The Real Estate Podcast

Bidding Wars, Buying Strategies, Discount Agents, and More! | The Real Estate Podcast EP312

In this episode, Ariel Kormendy and Adrian Trott dive deep into the Canadian Real Estate Association's forecast, predicting a 10% increase in sales activity and a modest 2.4% rise in property values for 2025. We discuss market trends in various regions, such as Calgary, Toronto's condo market, and segments like townhomes and detached homes in areas like Halton and Peel Region. Our team shares insights on whether it's the right time to move up, how changing mortgage rates will affect affordability, and the anticipated return of bidding wars. Watch until the end for strategies on navigating multiple offer situations and securing the best deal possible. ************************ 0:17 – Introduction 1:40 – Catching up on Adrian's life 5:19 – Ariel's update 9:38 – Canadian Real Estate Association Forecast for 2025 11:15 – Regional Market Analysis: Calgary, Toronto, and Surrounding Areas 12:35 – Why Move-Up Buyers Should Act Now 17:31 – Home Prices Are Going Up: What It Means for Buyers 22:28 – The Return of Bidding Wars: What to Expect 24:15 – How to Approach Multiple Offer Situations 26:16 – Pre-Home Inspections 35:38 – Why Some Offers Fall Apart and How to Avoid It 43:46 – Botched Home Flips 47:48 – Outro/recap ************************ Want more real estate podcast discussions? Watch it here: youtu.be/uLhNb8fdHt4 Listen to it here: http://www.soundcloud.com/ktrealty Catch clips and highlights of the show here: http://www.instagram.com/kormendytrott ************************ Our Social: Instagram: http://www.instagram.com/kormendytrott  YouTube: www.youtube.com/user/kormendytrott  Facebook: http://www.facebook.com/kormendytrott  Twitter: http://www.twitter.com/KormendyTrott Soundcloud:http://www.soundcloud.com/ktrealty  LinkedIn: http://www.linkedin.com/company/ktrealty  Pinterest: http://www.pinterest.ca/KormendyTrott  TikTok: http://www.tiktok.com/@kormendytrott?lang=en ************************ In 2011, Ariel Kormendy and Adrian Trott formed The Kormendy Trott Team, now often referred to as KT (thanks to our logo!). The foundation of KT is built on providing unmatched value and attention to detail in everything we do. From our ever-expanding, comprehensive list of exclusive services to our expertly trained team, you will receive the highest level of care throughout your entire real estate journey. Originally a team of two in Milton, Ontario, the KT Team has grown into a large team of exceptional REALTORS®, a client-care department, and now includes KT media, KT Commercial and KT Property Management to provide our clients with a complete lineup of genuine, professional, and proven services across Halton Region, Peel Region and the surrounding Regions within the Greater Toronto Area. We’d appreciate it if you’d subscribe and follow us for behind-the-scenes footage, real estate tips, industry secrets, exclusive listings, The Real Estate Podcast, and more!

Duration:: 49m
Broadcast on:: 04 Nov 2024
Audio Format:: other

But what we're going to see is more quality, hopefully more quality list things people needing and having to sell versus people trying the market and hiring, you know, these discount agents that post shitty photos with a very high price, no staging, no marketing, no nothing. In this episode, we are talking about the real estate market. Lots of good things happening. And we're also talking about bidding wars. So if you're going to be buying a home in 2025, listen up, watch this episode. Welcome to the Real Estate Podcast, your go-to source for raw, unfiltered stories and expert tips. Whether you're a buyer, seller, tenant, landlord or realtor, join us as we dive into the world of real estate. Hey, buddy. You'd think that... Let's dive into the world of real estate. You'd think that if, well, those who were watching, you'd think that we were recording in different areas of the world today. You're dressed. Hey, this morning it was freezing. I don't think so. I was out at six o'clock in my shorts, my workout gear, putting my garbage out. You're a weird animal. Anyways, I'm here in shorts and the t-shirt and Ariel's cause you... Well, you said it earlier, Jennifer calls you a summer pusher. Yeah. And which I find weird because for somebody that likes fall and winter... I know, I get flagged for freezing the snow as it comes. Yes. Anyways. So before we get into our real estate chat, anything new, anything exciting in the world of Adrienne? We had our annual guys weekend up north of my brothers. We do that annually. He brought all your brain cells back with you. Yeah, it was fun as usual. I only went for one night because we had our fucking Friday event on the Friday, which is normally the day I would head up. But it was the first time in a little while we'd done one that was client focused. We had all of our clients, not all of our clients, but an invite went into all of our clients to join us at the recently open. I still say it's recently opened, relatively new. Chuck's Roadhouse in Milton for a drink and some good food. It was good. We had about 50 people show up. It was a fun time. I like those micro events. I was saying that to Steve this morning. Me too. We do the bigger events like we've done the movie theater, the bowling at champs and those things. You get 100 plus people or several hundred depending on what you're doing. Our database now is big enough that we can pretty well do any kind of event and we know that there's going to be a bunch of people showing up. But I like the micro events because if you think about on that Friday, just hanging out with people having a drink. Very casual. Very casual. It was at three o'clock on a Friday afternoon. Of course, some people can't make it that time of day, but the people that can appreciate that. I just have a drink mid-afternoon. It's nice to not be committed if you're attending something like that. Pop in, have a drink, or have a little snack, say hello, and then nobody's holding you down. You stop for 15 minutes and we had a few people. They came by for like 20 minutes, half an hour. Thanks, guys. Have a good weekend. Way they go. They feel comfortable enough to do that, which is kind of nice. I like that. Yeah, I do too. You can do more of them and you can do an array of different options. You're going to appeal to a bigger audience as a whole as you do four different events versus one large one. Right. I think that's going to be our focus for 2025 is a bunch of different micro events. I was saying like I wouldn't mind doing an event at the escarpment tier room and have a T and what do you call it? The little sandwiches with the crumpets. No. What are you talking about? There's a name for it. I kind of know what you're talking about. Yeah, I think that would be fun. And it also we're able to get out to different venues. And that's a big thing that we want to focus on is supporting local businesses. Sure. Getting our clients out to explore the communities that they live in, et cetera, et cetera. Yes. So that's all very conducive to accomplishing that. Yeah. So the event was good. And then I went up north. My brother lives in Sundridge. He moved there from Huntsville a long ago. And there were just five of us. I had a nice cigar, had some homemade pizza, some beverages, hot tubs on a lake. It was good. Nice. I think came home the next morning. No traffic. Very good. Yeah. What'd you do? You know, I'm getting now into the fall winter routine. Cottage is closed up. Don't have to worry about that for the next six months, which gives me a lot of peace of mind. That's why when you said come, come up north for the guys weekend, I had no interest in driving. I'm done driving. Like it's 300 K each way. I don't know how many trips I've had to go up there this summer or did go up there. And while on your way back from your last trip, you said it was over four hours to get back. Yeah. That's too much. Once in a while, I don't mind. Yeah. And you know what you should do and you have an interest in it is get your pilot's license. Yeah. After a little pontoon boat. Yeah. I looked into it. I probably will get my license at one point, but it's a big commitment, right? Because I took the first flight and then I looked into it with the Brampton Flight Center and maybe in my older years when. And they have these more practical options for airplanes. I can't remember what it's called, but there's one. I can't remember what it's called. There's one that is a lands on water and it's smaller. I think it's just got one engine up on top of it centered on top. And oh, man, I can't remember the name of it for life for me, but it costs somewhere like in the around 200,000. You can get a 40 year old used little prop sessina. Yeah. Put floats on the bottom. I don't know if I would trust something that old, although half of the airline. What do you mean? Yeah. Most of the airplanes you fly in are old. That's true. The last airplane I flew in I think was built in the 70s. Well, one would assume it will well maintained as a commercial vehicle. Yeah. Well, it depends on the like if you're flying an airplane built in the 70s and you're in the middle of India going for a flight. I wouldn't trust it as much as like an Air Canada flight as an example for sure. But anyways, yeah. So now I get into my fall and winter routine, which for me might be a little different because as you know, I have to go for for a little surgical repair this month. And that sets me back a little bit, but get back onto the ice do a little skating. Do a little pickup hockey or puck and stick stick and puck kind of stuff. And I think this will be the year that I start purging some of my sports guard collection. I've already started a little bit. A little bit of a chronicle to some stuff last winter, and it's just taking up too much space, both in my storage locker and at home and there's stuff that's probably not going to increase in value until it's 100 years old. And even then who knows so so I'll keep some good stuff and some stuff that I want to keep. And then a lot of the other stuff I'm probably going to sell off and purge so say I I'm a hermit and the colder, colder months. I think that's why I really enjoy snowboarding because it makes the season go by so quick. Yeah. Having something that you enjoy to do outside. I might get out maybe once this year because I have friends that are big into skiing and I know you go snowboarding and. You've been cross country or snowshoeing something that's lower impact. That is the least of interest to me snowshoeing. Snowshoeing and bird watching. Oh, yeah. Yeah, sure. With a bottle of whiskey. Right up my alley. Anywho, let's talk about what's happening in the real estate market. Yeah, so today's a general update and discussion about what's happening and I also wouldn't mind just briefly chatting about the Canadian Real Estate Association's forecast for next year. Which I was reading about this morning as well. Yeah, I sat in on their meeting a couple of weeks ago, but yeah, if you want to dive into that. Yeah, well, I think a good, well, it's a good place to start. A lot of people are interested in what's happening in the real estate market right now with all these rate reductions and. Well, and when this comes out, there will have been another. Hopefully another rate reduction. This will be old news. Yeah, this will be old news. And there's just talk about it likely being half a percent. So we'll see what that turns out to be. But yeah, so the Canadian Real Estate Association, they've forecasted a 10% increase in sales activity next year, which is aligned with what we think is going to happen. In terms of we've, well, we're kind of predicting if you go back and watch one of, I don't remember how many podcasts ago, just a few. We made our predictions for 2025 and that aligns in my opinion with where I think the volume will be. They are estimating only a 2.4% increase in valuation, though, in property values. I think that's a little late. Yeah, but again, it's market specific, right? Like when you look at different markets, like you look at Calgary right now is taking a big hit. The Toronto condo market has taken a big hit. But then you look at townhome segments, freehold townhomes, small detached homes, you look in areas like Halton Peel Region, Wellington, Hamilton, you know, all these areas, they're going to see an uptick. It depends on price point. Anything under a million and a half is going to go a little bit crazy. Well, I think, I actually think some of the higher end stuff like in the. Maybe the move up stuff. 1.8 to 2.5 type of range. I don't consider that higher end anymore. Two and a half million dollars. Sure, that's high end. Nothing in our town sells for that. Rarely, maybe three or four properties a year. Unless you get into like Campbellville or rural areas. But I think that segment will see better appreciation because with the forecast of things changing now, people that are moving up are going to be encouraged to do sooner than later. Sure. Which we're encouraging people to get into the market sooner than later, whether you're first on buyer or an investor and for those who are up sizing. Actually, okay, I was going to make a note, but I'll talk about it now. So a little bit off topic, but on kind of topic to what you're talking about, something I wanted to mention. This is a good time to move up. If you've got a little bit of equity, a lot of equity, it doesn't matter. If you have equity, it's a good time to transfer it. If you need or want to upgrade your home, right? Some people bought their home five years ago, four years ago, maybe they bought it at a peak and they're like, I don't know. Well, this is a good time to transfer if you're going to do it with the mortgage rates coming down and forecasting that they're going to come down even more. It's inevitable that your payments are going to be as high as they will going forward right now, right? So from a budgeting perspective, you're able to better understand affordability. And what I've been talking to a lot of our clients about, and I was talking to somebody at our event about this specifically, and this person wants to, they bought their home kind of same scenario in 2021, kind of peak of the market. When I did an analysis, they are ahead a little bit already, which is kind of crazy to think because if you bought it, the peak of the market then, things were pretty intense. So for the home to have kept its value and even increased a little bit. They must have had a good realtor. Must have. So it wasn't me. No, I'm just joking. They need a bigger home, right, kids, kids grow, accumulate stuff. At that time, they kind of settled a little bit too. They would have liked to have a bigger home, couldn't do it, bit the bullet, stepping stone. Now they want to. And they're looking at the price and saying, alright, so I'll give you the scenario, they own an inside unit town home. And they really now, this is their third town home. And they now want a detached home because they want a buffer where the walls aren't connected. You can't hear anybody's music blaring or have to deal with a shared driveway and stuff like that. And they're looking at the price going, wow, it's another $200,000 because that was kind of the realm of price point for them to go. Basically, let's say their home's worth a million or close to it and for a reasonable upgrade, you have to be in the $1.15 to $1.2 million range. So it's a $200,000 increase. And you look at that and that's a lot of money. But that's not what I've been focused on with them is. And with the other clients that are in the same scenario is just do the math as to what is the net difference in terms of how much you're adding to the mortgage. So don't forget when you're selling your home, you're going to have selling expenses. You know, your broker fees, real estate commissions, your lawyer fees, moving expenses, anything you got to do to the home to make improvements for it to be sold. And your land transfer tax and closing costs on the new home. So don't forget about those things, but look at your bottom line. How much more are we going to mortgage? Because you may have saved some money. You may have some other type of investments that you want to put now into improving your real estate position. But look at the monthly carrying costs, your monthly payment. We used to do that back when we were selling cars, right? Like don't focus on the price of the house or the price of the car, focus on the monthly payment, especially if it was a lease. And that's how they trained us to sell cars. If you wanted leather seats, it wasn't a $3,000 option. It was an extra $14 by weekly on your monthly payment. All right, on your payments. So you got to do the same thing right now. Just make sure you can afford that monthly payment and that it's comfortable for you. Don't look at the bigger numbers because this is, I think we've now gotten to a point where we can confidently say the prices are going up and not down. And I wouldn't even say the prices are going to stabilize over the next six months. I'm confidently saying over the next six months, the prices are going to go up. And there might be peaks and valleys throughout the year, like every year next year, but in our forecast that we did, as you mentioned, a few podcasts ago, we kind of mentioned that. But focus on your monthly payment, because that's what's going to be out of your pocket. Of course, don't forget if your property taxes go up, your utilities go up, take those things into consideration, but they'll be pretty minimal. If you're going from a million dollar to 1.2, 1.25 million dollar home, how much more are you paying in property taxes a year? $400 more a year, something like that. So you're $30, $40 a month more, your utilities may be $30, $40 a month more. But then your mortgage, a couple hundred grand, well, that's, you know, $500 for every $100,000 based on the, at least $500. Five to six, depending on the rate, can you afford an extra thousand to $1,200 a month? And if you can, that's what you should focus on. Well, at the end of the day, that's lower than it will be in eight months to 12 months or 24 months, whatever. It's not going to be cheaper because the house you're upgrading to is going to be appreciating at a rate quicker than yours is appreciated. You mean, if you buy a range, yeah. Yeah, but if you buy now and you're on a variable rate, that difference is going to come down in monthly costs. Well, in hindsight, it's like how many people have we spoken with, myself included, and I'm sure you probably feel the same way. It's like when we bought, you know, the same thoughts were going through our head and, you know, they were at that time relative to now. They were the difference to get a bigger home was relatively small. And if you don't bite the bullet now, it'll be harder to do it later. And people that are doing it for the sake of improving their family dynamics and living arrangements and stuff like that to give their kids a better life, whatever it is, like, if you bite the bullet, do it now, you'll be in a better position. And 10 years from now, you'll look back and be like, wow, why didn't we do it sooner? Why did we question this so much? Because in most cases, it's a no-brainer. But you do, obviously, you need to make sure you're comfortable financially. Yeah, I mean, we're not the best example anymore, because we bought our homes like 15 years ago. But in my scenario, 15 years ago, I was moving out of a three-story townhome 1300 square feet. It was a perfect home for me, but it was in Oakville, and we worked and loved Milton, and there was an opportunity to buy new build in Milton, and essentially sell one for an upgrade for not much more. And when I did that, I don't know if you remember this, the model that I wanted was actually, I remember, a 30-foot wide lot detached single-car garage, plan 9, which is about 2100 square feet. Nice layout. It's got the main floor den, which I would have turned into the office. The kitchen living room is nice and open. Upstairs, the floor plan is such that the master bedroom is on a wing of the house. And then, so I really liked that floor plan, but forecasting that, you know, I wanted to have a family. I went from, so that home was 300 and about $350,000, and I upgraded 70 or $80,000 to get into my home, which is double-car garage, 2,600 square feet. If you hadn't, you would have moved. If I hadn't, I would have had to have moved. Well, you wouldn't have had to. You would have wanted to. Come on. The people you're talking about, if it's who I'm thinking of, have several children in a townhouse. No, it's not who you're thinking of, although I know who now you're thinking of who has five children. Yes. And they're bursting at the seams, but there is a discussion happening with them, too, that I've been chatting with them for a while to make a move. Anyway, I do want to talk about bidding wars. Okay, we're on the topic of what's happening in the market. And I wanted to mention this today, because I think it's very important for people to understand what's going to happen in the next. Over the next two years, the real estate market is going to snowball. It's going to get hotter and hotter and hotter. And we're going to start seeing a dynamic shift over the fall and winter months where there is less inventory available. So right now there's a lot of inventory. It's going to start depleting. And when that happens, usually the prices come up a bit. But what we're going to see is more quality, hopefully, more quality listings, people needing and having to sell versus people trying the market and hiring these discount agents that post shitty photos with a very high price, no staging, no marketing, no nothing. I think we're going to start seeing some more quality stuff come down the pipeline again. I think there's going to be a bigger buyer audience, a bigger buyer pool. So you've got all these things happening. I'm throwing caution out there to all of you. We will see bidding wars happening again. We're already starting to see it in certain types of certain segments in certain parts of the GTA. But here's the thing, if a home comes on the market and it looks well, it looks good and it's priced well and you like it. The chances are somebody else is going to like it too. Don't be afraid to get into the bidding wars. Don't be afraid to get into multiple offer situations. It doesn't cost you anything to try your offer. And if you time this right, there is still an opportunity to buy at what I believe are good prices. Throughout the rest of November, throughout December and into January, for the next 92, maybe 120 days, there's still a lot of opportunity to buy at a good price. And I've heard it consistently over the last number of weeks when an offer gets registered on a property that other buyers don't want to now submit an offer. Because they don't want to get into a bidding war, negative connotation with it. Yeah, I don't want to get into a bidding war. Well, listen, let me tell you from my experience and our team's experience over the last, well, obviously since our inception 13 years ago, but over the last year, there have been many circumstances where there were multiple offer situations. And the home still sold for less than expected or less than the asking price still sold with conditions on financing home inspection sale of buyers property. So just because you're getting into competition against somebody else's offer doesn't mean that you can't strategically submit your offer without going nuts. Well, and there's never been a time where I think the other components of the offer become more valuable too. So for sure, being comfortable without a home inspection, being comfortable without a mortgage approval, if you're in a position where that is an option, that in this market holds a lot more value than in some other markets. Yep. And price obviously still consideration, but less of a consideration. And so, you may be able to purchase it for less than somebody else who's not willing to remove it. The sellers and the seller's agent are really worried about the conditional period because there are a lot of deals that have fallen apart in the last year or two. Yeah. Because specifically on financing, not so much on inspection. If you do want an inspection, we highly recommend getting home inspection. And if you don't want to include it in your offer, just get it done ahead of time. All the sellers agents say, hey, listen, we're going to be sending you an offer. We want to make this clean as possible. Can we sneak in for an hour, hour and a half, two hours on Sunday morning or on a Friday afternoon, whatever, and have our inspector do an inspection on this property. A lot of inspectors will actually do a specific inspection where they can cut down some of the fluff. They charge you a bit less, they're a lot quicker and do the major scope of things so they know, okay, based on this, we're now more educated to submit an offer on it. Well, and you got to think a couple of things. One is the person that submitted the first offer is probably of a similar mindset. Sure. They probably don't want to quote unquote compete either. So you submitting an offer inadvertently puts them in a position to reconsider whether or not they want to compete. So we talked about this last week where there's some agents at that point representing the first offer where their client wants to back out, which technically they can't. But they may just say, no, we're not going to make a revision, we're going to let our offer expire. And if the offer does expire, they may say, we'll wait and see what happens with this new offer before coming back. Yeah. So that brings me to my point and why I think there's some deals to be had over the next 120 days or so. Let's say there's a home on the market right now for the past 60 days. You've been watching it. It's in your favorites on your realtor.ca app. And it hasn't sold or maybe they had an offer on it didn't come together. And all of a sudden you get notification from your realtor that there is an offer registered on that property. If you throw up your hands and say, no, I don't want to get into a bidding war. Now the seller only has one option and might actually deal in some capacity with that offer regardless of what that offer is. If you come to the table with this now second offer, yes, it does give the seller some bit of leverage. But you have no idea what that first offer actually is. So the first offer is submitting based on the premise that there are no other offers. If this house has been on the market for 60 days, the chances are you're getting a lowball offer. You're getting a lowball offer with probably conditional on financing, conditional on home inspection. So the seller is looking at that and not too encouraged. So they might have to counter offer or just decline that offer. So now the second offer comes in and the first offer says, oh, well, I don't want to compete. We were trying to steal this house. Yeah, lots of that. Yeah. So if the second offer is in any way, shape or form better than that first offer, which the chances are, pretty good. And now maybe the seller is more inclined to deal with that second offer, even though it's not a great offer. Even if the first one wants to improve. Sometimes they get sick and tired of these people trying to play games. Yes. And they respect that the second offer came in more attractive. That happens a lot actually. Yeah. And so, anyways, it's not to say that every home is going to sell in this kind of scenario. There are definitely still going to be the homes that come on the market, look great, price to right, high demand, get multiple offers, bidding wars, drive the price up, maybe even above what the current market value is. That's still going to happen. That almost happens in any market condition. Yeah. Well, the other component to it is I would highly encourage people not to wait. We have a lot of that happening right now where in the average days on market for typical home is 30 days. But 60 days like you're saying is not uncommon. And a lot of that is due to people just sitting on the fence and being indecisive and feeling there's no sense of urgency. So we're just going to wait and think about it. And I think the people who move more quickly in making decisions will do better. Because after 30 days, certainly 60 days, there's probably several dozen people that have been through that property. So it's very likely. Some people may say, Oh, what are the odds of another offer coming in? Well, it's very likely that if you submit an offer two months into a listing that somebody sitting on the fence is going to be persuaded to come off the fence and submit an offer. So I think a lot of people, the first offer, whoever's presenting the first offer, they get their arms up and they're like, Oh, what are the odds? And they start questioning. Oh, is it legit or is it just, you know, as an agent just saying this to try to drum up some more activity? Well, it's very reasonable that after a long period of time and the first offer coming in that several people who are interested in the home but had no reason to pull the trigger now have a reason to. Yeah. So you're going to be competing. That's a good point. Whereas if you're out actively looking at homes, don't wait weeks or days even to make a decision. You know, hopefully you've seen enough properties that you know what you want and just act on it. When you find the right house, don't just sit there and twiddle your thumbs. It's like going to a buffet right now. You know, you go to the Mandarin buffet with your plate. The plate's only so big and you want to eat a little bit of everything. That's why you end up going back three or four times because you want to, you know, it's hard to make decisions when there's a lot of options. When there were no options back in 2021. You know, even into 2022. People were like, Oh, there's a townhouse. It didn't even matter what the floor plan or size was. Oh, there's a townhouse that came on the market. Let's offer on it, but you haven't seen it. I don't care. Don't let this one pass pass you by. Now you go on the MLS and have a look tons of townhouses. Right. So people have choices and options. I don't know. Let's wait till the see what the mortgage rates are doing. We're going to the cottage this weekend delays for unnecessary delays. And indecisiveness. So I agree there. And there's mark my words. There's going to be a shift in the market where it takes all of the power away from the buyers puts it right back to the sellers. And it's going to happen in a blink of an eye. You're not going to be prepared for it. We can't forecast when that's going to happen, but it's inevitable at some point in 2025. It's going to happen. Well, I think the last few years has been inconsistent with the time of year when we usually see those peaks and valleys with regards to activity. I think next year may be more aligned with the previous norm. So like I think coming up to the winter, we're going to see like you said, a lot of listings pulled off the market and some of those will have intentions of coming back to the market. We're hearing it. Yeah. But there, I think a lot of those people are going to miss the surge. So likely in January, early February, the people that are mark my words on this too. The people that are pulling their listings now, probably because of their unrealistic expectation on price and are in the current market, and they're saying, Oh, we'll wait till the spring because we'll get our price in the spring. Well, you know what, you're going to miss that market too, because, and a lot of these people then raise their expectation on price again. So they probably will go through the same thing, but you're not going to be prepared for when that market is in a surge, and then you're going to try and get back on the market when everybody else is going to come back on the market. So there, and I said this again, a couple of weeks ago where we're going to see that surge up, prices are going to go up, volume is going to go up, and then everybody's going to think, Oh, now this is the time to sell. And then ton of inventory, ton of inventory means it's going to kind of flat line, the market for a little bit too. So, yeah, if you're selling a home, you know you're out buying a home. You have to be ready to pull the trigger and sell on the same market that you purchased then. But that's also that's something that's looked upon very favorable to is if you have sold your home as a buyer of a property where you're competing. Yeah, if you can say that you've sold your home, make sure your agents conveying that to the sellers of the home you're purchasing. That's a good point, because it provides a ton of peace of mind and confidence that they are going to close, because there is still this fear that the buyer doesn't sell their home. And although they're contractually obligated, I don't want to be in a position where I talk about higher end market, the luxury market. If you're out buying a four or five million dollar home and you have a two, three million dollar home to sell or whatever in the higher numbers. If your home is sold, that gives the seller of the home you're trying to buy a ton more confidence because right now there's less activity in the luxury market. Right, so if you can do that, then do that, even if it means you having to live somewhere else for a period of time, it does give you a big, big upper hand. And if you're talking three, four or five million dollars, it could be like a 10% swing. That's significant. So anyway, just be prepared. It is coming again. Know somebody that understands work with somebody that understands the market to navigate it properly for you. I think that's going to be super important over the next 24 months, especially. And I keep saying 24 months to everybody, because at some point in the next 24 months, we are going to see a significant real estate boom again. Don't know when within 24 months at some point. Agreed. So, good time, you and I have talked about potentially doing another flip. We don't agree on some of the variables of it, but I think it's a good time if you're an investor to buy and hold it for a period of time or buy hold and flip. I'm in the position where I think I'd like to buy and flip. And our flip is probably going to be different than what most people would consider a flip, because we like to do things right. And we know exactly what the market is looking for in each segment. So we're able to really identify the right selling features. We do that with our clients too, but we don't have a ton of clients that are buying right now to flip. But I think it's a great time to look at those options, especially in the markets where there's higher volume turnover. I know a lot of people will disagree. Well, I think there's an opportunity if somebody's holding it for two years, at least two years. I think that period of time you'll see a good return. So you're saying buy rented out for two years, even if you're taking a bit of a loss on your monthly. Yeah. And then once that tenant vacates, spruce it up, make it look nice, hit the market. Yeah. There's always exceptions. Is that why you don't agree with me, because you're in the belief you got to sit and hold and rent it for two years? Yeah. I think if you, with a few exceptions, if you look back historically, it's always made more sense to hold real estate than to sell with a media worker. Sure. Well, I don't know. Well, I said there are exceptions. Our last flip, if we would have held it, I don't think you would have been as happy. No, for sure. There are exceptions, but we're not, I don't think we're in that. We're not going to be in a market like that for a bit. You weren't expecting that market then, either. No, I know. But don't forget the people that bought, is it? Well, that was. We're going back into the same. No, we won't. People that had a one and a half, two percent mortgage are now going to feel like a three and a half, four percent. Well, maybe not four, but three, three and a half percent is the new one and a half to. Yes. It's just like ego grocery shopping. You buy a kilo of chicken wings. How much are chicken wings now? You can't get out of there with a paying 20 bucks for a tray of chicken wings. Pre-COVID, that was a eight dollar tray. You stopped buying chicken wings? I'm not saying. It's the new. It's the new price. So there's a new precedent and a new price for mortgages that's going to happen in the next. Where are they getting there in the next year? There's going to be a new low where it triggers people to say mentally that's like the new one and a half, two percent. It is, but it isn't because people still have to manage the cost of it. Were people managing the cost of it when they were buying town homes for a $1.5 million? No, they were out blowing their brains to whatever they would get from the lender. Right. Now the lender is not going to give them as much so because they... What? Because of the marginally higher rate? Well, double still. Currently? No, but it will be a three percent. It's still double what people were getting. Yeah, but you're comparing it to a small segment. There's still a lot of people that were paying three, four percent during that time. Yeah. They locked in and what have you. Anyways, I'm just saying that I think from an investor standpoint, I don't think there's a better place right now. People are investing in ETFs. They're investing in AI stocks. They're investing in safer things like GIC rates now and bonds and stocks. We were not going to get all this stuff. Yeah, well, that's part of having an opinion. That's part of why we do the podcast. You and I don't agree on a lot of things. It doesn't mean we have to. So, I believe right now the best place to put your money in is in real estate. Plan and simple. If done a certain way. I mean, there's no way... There are opportunities... Well, I'm not saying go and buy any piece of shit real estate. No, no, no. But there are exceptions to everything. In my opinion, I think you're best bet if you're buying real estate now is to hold it for two to five years and then sell. But I also think during that time, there may be little blips here and there were... It's like, "Oh, wow. We got lucky with our place because our tenant left and we looked at the market at that time and said, "Do we get new tenants or do we... You." We did not agree then, either. No, we didn't. But that was important because we were in a partnership and if one person wants out, my option is I buy you out or we sell. Right? Yeah. And if you would, quote unquote, buy me out at that time. I should have bought you out in November and then sold in February. Anyways, I think there are opportunities for immediate flips. For the right house, you find somebody who's in duress and needs to sell. You might be able to get it for a price that makes sense and you can flip it immediately and make a profit. The average house, I don't believe will fall into that category. No, I'm not talking about an average house and an average area. I'm talking about you find some property that you know there will be a demand for. Right? So it's got to be the right location. It's got to be the right floor plan. It's got to be the right lot, the right street. Like there have to be a lot of check marks. Well, and the right work that needs to be done. And then more importantly than anything, you can't walk into it as a buyer, a buyer's realtor and look at it and go, whoa, this is a flip. You shortcut at this. You shortcut at that. You see, you know, paint that just got slapped on and tiles that aren't installed properly and you get like some of these ugly fucking flips that happen. Certainly in Brampton and Mississauga, you go into a lot of them and it's like, oh man, who did your work? Like you get a 50% off discount coupon or something. Yeah. Like the ideal property is one that was previously talented. It stinks. There's stains on the carpet. Yep. And it's represented by shitty real estate agents who's put no effort into marketing and doesn't know how to negotiate. But it's on a good street, it's got two full bathrooms. Yeah. Things you can't change are important. Yes. So I love the types of homes where you got to change flooring. You got to paint it. You got to change light fixtures. Paint in the kitchen. Maybe replace the kitchen. I prefer the painting the cabinet root versus it. Yeah. So, but that depends on the kitchen layout. The countertops, a little bit of landscaping. You know, you're not doing any major, major work. And, you know, once you stage that property and market it well, that's a nice little flip. And I'm not talking about making hundreds of thousands of dollars here. I'm talking about you're making an extra 50 grand after all expenses and that 50 grand is now taxable income. So depending on your income bracket, that obviously the government is going to take their fair share. But to make, you know, an extra income like that, if you do one or two a year, I think there's an opportunity. And then, of course, the longer you hold it right now, the higher that number is probably going to get. So it depends what you want your exposure to be and how long you want your money tied up, how long you want to deal with something like that. But, yeah, plus, I'm just a nerd for real estate and I like having hobbies like that. Like I had a lot of fun when we did some of the work at our last property together. And I had a lot of fun and seeing the before and the after and, you know, I think that. You should maybe bring out that video again. I feel like we didn't do enough with it, but it was a fun process. Yeah. Well, we were also going through a change in our media team at that time. So it was in between transition for employees on the team. And it was our first time doing something like that where we were recording the whole process. But the videos on our Facebook page, so we can certainly, I don't know if we have it on our YouTube channel. I would think so. We should check. I don't know. But we can certainly bring that back up to life so people can have a look. We sold it February of 2022. So we're coming into three years with no investment property under our belt. Good time to sit on the sidelines. Yeah. There would have been, we talked about it actually in those low dips of buying again. But we obviously invested into our business a little bit and did all that stuff. So anyways, I've got to get running. So nice chatting with you. Getting wars coming back, markets heating up, interest rates low, good signs for the real estate economy. If you're contemplating a move in 2025, now is the time to start chatting about it. So reach out to your realtor, reach out to us if you have questions. Now is definitely time to start getting the ball moving. So you're in a position to take advantage of the market when it happens rather than starting your process at that time. Because you'll miss the boat. Don't miss the boat. Good chat. Thanks for listening. Thanks for watching this episode of the real estate podcast. Leave us a comment. Let us know what you think bidding war is coming back. What the market's doing, mortgage rates, whatever you want to chat about. Leave a comment. We'll reply and we'll include some of those comments in the next episode.