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.
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