Hi, I'm Mike Merritt - operator of the www.BusinessSellCanada.com website.

Robert just found the 'propertyguys' business (franchise) for sale in Hamilton.  My site also has the Lethbridge, AB one at: www.BusinessSellCanada.com/80706002.htm  and the Markham, ON one at: www.BusinessSellCanada.com/80918007.htm

So I'd say it could be either a problem with the head office arrangements or it's just the normal turnover in people selling businesses.  I get a regular stream of other franchise re-sales which appears to be just the normal rotation of people wanting to sell their business.

Mike Merritt, www.BusinessSellCanada.com

Hi,

Mike Merritt of http://www.BusinessSellCanada.com again.  And guess what ... The "PropertyGuys" listing of their Business For Sale in Hamilton (actually 4 franchises in and around Hamilton) is now "Withdrawn".  See:  http://www.businesssellcanada.com/81216002.htm

It wasn't "Sold" .... at least they did have the option to erase it as SOLD and they didn't take it.  And it was removed early since the ad was PAID for until Feb 15th.

So now what does that mean ????

The other 2 are still listed for sale on the site: http://www.businesssellcanada.com/80918007.htm (Markham) and http://www.businesssellcanada.com/80706002.htm (Lethbridge, AB)

Mike Merritt - http://www.BusinessSellCanada.com

Interesting Mike. Is it the economy, and their waiting for a more marketable time? Or is it that no one is willing to pay for young franchises that apparently didn't succeed in this marketplace? In a way, it's unfortunate that the franchise I consider to be the best of the bunch, is the first to find difficulty here. But on the other hand, this should send lightning bolts of reality to the other 12+ FSBO companies operating in this area. The competition in the FSBO field is incredible here and the entrenched leader is not the national leader. Then, you have to compete with REALTORS(R) who have the unabashed monopoly of access to the MLS(R) system, and the ability to provide a monopolized service to buyers free of charge (if they choose).

I believe the Real Estate industry will change dramatically in the next 10 years. But FSBOs, as they operate now, won't be the answer.

Thanks for the update Mike.

I think that their are other way better FSBO companies in the Hamilton area (Privaterealestate.ca and ByTheOwner.com). Propertyguys just sells franchises and they really don't care if their franchisees or their customers succeed. A Propertyguys franchise costs about 50K and then the franchisee needs to pay a lot of money every month to keep the franchise so they all quickly go out of business. In Ontario you can sell a franchise without showing the financial statements of the other franchises, that's why Propertyguys can trick people into buying franchises. Some provinces (Alberta) require that the franchisee be able to see the financials and that's why no one buys a Propertyguys franchise in Alberta!

Frank

Thanks for the input Frank. I agree with you that, in this area, privaterealestate.ca is likely the leader due to size and apparent success. I like your thinking about propertyguys.com's strategy. Any one out there had any direct dealings either as franchisee or seller?

Checked the link, and it appears the franchise has been sold already.  Faster than most homes that are listing on the market.  Big problem or just a big opportunity? 

Realtors don't list their business for sale when it no longer works - they just dissolve it.  Maybe it's the Realtor model that is wrong. 

As long as Realtors charge commission, there will always be a FSBO somewhere.   And there will always be someone willing to sell them advertising too.

Thanks Rich for checking that. You could be right. At the moment, people out of work are looking at franchising as an option, rolling savings into their own employment plan. (This year's Franchise Show in Toronto is supposedly receiving unprecedented interest in the form of pre-registrations).

Also, some disgruntled REALTORS(R) will try the FSBO model. And I agree that the REALTOR(R) model is broken. Some of us would like to see a more flexible system while still maintaining monopoly on access to those who take the time to learn the trade and get licensed.

By the way, I asked a recent FSBO seller what it had cost him to promote his home after he sold it. He said about $3,000 when he included advertising, signs, website fees, etc. Plus, he wondered if he would have saved three months of mortgage payment had he been on the MLS(R) system right away--another $3000+. A lot of people don't take into account that most FSBOs take considerably longer to sell than those listed on the MLS(R) system.

I think Property Guys.com just charges too much money. The initial buy -in is $50 to $80K and then they want monthly royalties as well. A person would need to have a large pool of cash to live out the 2 years time frame it will take to become known and profitable. The PG franchise in Winnipeg was for sale last year too. I don't know if it ever sold but I don't see anyone running it now.

  The stats do indicate that the FSBO enterprise is in a growth phase. It is much more developed in the USA than in Canada. The internet is changing the way the realty business is done. It's not a matter of if FSBO will succeed - only when.

It appears that the Lethbridge franchise is now sold from the link above. FWIW the Lehtbridge owner is at retirement age and wanted to get out to travel etc., not sure how a few franchises for sale country wide can be seen as a failure of the FSBO model?

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