There are some serious changes proposed by the Canadian competition Bureau regarding CREA rules. Here are the main items they want to change or eliminate:
Section 17.2.1: The listing REALTOR® shall receive and present all offers and counter offers to the seller.
Section 17.2.3: The mere posting of property information in an MLS® system is contrary to CREA's Rules. A "mere posting" occurs when the listing agreement relieves the listing member of any obligations under the Rules, including the obligation that the listing REALTOR® must remain the agent of the seller throughout the term of the listing contract.
Section 17.2.6: Only the listing REALTOR® name(s) and contact information may appear on REALTOR.ca. The seller's name or contact information shall not appear on REALTOR.ca or in the public remarks section of the MLS® system.
Personally I am not concerned about the affects these changes will have other than being concerned about liability, privacy and safety of the public.
I have seen things from both sides of the fence. I have worked for a leading "typical"company and also a discount company. Both these business models needed change to their commission structures.
Team 3000 is very unique in that it is a "hybrid commission structure" ie we offer the seller a listing fee discount (flat fee $3000 to list) while encouraging the seller to pay "typical fees" to the buyer's agent. Typical fees for buyer's agents is approx 3% on the 1st $100,000 of the sale price and 1% on the balance. It is our opinion that buyer's agents often influence the buying decisions. Team 3000 Realty respects the buyers agents efforts.
How do we do it. We do not have fancy offices but we functional and up to date facilities. We offer our Agents our services for a small desk fee of $50/month, while typical companies charge hundreds of dollars and in some cases thousands. Team 3000 Realty and its Agents pass the savings onto you.
It is also our opinion that the listing of property on mls® is the same paperwork whether selling a $500,000 property or a $1,000,000 property. We are not concerned about agencies who put properties on MLS® but offer no service, ie seller show their own properties(safety issues, misrepresentation and privacy).
If the proposed changes are implemented sellers and listing agents may be exposed to liability issues.
It is true that the majority of sales occur through the mls® system. However the MLS® system works best when you have the full cooperation of the members. The REBGV has over 9000 Members. Most of these members are well educated, professional and have years of experience in negotiating contracts and assisting buyers in this most important buying decision. It stands to reason that you will get their full cooperation if you offer them a fair or typical commission.
Discount companies have been around for years but none have ever cornered the market or had a significant share as compared to typical companies. In my opinion this is because most of them offer the "Buyer's Agents through the MLS® system too small a fee. Unlike listing Agents, Buyer's Agent's usually work with a handful of Buyer's. During the same period a listing agent may work with dozens of sellers. Each sale is critical to the Buyer's Agent. It stands to reason that they need to make a fair commission from each sale. Some buyer's Agents spend months driving clients around, researching properties and sacrificing their personal lives to make the sale.
Sometimes the public has the wrong impression about Realtors®. They think that Realtors® are all raking in the commissions. In most cases this is not true. They work very hard for their money.
To summarize, the MLS® system is great however it is the Agents that drive it. It has been my experience that often buyers search the MLS® and then call their Realtor or Buyer's Agent. They trust the knowledge and experience of their Agents who help them make this most important decision.
Like other industries I think there is always a need for true Real Estate professionals. Personally I would not represent myself in Supreme Court, or diagnose my flu like symptoms. I think we do not give the public enough credit when it comes to real estate decisions. Most people understand the pitfalls of doing it yourself in these cases.
Having said that I also see a need for a "hybrid commission structure" where the seller gets the savings without the stigma attached to discounting fees. I believe Team 3000 has developed a commission structure which ensures that you get the same service@ a discount. By offering the buyer's agent typical commissions the seller ensures the maximum number of showings for their property by getting the full cooperation of the 9300 members of the REBGV. This will also ensure that they get the best price for their property in the shortest period of time. We call it a win-win situation.
**The cost to the seller is simply 3% of the 1st $100,000 of sale price plus 1% of the balance and a listing fee or $3000.00 for the same mls service, this is a huge savings over typical fees*(7% of the 1st $100,000 + 2 1/2 % on the balance).