RE/MAX Hallmark Blog

Who Cares what CREA did ?

So CREA has inked the deal to allow competition into our marketplace, or so all the headlines read. This weekend, at the National Assembly, CREA voted 97% to approve the deal worked out with the Federal Competition Bureau. No surprises there, except the "agreement" is for 10 years. I wonder why the need to have a time period on the agreement ? 

In any case, I am sure all the headlines will run concerning the new opportunities for sellers to get lower and lower fees. What the headlines won't say and what the article won't write about is the "price" paid with lower fees. Less Service and Less Skilled realtors will be jumping all up to put listings on MLS with no representation or very little representation. Pity the seller coming up against a professional realtor, negotiating on behalf of their buyer - directly to a non represented seller. Buyer representatives are under a signed obligation to do their very best for their clients, the buyers. Sellers of less service and less skilled realtors will have to fend for themselves. You do get what you pay for.

I like how our industry is evolving, and I am sure realtors offering value and service for their clients will continue to shine. As for the news today, who cares ? Except to say many many opportunities are out there for top professionals.

Reco and Me

As Broker of Record of RE/MAX Hallmark Realty., I have a responsibility to account for the actions of my realtors. Everything they do with and for the public rests on my shoulders. I take the work seriously. Because we are a large company which is constantly interacting with the public, we are often called to task and must explain ourselves. It is all part of dealing with the public. It's serious work.

RECO takes the work they do very seriously as well. The Counsel looks out for the interests of the consumer and governs the actions of realtors. When realtors are asked to "explain" their actions, the process isn't taken lightly. My "job" is to help my realtors through this process - usually all things work out, but it is a trying situation for most realtors. They hate their reputations being challenged and have never done "wrong" for the consumer or other realtors intentionally. 

In my 31 years of being a realtor, I have never been personally challenged for my actions by RECO - until last week. I received a strong "charge" from RECO, outlining in great detail all the actions RECO believes I committed which are contrary to the code. When I read the charges, my blood boiled. Not only am I innocent of the charges, but I felt insulted by the letter. Now I know how my realtors feel when they are charged by RECO.

My first reaction was to brush it off. believing at the RECO hearing, the panel will hear my explanation of the events and dismiss the charges. But on second thought, I don't trust what will happen at the hearing, so I am hiring a lawyer to represent me. 

The charges? RECO is accusing me of advising one of my realtors to take a course of action during an offer presentation which was contrary to the code. The fact - the realtor called me after the offer presentation to ask my advise on what was already done. Apparently RECO thinks I should of been able to know what happened before it happened. The realtor in this incident acted completely appropriately, protecting the interests of all parties involved.

I don't think RECO is interested in the facts in this matter, but has already formed their own conclusion and is intent on making a statement. Stayed tuned as this could get interesting.

Is it time to drop Realtor.ca?

Is Realtor.ca important for Realtors? Does the site enhance the work we do as Realtors? 

I think we need to begin the discussion about the value of Realtor.ca for our profession. Is the site valuable to Realtors? Does the site help Realtors provide service for their clients? Do we really need to continue to support  Realtor.ca with the advent of IDX at the Board level and the evolution of dynamic personal Realtor sites?

Is it time for our Boards and CREA to discontinue Realtor.ca?

What do you think?

 

CREA and the Competition Tribunal by Michael Polzler

Confusion reigned across the country this week as the Canadian Real Estate Association (CREA) announced anticipated amendments to the Multiple Listing Service (MLS) in response to issues raised by the Competition Bureau.

My subsequent comments in the Globe and Mail didn't help. They were, unfortunately, taken out of context and may have added fuel to the fire. Let me assure you that I did not say that we should throw in the towel. However I've also been in the business too long not to recognize the fact that our industry is changing.

CREA was a little less than crystal clear in their communications, but in a nutshell, under the new rules, clients can now choose a realtor for the sole purpose of listing their property on MLS for a flat fee, but few will.

There is no doubt in my mind that the playing field is going to change in the coming years. I do believe, however, that the impact on our industry will be minimal and I speak from experience based on our US operations. These rules have been in place south of the border for several years and little has changed. In fact, the value of a great realtor has never been more important.

Consumers are entitled to options and yes, there will be those that choose to go it alone. But most people don't want to sell their own cars, let alone their own homes. The fundamentals of this business are etched in stone and will remain the same, no matter what happens between CREA and the Competition Bureau. Those buyers and sellers who are making the largest financial investment of a lifetime will still require the knowledge, expertise and negotiation skills that a full-time, experienced real estate professional brings to the table - and most, if not all, are willing to pay for it.

There is more to what we do as realtors than place properties for sale on the MLS. We should not define ourselves by MLS alone. MLS is just one of the many tools that we use during the course of a transaction. The vast majority of homes in this country are currently sold through a full-service realtor and that trend will continue in the future. Let's not lose focus. We're helping thousands of Canadians to buy and sell real estate annually. Our role has not and will not be diminished.

I have no doubt that we will continue to thrive, as we always have. But more important than ever before will be the value proposition you, as a realtor, brings to a transaction. Knowledge, experience and professionalism are the foundation on which our industry has been built. At the end of the day, it's what the public expects of a professional realtor.

Don't underestimate your importance in the home-buying and selling experience. The fact is, consumers need us. I welcome your thoughts at mpolzler@remax-oa.com

Sincerely,

Michael Polzler

Executive Vice President and Regional Director

RE/MAX Ontario-Atlantic Canada Inc.

We are a professional association not a Flea Market

On Monday, I did three different press events in relation to the Competition Tribunal and the vote by members of our Canadian Real Estate Association at the Annual General Meeting held in Ottawa. In spite of the strong interest by the media and the general public, there was so much misinformation out there. Throughout the day, many were not clear, and still aren't on the decision made by CREA members. Did the assembly vote yes or no to reform our bylaws in an effort to cozy up to the Competition people?

In my view, CREA did a poor job of putting forth our industry's position and the results of the vote taken. What kind of strong leadership was shown by the actions of the industry leaders? If you by chance viewed the press conference held by our association after the vote, you would have been appalled as I was. Our industry, represented by the incoming President looked weak and inadequate to say the least. It was a joke. Our President presented the results of the vote, but when asked to clarify the position of CREA - refused by saying it was too complicated for the public. I think he was in over his head and lacked clear leadership just when our industry needed it the most.

This is what happened on Monday at the CREA Annual General Meeting and what it all means.

CREA voted to change their bylaws to permit flat fee type realtor's access to MLS with their business model of not providing agency to sellers. Realtors will be permitted to list a property on MLS and have their "clients" sign off on any agency representation from their realtors. WIth the new rules, clients can now choose a realtor for the sole purpose of listing their property on MLS - period. What wasn't voted in was that clients can list their properties privately on our MLS without the services of a realtor. The discussion wasn't about lowering or raising realtor fees as discussed at length throughout the media, it was only about allowing a level playing field for all players in our industry.

Our industry has had brokerage models which essentially offer lower fees to the public fo rthe sole purpose of putting a property on MLS, but now these brokerage models can have their "clients" and I use that word lightly - sign off on having their realtor stand for them during negotiations for their marketing, for showing appointments, and for guidance if they choose. Why did CREA decide to allow this to unfold the way it did?

What wasn't CREA more progressive in their thinking - how could our CREA leadership believe that by not allowing all models into our industry they were being of service to the public and it's members? The vote on Monday should have been a non issue, and acted upon when our American realtor friends dealt with it years ago.Interestingly, the Competition Tribunal responded to the vote taken by CREA by quickly stating CREA hadn't gone far enough and will be pressing on with their challenge to our industry. Maybe the Feds want individual sellers to have the right to list their properties privately on our MLS service without the use of any realtor? If that happens, watch for a big shake up of our industry and the way we put forth information for the public.

We are a professional association, not a flea market.

Personally, I believe this "discussion" between the Competition Tribunal and CREA will sort itself out without any further adjustments from our industry.

When are CREA and our Toronto Real Estate Board going to become industry leaders on this subject? When will we have someone or some body stand up for our industry?

RE/MAX Hallmark will continue to position itself in the marketplace as a full service brokerage, (without exception) standing with our clients throughout the entire process of buying or selling real estate. We strongly believe clients are best served when they are guided by a professional realtor through what for many will be the biggest financial decision of their lives.

 

Competition Bureau and Organized Real Estate in Canada

For some realtors, the latest article in our local and national  papers concerning the challenge of the Federal Competition Bureau to the way our industry - read Canadian Real Estate Association - conducts itself is disconcerting. The Feds are intent, if we are to believe what is reported, in changing the way we as realtors and boards conduct themselves. Essentially, the Feds want consumers to have more options when it comes to selling their homes. Apparently, right now our local boards do not allow listings without representation. The Feds want consumers to have the choice of negotiating their own deals, while using the services of the MLS, for a reduced fee of course.

As reported, the higher ups at CREA and the Competition Bureau have been meeting to try to come to some amiable conclusion for all, but none was to be found. In the last week or so, the Competition Bureau has gone pubic on their intentions of making, in their view - organized real estate more competitive.

So what could all of this mean for consumers and for realtors?

If the Competition Bureau gets their way, consumers will be able to use a realtor for the sole purpose of posting their listings on various boards throughout Canada, for a fee. Consumers willl be able to choose not to use the representation of a realtor for the process of selling their property. As I understand it, home owners will confirm all showings and negotiate directly with buyer representatives on any offers on their property. The listing agent could simply upload all the info onto board websites, and let the consumer take it from there. Basically, consumers would pay a fee to a realtor for allowing access to boards. For some consumers, this willl be a blessing, for others a terrible and costly curse.

Realtors will be challenged by the apparent change to our industry. We could now be faced with dealing with models which provide the basic services for what might be a relatively small fee. Some realtors will not be able to cope.

Realtors who believe the work we do is largely based on the source or protection of information and historical data could be in for a shock in the years to come. If your real estate model depends upon safeguarding consumers from information we know, look out for a big change. That horse left the barn many many years ago. Our realtor friends south of the border have been living with a reality similar to what has been put forth by the Competition Bureau for several years now, and life has gone on. Sure there are models out there offering lower cost service, or fees based on minimum work, BUT organized real estate is flourishing in the states.

This is how it works. If a realtor doesn't provide value added service, the consumer will ultimately make a decision not to use their services and shop for a model which is better suited to their needs. It is a fact of life that some home sellers will be able to negotiate the sale of their own home, but most need experts to help them through the complicated and financially important process.

Being a realtor is not just about listing a property on MLS. Detailed work is necessary to ensure consumers are looked after. The process can be difficult, taxing, complicated and emotionally draining for many.

Realtors who  add value added services for their clients will continue to grow their businesses. Realtor who look at our industry as information based will have a problem.

Confusion Still

This year we have had several "changes" made in our industry concerning forms and procedures. Every year our Board or associations refine what we have to do and how it's done. On rare occasion, different levels of government step into our industry as well. There seems to still be some confusion over a couple of practices now in place.

Several months ago, our Toronto Real Estate Board came out with a new policy procedure concerning listings. In plain language the new bylaw enacted says, if a property is listed on MLS, it must immediately be available for showings. If in your marketing plan, you (listing agent) wish to set a date in the future for offer presentations, that's fine, you just can't delay any showings once the property is listed.

There is still a lot of confusion over Fintrac. Fintrac legislation forces us to collect and store information on our clients. We don't need to give that info to other brokers. Some realty firms are still asking for information on our clients in their offers. We only need to look after who we are under contract with. What we do not have to do is provide Fintrac Information on clients for leases, just the buying and selling of properties.

Perfect Ending to a Busy Day

Today was my first day back in Toronto and back at work so to speak from our company trip in Denver. More on the trip later. First I wanted to write about today.

Other than having an amazing day meeting with Realtors in back to back coaching sessions, I had the privilege of attending an event at the Board called Civic Night.

Civic Night is a yearly event which acknowledges Realtors from our Board for their civic duties. I love this event since it really goes to the heart of what matters in our Realtor community - being engaged in the communities in which we serve. Sure our role is all about providing a real estate service, but there is so much more than that. Imagine if we didn't have people amongst us who cared about others. Tonight was the night to acknowledge those people.

Two incredible Realtors from RE/MAX Hallmark were acknowledged. Cheryl Bower has spent years and years doing countless community projects, all in support of others. Her work for CMN, Breakfast for Kids Program, and Breast Cancer Research are just a few of the many concerns Cheryl has been involved in. Cheryl has recently taken on a new cause, helping out kids with HIV and AIDS through the Teresa Group. As well as being a community activist, Cheryl is an outstanding Realtor and tonight she received the Civic Award for 2008 from the Toronto Real Estate Board.

Along with Cheryl Bower, Carolyn Griffis was acknowledged by our Board. The program which was initiated by Carolyn, Breakfast for Kids Program was formally adopted by our Board as their cause. A cheque for $50,000.00 was presented to Carolyn on behalf of the Board for the Foundation. Our President, Maureen O'Neill spoke of how important it is for all of us to be engaged in this important cause of feeding our kids.

Two indredible Realtors. Perfect ending to a busy day.

If it's Listed, showings must be allowed

Just recently the Board of Directors at the Toronto Real Estate Board passed a new rule which changes the way we are permitted to display or promote a listing through Toronto MLS.  The new regulation is titled, R-345.

In a nutshell this is what it is all about. From now on, once a property is listed through TorontoMLS.net it must be available for showings immediately. If it isn't available, the listing must be suspended. The new rule goes on to say that the property must be immediately available as well for registration of offers.

What it doesn't say is that a seller has to entertain an offer immediately. Sellers can still "hold back" until a certain date to look at offers. Having the opportunity of registering an Offer immediately is available and frankly always has been available. What this new rule does is restrict listing agents and sellers from putting a property on the market with no intention of allowing showings. Some listing agents have been known to list a property and not allow a showing for 30 days.

Some Realtors believe, (based on my phone calls) that a listing is not permitted to show an offer date on the listing data. Not true. Offer dates are still allowed, as long as showings can happen immediately and registration of offers are permitted.

Term Ends at Toronto Real Estate Board

Nearly four years ago I began my work on the  Board at the Toronto Real Estate Board. During this time I have been actively involved with many different committee and task forces, all appointed by the President of the day and all supported by incredible staff.

I have been Chair of Finance, Communications, and Professional Standards. I have championed many causes and innovative changes which have influenced the way our members conduct their business. I have been keenly interested throughout my time of service to learn as much as I could and to contribute as much as I could. I have enjoyed most of the time, and believe I have made a difference in some small way. As any Board of Director will tell you, the needs of our membership come first, and always have. Every vote cast and decision made, is made with that in mind.

Sometimes I have been frustrated. Not with the people, but with the process. I like to work on gathering information, evaluation, and then making a decision. Usually quickly. Any Board has to go through a slow, tedious process of evaluation, and consideration before any decision is made. The learning for me has been to slow down my process, which is a good thing.

I firmly believe our Board needs new blood to revitalize it. Many of the good people at the Board level have been there for years and years. They are very well intended, but really in my view are caught up in the process of being a Board member. It is stifling at times.

I have decided at the end of my term, this June, not to run for re-election for the Board of Directors at the Toronto Real Estate Board. Our Board is in dire need of new thinking and fresh Board leaders. My hope is that many new members will take up the challenge and come forward to sit on the Board.

It is an enriching experience.