speaker-1: Episode two of Closing Time with Jeff West. A local real estate agent in St. Thomas, Ontario, with Street City Realty, where we talk all about real estate locally. And today I'm super excited. We have a guest. If you have been in real estate for the last 25 years, 30 years, you will know the name Costa Polopolis. Costa has been a realtor since 1987, and he was past president of the London St. Thomas Realtors Association. He's been on the board of the Ontario Real Estate Association, the Canadian Real Estate Association. And he has won numerous awards. He got an Outstanding Achievement Award for his contribution to the real estate profession in southwestern Ontario and his local real estate association in 2000 and again in 2008. Costa speaks three languages, and his creative marketing ideas and materials are used in training classes around the province. Welcome, Costa.
speaker-0: Wow, well Jeff, thank you. I didn't expect that kind of an intro. ⁓ you I'd like to be known as Costa, he's a really nice guy kind of thing. So there you go. I think he's a hugger. That's right.
speaker-1: And he's a hugger. And he's a hugger. ⁓ I I wondered if you wanted to start off and kind of just talk about your role as the the broker of record and as kind of your roles as you moved forward in your career.
speaker-0: Yeah, so listen, I would it's been a wonderful career. It's still going, it's ongoing. ⁓ as ⁓ as you mentioned, nineteen eighty-seven is when I got licensed, or thirty-nine years ago. ⁓ in two thousand and eight, ⁓ my ⁓ lovely wife and business partner and I decided that we were ⁓ gonna open up our own brokerage. That's after ⁓ sixteen years of trading with ⁓ three large franchise company, different brands, being always in the top three of their organizations, two hundred agents, two hundred and fifty agents. ⁓ No assistance, just just Mary and I, and then we decide, hey, listen, you know what? I I here's here's my take on life. Philosophically, I have this philosophy from the from the day you're born until the day that you die, we don't know this day, but open as many doors as you can in life. Never close them. You don't have to go through them all. So outside philosophically, that's my outlook. And of course I have Mary who not only buys into that philosophy, but she doesn't only look in the door, she goes in the room and starts moving around furniture and scares the scares the crap out of me. But the reality is that's how we end up. Ended up having ⁓ starting a brokerage of our own. ⁓ started with two people, just Mary and I, and organically grew no no recruiting campaigns out to agents. It's ⁓ over the course of working in the profession for so many years, working with great realtors. Once we turned on the lights that we were open for business, ⁓ people started coming in. So I gotta tell you, from May of 2008, which was a recession year for those of you that have been around in 2008. If you remember that, ⁓ end of ⁓ by December, we had 55 agents. A full year later, we were over a 120 agents. ⁓ So it's been a good ride. And I don't even know if I answered your question, but from there I got into it. Yes, organized real estate and all the things that you mentioned about being president of the National Association, Provincial Association, and broker of record of Street City as ⁓ as founding ⁓ owners. ⁓ and I've just recently ⁓ been ⁓ afforded an opportunity ⁓ to become the interim broker of record for our sister company in Toronto, right at home realty, which ⁓ has over 6,200 eight. and ⁓ is the largest independent ⁓ brokerage in Canada with that many agents. So really excited about the next step as well.
speaker-1: So how have you seen the real estate industry evolve over the years?
speaker-0: You know, Jeff, that's a great question and ⁓ y you know, a lot of people ask that. It's like, ⁓ my god, isn't it different from when you started in eighty seven? The reality is the wheel is round. There's no there's no reason to reinvent the wheel. It's it works beautifully. ⁓ you know what? This is a people business and that's what I tell everybody. And it doesn't matter how much technology gets ahead of this and technology's a wonderful tool. AI coming, it's it's leaps and bounds, light years ahead, wonderful tool. But the reality is, It's a people business and people still want to connect with somebody that's going to make sense of all the data that's so readily available. I mean, here's one thing that we've been saying. People don't care what you know until they know that you care. Once somebody knows that ⁓ I care about their situation, their their new addition to the family, ⁓ unfortunately the death of the family, a new job, a loss of a job, whatever the the motivation is for for people to look to buy or sell real estate, they need to know. that the people the person that they're talking to, the realtor they're speaking to, really cares. Other than that, it's like Charlie Brown. Wah wah, whatever you're talking about. So so it's it's a it's it's a people business. It has always been a people business, and it will always be a people business. So of course things are going to change, technologies are going to change, things may move at a faster pace, but ⁓ the the the crux of it, ⁓ and I that's why I firmly believe realtors will always be at the center of a transaction. It might take a different form But they'll always be involved to help consumers navigate through this process.
speaker-1: Yeah, for sure. And it it is one of my one of the things I like most about real estate is is the people part of it. And I think, you know, coming from a a teaching background, ⁓ and working with children for so many years, it was something I I really like. It's about hate to say it, it's about the only thing I miss about teaching is the kids and the the relationship building. But I'm in a different profession now where I get to build, you know, long term res ⁓ relationships with people and, you know, hopefully sell sell
speaker-0: And Jeff, when you and I know you'll be in it as long as I am, this is the beauty of it. You'll be selling to their kids and maybe their grandkids, depending on how long you're gonna be. Because because it is it is a people business and it's those connections and clients and consumers become lifelong friends and I mean that. I ⁓ some of our best friends in the pr in in in in our lives ⁓ have have come through the connections we made in real estate. And I know I and I know you ⁓ have the same philosophical view and that's what you treat your business, which is, you know, attributable to ⁓ why you're so successful.
speaker-1: Well, you know, in my in my it's funny, ten years in in ⁓ real estate now and I I sold a house ⁓ a couple years ago actually to a former grade four student. So it's it's it is it's you know, the the relationships are important and and lifelong for sure. ⁓ what do you is are there things that you think the public under ⁓ misunderstands about the real estate market?
speaker-0: you know what? That I mean that's a great question as well. And I don't know, sometimes there's misconceptions of how it works. you know, sometimes they have we have relationships with people and and they trust us implicitly and they know that we care about them and you know sometimes ⁓ these clients or consumers don't want to bother us and they figure, ⁓ you know what, I'm just gonna, you know, walk around and let you know when I'm interested and you know I won't I won't waste your time because I respect you. The reality of it is ⁓ and this is one thing that we need to educate people. consumers more of is how how do how does real estate work in the organized world of real estate. I mean there's there's a a listing side, there's a buyer side and ideally and and now with the legislation has changed since ⁓ twenty twenty three under the Trust and Real Estate Services Act where we designate specific agents that represent a client's best interest. So even though you and I could be in the same brokerage in the same brand ⁓ You know, in the past it used to be, ⁓ everybody under the Street City umbrella had to work for the client that you were working with. You may not even have known them or I may have kno known your client, but by this by default I was actually working for their interests. And they changed the legislation to give a clear and I'm gonna give a big shout out to the regulator for this, to try to make things easier for the consumers. And I mean the regulator, the real estate council of Ontario's mandate is is consumer confidence and consumer trust in the real estate profession and the industry and And so they've really done a great job in clarifying in simple, plain language who works for whom, how how does real estate work, representation, and so you know, it comes back down to that. I mean that part's okay, and I think that's one thing consumers need to know is how does it work? Like I know you may want to go out and do some searching on your own, but listen, engage my services. That's what I'm here for. I I will represent you, you explain how representation works, fiduciary duty is to promote and protect the client's interest. And ⁓ you're not taxing my time. Let me work hard for you and and and and explain the process and how it works. And I know there's a listing side and there's a buyer side, but the reality of it is the expertise of realtors, when you get realtors that know what they're doing, ⁓ it doesn't matter if you work for the seller on the listing side or I work for the buyer, if we're not putting a deal together, nobody's working tonight. ⁓ and the buyer and our clients aren't happy. So there's a lot of stuff in there when you when you're dealing with true professionals. ⁓ helping consumers navigate through the process, full transparency in what's supposed to happen, how it happens, you know, full disclosure. And I know that that we you know, we pride ourselves on that and and you're a perfect example of how you take that on in a brokerage and how you ⁓ deal with your clients.
speaker-1: Well, you know, Costa, it's when I meet with my clients, it's it's the first conversation I have. ⁓ and it's it's funny that ⁓ people didn't know and people who have bought and sold many houses, they did not know that when they purchased a property through a listing agent, that that agent a lot of the times was not representing them. They had no idea. Right. And I think un I think unfortunately during COVID, a lot of buyers were really taken advantage of And and I think this change in legislation is is huge. And I think it's a really good thing that that that was done.
speaker-0: Well you know, I I I I just wanna piggyback on that because you're a hundred percent correct. The true professionals that that that right th that that understand how it's supposed to work about full disclosure and transparency have embraced the new legislation because it just makes it so much more clear. ⁓ so I don't think that there's any pushback from from realtors that that that are are, you know, transacting out in the field and those are the ones that have embraced this and they're you know, it's helped the consumers as well for sure.
speaker-1: Yeah, yeah. Okay Costa, I'm gonna ask you a question that I get asked every day. Sure. What do you think about the current state of the market?
speaker-0: You know, that is a honestly, I I I love to to to tell my take on this thing. And I know that look, first of all, even though we're local in our markets, we're globally connected. So you know what? We're local but we're global. We get that. Geopolitically, what's happening in the world around the globe is going to affect what's happening in London and St. Thomas and Ingrid. In a little it doesn't matter where we are, because that's the impact of of how connected we are globally. So what I think is gonna happen, here's what I'm thinking. Look, right now ⁓ the Bank of Canada rate just left the rates where they are, which is great, ⁓ for the month of April. Two point two five. That is historically really low. Save and except for the pandemic, which was at point two five, which we'll probably never ever see again. I mean, unless another pandemic or something catastrophic happens. ⁓ th right now the the interest rates, which is a big, big, big factor in what people are You know, I'm talking on the buying side now. Let's just look at the buying side. We'll talk on the listing side. ⁓ it's a huge opportunity for buyers and and for the buyers that have pretty stable employment, I don't know what field they're in, healthcare, ⁓ educators, whatever, so where somebody has some security in their position. Buyers today. Can purchase properties and it depends on the market, so don't hold me to exactly the market, but prices of twenty nineteen, some cases twenty eighteen in Toronto and the GTA, twenty seventeen prices. So I look at that and I think, okay, let's let's think about this. So you've got a great job. You're ⁓ I don't know, you're a twenty-nine, twenty-eight year old professional. ⁓ you're in a position now that you can buy at l pretty well historic low rates. Bank of Canada's kept it where it's at and you know. The indications are unless things change, they may have a couple of increases before the end of the year, but nobody knows. ⁓ so let's go back to okay, we're 2026. Eight years ago in 2018, if you can buy a property today that are seven or eight years ago, well, how old were you at when you're you're 29 now? So you're what 21? Well, could you buy a house when that's did you have the down payment? Did you have the position? Did you have the the your employment? No, but you have it now, and you can actually buy At the same price that you missed the opportunity because you were too young, you didn't have the job. So, what's holding you back? I mean, look, I don't know if we've hit bottom yet, ⁓ as far as market goes, because people, all economists, are giving different spins on this thing, but it's pretty close to when somebody says I can pick up properties for 2019 prices or 2018 prices, pre pandemic prices. What are people waiting for? Because there's going to be it's going to shift. And I don't know if it'll be 2027, Q1, or Q2. But it will shift and I really believe that it'll shift and things are gonna start coming on and you see the opportunity is huge for me. I you know, we you've you've heard me say to our agents at Street City is you know, twenty twenty one, twenty when when the market was going crazy, you could get a listing and pretty well you'd have thirty offers on it or twenty off I mean I mean maybe not that many, and you know, you'd list it at at X and then offers would come in at X plus a hundred thousand. And it's like, okay, gonna take a day. Well, instead of focusing on listed fame from from a buyer's perspective, that's the same thing right now. It's just it's just flip it over on its head. Buyers are in that position now where now they can take their time, they can find a property, they can do a proper home inspection, they can do their due diligence, they can bring mom and dad to take a look at it, they can catch their breath and sleep on it for a couple of days. I mean, it's the perfect opportunity. For buyers that are in a position to buy to get off the fence and not hold off to what? To maybe, maybe if we're not bottom, it's another one or two percent. So what what in the big scheme of things, that's not going to be a big game changer. So I'm really optimistic about where things are going, and that's on the buyer side. Now, if you say, okay, well, wait a second, what does that mean for the sellers? Well, listen, ⁓ the good thing about this market is buyers and sellers, homes are selling. ⁓ not at the rates that we were at before, but if if somebody has to sell for whatever reason, And they're staying in the market, then it's all relative. If they're selling at a lower price, they're buying at a lower price. If they're selling at a much higher price, if they're waiting to get fifty thousand dollars more because they think, hey, you know what, my neighbor in 2022 got fifty thousand more than you're telling me today. Well, guess what? If that happens for their house, then wherever that whatever they're replacing with with is going to be relatively the same increase. If it's a ten percent increase here, there'll be a ten percent increase there. So so you know what? Talk to a realtor that that understands. the dynamics of the market and I know you do, ⁓ and walk through it. Maybe timing is not right or maybe timing is perfect right now for the buy side or the sell side. So I'm really optimistic about where things are going, ⁓ depending on where you're at.
speaker-1: Yeah, I f I find Costa too, it's the bottom line, right? When I have clients saying, Well, I think I'm gonna hold off until the battery plant opens, for example, in Saint Thomas and values will be higher and my question for them is, is well, what are you going to do at that point? And when they say, Well, I'm gonna buy something and I'm well, you're buying in the same market, so the prices of those houses are going to be higher. So if it if it's your home that you're not comfortable with and you feel like you either want to, you know, upgrade or if you want to Downsize this is a just as good of time as any to do it because you're buying and selling in the same market. And you know, I I had a client that bought in during COVID and they they put two hundred and fifty thousand dollars into renovations in their home and we essentially sold it for thirty thousand dollars more than they paid, but they bought a house in Lake Margaret that would have sold for one point two million for eight hundred thousand. So
speaker-0: But but those are those are the real life situ scenarios and situations that you'll that's where you need to sort of say, okay, contact a professional, get the guidance that you need, share those stories, because that's what helps to say, okay, now I have a better picture. Because it's not just data coming in off of a media release or a news story, a sensational story about what the market is doing. Contact a realtor, get in there. You know, I know how knowledgeable you are, I know how you read all this stuff, but but you analyze it, you you do a deep dive, you you drill down enough to say, Okay, let's make sense of this and find out what they're mi w where they're heading to. So I totally agree with you and I I'm I'm all in on that.
speaker-1: Now, y I mean you've got so much experience over the years as ⁓ an agent, a broker. what are some of the biggest mistakes that you've seen buyers make?
speaker-0: So, you know, there's there's quite a few of them that buyers can make if they're not well informed, if they're if they think they're gonna go it alone. I mean we're living in a D DIY world, do it yourself, kind of look, I'm gonna do it on my own. Same with sellers, I'm gonna try it on my own, I'm gonna you know, I I don't wanna pay for the fee. So I think it's it's not just qualifying for a home. Here's the biggest one. It's factoring in the cost to carry that home. So it's it's you know, factor in your property taxes, factoring upkeep. insurance. I mean things are going up, right? The cost of I mean you don't want to be, ⁓ I got this home, but you know, I'm I'm I'm cash poor at you know, home rich because if the market changes, you've you've got wiped out. So I think the biggest mistake is make sure you understand what the costs are ⁓ and have somebody explain it to you. I mean you start with your realtor and say here's what taxes are insurance, I'm gonna tell you a home like this on you know and I know that you've done this before and I know for a fact that you have. get heating bills, electricity bills, let's see what the lifestyle of these people are and let's see what what kind of costs are. ⁓ what's the home the the roof expectancy? What what is the life expectancy of the major capital expenditures that have to be done? So that you're not buying a home and then within the next twelve months there's gotta be a big capital expenditure. So number one is that. ⁓ what is your strategy? Are you are you looking to to get in and get out in two years? Are you prepared to hold in five years? I are you are you gonna hold in ten years? I still believe and I mean I'm a firm believer that you know historically and statistically real estate has been where ⁓ wealth has happened for the majority of Canadians. ⁓ you know what I've always said if you look back the last ten years. And and I know people say, ⁓ yeah, I you know, I invest in mutual funds. Well you can't live in a mutual fund. At least you can live in a home. Even if the market turns for a couple of years, you'll still have have something you can touch and feel and do all that stuff. So I think from a buyer's perspective, know what what you're getting into. ⁓ and make sure that you can sustain it. and nobody knows the future, but at least have a an idea of what it's gonna cost full on and and pat it a little bit more. Not just to qualify. Because everybody gets excited, I've qualified, I'm pre approved, and you jump in. And it's a matter of making sure they're well educated on the full picture, the full spectrum of home ownership.
speaker-1: Well, you know, Costa, like a a wise man w once said, be the source of the source.
speaker-0: Yeah, yeah. Don't don't be the source. Don't be the source. When somebody says, What about this? Look, I don't know, but I I I'll get the right answer from the right person. So I'm not the source to give you the answer. I love that, Jeff. ⁓ but I'll go to the source of of the professional account, the CPA, the lawyer, the inspector, the engineer, and I'll get back to you with the right answer. I mean I to this day, sorry, I have to say, you know how we talked about this is a people business? I still say ninety eight percent people knowledge, two percent product knowledge. If you can connect with people and find out, you know, what they want and really show that you you got ⁓ and and you know, you built that trust and rapport, the product will sell itself. Because if it's not this people would still ask me, so what is this? Is this like aluminum wiring? Like, I don't know. I'm not gonna pretend to know. What about this furnace? I'm not gonna pr let let's why don't we go through the entire house? Let's look at the property. If this checks off pretty well all the boxes that you think, then let's make a list 'cause it'll be more than the wiring. Let's find out. Well I mean let's find out everything, roof. So but let's be honest, if this house doesn't work for you, do we really care what the wiring is? So so that's where where I think d you go with this, anyway.
speaker-1: Yeah, and I I think right now what's really important is having a good mortgage broker. ⁓ I I think it it's such a tricky market right now. ⁓ you know, people having to pass stress tests and and ⁓ having a clear understanding, like you said, of you know, yes, you're pre approved for this much money, but do you want to live a comfortable lifestyle? And and I I think a mortgage broker's key, ⁓ to to give the buyers that information, especially young people like first-time homebuyers getting in the market find a house they love and you know it it it they're pre-approved for that level, but are they gonna be that comfortable when they get there?
speaker-0: You know, how many times have you seen in your career already, and I know you have, where you're selling a house and and you hear the story the listing agent may share with you about why these people have to sell, they they overcommitted and and those are the mistakes that we have to make sure we protect our clients with. So when I say about the source, you're right. Yeah, you have a good people on in your as a realtor in your group when a consumer says but it should start with you. The conversation should start with hey J and then even if they don't share it, say, you know what, here are the things, but I'm gonna put you in touch with somebody that really knows this this field. And I think that's where it starts with you. And you're right. You don't wanna buy this perfect home you got into it and all of a sudden you can't afford to you know, like like Gavin, take kids out ⁓ deep sea fishing. You wanna make sure you have a lifestyle that's pretty nice, right?
speaker-1: Yes, you do. You well you wanna yeah, you wanna be comfortable for sure. ⁓ now it you
speaker-0: Don't edit that out, Gavin, if you're v if you're doing this.
speaker-1: He he he might. He might. For those for those of you that are watching that don't know, Gavin is is he produces these for me, so and he's he's my marketing director and fantastic and a load. Right. Yeah. so i you know what what kind of role does the broker of record actually take at an office? I know I'm I've been really fortunate with the the the brokers of record I've worked with, Bobby at our office is fantastic. So I I know what the role is, but I'm wondering if you want to share, because you've done the role and you're doing the role now, kind of what kind of things you take on on a daily basis.
speaker-0: You know what, it's a big spectrum of things. It's compliance is a big thing. ⁓ operations and then you have you know, of course we have a leadership team and leadership pla in place, mm other management leaders. I don't like to use the word management, that's kinda so outdated. Other leaders that that to take on the roles. Compliance is a big thing. Wanna make sure that that the brokerage and the agents that work within the brokerage are fully compliant with all the legislation and the regulations. Not only the real estate council of Ontario, but the ⁓ You know, th there's federal legislation, there's provincial legislation, there's a landlord tenant, ⁓ residential tenancies act, if you're dealing with rentals, pretty well have to be pretty savvy and and and have a really good understanding of this legislation. And so, you know, I mean it's it's it's a great, it's a very rewarding position. ⁓ and you're right, ⁓ our current broker of record, Bobby Moroni, is doing an amazing job and very knowledgeable and always accessible. So that's a big thing, accessibility, ⁓ knowledgeable, making sure they're compliant. And and dealing with consumers. If there's a if there's a a problem that arises, and again, you know what, problems happen. ⁓ maybe I I always attribute issues with with two things, either miscommunication or no communication. And and I I attribute that to everything in life. ⁓ the marital relationships, business partnerships. Either either you didn't hear what I said properly or you never called me back, you never caught you never so as a broker of record we always have our open door policy. Look, we exist at a at the brokerage level. to help consumers, buyers and sellers get to where they need to go. Not to be an obstacle get in the way of them selling a house or buying a house. So if there's a I don't know, miscommunication somewhere or something's gone sideways, ⁓ then that's where we, you know, we take the calls, the complaints, ⁓ and we always get back to consumers, always try to resolve the issues to the best of our ability. And ⁓ you know what that's a big part of it. Again, it's it's it's having trust I mean the regulator wants to have trust in the profession, we at Street City want to ensure that that trust is is a level higher. Like if this is the standard for the bar for the profession, ⁓ that's the kind of like the entry level bar. We we strive to make sure that that we you know, we're ab above that and making sure that our clients that we engage with are well protected.
speaker-1: Yeah, for sure. Now, what i one thing I talked to in week one with ⁓ Candace Watson, who's a local ⁓ lawyer, real estate lawyer in Saint Thomas, is I think personally one of the most important parts on an agreement of purchase and sale for buyers and ske and sellers is the schedule A, where clauses are are written up. ⁓ do you wanna chat a little bit about kind of clauses and what kind of things you think people should understand before signing.
speaker-0: Yeah, I mean there's so many clauses. One I I'm gonna tell you one thing that we pride ourselves on at Street City is we probably have a library of customized clauses that are outside of the standard clauses that we use as professionals in the ⁓ in the transacting of real estate. And I mean the pro province of Ontario, the Ontario Real Estate Association, has st standard clauses and standard forms. But, you know, not it's not a one size fits all in every case. And so we pride ourselves on customizing it. So you gotta it starts with What what are the needs and wants and needs and to protect the buyer or the seller, whoever we're representing. And then the clauses that Schedule A, other than the preprinted section, which has got a lot of information and every agent should know what that means. ⁓ you know, when we used to transact, I I didn't read all that stuff, but I would go over the clause, say, here's what this means and this is what this means. So the nice thing about the clauses is where you actually get to ⁓ Is you're like an artist. I always think like real realtors are like an artist. It's this blank canvas and we're gonna put on what we want when we represent our clients. So of course there's certain things that have to be put in there. Those are the standard ones about hey, here's a deposit, it's twenty thousand dollars, for example. ⁓ on closing date, whatever that closing date is, because with the offer there's twenty, but we're gonna close I don't know, what are we, ⁓ two months from now? ⁓ gotta pay the balance to the seller. So there's a standard clause. Other than that, what do you need to do? You talk to your clients and you say, Okay. We should put a financing condition in here to make sure that you're pre-qualified at the rate that you need so you fully understand what you're going to be paying. And with the mortgage specialist that I'm going to put you in charge with or in in touch with, you know, find out what your prepayment is. ⁓ if there's going to be any penalty, do you want to go with a variable rate or a fixed rate? I mean that's out of my you know, ⁓ out of my ability as a realtor to give you that information, but I'm gonna go to the source and make sure you're covered off and whatever you decide. And so There's a clause there for financing. And if you don't get the financing that you want to your satisfactory, you know, basic to your satisfaction, then we're just gonna stop the deal right here. Same thing with a home inspection or a property inspection. Let's find out. And if it's not a property inspection, here's where it gets customized. Maybe our client says, Look, I'm really good with the financing stuff because I've got a plan B. I don't need to go get a mortgage. And as far as I'm as far as a home inspection goes, I don't want to scare the sellers because I really want to go and negotiate hard. And so maybe then you That's where you talk to the realtor and I know Jeff you've done this because you've customized a lot of the clauses. Maybe it's just, hey, there's one area that we're not sure of because it's kinda like ⁓ winter and the central air is not working. Why don't we put in a condition specifically to make sure that when we buy the house and in the summer when we want to turn on the air that somehow we're protected? 'Cause we can't check it right now in the winter. There's one example or or about the pool or, you know, with the roof, 'cause we can't really tell right now. Or whatever the case ⁓ just we just want to find out about the furnace. So There's a lot of that's where the magic happens and the creativity happens. And I'm not saying creativity, I mean talking about legal creativity. Talk to the buyer, talk to the seller, what is it that we need? What here's what my recommendation is. Obviously this is always driven by the consumer, our client, but they're looking direction from us. And so we always I know that you do the same thing, you say here's what I think we need to be concerned about. I would suggest this, this, this and this. The client may say, you know, I I'm Cool with everything that you said, but I don't need it. I'm I'm good, I just wanna get this done. And then as long as you know, they acknowledge in writing that we had the conversation, here's what we recommended, and they decided not to include it, that's as we say, you know what, they're the boss. They they d they direct us how you wanna proceed. Does that make sense?
speaker-1: It does it does, for sure. And you know, I'm I'm shocked, Costa, sometimes that you know, I'm I'm selling a property with a pool in the dead of winter and and I receive an offer and it does not include a condition that the pool will be in good working order by May the fourth. Even if the closing is in January, like it I I mean you have to make sure that your buyers are protected.
speaker-0: I know. protected. Yes. And that's why I know that you s you specifically I've I've I mean I've seen I as part of the br the management leadership team I've seen the the clauses you put in there. You're right. Like I get that you're buying a house now in November, closing January. But how do how did you put well you gotta put a clause in there with making sure it's pretty clear that when this pool opens, that the seller's going to be responsible, that it's warrant and representing this in good working order, and then if it's not within a period of time, blah blah blah. So anyway, y you're a hundred that's a perfect example.
speaker-1: Yeah, it's it's I I I find it I f I find it shocking actually when when those things comes come out. d just do you see any changes coming in the future as far as regulation and policies go? I I know you're kind of you you're you're in the in the field a lot, so I'm wondering if there's anything that you think might be coming.
speaker-0: Yeah, I think there will be more tightening of regulations, which is a good thing. I think it's ⁓ the regulator, the real estate council of Ontario has make it quite clear that they wanna make sure that that consumers when they when they you know, when they engage with a with a realtor or a registrant, that their protection is there, that they know what they're dealing with. So I think that they're gonna tighten it even more. They're gonna make it more consumer centric focused and and that's a good thing because again, as we said earlier on, the true professionals are gonna welcome that. ⁓ and ⁓ and I think it's gonna be great for consumers overall. And I and I you know, not only on a regulatory perspective are things gonna benefit the consumer, I also believe with technology and AI coming and which is coming at us so fast. It's not a question of, you know, should I use Chat GPT? It's so much more than that right now. Having said that, ⁓ that's where a realtor needs to sort of understand that that even if they're not fully engaged in in the AI tools, their consum their clients will be. So you just have to make sure because they're still gonna come to you. They're still if if you're the the recommended referral from maybe mom and dad said, ⁓ you gotta use Costa or you gotta use Jeff, ⁓ they're gonna come to you. So you you should be at least have knowledge ⁓ knowledgeable enough to say, okay, you brought this information, they're still gonna wanna know, decipher it for me. So I got a ton of stuff that came at me so fast. But what what what is it not gonna tell you? Like you're gonna get information, whatever it is. I don't know. When you engage a realtor, do you know that the house here Sold for this price, you've got that information and it but do you know the reasons why? Do you know how long do you know that's where an agent will come in and say, okay, let me give you the let's go drill down a couple more layers so that now you understand why this one went for here and why this one went for here and what the diff and where yours will fit in. So that's the kind of stuff that that's why I say that I really believe realtors will be at the center of the transaction. It may be in a different capacity, but what we bring to the table, I don't think ⁓ technology will be able to replace that because it's not like making a bad decision on a poor hotel room. I mean this is the biggest you know, this is the biggest investment. Yeah, that's right. So it's like, ⁓ man, you know, I've I spent an extra thirty bucks. I could have saved thirty bucks, had it you know, it's not like that. It's like I wanna make sure that I speak to somebody that gets it. So anyway, I'm really optimistic about the role. I'm optimistic about giving a lot of power in the hands of the consumers. That's a good thing. ⁓ and they'll engage with the true professionals that understand that.
speaker-1: ⁓ so what are your closing thoughts? Like what are your kind of biggest takeaways that you want to pass on to anybody that might be listening today?
speaker-0: ⁓ if if here's my big takeaway. ⁓ on the buying side, if you're in a position where you have some pretty solid employment, you're confident, you know what, and ⁓ and and and get and you're really on the fence, you've been looking for the last year and a half, two years, get in the game because the it's almost the perfect conditions right now for you to buy. You gotta y you get to pick and choose, you get to catch your breath, you get to get All the due diligence that you want to find out information on. And get a realtor that's gonna really have your back and and and and and negotiate for you hard. And and that doesn't mean that you're gonna get every deal because I don't want anybody thinking, ⁓ my god, this guy's saying that the market's off and you're gonna get it. No. Negotiating hard means because you gotta look at here's what it means. Maybe there's a there's a fair market price, and I'm gonna pick a number that should be six fifty on a house, six fifty to six seventy-five. And you know what, somebody lists ⁓ a property they're still thinking 20 22 23 because their neighbor got that and they're gonna list it at 8299 and eventually time will because you can't fake the market out it doesn't matter what price you put on there buyers are going to be looking at the information they're gonna engage a realtor and they're gonna find out so so my point is it may end up selling six months eight months later for six seventy five where i it it should have been and somebody may perceive ⁓ my god well You know what, they got a hundred and twenty thousand off the price. Then the next house, the next sale could have been listed at six seventy-nine nine and they got six seventy-eight or whatever the number. You have to know the background information on this. So I think engage a realtor. The timing is perfect. If you've got employment and you feel confident and you've been looking for a while, it it's the time. Now's the time. On the selling side, same thing. If you have to sell, great, then ⁓ you know, engage a realtor. If you're have that fulsome discussion as to where my plans are, why I have to sell, what my motivation is, how do I get out of this, be realistic. The market is not gonna lie. The market screams at us every day when a listing goes on the on the on the on the market. It either and what I mean by that, you put a price out there and it and it gets live on realtor.cn on MLS, if nobody shows it or sees it or requests to see it for the in the first ten days, then the market is talking to us, is screaming at us. It's basically saying, I think you've missed the mark. ⁓ if we blow it as a realtor, and I don't think many times we do, but let's say we do, that we've underpriced it, then you know what's gonna happen? You're gonna have like thirty showings, you're gonna have multiple offers, even in this market. There's many, many situations where there are multiple offers, and the market's gonna say, Hey, listen, I think you underpriced it at six twenty nine nine, and here's an offer for six forty and six thirty five and six fifty. So there's listen.
speaker-1: Market
speaker-0: Exactly. So I think I think that those are my my ⁓ my words, but at at in all cases, look, consumers want a trusted advisor to give them guidance. We'll always have a role in in in in navigating and and making sure things make sense of what data's out there and negotiating hard on their behalf. And those are the things that I think are always going to keep the realtor valuable. When you got the right person that cares about their client, ⁓ is knowledgeable, Aligns themselves with a brokerage that that is experienced in this to help navigate them. And that's one thing. It doesn't matter if you know if you're new to the industry, new to the profession or not, ⁓ they're not going to be practicing on their client. If they align themselves with a brokerage that gets it, I don't care if you're three months in the business, they're not going to be practicing on those clients because we work as a team and they have the ability to reach out to the team at leadership and and make sure that that and I know that you've helped and mentor young agents as well. So that's my those are my closing thoughts.
speaker-1: Awesome. Well, thank you so much for your time, Costa. ⁓ before I let you go, I just wanted to say that I'm starting something new. ⁓ each week I am going to be featuring a small business ⁓ in Elgin County. ⁓ today we're gonna highlight a great local spot called Streamliners. It's at 767 Talbot Street in St. Thomas. It's a great place, little cafe, go for a variety of coffees, baked goods in the mornings. fantastic spot to stop and catch up with friends. ⁓ You know, I love to support local businesses. It's what makes our community what it is. So be be sure to try and check them out. And let's get to closing. Thanks so much, Costa.
speaker-0: Thank you, Jeff.
speaker-0: Wow, well Jeff, thank you. I didn't expect that kind of an intro. ⁓ you I'd like to be known as Costa, he's a really nice guy kind of thing. So there you go. I think he's a hugger. That's right.
speaker-1: And he's a hugger. And he's a hugger. ⁓ I I wondered if you wanted to start off and kind of just talk about your role as the the broker of record and as kind of your roles as you moved forward in your career.
speaker-0: Yeah, so listen, I would it's been a wonderful career. It's still going, it's ongoing. ⁓ as ⁓ as you mentioned, nineteen eighty-seven is when I got licensed, or thirty-nine years ago. ⁓ in two thousand and eight, ⁓ my ⁓ lovely wife and business partner and I decided that we were ⁓ gonna open up our own brokerage. That's after ⁓ sixteen years of trading with ⁓ three large franchise company, different brands, being always in the top three of their organizations, two hundred agents, two hundred and fifty agents. ⁓ No assistance, just just Mary and I, and then we decide, hey, listen, you know what? I I here's here's my take on life. Philosophically, I have this philosophy from the from the day you're born until the day that you die, we don't know this day, but open as many doors as you can in life. Never close them. You don't have to go through them all. So outside philosophically, that's my outlook. And of course I have Mary who not only buys into that philosophy, but she doesn't only look in the door, she goes in the room and starts moving around furniture and scares the scares the crap out of me. But the reality is that's how we end up. Ended up having ⁓ starting a brokerage of our own. ⁓ started with two people, just Mary and I, and organically grew no no recruiting campaigns out to agents. It's ⁓ over the course of working in the profession for so many years, working with great realtors. Once we turned on the lights that we were open for business, ⁓ people started coming in. So I gotta tell you, from May of 2008, which was a recession year for those of you that have been around in 2008. If you remember that, ⁓ end of ⁓ by December, we had 55 agents. A full year later, we were over a 120 agents. ⁓ So it's been a good ride. And I don't even know if I answered your question, but from there I got into it. Yes, organized real estate and all the things that you mentioned about being president of the National Association, Provincial Association, and broker of record of Street City as ⁓ as founding ⁓ owners. ⁓ and I've just recently ⁓ been ⁓ afforded an opportunity ⁓ to become the interim broker of record for our sister company in Toronto, right at home realty, which ⁓ has over 6,200 eight. and ⁓ is the largest independent ⁓ brokerage in Canada with that many agents. So really excited about the next step as well.
speaker-1: So how have you seen the real estate industry evolve over the years?
speaker-0: You know, Jeff, that's a great question and ⁓ y you know, a lot of people ask that. It's like, ⁓ my god, isn't it different from when you started in eighty seven? The reality is the wheel is round. There's no there's no reason to reinvent the wheel. It's it works beautifully. ⁓ you know what? This is a people business and that's what I tell everybody. And it doesn't matter how much technology gets ahead of this and technology's a wonderful tool. AI coming, it's it's leaps and bounds, light years ahead, wonderful tool. But the reality is, It's a people business and people still want to connect with somebody that's going to make sense of all the data that's so readily available. I mean, here's one thing that we've been saying. People don't care what you know until they know that you care. Once somebody knows that ⁓ I care about their situation, their their new addition to the family, ⁓ unfortunately the death of the family, a new job, a loss of a job, whatever the the motivation is for for people to look to buy or sell real estate, they need to know. that the people the person that they're talking to, the realtor they're speaking to, really cares. Other than that, it's like Charlie Brown. Wah wah, whatever you're talking about. So so it's it's a it's it's a people business. It has always been a people business, and it will always be a people business. So of course things are going to change, technologies are going to change, things may move at a faster pace, but ⁓ the the the crux of it, ⁓ and I that's why I firmly believe realtors will always be at the center of a transaction. It might take a different form But they'll always be involved to help consumers navigate through this process.
speaker-1: Yeah, for sure. And it it is one of my one of the things I like most about real estate is is the people part of it. And I think, you know, coming from a a teaching background, ⁓ and working with children for so many years, it was something I I really like. It's about hate to say it, it's about the only thing I miss about teaching is the kids and the the relationship building. But I'm in a different profession now where I get to build, you know, long term res ⁓ relationships with people and, you know, hopefully sell sell
speaker-0: And Jeff, when you and I know you'll be in it as long as I am, this is the beauty of it. You'll be selling to their kids and maybe their grandkids, depending on how long you're gonna be. Because because it is it is a people business and it's those connections and clients and consumers become lifelong friends and I mean that. I ⁓ some of our best friends in the pr in in in in our lives ⁓ have have come through the connections we made in real estate. And I know I and I know you ⁓ have the same philosophical view and that's what you treat your business, which is, you know, attributable to ⁓ why you're so successful.
speaker-1: Well, you know, in my in my it's funny, ten years in in ⁓ real estate now and I I sold a house ⁓ a couple years ago actually to a former grade four student. So it's it's it is it's you know, the the relationships are important and and lifelong for sure. ⁓ what do you is are there things that you think the public under ⁓ misunderstands about the real estate market?
speaker-0: you know what? That I mean that's a great question as well. And I don't know, sometimes there's misconceptions of how it works. you know, sometimes they have we have relationships with people and and they trust us implicitly and they know that we care about them and you know sometimes ⁓ these clients or consumers don't want to bother us and they figure, ⁓ you know what, I'm just gonna, you know, walk around and let you know when I'm interested and you know I won't I won't waste your time because I respect you. The reality of it is ⁓ and this is one thing that we need to educate people. consumers more of is how how do how does real estate work in the organized world of real estate. I mean there's there's a a listing side, there's a buyer side and ideally and and now with the legislation has changed since ⁓ twenty twenty three under the Trust and Real Estate Services Act where we designate specific agents that represent a client's best interest. So even though you and I could be in the same brokerage in the same brand ⁓ You know, in the past it used to be, ⁓ everybody under the Street City umbrella had to work for the client that you were working with. You may not even have known them or I may have kno known your client, but by this by default I was actually working for their interests. And they changed the legislation to give a clear and I'm gonna give a big shout out to the regulator for this, to try to make things easier for the consumers. And I mean the regulator, the real estate council of Ontario's mandate is is consumer confidence and consumer trust in the real estate profession and the industry and And so they've really done a great job in clarifying in simple, plain language who works for whom, how how does real estate work, representation, and so you know, it comes back down to that. I mean that part's okay, and I think that's one thing consumers need to know is how does it work? Like I know you may want to go out and do some searching on your own, but listen, engage my services. That's what I'm here for. I I will represent you, you explain how representation works, fiduciary duty is to promote and protect the client's interest. And ⁓ you're not taxing my time. Let me work hard for you and and and and explain the process and how it works. And I know there's a listing side and there's a buyer side, but the reality of it is the expertise of realtors, when you get realtors that know what they're doing, ⁓ it doesn't matter if you work for the seller on the listing side or I work for the buyer, if we're not putting a deal together, nobody's working tonight. ⁓ and the buyer and our clients aren't happy. So there's a lot of stuff in there when you when you're dealing with true professionals. ⁓ helping consumers navigate through the process, full transparency in what's supposed to happen, how it happens, you know, full disclosure. And I know that that we you know, we pride ourselves on that and and you're a perfect example of how you take that on in a brokerage and how you ⁓ deal with your clients.
speaker-1: Well, you know, Costa, it's when I meet with my clients, it's it's the first conversation I have. ⁓ and it's it's funny that ⁓ people didn't know and people who have bought and sold many houses, they did not know that when they purchased a property through a listing agent, that that agent a lot of the times was not representing them. They had no idea. Right. And I think un I think unfortunately during COVID, a lot of buyers were really taken advantage of And and I think this change in legislation is is huge. And I think it's a really good thing that that that was done.
speaker-0: Well you know, I I I I just wanna piggyback on that because you're a hundred percent correct. The true professionals that that that right th that that understand how it's supposed to work about full disclosure and transparency have embraced the new legislation because it just makes it so much more clear. ⁓ so I don't think that there's any pushback from from realtors that that that are are, you know, transacting out in the field and those are the ones that have embraced this and they're you know, it's helped the consumers as well for sure.
speaker-1: Yeah, yeah. Okay Costa, I'm gonna ask you a question that I get asked every day. Sure. What do you think about the current state of the market?
speaker-0: You know, that is a honestly, I I I love to to to tell my take on this thing. And I know that look, first of all, even though we're local in our markets, we're globally connected. So you know what? We're local but we're global. We get that. Geopolitically, what's happening in the world around the globe is going to affect what's happening in London and St. Thomas and Ingrid. In a little it doesn't matter where we are, because that's the impact of of how connected we are globally. So what I think is gonna happen, here's what I'm thinking. Look, right now ⁓ the Bank of Canada rate just left the rates where they are, which is great, ⁓ for the month of April. Two point two five. That is historically really low. Save and except for the pandemic, which was at point two five, which we'll probably never ever see again. I mean, unless another pandemic or something catastrophic happens. ⁓ th right now the the interest rates, which is a big, big, big factor in what people are You know, I'm talking on the buying side now. Let's just look at the buying side. We'll talk on the listing side. ⁓ it's a huge opportunity for buyers and and for the buyers that have pretty stable employment, I don't know what field they're in, healthcare, ⁓ educators, whatever, so where somebody has some security in their position. Buyers today. Can purchase properties and it depends on the market, so don't hold me to exactly the market, but prices of twenty nineteen, some cases twenty eighteen in Toronto and the GTA, twenty seventeen prices. So I look at that and I think, okay, let's let's think about this. So you've got a great job. You're ⁓ I don't know, you're a twenty-nine, twenty-eight year old professional. ⁓ you're in a position now that you can buy at l pretty well historic low rates. Bank of Canada's kept it where it's at and you know. The indications are unless things change, they may have a couple of increases before the end of the year, but nobody knows. ⁓ so let's go back to okay, we're 2026. Eight years ago in 2018, if you can buy a property today that are seven or eight years ago, well, how old were you at when you're you're 29 now? So you're what 21? Well, could you buy a house when that's did you have the down payment? Did you have the position? Did you have the the your employment? No, but you have it now, and you can actually buy At the same price that you missed the opportunity because you were too young, you didn't have the job. So, what's holding you back? I mean, look, I don't know if we've hit bottom yet, ⁓ as far as market goes, because people, all economists, are giving different spins on this thing, but it's pretty close to when somebody says I can pick up properties for 2019 prices or 2018 prices, pre pandemic prices. What are people waiting for? Because there's going to be it's going to shift. And I don't know if it'll be 2027, Q1, or Q2. But it will shift and I really believe that it'll shift and things are gonna start coming on and you see the opportunity is huge for me. I you know, we you've you've heard me say to our agents at Street City is you know, twenty twenty one, twenty when when the market was going crazy, you could get a listing and pretty well you'd have thirty offers on it or twenty off I mean I mean maybe not that many, and you know, you'd list it at at X and then offers would come in at X plus a hundred thousand. And it's like, okay, gonna take a day. Well, instead of focusing on listed fame from from a buyer's perspective, that's the same thing right now. It's just it's just flip it over on its head. Buyers are in that position now where now they can take their time, they can find a property, they can do a proper home inspection, they can do their due diligence, they can bring mom and dad to take a look at it, they can catch their breath and sleep on it for a couple of days. I mean, it's the perfect opportunity. For buyers that are in a position to buy to get off the fence and not hold off to what? To maybe, maybe if we're not bottom, it's another one or two percent. So what what in the big scheme of things, that's not going to be a big game changer. So I'm really optimistic about where things are going, and that's on the buyer side. Now, if you say, okay, well, wait a second, what does that mean for the sellers? Well, listen, ⁓ the good thing about this market is buyers and sellers, homes are selling. ⁓ not at the rates that we were at before, but if if somebody has to sell for whatever reason, And they're staying in the market, then it's all relative. If they're selling at a lower price, they're buying at a lower price. If they're selling at a much higher price, if they're waiting to get fifty thousand dollars more because they think, hey, you know what, my neighbor in 2022 got fifty thousand more than you're telling me today. Well, guess what? If that happens for their house, then wherever that whatever they're replacing with with is going to be relatively the same increase. If it's a ten percent increase here, there'll be a ten percent increase there. So so you know what? Talk to a realtor that that understands. the dynamics of the market and I know you do, ⁓ and walk through it. Maybe timing is not right or maybe timing is perfect right now for the buy side or the sell side. So I'm really optimistic about where things are going, ⁓ depending on where you're at.
speaker-1: Yeah, I f I find Costa too, it's the bottom line, right? When I have clients saying, Well, I think I'm gonna hold off until the battery plant opens, for example, in Saint Thomas and values will be higher and my question for them is, is well, what are you going to do at that point? And when they say, Well, I'm gonna buy something and I'm well, you're buying in the same market, so the prices of those houses are going to be higher. So if it if it's your home that you're not comfortable with and you feel like you either want to, you know, upgrade or if you want to Downsize this is a just as good of time as any to do it because you're buying and selling in the same market. And you know, I I had a client that bought in during COVID and they they put two hundred and fifty thousand dollars into renovations in their home and we essentially sold it for thirty thousand dollars more than they paid, but they bought a house in Lake Margaret that would have sold for one point two million for eight hundred thousand. So
speaker-0: But but those are those are the real life situ scenarios and situations that you'll that's where you need to sort of say, okay, contact a professional, get the guidance that you need, share those stories, because that's what helps to say, okay, now I have a better picture. Because it's not just data coming in off of a media release or a news story, a sensational story about what the market is doing. Contact a realtor, get in there. You know, I know how knowledgeable you are, I know how you read all this stuff, but but you analyze it, you you do a deep dive, you you drill down enough to say, Okay, let's make sense of this and find out what they're mi w where they're heading to. So I totally agree with you and I I'm I'm all in on that.
speaker-1: Now, y I mean you've got so much experience over the years as ⁓ an agent, a broker. what are some of the biggest mistakes that you've seen buyers make?
speaker-0: So, you know, there's there's quite a few of them that buyers can make if they're not well informed, if they're if they think they're gonna go it alone. I mean we're living in a D DIY world, do it yourself, kind of look, I'm gonna do it on my own. Same with sellers, I'm gonna try it on my own, I'm gonna you know, I I don't wanna pay for the fee. So I think it's it's not just qualifying for a home. Here's the biggest one. It's factoring in the cost to carry that home. So it's it's you know, factor in your property taxes, factoring upkeep. insurance. I mean things are going up, right? The cost of I mean you don't want to be, ⁓ I got this home, but you know, I'm I'm I'm cash poor at you know, home rich because if the market changes, you've you've got wiped out. So I think the biggest mistake is make sure you understand what the costs are ⁓ and have somebody explain it to you. I mean you start with your realtor and say here's what taxes are insurance, I'm gonna tell you a home like this on you know and I know that you've done this before and I know for a fact that you have. get heating bills, electricity bills, let's see what the lifestyle of these people are and let's see what what kind of costs are. ⁓ what's the home the the roof expectancy? What what is the life expectancy of the major capital expenditures that have to be done? So that you're not buying a home and then within the next twelve months there's gotta be a big capital expenditure. So number one is that. ⁓ what is your strategy? Are you are you looking to to get in and get out in two years? Are you prepared to hold in five years? I are you are you gonna hold in ten years? I still believe and I mean I'm a firm believer that you know historically and statistically real estate has been where ⁓ wealth has happened for the majority of Canadians. ⁓ you know what I've always said if you look back the last ten years. And and I know people say, ⁓ yeah, I you know, I invest in mutual funds. Well you can't live in a mutual fund. At least you can live in a home. Even if the market turns for a couple of years, you'll still have have something you can touch and feel and do all that stuff. So I think from a buyer's perspective, know what what you're getting into. ⁓ and make sure that you can sustain it. and nobody knows the future, but at least have a an idea of what it's gonna cost full on and and pat it a little bit more. Not just to qualify. Because everybody gets excited, I've qualified, I'm pre approved, and you jump in. And it's a matter of making sure they're well educated on the full picture, the full spectrum of home ownership.
speaker-1: Well, you know, Costa, like a a wise man w once said, be the source of the source.
speaker-0: Yeah, yeah. Don't don't be the source. Don't be the source. When somebody says, What about this? Look, I don't know, but I I I'll get the right answer from the right person. So I'm not the source to give you the answer. I love that, Jeff. ⁓ but I'll go to the source of of the professional account, the CPA, the lawyer, the inspector, the engineer, and I'll get back to you with the right answer. I mean I to this day, sorry, I have to say, you know how we talked about this is a people business? I still say ninety eight percent people knowledge, two percent product knowledge. If you can connect with people and find out, you know, what they want and really show that you you got ⁓ and and you know, you built that trust and rapport, the product will sell itself. Because if it's not this people would still ask me, so what is this? Is this like aluminum wiring? Like, I don't know. I'm not gonna pretend to know. What about this furnace? I'm not gonna pr let let's why don't we go through the entire house? Let's look at the property. If this checks off pretty well all the boxes that you think, then let's make a list 'cause it'll be more than the wiring. Let's find out. Well I mean let's find out everything, roof. So but let's be honest, if this house doesn't work for you, do we really care what the wiring is? So so that's where where I think d you go with this, anyway.
speaker-1: Yeah, and I I think right now what's really important is having a good mortgage broker. ⁓ I I think it it's such a tricky market right now. ⁓ you know, people having to pass stress tests and and ⁓ having a clear understanding, like you said, of you know, yes, you're pre approved for this much money, but do you want to live a comfortable lifestyle? And and I I think a mortgage broker's key, ⁓ to to give the buyers that information, especially young people like first-time homebuyers getting in the market find a house they love and you know it it it they're pre-approved for that level, but are they gonna be that comfortable when they get there?
speaker-0: You know, how many times have you seen in your career already, and I know you have, where you're selling a house and and you hear the story the listing agent may share with you about why these people have to sell, they they overcommitted and and those are the mistakes that we have to make sure we protect our clients with. So when I say about the source, you're right. Yeah, you have a good people on in your as a realtor in your group when a consumer says but it should start with you. The conversation should start with hey J and then even if they don't share it, say, you know what, here are the things, but I'm gonna put you in touch with somebody that really knows this this field. And I think that's where it starts with you. And you're right. You don't wanna buy this perfect home you got into it and all of a sudden you can't afford to you know, like like Gavin, take kids out ⁓ deep sea fishing. You wanna make sure you have a lifestyle that's pretty nice, right?
speaker-1: Yes, you do. You well you wanna yeah, you wanna be comfortable for sure. ⁓ now it you
speaker-0: Don't edit that out, Gavin, if you're v if you're doing this.
speaker-1: He he he might. He might. For those for those of you that are watching that don't know, Gavin is is he produces these for me, so and he's he's my marketing director and fantastic and a load. Right. Yeah. so i you know what what kind of role does the broker of record actually take at an office? I know I'm I've been really fortunate with the the the brokers of record I've worked with, Bobby at our office is fantastic. So I I know what the role is, but I'm wondering if you want to share, because you've done the role and you're doing the role now, kind of what kind of things you take on on a daily basis.
speaker-0: You know what, it's a big spectrum of things. It's compliance is a big thing. ⁓ operations and then you have you know, of course we have a leadership team and leadership pla in place, mm other management leaders. I don't like to use the word management, that's kinda so outdated. Other leaders that that to take on the roles. Compliance is a big thing. Wanna make sure that that the brokerage and the agents that work within the brokerage are fully compliant with all the legislation and the regulations. Not only the real estate council of Ontario, but the ⁓ You know, th there's federal legislation, there's provincial legislation, there's a landlord tenant, ⁓ residential tenancies act, if you're dealing with rentals, pretty well have to be pretty savvy and and and have a really good understanding of this legislation. And so, you know, I mean it's it's it's a great, it's a very rewarding position. ⁓ and you're right, ⁓ our current broker of record, Bobby Moroni, is doing an amazing job and very knowledgeable and always accessible. So that's a big thing, accessibility, ⁓ knowledgeable, making sure they're compliant. And and dealing with consumers. If there's a if there's a a problem that arises, and again, you know what, problems happen. ⁓ maybe I I always attribute issues with with two things, either miscommunication or no communication. And and I I attribute that to everything in life. ⁓ the marital relationships, business partnerships. Either either you didn't hear what I said properly or you never called me back, you never caught you never so as a broker of record we always have our open door policy. Look, we exist at a at the brokerage level. to help consumers, buyers and sellers get to where they need to go. Not to be an obstacle get in the way of them selling a house or buying a house. So if there's a I don't know, miscommunication somewhere or something's gone sideways, ⁓ then that's where we, you know, we take the calls, the complaints, ⁓ and we always get back to consumers, always try to resolve the issues to the best of our ability. And ⁓ you know what that's a big part of it. Again, it's it's it's having trust I mean the regulator wants to have trust in the profession, we at Street City want to ensure that that trust is is a level higher. Like if this is the standard for the bar for the profession, ⁓ that's the kind of like the entry level bar. We we strive to make sure that that we you know, we're ab above that and making sure that our clients that we engage with are well protected.
speaker-1: Yeah, for sure. Now, what i one thing I talked to in week one with ⁓ Candace Watson, who's a local ⁓ lawyer, real estate lawyer in Saint Thomas, is I think personally one of the most important parts on an agreement of purchase and sale for buyers and ske and sellers is the schedule A, where clauses are are written up. ⁓ do you wanna chat a little bit about kind of clauses and what kind of things you think people should understand before signing.
speaker-0: Yeah, I mean there's so many clauses. One I I'm gonna tell you one thing that we pride ourselves on at Street City is we probably have a library of customized clauses that are outside of the standard clauses that we use as professionals in the ⁓ in the transacting of real estate. And I mean the pro province of Ontario, the Ontario Real Estate Association, has st standard clauses and standard forms. But, you know, not it's not a one size fits all in every case. And so we pride ourselves on customizing it. So you gotta it starts with What what are the needs and wants and needs and to protect the buyer or the seller, whoever we're representing. And then the clauses that Schedule A, other than the preprinted section, which has got a lot of information and every agent should know what that means. ⁓ you know, when we used to transact, I I didn't read all that stuff, but I would go over the clause, say, here's what this means and this is what this means. So the nice thing about the clauses is where you actually get to ⁓ Is you're like an artist. I always think like real realtors are like an artist. It's this blank canvas and we're gonna put on what we want when we represent our clients. So of course there's certain things that have to be put in there. Those are the standard ones about hey, here's a deposit, it's twenty thousand dollars, for example. ⁓ on closing date, whatever that closing date is, because with the offer there's twenty, but we're gonna close I don't know, what are we, ⁓ two months from now? ⁓ gotta pay the balance to the seller. So there's a standard clause. Other than that, what do you need to do? You talk to your clients and you say, Okay. We should put a financing condition in here to make sure that you're pre-qualified at the rate that you need so you fully understand what you're going to be paying. And with the mortgage specialist that I'm going to put you in charge with or in in touch with, you know, find out what your prepayment is. ⁓ if there's going to be any penalty, do you want to go with a variable rate or a fixed rate? I mean that's out of my you know, ⁓ out of my ability as a realtor to give you that information, but I'm gonna go to the source and make sure you're covered off and whatever you decide. And so There's a clause there for financing. And if you don't get the financing that you want to your satisfactory, you know, basic to your satisfaction, then we're just gonna stop the deal right here. Same thing with a home inspection or a property inspection. Let's find out. And if it's not a property inspection, here's where it gets customized. Maybe our client says, Look, I'm really good with the financing stuff because I've got a plan B. I don't need to go get a mortgage. And as far as I'm as far as a home inspection goes, I don't want to scare the sellers because I really want to go and negotiate hard. And so maybe then you That's where you talk to the realtor and I know Jeff you've done this because you've customized a lot of the clauses. Maybe it's just, hey, there's one area that we're not sure of because it's kinda like ⁓ winter and the central air is not working. Why don't we put in a condition specifically to make sure that when we buy the house and in the summer when we want to turn on the air that somehow we're protected? 'Cause we can't check it right now in the winter. There's one example or or about the pool or, you know, with the roof, 'cause we can't really tell right now. Or whatever the case ⁓ just we just want to find out about the furnace. So There's a lot of that's where the magic happens and the creativity happens. And I'm not saying creativity, I mean talking about legal creativity. Talk to the buyer, talk to the seller, what is it that we need? What here's what my recommendation is. Obviously this is always driven by the consumer, our client, but they're looking direction from us. And so we always I know that you do the same thing, you say here's what I think we need to be concerned about. I would suggest this, this, this and this. The client may say, you know, I I'm Cool with everything that you said, but I don't need it. I'm I'm good, I just wanna get this done. And then as long as you know, they acknowledge in writing that we had the conversation, here's what we recommended, and they decided not to include it, that's as we say, you know what, they're the boss. They they d they direct us how you wanna proceed. Does that make sense?
speaker-1: It does it does, for sure. And you know, I'm I'm shocked, Costa, sometimes that you know, I'm I'm selling a property with a pool in the dead of winter and and I receive an offer and it does not include a condition that the pool will be in good working order by May the fourth. Even if the closing is in January, like it I I mean you have to make sure that your buyers are protected.
speaker-0: I know. protected. Yes. And that's why I know that you s you specifically I've I've I mean I've seen I as part of the br the management leadership team I've seen the the clauses you put in there. You're right. Like I get that you're buying a house now in November, closing January. But how do how did you put well you gotta put a clause in there with making sure it's pretty clear that when this pool opens, that the seller's going to be responsible, that it's warrant and representing this in good working order, and then if it's not within a period of time, blah blah blah. So anyway, y you're a hundred that's a perfect example.
speaker-1: Yeah, it's it's I I I find it I f I find it shocking actually when when those things comes come out. d just do you see any changes coming in the future as far as regulation and policies go? I I know you're kind of you you're you're in the in the field a lot, so I'm wondering if there's anything that you think might be coming.
speaker-0: Yeah, I think there will be more tightening of regulations, which is a good thing. I think it's ⁓ the regulator, the real estate council of Ontario has make it quite clear that they wanna make sure that that consumers when they when they you know, when they engage with a with a realtor or a registrant, that their protection is there, that they know what they're dealing with. So I think that they're gonna tighten it even more. They're gonna make it more consumer centric focused and and that's a good thing because again, as we said earlier on, the true professionals are gonna welcome that. ⁓ and ⁓ and I think it's gonna be great for consumers overall. And I and I you know, not only on a regulatory perspective are things gonna benefit the consumer, I also believe with technology and AI coming and which is coming at us so fast. It's not a question of, you know, should I use Chat GPT? It's so much more than that right now. Having said that, ⁓ that's where a realtor needs to sort of understand that that even if they're not fully engaged in in the AI tools, their consum their clients will be. So you just have to make sure because they're still gonna come to you. They're still if if you're the the recommended referral from maybe mom and dad said, ⁓ you gotta use Costa or you gotta use Jeff, ⁓ they're gonna come to you. So you you should be at least have knowledge ⁓ knowledgeable enough to say, okay, you brought this information, they're still gonna wanna know, decipher it for me. So I got a ton of stuff that came at me so fast. But what what what is it not gonna tell you? Like you're gonna get information, whatever it is. I don't know. When you engage a realtor, do you know that the house here Sold for this price, you've got that information and it but do you know the reasons why? Do you know how long do you know that's where an agent will come in and say, okay, let me give you the let's go drill down a couple more layers so that now you understand why this one went for here and why this one went for here and what the diff and where yours will fit in. So that's the kind of stuff that that's why I say that I really believe realtors will be at the center of the transaction. It may be in a different capacity, but what we bring to the table, I don't think ⁓ technology will be able to replace that because it's not like making a bad decision on a poor hotel room. I mean this is the biggest you know, this is the biggest investment. Yeah, that's right. So it's like, ⁓ man, you know, I've I spent an extra thirty bucks. I could have saved thirty bucks, had it you know, it's not like that. It's like I wanna make sure that I speak to somebody that gets it. So anyway, I'm really optimistic about the role. I'm optimistic about giving a lot of power in the hands of the consumers. That's a good thing. ⁓ and they'll engage with the true professionals that understand that.
speaker-1: ⁓ so what are your closing thoughts? Like what are your kind of biggest takeaways that you want to pass on to anybody that might be listening today?
speaker-0: ⁓ if if here's my big takeaway. ⁓ on the buying side, if you're in a position where you have some pretty solid employment, you're confident, you know what, and ⁓ and and and get and you're really on the fence, you've been looking for the last year and a half, two years, get in the game because the it's almost the perfect conditions right now for you to buy. You gotta y you get to pick and choose, you get to catch your breath, you get to get All the due diligence that you want to find out information on. And get a realtor that's gonna really have your back and and and and and negotiate for you hard. And and that doesn't mean that you're gonna get every deal because I don't want anybody thinking, ⁓ my god, this guy's saying that the market's off and you're gonna get it. No. Negotiating hard means because you gotta look at here's what it means. Maybe there's a there's a fair market price, and I'm gonna pick a number that should be six fifty on a house, six fifty to six seventy-five. And you know what, somebody lists ⁓ a property they're still thinking 20 22 23 because their neighbor got that and they're gonna list it at 8299 and eventually time will because you can't fake the market out it doesn't matter what price you put on there buyers are going to be looking at the information they're gonna engage a realtor and they're gonna find out so so my point is it may end up selling six months eight months later for six seventy five where i it it should have been and somebody may perceive ⁓ my god well You know what, they got a hundred and twenty thousand off the price. Then the next house, the next sale could have been listed at six seventy-nine nine and they got six seventy-eight or whatever the number. You have to know the background information on this. So I think engage a realtor. The timing is perfect. If you've got employment and you feel confident and you've been looking for a while, it it's the time. Now's the time. On the selling side, same thing. If you have to sell, great, then ⁓ you know, engage a realtor. If you're have that fulsome discussion as to where my plans are, why I have to sell, what my motivation is, how do I get out of this, be realistic. The market is not gonna lie. The market screams at us every day when a listing goes on the on the on the on the market. It either and what I mean by that, you put a price out there and it and it gets live on realtor.cn on MLS, if nobody shows it or sees it or requests to see it for the in the first ten days, then the market is talking to us, is screaming at us. It's basically saying, I think you've missed the mark. ⁓ if we blow it as a realtor, and I don't think many times we do, but let's say we do, that we've underpriced it, then you know what's gonna happen? You're gonna have like thirty showings, you're gonna have multiple offers, even in this market. There's many, many situations where there are multiple offers, and the market's gonna say, Hey, listen, I think you underpriced it at six twenty nine nine, and here's an offer for six forty and six thirty five and six fifty. So there's listen.
speaker-1: Market
speaker-0: Exactly. So I think I think that those are my my ⁓ my words, but at at in all cases, look, consumers want a trusted advisor to give them guidance. We'll always have a role in in in in navigating and and making sure things make sense of what data's out there and negotiating hard on their behalf. And those are the things that I think are always going to keep the realtor valuable. When you got the right person that cares about their client, ⁓ is knowledgeable, Aligns themselves with a brokerage that that is experienced in this to help navigate them. And that's one thing. It doesn't matter if you know if you're new to the industry, new to the profession or not, ⁓ they're not going to be practicing on their client. If they align themselves with a brokerage that gets it, I don't care if you're three months in the business, they're not going to be practicing on those clients because we work as a team and they have the ability to reach out to the team at leadership and and make sure that that and I know that you've helped and mentor young agents as well. So that's my those are my closing thoughts.
speaker-1: Awesome. Well, thank you so much for your time, Costa. ⁓ before I let you go, I just wanted to say that I'm starting something new. ⁓ each week I am going to be featuring a small business ⁓ in Elgin County. ⁓ today we're gonna highlight a great local spot called Streamliners. It's at 767 Talbot Street in St. Thomas. It's a great place, little cafe, go for a variety of coffees, baked goods in the mornings. fantastic spot to stop and catch up with friends. ⁓ You know, I love to support local businesses. It's what makes our community what it is. So be be sure to try and check them out. And let's get to closing. Thanks so much, Costa.
speaker-0: Thank you, Jeff.
