CREA and Competition Bureau reach agreement on MLS

A deal was struck earlier this week that will make it easier for seller’s to list their homes on MLS… The Competition Bureau hopes we will see some changes in real estate commissions….click here for the CBC article.

Currently, a seller pays 5% or 6% to sell their home… and that’s been the standard for many years… But with new technology and the internet, we have seen For Sale By Owner companies popping up everywhere.    These companies have not been able to access MLS without employing a realtor.

We all want to save money and pay less… but there is a saying…’you get what you pay for’..    For some, paying a reduced flat fee, and handling viewings, the negotiations, etc, could be worth savings…. but others may not have the expertise, the knowledge or the time to deal with this….

In the end, I think choice is good.   It remains to be seen how many people will move away from the traditional real estate agent and handle things on their own…   Just beware of something that sounds too good to be true…

 

5 Responses to “CREA and Competition Bureau reach agreement on MLS”

  1. MyHomeFinder Says:

    I guess it would only be a matter of time before people realize how much work Realtors actually do! It’s not easy selling a home!

    For all your Toronto Real Estate Needs, visit my website here: MyHomeFinder.ca
    If you are looking for any recent Toronto Real Estate News, check out my blog here: MyHomeFinder.blog.com

    Thanks,

    Vahab

    • SG Says:

      Hi Vahab,

      A good realtor can save you time and money. A bad one can cost you time and money.

      But some people want to try it themselves. At least now, they have a choice.

      I would always use a realtor as I have seen the value and appreciate their service. Just my opinion.

  2. MyHomeFinder.ca Says:

    Hi SG,

    I completely agree with you on finding that perfect Realtor. That’s why I ALWAYS inform my clients/potential clients to interview 3-4 REALTORs before they decide. Also, if your friends have a legit referal (and not just referring for the referal fee), then I strongly suggest you listen to your friends. 9/10 times, you will refer that real estate agent to you family/friends/etc.

    Competition is always good… It’s healthy 🙂

    For all your Toronto Real Estate Needs, visit my website here: MyHomeFinder.ca
    If you are looking for any recent Toronto Real Estate News, check out my blog here: MyHomeFinder.blog.com

    Thanks,

    Vahab

  3. McGerrior Says:

    The current commision charges are ludicrous given the actual amount of time (hours) spent on a sale. Everyone knows this particularily the CREA organization and they will fight and interfere with access to the MLS system untill a proper hearing with specific access to mls agreements are written in to law. Try to list in BC for just the MLS and you will meet with hostility and general non compliance. A seller should be able to just list in the MLS without paying for additional services and this is just not possilbe at this time. All real estate companies want to maintain control of the listing and communication – merely to maintain there unfair monopoly and greed. The current competion bureau effort was a total waste and they will obviously have to enorce the access to mls in the new year to break this unfair competative advantage that CREA holds over Canadians.

    • MyHomeFinder.ca Says:

      Hi McGerrior,

      I can understand, and appreciate, the frustrations that sellers have, when it comes down to the commission… nobody wants to “give away” money. I guess the major difference is in what services you get for your money… don’t let one sour apple ruin the entire batch 🙂

      Also, you need to keep in mind that CREA is running a business… they have done a great job at promoting the MLS system, and making it the #1 place to search for homes. Just look at Google… when you want to search anything, the first place you go to is Google… there are other search engines, but you prefer Google, only because they have successfully sold their image as the #1 source. Just like other search engines, Sellers have other options as well. You can pay that $1000/month for a half page ad in the local Resale magazine… you can pay Google for every click on your ads (costing me about $900/month)… you can place ads in your local news papers… you can sign up for the For Sale By Owner websites… So you def. have options, but because CREA has done a great job on selling the MLS service, most buyers will prefer to choose the MLS system.

      Also, when a buyers sees “For Sale by Owner”… they automatically think “DISCOUNT!”… so you’re not really saving $$… read this piece on my site and see if it makes sense to you…http://myhomefinder.ca/do-it-alone.htm

      In talking to buyers, it appears that they prefer to buy through someone who has an Agent. This gives the buyers a higher comfort level. They have someone they can hold accountable in case something goes wrong. They can rest assured that the REALTOR has done their homework, and have marketed the house at the current market price… Objective Value vs. Subjective Value… The seller may think their house is worth $1Million, but the buyer may think it’s only worth $500K.

      Good Luck,
      Vahab


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