Is Zoopraisal Just a Fancy Word For "Wild Guess?"

 Article written by my colleague Asif Khan – Re/Max All-Stars

As word of Zoocasa’s new property value guessing game made it’s way around the internet, messages began to flow in from clients and colleagues. Is Zoopraisal a game changer or just simply a game? Can the values be relied upon? Is Brookfield not owned my Royal Lepage? Is this an invasion of my privacy? Will my ex now be able to find out the value of my home? Why are the numbers off by so much? All valid concerns, yet nothing to worry about. l’ll share a few of my thoughts here:

Appraising a property’s value can be as automated as diagnosing medical conditions through a computer program. Imagine going online, selecting your body type, sex, height and weight from four or five drop down boxes and then selecting symptoms from a field of three or four predetermined choices like cough, fever, rash, and loss of appetite, then have the computer generate a diagnosis. As the hourglass spins, you wait with great anticipation as your diagnosis is being determined. All of the sudden a box pops up and you now know you have pneumonia. How comfortable would you feel that the diagnosis is correct? Now let’s replace your health with your most important monetary asset – your home. How confident would you feel about your home’s value when determining the same by selecting from a few drop down boxes and choosing from a few predetermined fields?

CTV’s headline read “New service bypasses agents, offers free home appraisals”. There couldn’t have been a more misleading statement to lead off the report on Zoocasa’s new Home Appraisal system. In fact, the word “appraisal” should not even be mentioned in the same sentence/paragraph as this system. It is nothing more than a “wild guess”. It is ironic that the “Zoo” feels they can replace the human element when it comes to something as subjective as property values. Zoocasa’s business model is to have Realtors and Mortgage Brokers advertise on their site to fund it’s initiatives. Yet, obviously Zoocasa is creating a perception that they are a service which “bypasses agents” as this is the second time Zoocasa has been painted in this light. Is this not a classic case of biting the hand that feeds you? Zoocasa will argue that this is not the case and they are a “Realtor Friendly” site. However when the media is led to believe that Zoocasa is being built to “bypass agents” one would have a valid argument.

Today, Canadian Appraisers expressed their concern with the inability of Zoopraisal to provide true values to the consumer. With unique characteristics that can be found from home to home, it is unlikely that a computer generated value would be accurate. There are many factors to consider when pricing a property for sale or evaluating a price for purchase. Each home will have a wide variety of upgrades, updates and specific enhancements that increase or decrease it’s value from the average homes in the area. Outside of upgrades and enhancements, one needs to consider market conditions, competition, supply and demand. To rely on a computer generated value that is based on neighbourhood sales data – which may or may not be accurate – is misleading to the public.

The “Zoo Keepers” are working to persuade realtors to believe this new tool will benefit consumers and real estate professionals in determining true values for homes. On the contrary. Zoopraisal will confuse the general public even more by providing unattainable figures, thereby undermining the value of a Realtor and their ability to accurately determine the proper value of homes. To give you an example, I recently listed a home for $429,000. The home sold for very close to asking price and set a new record in it’s immediate area for price. The value of this home on Zoopraisal is stated to be $685,000. When searching my own home, which is valued at about $750,000, Zoopraisal gives me a value of approximately $594,000. Being a Real Estate Professional, I know Zoopraisal’s values are off base, however if I were a consumer and trusted the figures to be reliable, I would put myself in a compromising situation when pricing my property. Zoocasa’s failure to manage expectations from their launch of a fictitious value determination tool will cause a lot of problems as we move forward. If used for entertainment and taken with a grain of salt, it is a great way to spend a rainy afternoon. If relied upon for accuracy, which unsuspecting consumers will do, how will that affect not only the Real Estate industry, but also the banking industry when it comes to refinancing?

In my opinion, this upstart version of the USA’s Zillow may be positioning themselves to rival the MLS system however is it going to be a contender or just a pretender like others that have come and gone? They are riding on the coat tails of the circus that has been created by the Competition Bureau’s attack on the Real Estate industry to gain popularity, while endearing themselves to Realtors by providing banner ads for a fee. I love Zoocasa’s demographic information, and feel they do provide some value during the home buying process. I am disappointed with their venture into the “guesstimate” home valuation technique, and feel this will make a mockery of the property valuation process. As one of the first advertisers on Zoocasa, I’m disappointed in the direction they seem

headed. Signs at the Metro Zoo read “Do Not Feed The Animals”. The time may be here to apply the same advice at another “zoo” and protect my hands from being bitten.

Asif Khan, ABR
Member of Re/Max Hall of Fame
Re/Max All-Stars Realty Inc., Brokerage
905-888-6222


Ben Sage, Sales Representative. Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON
www.facebook.com/SageAdviceRealEstate  www.bensage.com www.oxfordcountyhomes.ca

I am excited about Re/Max Curbside Marketing

For almost a year now (I keep telling you we're ahead of the curve), the office of RE/MAX a-b Realty ltd and its agents have been working with Quick Response Codes.  Many of us have implemented these codes into our marketing program, using them on our business cards for profile/contact information, or inserting them into feature sheets or onto lawn signs for quick access to information.



With the launch of Curbside Marketing, RE/MAX has made it absolutely simple to implement an advanced information system as a key part of marketing your listings.

For my listing clients, I am now including a custom sign rider (I'm sure you've seen these before) that doesn't simply have a URL on it (www.whateveraddress.com) as it has in the past.  The sign rider will now contain TWO methods of gathering information; the first is a "Short Code" that you may text on your phone (free of charge, of course), and receive INSTANT information on the listing you're sitting in front of! (Photos, description, property description and details, as well as video!).  The second is the trusty QR Code, which, for the more savvy Smartphone users, can be scanned by your phone's camera, and bring up the listing information without keying a single digit/letter into your phone!

Cool eh?


Watch this space for more, as I roll out this amazing service for my selling clients.


Ben Sage, Sales Representative. Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON
www.facebook.com/SageAdviceRealEstate  www.bensage.com www.oxfordcountyhomes.ca

Free Plug Friday on 104.7 Heart FM

Hello everyone!

Last week I had the extreme pleasure of being featured on 104.7 Heart FM's FREE PLUG FRIDAY with Liz and John!

In case you're interested, here's how it sounded.

BEN SAGE, REMAX FREE PLUG FRIDAY HEART FM FEB. 4.11(2) by Ben Sage, Salesperson


Ben Sage, Sales Representative. http://www.bensage.com http://www.oxfordcountyhomes.ca Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON

Panicky Beurocrats threaten to put a damper on the Real Estate Market again....

In a chilling reminder of what happened to our market as of July 1st, 2010, it is today being speculated that Jim Flaherty, our wonderful Finance Minster may act to stem the scourge of consumer credit that us Canadians are apparently awash in. 

Pundits have been ironically warning us for nearly a year, as our spending lifts the country further from the throws of a double dip recession, and distances us from our under-water American counterparts, that our growing household debt is a problem. 

Am I talking about raising interest rates?  Not likely at this point.  This certainly wouldn't help our escalating Loonie keep pace with the rest of the world.  What is being suggested today has far more sinister consequences for the real estate market.  For buyers and sellers alike. 

The reduction of the maximum mortgage amortization from 35 years to 30 years (or even 25?). 

Two years ago, maximum amortizations were reduced from 40 to 35 years. The results on the Real Estate market were difficult to track, as local pricing / market trends were all over the place in 2008. 

This time around, I'm 100% certain that it will chill an otherwise recovering new and re-sale housing market in Woodstock.  Let's look at a scenario.

December 2010's average sale price in Woodstock was $183,107.

Assuming 5% down over 35 years at a fictional rate of 3.94%, your payment would be $760.65

At 30 years, payments translate to $821.28

Under the same terms, at 25 years amortization, the payment balloons to $909.37

With Woodstock property taxes increasing at par with assessment phase-in, HST now in full effect on Hydro, gas, and other services,  the dawn of Metered Water services, Time-of-day Hydro usage, Rising Garbage tag prices, and other financial pressures on the household, what do you think could happen to the value of your home? 

Fewer buyers able to buy, fewer sellers able to sell for "what they need" out of a home... 

Basically, a big chill.  2007-2008 all over again.

The time to list is now.  Seriously!



Ben Sage, Sales Representative. http://www.bensage.com http://www.oxfordcountyhomes.ca Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON

The Status Report - Woodstock Residential Market Update, January 2011

2010 was a very interesting year in Real Estate Sales in the Woodstock and District Real Estate Board.

Here's a look at some of the numbers:

The average sale price in 2010 was $218,216, up  3.44% from an average 2009 sale price of $210,957. For reference, 2008's average sale price was $215,202, and 2007 was $210,510.

Here you can view a Line graph of Historic Sales Values in Woodstock for the 2009 and 2010 Calendar year, as well as a bar graph illustrating the number of Residential homes sold in Woodstock for the same period.

It is interesting to note the trend - As predicted by myself and many in the sector at the conclusion of 2009, due to low interest rates and deferred purchasing, the first half of the year would be a busy time, with prices being pushed higher by steady supply and increased demand. Take a look at what happened to average sale prices after July, 2010.  The impact of the HST  had a large psychological effect on the buyers in the marketplace.  Additional factors that caused the decrease in sales volume and subsequently in the average sales price (by tipping the supply and demand scale) include the threat of rising interest rates ("buy now before the rates go up!), and tighter lending requirements. 

Going forward into 2011, I am confident that we will see very much a repeat of 2010 in terms of overall volume and average sales prices.  We've seen a pretty stagnant growth pattern year over year since 2007, and next year should look somewhat the same.  I expect slightly fewer number of sales year over year from 2010, and average sale prices to remain strong, but not growing much past the $220,000 mark.  It is expected by many industry analysts that we will have a very strong first half of 2011, followed by a stagnation in the latter parts of this year.  In other words, the graph should look strikingly similar.

Though we do not have any major factors on the horizon that might influence the market (such as the HST introduction), we do have several smaller factors influencing market strength.  The ongoing threat of higher interest rates has been somewhat subdued by latent recoveries in the domestic and American markets, but the recovery is gathering steam.  This means that EVENTUALLY interest rates will start to climb, and when they do, this is bound to have a negative impact on housing values.  It's been said that rates may begin to climb at the conclusion of spring 2011.

What does this mean for you?

Well, if you're thinking it's time to sell, the time to act is NOW.  Catch the wave that is likely to crest in March or April if you're looking for the best value in 2011. 

If you're buying, suppressed demand in the market means you will have time to act, but shorter supply trends indicate that prices are likely to increase throughout the year.  Be aware of interest rate trends, and make sure you get a RATE GUARANTEE if you are planning to buy.  If rates go up, you will be able to purchase less house for similar cost, so it makes sense to act soon. 

If you have questions about this post, or Real Estate in general, feel free to email me here.

I wish you all a safe and prosperous 2011.  I'm here, and ready to help!



Ben Sage, Sales Representative. http://www.bensage.com http://www.oxfordcountyhomes.ca Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON

A Public Service Announcement for my Real Estate Agent friends, Clients, and Private Sellers alike...

Local News for Friday, December 17, 2010

Wellington County O.P.P. are asking for assistance from the public in tracking down a pair of man in their thirties, after police say they entered a residence with a real-estate agent, then proceeded to tie up the agent and ransack the house.

O.P.P. responded to the call just after 12:30 yesterday afternoon to the dwelling on Wellington Road 124 in Erin. Police say the suspects removed an unknown quantity of property and then fled. The victim did not require medical attention. Police describe one of the robbers as black, almost six-feet tall, and about 200 pounds. The other man is described as hispanic, standing about six-foot-four, and weighs around 240 pounds. The pair were driving an older model Pontiac, silver--grey in colour.


Ben Sage, Sales Representative. http://www.bensage.com http://www.oxfordcountyhomes.ca Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON

Fall/Winter 2010 Woodstock Condo Report

After a tough year for Condominium sales in 2009, the prospects for selling a condominium in the Woodstock market are definitely improving, as signs of stability are returning to the broader economy.  A return to moderate confidence in the market has fueled a rebound in the Condo market throughout 2010.  Compared to only 60 condominium units sold (4 new) in the entirety of 2009, the market has shot back with a 21% rebound this year, with Year to Date sales of Condominium units in Woodstock totaling 73 (and we sit at November 30th).  5 of these reported sales were of new condominiums.

We have also seen some new and exciting condominium developments in Woodstock, including Woodstock's first "Stacked Townhouse" Condominium Complex in the South end of Woodstock.  With prices starting at $169,900 with a garage, this style of affordable luxury is certain to catch on.  They are a commuters dream, just seconds from Highway 401.

In the northeast end, The Builders Group is listing Residential attached condominiums, in 2 storey non-traditional style.  For the budget minded, these units start at $219,900.

In the Alder Grange subdivision, on the north end of Woodstock, sales continue of new Ranch-style attached condominiums, with either single or double garages, in 2 - 3 bedroom configurations, while across Highway 59, you have additional choices available, with Bungalows and Loft style Condominiums.

Employment prospects in Woodstock and Area remain promising, with CAMI on 6 day rotations indefinitely.  This plant is expected to churn out 250,000 vehicles in 2010, a record for this facility.

Toyota has been and continues to produce the RAV4 in its Woodstock facility, and many Woodstonians make the 25 minute drive up the 401 daily to produce Corolla's in the Cambridge facility.  The Woodstock factory employs roughly 2000 people and produces 150,000 RAV4's annually.

If you're making the commute from Cambridge or London into Woodstock, may I suggest looking at some affordable Condominium options?  With Condos ranging from $65,000 up to $300+, we certainly have something that suits your budget, and needs.

I'd be happy to help.

For more information on Condominiums in Woodstock, head on over to Your Condo World website, or email me and we can chat!










Ben Sage, Sales Representative. http://www.bensage.com http://www.oxfordcountyhomes.ca Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON