. Below is a list of our guarantees which will protect you where others cannot: Communication Guarantee: You will receive a bi-weekly update email and a phone call from our team on the progress of the sale of your home. Your phone calls to our office will be returned within 24 hours. GUARANTEE: if we fail to update you weekly or fail to return your call within 24 hours, we will deduct $100.00 from the commission when your home is sold. Honest Promises Guarantee: Guarantee#1 is a good example. We are not going to wildly promise you the moon and stars to get your business. We tell you what we can and will do, exactly how we operate, as well as what we will not do, up-front, in clear language. When we list your home, we give you a detailed Advertising Schedule in writing and a detailed feature sheet for your review and approval. GUARANTEE: if at any time, we fail to honor that schedule, we will pay you a $100.00 Penalty on closing.
9 Reality-Based Selling Price Range: We get you top dollar. Our track record and statistics prove it. But we will never play the bait 'n switch game of promising to get you a wholly unrealistic price just to get your listing, then wearing you down with low ball offers and large reductions. Unfortunately, this does go on in the real estate industry! GUARANTEE: for every $5,000.00 we sell your home for, below our recommended list price, we will pay you $250.00 up to a maximum of $750.00 on closing. Reality Based Timetable: We implement a complete marketing program to sell your home. You know in advance what will occur step-by-step, and will receive weekly marketing updates. And we set a target range for the timing of the successful sale of your home. In many cases, we will sell your home faster. GUARANTEE: if we fail to present an offer on your home within 59 days, we will deduct $100.00 from our commission for each week after the 59 days to a maximum of $500.00, payable on closing. 100% Satisfaction Guarantee: Entering into a listing agreement with a Realtor can be risky business. We are so confident that our real estate system will work for you, that we guarantee you the right to Cancel our listing agreement at any time prior to accepting an offer to purchase your home, with no penalties or obligation, if you feel our services don t live up to our promise. GUARANTEE: if we fail to deliver the highest level service, we will cancel our listing contract at any time. Qualified Buyers Guarantee: Nothing inconveniences a seller more than being kicked out of their home during the showing process or, worse, accepting an offer on their home only to discover, weeks later, that the buyer cannot secure their home loan. The resulting loss of time and the distress a seller feels can be a crushing economic and emotional blow. GUARANTEE: if we ever show your home to one of our buyer who later tells us that "they can't afford your home", we will pay you $250.00 at closing. *These guarantees are based on your recommended list price. To be discuss with your Sale Representative at the time of listing. Available in platinum plan
10 The biggest mistake a home owner can make is to blindly interview Reatlors. By blindly, we mean not having pre-determined questions and criteria on which to judge and compare all the different options. You are investing time into making this decision, a decision that is one of the most important financial events of your life. That decision should be based on reason and logic. When we meet with potential clients we are applying for a job; representing you for the sale of your home. Like any job interview process there are some important things you should look at in order to find the right fit. 1. Create the job description. Determine exactly what it is you want from your Realtor in order to achieve your goal/bottom line 2. Find possible Realtors and eliminate those who doesn't possess the right qualifications 3. Create a list of questions and standards to interview your possible options 4. Interview and set your expectations 5. Evaluate and choose the best fit based on the standards and questions you have established Here is a list of questions most home owners find useful in order to discover the Realtor who will deliver a quality service and obtain as much money as possible for their home: What makes you different? Why should I list my home with you? Unique marketing plan, programs offered and guarantees provided Any commission discounts? Are they contingent on something? (Ex: if I double end your property is it the Realtor s brokerage or just themselves, if so will they be the one showing your home?) What is your personal track record and reputation in the market place? A lot of companies boast about being #1, but in terms of what? Is the Realtor you are meeting only contributing a couple sales per year in his brokerage? What is your marketing plan for my home and what kind of service will I be getting? Is this Realtor creating the material for the advertisement? Is this your full time job? On average, how much of the listing price do you get for your clients? How long does it take you to sell the home? How many buyers are you currently working with? How knowledgeable are you with the market? Do you only specialize in one region? Can you find buyers from all over the city and beyond? What is your philosophy on listing low or price reduction to sell fast? Pricing too low or too high can be harmful. Accurate pricing will give you an edge What if you don't deliver on your promise? Can I cancel my listing contract? Do you have client testimonials I could refer to? Can I contact any of your past clients?
Martels Real Estate Highlights 11 Top 1% Real Estate team for nearly 30 years Obtain on average 99.18% of asking price Get an average of 2.07% MORE MONEY for your home Specialize in relocation to have access to buyer throughout North America Fully bilingual team to serve both official languages Involved in transactions in ALL of Ottawa and surrounding areas not just the local area 97% of our clients would use Martels Real Estate again. (in our most recent survey) Guarantee programs to attract 20% more Buyers to your home Outstanding client care services designed to protect you at all time and after the keys are exchanged Top marketers who outspend the competition for maximum advertising exposure to reach more Buyers
12 Marketing Synergy: Aggressive Strategies in all Important Niches Realtors : -Multiple Listing Service (MLS ) -Feature Sheets Optimization -International & Exclusive Network aof Top Realtors -Buyer Profile System + Large adatabase of clients Internet: -75 Different Websites -The Martels bilingual websites -Various Others -Unique offers for buyers -Social Media -Virtual Tours Newspaper/Publication, Friends, Builders, Sellers, etc -Just listed,/just Sold Postcards -Newspaper -Homes & Lands Magazine (first page) -Classified Adds -Relocation ads for Military, RCMP, acorporate Yard Sign -Attractive For Sale Sign -Buy This House We Will Buy Yours -Guaranteed Sale -Instant Messaging (SMS)
13 Common Concerns #1 Will I be a priority with The Martels? You may think you ll be nothing but a number given the amount of transactions we have every year. You may even think a less successful realtor will be able to give you more attention. Having said that, there is a difference between More Attention and Best Results. We will deliver an outstanding and extremely responsive client experience. Our solid team structure will support your Martels Realtor to deliver a personalized approach and make you a client for life. #2 As one of the best brokerages in Ottawa, does The Martels track record extend to all its Realtors? All our Realtors have been hand picked and trained by the Martels in order to absorb our 30 years of experience in real estate. On top of that, they received training from the Top Realtors in North America. Their track record speaks for itself, the Martels Realtors all sell over 50 homes a year while working with dozens of buyers. Ask them about their performance as it exceeds that of 99% of all other realtors in the Ottawa area. Finally, you may be working directly with only one of our Realtors but the whole Martels team is working together on selling your home with its talent and dedication to client satisfaction. #3 Isn't what your offering basically the same thing as other realtors? No. After reviewing all our information and taking the time to meet with one of our Realtors you will see the difference in the quality of services delivered/available to you. Furthermore, our negotiation strategies and advertisement has been tested for success. We attract, and have engineered our entire approach to selling homes based on serving clients who have a profound preference for quality, and would hire the most respectful, qualified and capable professional to handle their affairs. #4 Does all of this really matter? We have a very nice home, it will sell easily... Very frankly, it may be true that your home can sell easily. However, your Realtor s: track record, support system, marketing plan, accountability and diligence in keeping you protected will be the difference in selling your home and getting your home sold RIGHT. You want your home sold efficiently, without confusion or unnecessary open houses or viewings that disrupt your life. We will get you just that, a smooth and flawless transaction like we have done for nearly 4,000 satisfied clients since our inception.
Helping RCMP, Military, Corporate Relocate across Canada since 1986 Protecting Your Best Interest In Real Estate