Real issues in Real Estate

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<ul><li>1.Issues in Real EstateA Primer on How Municipalities Should Deal with RealtorsTerry LandonBroker of Record, Re/Max Cornwall Realty</li></ul> <p>2. Overview of Presentation A quick overview of OntariosReal Estate Industry The PROs and CONs of using areal estate professional tohandle real estatetransactions How to market municipalTerry LandonChair, RECO Education Committeebusiness parks and vacant Broker of RecordbuildingsRe/Max Cornwall Realty Inc. 3. Ontarios Real Estate Industry As of April 2011, Ontario had 62,964 registrants 36,940 salespersons 10,292 provisional salespeople 11,112 brokers 3,411 brokerages with 1,209 branch offices Since 2002, the number of registrants has increasedby over 45%, and in the past couple of years, thenumber of brokers has increased by 25% A large percentage of salespersons have 2 years orless of experience 4. Ontarios Real Estate Industry The majority ofRegistrantsreal estateBelonging toprofessionalsOrganized(but not all)Real Estate(Boards, OREA, CREA)belong toorganized realestateOtherRegistrants 5. Professional Organizations The Canadian Real Estate Association (CREA) represents its members at the federal level of government acts as a watchdog on national legislation that pertains to the realestate industry CREA owns the MLS trademark and has a proprietary interest inthe REALTOR trademark. Ontario Real Estate Association (OREA) represents 45,000 brokers and salespeople who are members of42 real estate boards develops and publishes standard forms 6. RECO The Real Estate Council of Ontario (RECO) regulates the activity of trading in real estate a self-managed, not-for-profit corporation Responsible for administering the Real Estate and BusinessBrokers Act, 2002 (REBBA 2002) Protects the public interest Encourages professionalism 7. REBBA 2002 Real Estate and Business Brokers Act, 2002 Administered by RECO Ministry of Small Business and Consumer Services Governs the trade of real estate in Ontario Who can sell in Ontario? Advertising Standards Real estate professionals must follow a Code of Ethics Penalty for breaking the rules is severe Loss of registration Public humiliation 8. Representation Buyer Representation Seller Representation Multiple Representation Represents both sides Usually limits on permitted disclosure Must declare &amp; get consent or cant act Customer Representation 9. Commission Commission rates cannot be set A example commission would be 5% Buyers rep usually gets 2.5%, Sellers rep gets 2.5% Leasing commissions usually paid on net rents are similar in rate Fees can also be flat rate or hourly Rate can fluctuate due to a number of factors Economy Prior agreement (negotiation) long time clients Scope of work 10. ICI (Commercial) ICI is a special part of the real estate industry Stands for Industrial, Commercial, Investment ICI Brokers are a breed apart Often higher level of Education Often bigger commissions mean more is at stake Results often takes more time than residential sales Requires a more sophisticated knowledge set Will spend more $$ on marketing Will jealously guard clients Not necessarily members of organized real estate Good ones often have big egos 11. Big Town ICI Brokers More experienced, more connected May not be as committed to yourcommunity as you might think Distance can cause problems mayarise in arranging or attendingshowings &amp; access to building Less familiar with local rules &amp; regs Usually dont know the local players Foe? Likely not. Friend? Likely not. 12. Small Town ICI Brokers Usually more committed to theproperty &amp; community Likely more friend than foe Less experienced, less connected Easy to arrange personal showing &amp;direct access to the building Usually more local knowledgeZoning, Official Plans More likely to know the local players(EDOs, CBOs, politicians, lenders,surveyors, engineers, etc.) 13. Pros and Cons of Hiring Real Estate Broker Should the municipality hire a real estateprofessional to handle real estate transactions? ProsCons Property is listed on MLS Cost Marketing expertise Need to manage buyers realtor Save staff time and resources Less control of prospects Knowledgeable Professional Local politics Arms length negotiations Insured (Errors/Omissions) Best possible price 14. Consultants Experienced real estate agents can be hired asconsultants, to perform services outside of thenormal real estate transaction Appraisals/Opinions of Value Market Studies Prepare, Review and Present Offers Assist with Land-Use Planning Zoning By-Law Review Official Plan Review 15. Real Estate Asset Management What the benefits of developing a municipal realestate asset management plan? Inventory of public lands Forecast for future needs Landfill, Snowdump Recreation Road Widening Employment lands Should the municipality keep land deemed tosurplus? 16. Employment Lands How much employment lands does a municipalityneed? Different sectors have different needs Manufacturing vs Logistics vs Service/Light Industrial Should the land be serviced? Water/Sewer Utilities / Road What are your competitors doing? Cost Supply Development Charges 17. Case Study : Cornwall Over 350 acres sold in less than 5 years Shoppers Drug Mart DC: 70 acres Boundary Properties DC: 120 acres Target DC : 160 acres Many smaller sites in support of these DCs Two other competing locations for Target Both involved situations that required land assembly Cornwall had all the land under one owner, the ability andwillingness to service on the Buyers timelines 18. Marketing Your Business Park What does Investment Ready mean? Services Utilities Zoning Reports Site Plan Control Commercial Parks vs Industrial Parks? Realtor Agreements? Brownfield program? 19. Marketing Vacant Buildings Basic Information to Gather Area, Ceiling Height, Dock-level doors, Service Capacities Photos, including aerials/GIS mapping Zoning, Site Plans Assessing the Property Do you need a property value assessment? Environmental Issues Obsolescence Your Role, the Brokers role Site tours Joint Venture Marketing 20. Marketing Opportunities Offline Brochures Classified Ads Direct Mail Signage Online Broker website, MLS Municipality Website Ontario East website Social media 21. Brochures Investors stillask for hardcopies Good fortrade shows Easy to makeavailableonline asPDFs 22. Video Brochures Videos areeasier toproduce thanever before Short 2 minutevirtual buildingtour toshowcase itsfeatures YouTubeallows you tohost the videosfor free 23. Online Listings Most cost effective way to reach investors Still some challenges with regards to databaseintegration Realtor WebsiteLet thewww.remax-cornwall.cainvestor choose whatCREA Website website they www.icx.ca want to visit, ListingsOntario Websitejust makewww.InvestinOntario.co m sure that alldata isMunicipal Website available (if available) 24. Summary Using the skills and experience ofa real estate professional can bebeneficial Often both parties have thesimilar goals : to see the propertychange hands and to see newdevelopment Often the realtor is the first pointof contact with the investor takeadvantage of that! 25. Terry Landon Terry Landon and Jamie Cameron founded RE/MAX Cornwall Realty Inc. in 1982, andtogether they helped the office to become the preeminent real estate brokerage in thearea. Terry specializes in commercial real estate. Terry is an advocate for the City of Cornwall and region, and has played a key role in severaleconomic development initiatives. He helped to create Team Cornwall, and is currently thePresident of the Cornwall and Area Chamber of Commerce. Terry has also played a key role in the evolution of real estate practices. He is a two termPast President of the Cornwall and District Real Estate Board, and was a founding Directorof the Real Estate Council of Ontario. He was elected chair of the Real Estate Council in2004/2005. He continues to work with RECO and presently is the Chair of the RegistrarsEducation Committee. Mobile: 613-551-102 Office: 613-938-8100 E-mail: landon@remax-cornwall.ca </p>

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