realtor.ca is an advertising web site owned and operated by CREA for it's members.Likewise the various MLS systems across the country are owned and operated by their members for the benefit of the members. REALTORS® are competitive with a variety of business models being available to the consumer from the small independents like Larry to multinational companies. The bottom line is even the the sales people in each office compete amongst themselves for your business.
"REALTOR.ca is simply an advertising web site" says the President of the Canadian Real Estate Association. (see below)
A real estate board's MLS® System is a REALTOR® cooperative and in order to be a REALTOR® member the member must be licensed by a province or territory.
FROM CREA:
Much has been reported in the media about how the Competition Bureau has decided to bring a case to the Competition Tribunal alleging that the rules of The Canadian Real Estate Association (CREA) governing MLS® Systems are anti-competitive, restrict consumer choice and prevent innovation in the market for residential real estate. Let us be very clear: CREA's rules are not anti-competitive, and CREA is confident that the Competition Tribunal will rule against the Commissioner of Competition following a hearing on the merits.
It is important when considering these issues to move beyond the sound bites and consider the facts: CREA currently has more than 98,000 members operating independently across the country, competing on a daily basis for the business of Canadian consumers. There are more consumer choices and more business models today than ever before - and that is a good thing. Consumers can negotiate the level of service they want and the fees or commission they will pay for that service.
What hasn't changed - and cannot change to ensure the integrity of MLS® Systems which operate across the country - is the need for accurate and reliable information to be provided for use in MLS® Systems and a commitment by REALTORS® using MLS® Systems to comply with a code of ethics and regulatory requirements across the country. These basic requirements are necessary for the continued reliability of the MLS® System which Canadians have come to trust for years and years.
The fact that a home is listed on a real estate Board's MLS® System provides an assurance to the public that the information regarding properties listed on Boards' MLS® Systems is accurate and reliable and that there is professional involvement and accountability for that information - all of which protects the interests of homebuyers and sellers. This System provides consumers with not only choice, but also confidence, as they engage in one of the biggest and most important financial transactions of their lives.
The MLS® System is a cooperative marketing network established by REALTORS® several decades ago to help the public buy and sell real estate. MLS® Systems are member-to-member services, paid for by the REALTOR® members of a local Board or Association. It is the local real estate Board or Association that actually administers and operates each MLS® System across Canada. CREA owns the trademark and licenses its use to boards and associations. REALTOR.ca is simply an advertising website operated by CREA and competing with other websites on which properties are advertised by home sellers and REALTORS®.
There have been numerous reports over the last several days that as a result of the Bureau's actions commission rates will come down. The fact is that CREA's rules have nothing to do with commission rates. CREA does not dictate or determine commission rates - or tell its members what business model to choose or how to run their businesses. The mythical "fixed commission rate" does not exist: any transaction between a REALTOR® and a home seller or buyer is subject to negotiation. In CREA's view, consumer choice is a good thing and the market should decide.
CREA is proud of its members and the service they provide Canadians in a competitive environment. There should be no doubt that CREA's ultimate interest and that of its members is to ensure that consumers continue to have choice and confidence in a vibrant, competitive market.
Dale Ripplinger
President, CREA
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Kathy Clulow Sales Representative RE/MAX All-Stars Realty Inc.. Brokerage 905.852.6143
Each office independently owned and operated Not intended to solicit clients already under contract
Hi Larry and Kathy...You make many valid points here, I think the Government is wanting free access and Claim MLS as a public right. We have been giving MLS listing information to Freely and easily for consumers, to the point many do not want to talk to us, because they want to search for properties themselves. How often have you had Buyers and Sellers say they know about this property or make an appointment to see these MLS numbers..is this right, maybe, It's not a good business model to qualify Buyers. Lets just take down the current form of Realtor.ca for now. In Victoria, we built our own Open House web site, Consumers love it and it drives Buyers to our Open House, once the Open House date is finished the Information disappears. There is no need to leave MLS listing up in the form we use now, as you know blogging etc work equally as well and are targeted by the listing agent to homes buyers for that Home, for Consumers to easily find on Google and elsewhere. Just recently I sold a Home doing nothing but Blogging, we had 5 offers, 34 through the Open House and 45 Showings by other Realtors, not one Prospect could tell me they came from Realtor.ca, I'm sure they saw it there, but my blogging was putting the home in-front of them when they Goggled.
You are right Realtor.ca is ours and we should turn it off for the time being, and get the Consumers coming to us again first.
Fred - Larry is opposed to shutting it down and from his perspective I agree. But there are divergent opinions on the subject as Barrie pointed out in his post on this.
Hi Kathy...just circled back, consumers here say our current Realtor .ca is not user friendly. I think we're out of date with the current model, it's time to move forward, and take control of our marketing and information to consumers.
Fred - Barrie felt the same but he says the links he uses still work the way the old site did.
In November 2009 in lovely Victoria, BC at the MTC Forum there were roundtable discussions about REALTOR.ca and other technology issues. They discussed improvements and resources. Here is a link to the document if anyone would like to read it.
http://realtorlink.ca/portal/server.pt/gateway/PTARGS_0_74961_3168842_0_0_18/MTC09_roundtablesessions.pdf
Fred, on REALTOR.ca we have been "freely and easily" advertising our client's properties (listed on our MLS® Systems) to consumers. How can that not be in our Seller client's best interests?
Larry and Fred - In my mind the consumer looses. It will become harder for the small independents like Larry and other smaller brokerages with out the national impact of realtor.ca to compete against the big brand companies when competing for a listing. This reduces the consumers choices.
However the impact on the independents would be reduced if their own web sites ranked well.
Large brokerages have nothing to loose and everything to gain. smaller brokers will have to find another way to combine their advertising dollars to get the impact.
If Realtor.ca were to be shut down
the consumers would do what they use to do
Rely on the the local real estate companies/salesperson
to get their information
be it from the web, or some other means.
Larry -
In regards to your "Seller Clients best interests",
except for the out of town transfers REAL ESTATE IS LOCAL
A listing on a local real estate site here already puts the listing on literally hundreds of local sites, as well as provincial, national and in some cases international sites. The larger companies have their own cooperative listing system plus their corporate sites. Add to this the promotion of the property on other sites such as this one and the combined marketing far outweighs anything realtor.ca does for a local property.
Realtor.ca is just one of the tools or advertising mediums available
It is a convienience to the consumer
provided at the expense of the members.
We all know that tools change as ideas and uses for them change.
If the tool no longer serves the purposes of the one who owns it
they unplug it and put it away.