# CREA finally gives in



## GeniusBoy27 (Jun 11, 2010)

The vote is coming in tomorrow, but the Globe and Mail Reports that soon you can be selling your home for much cheaper!

http://www.theglobeandmail.com/news...mers-wider-choice-of-services/article1770659/


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## DavidJD (Sep 27, 2009)

I posted this on August 23rd...still believe it...

"_If MLS access is successfully challenged by the For-Sale-By-Owner service package providers (Comfree and the like), then the MLS will end up just like putting your house up on Kijiji. Re/max, RLP C21 and all the others large brokerages are not going to cooperate. What will happen is the large companies will create an exlusive database and share amongst themselves - exluding FSBO's. The real victim will me be the thousands of independent brokerages with a handful of Realtors and a tiny market share (yet with a loyal and well served client base). Where the big 3-4 companies already occupy 60% of the market share, the selection of brokerages to list with will be reduced significantly. The larger brokerages will swallow their market share. This will not serve the public better than today.

And if you want to list or sell a home in the powerful, exclusive database, your choice is narrowed and the fee, will be the same if not higher.

Thoughts? _"


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## CanadianCapitalist (Mar 31, 2009)

The consent agreement between CREA and CB can be found here:

http://www.ct-tc.gc.ca/CMFiles/CT-2010-002_Registered Consent Agreement_75_38_10-25-2010_2647.pdf

I think this is great news for homeowners. The key point is that CREA will not be able to change the rules if it starts to feel the heat from the discounters. I'm not convinced that the big brokerages will band together to start off another database exclusive to themselves.


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## Berubeland (Sep 6, 2009)

David it's already done...

The five major brokerages have decided to create their own site to "compete" with realtor.ca a while back.


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## kcowan (Jul 1, 2010)

The listing broker will decide what to charge for an MLS listing. Can FSBO become a member?


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## DavidJD (Sep 27, 2009)

Berubeland said:


> David it's already done...
> 
> The five major brokerages have decided to create their own site to "compete" with realtor.ca a while back.


Makes sense to me. Now vendors who insist on their own list price and not even at a RE-fee-less discount, will have their own market. The motivated vendors (and most desireable) will be on the big five's site - and be glad to pay for it. You get what you pay for. A database of 'listings' does not make a real estate industry. The former MLS database will lessen to the point of it being a glorified Craigslist and the exclusive, big five database will be the premier, most sought after place to 'list' your home in Canada. 

A Pyrrhic victory...


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## GeniusBoy27 (Jun 11, 2010)

I wonder if the big real estate firms will hold up under the increased pressure, because I would see an increase fragmentation of the market. In short, it's good old disruptive innovation. I can see a strong comptetitor, with a more user friendly search engine providing a significant challenge to the existing MLS. 

In particular, I see real estate agents that concentrate on a specific area/type of house may have an advantage. I also see a significant challenge to the MLS website, from *gasp* ... a more user friendly website?


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## CanadianCapitalist (Mar 31, 2009)

Berubeland said:


> David it's already done...
> 
> The five major brokerages have decided to create their own site to "compete" with realtor.ca a while back.


Do the five major brokerages have their own database that is in competition to the MLS?


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## andrewf (Mar 1, 2010)

If the Big 5 go that route, they may face further competition litigation. That smacks of cartel-like behaviour to me.


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## GeniusBoy27 (Jun 11, 2010)

I think that's a fascinationg question, but if there's open competition, how would it be cartel like behaviour, unless they set up exclusionary practices?

It's like setting up your own business website. We may be the biggest, but as long as there are other options? You can't buy a house unless you're with us?

It'll be interesting to see how this plays out.


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## Jungle (Feb 17, 2010)

While I think this is good news, the wife wants us to upgrade by next year. I would love to use this service to list our condo on MLS for a flat fee. I have never researched this before but I assume it would go like this:

1. Condo listed on MLS for a few hundred bucks. 
2. Add says buyer's agent will get XX% (2-2.5%) to bring buyers to door
3. Seller takes all phone calls and books showings. (including giving lock box key combo?)
4. Offer is presented by buyer's agent directly to seller. 
5. Final offer is looked over by lawyer, to ensure everything is ok.


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## Jungle (Feb 17, 2010)

The other thing that worries me is how do you ensure someone is pre-approved with a mortgage. I can just imagine people putting offers down before checking with the bank if they qualify. Do they normally put that into the clause?


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## Jon202 (Apr 14, 2009)

Jungle said:


> The other thing that worries me is how do you ensure someone is pre-approved with a mortgage. I can just imagine people putting offers down before checking with the bank if they qualify. Do they normally put that into the clause?


When I sold my condo privately, and accepted an offer, I asked for a high security payment which is held in trust by my lawyer.


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## Berubeland (Sep 6, 2009)

This article explains the beginning of the fight. 

http://www.montrealgazette.com/business/fp/money/CREA+nothing+deal+lawyer+says/3691706/story.html

Lawrence Dale also owns Chestnut Park Realty in Toronto. I'm not sure why they mention he's a lawyer. He's won several lawsuits already against CREA.


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## kcowan (Jul 1, 2010)

This reminds me of when the government forced the banks to open up interac access. They did and imposed a fee to join. This effectively eliminated small operators because only the big guys could afford to join,


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## DavidJD (Sep 27, 2009)

andrewf said:


> If the Big 5 go that route, they may face further competition litigation. That smacks of cartel-like behaviour to me.


mmm more like sour grapes. I am going to take my toys and play in another sandbox. Childish perhpas but why should a homeowner expect to have a real estate industry try to sell his home for nothing? If you are not paying for services from that company - you don't get to use those services. Go use the public MLS.

If you are a serious buyer you will be definately scouring the big-5 site for your dream home. Two tier real estate!


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## andrewf (Mar 1, 2010)

It's tied selling. You shouldn't need to hire a real estate agent to use the listing service. The price of each can and should be split out. That price can be high...


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## mrbizi (Dec 19, 2009)

I read that the same thing happened in the US a few years ago, but even today, 70% of residential real estate transactions are still done through full-service brokers. It's interesting to note that the typical full-service commission rate there is 6-7% (versus 4-5% here in Canada) and has not budged even with the changes made.

It will be interesting to see how this ruling will play out in Canada.


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