FYI Heard an update on CBC radio today that some may be interested in. 300 CREA members met in Ottawa today to consider what action to take. It was said they voted to establish a flat rate for listing a property on MLS in an effort to placate the Competition folks. Details were few. No costs. Apparently the competiton board was not satisfied and is pressing on to arbitration.
CREA and Competition Board
- Thread starter RCrein
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There are already 2 detailed threads on this topic.<br />Thank you for the update but the full change is that CREA Is allowing agents to charge a flat fee and pass along the sellers information. The flat fee part has been attempted for many years and failedf.<br />QUOTE (RCrein @ Mar 22 2010, 10:42 PM) FYI Heard an update on CBC radio today that some may be interested in. 300 CREA members met in Ottawa today to consider what action to take. It was said they voted to establish a flat rate for listing a property on MLS in an effort to placate the Competition folks. Details were few. No costs. Apparently the competiton board was not satisfied and is pressing on to arbitration.
QUOTE (luckyluciano @ Mar 23 2010, 07:45 AM) There are already 2 detailed threads on this topic.<br />Thank you for the update but the full change is that CREA Is allowing agents to charge a flat fee and pass along the sellers information. The flat fee part has been attempted for many years and failedf.<br />
Sorry Lucky. I didn`t mean to upset you by posting the update. The long past discussions were the reason that I thought members might be interested in an update of current related activity. As for having tried and failed, I do believe a few agents have tried to experiment with different fee structures, specifically breaking out the listing service, but were resisted by CREA. This is the basis for the competition board`s interest; that other business models were supressed. Given that CREA has now offered to provide a separate listing fee, it seems appropriate to let others know who may be interested in using it. Hope this situation works out to be better for everyone; particularly investors
Sorry Lucky. I didn`t mean to upset you by posting the update. The long past discussions were the reason that I thought members might be interested in an update of current related activity. As for having tried and failed, I do believe a few agents have tried to experiment with different fee structures, specifically breaking out the listing service, but were resisted by CREA. This is the basis for the competition board`s interest; that other business models were supressed. Given that CREA has now offered to provide a separate listing fee, it seems appropriate to let others know who may be interested in using it. Hope this situation works out to be better for everyone; particularly investors
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QUOTE (RCrein @ Mar 23 2010, 10:45 AM) Sorry Lucky. I didn`t mean to upset you by posting the update. The long past discussions were the reason that I thought members might be interested in an update of current related activity. As for having tried and failed, I do believe a few agents have tried to experiment with different fee structures, specifically breaking out the listing service, but were resisted by CREA. This is the basis for the competition board`s interest; that other business models were supressed. Given that CREA has now offered to provide a separate listing fee, it seems appropriate to let others know who may be interested in using it. Hope this situation works out to be better for everyone; particularly investors
Slightly off topic, but I found early in my career that cutting commission or charging a flat rate wasn`t desirable to the average person. I think people hear a Realtor say that and they assume the Realtor is not good at his job (or else why would he offer). I would gladly list at a flat rate, esp. if the individual is being reasonable with their price.
So its not that we can`t list at a flat fee, we as Realtors just don`t.
Slightly off topic, but I found early in my career that cutting commission or charging a flat rate wasn`t desirable to the average person. I think people hear a Realtor say that and they assume the Realtor is not good at his job (or else why would he offer). I would gladly list at a flat rate, esp. if the individual is being reasonable with their price.
So its not that we can`t list at a flat fee, we as Realtors just don`t.
This is kind of the point. Does it really take more work to sell a house at $450K vs $400? Then why would they charge more. They should sell for a flat rate depending on the house price (ie. $2000 for prices under $200K, $3000 for house between $200K-500K etc). By allowing people to place an ad on mls.ca for a fixed fee may help out alot but still far from where I feel we should be.
QUOTE (DaveRhydderch @ Mar 23 2010, 09:57 AM) Slightly off topic, but I found early in my career that cutting commission or charging a flat rate wasn`t desirable to the average person. I think people hear a Realtor say that and they assume the Realtor is not good at his job (or else why would he offer). I would gladly list at a flat rate, esp. if the individual is being reasonable with their price.
So its not that we can`t list at a flat fee, we as Realtors just don`t.
QUOTE (DaveRhydderch @ Mar 23 2010, 09:57 AM) Slightly off topic, but I found early in my career that cutting commission or charging a flat rate wasn`t desirable to the average person. I think people hear a Realtor say that and they assume the Realtor is not good at his job (or else why would he offer). I would gladly list at a flat rate, esp. if the individual is being reasonable with their price.
So its not that we can`t list at a flat fee, we as Realtors just don`t.
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Flat fee commission structures are nothing new and have existed for years. Commission agreements are completely negotiable and sellers can do a deal for whatever they like. They can list for $0.01 if they find a broker willing to list for that. They can also elect to choose `customer` status and avoid any agency representation if they like. Buyer`s do this all the time. Much of what the comp. bureau is fighting for has been available to the consumer for years just like they`ve had FSBO websites available to them. Rest assured when the case goes to court this will be made quite evident.
The real issue is that the competition board is fighting to open up the MLS completely and allow open listing access to realtor.ca and the seller`s name to be posted on realtor.ca if buyer`s would prefer to deal with them directly rather than use agents.
CREA has voted to amend their rules to meet some of the competition board`s complaints (including some level of seller`s information being made available) prior to fighting it out in front of the competition tribunal. CREA is confident that with the new changes it will be very difficult for the competition bureau to win their case.
The competition bureau is fighting this fight to justify their own existence - they have been under pressure for years to `do something about something` which is why they are going after CREA. They`ve got the blinders on and want to fight no matter what to raise their profile and save their jobs by spending public funds. This latest announcement is just CREA strategizing to have the best possible chance to win once the case goes to court.
The real issue is that the competition board is fighting to open up the MLS completely and allow open listing access to realtor.ca and the seller`s name to be posted on realtor.ca if buyer`s would prefer to deal with them directly rather than use agents.
CREA has voted to amend their rules to meet some of the competition board`s complaints (including some level of seller`s information being made available) prior to fighting it out in front of the competition tribunal. CREA is confident that with the new changes it will be very difficult for the competition bureau to win their case.
The competition bureau is fighting this fight to justify their own existence - they have been under pressure for years to `do something about something` which is why they are going after CREA. They`ve got the blinders on and want to fight no matter what to raise their profile and save their jobs by spending public funds. This latest announcement is just CREA strategizing to have the best possible chance to win once the case goes to court.
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QUOTE (aiden1983 @ Mar 23 2010, 10:16 AM) This is kind of the point. Does it really take more work to sell a house at $450K vs $400? Then why would they charge more. They should sell for a flat rate depending on the house price (ie. $2000 for prices under $200K, $3000 for house between $200K-500K etc). By allowing people to place an ad on mls.ca for a fixed fee may help out alot but still far from where I feel we should be.
What you are missing is the buyer`s side of the table, which is a completely different job. Buyer`s don`t pop out of nowhere and decide to buy your listing. They have 100`s of questions and need to be brought along before they`re ready to make the biggest purchase of their lives.
Some buyers need to look at 30 houses before making a decision. Buyers that spend more are generally higher maintenance and tougher to work. A seller may not need to do more work to list a house for sale (and 1000`s of agents charge flat listing fees including myself) but no buyer`s agent is going to take $500 to sell a buyer your house for you. This is a huge misconception by the public. No one complains about paying their buyer agent $0 to get them their house. The existing system makes it easier for a buyer to use a pro and ultimately close a transaction.
buy-and-hold investors should be on CREA`s side in all of this... considering all the work agents do for investors while the investors never pay a dime... They are getting a crazy deal. If it goes `a la carte` you`ll end up paying for my time like you pay for a lawyers time... with retainer fees and disbursement fees and "on call charges" and everything. Do you really want that?
What you are missing is the buyer`s side of the table, which is a completely different job. Buyer`s don`t pop out of nowhere and decide to buy your listing. They have 100`s of questions and need to be brought along before they`re ready to make the biggest purchase of their lives.
Some buyers need to look at 30 houses before making a decision. Buyers that spend more are generally higher maintenance and tougher to work. A seller may not need to do more work to list a house for sale (and 1000`s of agents charge flat listing fees including myself) but no buyer`s agent is going to take $500 to sell a buyer your house for you. This is a huge misconception by the public. No one complains about paying their buyer agent $0 to get them their house. The existing system makes it easier for a buyer to use a pro and ultimately close a transaction.
buy-and-hold investors should be on CREA`s side in all of this... considering all the work agents do for investors while the investors never pay a dime... They are getting a crazy deal. If it goes `a la carte` you`ll end up paying for my time like you pay for a lawyers time... with retainer fees and disbursement fees and "on call charges" and everything. Do you really want that?
I would love to be able to see all of the information that the Realtors have access too, as I believe I would be more proactive in research then any Realtor who would help me find a house. Realtors have access to DOM, past sales prices, lot description, and a ton of other info which I would love to have access to without having to ask a Realtor. I never really considered talking to the owner of the house prior to this but now I think about it, I think I would really like too. I think this is about time that things change so I am ecstatic.
Also I think that it will rid this industry of a lot of terrible Realtors. I hope that the good Realtors will be able to still make a good living.
QUOTE (RedlineBrett @ Mar 23 2010, 10:26 AM) Flat fee commission structures are nothing new and have existed for years. Commission agreements are completely negotiable and sellers can do a deal for whatever they like. They can list for $0.01 if they find a broker willing to list for that. They can also elect to choose `customer` status and avoid any agency representation if they like. Buyer`s do this all the time. Much of what the comp. bureau is fighting for has been available to the consumer for years just like they`ve had FSBO websites available to them. Rest assured when the case goes to court this will be made quite evident.
The real issue is that the competition board is fighting to open up the MLS completely and allow open listing access to realtor.ca and the seller`s name to be posted on realtor.ca if buyer`s would prefer to deal with them directly rather than use agents.
CREA has voted to amend their rules to meet some of the competition board`s complaints (including some level of seller`s information being made available) prior to fighting it out in front of the competition tribunal. CREA is confident that with the new changes it will be very difficult for the competition bureau to win their case.
The competition bureau is fighting this fight to justify their own existence - they have been under pressure for years to `do something about something` which is why they are going after CREA. They`ve got the blinders on and want to fight no matter what to raise their profile and save their jobs by spending public funds. This latest announcement is just CREA strategizing to have the best possible chance to win once the case goes to court.
Also I think that it will rid this industry of a lot of terrible Realtors. I hope that the good Realtors will be able to still make a good living.
QUOTE (RedlineBrett @ Mar 23 2010, 10:26 AM) Flat fee commission structures are nothing new and have existed for years. Commission agreements are completely negotiable and sellers can do a deal for whatever they like. They can list for $0.01 if they find a broker willing to list for that. They can also elect to choose `customer` status and avoid any agency representation if they like. Buyer`s do this all the time. Much of what the comp. bureau is fighting for has been available to the consumer for years just like they`ve had FSBO websites available to them. Rest assured when the case goes to court this will be made quite evident.
The real issue is that the competition board is fighting to open up the MLS completely and allow open listing access to realtor.ca and the seller`s name to be posted on realtor.ca if buyer`s would prefer to deal with them directly rather than use agents.
CREA has voted to amend their rules to meet some of the competition board`s complaints (including some level of seller`s information being made available) prior to fighting it out in front of the competition tribunal. CREA is confident that with the new changes it will be very difficult for the competition bureau to win their case.
The competition bureau is fighting this fight to justify their own existence - they have been under pressure for years to `do something about something` which is why they are going after CREA. They`ve got the blinders on and want to fight no matter what to raise their profile and save their jobs by spending public funds. This latest announcement is just CREA strategizing to have the best possible chance to win once the case goes to court.
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QUOTE (aiden1983 @ Mar 23 2010, 10:49 AM) I would love to be able to see all of the information that the Realtors have access too, as I believe I would be more proactive in research then any Realtor who would help me find a house. Realtors have access to DOM, past sales prices, lot description, and a ton of other info which I would love to have access to without having to ask a Realtor.
Well this isn`t what`s on the table... you`re not getting access to that information as it has been compiled over decades by CREA. Why should you be able to access that database?
The data is proprietary. CREA publishes the general information but specific sales data can only be accessed by a member that is paying for this data to be stored, filed and made accessible IE - a realtor!
All that is being sought by the competition bureau is the ability to advertise your house for sale on realtor.ca without having to use a realtor to do so and be contacted privately if buyers wish to do this. If what you`re after is database access then you need to either get a license yourself or develop a working relationship with a professional that pays for access to this information and is bound to use it in accordance with local board policy... IE - a realtor!
Well this isn`t what`s on the table... you`re not getting access to that information as it has been compiled over decades by CREA. Why should you be able to access that database?
The data is proprietary. CREA publishes the general information but specific sales data can only be accessed by a member that is paying for this data to be stored, filed and made accessible IE - a realtor!
All that is being sought by the competition bureau is the ability to advertise your house for sale on realtor.ca without having to use a realtor to do so and be contacted privately if buyers wish to do this. If what you`re after is database access then you need to either get a license yourself or develop a working relationship with a professional that pays for access to this information and is bound to use it in accordance with local board policy... IE - a realtor!
I believe there is a huge hole in the market when it comes to information access in regards to RE in Canada. If the Competition Bureau is going to help remove any of this dependency on Realtors then I welcome it. Even if this means that the buyer pays for the services they require. Also needing a RE lic to access the information seems strange. If you would like for people to pay for this access then I for one would be happy to do so. I am very anal about things and would rather do all the research my self than to rely on a Realtor.
QUOTE (RedlineBrett @ Mar 23 2010, 11:18 AM) Well this isn`t what`s on the table... you`re not getting access to that information as it has been compiled over decades by CREA. Why should you be able to access that database?
The data is proprietary. CREA publishes the general information but specific sales data can only be accessed by a member that is paying for this data to be stored, filed and made accessible IE - a realtor!
All that is being sought by the competition bureau is the ability to advertise your house for sale on realtor.ca without having to use a realtor to do so and be contacted privately if buyers wish to do this. If what you`re after is database access then you need to either get a license yourself or develop a working relationship with a professional that pays for access to this information and is bound to use it in accordance with local board policy... IE - a realtor!
QUOTE (RedlineBrett @ Mar 23 2010, 11:18 AM) Well this isn`t what`s on the table... you`re not getting access to that information as it has been compiled over decades by CREA. Why should you be able to access that database?
The data is proprietary. CREA publishes the general information but specific sales data can only be accessed by a member that is paying for this data to be stored, filed and made accessible IE - a realtor!
All that is being sought by the competition bureau is the ability to advertise your house for sale on realtor.ca without having to use a realtor to do so and be contacted privately if buyers wish to do this. If what you`re after is database access then you need to either get a license yourself or develop a working relationship with a professional that pays for access to this information and is bound to use it in accordance with local board policy... IE - a realtor!
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QUOTE (RedlineBrett @ Mar 23 2010, 10:44 AM) What you are missing is the buyer`s side of the table, which is a completely different job. ....
While I dislike paying the big fee when I`m selling (just like most), I agree with Brett. Most buyers would want to work through an agent, but if every seller, or even most, out there decides to list their home for the flat fee who will pay the buyers agent? It will now have to the buyer.
And consider this: as an agent who`s home would you show? The seller`s who isn`t paying you a dime or the seller`s who paying the fee?
While I dislike paying the big fee when I`m selling (just like most), I agree with Brett. Most buyers would want to work through an agent, but if every seller, or even most, out there decides to list their home for the flat fee who will pay the buyers agent? It will now have to the buyer.
And consider this: as an agent who`s home would you show? The seller`s who isn`t paying you a dime or the seller`s who paying the fee?
So you are saying the Realtors will look out for themselves...... Same thing for a buyer paying more for a house then. When a buyer agent makes money on how much you spend it feels a little bit of a gray area for some people. Again a good Realtor I would have no issue with but it is all the other Realtors which make me think this industry is a lot like the used car industry. <- Only my opinion on some of the Realtors I have met but definitely not all as I know some great ones.
QUOTE (Cargren @ Mar 23 2010, 11:57 AM) While I dislike paying the big fee when I`m selling (just like most), I agree with Brett. Most buyers would want to work through an agent, but if every seller, or even most, out there decides to list their home for the flat fee who will pay the buyers agent? It will now have to the buyer.
And consider this: as an agent who`s home would you show? The seller`s who isn`t paying you a dime or the seller`s who paying the fee?
QUOTE (Cargren @ Mar 23 2010, 11:57 AM) While I dislike paying the big fee when I`m selling (just like most), I agree with Brett. Most buyers would want to work through an agent, but if every seller, or even most, out there decides to list their home for the flat fee who will pay the buyers agent? It will now have to the buyer.
And consider this: as an agent who`s home would you show? The seller`s who isn`t paying you a dime or the seller`s who paying the fee?
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QUOTE (aiden1983 @ Mar 23 2010, 11:46 AM) I believe there is a huge hole in the market when it comes to information access in regards to RE in Canada. If the Competition Bureau is going to help remove any of this dependency on Realtors then I welcome it. Even if this means that the buyer pays for the services they require. Also needing a RE lic to access the information seems strange. If you would like for people to pay for this access then I for one would be happy to do so. I am very anal about things and would rather do all the research my self than to rely on a Realtor.
There won`t ever be a `pay for access only` option to the MLS database. Only way you will ever get access to it is to have a license. You may not like it but since CREA has been paying to track and maintain this database they set the rules. It`s not government run like a census... It is a privately held database.
Some realtor allowed a stats gathering company access to MLS under his name. He`s looking at expulsion from the industry and fines in the 20,000 level right now. CREA takes that pretty seriously!
There won`t ever be a `pay for access only` option to the MLS database. Only way you will ever get access to it is to have a license. You may not like it but since CREA has been paying to track and maintain this database they set the rules. It`s not government run like a census... It is a privately held database.
Some realtor allowed a stats gathering company access to MLS under his name. He`s looking at expulsion from the industry and fines in the 20,000 level right now. CREA takes that pretty seriously!
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QUOTE (aiden1983 @ Mar 23 2010, 11:46 AM) I believe there is a huge hole in the market when it comes to information access in regards to RE in Canada. If the Competition Bureau is going to help remove any of this dependency on Realtors then I welcome it. Even if this means that the buyer pays for the services they require. Also needing a RE lic to access the information seems strange. If you would like for people to pay for this access then I for one would be happy to do so. I am very anal about things and would rather do all the research my self than to rely on a Realtor.
I would like this info too, Aiden. But tell me one thing. If you approached a home owner, say using Ron Legrand`s method with all the cost of yellow letters marketing, etc, and obtained all this info from him, spending your time and money, how would you react if you were told you have to share this openly with all of the REIN members. Ah, but don`t stop there, post it on line somewhere for all Canadians to see....
I would like this info too, Aiden. But tell me one thing. If you approached a home owner, say using Ron Legrand`s method with all the cost of yellow letters marketing, etc, and obtained all this info from him, spending your time and money, how would you react if you were told you have to share this openly with all of the REIN members. Ah, but don`t stop there, post it on line somewhere for all Canadians to see....
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QUOTE (aiden1983 @ Mar 23 2010, 12:12 PM) When a buyer agent makes money on how much you spend it feels a little bit of a gray area for some people.
Since it`s the seller paying the buyer agent fees this is why it is set this way.
Let`s look at the sale of a $400k house. In Calgary the `standard` fee is 3.5% of the first $100k, 1.5% of the balance to the buyer`s realtor + GST.
That`s exactly $8,000.
Let`s say the house ends up being $410,000 instead. well, that cheque grows by a whopping $150.
There is very little motivation on behalf of the agent to sell a more expensive house to their clients. Buyers see this when they do the math and usually have no problem with the commission structure. Moreso because they aren`t paying a dime
If you want a different relationship with your buyer agent this can be accomplished through a buyer brokerage agreement. Put an offer in front of your agent that you think is fair and see if you can come to an agreement. There are as many ways to slice the pie as your imagination can come up with. The seller-offered commission structure is just a base to work from in many cases!
Since it`s the seller paying the buyer agent fees this is why it is set this way.
Let`s look at the sale of a $400k house. In Calgary the `standard` fee is 3.5% of the first $100k, 1.5% of the balance to the buyer`s realtor + GST.
That`s exactly $8,000.
Let`s say the house ends up being $410,000 instead. well, that cheque grows by a whopping $150.
There is very little motivation on behalf of the agent to sell a more expensive house to their clients. Buyers see this when they do the math and usually have no problem with the commission structure. Moreso because they aren`t paying a dime
If you want a different relationship with your buyer agent this can be accomplished through a buyer brokerage agreement. Put an offer in front of your agent that you think is fair and see if you can come to an agreement. There are as many ways to slice the pie as your imagination can come up with. The seller-offered commission structure is just a base to work from in many cases!
One house vs every house in Canada is a little different. When you become that large you become a target, just look at Google, and Microsoft.
QUOTE (Cargren @ Mar 23 2010, 12:23 PM) I would like this info too, Aiden. But tell me one thing. If you approached a home owner, say using Ron Legrand`s method with all the cost of yellow letters marketing, etc, and obtained all this info from him, spending your time and money, how would you react if you were told you have to share this openly with all of the REIN members. Ah, but don`t stop there, post it on line somewhere for all Canadians to see....
QUOTE (Cargren @ Mar 23 2010, 12:23 PM) I would like this info too, Aiden. But tell me one thing. If you approached a home owner, say using Ron Legrand`s method with all the cost of yellow letters marketing, etc, and obtained all this info from him, spending your time and money, how would you react if you were told you have to share this openly with all of the REIN members. Ah, but don`t stop there, post it on line somewhere for all Canadians to see....
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QUOTE (RedlineBrett @ Mar 23 2010, 01:15 PM) There won`t ever be a `pay for access only` option to the MLS database.
Now you`re psychic?
Now you`re psychic?
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QUOTE (RedlineBrett @ Mar 23 2010, 01:24 PM) Since it`s the seller paying the buyer agent fees this is why it is set this way.
Let`s look at the sale of a $400k house. In Calgary the `standard` fee is 3.5% of the first $100k, 1.5% of the balance to the buyer`s realtor + GST.
That`s exactly $8,000.
Let`s say the house ends up being $410,000 instead. well, that cheque grows by a whopping $150.
There is very little motivation on behalf of the agent to sell a more expensive house to their clients. Buyers see this when they do the math and usually have no problem with the commission structure. Moreso because they aren`t paying a dime
If you want a different relationship with your buyer agent this can be accomplished through a buyer brokerage agreement. Put an offer in front of your agent that you think is fair and see if you can come to an agreement. There are as many ways to slice the pie as your imagination can come up with. The seller-offered commission structure is just a base to work from in many cases!
He Aiden,
Tell you what. For me to pick you up from a meeting place in Calgary north and drive you down to Cranston takes at least an hour. Now you want to see the house and use my advice to make a profitable decision. Sure, the showing lasts typically half an hour. Now I drive you back and then I drive myself back to where I came from total time 3 hours.
I also provide you with e-mail information from selected areas and only specific types of houses. I arrange access to houses you would like to see. Say, that is another hour per house.
So I worked for you 4 hours per showing. Brent says, he shows 30 houses before he sells- ehh that is 120 hours of work. Oh and then you want to have advice as to what you should do as to home inspections, mortgage brokers, problems with the condo docs, and god knows what else. Hmmm...
Then I fill out and deliver the purchase offers often in the middle of the night. How many offers was housingrental making? 80 offers before he made his deal? Hmmm.... So that is 45 minute for each offer, $10 dollars for pulling title plus stationairy. Ah... that is say 1.5 hours per offer times 80 is another 120 hours.
Oh, and now, we have to help letting the home inspectors in, getting the condo papers to the buyers, and other last minute closing stuff. Oops another 10 hours of running around. So total hours spend 250 at $250 per hour is $62,500. Oops, are you still complaining about commissions?
And we haven`t even talked about all those clients walking away from deals, fightin about mirrors, deposits, and suing the rotten realtor because he made you pay too much. Our car and gas, our office costs, etc. etc. You want my cell phone bill? How much coffee do we have to buy for you clients?
And on top of that, you want to steal our MLS data base because you think that you work on the computer so well? Well if that was true, computer genius. Then why do you not have your own data base already in place? I tell you, looking back at getting my license was not such a bad deal afterall, because I have access and you don`t... nanananaha!
Sorry I couldn`t stop myself.
Let`s look at the sale of a $400k house. In Calgary the `standard` fee is 3.5% of the first $100k, 1.5% of the balance to the buyer`s realtor + GST.
That`s exactly $8,000.
Let`s say the house ends up being $410,000 instead. well, that cheque grows by a whopping $150.
There is very little motivation on behalf of the agent to sell a more expensive house to their clients. Buyers see this when they do the math and usually have no problem with the commission structure. Moreso because they aren`t paying a dime
If you want a different relationship with your buyer agent this can be accomplished through a buyer brokerage agreement. Put an offer in front of your agent that you think is fair and see if you can come to an agreement. There are as many ways to slice the pie as your imagination can come up with. The seller-offered commission structure is just a base to work from in many cases!
He Aiden,
Tell you what. For me to pick you up from a meeting place in Calgary north and drive you down to Cranston takes at least an hour. Now you want to see the house and use my advice to make a profitable decision. Sure, the showing lasts typically half an hour. Now I drive you back and then I drive myself back to where I came from total time 3 hours.
I also provide you with e-mail information from selected areas and only specific types of houses. I arrange access to houses you would like to see. Say, that is another hour per house.
So I worked for you 4 hours per showing. Brent says, he shows 30 houses before he sells- ehh that is 120 hours of work. Oh and then you want to have advice as to what you should do as to home inspections, mortgage brokers, problems with the condo docs, and god knows what else. Hmmm...
Then I fill out and deliver the purchase offers often in the middle of the night. How many offers was housingrental making? 80 offers before he made his deal? Hmmm.... So that is 45 minute for each offer, $10 dollars for pulling title plus stationairy. Ah... that is say 1.5 hours per offer times 80 is another 120 hours.
Oh, and now, we have to help letting the home inspectors in, getting the condo papers to the buyers, and other last minute closing stuff. Oops another 10 hours of running around. So total hours spend 250 at $250 per hour is $62,500. Oops, are you still complaining about commissions?
And we haven`t even talked about all those clients walking away from deals, fightin about mirrors, deposits, and suing the rotten realtor because he made you pay too much. Our car and gas, our office costs, etc. etc. You want my cell phone bill? How much coffee do we have to buy for you clients?
And on top of that, you want to steal our MLS data base because you think that you work on the computer so well? Well if that was true, computer genius. Then why do you not have your own data base already in place? I tell you, looking back at getting my license was not such a bad deal afterall, because I have access and you don`t... nanananaha!
Sorry I couldn`t stop myself.
- Joined
- Sep 4, 2009
- Messages
- 100
MLS has been around for decades. It has been honed and refined over the years. When something has become this efficient and effective it is taken for granted. MLS exists because of the sweat, dedication, countless hours, hard work put in by it`s full time members in good times and in bad. Most of the agents the public are quick to criticize are mostly part-time or here for the good times only. They are hear for the fast buck. Same with the discount brokers and big commission cutting part-timers. Many have other jobs, lazy or work a few hours a day because they have a second source of income...namely their spouse! Many of these salespeople give the industry a bad name and are the ones that the public criticize.
Fact is, almost all discount brokers fail because selling real estate requires more than a sign on the lawn and a computer. It is a very expensive business to be involved in and to run. My brokers overhead is approx $55k per month to break even with a smaller 50 agent office. There are large expenses and support systems behind almost all deals. Secretaries, administrators, computers, fax machines, phone systems, managers, rents to pay, utilities, insurances, on an on. The commissions which seem so high go to cover all these necessary expenses.
If it was so easy and inexpensive as the discount brokers and the idiot Competition Bureau would have you believe then the discount brokers and the private sellers would have taken over a long time ago. There is ENORMOUS competition in this industry. These discounters and part-timers basically feed off the good full time agents in the good times and disappear in the bad times. It is the full time professional agents like myself who keep the system going. I remember in the 90`s most of the productive agents were full time and the producing agents all knew each other.
We have had a fake 14 year run in this market...this is totally abnormal and unsustainable and artificial. If the market had adjusted without all this temporary stimulus like it should have, we would not be having this conversation. The discounters, part-times and the Competition Bureau would be silenced once again.
This attack by the Competition Bureau is fueled by a few failed discount companies who could not make it in the industry with their flawed model and whom are waiting with their law suites ready in hand should the Bureau succeed siting that CREA cost them 100`s of millions in earnings because of their supposed anti-competitiveness. While the true reason they failed is because their reduced commission models did not generate enough revenues to keep them afloat even though they literally sold thousands of homes this way. These companies/vultures are just Gold Diggers and they know it and everyone on the inside knows it.
The majority of the agents in the industry offers and charge reduced commissions. The competition is alive and well.
Fact is, almost all discount brokers fail because selling real estate requires more than a sign on the lawn and a computer. It is a very expensive business to be involved in and to run. My brokers overhead is approx $55k per month to break even with a smaller 50 agent office. There are large expenses and support systems behind almost all deals. Secretaries, administrators, computers, fax machines, phone systems, managers, rents to pay, utilities, insurances, on an on. The commissions which seem so high go to cover all these necessary expenses.
If it was so easy and inexpensive as the discount brokers and the idiot Competition Bureau would have you believe then the discount brokers and the private sellers would have taken over a long time ago. There is ENORMOUS competition in this industry. These discounters and part-timers basically feed off the good full time agents in the good times and disappear in the bad times. It is the full time professional agents like myself who keep the system going. I remember in the 90`s most of the productive agents were full time and the producing agents all knew each other.
We have had a fake 14 year run in this market...this is totally abnormal and unsustainable and artificial. If the market had adjusted without all this temporary stimulus like it should have, we would not be having this conversation. The discounters, part-times and the Competition Bureau would be silenced once again.
This attack by the Competition Bureau is fueled by a few failed discount companies who could not make it in the industry with their flawed model and whom are waiting with their law suites ready in hand should the Bureau succeed siting that CREA cost them 100`s of millions in earnings because of their supposed anti-competitiveness. While the true reason they failed is because their reduced commission models did not generate enough revenues to keep them afloat even though they literally sold thousands of homes this way. These companies/vultures are just Gold Diggers and they know it and everyone on the inside knows it.
The majority of the agents in the industry offers and charge reduced commissions. The competition is alive and well.
Finally the long awaiting era of realtor`s monopoly for information coming to an end. It is great news - more choices for consumers.
I understand why realtors are so upset, but now time is different (internet, hi-tech age!) and many things consumers can do themselves. Home prices are also different.
Today`s words from the CREA president was impressive. He said the changes “wouldn`t make sense to anyone who wasn`t a real estate agent”. Feel the attitude?
I understand why realtors are so upset, but now time is different (internet, hi-tech age!) and many things consumers can do themselves. Home prices are also different.
Today`s words from the CREA president was impressive. He said the changes “wouldn`t make sense to anyone who wasn`t a real estate agent”. Feel the attitude?