Mike Montague

My week began as usual with a coffee and a look at the newspaper headlines. A story in the Star about changes to the business of Real Estate to be imposed by the Canadian Competition Bureau had many in our industry buzzing by the end of the day.

The story falsely reported that a settlement between the Competition Bureau and CREA was reached that effectively would open the MLS® system (Realtor.ca - MLS.ca) to the public and it would no longer be a member-to-member system as it has been since its original inception by the Canadian Association of Realtors.

CREA has not reached a settlement with the Competition Bureau and CREA has not changed its MLS® Rules and Interpretations. The papers had it wrong. So much for journalistic integrity.

The Competition Bureau did requested that changes to certain Rules and Interpretations that deal with the acceptance of mere postings on Board MLS® Systems (i.e., where the agreement between the listing agent and the seller is that the listing agent will not provide services other than listing the property on a Board’s MLS® System). The Competition Bureau has said that if CREA does not remove these restrictions the Commissioner of Competition will initiate an application before the Competition Tribunal, which is a quasi-judicial body that can, among other things, make orders requiring or prohibiting certain conduct (e.g., requiring rule changes).

CREA is reviewing the request and any decision will have to meet the approval of its membership which includes all registered Realtors in Canada.

The concerns expressed by Realtors I have spoken with should the MLS® system be thrown open are justified.

Firstly as the system functions now all listings and their data undergo a high level of scrutiny to assure its integrity. If any and all persons were able to submit without this scrutiny the value of the service would not be possible and the courts would be filled beyond capacity from St. Johs to Victoria with buyers and sellers where properties were intentionally or accidentally misrepresented.

Second, it must be remembered that this system started as a paper catalog to allow the public and other agents to see the homes we list for our clients without having to drive up and down every street looking for signs on lawns. It naturally progressed to the Internet much like Sears or Canadian Tire stores have done with their catalogs. Ask yourself how foolish a ruling it would be if the Competition Bureau demanded that either of those stores allow you to post your garage sale items.

Another myth that the media has propagated this week is that Realtor fees are monopolized. This is completely untrue. Every person has the right to negotiate a fee that both parties can agree to. If an agreement can not be reached, there are no shortage of Realtors available to repeat the negotiating with until you are satisfied.

Something to keep in mind is that the agent pockets a much smaller portion of that fee than most would hink and uses his/her portion of that fee to advertise your house. A listing costs the Realtor $1000 on average to list for a 90 day term whether t seels or not. A majority of owners who over price their homes will choose to change Realtors over properly adjusting their price.

Blame the game, not the player for the expenses involved in the business of Professional Real Estate sales. Those costs are what they are, the part you are negotiating is the agent's profit. You are hiring them as much for their negotiating skills as their knowledge of the business. Just the fact that you have read this far separates you from the herd. Here then is an important rule of thumb every seller should, but few ever consider. If the Realtor you are interviewing for the job of selling your home can't even protect their own income in negotiating with you, are you confident they can negotiate the best possible dollar on your home? Don't sell yourself or your Realtor short.

For the time being and given all I have learned this week, it will be a long time if ever before any bureaucracy forces the MLS® system from the reliable data base it is today into being a bulletin board with no accountability.

That is a victory for our industry only because it is a victory for the public. What the events of this week did do was give me and other Realtors an opportunity to hear the concerns and assumptions of the public about the business of Real estate.

Many posted stories on online forums about selling their home themselves and saving the commission fees.

Those who wish to sell their home without the representation of a Realtor are free to do so in Canada. There are private companies that for a fee will put your home on their websites and there are multiple media sources online and in print that will accommodate your advertising.

A little better than half the time a sale will go through without issues, The time it takes to sell private over through an agent is reduced in a heated market such as the Greater Toronto Area continues to experience. Those that did have a successful self sale can appreciate the investment of time and diligence required but what those who do hire a professional are more importantly paying for is the assurance that the deal will go off with little or no hitches or legal challenges and the proficiency and protection that is there should things not go according to Hoyle.

Much like an insurance policy, most days you don't need it but you are glad for it when you do.

For those with the time and ambition to represent themselves in the purchase or sale of real estate in order to try and save the out of pocket expense of hiring a Realtor, the link below will provide you with some good insight into the legalities that will or could come into play.

You'll want to have the knowledge that will save you from - or help you deal with some of the complecations that can arise when selling and buying real estate as the expense of a lawyer for unforeseen issues will quickly defeat your purpose.

Bookmark this link for future reference and if you have any questions I make myself available for consultation. Often a Tim Hortons coffee is all it will cost you.

All the best.

http://www.aaron.ca/columns/toronto-star-index.htm

I took a drive with my friend Deb last weekend and Moe the dog came along for the ride. Moe added an interesting component to the sunday drive. Deb does the morning radio show at KoolFM here in town and....well have a look and listen as she elegantly describes the days events on her show the following morning.

Late this summer on a warm night around a campfire just outside of town, Grant Sauve serenaded the group, strumming out one song after another. He played for us a tune he penned called "Here in Barrie". I shared the story with some members of our City council the next week suggesting they contact Grant about making this an official anthem for our town. I don't know if anything transpired from that but this morning I awoke to the "Here in Barrie" song being played on KoolFM107.5

Hopefully the momentum is underway for Grant and "Here in Barrie"

media release from BDAR President, Wendy Elzner.

MLS® home sales activity reached the highest level ever for the month of September in the area served by the Barrie District Association of REALTORS® Inc. Improving demand and fewer new listings continue to draw down inventories.

According to statistics provided by the Association, MLS® home sales activity totalled 422 units in September 2009. This is a 20 per cent jump year-over-year, and represents the fourth consecutive increase from year-ago levels.

Sales activity was up seven per cent in September from the previous month, the largest increase over this period in six years. The larger than normal monthly increase resulted in a monthly increase of eight per cent in seasonally adjusted sales activity (seasonal adjustment removes normal seasonal fluctuations). Seasonally adjusted activity in September stood 79 per cent above the low in January.

“September was another strong month for sales,” said Wendy Elzner, President of the Barrie and District Association of REALTORS®. “Rebounding demand and fewer new listings continue to draw down inventories and firm up the market.”

The total dollar value of all MLS® home sales amounted to $113.8 million in September 2009, 24 per cent above year-ago levels. This is the largest increase in dollar volume almost two years.

Total MLS® sales activity in the Barrie region numbered 439 units in September, rising 22 per cent year-over-year. The total value of all MLS® properties sold in September 2009 was $117.6 million, 23 per cent above levels from September 2008.

The average price for homes sold via the Association’s MLS® system in September was $269,755, up 3.5 per cent from one year ago.

New residential listings numbered 658 units in September 2009, down 10 per cent year-over-year. This is the sixth consecutive month in which the number of new listings is down from year-ago levels.

The number of active residential listings on the Association’s MLS® system declined 18 per cent year-over-year to 1,830 units at the end of September 2009. This is the fourth double-digit decline in as many months, and the fifth consecutive month in which active listings have dropped from year-ago levels.

The number of months of inventory was 4.3 months in September. This is down from 4.7 months in August, and well below levels posted earlier this year. The number of months of inventory is the number of months it would take to sell current inventories at the current rate of sales activity.

The Barrie and District Association of REALTORS® Inc. covers a geographical area that includes the City of Barrie and part or all of the surrounding townships, including Springwater, Oro-Medonte, Innisfil, Essa, Bradford-West Gwillimbury and Clearview. The Association provides continuing education, Multiple Listing Service® (MLS®), statistical information, and many other services to its members