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Message from Don Lawby
The Canadian Real Estate Association and the Competition Tribunal
At CENTURY 21 Canada, acting in the best interest of home buyers and sellers is a pillar of our business. We believe that the MLS system protects the standards and integrity of the real estate industry and the safety of Canadian consumers, for whom buying or selling a home is likely the most significant transaction they will make in their lifetimes.
The real estate market in Canada is and will continue to be highly competitive. Canadians selling their homes today can choose from a variety of business models, listing options and compensation/commission structures. CENTURY 21 Canada advocates that consumers should remain protected by real estate industry standards of conduct and ethics, which is at the cornerstone of what the current MLS system offers.
I support the rules amendments accepted by CREA members on Monday, March 22, and believe they satisfy concerns expressed by the Competition Bureau while preserving the integrity of our industry. False or misleading information has found its way onto many well-intended publicly accessible information and advertising sites, with little recourse for consumers.
CENTURY 21 Canada Key Messages
1. Canadian consumers have always been free to choose from different service and advertising options when selling their homes.
CENTURY 21 sales representatives pride themselves on providing full service to clients through the selling process. CENTURY 21 sales representatives are not opposed to posting listing information on MLS on behalf of clients, for a fee, but believe that most clients will continue to want a more comprehensive range of services to assist them in selling their homes.
2. The MLS System is trusted by CENTURY 21 sales representatives as a source for accurate and reliable listing information for clients.
Our biggest concern is the preservation of the integrity of this System. MLS was created for use by Realtors, who are bound by ethical and legal standards set forth by their licensing bodies. The MLS System’s integrity is maintained because sales professionals who upload misleading or false information to the System can lose their livelihoods or, at minimum, their reputations. It is impossible to enforce these standards on non-licensed sales professionals and the public, to protect what is likely the largest financial transaction a person will make in a lifetime.
3. CENTURY 21 Canada supports CREA’s defence that MLS Rules in no way limit consumers’ options or bind them to full-service fee models.
There are many commission and compensation structures in the industry, but CREA has never dictated what Realtors can charge their clients, or for what services. CENTURY 21 sales representatives are free, like all Realtors, to negotiate fees and service options with individual clients. It is also a myth that discount real estate service providers are prohibited access to the MLS System.
Questions and Answers for Consumers
1. What is MLS and why am I not able to access it?
The Multiple Listing Service (MLS) is an online business tool developed for Realtors, including CENTURY 21 sales representatives, to upload and share listing information on properties and collect market data. There are multitudes of MLS sites across the country, each operated by different Real Estate Boards. Generally, a local Realtor includes the MLS as part of his or her overall service contract. The Canadian Real Estate Association created an advertising website, www.realtor.ca, so that consumers and real estate sales representatives could view all MLS listings in one place and contact agents associated with those listings.
CENTURY 21 Canada also has agreements with Real Estate Boards across Canada to collect MLS data. That data enables us to provide detailed and accurate property information on all our sales representatives’ sites at Century21.ca.
2. With the new CREA rules, can I now post my home on the MLS system without going through a Realtor?
No. The MLS was developed as a member-to-member platform for licensed Realtors. Like all Realtors, CENTURY 21 sales representatives are bound by ethical and legal standards of conduct, which applies to listing information published on the MLS. The MLS has become such a strong brand because of the integrity of its information. While CENTURY 21 Canada isn’t opposed to posting listings to the MLS for a fee, allowing direct public access to the MLS risks undermining industry standards, as well as the security of potential home buyers – virtually every public advertising site runs the risk of exposing its customers to scam artists and unscrupulous sellers.
3. So, when will I be able to pay you just to list my home on the MLS?
You have always had that choice. All real estate service fees are negotiable between Realtors and their clients. As well, a consumer has the option to list their property for sale on a range of websites that don’t require the assistance of a licensed real estate agent. CENTURY 21 sales representatives aren’t going to prevent clients from choosing this option; however, we would discourage individual home owners from publishing their properties online
without a clear plan as to how they are going to manage the sales process, qualify prospective buyers and complete the required documentation for closure.
4. Why do Realtors charge so much commission for providing services that I could just as easily do myself?
Realtors receive extensive training to be licensed to operate in Canada and work hard for the commissions they earn. The vast majority of Realtors are not getting rich on commission fees. According to the National Real Estate Association 2009 Profile of Home Buyers and Sellers, 69% of homeowners who chose to go the ‘for sale by owner’ route indicated that they did so to avoid paying commission fees; and 74% of those reported having difficulty with the selling process. Getting the price right, preparing a home for sale, understanding and completing paperwork and selling within the length of time planned were common difficulties expressed by survey respondents. Buyers are aware of the value of commission fees, and will often offer less than market value on ‘for sale by owner’ listings. There is value in hiring an agent with superior sales skills and knowledge of your market.
5. Why is the Canadian Real Estate Association trying to stop consumers from being able to choose the services they want to sell their homes?
This is a myth that has gained momentum because of the Competition Bureau issue. The MLS was created by CREA for its members to post their listings and share data. Like with any competitive business landscape, there is an array of online advertising choices other than the MLS for independent home sellers, including social media sites, Craigslist and Kijiji. As well, Canadians have always had the option to compare and negotiate real estate service fees offered by different business models.
6. When do the new rules come in? Should I wait until then to list my property for sale?
The new MLS rules voted on by members of the Canadian Real Estate Association on March 22 are now in the process of being ratified by provincially-based real estate boards. The process could take a few months to complete, as some Boards will have to call general meetings to revise their rules. It may take up to a year for a decision to be made by the Competition Tribunal of Canada, and that could be followed by an appeals process. With interest rates anticipated to rise by mid-2010, coupled with the introduction of the HST in BC and Ontario on July 1st, waiting to sell your home – with or without a Realtors – might net you a lower selling price or increase the time it takes to sell your home. In addition, the rules and regulations that are in the process of being amended reflect service options that are already available today.
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Contact the Jeffrey Team for more information - 416-388-1960
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Our forecast calls for sunny with blue skies
Stephen Dupuis, Toronto Sun
Last week, I let readers in on the highlights of the inaugural address of the newly elected president of the Canadian Home Builders’ Association, Victor Fiume, of Durham Custom Homes.
BILD wishes Fiume well as he takes over the reins from Gary Friend, a Vancouver builder who led his industry at the national level with great distinction throughout one of the most challenging years ever faced by a CHBA president given the global economic crisis that dominated Friend’s tenure.
Fiume’s speech was given in Victoria, B.C., where spring was about a month ahead of schedule with the trees blossoming, the flowers pushing up and the grass green and growing.
As if picking up on the optimism that always comes with spring, the economic presentations we heard were quite encouraging. As Dr. Peter Andersen, consulting economist to the CHBA told builders, “fears of a double-dip recession have been put on the back-burner and it looks like we’re in for a sustainable recovery.”
Andersen declared that the recession ended in August, 2009, described 2010 as a “transition year” and said the true recovery would kick-in next year with 4-5% growth.
Unfortunately that economic growth rate will bring with it rising rates but that’s next year — for the balance of this year, Andersen sees rates as being on hold. Holding at the lowest levels in 50 years is a very good thing.
Further to the rosy forecast, Andersen noted that part-time employment is up adding that employers typically bring on part-timers as a prelude to hiring full-time.
Renovation bug
Commenting on house prices, Andersen stated that he sees no sign of runaway prices and wondered out loud why all the fuss. “I don’t buy the bubble theory,” he stated. “Prices are just getting back to where they were before the economic crisis,” he added. Andersen also offered a very interesting perspective on the renovation market.
Where the conventional wisdom says that market may go down due to all the activity brought forward by the Home Renovation Tax Credit, he thinks that activity just primed the pump and now that homeowners have caught the renovation bug, they will just move onto the next project. Sounds plausible to me.
Shout-outs
The good news is that Ontario builders were part of a British Columbia/Ontario sweep of the recent Canadian Home Builders’ Association Sales & Marketing (SAM) awards.
The bad news is that of the eight awards taken by Ontario builders, only two winners hailed from the GTA, but they are both deserving of a shout-out, so hats off to Empire Communities who got the award for Best Brochure/Kit for Fly Condos, besting builders from Victoria, Calgary, Ottawa and Hamilton.
A big tip of the hat to Bachly Construction of Bolton, Ont. who captured the award for Best Single Detached Home (over 4,000 sq. ft.) against heavy competition from Vancouver, Kamloops and Delta, B.C., as well as a place called Quispamiss, N.B.
The Bachly house is well worth checking out at www.bachly.com (click on featured home). Last but not least, BILD congratulates former local president Joe Valela of Valemont Homes on his election to the CHBA Executive Board, and Mike Cochren of Oakville-based Cochren Homes (and a RenoMark contractor) on his appointment to that board.
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Contact the Jeffrey Team for more information - 416-388-1960
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Property tax hike shrinks to 2.9%
Robyn Doolittle – Yourhome.ca
For months, city hall had been singing the same tune: We are broke. Homeowners would be asked to carry a considerable chunk of the burden. A 4 per cent property tax hike was necessary to balance the books.
What this would mean to the average homeowner: a $93 increase.
But despite the tax hike, Toronto residents could expect fewer services. City officials called for 5 per cent budget cuts across the board. Though most departments failed to hit the target, considerable cuts were made to virtually every area.
But at a news conference Wednesday morning, Mayor David Miller made the surprise announcement that the city’s financial picture was not as bleak as projected.
An extra $100 million in surplus had been found, mostly through property tax figures that arrived late and city investments that performed more strongly than expected.
Now some have quietly questioned just exactly how much in the dark some city personnel really were.
Was the sob story just a tool to get difficult budget cuts made?
The library board decided some branches might need to close Sundays. The Toronto Transit Commission found about $10 million through job reorganization and energy savings. The police board struggled to cut $10 million by deferring some spending and delayed hiring.
Alok Mukherjee, chair of the police board, said it wasn’t for him to speculate about the timing.
“I think the budget process is very much an evolving process and numbers are crunched on a routine basis, and it isn’t until all the numbers are in and there’s an ability to make some final estimates that one has a clear picture,” he said.
At the end of the day, Mukherjee says, he promised to help get control of a rapidly ballooning police budget, which will probably hit $1 billion by 2011.
Michael Church, chair of the library board, had a similar view.
“We had a meeting last week with the budget committee and we came in with a very tight budget. And we were asked to come in even tighter, which likely entailed Sunday closures,” he said. “And I’m just hoping that’s off the table now.”
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Contact the Jeffrey Team for more information - 416-388-1960
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