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

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.

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.

Low inventory levels set stage for heated Spring market in most major Canadian centres, says RE/MAX

Active listings down in 81 per cent of markets in January

Mississauga, ON (February 24, 2010) - Lack of inventory will be the greatest challenge facing housing markets across the country this Spring, according to a report released today by RE/MAX.
The RE/MAX Market Trends Report 2010, which examined real estate trends and developments in 16 markets across the country, found that unusually strong activity during one of the traditionally quietest months of the year has led to a sharp decline in active listings in 81 per cent of markets surveyed. The threat of higher interest rates, tighter lending criteria, and in British Columbia and Ontario, the introduction of the new Harmonized Sales Tax (HST) have clearly served to kick-start real estate activity from coast-to-coast, prompting an unprecedented influx of purchasers. As a result, 87.5 per cent of markets posted an increase in sales in January. Average price appreciated in 81 per cent of markets surveyed.
"There have never been so many motivating factors in play at once," says Michael Polzler, Executive Vice President, RE/MAX Ontario-Atlantic Canada. "We're in for a heated Spring market that will, in all probability, spill over into the summer months, as the window of opportunity draws to a close. The supply of homes listed for sale has been drastically reduced, housing values are once again on the upswing, and banks and governments are moving in unison toward stricter lending policies."