Jordana Springgay

Jordana is the editor of Real Estate Magazine. You can reach her by email. 

The post Federal court clears way for class-action lawsuit against major brokerages, CREA and TRREB over alleged price-fixing appeared first on REM.

Jordana Springgay

Jordana is the editor of Real Estate Magazine. You can reach her by email. 

The post Hidden demand for housing: Economists estimate up to one million non-permanent residents missing from official stats appeared first on REM.

Jordana Springgay

Jordana is the editor of Real Estate Magazine. You can reach her by email. 

The post How a Toronto realtor capitalized on the demand for Taylor Swift tickets appeared first on REM.

Jordana Springgay

Jordana is the editor of Real Estate Magazine. You can reach her by email. 

The post Keller Williams slashes profit sharing for agents who left for competitors appeared first on REM.

Five years later, all levels of government are addressing the supply crisis in some shape or form and implementing plans to increase housing for Canadians.

Bourque believes CREA’s advocacy played a significant role in that shift. 

“We’ve not only convinced people that there is a supply problem, but we’ve managed to get a lot of new government policy and attention on that fact,” Bourque explains. “Just in the last couple of years, we’ve managed to get political parties to have housing in their platform. Something that hadn’t happened before.”

Bourque’s resignation 

Bourque has shared that his tenure as CREA’s leader will come to an end this December — on his terms. In an interview with Real Estate Magazine, the CEO revealed the reason behind his decision to step down didn’t hinge on a single factor, though he was blunt about the fact that the role is “a very demanding job.”

He explains, “I’ve had a lot of different changes in my career, and the one thing I’ve learned is that whenever you start something new, it’s always a little bit scary. You’re pushed out of your comfort zone, but at the same time, it’s really invigorating to learn something new, to take on a new challenge.” 

Bourque shares his belief that a CEO has a limited shelf life, typically ranging from five to seven years. He feels it’s time for new leadership to bring fresh ideas and drive change at CREA. 

Challenges and achievements

When Bourque first sat down with Real Estate Magazine in Dec. 2018, he had a strategic plan focusing on three pillars: advocacy, Realtor.ca and reputation. Over the past five years (six by the time he leaves the organization), Bourque has operated with laser focus, never veering far from his priorities.

Under the advocacy pillar, he says CREA successfully raised awareness about the housing supply issue — particularly its impact on aspiring millennial homeowners. 

Bourque highlights the significance of municipal barriers to housing supply while emphasizing the federal government’s role in addressing the issue. He explained that by funding transit systems, the federal government could influence urban development. 

Bourque says it was CREA’s suggestion to link transit funding with housing proximity, “Before we came up with that suggestion, it wasn’t on the government’s radar.”

Realtor reputation

Enhancing realtor reputation became another critical focus. The organization transitioned from a marketing campaign solely focused on the risks of not using a realtor to a more comprehensive approach. 

Through targeted advertising, CREA emphasizes the specific values and benefits that realtors provide to clients. By implementing scientific measures to assess behaviour changes resulting from their marketing efforts, Bourque says the association witnessed positive shifts in the perception and understanding of the profession.

He also addressed the issue of professionalism within the industry, saying, “We believe that it’s a privilege to call yourself a realtor. Not every real estate agent is a realtor. And if you want to call yourself a realtor, it means that you have to follow the Realtor Code.”

The CEO explains CREA implemented measures to enforce the Realtor Code, ensuring that agents adhere to the highest ethical standards.  

Realtor.ca

Bourque recalls an incident at a conference shortly after he started his role as CEO. He remembers a speaker mentioning him by name and expressing concerns about the potential downfall of Realtor.ca due to new competition entering the market. 

“Five years later, we’ve not only survived, but we’ve become the number one platform. And it’s because of a lot of the great changes that we’ve made.”

Realtor.ca advancements under Bourque’s leadership include incorporating sold data into listings, enhancing the consumer experience with features like walking scores and school catchment areas, and prioritizing mobile accessibility; the CEO affirms Realtor.ca solidified its position as the go-to platform for consumers. 

“We can’t rely on member dues to fund what is essentially an extremely valuable technology company.”

– Michael Bourque, CREA CEO, on Realtor.ca

Amidst the uncertainty of Realtor.ca’s future, Bourque remains optimistic that CREA’s partner boards and associations will rally behind the transformation into a for-profit entity during the upcoming vote in October.

“Realtor.ca has the opportunity to create a lot of income for itself, which needs to be reinvested in the platform so that we can continue to maintain that leadership position,” the CEO emphasizes. 

“We can’t rely on member dues to fund what is essentially an extremely valuable technology company.”

Patrick Pichette, vice president of Realtor.ca, recognizes Bourque’s dedication to the platform.

“Michael consistently empowered our team through his leadership and hard work…he was the driving force behind many initiatives that support our members in their daily business activities,” Pichette said in an email. “His leadership style and friendship will be missed by everyone in the office.”

“Michael tries to get the most out of everybody; he really allowed the senior staff to grow.”

– Jason Stephen, 2019 president, CREA

Realtor Jason Stephen, who served as CREA’s 2019 president, echoes Pichette’s praises of Bourque’s leadership style, highlighting his quiet demeanour and sense of humour helped maximize the potential of the staff.

“Michael tries to get the most out of everybody; he really allowed the senior staff to grow,” Stephen explains.

Stephen also acknowledged the CEO’s leadership in implementing swift changes. Notably, he says Bourque led the transition to virtual annual general meetings and other virtual events, adapting quickly to the challenges posed by the pandemic, adding, “He has navigated our association through some very difficult times, there’s no question.”

“You learned a lot about leaders during that time, and he was a very humane leader,” says CREA’s Vice President of Advocacy, Linda Kristal. “I think that helped everybody perform under such an extreme circumstance.”

She emphasizes the importance of message discipline, a lesson she learned from Bourque, in effectively engaging with the government. Kristal recognizes Bourque’s role in shaping the conversation and focusing government stakeholders on the supply crisis.

“That’s a lesson that will carry forward through my career because it was that message of discipline when you’re trying to get attention.”

Bourque’s legacy, according to Kristal, includes a disciplined and data-driven approach, encouraging the team to raise the bar in their work. Within the industry, his legacy lies in changing the conversation in Ottawa to prioritize supply and promoting an all-hands-on-deck approach to the housing crisis. 

“We need to move at the speed of business. And often, we don’t even move at the speed of government.”

– Michael Bourque, CREA CEO

Bourque answers frankly when asked about some of the industry’s more pressing challenges: “I think the industry itself is often at loggerheads. Sometimes we spend too much time talking to one another, and sometimes we don’t talk enough.” 

He emphasizes the need for faster decision-making and a greater focus on collaboration within the industry to keep pace with the evolving landscape.

“We need to move at the speed of business. And often, we don’t even move at the speed of government, so we need to learn to move more quickly to achieve a consensus and move forward. Because there is a lot more competition coming into real estate.”

Evolving perceptions 

Reflecting on his initial perceptions when he assumed the role in 2018, Bourque noted the nature of organized real estate. He says, “It’s much more complex and political than I would’ve expected, but that’s made it a very interesting challenge these past number of years.”

He’s also observed that many realtors primarily focus on serving clients and are often unaware of the impacts decisions made by boards and associations have on their business. 

“We have to try and engage all of those members…they need to be involved.”

The final months

With the end of his tenure approaching, Bourque shares his priorities for his final months in the role. He emphasizes the importance of initiatives like the future of Realtor.ca and ongoing advocacy efforts to address the supply shortage in the housing market.

As the CEO prepares to pass the baton, Bourque urges his successor to prioritize effective communication and engagement, adding, “It’s a dynamic membership, so getting them to pay attention is sometimes hard. And at the same time, you need to make sure that your counterparts across the country are aware of what you’re doing. “

He emphasizes the significance of maintaining strong relationships with colleagues and ensuring that the efforts of CREA are well-known and understood by its members. Bourque expressed confidence in the team at CREA and encouraged his successor to trust their expertise while exploring opportunities in areas such as environmental sustainability.

The future leader of CREA will face the challenge of navigating a rapidly changing landscape while building upon the achievements and lessons learned during Bourque’s leadership.

And as for his future, Bourque and his wife are celebrating their 35th wedding anniversary in December — he says they’ll mark the occasion with an extended trip to Europe. Beyond that milestone, he anticipates embarking on a new endeavour with the hopes of starting “something new” in 2024.

Jordana Springgay

Jordana is the editor of Real Estate Magazine. You can reach her by email. 

The post CREA CEO Michael Bourque to step down appeared first on REM.

The not-for-profit corporation is calling for province-wide access to MLS data and will be hosting an all-day meeting in Toronto on Fri., May 19, to bring boards together to find a solution.

Allison McLure, executive director of ITSO, says, “(Realtors) are licensed in the province of Ontario, so realtors should have access to all data in the entire province, full stop.”

ITSO currently manages MLS listing content for 18 member boards and associations in Ontario while providing access to 24 associations through data-sharing agreements.

Fragmented systems and rising costs

McLure adds that in order for realtors to fulfill their fiduciary duties to their clients, “it’s not good enough to have 50 per cent of listings or 90 per cent of listings. You have to have all of them.”

McLure points out that the Toronto Regional Real Estate Board (TRREB) and Ottawa have their own regional systems, while Chatham-Kent, Sarnia-Lambton, and Windsor-Essex operate separately. She adds that despite some reciprocal agreements, collaboration beyond individual groups can be limited.

Realtors, as a result, are burdened with paying additional subscriber fees, interboard fees or obtaining dual memberships to access data outside their home boards, and the costs continue to rise. But the issues go beyond the financial, McLure affirms.

The ITSO executive says consumers often turn to virtual office websites or platforms like Realtor.ca because they perceive them to offer a more comprehensive range of listings compared to what their realtor can provide through an MLS system. McLure believes this reflects negatively on the entire real estate industry and insists that realtors should be able to offer their clients access to all listings.

“Without access to a comprehensive data set for the entire area, realtors face challenges when it comes to pricing properties and conducting comparative analyses.”

-Tyson Hinschberger, president, GDAR

Tyson Hinschberger, president of the Guelph and District Association, an ITSO member association, acknowledges the benefits of accessing data in different municipalities. However, Hinschberger notes that fragmented associations across the province impede realtors from easily transacting in different markets.

He adds, “Without access to a comprehensive data set for the entire area, realtors face challenges when it comes to pricing properties and conducting comparative analyses.”

Ken Dekker, president of the Ottawa Real Estate Board, says that while his board is not currently an ITSO member, he’s in favour of an agreement that gives Ontario realtors access to province-wide data. 

Dekker explains, “Our responsibility to a client is to find any property that may suit their requirements that they’ve given us. And if that requires being members of multiple boards to search for the data, then that’s something under our fiduciary responsibility we need to do.” He is confident that one source of data would solve that issue. 

The Toronto Regional Real Estate Board (TRREB) operates its own MLS and has partner boards in the GTA and surrounding area. When contacted for this article, a representative for TRREB stated that the board has no comment at this time. However, they confirmed their attendance at the upcoming meeting.

In total, McLure confirms representatives from 28 real estate boards and associations have agreed to attend the meeting out of the province’s 34.

Source: ITSO

Challenges and complexities

Different boards and associations in Ontario hold varying philosophies when it comes to data sharing, McClure explains. Some are more restrictive, while others are open to the concept.

Reaching an agreement among the boards for data-sharing is the initial hurdle, with several more challenges to overcome before implementation.

McLure highlights the complexities involved in opening up access to data across different real estate systems. Aligning data from different MLS systems poses technological challenges that cannot be resolved immediately, according to McLure.

Dekker also raises concerns about data security. He emphasizes the need for data agreements to prevent misuse or unauthorized access, as the data is owned by the local boards.

Enlisting experts to help foster collaboration

To facilitate Friday’s session, ITSO has enlisted Matt Fullbrook from Fullbrook Board Effectiveness. The meeting will also feature a presentation by Sam DeBord, chair of the Real Estate Standards Organization.

Hinschberger is optimistic about the potential for an open and productive discussion between stakeholders. He adds, “In the spirit of collegiality and collaboration for the benefit of the consumer, I think it’s good to have those dialogues and see if we can find common ground on some of the issues that may have plagued things in the past.”

The meeting is a step in addressing the fragmented access to MLS data in Ontario. McLure says ITSO’s goal is to create a solution that allows realtors to access comprehensive data sets across the province. 

By removing the barriers and limitations posed by regional systems, she believes realtors can improve their bottom line and better serve their clients.

Jordana Springgay

Jordana is the editor of Real Estate Magazine. You can reach her by email. 

The post ITSO hosts meeting to tackle fragmented MLS data access in Ont. appeared first on REM.

The policy will require agents to list properties on MLS within three days of marketing them publicly, making it an ethical obligation. 

CREA defines public marketing as any type of marketing of a listing to the public or to anyone not directly affiliated with the brokers and licensees of that brokerage. One-to-one marketing and marketing within the listing brokerage will still be permitted. Over 82 per cent of voting delegates supported the change, which comes into force on January 3, 2024.

Some realtors have raised concerns about how the policy will impact their businesses and the privacy of their clients. Jill Oudil, CREA’s immediate past chair, addressed some of these concerns in a recent phone interview with Real Estate Magazine. Oudil stated that the new policy was developed in response to growing concerns among local boards about the rising misuse of marketing tactics that were keeping listings off MLS.

This interview has been edited for length and clarity.

Real Estate Magazine: Let’s start with the journey from 2021 to the vote on the amendment to the Realtor Code at the AGM. What concerns did you hear from boards and associations, and how did CREA respond?

Jill Oudil: The journey began when various boards and associations approached us with different issues they were facing in different parts of Canada. They expressed concerns about limited marketing tactics and hidden listings from clients, among other things, and requested that we find a way to help maintain professionalism, work for the customer and the consumer, and serve our clients. We were already aware of similar issues in the United States, where NAR had implemented a clear cooperation policy a few years earlier for similar reasons. We looked into what the NAR had done and took inspiration from their policy as we sought to address the concerns brought to us by the boards and associations here in Canada.

Real Estate Magazine: The policy that will be implemented next year— how is it different from the policy that was introduced last fall?

Jill Oudil:  We engaged with boards and associations across the country to understand the biggest concerns and what didn’t quite work. After consultation and engagement with the membership, we altered the policy to allow one-to-one marketing of exclusive listings to realtors from all brokerages instead of just within the same office. Additionally, the policy now includes a disclosure about the benefits of using MLS if you decide not to list on it. These were the main shifts in the last version of the policy, which was developed through a collaborative process with our stakeholders.

Real Estate Magazine: Who made up the working group?

Jill Oudil: Many of the original working group were CEOs from across the country. They’re involved with all the issues in their boards and very well aware of the situation. Member surveys and regional consultations were conducted to gather feedback from boards of directors and associations, who are all realtors. We commissioned a white paper. Open forums, an EA seminar, and a recent session in February were also held with a wide mix of leaders, from brokers to realtors to presidents. The group did extensive work to narrow down the top options to ensure the best way forward for the industry and consumers.

Real Estate Magazine: Apart from the complaints CREA received from some boards, what data was there that showed coming soon and exclusive listing marketing tactics were an issue?

Jill Oudil:  I don’t know if I would use the word complaints, but brought to our attention, perhaps. The increase in the availability of social media highlighted an unfair advantage that some clients were receiving, which prompted us to ensure fair competition in the industry. It is essential that all buyers have equal opportunities to access all listings available for sale and that exclusive listings are used solely for their intended purpose. While there may be rare circumstances where you may not want to make your listing public, such as confidential listings, it’s crucial to maintain transparency and fairness in the industry. Boards and associations brought this issue to our attention since they’re responsible for addressing complaints and enforcing ethical standards among realtors. Through extensive consultation and engagement with our members, we worked to develop a policy that upholds high ethical standards and provides fair competition for all parties involved.

Real Estate Magazine: It did seem that there was an increase in exclusive listings during the pandemic, presumably due to homeowners’ concerns about having many people visiting their properties. I’m curious about whether this policy is solving a problem that may not be as prevalent as it was during the height of the pandemic. Additionally, I’m interested in hearing your thoughts on how the industry may respond to similar situations in the future and whether different strategies can be employed.

Jill Oudil:  First of all, I hope we never find ourselves in a similar situation.

Just to add to that, if there was a perception that too many people would be going through a home, that’s when a homeowner would need the assistance of a realtor to ensure that they were protected in a way that made them comfortable. As a working realtor at the time, I was actually quite busy. In fact, the more people that could be brought through a home in a short amount of time, the better it was for using MLS and for realtors to work with qualified buyers from their client’s homes. Some clients needed more privacy, while others didn’t care, but I always made sure to protect my clients by ensuring everyone was outside the house at that time. During COVID, there has been a shift in what is necessary, but whatever made the client comfortable was what we did, whether it was ensuring everyone wore a mask and sanitized their hands or airing out the house. I wouldn’t say that people had fewer people coming through their homes necessarily, but realtors could make a bigger effort to ensure that only qualified buyers entered the home instead of just holding open houses for anyone to come in and snoop around for decorating ideas.

Real Estate Magazine: Some boards and associations already have similar policies in place. Why did this end up being a CREA policy as opposed to a policy implemented by boards and associations?

Jill Oudil: Our policies will be implemented by boards and associations, but they can make them stricter than the minimum standards. For example, Quebec has rules similar to ours, and in Newfoundland, an MLS number is required even to put a “for sale” sign out. Our goal is to set the minimum standard for the protection of consumers and to show regulators that we are doing our best to protect them. Unless there is a special circumstance, consumers should be able to see all properties for sale. As an organization, it is our duty to identify major issues affecting our profession, realtor reputation, and clients while maintaining high ethics.

Real Estate Magazine: How will CREA support boards in the implementation and policing of the Realtor Cooperation Policy?

Jill Oudil: In organized real estate, boards and associations are obligated to enforce the realtor code to keep ethics high and prioritize consumer needs. While each area may have its own specific practices for enforcing the code, a lot of it comes from being notified of violations. The new policy doesn’t change anything for them; it simply adds another potential violation to the list that they already regularly enforce.

Real Estate Magazine: Do you have a general idea of how many of the 75 boards voted in favour of the change?

Jill Oudil: I don’t have the exact number of boards that voted in favour, just the percentage. This information isn’t typically provided, but I can inquire about it. I believe that the percentage of votes in favour, nearly 83 per cent, is more meaningful because it represents the percentage of realtors covered by those boards and associations. For example, TRREB equates to 30 to 40 per cent of that vote. 

Real Estate Magazine:  Were you surprised by how much support the amendment received?

Jill Oudil: I was hoping for a high level of support, so I wouldn’t say I was surprised. I knew that, as a whole, the amendment had a lot of support. It shows that we’re all on the same page, which will help enforcement and everyone work together. It’s great to see that realtors, boards and associations are supporting us and our clients in doing our job, which is crucial. Although there are people who may have questions or are against it, I’m thankful for the overwhelming support we received

Real Estate Magazine: How would you respond to realtors who claim that the policy does not accurately represent the opinions and feelings of the real estate industry?

Jill Oudil: I think there’s a very small percentage who are upset with the policy. This policy is meant to ensure fairness for our clients and consumers, which is critical to our industry. By having access to all listings, buyers and sellers are better served, and realtors are able to provide accurate assessments of property values. While it may not be perfect for everyone, the benefits are substantial. It’s natural for the minority to be vocal on social media, but there are many realtors who are content with the policy and not engaging in social media discussions.

Real Estate Magazine: Did CREA consider creating separate rules for “coming soon” and “exclusive” listings? Some have flagged that these are different issues. For example, one realtor described working with a client whose home requires a lot of work. In that case, a “coming soon” listing may work better as it generates interest and allows buyers to make informed decisions about the home’s state.

Jill Oudil: I can tell you that the working group thoroughly explored every possible scenario, including the one you mentioned about separate rules for coming soon and exclusive listings. There was no lack of digging into every likely scenario. And I would say that the one that you just mentioned certainly could happen. While it’s true that coming soon can drum up interest for a home that needs work, putting it on the market weeks earlier may not be as effective because active buyers may have already found homes. The wish of all involved boards and associations was to have one set of rules for both types of listings, as it’s the cleanest, easiest, and works best for everyone.

Real Estate Magazine: A few have flagged that this new policy limits consumer choice and could be considered anti-competitive. 

Jill Oudil: We see that this helps all consumers have the same chance to see listings, which is important. Exclusives are still allowed, and that’s the message we need to make sure people understand. The true use of an exclusive is when you don’t want public marketing because you need to keep it private for some reason, which is a very unusual circumstance. It’s in your client’s best interest to ensure that all clients see the listing, as that will get your client, the seller, the best terms and certainly the best price. Having the data for both listing properties as well as for your buyers is important to assist them in assessing a property properly. The cooperative real estate system is what makes the highest amount of information available for all clients’ benefit.

Real Estate Magazine: Did CREA consider potential loopholes that might be exploited? One example given was terminating an exclusive listing every three days to avoid having to put it on MLS.

Jill Oudil: I think there will be a learning curve. In the U.S., realtors have to have it on MLS within one day of public marketing. I hope realtors across the country will embrace the reason for the policy in doing what’s right for the cooperative system and keeping MLS strong.

Real Estate Magazine: Another realtor flagged that the Realtor Cooperation Policy could create opportunities for unlicensed companies to fill the void left by licensed realtors unable to trade exclusive properties in the way they did previously. Was the possibility considered, and what might the impacts on the industry and consumers be?  

Jill Oudil: There have been a lot of discussions about different possibilities throughout this process. However, I believe that, ultimately, realtors who are dedicated to serving their clients and providing them with the best opportunities will need a system that includes all the listings and provides them with accurate pricing data for homes. This is why we have the MLS system. I share my data with my colleagues to ensure that we all have access to the same information and can accurately price homes for our clients. It would be difficult to leave a system that offers all these benefits to our clients. While we can’t predict the future, I know the value of the MLS system, and I would never want to be without it, as it’s essential for me to serve my clients effectively as a realtor.

Real Estate Magazine:  If significant issues arise or unintended consequences arise, is the board open to amendments to the Realtor Cooperation Policy?

Jill Oudil: We’ll have to see what happens. That is not the intention. So it would have to be something big enough that we would need to go back to the policy again. But at this time, the country has spoken, and this is the policy that we are adopting.

Real Estate Magazine:  As a realtor, can you empathize or understand some of the concerns others have raised?

Jill Oudil: I’ve been a realtor for 31 years. I’ve never had a situation where it didn’t benefit my client to list it on MLS. Now, I’m not saying that that situation can’t happen, but I think the true need for that situation is extraordinarily rare that you would want to hide your property for sale from other realtors that have clients that wanna sell it. I know the benefit of MLS. So as a realtor, I would always want to use the MLS system, and I would want to put back into that system and share with my fellow realtors all the information that I have access to, that I have collected so that they can do their job for the clients as well.

Real Estate Magazine: Anything else you’d like to add?

Jill Oudil: I’m excited that we had such immense support for the policy. I’m very grateful that it was so high, and there’s no doubt that this is the right policy going forward.

Jordana Springgay

Jordana is the editor of Real Estate Magazine. You can reach her by email. 

The post CREA’s Jill Oudil addresses concerns about Realtor Cooperation Policy appeared first on REM.

QUICK HITS

• More than 82% of voting delegates voted in favour of ammending to the Realtor Code to include th new Realtor Cooperation Policy.
• Under the new policy, which comes into force in January 2024, realtors must place their listings on MLS within three days of publicly marketing a residential property.
• The policy defines public marketing as representation or marketing of a listing to anyone not directly affiliated with the listing brokerage/office in a business capacity, but direct one-to-one communication with an individual or agent is not included.

The Realtor Cooperation policy received overwhelming support from voting delegates at CREA’s annual general meeting in Ottawa on Tuesday afternoon.

According to sources, more than 82 per cent of voting delegates from the country’s boards and associations voted in favour of the amendment that will limit how exclusive listings can be marketed.

The policy, which will come into force on Jan. 3, 2024, will make it an ethical obligation for realtors to place their listings on MLS within three days of publicly marketing a residential property.

Christian Twomey, chair of the Calgary Real Estate Board (CREB), confirmed his board voted against the amendment, adding CREB viewed it as CREA stepping into Alberta’s jurisdiction.

“Concerns (from CREB members) were specific to, number one, how are we going to enforce it and the challenges around enforcing it and ensuring that realtors have the ability to continue with their business practices.”

Under the new policy, if a seller decides to forego placing their listing on MLS, they must provide written confirmation of this decision to the listing agent, including a specific instruction not to engage in public marketing of their property. 

Paul Baron, president of the Toronto Regional Regional Real Estate Board, previously expressed his board’s intention to vote in favour of the policy.

He explained, “When an agent goes in to do a listing presentation, the consumer can absolutely choose to list it exclusively or choose to list it on MLS. They don’t have to opt-out. They have that choice. The choice is not taken away.”

Public marketing vs. one-to-one

The Realtor Cooperation Policy explains public marketing as the representation or marketing of a listing to the public or anyone not directly affiliated with the listing brokerage/office in a business capacity but does not include direct one-to-one communication with an individual or agent outside of the listing brokerage.

Commercial property listings, new construction listings in developments with multiple properties or units and rentals are exempt from the policy.

Background

Tuesday’s vote comes after months of consultations with boards and associations. The original policy, proposed last fall, received significant pushback from the industry. 

CREA’s board of directors approved a revised version of the policy in March.  

Twomey explains, “The policy today is better than it was in the fall in that it still does allow for exclusive listings provided they are marketed through one-on-one communication.”

Toronto-based real estate agent Penny Dutkowski shared her worries in a comment on a previous article. She stated that if a private listing cannot be marketed publicly, it is highly likely to fail.

She continues, “The decision to back this fails to recognize that not all sellers want their property’s listing broadcast widely. The purpose is to force sellers onto the MLS—there is no justifiable reason otherwise for this unfortunate, myopic, industry-selfish move.”

Enforcement 

Enforcement will fall to local boards and associations, Twomey says. When asked if eight months is enough time to create new rules and guidelines on a local level, the CREB chair says, “We’ll do our best.”

He adds, “The Realtor Code continues to be an important standard for our members. We’ll back what the voting delegates have decided.”

Editor’s note: This article has been updated from its original version to include additional information and updated details.

Jordana Springgay

Jordana is the editor of Real Estate Magazine. You can reach her by email. 

The post UPDATE: Realtor Cooperation Policy amendment passes at CREA’s AGM appeared first on REM.

QUICK HITS

• Boards and associations will vote on a proposed amendment to the Realtor Code at CREA’s AGM in Ottawa on Tuesday, which would make it mandatory for realtors to place their listings on MLS within three days of publicly marketing a residential property.
• The policy explains public marketing as the representation or marketing of a listing to the public or anyone not directly affiliated with the listing brokerage/office in a business capacity but does not include one-to-one direct communication with an agent unaffiliated with the listing brokerage/office.
• While some in the industry are concerned about unintended consequences and limitations to consumer choice, others, including TRREB, support the amendment.

Canada’s real estate industry is gearing up for CREA’s annual general meeting (AGM) in Ottawa, where proposed changes to the Realtor Code will be voted on Tuesday. 

If passed, the amendment, known as the Realtor Cooperation Policy, would make it an ethical obligation for realtors to place their listings on MLS within three days of publically marketing a residential property.

The amendment defines public marketing as any representation or marketing of a listing to the public or anyone not directly affiliated with the listing brokerage/office in a business capacity.

“I think there are a lot of misunderstandings of the policy and what it means,” says Paul Baron, president of the Toronto Regional Real Estate Board (TRREB). 

Baron expressed TRREB’s support for the amendment and was emphatic that this is not a ban on exclusive listings, “It just prevents them from publicly marketing a property if they’ve got it listed exclusively.”

“The idea of realtor cooperation is not banning exclusive listings. It is changing the rules so that when you market something publicly that then you’re going to get involved in the cooperative and that you’re going to put the property on MLS.” 

– Paul Baron, TRREB president

He explains, “When an agent goes in to do a listing presentation, the consumer can absolutely choose to list it exclusively or choose to list it on MLS. They don’t have to opt-out. They have that choice. The choice is not taken away.”

Under the proposed changes, if a seller decides to forego placing their listing on MLS, they must provide written confirmation of this decision to the listing agent, including a specific instruction not to engage in public marketing of their property.

Commercial property listings, new construction listings in developments with multiple properties or units and rental property listings are exempt from the policy.

“The idea of realtor cooperation is not banning exclusive listings. It is changing the rules so that when you market something publicly that then you’re going to get involved in the cooperative and that you’re going to put the property on MLS.” 

The proposed amendment emphasizes that using limited exposure marketing tactics diminishes the value and benefits that MLS provides to realtors and consumers.

“It is our position that the proposed Realtor Cooperation Policy is an overreach of CREA’s authority. The core elements of the transaction need to be left to boards and regulators.”

– Statement from the Calgary Real Estate Board

In a statement to Real Estate Magzine, the Calgary Real Estate Board (CREB) says it does not support the proposed amendments, calling it an “overreach” of CREA’s authority, adding core elements of the transaction should be left to boards and regulators.

CREB’s statement goes on to say, “Although the intent of Realtor Cooperation is valid at its core, including the work to ensure an effective cooperating selling system, we have concerns about the potential for unintended results of the proposed policy change and the potential for it to limit consumer choice. These are important changes for our industry that require further consideration.”

Alan Tennant, president and CEO of CREB, was part of the original CREA working group that recommended a previous version of this policy in 2022.

REM’s request for an interview was declined by a CREA spokesperson, who shared that the association will comment following Tuesday’s vote.

Background

In 2021, CREA began a review after some industry stakeholders expressed concerns about the increase in “coming soon” marketing tactics, where a property is marketed narrowly to a select group without being made available to others. 

CREA previously told REM those concerns led to the establishment of a working group, which recommended a cooperation policy to the CREA board in Aug. 2022. 

After significant pushback from many in the industry in Oct. 2022, the board agreed to bring the policy to a vote at the 2023 AGM. CREA’s board approved the revised version in March.

Enforcement

If passed, the proposed amendment will come into force on Jan. 3, 2024, and enforcement will fall to local boards and associations. Baron says TRREB will create rules and guidelines within its professional standards department to monitor and enforce the new policies.

The TRREB president also confirms the board will vote in favour of the amendment and is confident it will pass on Tuesday.

He adds, “I think that it will take some time for everybody to understand the policies and how it affects their business and how they go about things.” 

Jordana Springgay

Jordana is the editor of Real Estate Magazine. You can reach her by email. 

The post CREA’s vote on amendment to Realtor Code could limit use of ‘exclusive listing’ appeared first on REM.

Wilson is best known for the yoga pants that revolutionized athletic wear. He is, after all, the billionaire founder of Lululemon and while no longer CEO, he remains the apparel company’s single largest shareholder. The outspoken mogul aims to replicate his success in the athletic wear industry in real estate.

The burgeoning value of his sprawling Vancouver estate makes local news headlines annually, but apart from that, little is known about his billion-dollar real estate portfolio. He sat down for his first-ever interview on real estate with Daniel Foch and Nick Hill, hosts of the Canadian Real Estate Investor podcast. Wilson was joined by David Ferguson, CEO and co-founder of he and Wilson’s real estate investment, development and management company, Low Tide Properties. 

Ten years ago, Wilson says he and his family, alongside Ferguson, decided to invest 65 per cent of their wealth into real estate in three cities by 2030. The CEO explains, “Our other businesses have done so well that, you know, we haven’t reached that percentage… We’ll probably be lucky to get to 20 (per cent). And that’s buying almost as fast as we can.”

A decades-old friendship

Wilson and Ferguson were introduced through a mutual connection at a party in Calgary 38 years ago, and after both spent time in Toronto, the pair eventually reunited in Vancouver.

David Ferguson, co-found and CEO of Low Tide Properties, image via holditall.com

Wilson chuckles, “He’s very measured in what he says; I’m very unmeasured in what I say. So we were kind of a perfect combination.” 

Ferguson refers to himself as a “career real estate guy,” adding, “That’s all I’ve ever done. That’s all I’ve ever wanted to do. I love it.” After cultivating a friendship, the duo found their way into business together.

Wilson adds, “I recognized that he was probably the smartest guy in the world. And I’m maybe not as smart as Dave, but I had lots of money. So it was a perfect combination.”

Low Tide Properties 

Low Tide Properties was founded in 2011; the pair’s love for Vancouver and desire to reinvest in the local economy drives the company’s success. Ferguson explains that the region’s proximity to the mountains and Pacific Ocean and limited land supply has made it a popular destination for international immigrants and a favourable location for investment. The company purchases property in emerging neighbourhoods, not downtown, but near the city’s core, aiming to influence or be the catalyst for change in the area. 

He adds, “We know the city unbelievably well in the areas we invest. I know every single block; I’ve probably gone through half the buildings, maybe more. We’ve made offers on lots. So we really, really understand, we understand what block we want to be in. We understand what side of the street we want to be on.”

The company offers “creative office spaces,” catering mainly to smaller and local businesses. The company’s website boasts 30 properties in Vancouver alone, ranging from office space to laboratories and retail to multi-family. Wilson emphasizes the importance of understanding the target audience, focusing on what kind of lifestyle the future employees of the tenants want and appealing to them. The pair staunchly believe treating tenants well is crucial to their success.

“Your tenant is your customer. It’s your only customer, so you need to treat them really well…it’s a fantastic business. You have a customer that’s going to pay a fixed amount of money every single month for your product,” Ferguson notes.

In 2017, the founders diversified their portfolio by investing in Seattle’s multi-family rental market, aiming to avoid putting all their eggs in one basket. Wilson says they’re looking to add a third city to their portfolio, “We love places where land is constrained, and we really understand it. So we’ll probably look for somewhere like that.”

The company’s long-term investment strategy emphasizes holding onto properties for at least 25 years, with Wilson advocating for a 100-year strategy. He puts it simply, “We’re a long-term real estate investor.”

When asked about the real estate market’s tumultuous year, Wilson says, “Inside of downturns, there are opportunities, and you have to have enough cash on the sideline in order to take advantage of that.

Investment strategy

Wilson and Ferguson have built an expansive real estate portfolio with Low Tide Properties; they shared their top three investment strategies that have proven to be effective.

Location, location, location

Location is the most important factor to consider when investing in real estate. According to Ferguson, “You can change almost anything, everything about a property other than its location.” Therefore, one should look for a location where the economy is growing, jobs are being added, and there is limited real estate development. 

Boots on the ground

Conducting on-the-ground research by talking to people can provide useful insights to identify potential investment opportunities. 

Wilson suggests asking people about the top restaurants, coffee shops, and stores in the area and where they would like to see a second location of their favourite shops. This can help investors understand the demand for real estate in that area. 

Cultivate partnerships 

For investors with limited capital, partnerships can be an effective way to lower risks and increase knowledge. Wilson suggests finding partners who can bring different skill sets to the table, such as finance, property management and tenant relations. 

Through partnerships, investors can learn from each other and make more substantial investments with reduced risk. 

Investing in real estate requires building a team of experts with different skill sets. As Wilson notes, “There’s very little that you know, and your capital is limited” when you start out, but partnering with others who can complement your skills can help you achieve success.

“A leader is someone who creates a future that would otherwise not have occurred.” 

          – Chip Wilson

While Wilson and Ferguson are fiercely passionate about real estate, they recognize the importance of leaving the world a better place than they found it. 

“A leader is someone who creates a future that would otherwise not have occurred,” Wilson says. “We both believe that if we complain, we can complain a couple of times, but then we’re in action to do something about it.”

Ferguson adds that he is very conscious about what he does and focuses on enjoying his life to the fullest. “Who we do business with, who our employees are, everything is a very conscious choice to maximize the enjoyment of our lives.”

He finishes, “I think when you’re really enjoying your life and you’re happy, you will do much better than when you’re miserable.”

Listen to Foch and Hill’s full interview with Chip Wilson and David Ferguson: 

Jordana Springgay

Jordana is the editor of Real Estate Magazine. You can reach her by email. 

The post Inside the real estate empire of billionaire Chip Wilson appeared first on REM.