Real estate

Property is local. Learn one neighbourhood deeply.

• Collect 20 recent sales: price, size, days on market, condition.
• Compute price per square foot and the spread.
• Note rent levels, vacancy and new supply.
• Write a one-page market note.
• Record the source and date of every sale; use closed sales, not asking prices.
• Use the median rather than the average, so one unusual sale does not distort the picture.
• Compare with rent: annual rent divided by price gives a gross yield; work it out for three property types.

Activity. Build a 20-sale table and market note.

Standard to meet. Add sources and dates to the numbers.

Real estate is regulated.

• Provincial regulators license agents and brokers; only licensed people may trade for others.
• Deposits go into trust accounts with strict records.
• Sellers and agents must disclose known material facts.
• Anti-money-laundering rules need client identification.
• Write the steps to become licensed in your province: course, exam, brokerage sponsor and insurance; check the regulator's current list.
• Learn the difference between a conflict you must disclose and one you must avoid, and write an example of each.
• Keep a client-identification file: what you check, when, and where it is stored; check the provincial and federal rule.

Activity. Build a rules table for your province.

Standard to meet. Cite a source and a date for every row.

Use comparable sales and income.

• Comparable sales method: adjust for size, condition, location.
• Income method: net operating income / capitalisation rate.
• Check hidden costs: repairs, taxes, fees.
• Write a short valuation note.
• Choose three comparable sales that are recent and close by, and adjust each for size, condition and location, showing every adjustment in dollars.
• For the income method list rent, vacancy allowance, taxes, insurance and repairs; net operating income is rent minus vacancy and costs.
• Say which method you trust more for this property and why, in two sentences.

Activity. Value one property two ways.

Standard to meet. Show both methods.

Margin of safety.

• Add closing costs to the purchase price to get the true cost of buying.
• Add repair costs and holding costs for the time you own the property.
• Estimate the sale price or rent income from comparable sales.
• Work out the break-even sale price and stress test it against a lower price.
• List closing costs: legal fees, land transfer tax where it applies, inspection and title insurance; check the provincial rule for each.
• Add holding costs per month (interest, taxes, insurance, utilities) and multiply by the months you expect to hold.
• Run three cases: base, a 5% price fall, and a sale that takes three months longer.

Activity. Build a deal sheet with a 5% fall case.

Standard to meet. Show the stress case.

Process protects everyone.

• Know the stages: listing agreement, offer, conditions and closing.
• Record every step with a date and the person who did it.
• Use a lawyer or notary and a qualified inspector where the transaction needs them.
• Handle conflicts of interest in writing.
• Make a timeline from listing to offer, condition removal, closing and possession, and put every date in a calendar.
• Keep a copy of every signed document and every message that changes terms.
• Write a handover note that tells the client the next step in plain words.

Activity. Build a transaction checklist.

Standard to meet. Date all steps.

Reputation is the business.

• Build referrals and a local presence by attending community events.
• Publish plain-language guides for buyers and sellers.
• Respond to enquiries within hours.
• Collect reviews honestly and only with the client's agreement.
• Write a plain guide for first-time buyers that lists every cost with an example figure.
• Reply to every enquiry within a time you state, and log the reply time.
• Ask for a review only after the client agrees, never offer a gift for one, and check the regulator's advertising rule.

Activity. Run a 4-week funnel.

Standard to meet. Record the funnel.

Treat everyone fairly.

• Fair-housing and human-rights rules forbid discrimination.
• Know the cycle: prices, sales volume and interest rates move together, and a downturn hits thin-margin deals first.
• Keep records for the number of years the provincial regulator requires.
• Keep insurance current for your business and your deals.
• Write a short fair-treatment policy: same questions, same information and same service for every client; check the provincial human-rights code.
• Set a downturn plan for a 10% price fall and for sales volume halving.
• Check whether errors-and-omissions insurance is required in your province and what it covers.

Activity. Write a risk register.

Standard to meet. Name an owner for each item.

Practise with a mock transaction.

• Pick a listing, value it and plan the sale.
• Track the deal for 60 days.
• Stop rule: negative margin means no deal.
• Review the result against your plan at the end of the 60 days.
• Pick a real listing from public records and write a value and sale plan without contacting anyone.
• Keep a 60-day diary of price changes, new listings and days on market for the neighbourhood.
• Compare your prediction with what happened and write one lesson.

Activity. Run the mock and present review.

Standard to meet. Review has decision.

L1: Built environment aware learner. You can define: name the main terms, people and rules of real estate. Focus module: Read a local property market (Understand, 6 h). Property is local. Learn one neighbourhood deeply. Key points: Collect 20 recent sales: price, size, days on market, condition. Compute price per square foot and the spread. Note rent levels, vacancy and new supply. Write a one-page market note. Record the source and date of every sale; use closed sales, not asking prices. Use the median rather than the average, so one unusual sale does not distort the picture. Compare with rent: annual rent divided by price gives a gross yield; work it out for three property types.

Speaker notes. Teach: open with the worked example. 20 sales: median 640 per sq ft; range 560 to 760; median 28 days on market. A 900 sq ft unit at the median is 900 x 640 = 576,000, and the range gives 504,000 to 684,000. If it rents for 2,400 a month, annual rent is 28,800 and the gross yield is 28,800 / 576,000 = 5%. Then set the activity: Build a 20-sale table and market note. Mark against the standard: Add sources and dates to the numbers. Check at this level: What is price per square foot? Model answer: Price divided by area. Level note: Start here if new. Evidence: a one-page glossary and a visit or interview note.

L2: Site or office assistant. You can describe: explain how real estate works from first contact to result. Focus module: Know licensing, disclosure and trust rules (Apply, 6 h). Real estate is regulated. Key points: Provincial regulators license agents and brokers; only licensed people may trade for others. Deposits go into trust accounts with strict records. Sellers and agents must disclose known material facts. Anti-money-laundering rules need client identification. Write the steps to become licensed in your province: course, exam, brokerage sponsor and insurance; check the regulator's current list. Learn the difference between a conflict you must disclose and one you must avoid, and write an example of each. Keep a client-identification file: what you check, when, and where it is stored; check the provincial and federal rule.

Speaker notes. Teach: open with the worked example. Row: 'Accept a buyer deposit | provincial real-estate regulator | trust account and receipt | by the deadline in the provincial rule | trust ledger'. A second row: 'Disclose a known defect | seller and agent | written disclosure | before offer | signed form'. Date each source. Then set the activity: Build a rules table for your province. Mark against the standard: Cite a source and a date for every row. Check at this level: What must sellers disclose? Model answer: Known material facts. Level note: Evidence: a flow chart and a two-minute spoken explanation.

L3: Tradesperson or coordinator. You can apply: carry out a routine task in real estate to a written standard. Focus module: Value and analyse a property (Apply, 10 h). Use comparable sales and income. Key points: Comparable sales method: adjust for size, condition, location. Income method: net operating income / capitalisation rate. Check hidden costs: repairs, taxes, fees. Write a short valuation note. Choose three comparable sales that are recent and close by, and adjust each for size, condition and location, showing every adjustment in dollars. For the income method list rent, vacancy allowance, taxes, insurance and repairs; net operating income is rent minus vacancy and costs. Say which method you trust more for this property and why, in two sentences.

Speaker notes. Teach: open with the worked example. Rent 40,000 a year less 5% vacancy (2,000) = 38,000; less costs 10,000 = 28,000 net income. At a 5% cap rate the value is 28,000 / 0.05 = 560,000. At 6% it is 28,000 / 0.06 = about 466,667, so the cap rate you choose matters a great deal. Then set the activity: Value one property two ways. Mark against the standard: Show both methods. Check at this level: How is value found by income? Model answer: Net operating income divided by cap rate. Level note: Evidence: a supervised task record that meets the standard once.

L4: Supervisor or agent. You can analyse: diagnose why a real estate result missed its target and fix it. Focus module: Cost a deal and test it (Evaluate, 8 h). Margin of safety. Key points: Add closing costs to the purchase price to get the true cost of buying. Add repair costs and holding costs for the time you own the property. Estimate the sale price or rent income from comparable sales. Work out the break-even sale price and stress test it against a lower price. List closing costs: legal fees, land transfer tax where it applies, inspection and title insurance; check the provincial rule for each. Add holding costs per month (interest, taxes, insurance, utilities) and multiply by the months you expect to hold. Run three cases: base, a 5% price fall, and a sale that takes three months longer.

Speaker notes. Teach: open with the worked example. Buy 360,000; costs 24,000, so total cost is 384,000. Sell 420,000; fees 21,000, so net is 399,000; profit 15,000, about 3.9% of cost. If the price falls 5% to 399,000, fees of 5% are 19,950, net is 379,050 and the result is a loss of 4,950. Teaching figures in CAD. Then set the activity: Build a deal sheet with a 5% fall case. Mark against the standard: Show the stress case. Check at this level: Why stress test a deal? Model answer: To see if it survives a price fall. Level note: Evidence: a fault or gap analysis with a fix and a repeat test. This course targets this level.

L5: Project manager. You can evaluate: judge options for real estate against cost, risk and quality. Focus module: Find clients and build trust (Create, 6 h). Reputation is the business. Key points: Build referrals and a local presence by attending community events. Publish plain-language guides for buyers and sellers. Respond to enquiries within hours. Collect reviews honestly and only with the client's agreement. Write a plain guide for first-time buyers that lists every cost with an example figure. Reply to every enquiry within a time you state, and log the reply time. Ask for a review only after the client agrees, never offer a gift for one, and check the regulator's advertising rule.

Speaker notes. Teach: open with the worked example. Funnel: 40 contacts, 10 viewings, 3 offers, 1 sale. Rates: 10 / 40 = 25% to viewing, 3 / 10 = 30% to offer, 1 / 3 = 33% to sale, and 1 / 40 = 2.5% overall. To expect four sales you would need about 160 contacts. Then set the activity: Run a 4-week funnel. Mark against the standard: Record the funnel. Check at this level (this question is covered in module 2: Know licensing, disclosure and trust rules): Who may trade for others? Model answer: Licensed agents and brokers. Level note: Evidence: an options paper with numbers and a recommendation defended to a panel.

L6: Development manager. You can create: design and pilot a new offer or process in real estate. Focus module: Manage legal, fair-housing and market risk (Evaluate, 6 h). Treat everyone fairly. Key points: Fair-housing and human-rights rules forbid discrimination. Know the cycle: prices, sales volume and interest rates move together, and a downturn hits thin-margin deals first. Keep records for the number of years the provincial regulator requires. Keep insurance current for your business and your deals. Write a short fair-treatment policy: same questions, same information and same service for every client; check the provincial human-rights code. Set a downturn plan for a 10% price fall and for sales volume halving. Check whether errors-and-omissions insurance is required in your province and what it covers.

Speaker notes. Teach: open with the worked example. Risk: 'Price fall | 4 x 4 | margin of safety | owner | quarterly'. A 10% fall on a 420,000 property is 42,000 of value, so a deal with less than that margin of safety is skipped or re-priced. Then set the activity: Write a risk register. Mark against the standard: Name an owner for each item. Check at this level: Why is fair housing important? Model answer: Discrimination is illegal. Level note: Evidence: a pilot with measured results over at least 30 days.

L7: Developer or company director. You can lead: run a team or business in real estate and develop others. Focus module: Pilot with a paper deal (Create, 8 h). Practise with a mock transaction. Key points: Pick a listing, value it and plan the sale. Track the deal for 60 days. Stop rule: negative margin means no deal. Review the result against your plan at the end of the 60 days. Pick a real listing from public records and write a value and sale plan without contacting anyone. Keep a 60-day diary of price changes, new listings and days on market for the neighbourhood. Compare your prediction with what happened and write one lesson.

Speaker notes. Teach: open with the worked example. Mock deal margin 6%: on a total cost of 384,000 that is a profit of about 23,040 (384,000 x 0.06), so net proceeds after fees would need to be 407,040. The margin is above zero, so the decision is go. Then set the activity: Run the mock and present review. Mark against the standard: Review has decision. Check at this level: What triggers no-go in the mock? Model answer: Negative margin. Level note: Evidence: a record of results over a year and of people you have coached to a higher level.