There is a small loophole in the new federal mortgage rules that could make it easier for the banks to lend out money to first-time buyers.
The federal government announced last month new requirements for anyone borrowing money for a house and needing mortgage insurance. If you have less than a 20% down payment and are borrowing from a financial institution covered by the Bank Act, you have to take out mortgage default insurance, which ensures the banks are covered for any losses resulting from payment defaults.
For principal residences, the new rules force consumers to qualify for a loan based on being able to make payments on a five-year fixed-rate mortgage, which has a much higher interest rate than variable mortgages, now as low 1.85%.
Clearly, Ottawa's view was toward rising rates. And this week, two of the major banks raised their posted rate on five-year fixed mortgages to 5.85%.
But one lingering question is how the five-year rate would be calculated in terms of qualifying a customer. In other words, it would obviously be a lot tougher to qualify for a mortgage under the new rules when using the posted rate of 5.85%. But if using the actual rate consumers get -- these days as low as 3.75% -- that's a lot less income you'll need to buy your first home.
Officials in Ottawa have been mum on what numbers should be used.
But an internal document distributed by Canada Mortgage and Housing Corp. to mortgage brokers, obtained by the Financial Post, shows consumers will be able to use their actual rate to qualify for a mortgage if they go for a term five years or longer.
If buyers want a variable-rate mortgage, they will have to qualify based on "the benchmark rate," which is essentially the posted rate.
So, if you want to go short, you had better be able to make payments based on an interest rate as high as 5.85%, which is where the benchmark rate will likely sit by next week.
"Probably 10% of the overall mortgage population is going to be affected by this rule in the sense they are no longer going to be able to qualify for a variable-rate mortgage or a one- to four-year term," says Robert McLister, editor of Canadian Mortgage Trends. "The qualifying rate is going to affect the debt ratios of those people."
The end result may see more people forced to lock in their rate, which is hardly fair given variable-rate mortgages have been a better deal than fixed-rate rate mortgages about 88% of the time over the past 50 years, before the recent credit crisis.
"This will help people become accustomed to making payments based on where mortgage payments are likely to be going," said Peter Vukanovich, chief executive of Genworth Financial Canada, the mortgage insurer.
He doesn't think the changes are a major deal, given that most of the major banks have been qualifying consumers based on their four- and five-year rates. His company was already only insuring products based on rates as high as 4%.
"It's a good rule change when you are situation right now where we are increasing interest rates," says Jim Smith, vice-president of Scotia Mortgage Authority. "Most lenders, ourselves included, have qualified based on at least the three-year posted rate."
The discrepancy is, the three-year posted rate at most banks is actually higher than the five-year discounted rate.
And that means it is actually going to get easier to get a mortgage -- as long as you do what the government tells you to do and lock in your rate.
Financial Post
gmarr@nationalpost.com
Read more: http://www.financialpost.com/story.html?id=2744894#ixzz0jkvfk6vY
Wednesday, March 31, 2010
Re/Max starts campaign against part-time agents
Garry Marr, Financial Post
Published: Tuesday, March 30, 2010
Aaron Lynett / National Post The real-estate industry is no longer only battling with the Competition Bureau. It is now fighting amongst itself, with one of the country’s largest firms starting a campaign against part-time ...
The real-estate industry is no longer only battling with the Competition Bureau. It is now fighting amongst itself, with one of the country's largest firms starting a campaign against part-time agents.
Michael Polzler, head of Re/Max Ontario-Atlantic Canada, launched a new offensive this week with an advertising blitz in the greater Toronto area that says: "Warning! Don't use a part-time agent."
The campaign follows a letter Mr. Polzler paid to have printed in The Real Estate Magazine, an industry publication. In the letter, he declares it's time to "take back the industry" and calls for the creation of new requirements for agents such as increased education, a one-year apprenticeship program and a referral program that would allow inactive realtors to transfer clientele to full-time professionals for a fee.
"I don't believe part-time agents can do the job," he said in an interview. "Many consumers use part-time agents without ever knowing it. If an agent doesn't do at least one deal per quarter, they are not active in the business, excluding the obvious people like managers.
"Someone who has a non-real-estate, full-time job should not be allowed to handle the largest financial transaction most people make in their lifetime. You have taxi drivers with real-estate licences and that's not cool," Mr. Polzler said.
Re/Max Ontario-Atlantic Canada's campaign for more professionalism in the industry comes as the Canadian Real Estate Association (CREA) continues a legal battle with the Competition Bureau.
The government watchdog has launched a complaint with the Competition Tribunal over what it says are anti-competitive practices. The case revolves around the Multiple Listing Service system owned by CREA and responsible for about 90% of the transactions in Canada.
Last week, CREA passed new rules that will allow consumers to decide how much they use an agent on a deal and allow them to conduct parts of a transaction -- including listing on MLS -- without using an agent at all. But the case is still proceeding because the bureau maintains the new MLS rules can be changed by the local boards or CREA itself
Read more: http://www.financialpost.com/story.html?id=2744919#ixzz0jktzwNJb
Thursday, March 25, 2010
Message from Michael Polzer -RE/MAX Ontario Atlantic Canada
01/20/2010 - RE/MAX Ontario Atlantic
I found that 2009 proved to be a definite defining year in the real estate industry, that has now created two very separate and distinct categories of Realtors.
Read Michael's message below..and please comment to share your voice!
Experienced professionals, who stayed the course, adjusting to new conditions and adhering to solid business plans, were ideally positioned for the turnaround and emerged victorious from the downturn. The fair-weather realtors who were ill-prepared and panicked, who chose to bury their heads in the sand, were not.
I think it's time we formally acknowledge the elephant in the room.
Last year, one in five realtors failed to sell a home on TREB -- the largest board in the world. From what I understand, the same problem exists in smaller boards across Ontario and Atlantic Canada.
No one in the industry, however, has mentioned how this threatens both the consumer and the profession. Our industry is overrun by part-timers who lack the knowledge and experience to service their clients adequately. The ease with which they can hang a shingle and tarnish our profession is astounding.
Personally, I can't believe that no one has challenged this reality. With the exception of those sales associates that are new to the business – and we have some stellar rookies who have already achieved Platinum Club in their first year in the business -- and those that are winding successful real estate careers, I find it hard to fathom that one in five agents sell nothing at all. Fifty-three per cent do not do a deal a quarter yet are prepared to provide guidance to buyers and sellers making the largest single financial transaction of their lifetime.
Just who is looking out for the real estate consumer? Cab drivers? Waiters? This trend is not in the best interest of our clients, and if we, as realtors, want to raise the bar in the industry, this simply cannot continue.
Here are my thoughts on the issue. For starters, at least one-quarter of agents should be barred from trading in real estate…it's time to put the professionalism back in the profession. It's time we raise the bar and set new standards. If we don't, this group of unqualified realtors will continue to have a serious negative impact on the industry.
If this sounds familiar, it's because you've heard it before. One year ago, I talked about how uncommitted realtors were creating problems within the industry. However, at that time, economic concerns loomed overhead, a global financial crisis was brewing, and home sales had slowed to a crawl. We thought that the downturn would clean house, effectively purging the industry of non-producers and part-timers.
But the slowdown proved short-lived. And as real estate gained momentum, everyone jumped in it to make a fast buck. So it's time to get serious. We need to enlist your help and create a plan of action. After all, the greatest opportunity to raise standards is through licensing and we'd like to see stricter rules governing the registration of realtors. What about introducing a minimum sales requirement before licensing? Or an apprenticeship program where new sales associates gain valuable insight before they are licensed?
I challenge anyone in the industry to argue why a part-timer or non-producer should be allowed to trade in real estate. Stand up and please tell us how consumers benefit. Explain why Ontario needs 57,000 realtors.
My commitment to you will be to pursue this issue at all levels of government and associated organizations. I will call upon the leaders and directors of CREA, OREA, RECO and real estate boards in Ontario and Atlantic Canada to support me in this cause. These are excellent organizations, but all have built their infrastructure based on membership numbers. Is that in the best interest of the full-time real estate professional? Join us in writing to the Minister of Government Services, the Honourable Harinder S. Takhar athtakhar.mpp.co@liberal.ola.org and the Minister of Consumer Services, the Honourable Ted McMeekin, responsible for the Real Estate and Business Brokers Act, 2002 at tmcmeekin.mpp.co@liberal.ola. org to request sweeping changes to rules governing registration and licensing to protect the integrity of the profession and consumer interest.
We'd all benefit from an industry overhaul. We see the impact of those mistakes time and time again. The committed, dedicated professionals that have devoted their lives to selling homes would give their eye tooth to get rid of the clutter and restore honour and dignity to the profession. After all, the lack of commitment and expertise among part-timers affects the entire industry.
We need to send the message, once and for all -- real estate is not a fall-back profession. This industry is not a circus. It's time we rid ourselves of the elephant in the room.
Sincerely,
Michael Polzler
Executive Vice President and Regional Director
RE/MAX Ontario-Atlantic Canada Inc.
I found that 2009 proved to be a definite defining year in the real estate industry, that has now created two very separate and distinct categories of Realtors.
Read Michael's message below..and please comment to share your voice!
Experienced professionals, who stayed the course, adjusting to new conditions and adhering to solid business plans, were ideally positioned for the turnaround and emerged victorious from the downturn. The fair-weather realtors who were ill-prepared and panicked, who chose to bury their heads in the sand, were not.
I think it's time we formally acknowledge the elephant in the room.
Last year, one in five realtors failed to sell a home on TREB -- the largest board in the world. From what I understand, the same problem exists in smaller boards across Ontario and Atlantic Canada.
No one in the industry, however, has mentioned how this threatens both the consumer and the profession. Our industry is overrun by part-timers who lack the knowledge and experience to service their clients adequately. The ease with which they can hang a shingle and tarnish our profession is astounding.
Personally, I can't believe that no one has challenged this reality. With the exception of those sales associates that are new to the business – and we have some stellar rookies who have already achieved Platinum Club in their first year in the business -- and those that are winding successful real estate careers, I find it hard to fathom that one in five agents sell nothing at all. Fifty-three per cent do not do a deal a quarter yet are prepared to provide guidance to buyers and sellers making the largest single financial transaction of their lifetime.
Just who is looking out for the real estate consumer? Cab drivers? Waiters? This trend is not in the best interest of our clients, and if we, as realtors, want to raise the bar in the industry, this simply cannot continue.
Here are my thoughts on the issue. For starters, at least one-quarter of agents should be barred from trading in real estate…it's time to put the professionalism back in the profession. It's time we raise the bar and set new standards. If we don't, this group of unqualified realtors will continue to have a serious negative impact on the industry.
If this sounds familiar, it's because you've heard it before. One year ago, I talked about how uncommitted realtors were creating problems within the industry. However, at that time, economic concerns loomed overhead, a global financial crisis was brewing, and home sales had slowed to a crawl. We thought that the downturn would clean house, effectively purging the industry of non-producers and part-timers.
But the slowdown proved short-lived. And as real estate gained momentum, everyone jumped in it to make a fast buck. So it's time to get serious. We need to enlist your help and create a plan of action. After all, the greatest opportunity to raise standards is through licensing and we'd like to see stricter rules governing the registration of realtors. What about introducing a minimum sales requirement before licensing? Or an apprenticeship program where new sales associates gain valuable insight before they are licensed?
I challenge anyone in the industry to argue why a part-timer or non-producer should be allowed to trade in real estate. Stand up and please tell us how consumers benefit. Explain why Ontario needs 57,000 realtors.
My commitment to you will be to pursue this issue at all levels of government and associated organizations. I will call upon the leaders and directors of CREA, OREA, RECO and real estate boards in Ontario and Atlantic Canada to support me in this cause. These are excellent organizations, but all have built their infrastructure based on membership numbers. Is that in the best interest of the full-time real estate professional? Join us in writing to the Minister of Government Services, the Honourable Harinder S. Takhar athtakhar.mpp.co@liberal.ola.org and the Minister of Consumer Services, the Honourable Ted McMeekin, responsible for the Real Estate and Business Brokers Act, 2002 at tmcmeekin.mpp.co@liberal.ola. org to request sweeping changes to rules governing registration and licensing to protect the integrity of the profession and consumer interest.
We'd all benefit from an industry overhaul. We see the impact of those mistakes time and time again. The committed, dedicated professionals that have devoted their lives to selling homes would give their eye tooth to get rid of the clutter and restore honour and dignity to the profession. After all, the lack of commitment and expertise among part-timers affects the entire industry.
We need to send the message, once and for all -- real estate is not a fall-back profession. This industry is not a circus. It's time we rid ourselves of the elephant in the room.
Sincerely,
Michael Polzler
Executive Vice President and Regional Director
RE/MAX Ontario-Atlantic Canada Inc.
Michael Polzner on CREA and the Competition Bureau
Dear RE/MAX Broker-Owners Managers and Sales Representatives:
CREA and the Competition Bureau
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.
CREA and the Competition Bureau
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.
February new-home sales at 308,000 annual rate
Market Pulse
March 24, 2010, 10:01 a.m. EDT
By Jeffry Bartash WASHINGTON (MarketWatch) -- Sales of new homes in the U.S. fell slightly in February - the fourth straight monthly drop - to yet another record low. New-home sales slipped 2.2% to an annual pace of 308,000, seasonally adjusted, which is the lowest rate since the government began tracking the data in 1963, according to the Commerce Department. Economists surveyed by MarketWatch forecast annualized sales of 318,000. Sales for January were revised to a seasonally adjusted annual rate of 315,000, up from 309,000 as previously reported. The median price of a new home sold shot up 6.1% to $220,500 in February from January's revised level of $207,900.
March 24, 2010, 10:01 a.m. EDT
By Jeffry Bartash WASHINGTON (MarketWatch) -- Sales of new homes in the U.S. fell slightly in February - the fourth straight monthly drop - to yet another record low. New-home sales slipped 2.2% to an annual pace of 308,000, seasonally adjusted, which is the lowest rate since the government began tracking the data in 1963, according to the Commerce Department. Economists surveyed by MarketWatch forecast annualized sales of 318,000. Sales for January were revised to a seasonally adjusted annual rate of 315,000, up from 309,000 as previously reported. The median price of a new home sold shot up 6.1% to $220,500 in February from January's revised level of $207,900.
Wednesday, March 24, 2010
RE/MAX Professionals Presents Masters Edge Training
Please join us for our new in-house training program, “Masters Edge”, newly created by Richard Robbins and branded just for RE/MAXT. This program focuses on real estate fundamentals to build a successful real estate career and strategies for continued success going forward.
Some of the topics that will be covered in this program are:
• How to run your business like a business
• How to track your business and recreate success
• The importance of listings and how best to obtain
and manage them
• How to manage your finances to ensure a
profitable retirement
• How to handle any objection with ease and confidence
• How to create powerful listing and buyer presentations,
marketing materials, websites and even consumer videos using the
exclusive RE/MAX Design Centre!
Course Start Date: Wednesday April 14th, 2010
Masters Edge will run for 11 weeks
Time: 9:30am - 11:30am
Location: Erindale Training Centre, Christine Mitchell (Facilitator)
And
Kingsway Office Boardroom, Darryl Mitchell (Facilitator)
Investment of: $450.87 (includes manual, tax and shipping)*
This will be charged to your monthly expenses
Schedule
Wednesday April 14th, 2010 10-12noon
Wednesday April 21st, 2010 10-12noon
Wednesday April 28th, 2010 10-12noon
Wednesday May 12th, 2010 10-12noon
Wednesday May 19th, 2010 10-12noon
Wednesday May 26th, 2010 10-12noon
Thursday June 3rd, 2010 10-12noon
Wednesday June 9th, 2010 10-12noon
Wednesday June 16th, 2010 10-12noon
Wednesday June 23rd, 2010 10-12noon
Wednesday June 30th, 2010 10-12noon
Seating is limited
If you would like to join this great training program please call
Joanna Cusimano
Before March 29th to book your seat and to ensure materials are shipped in time for the start date
905-270-8840
Ask about our professional development incentive program!
Some of the topics that will be covered in this program are:
• How to run your business like a business
• How to track your business and recreate success
• The importance of listings and how best to obtain
and manage them
• How to manage your finances to ensure a
profitable retirement
• How to handle any objection with ease and confidence
• How to create powerful listing and buyer presentations,
marketing materials, websites and even consumer videos using the
exclusive RE/MAX Design Centre!
Course Start Date: Wednesday April 14th, 2010
Masters Edge will run for 11 weeks
Time: 9:30am - 11:30am
Location: Erindale Training Centre, Christine Mitchell (Facilitator)
And
Kingsway Office Boardroom, Darryl Mitchell (Facilitator)
Investment of: $450.87 (includes manual, tax and shipping)*
This will be charged to your monthly expenses
Schedule
Wednesday April 14th, 2010 10-12noon
Wednesday April 21st, 2010 10-12noon
Wednesday April 28th, 2010 10-12noon
Wednesday May 12th, 2010 10-12noon
Wednesday May 19th, 2010 10-12noon
Wednesday May 26th, 2010 10-12noon
Thursday June 3rd, 2010 10-12noon
Wednesday June 9th, 2010 10-12noon
Wednesday June 16th, 2010 10-12noon
Wednesday June 23rd, 2010 10-12noon
Wednesday June 30th, 2010 10-12noon
Seating is limited
If you would like to join this great training program please call
Joanna Cusimano
Before March 29th to book your seat and to ensure materials are shipped in time for the start date
905-270-8840
Ask about our professional development incentive program!
Tuesday, March 23, 2010
Competition Bureau says Competition in Real Estate Profession is Limited- You must be Kidding!
From the desk of RE/MAX Professionals, Darryl Mitchell, Managing Broker
There has been a tremendous amount of speculation as to the consequences of the Competition Bureau reviewing the way that organized real estate is performed in Canada. Some say that our industry is on the precipice to change that will overwhelm the existing participants. Others say no change will occur. Still others say this is the demise of our industry, Realtors will be dinosaurs fit for extinction and our customers will applaud.
Nothing is further from the truth. The Competition Bureau rightly reviews industries where they feel competition is controlled or inefficient. They are concerned that without competition, consumers and thus society will be hampered in their activities. The concept is good. They have served society well for many years.
It is interesting that they have chosen to review organized real estate where there are varied business models inside of and outside of the organized realm. Should reviews not be done on industries where there is little or no competition within the industry? Such is the lay of the land with the stock market monopoly, The Toronto Stock Exchange. One market controlled by the marketers! What about the Canadian banking industry? Few players in an oligopoly mode. Or what about the political industry in Ottawa! Four major players using their clout to prevent competition. Too bad we could not just prorogue the whole issue!
So the assumption here is that there is little or no competition in the real estate industry. Let us review the competitive nature of real estate sales in Canada.
The real estate industry is organized through cooperative real estate boards that provide a multiple listing service (MLS) as a means of registering current properties for sale. The cooperative nature of the business is almost 100 years old and was established at a time when real estate brokers did not cooperate on allowing others to sell their properties and obtain a payment, or commission on the sale. By cooperating, these foresighted individuals benefited the consumer by allowing an open and effective market place where consumers were represented fairly as buyers and sellers. The term “Broker” reflected this openness between parties to the sale.
Even with this cooperative MLS services, consumers are still allowed by the Real Estate and Business Brokers Act to sell their own homes without an agent. Lawyers for clients or estates are allowed to sell homes for a fee as well. Builders and Developers are allowed to sell real estate for their own businesses using their own employees.
Then why is it that the Real Estate Associations, Real Estate Boards, Brokers and Sales People are on the radar of the Competition Bureau? What has changed?
Do we, as real estate professionals have an open market place? Absolutely!
Do we not have competition for listings with negotiable commissions? Absolutely!
Has competition for listings, commission rates and prices become restricted by unfair practices? Absolutely Not!
Are different business models not allowed in our industry or within our country? Absolutely! There are more business models, franchised and independent offices and business opportunities than anyone can imagine! One only needs to review the business models of RE/MAX, Royal LePage, Coldwell Banker, Min Max Pear Tree and so on to realize there is tremendous competition among the major players, franchised or not.
Then why are we, Realtors, organized real estate if you will, targeted? Perhaps it is because we are easy, visible targets who have not explained our value proposition well in the past. It was not a year ago, when the real estate market was reeling in the recession that our professional services were valued much higher. Just ask those who are still in the realm of recession in the United States, how they value their Realtor friends. They now are pleased to pay an effective agent who can sell their home quickly and smoothly more than even a year ago, simply since they know it is not easy to do in a distressed marketplace.
And waht aboutthe increased cost our customers and clients must pay for government servcies just to get the sale completed? Why is it that our society allows new costs to the real estate transaction such as multiple land transfer taxes, environmental (green) home studies, HST increases on real estate fees and services, and so on with little or no fight?
Is the competition controversy simply a diversion from these increased government service costs?
Hmmm? Something to think about.
There has been a tremendous amount of speculation as to the consequences of the Competition Bureau reviewing the way that organized real estate is performed in Canada. Some say that our industry is on the precipice to change that will overwhelm the existing participants. Others say no change will occur. Still others say this is the demise of our industry, Realtors will be dinosaurs fit for extinction and our customers will applaud.
Nothing is further from the truth. The Competition Bureau rightly reviews industries where they feel competition is controlled or inefficient. They are concerned that without competition, consumers and thus society will be hampered in their activities. The concept is good. They have served society well for many years.
It is interesting that they have chosen to review organized real estate where there are varied business models inside of and outside of the organized realm. Should reviews not be done on industries where there is little or no competition within the industry? Such is the lay of the land with the stock market monopoly, The Toronto Stock Exchange. One market controlled by the marketers! What about the Canadian banking industry? Few players in an oligopoly mode. Or what about the political industry in Ottawa! Four major players using their clout to prevent competition. Too bad we could not just prorogue the whole issue!
So the assumption here is that there is little or no competition in the real estate industry. Let us review the competitive nature of real estate sales in Canada.
The real estate industry is organized through cooperative real estate boards that provide a multiple listing service (MLS) as a means of registering current properties for sale. The cooperative nature of the business is almost 100 years old and was established at a time when real estate brokers did not cooperate on allowing others to sell their properties and obtain a payment, or commission on the sale. By cooperating, these foresighted individuals benefited the consumer by allowing an open and effective market place where consumers were represented fairly as buyers and sellers. The term “Broker” reflected this openness between parties to the sale.
Even with this cooperative MLS services, consumers are still allowed by the Real Estate and Business Brokers Act to sell their own homes without an agent. Lawyers for clients or estates are allowed to sell homes for a fee as well. Builders and Developers are allowed to sell real estate for their own businesses using their own employees.
Then why is it that the Real Estate Associations, Real Estate Boards, Brokers and Sales People are on the radar of the Competition Bureau? What has changed?
Do we, as real estate professionals have an open market place? Absolutely!
Do we not have competition for listings with negotiable commissions? Absolutely!
Has competition for listings, commission rates and prices become restricted by unfair practices? Absolutely Not!
Are different business models not allowed in our industry or within our country? Absolutely! There are more business models, franchised and independent offices and business opportunities than anyone can imagine! One only needs to review the business models of RE/MAX, Royal LePage, Coldwell Banker, Min Max Pear Tree and so on to realize there is tremendous competition among the major players, franchised or not.
Then why are we, Realtors, organized real estate if you will, targeted? Perhaps it is because we are easy, visible targets who have not explained our value proposition well in the past. It was not a year ago, when the real estate market was reeling in the recession that our professional services were valued much higher. Just ask those who are still in the realm of recession in the United States, how they value their Realtor friends. They now are pleased to pay an effective agent who can sell their home quickly and smoothly more than even a year ago, simply since they know it is not easy to do in a distressed marketplace.
And waht aboutthe increased cost our customers and clients must pay for government servcies just to get the sale completed? Why is it that our society allows new costs to the real estate transaction such as multiple land transfer taxes, environmental (green) home studies, HST increases on real estate fees and services, and so on with little or no fight?
Is the competition controversy simply a diversion from these increased government service costs?
Hmmm? Something to think about.
Toronto Real Estate Board President's March Message
Tom Lebour, President Toronto Real Estate Board, March 15, 2010 -- Moving our clocks forward and an upcoming meeting in Ottawa are two perennial signs that spring is upon us, and the important issues being discussed at the Canadian Real Estate Association’s Annual General Meeting March 22nd are sure to make for an interesting start to the season.
You’re probably aware that last month the Commissioner of Competition filed a Notice of Application against CREA seeking to strike down certain CREA rules. One week prior to the Notice of Application, CREA advised the Commissioner of Competition and the Competition Bureau of its intention to move forward with rule changes to address the issues raised by the Bureau. Delegates from real estate boards and associations throughout the country, including Members of TREB’s Board of Directors, will vote on the proposed rule changes March 22nd.
If you’re interested in learning more about the proposed rule changes, a video message delivered by CREA’s external Competition Law counsel Katherine Kay, is posted on TorontoMLS. Further information on this issue is available under a tab called ‘Competition Bureau Information Zone’ on REALTORLink, which can be accessed directly from the TorontoMLS homepage. It includes CREA Dispatch 2010-03, which also outlines the proposed rule changes, on pages four and five of the document. Stay tuned to REALTORlink for an update as to the outcome of next week’s discussions.
Revisions to CREA’s television advertising campaign are also underway. Scheduled to be introduced April 5th, the campaign has been re-geared to reflect a more serious tone, focusing on the professional services that REALTORS® offer. TREB’s Board of Directors will soon be considering the development of a new advertising campaign as well, potentially focused on Buyer representation.
You may recall that last September I told you about the formation of a Buyers’ Services Task Force. The work of this group is progressing well, with a number of recommendations soon to be considered. This year’s new focus on Buyers’ Services extends beyond the Task Force as well.
Recently for example, a TREB-designed interface to facilitate Internet Data Exchange (IDX) was introduced. To date, more than 100 brokerages have taken advantage of this opportunity to advertise their listings on each other’s websites through reciprocal agreements.
The Connect project, which allows you to search and view the active listings and recent sales history of the REALTORS® Association of Hamilton-Burlington, the London and St. Thomas Association of REALTORS® and the Ottawa Real Estate Board, is poised to expand. Six other Boards have paid initiation fees to participate, and are in the process of developing templates to allow them to connect. It’s also important to note that five additional Real Estate Boards and Associations are included through the four founding groups. The Brampton Real Estate Board, the Durham Region Association of REALTORS®, The Mississauga Real Estate Board and Orangeville and District Real Estate Board are included through TREB and the Renfrew County Real Estate Board is included through the Ottawa Real Estate Board.
This initiative is an excellent example of the spirit of cooperation on which our profession was founded. There is though, much more that we can achieve by working together. Government Relations efforts for example, are well underway to coincide with this fall’s municipal election and I am happy to report that a Mayoral Candidate Debate will take place at this year’s REALTOR® Quest conference, May 5th and 6th at the Toronto Congress Centre. This debate is among the many highlights of this year’s conference: another expansive tradeshow, a wide selection of Continuing Education seminars and a full slate of entertainment attractions are also planned. Be sure to stay tuned for further details.
In the months leading up to the municipal election I also encourage you to help shape the future of the Greater Toronto Area by sharing your views on a daily basis through a special Op Ed section of the Toronto Star. Given that few other professions are as familiar with GTA communities, it’s important to ensure that the REALTOR® perspective on our city’s future is heard. To take advantage of this opportunity please visit http://www.thestar.com/opinion/editorials/article/775190--a-civic-call-to-action.
I also look forward to receiving your comments, questions and suggestions in the coming weeks as activity in our profession becomes even more dynamic. Please feel free to write to me anytime at trebpres@trebnet.com.
Tom Lebour
President
You’re probably aware that last month the Commissioner of Competition filed a Notice of Application against CREA seeking to strike down certain CREA rules. One week prior to the Notice of Application, CREA advised the Commissioner of Competition and the Competition Bureau of its intention to move forward with rule changes to address the issues raised by the Bureau. Delegates from real estate boards and associations throughout the country, including Members of TREB’s Board of Directors, will vote on the proposed rule changes March 22nd.
If you’re interested in learning more about the proposed rule changes, a video message delivered by CREA’s external Competition Law counsel Katherine Kay, is posted on TorontoMLS. Further information on this issue is available under a tab called ‘Competition Bureau Information Zone’ on REALTORLink, which can be accessed directly from the TorontoMLS homepage. It includes CREA Dispatch 2010-03, which also outlines the proposed rule changes, on pages four and five of the document. Stay tuned to REALTORlink for an update as to the outcome of next week’s discussions.
Revisions to CREA’s television advertising campaign are also underway. Scheduled to be introduced April 5th, the campaign has been re-geared to reflect a more serious tone, focusing on the professional services that REALTORS® offer. TREB’s Board of Directors will soon be considering the development of a new advertising campaign as well, potentially focused on Buyer representation.
You may recall that last September I told you about the formation of a Buyers’ Services Task Force. The work of this group is progressing well, with a number of recommendations soon to be considered. This year’s new focus on Buyers’ Services extends beyond the Task Force as well.
Recently for example, a TREB-designed interface to facilitate Internet Data Exchange (IDX) was introduced. To date, more than 100 brokerages have taken advantage of this opportunity to advertise their listings on each other’s websites through reciprocal agreements.
The Connect project, which allows you to search and view the active listings and recent sales history of the REALTORS® Association of Hamilton-Burlington, the London and St. Thomas Association of REALTORS® and the Ottawa Real Estate Board, is poised to expand. Six other Boards have paid initiation fees to participate, and are in the process of developing templates to allow them to connect. It’s also important to note that five additional Real Estate Boards and Associations are included through the four founding groups. The Brampton Real Estate Board, the Durham Region Association of REALTORS®, The Mississauga Real Estate Board and Orangeville and District Real Estate Board are included through TREB and the Renfrew County Real Estate Board is included through the Ottawa Real Estate Board.
This initiative is an excellent example of the spirit of cooperation on which our profession was founded. There is though, much more that we can achieve by working together. Government Relations efforts for example, are well underway to coincide with this fall’s municipal election and I am happy to report that a Mayoral Candidate Debate will take place at this year’s REALTOR® Quest conference, May 5th and 6th at the Toronto Congress Centre. This debate is among the many highlights of this year’s conference: another expansive tradeshow, a wide selection of Continuing Education seminars and a full slate of entertainment attractions are also planned. Be sure to stay tuned for further details.
In the months leading up to the municipal election I also encourage you to help shape the future of the Greater Toronto Area by sharing your views on a daily basis through a special Op Ed section of the Toronto Star. Given that few other professions are as familiar with GTA communities, it’s important to ensure that the REALTOR® perspective on our city’s future is heard. To take advantage of this opportunity please visit http://www.thestar.com/opinion/editorials/article/775190--a-civic-call-to-action.
I also look forward to receiving your comments, questions and suggestions in the coming weeks as activity in our profession becomes even more dynamic. Please feel free to write to me anytime at trebpres@trebnet.com.
Tom Lebour
President
CREA MEMBERSHIP APPROVES RULE AMENDMENTS
OTTAWA – March 22, 2010 – Today, during its Annual General Meeting (AGM) at the Westin Hotel, the membership of the Canadian Real Estate Association (CREA) approved amendments clarifying CREA’s rules relating to real estate Boards’ MLS® Systems.
“CREA is pleased that the amendments have passed”, says CREA president Georges Pahud.
Through these proactive clarifications of the existing rules, CREA believes that the concerns raised by the Competition Bureau are fully addressed. At the same time, these amendments ensure the continued integrity of MLS® Systems and the accuracy and quality of information on Board MLS® Systems that Canadians have come to trust.
About The Canadian Real Estate Association
The Canadian Real Estate Association (CREA) is one of Canada's largest single-industry trade associations, representing more than 98,000 real estate Brokers/agents and salespeople working through more than 100 real estate Boards and Associations.
For more information, please contact:
Alyson Fair
613-237-7111 or 613-884-1460
Email: afair@crea.ca
“CREA is pleased that the amendments have passed”, says CREA president Georges Pahud.
Through these proactive clarifications of the existing rules, CREA believes that the concerns raised by the Competition Bureau are fully addressed. At the same time, these amendments ensure the continued integrity of MLS® Systems and the accuracy and quality of information on Board MLS® Systems that Canadians have come to trust.
About The Canadian Real Estate Association
The Canadian Real Estate Association (CREA) is one of Canada's largest single-industry trade associations, representing more than 98,000 real estate Brokers/agents and salespeople working through more than 100 real estate Boards and Associations.
For more information, please contact:
Alyson Fair
613-237-7111 or 613-884-1460
Email: afair@crea.ca
U.S. existing-home sales fall 3rd month in row
By Rex Nutting WASHINGTON (MarketWatch) Market Pulse
March 23, 2010, 10:00 a.m. EDT
Resales of U.S. homes and condos fell 0.6% in February to a seasonally adjusted annual rate of 5.02 million, the lowest level in eight months, raising doubts about the durability of the housing recovery, the National Association of Realtors reported Tuesday. Sales of existing homes have fallen three consecutive months after rising steadily through the fall in response to a federal subsidy for first-time home buyers. The tax credit has been restored and expanded to repeat buyers, but there has been no increase in sales yet. Inventories of sales on the market jumped in February, rising 312,000 to 3.59 million, the highest since September.
March 23, 2010, 10:00 a.m. EDT
Resales of U.S. homes and condos fell 0.6% in February to a seasonally adjusted annual rate of 5.02 million, the lowest level in eight months, raising doubts about the durability of the housing recovery, the National Association of Realtors reported Tuesday. Sales of existing homes have fallen three consecutive months after rising steadily through the fall in response to a federal subsidy for first-time home buyers. The tax credit has been restored and expanded to repeat buyers, but there has been no increase in sales yet. Inventories of sales on the market jumped in February, rising 312,000 to 3.59 million, the highest since September.
GTA REALTORS® REPORTING MARCH MID-MONTH HOUSING STATISTICS
TORONTO, MARCH 17, 2010 - Greater Toronto REALTORS® reported 4,353 sales through the Multiple Listing Service® (MLS®) during the first two weeks of March. This represented a 70 per cent increase compared to the 2,562 sales recorded during the same period in 2009 when resale transactions had dipped markedly due to the recession. The mid-month sales total was also 16 per cent higher than the previous March midmonth high reached in 2006. “The spring-like weather in the first half of March brought the first green sprouts of the recuring spring market. Every year, monthly sales climb steadily through May,” said Toronto Real Estate Board President Tom Lebour. "People are buying homes because they are confident in the current economic recovery and mortgage payments on the average priced home remain affordable."
The average price for March mid-month transactions was $440,153 – a 20 per cent increase over 2009. New listings within the Toronto Real Estate Board boundaries were up 34 per cent to 8,540.
"Look for double-digit annual price increases to cease later in 2010, as new listings rebound from the low levels experienced in 2009," said Jason Mercer, TREB's Senior Manager of Market Analysis. "Increased listings will give buyers more choice, resulting in less upward pressure on home prices.”
Greater Toronto REALTORS® are passionate about their work. They adhere to a strict Code of Ethics and share a state-of-the-art Multiple Listing Service. Serving over 29,000 Members in the Greater Toronto Area, the Toronto Real Estate Board is Canada’s largest real estate board. Greater Toronto Area open house listings are now available on www.TorontoRealEstateBoard.com.
The average price for March mid-month transactions was $440,153 – a 20 per cent increase over 2009. New listings within the Toronto Real Estate Board boundaries were up 34 per cent to 8,540.
"Look for double-digit annual price increases to cease later in 2010, as new listings rebound from the low levels experienced in 2009," said Jason Mercer, TREB's Senior Manager of Market Analysis. "Increased listings will give buyers more choice, resulting in less upward pressure on home prices.”
Greater Toronto REALTORS® are passionate about their work. They adhere to a strict Code of Ethics and share a state-of-the-art Multiple Listing Service. Serving over 29,000 Members in the Greater Toronto Area, the Toronto Real Estate Board is Canada’s largest real estate board. Greater Toronto Area open house listings are now available on www.TorontoRealEstateBoard.com.
Monday, March 22, 2010
CBC Reports on MLS Changes
Follow this link to see the CBC Neews report on the MLS decision by CREA today:
http://www.cbc.ca/video/player.html?category=News&clipid=1448263726
http://www.cbc.ca/video/player.html?category=News&clipid=1448263726
GTA new home sales in February best since 2006
March 22, 2010
Comments on this story (6)
Tony Wong
BUSINESS REPORTER
Sales of new houses and condominiums in the Greater Toronto Area were up by more than 237 per cent in February compared with last year according to figures released today.
The 3,148 new homes sold represented the highest levels since 2006, according to RealNet Canada Inc.
“The new home market continues to benefit from the tight conditions in the resale market, 50-year low interest rates and healthy levels of consumer confidence in real estate,” said the Toronto-based Building, Industry, & Land Development Association.
However, February of 2009 was a recessionary year, with the figures representing the bottom of the market. Compared with 2008, February sales were still respectable, up 24 per cent, while it was up 19 per cent compared with 2007.
February sales were virtually split between low rise and high rise, with 51 per cent of buyers opting for detached or town homes, while 49 per cent chose condominiums.
Comments on this story (6)
Tony Wong
BUSINESS REPORTER
Sales of new houses and condominiums in the Greater Toronto Area were up by more than 237 per cent in February compared with last year according to figures released today.
The 3,148 new homes sold represented the highest levels since 2006, according to RealNet Canada Inc.
“The new home market continues to benefit from the tight conditions in the resale market, 50-year low interest rates and healthy levels of consumer confidence in real estate,” said the Toronto-based Building, Industry, & Land Development Association.
However, February of 2009 was a recessionary year, with the figures representing the bottom of the market. Compared with 2008, February sales were still respectable, up 24 per cent, while it was up 19 per cent compared with 2007.
February sales were virtually split between low rise and high rise, with 51 per cent of buyers opting for detached or town homes, while 49 per cent chose condominiums.
Real estate group approves MLS changes
Last Updated: Monday, March 22, 2010 | 10:27 PM ET Comments169Recommend96CBC News
The Canadian Real Estate Association approved changes to the rules governing the use of its Multiple Listing Service at its annual general meeting in Ottawa on Monday.
"CREA is pleased that the amendments have passed," CREA president Georges Pahud said in a news release. The Competition Bureau feels CREA limits consumer choice and forces people to pay for services they might not want when selling a house. (CBC)
The association issued an earlier news release stating that the amendments had been rejected by its membership — a position it later retracted.
CREA did not provide details of the nature of the changes approved Monday, and spokesperson Alyson Fair said the association would not be commenting further on the outcome of the vote.
The changes are meant to address complaints raised by the Competition Bureau, which has complained that CREA's Multiple Listing Service or MLS limits consumer choice and forces people to pay for services they might not want when selling a house through MLS.
CREA owns the Multiple Listing Service, which includes the public websites MLS.ca and Realtor.ca. People who want their homes listed on the MLS system must pay for several other services the association offers, even if they don't want them.
The bureau filed a complaint last month with the Competition Tribunal in an attempt to force CREA to change its sales rules.
The Competition Tribunal is an independent body that rules on recommendations made by the bureau after it has investigated complaints.
On Monday, the CREA said that now that the rule changes have been approved, "the concerns raised by the Competition Bureau are fully addressed."
Greg Scott, the bureau's senior communications adviser, disagrees.
"The rule changes passed by CREA amount to a blank cheque allowing CREA and its members to impose and enforce rules even more restrictive than the existing ones," he told CBC News in an email.
Consumer choice
Melanie Aitken, commissioner of competition with the bureau, said the bureau's main concern has been consumer choice.
The real estate association requires all sellers wanting to use MLS to pay for a full suite of services, she told CBC News Network's Lang & O'Leary Exchange in February.
In the bureau's view, this requirement interferes with competition, she said, especially given that some of CREA's members are willing to sell only some of the services and charge a lower commission.
The bureau filed the complaint against the association after three years of trying to negotiate changes to the rules, Scott said.
"We've been negotiating with them for three years," Scott said. "We've been negotiating with them intensively since October.
"Clearly, we've arrived at a point where CREA's leadership wasn't willing to agree to the changes that we felt were necessary to open up the real estate market. At that point, we felt we had no option but to proceed with an application to the tribunal."
The bureau will continue its case before the Competition Tribunal, Scott said.
Read more: http://www.cbc.ca/consumer/story/2010/03/22/real-estate-votecrea.html#ixzz0ixvspMT5
The Canadian Real Estate Association approved changes to the rules governing the use of its Multiple Listing Service at its annual general meeting in Ottawa on Monday.
"CREA is pleased that the amendments have passed," CREA president Georges Pahud said in a news release. The Competition Bureau feels CREA limits consumer choice and forces people to pay for services they might not want when selling a house. (CBC)
The association issued an earlier news release stating that the amendments had been rejected by its membership — a position it later retracted.
CREA did not provide details of the nature of the changes approved Monday, and spokesperson Alyson Fair said the association would not be commenting further on the outcome of the vote.
The changes are meant to address complaints raised by the Competition Bureau, which has complained that CREA's Multiple Listing Service or MLS limits consumer choice and forces people to pay for services they might not want when selling a house through MLS.
CREA owns the Multiple Listing Service, which includes the public websites MLS.ca and Realtor.ca. People who want their homes listed on the MLS system must pay for several other services the association offers, even if they don't want them.
The bureau filed a complaint last month with the Competition Tribunal in an attempt to force CREA to change its sales rules.
The Competition Tribunal is an independent body that rules on recommendations made by the bureau after it has investigated complaints.
On Monday, the CREA said that now that the rule changes have been approved, "the concerns raised by the Competition Bureau are fully addressed."
Greg Scott, the bureau's senior communications adviser, disagrees.
"The rule changes passed by CREA amount to a blank cheque allowing CREA and its members to impose and enforce rules even more restrictive than the existing ones," he told CBC News in an email.
Consumer choice
Melanie Aitken, commissioner of competition with the bureau, said the bureau's main concern has been consumer choice.
The real estate association requires all sellers wanting to use MLS to pay for a full suite of services, she told CBC News Network's Lang & O'Leary Exchange in February.
In the bureau's view, this requirement interferes with competition, she said, especially given that some of CREA's members are willing to sell only some of the services and charge a lower commission.
The bureau filed the complaint against the association after three years of trying to negotiate changes to the rules, Scott said.
"We've been negotiating with them for three years," Scott said. "We've been negotiating with them intensively since October.
"Clearly, we've arrived at a point where CREA's leadership wasn't willing to agree to the changes that we felt were necessary to open up the real estate market. At that point, we felt we had no option but to proceed with an application to the tribunal."
The bureau will continue its case before the Competition Tribunal, Scott said.
Read more: http://www.cbc.ca/consumer/story/2010/03/22/real-estate-votecrea.html#ixzz0ixvspMT5
Watchdog rejects proposed real-estate rule change
Date: Mon. Mar. 22 2010 10:31 PM ET
The Competition Bureau has panned a move by the Canadian Real Estate Association to give private home-sellers access to the MLS database, calling it a "step in the wrong direction" that will not reduce costs.
About 300 real estate agents from across Canada who attended the association's annual general meeting voted on the amendments, which will allow home sellers to pay a flat fee to have their homes listed on the Multiple Listing Service and then handle the negotiations themselves.
Currently, agents are paid a commission on the transaction in exchange for handling the listing and price negotiations.
Private sellers must also have an agent in order to list their property in the MLS database, and that agent must be involved throughout the sales process.
The association's rule changes came about after the Competition Bureau voiced concerns that the current system drives up the cost of real estate for individuals.
But the cost to sellers of listing a home and then going it alone is unclear and the Competition Bureau argues the amendments don't allow realtors to offer clients "a la carte" services.
"They are a step in the wrong direction," Competition Bureau commissioner Melanie Aitken said in a statement. "These amendments amount to a blank cheque allowing CREA and its members to create rules that could have even greater anti-competitive consequences."
More than 98,000 real estate agents, brokers and salespeople are members of the association, and only they are permitted to list homes on the MLS database.
The CREA said it was willing to review the process after the bureau filed charges with the Competition Tribunal alleging that real estate agents can't offer their clients "a la carte," fee-based services. The bureau also complained that the MLS rules prevented sellers from negotiating their own deals.
The new guidelines will come into effect as soon as each of the country's real state boards approve them.
Dale Ripplinger, the CREA's outgoing president, would not explain to reporters Monday how the amendments will help agents or home sellers.
Ripplinger said the changes are "too technical in nature and wouldn't make sense to anybody except realtors."
Georges Pahud, the CREA's president-elect, said he was pleased that the amendments had been passed. The association has now addressed the Competition Bureau's concerns, he said.
But Aitken said there is nothing new in the CREA's proposed changes. The Bureau plans to continue to challenge what it calls anti-competitive rules imposed by CREA.
"We have repeatedly advised CREA's leadership that these amendments do not solve our ongoing competition concerns and I reiterated this directly to CREA as recently as last week in a letter to the president," Aitken said.
The real estate association said it will dispute the Competition Bureau's accusations.
The association must submit a formal response by Thursday.
With a report by CTV's Richard Madan in Ottawa and files from The Canadian Press
To see the CTV news report go to the following link:
http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/20100322/crea_rules_100322/20100322?hub=TopStoriesV2
The Competition Bureau has panned a move by the Canadian Real Estate Association to give private home-sellers access to the MLS database, calling it a "step in the wrong direction" that will not reduce costs.
About 300 real estate agents from across Canada who attended the association's annual general meeting voted on the amendments, which will allow home sellers to pay a flat fee to have their homes listed on the Multiple Listing Service and then handle the negotiations themselves.
Currently, agents are paid a commission on the transaction in exchange for handling the listing and price negotiations.
Private sellers must also have an agent in order to list their property in the MLS database, and that agent must be involved throughout the sales process.
The association's rule changes came about after the Competition Bureau voiced concerns that the current system drives up the cost of real estate for individuals.
But the cost to sellers of listing a home and then going it alone is unclear and the Competition Bureau argues the amendments don't allow realtors to offer clients "a la carte" services.
"They are a step in the wrong direction," Competition Bureau commissioner Melanie Aitken said in a statement. "These amendments amount to a blank cheque allowing CREA and its members to create rules that could have even greater anti-competitive consequences."
More than 98,000 real estate agents, brokers and salespeople are members of the association, and only they are permitted to list homes on the MLS database.
The CREA said it was willing to review the process after the bureau filed charges with the Competition Tribunal alleging that real estate agents can't offer their clients "a la carte," fee-based services. The bureau also complained that the MLS rules prevented sellers from negotiating their own deals.
The new guidelines will come into effect as soon as each of the country's real state boards approve them.
Dale Ripplinger, the CREA's outgoing president, would not explain to reporters Monday how the amendments will help agents or home sellers.
Ripplinger said the changes are "too technical in nature and wouldn't make sense to anybody except realtors."
Georges Pahud, the CREA's president-elect, said he was pleased that the amendments had been passed. The association has now addressed the Competition Bureau's concerns, he said.
But Aitken said there is nothing new in the CREA's proposed changes. The Bureau plans to continue to challenge what it calls anti-competitive rules imposed by CREA.
"We have repeatedly advised CREA's leadership that these amendments do not solve our ongoing competition concerns and I reiterated this directly to CREA as recently as last week in a letter to the president," Aitken said.
The real estate association said it will dispute the Competition Bureau's accusations.
The association must submit a formal response by Thursday.
With a report by CTV's Richard Madan in Ottawa and files from The Canadian Press
To see the CTV news report go to the following link:
http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/20100322/crea_rules_100322/20100322?hub=TopStoriesV2
New Web Site for RE/MAX Professionals www.remaxprofessionals.ca
Today's launch of the new RE/MAX Professionals web site lifts the web presence of the sales staff to a new level of web prominence. Designed as a tool for customers and clients to find the Brokerage listings and agents faster than ever, the new site involves the latest of social media with links to this blog "Re/Max Professional Talk", Twitter posts, Facebook and Linked in profiles and more. Video marketing of listings will be made easier and more efficient of this amazingly easily utilized site.
"Web Sites can no longer be just state of the art," stated Darryl Mitchell, Etobicoke Managing Broker. "This site must be state of the media, designed to broadcast information, to make RE/MAX Professionals the Brokerage of choice for real estate information."
The jammed room saw Gabriel Jeans of Web Tech Design demonstrate the effectiveness of this mult-functional site. With links to all of the agent sites, this site is Do Not Call list functional allowing agents to concentrate on what they do best, sell and buy homes with their many clients.
Clients have the ability to search not just RE/MAX Professionals listings, but also those of other Brokerages cooperating on the Internet Data Exchange IDX for Toronto and area.
To learn more about this impactive new site contact Darryl Mitchell, Managing Broker, Etobicoke 416-236-1241 or Christine Mitchell, Managing Broker, Mississauga 905-270-0575.
To view state of the art web presence go to www.remaxprofessionals.ca
"Web Sites can no longer be just state of the art," stated Darryl Mitchell, Etobicoke Managing Broker. "This site must be state of the media, designed to broadcast information, to make RE/MAX Professionals the Brokerage of choice for real estate information."
The jammed room saw Gabriel Jeans of Web Tech Design demonstrate the effectiveness of this mult-functional site. With links to all of the agent sites, this site is Do Not Call list functional allowing agents to concentrate on what they do best, sell and buy homes with their many clients.
Clients have the ability to search not just RE/MAX Professionals listings, but also those of other Brokerages cooperating on the Internet Data Exchange IDX for Toronto and area.
To learn more about this impactive new site contact Darryl Mitchell, Managing Broker, Etobicoke 416-236-1241 or Christine Mitchell, Managing Broker, Mississauga 905-270-0575.
To view state of the art web presence go to www.remaxprofessionals.ca
Monday, March 15, 2010
Demand and supply coming into balance in resale market
OTTAWA – March 15, 2010 – With rising activity in Toronto offset by lower activity in Vancouver, the number of homes sold through the Multiple Listing Service® (MLS®) Systems of Canadian real estate Boards edged lower in February. In recent months, national sales activity has slowed while new listings continue to rise, resulting in a more balanced national resale housing market.
According to statistics released by The Canadian Real Estate Association, seasonally adjusted national home sales totalled 42,799 units in February 2010, edging down 1.5 per cent from January. Activity declined mostly in Vancouver, but this was offset by an equally large gain in Toronto. Sales were also down in a number of other British Columbia housing markets. Since there were no significant gains in sales activity elsewhere in Canada, the national figure for sales activity was pulled slightly lower.
For the entire article you can go to the CREA Blog at http://creanews.ca/
According to statistics released by The Canadian Real Estate Association, seasonally adjusted national home sales totalled 42,799 units in February 2010, edging down 1.5 per cent from January. Activity declined mostly in Vancouver, but this was offset by an equally large gain in Toronto. Sales were also down in a number of other British Columbia housing markets. Since there were no significant gains in sales activity elsewhere in Canada, the national figure for sales activity was pulled slightly lower.
For the entire article you can go to the CREA Blog at http://creanews.ca/
Thursday, March 11, 2010
Chris Hillier Newest RE/MAX Professional
CHRIS HILLIER
Interested in the creation of current multimedia trends, Chris spent his post secondary years studying a variety of technical disciplines from television and graphic design, to advertising and photography. Each applying an emphasis in communication. Chris has a heightened understanding of how to make the most of current marketing and networking trends. His goal is to become successful in the real estate market with the use of his multimedia talents and current networking tools.
Chris will be joining the Simandl Group. Dave and Monique are very excited to have Chris join their team and bring their real estate business to the next level.
Please welcome Chris, he can be reached by email at info@chrishillier.ca.
Register Today - RE/MAX Presents Exclusive Tom Ferry Event
Toronto Congress Centre, Toronto ON
Don't miss this First Class real estate educational opportunity!
Be engaged, inspired and informed by North America's most sought real estate professional - Tom Ferry
Learning Outcomes
1. Strategically learn how to improve your performance in business
2. Discover the 4 Performance Traps and how to avoid them
3. Learn to negotiate and influence with power- advanced negotiation skills
4. Lead Generation 2.0!
5. Shift social media to effective, inventive marketing strategies
6. Master how to triple the number of qualified appointments you're going on
7. Get the exact plan of how to add 24 transactions to your production in the next 12 months
8. Transition your business from "by default" to a business that works and runs "by design"
________________________________________
Tom Ferry
Over more than a decade, Tom Ferry has earned a peerless reputation across North America as a top trainer, motivator and personal coach for professionals in the real estate and financial services industries. Tom has conducted trainings for more than 130,000 sales people nationwide, and has personally coached 16 of the top 100 agents in the entire country.
Performance by Design Video for RE/MAX
________________________________________
Investment:
$199.00 per person
$165.00 per person - Special Early Bird Rate (Expires March 24, 2010)
Program:
2-day Workshop - 9:30 am - 4:30 pm, April 29th - 30th
Networking Reception - 5:00 pm, April 29th
Meeting Venue:
Toronto Congress Centre 650 Dixon Road, Toronto, ON M9W 1J1
www.torontocongresscentre.com (Map & Directions)
Don't miss this First Class real estate educational opportunity!
Be engaged, inspired and informed by North America's most sought real estate professional - Tom Ferry
Learning Outcomes
1. Strategically learn how to improve your performance in business
2. Discover the 4 Performance Traps and how to avoid them
3. Learn to negotiate and influence with power- advanced negotiation skills
4. Lead Generation 2.0!
5. Shift social media to effective, inventive marketing strategies
6. Master how to triple the number of qualified appointments you're going on
7. Get the exact plan of how to add 24 transactions to your production in the next 12 months
8. Transition your business from "by default" to a business that works and runs "by design"
________________________________________
Tom Ferry
Over more than a decade, Tom Ferry has earned a peerless reputation across North America as a top trainer, motivator and personal coach for professionals in the real estate and financial services industries. Tom has conducted trainings for more than 130,000 sales people nationwide, and has personally coached 16 of the top 100 agents in the entire country.
Performance by Design Video for RE/MAX
________________________________________
Investment:
$199.00 per person
$165.00 per person - Special Early Bird Rate (Expires March 24, 2010)
Program:
2-day Workshop - 9:30 am - 4:30 pm, April 29th - 30th
Networking Reception - 5:00 pm, April 29th
Meeting Venue:
Toronto Congress Centre 650 Dixon Road, Toronto, ON M9W 1J1
www.torontocongresscentre.com (Map & Directions)
Wednesday, March 10, 2010
@ impact -Social Influence Marketing for Realtors
Social Influence Marketing at RE/MAX Professionals this morning. Come join us! This is the first of a series of seminar/workshop sessions designed for business people of all levels to implement an effective social marketing program to influence and impact thier customers in a positive way. Darryl Mitchell is the developer of this impactive program designed to make a difference in your business. Learn how to increasae your wuffie. Implement a program of social media from scratch. Link your social media together to create an easily managed, focused approach. Email Darryl Mitchell for more informaiton at dmitchell@remaxprofessionals.ca.
CTV Covers the importance of the Home Title Insurance
Source: CTV Canada AM
This excellent CTV Canada AM segment covers the importance of title insurance to protect against several common problems in an existing home purchase. Check the video out.
javascript:changeVideo('','AM0309_home','00:00:00.00','00:02:17.00','274116','11')
This excellent CTV Canada AM segment covers the importance of title insurance to protect against several common problems in an existing home purchase. Check the video out.
javascript:changeVideo('','AM0309_home','00:00:00.00','00:02:17.00','274116','11')
Tuesday, March 9, 2010
Refinancing tempting at these rates
Rob Carrick
Published on Tuesday, Mar. 09, 2010 12:00AM EST
Last updated on Tuesday, Mar. 09, 2010 6:30PM EST
The big banks are in a particularly feisty mood as we head into what promises to be an eventful spring season for home sales.
Bank of Montreal is advertising a highly competitive 3.75-per-cent rate on a five-year fixed-rate mortgage for customers willing to pay off their debt in no more than 25 years. Canadian Imperial Bank of Commerce is offering a combination of 3.99 per cent for five years plus 2 per cent cash back in an attractive offer that's all about prying customers away from its competitors.
Both offers signal the banks are aggressively trying to build market share at a time when home sales are strong and there are signs the usual spring surge is already building. Mortgage broker John Cocomile said the offers also signal a departure from the usual bank practice of making customers negotiate for a good deal. See the entire article at the following link:
http://www.theglobeandmail.com/globe-investor/personal-finance/refinancing-tempting-at-these-rates/article1494451/
Published on Tuesday, Mar. 09, 2010 12:00AM EST
Last updated on Tuesday, Mar. 09, 2010 6:30PM EST
The big banks are in a particularly feisty mood as we head into what promises to be an eventful spring season for home sales.
Bank of Montreal is advertising a highly competitive 3.75-per-cent rate on a five-year fixed-rate mortgage for customers willing to pay off their debt in no more than 25 years. Canadian Imperial Bank of Commerce is offering a combination of 3.99 per cent for five years plus 2 per cent cash back in an attractive offer that's all about prying customers away from its competitors.
Both offers signal the banks are aggressively trying to build market share at a time when home sales are strong and there are signs the usual spring surge is already building. Mortgage broker John Cocomile said the offers also signal a departure from the usual bank practice of making customers negotiate for a good deal. See the entire article at the following link:
http://www.theglobeandmail.com/globe-investor/personal-finance/refinancing-tempting-at-these-rates/article1494451/
Speaking to "Liceo Estudios Superiores" in Queretaro Mexico
Darryl Mitchell spoke on behalf of Leader Impact Group and RE/MAX Professionals Inc. in Queretaro Mexico, March 5, 2010. His talk to 300 Mexican university business students was on "Principios de Negocios para futuros Empresarios" "Principles of Negotiation for Future Entrepreneurs". Joining Darryl is his wife Christine and the staff of the University.
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