Can housing affordability be restored? Is it just a matter of a few interest rate cuts and transit-oriented development? Reducing housing costs involves more than simply tweaking interest rates — it calls for a multifaceted approach that reflects the complexity of the problem. 

Lowering housing costs depends on several critical factors: the impact of government policies on the cost of homeownership, the necessity for community-focused strategies in new developments, the crucial role of collaborations between government and the private sector in enhancing quality of life indicators like housing accessibility and the embracing of proptech (property technology) advancements and data-driven decision making in real estate. 

Government participation in strengthening Canadian communities 

Developers want to create vibrant communities across Canada and support the needs of a growing national population. This is particularly relevant in Canada’s key metropolitan regions — Vancouver, Montreal and Toronto — as they receive the bulk of newcomers in the country.

By collaborating with developers to lower development and construction costs, municipalities and regional districts in British Columbia can significantly boost the financial viability of projects for developers. This strategy can open the door to new opportunities for building vibrant communities outside metropolitan areas where land is more readily available, while also stimulating growth in urban neighbourhoods that have seen limited changes.

The difficulty in managing costs can be seen in Vancouver’s 15-month delay in obtaining permits, which can substantially increase developers’ costs. This not only raises interest on project financing as funds remain idle but it also allows inflation to drive up material and labour costs. Additionally, this extended waiting period often leads to resource misallocation, potentially resulting in penalties for rescheduling construction crews and equipment. These disruptions can have a ripple effect, impacting broader financial plans and cash flow management.

Government policy is another crucial ingredient, as zoning regulations, building codes and taxation can significantly influence the availability and cost of housing. Policymakers must work closely with industry stakeholders to foster an environment that promotes sustainable growth and affordability.

Examining the impact of the new 30-year mortgage rule

However, policy for the sake of policy is not the answer. Take the new 30-year mortgage rule that the federal government introduced for first-time buyers. While this can increase the borrowing power of first-time buyers, the reality is that this will not impact the vast majority of Canadians who need relief when it comes to buying a home. Meanwhile, it does serve as an effective political soundbite. 

In larger markets like Vancouver and Toronto, a 30-year mortgage stretches payments over three decades, leading to higher interest costs for homebuyers in the long run despite immediate payment relief.

We must engage with local and provincial governments to ensure that both homeowners and developers are actively involved in decision-making processes.

Notably, developers in the United States have an easier time accessing information, permits and data. For example, in Seattle, developers who have applied for a development permit can obtain the permit in a minimum of 21 days. In contrast, in Canadian cities like Vancouver, permits are obtained within an average of 15.2 months. Our current high borrowing costs and extensive time spent waiting for permits ultimately get passed down to homebuyers.

Embracing proptech advancements alongside new policies 

Government policy alone won’t move the needle when it comes to helping first-time buyers get into their dream homes. But new policies combined with technology and innovation have the power to revolutionize the real estate industry, offering new ways to reduce costs and enhance efficiency. 

Proptech advancements, such as virtual reality tours and AI-driven property management systems, streamline operations and improve customer experiences. This goes hand in hand with innovations to speed up the approval process and grant building permits at the municipal and provincial levels. 

These technologies reduce the time and cost associated with buying, selling and managing properties. Additionally, the use of data and analytics allows for more informed decision-making, helping developers and policymakers identify emerging trends. 

Leveraging these technologies, alongside government programs and incentives designed to retain engineering and tech talent within Canada, will position us as leaders in innovation. This strategic approach will enable us to break new ground in the realm of development and affordable housing.

Meeting housing needs and strengthening Canada’s future 

Addressing the high cost of development and homeownership in Canada requires more than just lower interest rates. Local governments need to foster public-private partnerships, reassess zoning laws and incentivize affordable housing development. This goes along with embracing technological innovations that can enhance transparency and efficiency, while a proactive approach to managing real assets ensures long-term value and cost-effectiveness.

Governments at all levels should also be exploring strategies to streamline their cost structures, as current systems and processes lag behind the advanced technologies being adopted worldwide.

In addition, succession planning can provide stability and continuity in housing strategies. These measures collectively encourage smarter policymaking and will work to increase affordable housing supply, resulting in stronger Canadian communities.

Realtors, let’s admit it — most houses listed for sale on the market look pretty much the same. Sure, they may come in different sizes, shapes and colours, but the basic layout, design and features often feel like deja vu. 

However, every once in a great while, you may be contacted by someone who wants to sell their truly one-of-a-kind house. This could be a property with a distinct portability feature or a house with an unbelievably low price tag for its sheer size. 

So, if and when you get the chance to sell one of these special homes, do you plan on using your usual sales approach? 

We certainly hope not! Unlike conventional homes, unique properties have a limited buyer pool and distinctive features which means they need a special selling strategy. To guide you through this challenge, we gathered tips from top real estate agents on how to best sell these one-of-a-kind homes. Below are the strategies they shared. 

Tiny houses: Small properties that don’t cost much

A tiny house is what its name implies, a small home usually about 60 to 500 square feet. They’re cost, energy and space-efficient and budget-friendly, too. In fact, prices of some tiny homes in Ontario have recently been as low as $69,000.

Who are the target buyers for this unique property?

• Homebuyers on a budget
• A rent-weary tenant
• Environmentalists and minimalists

What strategies can help sell this one-of-a-kind property?

Emphasize its unique value proposition. As stated, tiny homes are all about affordability and energy efficiency. So, this is what you must focus on during marketing. Here’s an example of how you can highlight the affordability factor of tiny homes to a tenant who is fed up with rent increases.

Let’s suppose you’re selling a tiny home in Toronto — a market where you can get a tiny home for under $100,000. First, show your buyer the market data of how the average asking rent for even a condominium apartment is quite pricey:

Then, point out that it’s not really smart to pay around $2.400 for a condominium apartment in Toronto or even settle for a $2,000 rental in Barrie (as reported for August by rentals.ca). Instead, they could buy the tiny house in Toronto with a 5.0 per cent down payment, pay around $500 monthly on mortgage payments and build their own equity. 

When it comes to the energy-efficiency perk of tiny houses, also highlight it with numbers. For example, you can say that a normal-sized house uses an average of 26-33kW power every day but a tiny home uses just 3-4kW power.

Don’t let compact space be a dealbreaker for buyers. Kamal Pillai, a realtor in Ontario experienced in selling tiny homes, shares, “One main concern that tiny home buyers usually have is limited square footage. Hence, the seller of these houses should try their best to show that the home is thoughtfully designed to maximize every square inch.

They could achieve this by adding space-saving solutions in the home like a fold-out kitchen table or built-in storage. It’s all about making the most of what you have and presenting it in the best light possible.”

Price the home correctly. Unlike traditional homes, you don’t have much historical data to rely on for tiny houses, which makes pricing these properties trickier.

So, set a fair price for the tiny home by calculating the home’s construction costs and the estimated value of its unique features. Also, assess the current demand for tiny homes in the particular neighbourhood to make sure your price aligns with what buyers are willing to pay.

Houseboats: Homes on the water

Yes, houses on the water, also known as houseboats, can be found in the Canadian housing market. In fact, according to some houseboat owners, buying this type of property is one of the best lifestyle choices they have ever made.

A houseboat is a boat designed or modified to be mainly used as a living space rather than for transportation purposes. Some people live on houseboats all year round to enjoy the beautiful views of the water every day while others use them as vacation homes. 

Who are the target buyers for this unique property?

• Nature lovers
• Homebuyers on a budget
• Real estate investors 

What strategies can help sell this one-of-a-kind property?

Give the houseboat a clean and charming look. First impressions matter, even when selling a houseboat. So, advise the seller of the boat to deep-clean every nook and cranny of their houseboat before opening its door to buyers.

Pay extra attention to the kitchen and bathrooms, as they often leave the strongest impression. Also, if saltwater has caused rusty metal hulls in the boat, give it a fresh coat of paint. 

Make sure the houseboat has no severe safety issues. Apart from fixing the aesthetic issues in the houseboat, make sure the houseboat doesn’t have any major safety problems.

To do this, hire an expert marine surveyor who can assess the houseboat’s overall condition including the hull, engine, electrical systems and plumbing. You must also ask the seller if all necessary permits, registrations and insurance documents of the houseboat are up-to-date.

Pick the best time to put the houseboat on the market. The prime selling season for houseboats in Canada is usually from late May to early October.

This is when the weather starts to get warmer in Canada, and people are most interested in spending time on the water. So, showcasing the property during peak boating season lets potential buyers experience the houseboat lifestyle firsthand.

Cottage homes: A vacation home away from home

A cottage is often a cozy, rustic and charming house usually located in a rural or countryside setting.

Most cottages in Canada are specifically built for the warmer months, meaning they can’t handle the chilly weather. However, you can also find a few four-season cottages for sale that are inhabitable at all times of the year.

Who are the target buyers for this unique property?

• Second home-buyers
• Vacation rental investors
• Retirees

What strategies can help sell this one-of-a-kind property?

Highlight how investing in a cottage can pay off. Make sure to highlight to a would-be recreational property buyer that, according to a Re/Max report, Ontario cottages are expected to see a price increase in 72 per cent of recreational markets this year, with values potentially rising by up to 33 per cent.

Also, as interest rates fall, the price and demand for properties including cottages will likely surge more. Sharing these market statistics will help support your point on why your client should make a move now. 

Keep the cottage looking its best for sale. On hearing the word “cottage,” images of a charming property usually come to mind. This is the image the would-be buyers of the property for sale would be expecting, too.

So, do your best to ensure the cottage looks charming, inviting and well-cared for. This means tidy rooms, neatly arranged furniture, sparkling clean windows, shining kitchen counters, a trimmed lawn, blooming flowers and a welcoming porch. 

With carefully thought out and planned strategies like these to sell unique properties, you can easily adapt your sales tactics and get set to achieve a successful sale. 

Welcome to your regular staging advice column designed exclusively for real estate professionals. Whether you’re grappling with how to enhance the visual appeal of your listings or seeking innovative strategies to captivate your target audience, you’ve come to the right place. This is your opportunity to pose any and all staging-related questions and receive expert advice, for free.

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

When it comes to selling a home, staging has become a crucial element in making a property more appealing to potential buyers. Home staging involves preparing a property to be shown in the best possible light, often by arranging furniture, decorating and sometimes even renovating certain aspects of the home.

However, one question that frequently arises among homeowners and real estate agents is why staging costs differ so much from one stager to another. Several factors impact staging costs, which we’ll get into below.

1. Scope of services    

One of the primary reasons staging costs differ is the scope of services offered by different stagers. Some stagers provide a basic consultation where they advise on how the homeowner can arrange their own furniture and decor. This service might cost anywhere from $150 to $500, depending on the thoroughness of advice provided, the region and the stager’s experience. 

On the other hand, full-service staging involves a more hands-on approach, including the stager bringing in furniture, artwork and accessories. This level of service can cost significantly more, often ranging from $2,000 to $10,000 or even more depending on the size of the home, the quality of the furnishings and accessories and the length of time the staging items are rented.

In some cases, stagers may also offer specialized services like decluttering, deep cleaning or minor repairs, which can add to the overall cost. The more comprehensive the service, the higher the fee. For instance, a stager who also handles renovations or provides high-end luxury furniture might charge significantly more than one who simply rearranges existing items or offers standard-quality furniture.

2. Experience and expertise    

The experience and expertise of the stager also play a critical role in determining cost. A seasoned stager with a proven track record of helping homes sell faster and for higher prices can command higher fees. Staged homes spend significantly less time on the market compared to non-staged homes, which underscores the value of hiring an experienced stager who may charge more because of their ability to deliver results. 

Just like with professionals such as accountants and lawyers, the more experience a home stager has, the higher their fees tend to be. With greater expertise comes a deeper understanding of the market, refined skills and a track record of success, all of which justify the higher cost. 

Experienced stagers often have a deep understanding of buyer psychology, market trends and what appeals to specific demographics. They may also have a well-established network of vendors and resources, which can enhance the staging process. For instance, a stager with 10+ years of experience may charge upwards of $500 per hour for consultation, while a newer stager might charge closer to $200 per hour.

3. Geographical location    

Location is another significant factor in the cost of staging. In high-demand real estate markets such as Toronto, other larger cities and British Columbia, staging costs are typically higher than in smaller, less competitive markets. This is partly due to the higher cost of living and partly because homes in these areas often have higher price points, which can justify a more significant investment in staging.

For example, in Toronto, full-service staging for a mid-sized home might cost anywhere from $5,000 to $10,000, while in smaller cities on the East Coast, the cost could be as low as $2,000 to $4,000. The difference in pricing can be attributed to factors like the availability of staging resources, the cost of transporting furniture and the level of demand for staging services in the area.

4. Inventory and quality of materials    

The quality and type of inventory a stager uses can also influence the cost. Some stagers own a large inventory of high-end furniture, artwork and accessories, which allows them to create luxurious and highly appealing spaces. The cost of maintaining, transporting and insuring this inventory is reflected in their fees.

For example, a stager who uses luxury brands like Restoration Hardware or custom-made furniture will charge more than one who uses standard or rental-grade furnishings. The difference in cost can be substantial — luxury staging can cost 50 per cent to 100 per cent more than standard staging, especially if the home is large and requires many high-end items to appeal to high-end buyers.

We recently staged a $7 million luxury waterfront property, where each room featured expansive dimensions. To complement the scale of the space, we not only incorporated high-end, luxury furniture and accents but also sourced large-scale pieces specifically tailored to suit the grand proportions of the rooms. This ensured the staging was not only visually striking but also appropriately proportioned to the property’s grandeur.

5. Customization and client expectations    

Customization is another factor that can drive up staging costs. Some clients may have specific requests or high expectations that require additional time, effort and resources. For example, a homeowner might want the staging to reflect a certain lifestyle or theme, such as a modern minimalist look or a coastal vibe. Accommodating these preferences often requires the stager to source specific items or make special arrangements, which can increase the overall cost.

Additionally, some stagers offer bespoke services, where every aspect of the staging is tailored to the client’s needs. This level of customization is typically more expensive because it involves more planning, sourcing and sometimes even custom furniture or artwork.

6. Duration of staging    

The length of time the staging items remain in the home can also affect the cost. Most stagers include a certain period (typically 30 to 60 days) in their base price. If the home does not sell within that timeframe and the staging needs to be extended, additional fees will apply. These extension fees can range from a few hundred to several thousand dollars, depending on the stager and the inventory involved.

7. Insurance and liability costs    

Stagers must also account for insurance and liability costs, which can vary depending on the size of the staging operation. Larger companies with more extensive inventories may have higher insurance premiums, which are passed on to the client in the form of higher fees. This includes coverage for potential damages to the home, the staging items or injuries that might occur during the staging process.

8. Overhead costs

Another critical factor that contributes to the varying costs of staging services is the difference in overhead costs between stagers who run large teams and those who operate as solopreneurs. Stagers with a large team often have higher overhead expenses, including salaries for employees, rent for office space, warehouse storage for inventory, transportation costs and insurance for both the business and the team members.

These costs add up and are typically reflected in higher fees for services. For example, a stager with a team may need to cover the costs of a dedicated logistics manager, movers and administrative staff, all of whom play essential roles in delivering a seamless staging experience. 

In contrast, solopreneurs who work out of their homes have significantly lower overhead costs. They often manage all aspects of the business themselves, from client consultations to physically staging the property, which allows them to keep their prices more competitive. However, this can also mean that their capacity is limited and they may not be able to take on as many projects simultaneously as a larger team could. The trade-off between a solopreneur’s lower costs and potentially more personalized service versus a larger team’s resources and scalability is something homeowners and agents should consider when selecting a stager.

The cost of home staging can vary widely from one stager to another due to a range of factors including the scope of services, experience, geographical location, inventory quality, customization, duration and insurance and overhead costs.

When selecting a stager, homeowners and real estate agents should carefully consider what’s included in the service, the stager’s track record and how well the staging aligns with the property’s target market. While it might be tempting to choose the least expensive option, investing in a skilled stager who understands the nuances of the market can lead to faster sales and potentially higher offers, ultimately making the cost well worth it.

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

“We have met the enemy and he is us.”

Pogo, 1970

History nerds may argue over where the introduction of the real estate brokerage model took place — in New York City (1847) or in Chicago (1855) — but a sure bet is they’d agree that little has changed in the nearly two centuries of real estate brokerages in North America.

What else hasn’t changed? The keyboard (1870) you’re using and the ballpoint pen (1888) on your notepad may very well have been the first technology welcomed by early salesmen.

The sector has some big, longtime problems

Richard Montgomery, in his column “Dear Monty,” identified the sector’s biggest problem in 2020: the glacial pace of change to the brokerage model, including low entry levels, misdirected training, and marginal supervision.

We have both been managing brokers and worked in the real estate regulatory space, and we both now work in the organized real estate side of the profession. We’ve also both shared observations in REM about the challenges that managing brokers face and the risks for the sector if the status quo continues — including lack of succession planning, inability to attract new talent into the role and forced change by regulators.

We’ve shared everything from obvious observations like compensation for the role not commensurate with the responsibility, accountability and liability that comes with it, to more complex aspects like brokerage sustainability when incentives are offered but not supported by a sound business model. 

Those earlier articles discuss some of the things that got us to this point.

The introduction of teams: Adding pressure to brokers and risk to the sector

One of the things we both feel contributed to pressure on the role of the managing broker and the resulting risks for the sector is the introduction of “teams.” Before teams, many realtors, especially top producers, were motivated to branch out and form their own brokerage because of financial/taxation benefits, the desire to create a different culture or general displeasure with their brokerage.

Today, they form a team — no fuss, no trust (account) and no brokerage license or franchise purchase. This simplicity has also impacted motivations. They may see an opportunity to provide specialized services, seek a structure that accommodates work-life balance, pool resources for economies of scale or just generally be more collaborative and, thus, competitive.

Evolution in regulations for teams: A B.C. snapshot

Recent research including confirmation from the BC Financial Services Authority indicates there are 1,703 registered teams in the province of British Columbia but no information about the total number of team members. Currently, there are about 27,000 real estate sales licensees. The minimum number of team members is two.

Therefore, teams make up at least 12 per cent of the licensees in B.C. Assuming an average of four members per team increases the percentage to 25 per cent. Although unlikely, an average of eight members would mean 50 per cent of B.C. real estate licensees are team members. 

The regulatory environment around teams has evolved to some extent. Koot recalls attending an international real estate regulator conference in the mid-2010s thinking there’d be an opportunity to plagiarize teams regulations from another jurisdiction, only to find out that everyone else attending the conference had the same intention.

Still, not all jurisdictions identify teams. Until 2023, the only reference to teams in the B.C. regulator’s rule book dealt with advertising. Other jurisdictions require the team leader to have regulated qualifications, and in several jurisdictions, unlike B.C., team names cannot include or be connected with the word “realtor” nor use the words “group,” “realty” or “associate.”

As in B.C., teams may not indicate in any way that they are a brokerage and remuneration can only be made through the brokerage. The brokerage name must be used in all advertising and the font must be the same size as the team name.

Brokerages seem to feel they cannot be successful without attracting teams, but we need a recalibration

These rules and limitations for the team and “team lead” do not, however, hold any significant expectations that would transfer liability from the broker. An environment has been allowed to evolve (by both sector and regulator) where teams operate with an element of autonomy, giving them the perfect scenario to build a business with many of the benefits and very little of the associated accountability.

From a regulatory perspective, teams cannot exist or succeed without being attached to a brokerage. From a business perspective, it seems brokerages feel they cannot be successful without attracting teams. To ensure the broker role continues to be an aspirational endeavour for realtors, thus solidifying the viability of the brokerage model under the existing regulatory framework, there needs to be a recalibration of what each — the brokerage and the team — receive from the relationship.

In the absence of a major sector overhaul to a single-license environment — which would see the extinction of the broker role altogether (as has been discussed in the regulatory world) or the creation of a joint accountability model where team leads and brokers share the regulatory burden — it’s up to the industry to self-correct.

Teams and individual realtors alike need to recognize the value the broker role brings to their success. Brokerages need to ensure that this recognition translates through resources and compensation. And everyone involved needs to adopt policies and procedures that distribute compliance responsibility throughout the organization. We may not be able to displace all the liability, but we can certainly create an environment where it’s mitigated.

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

I’m always reluctant to draw any conclusions about housing markets based on seasonally low data. More specifically, July-August and December-January typically have suppressed sales volume, so using them to guide decision-making can lead us astray.

Source: TRREB

With that being said, there are a few key things to be mindful of in Toronto Regional Real Estate Board (TRREB)’s most recent Market Watch release:

Home sales are down by 5.3 per cent compared to August last year. This is relatively in line with the declines we’ve seen each month in 2024. As well, homes are taking much longer to sell (40-57 per cent increase in days-on-market).

As a result, inventory continues to accumulate in the absence of absorption, so active listings are up significantly (46.2 per cent). Nominal prices are down slightly (0.8 per cent), so when adjusted for current inflation, real house prices are down over 3.0 per cent since last year.

The fourplex pump

Source: TRREB

When you unpack these data points a little further, you can get a better understanding of the market.

Some things stand out here:

1. Area code 416 detached home sales is the only category posting a YoY increase in number of units sold in August, up 8.3 per cent. It’s also the only category posting a YoY increase in price, up 3.2 per cent.

2. Area code 416 condominiums and townhouses have both seen double-digit drops in volume.

Presumably, the municipality’s upzoning of residential neighbourhoods in Toronto to four units has had some positive impact. A floor on area code 416 detached homes would be established by the last buyer in the market — an investor looking to tear down the home and rebuild a multiplex there. Their output value has now gone from one or two units to four units, as a purchaser can now build a fourplex on detached lots.

In the 905 area code, detached sales appear to be resilient, but less optimistic than in 416. The 905 area code’s detached sales number saw a 3.3 per cent decrease.

The cooling condominium market

Condominium units are a very different story from the detached market. We’ve been hearing alarming reports of condominium volume piling up, with product exceeding 12 months of inventory at some periods.

Condominium apartment sales continue to decline, currently at a rate of 11.4 per cent across the GTA compared to August of last year. This decline is reflected further in the preconstruction condominium sales market, where sales are 50 to 75 per cent below the long-term average.

Declining rents and increasing interest rates have created a difficult cash flow scenario for condominium investors. As a result, many are looking to offload assets, and very few are looking to purchase these assets.

Source: TRREB

Pricing

Prices are down across the board on TRREB. Notably, beyond condominiums, recipients of the pandemic’s urban exodus are seeing a steeper recoil from peak pricing, which seems to correlate heavily with the magnitude of price increases during the exodus.

Source: TRREB

Moving forward

With another 25 basis point rate cut from the Bank of Canada, some pressure has been eased for financial stress on certain sellers. Fixed rates are declining, so there’s a little more light at the end of the tunnel for those facing a steep mortgage payment increase upon renewal in 2025 and 2026.

The bigger question is when interest rate cuts will have a material impact on bringing purchasers back to the market. So far, the impact of 75 bps rate cuts has been relatively muted, as the weight of financial stress seems to outweigh the benefit of lower rates.

A lot can go wrong in a home that can be costly to repair. When showing a home or viewing it with clients, there are some common issues realtors can make buyers aware of when it comes to plumbing.

Every homeowner should at least have a basic understanding of problems that could arise as well as the appropriate professional to remedy the situation. It’s helpful for your clients to have a trusted plumber to call when there’s a problem — sometimes even with small issues because things can quickly escalate.

Following are some plumbing problems your clients may come across. It’s important to have an expert on hand to pinpoint and fix any issues before water damage occurs. On top of dealing with that, they could even end up paying more in water bills thanks to deficiencies.

7 plumbing issues that may require a plumber’s expertise

1. Dripping faucets. Faucets and fixtures in sinks, bathtubs, showers and dishwashers should not drip when turned off. Dripping is often due to worn seals and can lead to higher water bills over time. Addressing these drips promptly can save money and prevent further wear.

2. Leaky pipes. Leaks can occur in both visible and hidden pipes, leading to water damage, mould growth and increased utility costs. A plumber is needed to locate the source of leaks, especially those hidden behind walls or under floors, and to repair or replace the affected pipes.

3. Running toilets. Toilets should not continue to run after flushing. A running toilet indicates an internal leak, which wastes water and increases bills. If jiggling the handle is necessary, components like the flapper valve, float or fill tube may need adjustment or replacement.

4. Clogged or slow-draining sinks. Kitchen sinks often clog due to food debris and bathroom sinks frequently become clogged with hair. While some clogs can be cleared with over-the-counter solutions, persistent issues require professional attention. Using strainers can help prevent clogs by keeping debris out of drains.

5. Sewer line backups. A clogged sewer line can cause significant damage by backing up raw sewage into the home. This issue is often due to tree roots or broken pipes and requires specialized equipment and expertise to diagnose and resolve.

6. Water heater issues. Leaks, sediment buildup or faulty thermostats can lead to inefficient heating or complete failure. A plumber can assess the water heater’s condition and perform necessary repairs or replacements to ensure it operates safely and efficiently.

7. Outdated or banned piping. In older homes, you may find galvanized or polybutylene pipes, which are prone to corrosion and can lead to lead contamination or system failure. Replacing these pipes with modern materials is a complex task that requires a plumber’s expertise.

Other issues

Additional common plumbing issues our inspectors often come across include: 

• No water shut-offs — essential for quickly stopping water flow in emergencies
• No backflow valve — prevents contaminated water from entering the clean water supply
• Improper fittings — can lead to leaks or inefficient water flow
• Incorrect dishwasher connections — improperly installed drain lines can cause leaks
• Loose toilets — can lead to leaks and water damage
• Poor water pressure — may be a sign of underlying plumbing issues

Encouraging your clients to schedule annual home maintenance inspections can help identify these issues early. Home inspectors can spot problems and may recommend local plumbing experts to address any concerns.

An annual inspection is also a great time for homeowners to bring up any issues they’ve noticed throughout the year that weren’t remedied right away. Preventative maintenance not only provides peace of mind, but it can also save money by addressing potential problems before they become major issues.

Understanding insurance needs can be daunting for any small and medium-sized enterprise (SME). Yet as SMEs contend with an evolving landscape marked by economic fluctuations, technological disruptions and heightened regulatory scrutiny, having a robust insurance strategy is crucial to maintaining stability and peace of mind. 

This is particularly true in the real estate industry. In fact, according to Innovation, Science and Economic Development Canada, over 99 per cent of businesses in real estate and rental and leasing are small businesses. To safeguard against uncertainties, it’s crucial to identify specific risks that could jeopardize their operations and seek appropriate, tailored insurance solutions to protect their bottom line.

Unique challenges faced by real estate SMEs

Real estate SMEs operate in a highly competitive and often unpredictable environment. From property management firms to small-scale developers, the risks are diverse — ranging from monetary or reputational harm, they can significantly impact a business’s bottom line. 

For instance, a property manager might be forced to face legal action if a tenant damages a property and the screening process had been inadequately performed. Imagine a scenario where the property manager overlooks the tenant’s previous eviction history during screening. The tenant subsequently causes extensive damage, leading to costly repairs and lost rental income. The property owner then sues the property manager for negligence, claiming that the manager should have identified the tenant’s past issues during the screening process. 

Such situations underscore the importance of having insurance that appropriately addresses highly specific risks. However, knowing which ones you face can be a challenge, and working with an insurance professional who has specialized knowledge and experience in risk assessment is always a good place to start. 

Essential insurance solutions for property managers

Considering the various risks that can jeopardize their operations, property managers operating on tight budgets may see insurance as an expense rather than a necessity, overlooking its importance for business continuity.

Essential coverages for property managers can offer security by mitigating risks that could disrupt operations and stunt future growth:

• Directors and Officers (D&O) Insurance. Protects the personal finances of directors and officers from legal challenges arising from their decisions, offering crucial protection for company leadership.
• Errors and Omissions (E&O) Insurance. Protects professionals whose business decisions may lead to errors, omissions, neglect or breach of duty while providing services resulting in third-party claims.
• General Liability Insurance. Protects against claims of bodily injury, property damage or personal injury that occur within their office premises.

Customized insurance solutions: A necessity, not a luxury

Every industry has its own unique risks, and the real estate industry is no exception — whether it’s residential property management, commercial real estate or development. That’s why working with an insurance professional who understands the specific challenges of the industry can help tailor a policy package that fits a business best. 

One common challenge SMEs face is limited resources. When it comes to insurance, most SME owners don’t have the bandwidth to explore every option available, and this can lead to difficulty in finding comprehensive coverage that properly protects them from a range of exposures.

To address this need, the insurance industry is developing new inclusive policy packages — offering combined policies that are customized for small businesses. This can make it easier for SMEs to manage various areas of coverage and enhance their ability to proactively control risk.

In response to the specific needs of SMEs for a single insurance policy, many are seeking “insurance packages” that combine various coverages into one, including E&O liability, general liability, contents, cyber and legal coverage together, simplifying the management of insurance needs for small businesses.

Balancing affordability with adequate protection and a reliable contact point

Cost is always a concern for SMEs. However, it’s essential to balance the need for affordability with the need for adequate protection. Cutting costs by reducing coverage can lead to vulnerabilities that may be far more costly in the long run. Instead, SMEs should look for insurance providers who offer competitive pricing without sacrificing the quality of coverage. 

Lastly — and perhaps most importantly — having a reliable point of contact during the claim process will help ease the pressures faced by SMEs throughout that time. This fosters trust and facilitates more seamless solutions when an incident arises so that SMEs can focus on what matters most: their business. 

Embracing technological advancements  

Brokers act as a lifeline for SMEs, providing them with products, services and experiences based on the risks they’re exposed to. As the insurance space adopts new technology, brokers can now utilize user-friendly digital portals to better assist real estate SMEs in a timely and efficient manner.

These portals offer real-time quotes and policy issuance, available around the clock, enhancing satisfaction and ensuring that clients can purchase insurance policies at their convenience.

Insurance plays a vital role in risk management for SMEs in the real estate industry. Understanding insurance products and utilizing technological advancements can greatly simplify the process of acquiring comprehensive coverage. Staying informed, leveraging technology and prioritizing comprehensive coverage will help real estate SMEs protect their bottom line and build a resilient business for the future.

It was a rainy fall day in October 2015. I was inching through downtown traffic when an agent from one of our offices called me. One of my jobs was to help our agents when they had clients who had real estate needs outside of our service area.

“What’s the situation?” I asked. The agent explained that her friend and her friend’s husband had both died of cancer within some 12 months of each other, orphaning two young children. The children were being adopted by an unmarried uncle on the other side of the country. While he was a successful professional with a well-paying job, his urban bachelor pad wasn’t going to be sufficient, especially since he was also in the process of relocating his parents from Europe to the United States to help him raise his nephew and niece. 

We worked closely with our affiliate in the destination market to find an agent who was very knowledgeable about real estate and, importantly, also deeply empathetic. Around six months later, an email arrived containing a very rewarding photo: the uncle, his parents and the children smiling in front of a generous suburban home, on a snowy day.

Part psychologist, part salesperson: Transactions often weighted with emotionally fraught situations

It has been said before and it bears repeating: a home is the biggest investment most people will ever make — an investment often weighted with emotionally fraught situations. This combination tends to lead to intense and transparent interactions.

The best agents will readily tell you they are part psychologist, part salesperson. On a recent listing presentation, one of our agents spent hours with a woman who was going through a nasty divorce, listening to her and advising her gently on what small improvements and tweaks she could make to increase the saleability of her home. Our agent may or may not get the listing assignment, but she knows on a human and professional level that she’s truly been of service. 

Dealing with the ‘3 Ds’: Divorce, death & debt

In the course of working with their clients, real estate agents often encounter the “3 Ds”: divorce, death and debt. While it may sound trite, it isn’t: these are delicate human situations of almost sacred importance.

With most professionals — dentists, lawyers, accountants — if you need to meet them, you go to their office. But agents often come to their clients’ homes, even if they’ve never met them before.

They’re invited in, literally and figuratively into all the joys and misfortunes it contains. They help a couple find a new place for their growing family, the living room where their child will take his first steps, the bedroom where their daughters will sleep. For another family, they help navigate a marriage breakup and the division of the home — what is (usually) the biggest financial asset and also the one with the most relational baggage.

The soul of the real estate agent (it’s not the legal framework and compensational mechanics we see in the news)

Organized real estate has been much in the news over the last year. The class-action lawsuits in the U.S. and similar, earlier-stage actions in Canada focus industry and media attention on the legal framework and compensational mechanics of the real estate business.

For agents, these factors are background noise, secondary to the trusted advisor work they perform on a day-to-day basis. Good agents don’t do it for the money; they do it because they love to help people, even (or especially) in complex, tragic and delicate situations.

Making a living is a byproduct of the help agents offer families — this is the soul of the real estate sales professional.

Welcome to your regular staging advice column designed exclusively for real estate professionals. Whether you’re grappling with how to enhance the visual appeal of your listings or seeking innovative strategies to captivate your target audience, you’ve come to the right place. This is your opportunity to pose any and all staging-related questions and receive expert advice, for free.

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

Selling a home is one of the most significant financial transactions many people will ever undertake. In today’s competitive real estate market, where buyers often make judgments within seconds of stepping through the door — or even before, based on online photos or video — having your client’s property stand out is crucial. This is where professional home staging comes into play.

A skilled home stager can turn a property into a buyer’s dream, often leading to faster sales and higher offers. But with so many stagers out there, how do you choose the right one for your needs? Here’s what you should look for in a professional home stager.

1.  Experience and portfolio

One of the first things to consider when choosing a stager is their experience. How long have they been in the business? Do they have a track record of successfully staged homes that sold quickly and for a good price? Ask to see a portfolio of their work. A reputable stager will have before-and-after photos of previous projects, which can give you a sense of their style and ability to transform spaces.

For example, if you’re selling a modern condominium in the city, you’ll want to see how the stager has handled similar properties. Conversely, if you’re selling a large, traditional family home, the stager should have experience in making such spaces look inviting to a wide range of potential buyers.

The more varied their portfolio, the better equipped they’ll be to handle the unique challenges of your client’s property. Your stager should be a creative problem-solver, capable of transforming even the most challenging room layouts into functional, visually appealing spaces that attract potential buyers.

2. Training and accreditation

While staging is an art, it’s also a science that involves understanding buyer psychology, design principles and real estate market trends. A stager who has received formal training from a recognized organization, such as the Real Estate Staging Association (RESA), or has an accreditation like Accredited Staging Professional (ASP), has demonstrated a commitment to the craft. This background ensures that they’re equipped with the knowledge and techniques to effectively stage homes.

For instance, a well-trained stager will know how to highlight a home’s strengths while downplaying its weaknesses. They will use colour, lighting and furniture placement to create an atmosphere that appeals to the broadest range of potential buyers. Experienced stagers are constantly honing their craft, staying up-to-date with the latest design trends to ensure they deliver the modern, appealing aesthetics that today’s homebuyers crave.

3. Understanding of the local market

Every real estate market is different and what works in one area may not work in another. A good home stager should have a deep understanding of their local market and what buyers in that area are looking for. They should be familiar with the types of properties that are selling quickly and at top dollar and should know what appeals to buyers in your client’s specific neighbourhood. Since each local market has unique characteristics, stagers should maintain a diverse inventory that accentuates the distinct features of properties in those specific markets.

For example, if you’re selling a home in a family-oriented suburb, the stager should know how to create a warm, welcoming environment that appeals to young families. On the other hand, if the property is in a trendy urban area, the stager might focus on creating a chic, modern look that appeals to young professionals.

4. Customizable services

Every home is unique and so are the needs of every seller. A good home stager should offer a range of services that can be tailored to your client’s specific needs and budget. Whether you need a full staging service with furniture and decor brought in, or just a consultation to provide some DIY tips, the stager should be able to accommodate you.

For instance, if the home is already beautifully furnished, you might only need a staging consultation to help you declutter and rearrange existing furniture. On the other hand, if the home is vacant, you might need a full staging service where the stager brings in all of the necessary furniture and accessories to make the home look lived-in and inviting.

5. Attention to detail

Staging is all about the details. A good stager will pay attention to every aspect of the home, from the arrangement of furniture to the placement of accessories. They’ll think about how the home will look in photographs, how it will feel when buyers walk through the door and how to create a cohesive look throughout the entire property. An exceptional stager will go above and beyond to ensure every room is flawlessly presented and fully optimized to captivate potential buyers.

For example, a stager with a keen eye for detail will ensure that each room has a focal point, whether it’s a beautiful piece of artwork or a cozy seating area. They’ll also check that all of the little details, like flowers, crisp linens and strategically placed mirrors, are taken care of.

6. References and testimonials

Just like hiring any other professional, it’s essential to check the stager’s references and read testimonials from previous clients. A good stager will have a list of satisfied clients who are willing to share their experiences. Look for reviews that mention the stager’s ability to listen to the client’s needs, their professionalism and, most importantly, the results they achieved.

For example, if you read a testimonial that mentions how the stager helped sell a property within a week at above asking price, that’s a good sign they know what they’re doing.

7. Fully insured

Another crucial factor to consider when choosing a home stager is whether they have adequate insurance coverage. Professional liability insurance is essential as it protects both the stager and the homeowner in the event of any accidents, damages or unforeseen issues that might occur during the staging process. 

For example, if a piece of rented furniture damages some flooring, or if a team member accidentally breaks a valuable item, insurance protects you and your client from footing the bill. Working with an insured stager provides peace of mind, knowing that the stager is prepared to handle any mishaps that may arise. This level of professionalism not only protects the investment but also underscores the stager’s commitment to running a reputable and responsible business. Always ask for proof of insurance before hiring a stager to ensure that you, your client’s property and the stager are all adequately protected.

8. Clear pricing structure

It’s important that the stager has a clear and transparent pricing structure. You should know exactly what services you’re paying for and how much they cost.

Some stagers charge a flat fee, while others charge by the hour or based on the size of the property. Make sure you understand what’s included in the price and if there are any additional costs for things like furniture rental and renewal fees.

9. A comprehensive contract

When hiring a home stager, one of the most important aspects to consider is whether they provide a comprehensive contract that clearly outlines the responsibilities and expectations of all parties involved, including the homeowner, realtor and staging team. A detailed contract should specify the scope of work, timelines, costs and payment schedules, as well as the roles and responsibilities of each party involved. 

For example, the contract should state what the stager will provide in terms of furniture, accessories and design services and it should also clarify what the homeowner is responsible for, such as moving personal items or making certain repairs before staging begins.

Additionally, the contract should address important details such as what happens if the home doesn’t sell within the expected timeframe, how rental items are handled and any cancellation policies. This clarity helps prevent misunderstandings and ensures that all parties are on the same page throughout the staging process.

A well-drafted contract not only protects your interests but also demonstrates the stager’s professionalism and commitment to delivering quality service. Before signing, be sure to review the contract carefully, and don’t hesitate to ask questions if anything is unclear. This step is crucial in ensuring a smooth and successful staging experience.

Selecting the right home stager can make a significant difference in how quickly your client’s property sells and for how much. By looking for a stager with experience, training, a deep understanding of the local market and attention to detail, you’ll be setting yourself up for a successful sale. Don’t hesitate to ask for references, review their portfolio and ensure their services align with your needs and budget.

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

The Canadian real estate market is a dynamic one, often influenced by several economic factors. With the post-pandemic shift in the market, we’ve witnessed a lot of fluctuation in property prices. As prices have recently increased, this trend may cause potential first-time homebuyers to hesitate when purchasing their home. 

However, when it comes to pre-construction properties, now is actually one of the best opportunities to secure a deal. Let’s walk through some of the key reasons why pre-construction investments remain a smart choice, and how you can strategically help your clients navigate the current market.

Pre-construction pricing dynamics

Best suited for first-time homebuyers, the key fundamental aspect of pre-construction properties is the pricing mechanism. Unlike investing in resale, pre-construction properties are sold at today’s prices but completed and delivered roughly three to four years later. 

What does this mean for your buyers? The price they agree to now does not reflect the final market value at the time of completion. Real estate markets are cyclical, and as history shows, property values are set to appreciate over time. Plus, pre-construction offers a flexible down payment plan best suited for first-time homebuyers. 

Many aspiring buyers are hoping for a further price drop, but by the time their pre-construction property is built, the market is likely to have rebounded, resulting in a property value increase. Essentially, buyers lock in a lower price now for a property that will be worth a lot more in the future. This inherent appreciation potential makes pre-construction properties a lucrative investment.

Helping clients adopt a long-term perspective for real estate

These days, it’s crucial for both buyers and sellers to educate themselves on why the real estate market is all about long-term perspective. The idea is to build and preserve wealth over time. 

For buyers, this means getting used to market fluctuations and understanding that patience is key. The current dip in real estate presents an opportunity to enter the market at a slightly lower cost, instead of expecting prices to go down further and that values will rise by the time their property is ready. Have these important conversations with your clients.

Taking advantage of a buyer’s market

In today’s buyer’s market, agents and brokers have a unique opportunity to guide their clients through uncertainty and position them for long-term success. Here are key strategies that can help professionals in the field increase client confidence and close deals effectively:

1. Strengthen negotiation leverage. As an agent,  the ability to negotiate effectively becomes even more critical in a buyer’s market. Educate buyers and investors on the leverage they have, not just in price but in securing favourable terms like extended deposit schedules, builder incentives or upgrade packages. Emphasize the value of these perks, and use them to craft deals that align with buyers’ long-term objectives.

2. Highlight the importance of capital utilization. In a market where things are changing by the minute and liquidity is king, it’s important to convey to your clients the advantages of putting cash reserves to work in real estate over letting them sit idle in bank accounts.

Highlighting how pre-construction properties offer a unique opportunity for growth where they appreciate over time, it’s important to note that property values are expected to rise over the next few years. Investing now means buyers are set to benefit from future appreciation. The property they invest in today at the current price could be worth significantly more by the time it’s completed, providing substantial returns on their investment. Money in low-interest savings accounts can be worth much less in the future, whereas investing in pre-construction can yield better returns.

3. Role of population growth in demand. With the growth in population around urban centres and the increasing opportunities and improved lifestyle benefits that come with it, the demand for housing is only going to increase.

Population growth means more demand for new homes, pushing property values upwards. While we already witness many developers working towards providing more housing options, the short-term price dip is only here for a while before demand increases again. New construction is finite in desirable areas, but this means it will inevitably lead to higher property prices.

Improving economic conditions also results in a return to consumer confidence and, with that, the demand for real estate is also set to increase. This cyclical recovery will bolster property values.

Seizing the moment

In a buyer’s market, the role of an agent or broker extends beyond merely facilitating transactions. It’s about empowering buyers with the knowledge, strategies and confidence they need to make sound investment decisions.

Real estate is a journey, not a sprint. By thinking long-term and making informed decisions today, your clients can set themselves up for substantial financial gains in the future.