Difficult clients can drain you of time and energy and compromise other transactions.The longer you work in real estate, the more likely you will encounter a wide range of personalities – not all of them warm and sunny. People skills are crucial in this line of work, and knowing how to work with different personalities is vital to success.

The EDGE newsletter spoke with three experienced REALTORS® about dealing with difficult clients. They all say it’s important to treat people the way you would want to be treated from the start. Beyond that, they advise you to recognize different personality types and do your best to adapt to the client.

Demanding clients can be challenging. Some buyers will want to see every house on the market, which is not good time management, says Andy Rytkonen, a Thunder Bay salesperson. “Some people don’t know what they’re looking for, so it’s important to take time to ask questions and talk with them before you shuttle them from one property to another,” he says. In these situations, your role is to teach, he advises, so they can learn more about

the market and make preliminary choices to narrow their search.

Get to know your clients and you will prevent problems, suggests Lois Willis, a Toronto broker with 25 years’ experience. “You must educate clients about what to look for in a home, what their price range is, and what will meet their needs,” says Willis, who is also an instructor with the Ontario Real Estate Association (OREA).

If clients are being difficult from the start, assess the situation immediately and weigh the benefits versus drawbacks, she advises. “A constantly-unhappy client may ultimately mean a lawsuit, and in those cases it may be better just to walk away, but if a client suddenly becomes difficult in the midst of a transaction, be patient, ask questions and find out what’s behind it. If you understand the problem, you may be able to resolve it.”

Don’t take it personally if a client is difficult, advises Susan Gucci, a Toronto salesperson. “Often the problem is not you – there’s another issue. I try to be understanding and compassionate with clients, which can sometimes be hard. They may be anxious that they’re making the wrong move, so you may need to comfort them by giving

Dealing with difficult clients in real estate

An exciting new advertising campaign to promote the value of REALTORS®

has been launched by the Ontario Real Estate Association. “Our members have been telling us that they feel an advertising campaign is the best way to promote the value of REALTORS® to the public,” says Phil Dorner, president of the Ontario Real Estate Association. “This campaign delivers on that expectation and we believe it will have a huge impact. We’ve been working hard to ensure that the message goes all across the province, and we look forward to hearing your feedback.” (See the President’s Message in the accompanying Inside Edge.)

The message at the heart of the new campaign is REALTORS® we do the homework™. (See images on page 2.) Billboards, television commercials and social media are all helping to send that message to consumers around the province. The ad campaign complements OREA’s ongoing and highly successful media relations campaign. A dedicated website for consumers has been created at www.wedothehomework.ca.

The goals of the campaign are to enhance the public perception of REALTORS® and to demonstrate to REALTORS® the benefits and value of membership in the Ontario Real Estate Association. Before launching the

InsideUnsupervised access leads to complaintpage 2

Fee increase passed on to buyer page 4

President enthusiastic about OREA's new ad campaignInside Edge

HotsheetRecord property damage claims after summer floodMore than $850 million in insurance claims have been filed following property damage caused by the intense record rainfall and flash floods in Ontario that occurred on July 8, the Insurance Bureau of Canada (IBC) reports. Based on prelimi-nary reports, that event set a record for insured damages and rendered it the most expensive single natural disaster in Ontario’s history. More claims are expected, according to IBC. Visit www.ibc.ca and click on Media Centre.

Market Watch U.S. foreclosures down from last yearForeclosure inventories fell 32 per cent in July compared to the previous year, another sign that the foreclosure crisis in the U.S. may finally be over, according to the latest foreclosure report released by CoreLogic and posted to the newsroom of the National Association of REALTORS® (NAR). This year, some 949,000 homes were in some stage of foreclosure compared to 1.4 million in the same month a year ago. Visit www.REALTOR.org and click on Industry News to find “Foreclosure crisis near its end?”

October 2013

EDGEREA

LTO

R®

Campaign promotes REALTOR® value

...continued on page 3

...continued on page 2

The following decision from RECO Discipline and Appeals Hearings has been condensed. All individual and corporate names have been changed.

THE FACTSLyn was selling her house. She was represented by Sola Brokerage, with Jenny as the listing salesperson. Lyn accepted a March 2010 offer to purchase her home from a couple represented by Mark, a sales represen-tative from Iza Realty. The couple’s offer was conditional upon a home inspection.

While Lyn was home, the inspector arrived at 1:00 p.m., one-and-a half hours early for the 2:30 appointment scheduled by Mark. Lyn allowed him to begin his inspection of the outside, giving him access to the garage and house exterior. At 3:30, the inspector rang the doorbell and asked if he could start the indoor inspection. Lyn asked the inspector whether Mark or the buyers arrived and the inspector said they had not. Lyn asked the inspector how he would have entered her home had she not been there. The inspector said Mark had given him the lockbox code.

Lyn complained to RECO that Mark, whom she did not know, had given the inspector, also a stranger, unsupervised access to her home.

The buyers eventually arrived at Lyn’s home but Mark never attended the inspection. Mark informed RECO that he had told Jenny that he would not be attending the home inspection. Jenny said this was never communicated to her.

THE FInDIngSThe RECO panel determined that Mark acted unprofessionally when he gave unsupervised access to Lyn’s home to the home inspector and buyers by giving out the lockbox access code without permission from Lyn or Jenny. The panel ruled that Mark potentially put Lyn’s home at risk as well as the buyers and the home inspector, by giving non-registrants access to the home without a registrant’s supervision or attendance.

The panel also ruled that Mark breached the following sections of the REBBA 2002 Code of Ethics: (3) Fairness and honesty, etc.; (5) Conscientious and competent service, etc. and (39) Unprofessional conduct, etc.

PEnALTyMark was fined $5,000 and ordered to complete OREA’s Real Property Law course.

The full case is among those dated 2012/04/30 and can be viewed at www.reco.on.ca. Look under “Complaints and Enforcement” and scroll down to “Discipline and Appeals Hearings and Decisions.” Choose the year 2012 and search by date only.

Page 2

Campaign promotes REALTOR® value, professionalism...continued from page 1

campaign, the association reviewed existing research, conducted many stakeholder interviews with members and the public, identified key issues and opportunities, and created and tested several scenarios. The campaign is part of the overall strategy for the association, led by the OREA board of directors.

Ray Ferris, member of the association’s board of directors and a real estate broker from Port Rowan, Ontario, is chair of OREA’s marketing and communication committee. He says that the campaign actively demonstrates to the public the value and professionalism that REALTORS® bring to the real estate transaction.

“To determine what our members wanted from us, we asked them,” he says. “At our strategic planning session, we decided that the goals of OREA should be aligned with the wants and needs of our members. That objective research has consistently told us that members over-whelmingly want us to promote REALTOR® value to the public, and they want us to do that through advertising.”

OREA encourages members to post and share the ads and messages with your clients, friends and neighbours. To view the commercials, visit www.wedothehomework.ca.

The registrant allowed the inspector to access the home unsupervised.

RECO decision: Unsupervised access to seller’s home

Page 3

Difficult clients can try your patience...continued from page 1

them more information about a neighbourhood or reassuring them that their home inspector is reputable.”

Unrealistic clients can also try your patience, the REALTORS® say, such as sellers who think their home is worth much more than it is. Rytkonen tries to guide sellers about pricing, but if they remain fixed on a number he feels is unrealistic, he is prepared to forfeit the listing. “I’ve seen REALTORS® take these listings, work for months, and the properties still don’t sell because they’re so overpriced. My time is better spent working with clients who actually need my help. The others aren’t worth it.”

Buyers can also be unrealistic on prices. “A lowball offer may annoy the sell-er, and I tell my buyers that makes it harder for me to negotiate for them,” Willis says. “I advise them to offer something closer to the asking price.”

Managing expectations can also make situations easier, she adds. “It’s a mis-take to show clients a house they can’t afford because then when you show them the one they can, they’re disap-pointed.”

Not all clients are good listeners, adds Gucci. “Some clients think they know more about the market than we do,” she says. This can cost them money or lead them to make poor choices. For instance, Gucci worked with apartment dwellers who were interested in buying a big corner lot. “It was a great house but I warned them there would be lots of snow to shovel. They said ‘fine.’ A year later, they called me to list their house.” Indeed, too much shoveling was required.

No-shows for appointments can also be a source of frustration for REALTORS®, and Willis found a remedy. “If you just ask them to meet you at a house at 7:00, they may not show up. Instead, I tell them ‘Your time is valuable and so is mine. If you can’t make it, please call and let me know.’ I also impress on them that we’re taking up the seller’s time. This approach seems to work.”

Language issues can also present problems. “Buying a property is a huge decision. If someone doesn’t understand what he’s getting into, the deal can backfire even if you do everything right,” says Gucci. “If your client lacks a good command of English, hire an interpreter.”

Messy homes are a problem, adds Rytkonen, who has been in real estate for 17 years. He has had clients ask him why he can’t sell their house. “People’s homes are their castles, and they can get offended if you’re too direct. I don’t like telling sellers their home is messy, so I’ve created a to-do list outlining ways to present the home at its best. This de-personalizes the dialogue and helps the sellers see things from a buyer’s perspective. Then they understand there are steps they can take to clean, de-clutter and make the place more attractive.”

Clutter and messiness are best tackled in a subtle way, Willis agrees. “Sellers want you to be enthusiastic about their home. If you point out the mess while you’re trying to build a rapport, it can have a negative effect on your relationship with the client.” Another option is to hire a home stager to enhance the home’s visual appeal, she suggests.

Unethical clients should be avoided, says Willis. A seller may not want you to disclose a property defect. “Walk away. It’s not worth the grief and aggravation,” she advises. Rytkonen once had a buyer who lied about having a mortgage. On closing day, Rytkonen discovered that the

buyer did not qualify for a mortgage. Fortunately he was able to list the property again and it sold at a higher price. He now seeks written confir-mation from lenders that the buyer qualifies.

Gut instincts and due diligence can help REALTORS® avoid difficult situations and reduce wasted time, Willis notes. She recalls meeting a consumer who wanted to view some properties. “Her mortgage broker said that we should make the purchase conditional on financ-ing. As time passed, I felt something was off – things didn’t add up. I phoned the mortgage broker again to ask for a credit check and proof of income. It turned out the woman didn’t qualify.”

Extended family members of clients can also pose challenges, says Willis. When she has taken young couples to several homes and they find one they love, they want their parents or Uncle Joe the construction expert to see it. “If the rela-tives see just one house, they feel their role is to tell the buyers what’s wrong with it, which can be negative. I find it’s better to show the other houses to the relatives first, and save ‘the one’ for the end. That way, they can come to the same conclusion as the couple.”

Divorcing couples can also be a mine-field. One spouse may want to sell while the other refuses, or one may try to sabo-tage the deal by setting the price too high.

During negotiations, Willis found herself with two clients who could not bear to be in the same room. “I put each of them in a separate of-fice at my brokerage and I was the liaison between them. If they had been together, there might have been a shouting match. This approach worked and we completed the sale successfully.”

Overly analytical people are among the most difficult clients, say Gu-cci and Willis. “They never have enough information. You have to give them lots of data and justifications,” says Gucci. Willis supplied one of these types of clients with many statistics, trends and a direct compari-son of properties with pros and cons. “I gave him lots of paper. He loved it. Then I stood back and let him decide.”

Gucci says her 20 years of sales and marketing experience before she worked in real estate helped immensely. She recommends sales training courses, especially those that focus on people skills. She advises other salespeople as follows: Be a good listener, come from a place of compas-sion, provide exceptional customer service, do your research and earn your client’s trust. “You don’t have to take disrespect or rudeness. Ulti-mately, it’s your business and if you encounter a client you don’t want to deal with, no-one is forcing you to do so.”

gut instincts and due diligencecan prevent difficult situations.

Page 3

Unit Transfer Date plus any goods and service tax exigible thereon. If the increase to the Existing Levy or the amount of the New Levy is assessed against, charged or imposed against the Condominium as a whole and not against the whole or any part of the Unit separately, then the Vendor shall be entitled to a proportionate reimbursement on the adjustments apportioned among the residential dwelling units as contemplated in l4(c) above."

In this case, the developer paid the current fees and later passed on the increase to the buyers. These buyers subsequently issued a lawsuit to recover the money. The buyers won their case since the new fees were set by the municipality but never levied against this Markham project and never paid by the developer.

Sterjovski v Rouge Residences

MERV’S COMMEnTS

It is not unusual for buyers of new building projects to sign extensive agreements of purchase and sale prepared by developers without first getting the documents examined by a REALTOR® or lawyer. In this case the additional amount was $11,000. These buyers must have experienced sticker shock when they saw the closing adjustment costs!

The Ontario government has now passed a regulation for future APS clauses, which states the following: In connection with any agreement of purchase and sale of a home signed on or after January 1, 2011, the registrant shall not charge, as an adjustment or readjustment to the purchase price of the home, any amount as reimbursement for a sum paid or payable by the registrant to a third party unless the sum is ultimately paid to the third party. If the registrant charges an amount to the owner in contravention of this paragraph, the registrant shall forthwith readjust with the owner. (Ontario New Home Warranties Plan Act R.R.O. 1990, REGULATION 894.)

Ontario municipalities charge builders and developers fees for things such as building permits and development costs. These fees are increased frequently and developers of projects must decide whether to pay the current fees while applying for permits or to wait and pay a potentially higher amount.

Some developers attempt to pass on any increase to a buyer. To do this, they insert clauses into their agreements of purchase and sale such as the following:

"If (a) there is an increase after the date of execution of this Agreement by the Purchaser in any levy, development charge, education development charge, impost charge, fee or assessment (collectively, the 'Existing Levy') imposed as of that date by the municipality, regional municipality, the public or separate school board or any other authority having jurisdiction, or (b) any of the aforesaid authorities impose a new or any other levy, development charge or education development charge, impost charge, fee or assessment (collectively, referred to as the 'New Levy') under the Development Charges Act, the Education Act, or any other legislation of a similar nature or purpose after the date of execution of this Agreement then, the Purchaser shall pay the increase to the Existing Levy and/or amount of the New Levy, as the case may be, as an adjustment on the

Page 4

LEgALBEATIncrease in development fees passed on to buyer

To: REALTORS®

From: Mervin Burgard, Q.C.Memo

OREA nEWS

Address inquiries or comments about REALTOR® EDGE newsletter to: Editor: Mary Ann Gratton • Writers: Joanne Milner, Mary Ann GrattonREALTOR® EDgE • Ontario Real Estate Association • 99 Duncan Mill Road, Don Mills, Ontario M3B 1Z2 1-800-265-6732 • Email: orea@orea.com

Website: www.orea.com • OREA Real Estate College • 1-866-411-6732

REALTOR® EDGE newsletter is published 11 times a year by the Ontario Real Estate Association. The newsletter aims to provide practical and useful news and information about the real estate industry to members of the association. The opinions expressed in the newsletter are not necessarily those of the publisher. Submissions from the real estate community are welcome, including letters to the editor, opinion pieces, events and news. The newsletter reserves the right to edit, based on space restrictions and/or suitability, and/or to refuse submitted material for inclusion in the newsletter without reason. All rights reserved. Reproduction in whole or in part without the express written permission of the publisher is prohibited. Contents are copyright of the Ontario Real Estate Association.

Development charges increase frequently when new

projects are being built.

Political Affairs Conference in november The Ontario Real Estate Association will hold its 2013 Political Affairs Conference (PAC) from Nov. 26 to 28 at Toronto’s Courtyard Marriott Hotel. The event will feature prominent politicians from all three major political parties at Queen’s Park, along with journalists and commentators. Delegates from member real estate boards will have the opportunity to meet with their local MPPs to discuss and lobby on various issues of importance to the Ontario real estate industry. For more information on OREA’s lobby issues, visit the Government Relations section of www.orea.com.

Learn more about social media If you want to learn more about using social media, you can take part in a free webinar series hosted by the Ontario Real Estate Association

(OREA) and the Toronto Real Estate Board (TREB). This series launched in June and is highly popular among REALTORS®. Topics are Twitter and Facebook, the two most widely-used platforms in social media. Upcoming dates for the one-hour webinars are Oct. 30 and Nov. 20 at 12 noon. Visit www.orea.com to register online.

Take part in technology eventsIf you want to stay on the cutting edge of technology in real estate, come to one or more events being offered this fall by the Ontario Real Estate Association. Emerge: Moving You Forward with the Tools for Tomorrow will feature topics aimed at developing your skills and knowledge on technology used in real estate. Upcoming events around the province are: Oct. 3 (Ottawa); Oct. 23 (Toronto); Nov. 14 (North Bay); Nov. 21 (Windsor); and Dec. 10 (Kitchener-Waterloo). Register online at www.orea.com.

Promoting Professionalism

InSI

DEEDgEWe are thrilled to celebrate OREA’s new advertising campaign – REALTORS® we do the homework™.

You told us that you wanted your association to send a strong message to the public about the value of using a REALTOR®. Through a variety of focus groups and extensive research, you indi-

cated that promoting our value to the people of Ontario should be our top priority as an association.

We heard you, and we have responded. Our exciting advertising and media campaign has launched this fall with the goal of enhancing the public perception of REALTORS®. We hope that you’ve seen the television commercials, billboards, emails and website. All of these send the message that REALTORS® do the homework to help consumers who are buying or selling a home and that the REALTOR® is a crucial part of the real estate transaction.

When we asked you about your priorities for your association, almost 5,000 of you responded to an extensive survey. An overwhelming 94 per cent of you told us that a mass advertising campaign was the most effective way to communicate the value of using a REALTOR®.

This far-reaching campaign is a direct response to your wish for a hard-hitting and effective advertising program to consumers across the province that focuses on the professionalism of our industry. Over the past year, we stepped up our efforts to promote REALTOR® value through a highly successful media relations campaign that reached millions of consumers. These media relations efforts are ongoing, while the advertising campaign is the newest weapon in our arsenal to help us reach our target: Ontario consumers.

This has been a priority for you – our members – for a number of years, and we’re incredibly excited to be leading this initiative on your behalf. Share the ads and the message – REALTORS® we do the homework™.

Sincerely,

Phil Dorner, President, Ontario Real Estate AssociationReal Estate Broker, Belle River, Ontario

President’s Message

Fall 2013

AD CAMPAIGN: Images from an exciting

new advertising campaign launched this fall by the

Ontario Real Estate Association

are pictured below.

Promoting Professionalism

Imagine leading a climbing team to the top of Mount Everest.Physical hardships, flagging motivation and political obstacles are just a few of the challenges you might face on the way.

Scott Kress understands those challenges well. He became the 51st Canadian to conquer the world’s highest peak – a notable accomplishment at any time – but in 2008, the Olympics in China brought military blockades, arrests, deportations and chaos to Everest and to Kress’s climbing team. He learned first-hand how leadership, teamwork and the ability to embrace change were vital to overcoming unexpected obstacles.

The lessons learned in reaching the summit of Everest are shared in a short video interview with Kress, an expert climber and guide who is also an MBA professor and president of Summit Training and Frontier Team Building.

This talk with Kress is just one of the video interviews posted to the Leader-ship section of the website of the Ontario Real Estate Association (OREA). The interview was posted after Kress spoke to executive officers, board presidents and presidents-elect of the province’s real estate boards. They were gathered for a team-building workshop held earlier this year and organized by the OREA Centre for Leadership Development (OCLD).

You can gain valuable insights into leadership by watching and listening to these leadership podcasts, which are less than 10 minutes in length. The podcasts feature a variety of renowned speakers in short segments, and a new one is posted each month. Topics range from team building and conflict resolution to managing change and good governance.

Other video interviews are as follows:

• Melynn Sight, who speaks on Getting Members toRead. The president of nSight Marketing, she shares her ideas about how to make your communication more relevant to readers. Whether you’re communicating with members, customers or clients, the most important step is knowing your audience and what they value.

• Marnie McBean, who speaks on How to Achieve Success. The three-time Olympic gold rowing medallist, athletic mentor and coach shares her experiences about the hurdles and challenges involved in becoming an elite athlete and how to make your own dream a reality.

Watch and learn from these talks and more by visiting the Leadership section of www.orea.com. Scroll down the left-hand side to “Leadership Podcasts” and click on the interview that you would like to hear.

Leadership lessons on video

LEADERSHIP LESSONS:

Mountain climber and business coach Scott Kress

is among the speakers featured in video interviews

posted to the OREA website.