Frequent Asked Questions

HouseSigma was established in 2016 by our CEO Joseph Z. The brokerage was established in 2018. 

At one time we had certain features on the HouseSigma platform  blocked unless the user had a premium account. Only HouseSigma agents had the ability to give out premium accounts to the users who they were working with to purchase or sell a property. As of right now all features are available to all users until further notice.

First, there is no perfect AVM (automated valuation machine) in the world, all of them are lacking in some aspect, including HouseSigma's. How our algorithm normally come up with the number is based on long term market trend and comparable. It naturally won't react well to a sudden change of market condition and it will not be able to consider multiple offer scenario.  That's the area you will have to educate your client and make adjustment to the estimated price.

The estimated price should be used as a starting point for your own valuation rather than a number that you should follow to the T.  -  Joseph Zeng, CEO

The HouseSigma algorithm determines the approximate fair market value by analyzing the comparables sold using the following breakdown:

• # of bedrooms

• # of bathrooms

• Property type

• Location

• Date Sold 

• Lot Size

• Square Footage

NOTE: This estimated value is a great starting point when determining the fair market value, you as the realtor still need to do a comparative market analysis. 

The first appointment with the lead is incredibly important, I look at it as a job interview. Make sure you come prepared with knowledge about the neighbourhood, the market, the listing, and be very personable. 

Look at it as an opportunity to showcase why they should work with you. Try and give them a learning experience, some value they can walk away with. 

The goal is to do enough to make sure they call you back for the second appointment. 

"Do not oversell the listing on the first meeting" -  Ash

The last thing you want to do is get into the habit of giving out cash back or rebates to the buyers. 

Explain to the buyer the costs involved with running your real estate business. 

• Licensing fees

• Vehicle payments, insurance, gas and maintenance fees 

• Real Estate Insurance 

• Taxes 

• Your TIME.

The buyer needs to understand that the service you are providing will save them thousands of dollars above any sort of rebate. You need to express this information to the buyer with full confidence. If they are still insisting for a rebate, then call or message Ashkan for a discussion.

TIME-BLOCKING is incredibly important when organizing your schedule. This means you set out a certain time each day for a specific activity. 

For instance, you will do your follow-up calls from 9am to 12pm each day. 

OR

You time-block from 4pm to 8pm for showings each day. 

However you decide to do your schedule, make sure you outline it for yourself very clearly and stick to the schedule.   

Follow the The Perfect HouseSigma Day

I normally bring up this question before the client even asks it, use the opportunity to demonstrate that you are interested in providing great service and not just after the commission. 

“I would recommend viewing as many properties that we need to in order for you to have a complete understanding of the market and how it fits into your criteria. This way when you find the right place, there is no hesitation when submitting an offer at the right price.” 

The sellers market means that property owners have the advantage when selling their property due to the following factors: 

- Economic factors 

- Interest rates 

- Low inventory 

- Global factors 

- Immigration 

The buyers market is characterized by declining property prices and reduced demand. The key factors to look out for are: 

- Interest rates trending higher which makes properties less affordable - Higher inventory means more selection for the buyers 

- Economic factors such as unemployment 

Note the answer may differ case by case. If the client has a strong cash flow then they should consider refinancing and tapping into there equity in order to take out the cash capital they need for the down payment for the new property. 

This would give them an investors advantage in the market as they now have a larger sum invested. 

In the case where the financial cash flow is low, then it would be ideal for them to sell first then purchase. 

The first step in convincing a buyer to come up in price is to gain their trust. If the buyer does not trust you then they will never follow your guide. Gain their trust by showcasing your skill set during the showings, during your follow up calls with them and lastly through your Comparative Market Analysis. 

Having extensive knowledge of the current market conditions is also very important so you can educate them on what is going on. 

There are no tricks to this, it is simply providing great service and providing them with the data to back you up when determining the price. 

When approaching an offer date for a property your client is interested in, it is best to prepare for it in advance. 

Removal of the conditions are key to be successful during an offer date when there are many competing offers.

• Make sure the client is pre-approved and has there finances in order

• Make sure you review the inspection report prior to the offer date. If there is no inspection report then get one done.

• Make sure the closing date lines up with what the seller wants. 

• Make sure the client has a clear understanding of your fair market value analysis

Note:  You want to illustrate that it was your buyers decision to go firm.  You can do this by including the conditions but having your client strike out and initial or use the OREA form 127 "Acknowledgment of Condition in Offer"

This all depends on the irrevocable time you have set on the offer documents, note there are different strategies involved with the irrevocable time to give you the best chance possible to close the deal. 

Scenario #1 - If sending a low-ball offer on a property without an offer date then you want to give them 24 hours to respond. 

Scenario #2 - If sending a bully offer on a property that has an offer date then you want to give a very short irrevocable time. 4 hours or less. 

Scenario #3 - If sending a offer on the offer date, if the offer review time is 6pm then make the offer irrevocable until 11pm that same night. 

If your offer is rejected then you may have the opportunity to submit a revised offer that may be more appealing to the seller. Note there will not always be a chance to do so as other competing offers may come in.

During the follow up calls with the leads you need to have high energy and always have a smile on your face. Believe it or not they can hear your smile! 

Make sure to be friendly and remember to provide some sort of value to the conversation. 

Besides asking them “if they had spotted any listings they wanted to see in person”, try to give them some insight about the current market condition and explain how it relates to their specific criteria. 

If you don’t know their criteria then this is also a good time to better understand what they are looking for. Try to get them to do most of the talking.

In Ontario, if the property is over $1M in value then a down payment of 20% is required. If the buyer is a first time buyer and is purchasing a property for less than $1M then they can qualify for a downpayment between 5% and 10%. 

The minimum downpayment in Canada is 5%.

If you are on the buying side of the transaction than you must consider the following costs: - Downpayment 

- Land Transfer Tax 

- Property Tax 

- Utility Cost 

- Title Insurance 

- Lawyer Fees 

This typically comes up to 3% of the purchase price. 

If you are on the selling side of the transaction than you must consider the following costs: - Agent Commission 

- Moving Costs 

- Lawyer Fees 

In most instances, yes it is a known fact the staged properties sell much faster so always present staging options to the seller clients. Even a simple designer consultation or added accent pieces will go a long way for your listing. 

Do not expect the buyers to have an imagination when walking through a property, use everything you can to your advantage to attract buyers through pictures, virtual tours and in person showings.

The One Year Warranty addresses construction practices and defects, unauthorized substitutions and the fitness of a home for habitation, among other points. The Two Year Warranty addresses topics such as defects and violations of the Ontario Building Code to do with health and safety. The Seven Year Warranty concerns major structural defects.  (for more detail including transfer of the Tarion Warranty to a New Purchaser...  see Tarion Warranty in the Learning Studio)

Sellers must disclose latent defects (defects that aren’t clearly visible) while patent (clearly visible) are not required as they can be found during a home inspection.

In extreme situations where the seller fails to disclose any significant problem would be considered concealment (fraud). The seller might be responsible for the repair depending on the damage and whether the seller knew of it beforehand. Talking to neighbors around the property can also help you uncover anything wrong with the property.

The buyer will be advised by their lawyer that they can not stop the closing from happening due to appliances not working. They would still need to proceed with the closing and fund the property. The buyer would then need to pursue the seller in small claims court for out of pocket costs.

 NOTE: If the property had major water damage, mold, or fire damage then the buyers lawyer will advise different options for the closing which may include: reduce the purchase price or hold back a set dollar amount to cover damage, or extend the closing period to give the seller enough time to remedy the issue. 

Short answer is Yes but there are some items to consider. In a sellers market if you include a home inspection condition on an offer date scenario then chances are your offer will not be accepted as the seller is looking for firm offers. 

It is best to have the inspection done prior to submitting an offer so you can remove the condition.

Yes it would be ideal to save a buyer revisit 24-48 hours before the closing date to do a final walkthrough of the property to ensure nothing unusual has occurred. You will be looking out for major damages to the property or missing items that were supposed to be included in the original agreement of purchase and sale. 

The answer to this question needs to be a perfect mix of your skillset earned through the HouseSigma training system and the power of the HouseSigma app/website. The client needs to understand you are being trained by the best in the business. Everything from the market analysis to the final deal strategy. This training coupled with the exclusive access the client gets to the HouseSigma database(when listing) is what sets you apart from the competition. 

Typical commission breakdown is 2.5% for the listing brokerage and 2.5% for the co-operating brokerage. Note the agents do not take home the complete 2.5%, there are commission splits with the brokerage. 

You need to be following the market very closely to be able to answer this question with confidence. As your database grows and you are dealing with multiple clients who are looking in all different types of properties, locations and prices you will get a natural sense of what is happening in the market. 

Make sure to breakdown your answer into parts: 

• Condo Market

• Freehold Market

• Toronto Market

• GTA Market

These 4 parts can vary dramatically depending on the market situation. READ about the active real estate market daily to stay sharp with your data.

The status certificate is a very important document relating to the purchase of a condo property. The status certificate outlines the following key items about the condo complex: 

• Reserve fund amount

• Rules and Regulations

• Budget

• Lawsuits against the condo corp.

It is important to request the status certificate from the seller agent when submitting an offer, the status certificate needs to be reviewed by the buyers lawyer to determine the details. A condition can also be inserted in the Schedule A of the Agreement of Purchase and Sale stating the status certificate needs to be reviewed before firming up the deal. 

When guiding your client through the condo market and showing properties, make sure to keep the following items mind:

• Location (Ideally you want to face south for the most natural light throughout the day)

• Views (Will the views be blocked in the future by another development?)

• Square footage (800 to 1100 sf is most ideal)

• Amenities (Gym, swimming pool, and sauna are most sought after)

• Builder (Aim for top builders like Tridel, Daniels, Lanterra, and Empire)

• Building reputation  (Google the building to see how it is rated on the internet)

• Cashflow (Run the numbers to see the rental rates)

Cash flow is incredibly important for an investor as it determines how much they would be positive or negative each month after their tenant has made the rental payment. To determine cash flow you need to breakdown the following expenses: 

• Mortgage payments

• Property taxes

• Condo fees (if applicable)

• Utilities (if applicable)

• Insurance 

Once you have determined the total expenses each month then you can determine how much rent you will need to make in order to break even. From there you can adjust the down payment to determine the break even point.

The buyer's first step is to connect with a lender or mortgage broker to determine their max budget. There max budget will be determined by the following items: 

• 2 Years of tax notice of assessment 

• Proof of employment

• Pay stubs 

• 3 months of bank statements

• Full credit report

• Proof of down payment (needs to be in there account for 3 months)

This answer will differ by case but the general response is a credit score above 600 would allow you to qualify for a mortgage. Note, there are many other additional factors to consider when getting qualified: 

- Income 

- Bad Debt 

- Taxes 

- Downpayment 

Mortgage loan insurance is there to protect the lender against default in payments by the homebuyer. If the buyer has a down payment of less than 20 percent of the purchase price, the lender will purchase default insurance and pass that cost on to the borrower. This can be paid up front or tacked on to the mortgage payments and stretched out over time. Mortgage loan insurance is offered by companies like Canada Mortgage and Housing Corp., Genworth Financial Canada, Canada Guaranty, or another approved private insurer.

Mortgage rules require that all mortgage applicants qualify at a rate that’s two per cent higher than your contracted rate or the Bank of Canada’s five-year benchmark rate. This is to ensure that borrowers will be able to make their mortgage payments should interest rates increase. 

The sellers market means that property owners have the advantage when selling their property due to the following factors:

• Economic factors

• Interest rates 

• Low inventory 

• Global factors 

• Immigration

The buyers market is characterized by declining property prices and reduced demand. The key factors to look out for are: 

• Interest rates trending higher which makes properties less affordable

• Higher inventory means more selection for the buyers

• Economic factors such as unemployment

In Ontario, if the property is over $1M in value then a down payment of 20% is required. If the buyer is a first time buyer and is purchasing a property for less than $1M then they can qualify for a downpayment between 5% and 10%. 

The minimum downpayment in Canada is 5%.

If you are able to afford the purchase and carry the property then you will benefit from the following: 

● Tax breaks 

● Financial gains 

● Appreciation in value 

● Equity 

● Capital gains 

● Freedom 

● Security 

● A sense of pride

MORE COMING SOON!

if there is a question you often need to refer too comment below and we will add to the library