“Don’t Use a Part Time Agent” – a Gutsy Approach

From the Desk of Darryl Mitchell, Managing Broker, RE/MAX Professionals Inc.

“Interesting approach at a time when the Competition Bureau is on the heels of organized Real Estate” Darryl Mitchell, RE/MAX Professionals Inc. Managing Broker of the RE/MAX Canada “Don’t Use A Part Time Agent” Campaign.
Let’s look at Reality. Today many agents in real estate in Ontario are part time. At a time when the Competition Bureau is berating the industry across Canada, more part time agents than ever are experiencing lower incomes than ever. Is this competition gone awry, or simply a modern trend?
Is this good for the industry? Good for society? Or is this simply a design to failure in an overly competitive industry? I suppose it depends on your perspective as to what success and competition is.
Let’s use some other life decisions as comparables;
- If you were in need of a heart transplant, would you hire a part time surgeon?
- Your car needs adjustment to its steering system. Would you hire a part time auto mechanic?
- What if you want to invest your retirement savings? Would you hire your neighbour who dabbles in stocks?
Probably not! In fact these scenarios are very unlikely. Experts in any of these fields would chastise anyone who ever thought of these approaches to major life changing decisions. The media would shout “Fool!” at anyone who pursued these tactics and lost their life, their steering or their life savings.
So what is so different with the purchase or sale of a home? Use a part time Realtor to buy or sell the largest transaction most of us make in our lives? A bit fool hardy I would say!
So is this statement, made in the public forum a fool hardy approach in the view of the recent competition challenge facing organized real estate? Considering the position of our industry, this may be the only stake holder with the capacity and knowledge to position the argument effectively for the good of all stake holders.
First, we must look at the front line competition defender, The Canadian Real Estate Association. This organization is the defender of the organized real estate industry and governed by the voting members on an equal vote basis, CREA has no mandate to make a statement such as this. A large contingent of voting membership is made up of part time Realtors! So their criticising this growing trend is unlikely.
The Competition Bureau will not criticize a competitor of questionable ability. They are attempting to increase what they, in their wisdom, is a dire lack of diverse competition. So no luck here.
Our provincial association, the Ontario Real Estate Board, and our local real estate boards who manage our Multiple Listing Services (MLS), similar to CREA will not question the ability or commitment of any of their membership, either.
Even the Real Estate Council of Ontario, who polices the ethics and professionalism will not criticise this less active group of agents.
Perish the thought of the other real estate brands standing up against the “part time” trend that is now not a trend but a norm in many other real estate business models. Being too vocal is just not politically correct at this time. Perhaps what the Competition Bureau needs to realize is that a bad business model is still a bad business model and businesses based on the “part time - low margin” approach are not financially viable. They do not provide a living income to the Realtor and their family.
So, it is up to Michael Polzler of RE/MAX Ontario Atlantic to state what is obvious to the most active in our business, time to change our industry to a more professional, full time agent basis. Let those who dabble in the business obtain a probationary license or other licensing approach. Not only will you see competition increase, but the competition will be more professional, more detailed in its approach. The consumer will be much better served with professionals representing their best interests effectively. They can still make their choice of business models. But my bet is they will still use a full time Realtor, with the time, talent, experience and professionalism to make a difference.
Or is this solution just too simple for the educated mind to see!
By the way, I am not against competition. Extremely high competition is what has made the Canadian Real Estate Industry so successful and vibrant in the face of the worst recession in two generations. We have many models currently active in our industry, many successful, others, not so much. Competition is what made our country, our industry and our people world leaders. Our MLS system and the Realtors involved helped save the equity in my home and probably yours as well. That is the way I see it, anyway.
Darryl Mitchell

See the entire article by Gary Marr from the Financial Post on the “Re/Max starts campaign against part-time agents”.

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