Insider's Guide to Real Estate: A Conversation with Louise McKnight

Think today's mortgage process is complicated and stressful. You're right, it is. But it doesn't have to be. This is the House Rich podcast, and we've simplified the mortgage process. Your host, Matt Parker, AKA Mortgage Matt, delivers practical advice in a fun and entertaining way to help you understand your mortgage so that you can start making money, not the bank. So let's get your homeownership journey started. Here's your host, Matt Parker.

Hey, Matt Parker here. Very excited. Grateful to have Louise McKnight with me today. Louise, thank you for joining me.

Oh, you're so welcome. Nice to be here, Matt.

No, I appreciate it. No, I. I don't. Louise is, you know, an excellent real estate agent, has a team out in the South Surrey area. And I like to start off with more of a fun question. If you have something for us, of.

Absolutely, yeah.

What's one thing not many people know about you or is unique?

Unique to me. I'm very involved in. I started the White Rock Pride Society in White Rock. I'm an ally. I have lots of gay friends. And there was no existing Pride Society. So two other gentlemen who are married, Ernie Kassen and Michael, they. They ended up. We decided to start the society about five years ago, and now it's thriving and super fun and lots of events and really proud of that.

Oh, fantastic. Good for you. That's very cool. That's a very cool thing, you know, you know, doing something to help the community. Obviously, you're probably very involved in other areas as well, so. Yeah, that's. That's very. Thank you for sharing. I appreciate that.

Yeah, you're welcome.

So then how back to real estate? Because that's what we like to talk about mostly is, so how did you get started in real estate? Sort of what drove you to the industry?

Well, I was actually in the newspaper business. I was the associate publisher the NOW newspaper. And that was quite a few years ago. I got into real estate in 2008, so I could just see what was happening with the paper as the big news yesterday, what was happening with the newspaper industry. So I felt it was a good time to figure something else out for my career. And, yeah, so I had friends in real estate and they suggested actually I get in and I haven't looked back. I've loved it.

And when. When was that? When did you start into the. Actually, you know, getting into real estate? When was that process?

Yeah, 2008. So I started in 2008, got my license and joined at the time with a small company called Bay Realty. Okay. In the end, I ended up purchasing, taking over Bay Realty and buying the business with a colleague, Jeff Glazier. And so we ran Bay Realty, had 36 agents, and then just sold it about three years ago to McDonald Realty.

Oh, very cool. Good. Congratulations. That's.

Yeah, thank you.

Fantastic.

Yeah, it was a great business, but it was a lot running the business and running the team. So it was just a bit much.

No.

I'm curious because I know that, you know, what you do and. And what we do is like, you have to wake up every day and you have to, you know, do the work. It's not. It's not the easiest thing to do, as a lot of people might. Might think it is. And so. So what. What do you love about it and sort of what gets you up in the morning?

Fortunately, I'm somebody who doesn't need a lot of sleep, so it's easy for me to get up in the morning. But, you know, I'm very regimented. I have my morning routine. I work out every day, take the dog for a walk. So I'm a very structured person. So for me, it's just how I start my day. But I love real estate. I love my team members. We've got a really diverse group on my team, and we are much like a family. We've been together the longest team member and I, Leslie, we've been a team for 10 years, and then Ryan seven years, and then added a few more on through. So we're a good long standing team. So we just really get each other. And really you've got somebody to chat with if you are having a day where sometimes on your own, it can be a little challenging. But, you know, when you've got a group to fall back on and talk things over with, it really just more energy. It's great. I love it.

Yeah. That's nice that you've been together for so long.

Right.

I think that's. That's somewhat unique. I would imagine in the real estate.

World, a lot of teams go through a lot, but I think that you either love each other as a team or really are ready to strangle each other. Fortunately, we love each other and get along great. We're much like a family. I call Ryan my work son. He happens to be the same age as my real son.

Oh, funny.

And same height. Six, four. So we have a joke. I'm his work mom and he's my work son. Lassie's like a sister. Like, we're really, really a close and yeah, I love it. And then obviously the clients too, you become so close. It's such an intimate relationship and it can be very long term or it can be short term. So it just depends on, you know, what maybe they're moving away or something. But if you've become basically their best friend for a few months where you're going through the process and you're handling their. Most people's largest asset.

So in one of the, I would say one of the top level stressful things that, that most people go through in their life is, is selling or moving or buying real estate or, or. Yeah, you know, the financial worry of it and all those different things.

Right.

It's, it's gives us a lot of opportunity to be of service to, to make that as stress free as possible. I like to say that, you know, especially on my end getting a mortgage, it's never been fun, but it's probably, yeah, the least amount of fun it's ever been.

Especially these days. We're getting less fun and less fun all the time, you know.

Yeah, it was, it was actually wasn't so bad. I was never actually that easy, but it wasn't so bad when money, when funds were very cost effective. But yeah, nowadays it's, it's definitely changing the, the conversation. But so coming back to the market today, so as we're recording this, we're in, you know, mid June 2023, just had a somewhat surprising rate, rate increase from the bank of Canada. And you know, the market was picking up, it seemed quite a bit.

Yeah.

At the spring and was.

We've had a very busy spring.

So.

Absolutely.

What. Do you have any, you know, advice or guidance for anyone that's potentially looking to sell or buy another place or even get into the market in, in sort of what we're faced with today with I think lack of inventory, low housing supply.

Yeah, there's higher rates. Yeah, low inventory. And it does, you know, as soon as the rates announce, literally we see the tap shut off at least for a week or two. People just need a little time to digest. So and that's expected. You know, it's a shock to the system and it does add quite a few dollars to your payment every month. So people need to adjust. With sellers, I think unless you're priced extremely well and have a great product, you know, it shows as a 10, you're probably going to be staying in the market for a little bit. Although there's low inventory, buyers are exceptionally picky. And then finance, as you know, is an issue so, you know, it's just being excited about the offer, but then also waiting to see if all subjects get removed. Of course, including finance. We've had a few of those fall through lately. They were sure they're going to get the finance that just didn't work out. So unfortunately is a test of patience in this marketplace. And if you're buying, I would say just again, be patient with that process. Definitely pre approval. Absolutely. You know, do your best to find out where you're at financially. As you know, it's the time commitment to getting approval now is really extended compared to what it used to be a few years ago. So usually that subject removal time is not enough time by the time an appraiser comes in and you get your finance in order. So it's a process for sure and just waiting the right house is out there for you and not to feel panicked because, you know, we'll always find the right house. I've never had anybody go homeless. It's out there. It's just being patient and finding the right one.

Oh, that's great advice. Yeah. I think that you brought up a good point. When it comes to a couple of good points when it comes to mortgaging and financing the property, which is, you know, pre approval. Well, it's like get an actual underwritten pre approval. Like get someone to review the documents to make sure you're actually approved instead of just an automated pre approval. I think is absolutely.

That's a very good point. Yeah. There's a big difference between automated and an actual approval.

And the, and the turnaround times right now are a little bit extended. Like a lot of the banks are a bit slow compared to where they have been in the past. I think. What if it was, you know, when the market slowed, they offload staff a lot of the times and then when the market ramps up, they, they're slow to, to add back on people to, to manage those service levels. So that's very good advice around making sure that if there's needing subjects for financing or something around financing, having that either done beforehand and just, you know.

Auditing or setting expectations for the buyer and the seller.

Yeah, yeah, that's fantastic. So, yeah, I know the market. It's. For me, I, I'd loved your thoughts because it seems as though. Because we, we read a lot of articles, we talk to a lot of people as well, but it seems as though there are some people probably holding off given that they have potentially a lot lower right now.

Yeah.

Waiting for renewal, worried about higher payments if they did sell and buy another place, things like that. Or, or maybe they're in a, a true variable rate mortgage where the payment doesn't change. So if they did anything, it'll reflect and now their payment will jump up, you know, 30, 40, 50% if they, yeah, if they change to another property. So I think that as we move into the new year or the fall of the new year, as a lot of people hit this renewal point, which I think even Scotiabank said that something around 40 ish, somewhere between 40 and 50% of their portfolio is up for renewal next year.

That's scary.

It's very scary.

It's a big number.

You think, you think that's a lot of people that will have a lot higher payments. So, you know, maybe that brings more inventory to the market potentially probably still not enough that's needed for population growth. But do you feel that the next six to 12 months is still a very good time to buy?

Oh, yeah, absolutely. I mean, who knows? We can't predict what's going to happen with the interest rate any more than you can. I mean, none of us know. But just what my recommendation. I think it's always a good time to buy real estate, but just be cautious, don't go to your, don't overextend yourself and you know, just notch it down a little bit and there's still great houses at a lower price range. And I think that people get too caught up in wanting the best and the maximum price. I know my own kids purchase recently and both of them were actually approved for almost double what they bought for. But that was their mother in their ear saying, and you know, now I'm happy because one had a variable which she's now fixed and my son was a fixed term, but it'll come up in a year and a half. So, you know, all of a sudden you do need that room if you do have to renew or if any life happens and, you know, you need a new furnace or a new car or something. So, so just, yeah, just be cautious. Don't overspend or overstretch yourself. Even if the bank says you can afford it. I would say just, you know, be wise.

Yeah, no, that brings us back. Sort of like what house rich means to you. And when we talk about that, that brings up a very good point because I always tell clients there's, there's two numbers, there's, what do you qualify for and what would you like to pay? Right.

What are you comfortable?

What are you comfortable? Because everyone's, everyone's budget. Everyone's spending is completely unique to them. So some people might be okay with a higher payment because they don't travel as much or they don't have, you know, big car payments or things to that effect. So they're okay with a higher mortgage payment. But then others like to do that. It's like you still want to live.

Life, have fun, and life just happens. Both my kids are in the film industry and the writers strike on now they're fine right now, but if it carries on, it could affect their livelihood. So, you know, you just don't. Every industry has its own unique quirks and, you know, it's just to be prepared.

Yeah, no, great advice. And I know you sold some very nice properties, some beautiful homes. Is there any, Is there anyone either, you know, a situation or a transaction or a property that. That is most memorable to you, that stands out as one that you'll never forget?

Oh, yeah, there's a few of those. I had a really fun one where I had two developers, large developers who were both selling. This was before when you could double end. Now we don't double end, but you could double end them. So I had to, excuse me. The transaction on both houses. And of course they're big developers, so they were tough negotiators. And they went on for probably two weeks. And in the end it was like they wanted the hockey jersey on the wall or the deal's not going to happen. In the end, everybody's friends and they get along great and now we all laugh about it, but that was a, that was one for the books for sure. That was a lot of late night.

Came down to those little details.

Right, That's Eagle.

Eagle, yeah.

Yeah. But, you know, every transaction is unique and I'm so excited every time somebody sells because they're excited. So my best phone call is saying, guess what? You're sold. You've got the deposit check. And they're so happy. And. Yeah, so I don't think whether it's a small condo or a huge mansion, the emotion is still the emotion. And it really just. People are people. So it's, it's fun to experience.

Yeah, no, good point. Right. It's everyone, it's. It's. They're all in similar positions and, and it's, it's what's.

And these are across the board, very similar. People have a lot of questions and, you know, have a lot of phone calls. And I look at it like, you know, while I have many clients, they have one agent, so I want them to feel like they're my one client. So, you know, always ready to answer the phone, to call back, to email, to text, you know, whatever makes you more comfortable with the process.

Wonderful. Well, thank you, Louise. I really appreciate you taking the time out of your schedule to join me. What would be if anyone wants to reach out, contact you? What's the best way to contact you? Is it email? Phone call? What would be the.

Probably my email, which is louise. So l o u I s e@macrealty.com so louise l o u I s e at m a c r e a l t y dot com.

Fantastic. Well, thank you again.

Okay, you're welcome. Have a great day.

You too. Okay, bye.

Bye, Matt. Bye.

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