Negotiate Calgary Real Estate

The Ten Tricks to Win in This Market











Power Versus Need

With an increased need to buy or sell comes a decreased position of power in negotiations


Always have a backup plan should your home not sell and know your motivations for selling. Can you rent your home should it not sell? How can you make your home more appealing to the pool of buyers .


Never fall in love with a property until you have waived conditions. The second you need this "one house" the second you have lost your negotiating power. Stay open to other options. The more choice you have, the more power you have.

- A common misunderstanding is all sellers are desperate


In a market with downward pressure price to where the market is going, not where you think it currently is.


Stay one step ahead of the market with your pricing. This is not under-pricing your home or rental property,  instead you are setting yourself up for success. Here you have other active listings help sell your property and not vise versa. Keep records of the homes selling in your neighborhood and position yourself slightly below the homes that are not selling.


Know the market so well that you can jump on a property that a seller has priced to where the market is going. 
These are serious sellers that want to make a deal happen

- Have other listings help sell yours! The other listings do the negotiating for you. 


A stale listing is open to "low ball" offers - but there is hope!


If you are not receiving showings and you have expert marketing around your home, chances are you are overpriced. The most common question from buyers when they see 100 days on market is: Why isn't this home selling? Is there something wrong with it? 

Not to worry if your listing has not been getting the action you suspected. Here are the solutions:

  • Terminate Listing and Re-List with a fresh marketing approach.
  • Re-List with strategic pricing.
  • Ask your Realtor to show you the other listings on the market that you are competing with. Walk through these homes pretending you are a buyer; "Buyer's Eyes."
  • Make sure your home is impeccably clean.
  • Ask your Realtor/Stager for improvements to help this new listing.
- Re-List to Re-Fresh your negotiation power


Make it work by focusing on different terms


Here you put the focus of the negotiation on something that is less important to you. Watch this particular negotiation technique as you have to approach it with tact.

Example: As a buyer you are very flexible on possession day, however, you put in a long possession day and negotiate based on this date. When things become close to an agreement you alter this date to better suit the other party and in return they make the other terms (ex. Price) more favourable for you.

It doesn't always work as motivations for these terms can differ.

- Focus on what is not important to improve your chances of getting what is important


We are all people. Let's let them know where we are at


Too much friction in a residential real estate negotiation does not lead to favourable terms. Sure you might have got your price as a buyer but you have aggravated the person (seller) that will be in charge of your future home before possession.

Write a personal letter to the other party. Explain to them what your motivation is, comment on the nice features of their home, or let them know where you are moving to as a seller and why you are moving. Create a human element to your purchase contract and watch how smoothly this process can be! 

- This works particularly well in multiple offer situations where a seller is deciding between a number of buyers with similar offer prices. 


30% Of conditional deals fall apart. Be next in line! 


You found the home of your dreams but it is conditionally sold. There is still a chance you can get this home, so set yourself up to be the next in line. 

Have your Realtor write a backup offer with you and present it to the sellers. If you reach an agreement, the property will move to you should the current conditional deal fall apart. 

If the seller knows they have another deal waiting, it is likely they will not extend conditions on their current deal. 

- Conditionally sold does not mean sold


Putting an offer in front of a buyer


We are all familiar with buyers writing offers for sellers but have you heard of a seller proposing an offer to a buyer?

This is a great strategy in a buyer's market.  Following a showing, the seller reaches out and makes an informal offer to the buyer. This shows the buyer that you are willing to work with them and perhaps they can be swayed for the right price and terms.

It is important to not come from a place of desperation and instead show the buyer that your home is the right one for them!  

- Turn the process around to sell your home


If you want a deal, find one


In slow markets there are deals to be had but often times they are not visible by the list price alone.

Some sellers would accept offers quite a bit below their asking price but they are not willing to reduce their asking price below a certain value. The only way to snatch the lowest price on these is by submitting an offer. 

Here you must be prepared to walk away if the seller's response does not fit where you wish to be. Yes, some sellers may be offended but at the end of the day you are giving them an out. From there the seller can move on to their purchase or next stage of life.  

Note, if you really want the home this is not advisable as too low of an offer could offend the seller and they can choose to not work with you as a buyer.

-Play the odds


A win is a win!


The winner's curse is less a tip or strategy as it is a psychological hurdle. Have you ever received exactly what you wanted only to be left wondering, could I have gotten more? If so, you have experienced the winner's curse. 

When sellers accept a buyer's first offer, the buyer wonders if they should have offered less. When a seller's home sells right away, they wonder if they should have asked more. 

9 Times out of 10 you got what you wanted because you did everything right! You priced perfectly or you offered exactly the right price.

- Jump for joy! You did everything right


Everyone wants the same thing


In real estate we are all after a common goal. Buyers want to buy and sellers want to sell. We need to respect each other's needs and have our negotiation come from the right place.

Make sure you let the other party know you are coming from a place of "Mutual Purpose" and "Respect" 

Mutual Purpose means that others perceive that we are working toward a common outcome in the conversation, that we care about their goals, interests, and values. And
vice versa. We believe they care about ours” - Crucial Conversations: Tools for Talking When the Stakes are High.

Renzo Real Estate Skating Event

On February 24, 2018, The Renzo Real Estate Agents all got together to treat their amazing clients to a day of fun and skating. There was a tremendous turnout, and the weather was perfect. As a Calgary real estate brokerage, Renzo Real Estate strongly believes in the power of bringing people together and providing more than just a standard real estate experience. 

Have a quick look at some of the wonderful highlight of the event. 

Video Credit: Chris Adam

Calgary Real Estate Forecast 2018

Welcome to Renzo Real Estate's quick recap of The Calgary Real Estate Board's (CREB) Forecast for 2018. This year is expected to be very similar to 2017 with modest growth. 

Throughout the forecast, CREB's highly regarded, chief economist, Ann-Marie Lurie, highlighted that we are on a "bumpy" recovery. The ups and downs of the real estate market are no stranger to Calgarians, however, this recovery is expected to be much more gradual than in previous years. 

This is perfectly displayed in net migration patterns. Net migration is one of the strongest indicators of price growth in real estate markets. Have a look at Calgary's expected net migration. 

Calgary Net Migration

In 2010, there was a sharp decrease in net migration and sales eased dramatically, but look at the instant rebound in 2011. 

In 2016, there was another year of negative net migration, but the growth is telling a different story than in previous cycles. This points to the bumpy recovery path. 

CREB also drew attention to the changing mortgage rules and rising interest rates. Ann-Marie Lurie indicated that this could cause an increase in sales for the entry-level homes and attached sector. That said, the apartment sector is expected to continue to ease as the inventory levels are very high and more product is expected to come on the market in 2018. 

Have a quick look at the Calgary Real Estate Forecasts Recap for 2018

Download the full report

Watch the quick recap below. 

Stress Test - New Mortgage Rules

Broker and Co-Founder, Michael Montgomery had the opportunity to discuss the new mortgage rules implemented across Canada with Global National's Reid Fiest. 

As of January 1, 2018, buyers with uninsured (>20% down), as well as insured (<20% down) mortgages, are required to qualify at a higher rate. Buyers have to qualify at The Bank of Canada's Benchmark Rate (currently 4.89%) or 2% higher than their interest rate. This is The Bank of Canada's strategy to avoid buyers being in challenging positions if interest rates were to climb. Furthermore, it targets overheated markets such as Toronto and Vancouver. 

Here is a link to the further explanation of the rules. 

Real Estate Trends - Tech 2018

Real estate technology

There is a lot in store for real estate tech in 2018. The real estate technology is rapidly changing the industry, and with new tools coming out every day, 2018 is poised to be an exciting year for real estate tech. 

The rise of the technology startup appears to be accelerating with no sign of slowing down. These startups can provide incredible tools for the real estate industry, but some may also threaten the role of the real estate agent. 

Let's take a look at some of the technology driving forces in real estate for 2018. 

AI (Artificial intelligence) and Machine Learning
Artificial intelligence and machine learning have proven themselves as real forces in the technology scene. As it continues to expand, this technology is making its way into the real estate industry in a few ways. Artificial intelligence has that the "cool" factor and this likely will not change in 2018, but how AI will be used may vary. Up to now, the primary use of AI in real estate has been in the use of Chatbots. Chatbots are predictive/intelligent tools that interact with a customer. It is expected to see the use of Chatbots to increase with big teams and those that rely heavily on online leads. Chatbots provide an instant response to in our "On Demand" culture. 

We predict to see AI expanding on the pricing side of homes as data becomes more readily available. With the recent release of sold data in Toronto, Canada, it's likely we will see companies leveraging the sold data to provide enhanced CMAs. This can be for agents or direct to consumer. 

Finally, we expect to see agents interacting with AI systems to help them run their day to day business in 2018 and to help with targeted marketing campaigns. 

Virtual Reality (VR)/Augmented Reality (AR)
Of course, we are huge believers in this technology at Renzo Real Estate. However, we will keep this as unbiased as we can. 

Real estate tech

Although we have seen agents adopt VR, the news has been around large brokerages such as Engles and Volkers offering VR rooms to clients. Most agents and brokerages can see the value in having buyers experience the property before actually touring the home. It is also a huge benefit to those looking at properties in a different town/country. 

With cost-effective services such as Matterport, VR enhances an agent's marketing campaign for a property. With high-performance headsets, the rise of VR games, and lower cost headset options, we predict to see continued growth in VR. 

In 2018, we predict further exploration of Augmented Reality (AR) in listing as well. Every buyer's agent has heard, "I wonder how my table will look here." This is a question that could be answered with AR. Although the explosion of AR in real estate is likely beyond 2018, it is still a technology to watch closely. 

Cryptocurrency and Blockchain
You can barely turn a corner without reading some article about Bitcoin and Cryptocurrency. Some early adopters have made a lot of money with cryptocurrency, and new adopters remain hopeful. Bitcoin has been the main topic of conversation in 2017, but, as speculators jump to other forms of this currency, we predict other forms of cryptocurrency will begin taking off in 2018. 

The big question is will people be buying homes with cryptocurrency in the future? There is no doubt in our minds. Will this be widespread in 2018? Unlikely. There was a sale in Texas in 2017, so we will likely see more in 2018, but we don't anticipate this will be a game-changer this year. 

Smart Homes
Smart devices in one's home is not a new concept. The Nest Thermostat has been around for years and remember the lights you turn on when you clap? We anticipate that this technology will continue to grow in 2018 and more homes will become automated. 

Giant companies like Google and Amazon have developed devices to simplify your life at home, and we think others will follow suit. In 2018, we will see more homes that are automated and have advanced technology built right into the house. 

We also believe smart features to homes could provide a great ROI for sellers as more buyers are looking for these features in a property. 

Automated Real Estate
In today's society, everyone needs everything now. As time marches on, the gap between when a lead comes in and when an agent needs to respond is closing rapidly. Some ISAs are expected to reach out to the lead in less than 1 minute. 

Given the pace that is required, automation in your real estate practice will become increasingly important. Startups leveraging automation in real estate are starting to take off as we see agents demanding more complex/automated CRM services. Furthermore, with all the social media channels that an agent is expected to maintain, a lead can come in from anywhere. Automation helps avoid any leads sneaking through the cracks. 

This could also lead to a further rise in on-demand real estate agents and brokerages. 

It sounds like a broken record when trainers are pushing the importance of video in 2018, but the numbers don't lie. YouTube is the second largest search site, and Facebook has hinted that most of their content could be on video in the next few years. So, if you aren't using video, get on it ASAP.