Many of you over the past number of months may have been following the talks between the Competition Bureau and the Real Estate Biz. The following are my opinions based on my understanding of the facts.
The media has made a big deal about this new agreement between the Competition Bureau and the Canadian Real Estate Association. Many headlines have stated that consumers will save money and it's now "easier" to sell their properties on their own....this is not really the case. The perception is that you can now use the MLS system without a Realtor. That is not correct.
The MLS system is a system for Realtors. Always has been and always will be. Realtors have developed and paid for this tool. It belongs to Realtors, not consumers. Realtor.ca is an advertising site for consumers. In order for a listing to be posted on the MLS system one needs to use a Realtor. This system only has it's value because the information can be trusted. Any Realtor who puts a listing on the MLS system must verify the information and is held to a code of ethics when dealing with it. This has not changed.
Essentially the agreement with the Competition Bureau keeps local real estate boards from discriminating against Realtors who choose to list "mere listings" or listings with only a very limited number of services attached. My understanding is that this does not change anything for our local KW real estate board as there were never any rules or bylaws that kept those listings off the MLS system. So, now consumers can use a Realtor for a negotiated rate, for negotiated services to sell their property.....oh....wait....that's the way it was before the agreement!
The United States went through very similar changes in the past couple of years with the NAR (National Assocition of Realtors). My understanding is that after a short amount of time the changes made down there actually ended up increasing the average commissions paid to Realtors, not decreased as the media often likes to portray.
A question I've received a few times over the past few weeks is how this changes things for me in my business. My answer is simple, business as usual. I am a full service Realtor who offers knowledge, experience, and service guided by a code of ethics. There will always be consumers who recognize the value of a full service Realtor and for those folks I am here. My services and my commissions have always been negotiable, but ultimately noone works for free and I believe that the value I add to the purchasing or selling process is worth the commissions I charge.
I've had a few experiences with "mere listings" or FSBO (for sale by owner) properties lately. One "mere listing" property I showed resulted in the seller later asking me for advice because the agent they had their property listed with is an agent in a city 6 hrs away and had not been through the property. Given that my code of ethics dictates that I cannot interfere with an existing contract I can't be giving advice just because they've chosen an agent who's not willing to offer that service. Sorry folks!
I had a lovely dealing with a great FSBO (for sale by owner) seller recently when my clients purchased her property. She told me when people congratulate her on selling "on her own" she's been telling people that the only reason things went so smoothly is because the buyers were working with a great agent (me!). She also had an "in" with a great real estate lawyer which certainly helped her end of things. Even though she sold privately she recognized the value of having a Realtor involved, she paid a commission, and she armed herself with a good lawyer to cover her end of things.
There are many out there who feel they can adequatly do what I do without the experience or knowledge. And for some it may work....for others not so much. One local example I've recently heard was of buyers purchasing a property through sellers who later found out that the sellers were actually the tenants who had no legal rights to sell the property but had decided to put up a "by the owner" sign, collected a nice hefty deposit of $10,000 from the buyers who thought they were getting a "great deal" because they weren't working with a Realtor and then those tenants disappeared. Those buyers are now out $10,000. Ouch.
So, that's my 2 1/2 cents on things. Please don't hesitate to call me or email me if you have any questions. Or send a comment if you wish to continue some dialogue and start some discussions on this topic.
In close, here is the link for the October stats for the KW real estate market and a link to a great site giving more information about the value of working with a Realtor. Take a peek! Thanks for reading!
http://www.kwreb.on.ca/k-w-average-home-price-jumps-14-3-percent-in-october/
http://www.howrealtorshelp.ca/
