The Canadian Real Estate Association (CREA) recently released its latest episode of its REAL TIME podcast, featuring yours truly and CREA CEO, Janice Myers. On it, we discussed the draft business case CREA released earlier this summer that outlines a path forward for REALTOR.ca as a taxable entity and the incredible opportunity that could provide.

Here are two key takeaways of our podcast conversation:

1. I fully acknowledge and understand any concern and hesitation that’s been shared with us about the proposed transition — REALTOR.ca is our most valuable asset. But I firmly believe our biggest risk is inaction. Let’s seize this incredible opportunity to ensure REALTOR.ca continues to be the trusted platform for all things Canadian real estate — with REALTORS® planted firmly at the centre of it all.
2. If you haven’t already, please read the draft business case, which can be found at CREA.ca/REALTORinc.

REALTORS® have seen firsthand how REALTOR.ca has paved the way for how real estate is marketed and consumed in Canada. The platform has become a cornerstone of our industry, providing unparalleled value for both our business and consumers.

REALTOR.ca has evolved from a public-facing website to a comprehensive platform with integrated components, like native apps for iOS and Android for both REALTORS® and consumers, and the REALTOR.ca Data Distribution Facility (REALTOR.ca DDF®), which facilitates the consistent and accurate distribution of real estate listings across 10,000 advertisement, franchisor and member websites.

We are the proud owners of a REALTOR®-centric tool that commands more than 50 per cent market share¹ in Canada because of the trust and appreciation of the consumers who turn to it. As a business tool, there’s really no comparison to the reach and exposure it provides.
How we use the internet has changed dramatically in the last decade. You could even say that about five years ago. To help ensure REALTOR.ca’s future success, we need to change our approach to maintaining such a powerhouse platform.

Year after year, competition in the tech landscape grows, consumers expect more and operational costs increase. The status quo isn’t sustainable.

CREA is proposing it turn REALTOR.ca into a taxable, wholly owned subsidiary as both a financial necessity and a strategic move to secure REALTORS® at the centre of Canadian home buying, selling and renting journeys.

 

Why change is essential

 

Currently, REALTOR.ca is operated by CREA under its not-for-profit status. While this structure has served us well, under this model, REALTOR.ca isn’t able to pursue new revenue streams or engage in certain business-related activities. Transitioning to a business model would give us the ability to unlock that potential, better positioning us to stay ahead in an increasingly competitive market.

PricewaterhouseCoopers (PwC) conducted a comprehensive analysis and presented an overview of the opportunities this transition could offer in the draft business case.
Based on initial revenue and cost projections associated with the transition, operational enhancements and pursuit of revenue opportunities, REALTOR.ca as a taxable entity could generate significant estimated revenues that could help reduce dependence on CREA funding from member dues. In other words, the current allocation of my annual $310 CREA membership dues that goes to REALTOR.ca (43 per cent) could be reduced — allowing CREA to instead allocate those funds to equally impactful priorities like government relations work and enhancing and protecting the REALTOR® reputation.

The dollars and cents are important but shouldn’t be what motivate you to consider this path forward. What’s at stake here is possibility. We can’t do more or be more by staying the same. If we want to remain the go-to choice for consumers, we need to set ourselves up to take advantage of all that’s possible for REALTOR.ca.

 

The benefits of a taxable subsidiary

 

Turning REALTOR.ca into a taxable entity could create other key benefits:

1. Innovation. With the ability to generate new sources of revenue, REALTOR.ca could adopt new technology like artificial intelligence, reach new demographics and introduce new features and tools.
2. Enhanced value for REALTORS®. REALTOR.ca could deliver things like higher-quality leads, better tools for managing client relationships and new features that enhance the overall REALTOR® experience.
3. Long-term viability. Creating opportunities for REALTOR.ca to better compete in today’s fast-paced tech landscape is crucial for maintaining our competitive edge and continuing to provide the high level of service that consumers have come to expect from the platform.
4. Self-sustainability. Reducing REALTOR.ca’s dependence on member dues could enable CREA to allocate more resources to core services like government relations, professionalism and promoting and protecting the value of working with a REALTOR®. This could help better position both entities for greater long-term sustainability and success.

 

The path forward

 

I’ve had the pleasure of connecting with many across the REALTOR® association community on this proposed transition. We know what’s at stake.

As stewards of this powerhouse brand, we have a duty to ensure its future success. The proposed transformation is a responsible and forward-thinking step towards securing REALTOR.ca’s market leadership in an increasingly competitive environment while also keeping REALTORS® firmly at the heart of that future.

Once again, I encourage you to visit CREA.ca/REALTORinc to read the draft business case, check out the other resources and share your feedback. We’re excited about what’s possible and look forward to bringing this to a membership vote at CREA’s 2024 Special General Meeting on Wednesday, October 23.

James Mabey
CREA Chair

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¹ Comscore

 

“First and foremost, let me be clear: there is no privatization happening with Realtor.ca. Realtor.ca will remain completely owned by CREA, and realtors will continue to own it through their membership in CREA.”

This is something Janice Myers, the new CEO of the Canadian Real Estate Association (CREA), stressed during our recent time together in Ottawa.

Aside from pressing issues — like the “privatization” of Realtor.ca, the Realtor Cooperation Policy and the commission lawsuits — we had the opportunity to discuss her career trajectory, her first 100 days in the role and her vision for the future.

The full video interview is available to watch. For transparency, only minor edits were made to ensure you can see the complete conversation and form your own judgments.

 

An industry veteran

 

Myers comes highly qualified for her role. Her background in association management and experience working with a real estate team in Vernon, British Columbia, paved the way for her position at the Okanagan Mainline Real Estate Board in 2001.

In 2014, a new opportunity arose: “My husband and I decided it was time for a change, and literally the next day, I got a call about the CEO position in Ottawa.” So they relocated, and for the next decade, Myers served as the CEO of the Ottawa Real Estate Board.

Prior to this interview, I talked to people who have worked with her in the past to get their perspective on her leadership.

Without exception, every single person had nothing but effusive praise. It’s a feeling of excitement for what she can do in her new role and trust in her ability to do it well.

At a time in our industry where it seems many are divided on leadership at different levels and trust in the organized side of the industry, Myers seems to buck that trend.

 

The focus as CEO

 

“My first 100 days have been focused on listening and learning,” she shares. “I’ve embarked on a listening tour, meeting with colleagues across the country, both virtually and in person, to understand their challenges and opportunities.”

While she does come with a wealth of experience, Myers has spent the last 10 years at the local board level. Now, she has to get up to speed on how it changes when it comes to the national level. For the CEO of CREA, there are three critical components of the role.

The first is advocacy.

There was no time to go slowly. Out of the gate, the team at CREA had policy recommendations in the government’s 2024 housing plan. When The Hill Times put out its list of The Top 100 Lobbyists for 2024, Myers made the list. She was very quick to point out that the team at CREA, not her, is the reason for inclusion on the list.

Enhancing and protecting the reputation of realtors is another key focus for Myers. “Reputation is vital in this environment, especially as consumers continue to press for transparency,” she states.

The third pillar of Myers’ focus is realtor and consumer technology, with Realtor.ca being a primary asset.

 

New structure for Realtor.ca 

 

“First and foremost, let me be clear: there is no privatization happening with Realtor.ca,” Janice states unequivocally. “Realtor.ca will remain completely owned by CREA, and realtors will continue to own it through their membership in CREA.”

This clarification addresses fears that Realtor.ca might be sold off or opened to outside investors.

Myers assured me that this is not the case. Instead, the focus is on maintaining control while enhancing the platform’s capabilities and ensuring it continues to meet the evolving needs of both consumers and realtors.

She emphasized three main points solidified by a special task force and endorsed at a special general meeting:

1. Ownership. Realtor.ca will remain wholly owned by CREA, ensuring that realtors retain ownership through their membership.
2. Governance. The platform will be managed with an independent board and as a taxable entity, allowing for greater operational flexibility.
3. Revenue reinvestment. Any profit generated will be reinvested back into the platform for the benefit of realtors and consumers alike.

“The idea is to provide Realtor.ca with the operational independence it needs to thrive and compete against heavily financed competitors,” Myers explains. “This structure allows us to diversify revenue streams, reducing our reliance on membership dues and ensuring the platform’s long-term viability.”

One of the main concerns among realtors has been how CREA plans to generate revenue from Realtor.ca without compromising its integrity or the interests of its members. Myers was clear that Realtor.ca would not sell leads to realtors. Instead, the focus is on exploring other revenue opportunities.

“We’ve identified about 30 different revenue opportunities and are narrowing down to five key areas,” she says. “These include leveraging our best-in-class data distribution capabilities, always ensuring that any data shared externally maintains the Realtor.ca brand and benefits our members.”

When pressed on whether allowing the data-distribution feed on third-party websites could lead to those websites selling leads to realtors, she emphasized that they’d make it part of the contracts not to allow that. The data-distribution feeds don’t contain member emails or contact information, and all consumer inquiries flow through Realtor.ca. This is the way it works currently, has always worked and will continue to work.

Myers highlighted the importance of maintaining transparency and cooperation with boards and associations across the country. “We want to ensure that everyone understands where these revenue opportunities are coming from and how they will benefit the entire realtor community,” she says. 

While they’re making the case for five specific revenue opportunities, Myers declined to provide them until she’s had the chance to bring them to the boards and associations first.

“We’re listening to our members and ensuring that any steps we take are in their best interest,” she assures. “Our goal is to keep Realtor.ca as the premier consumer portal in Canada, owned and operated by the industry for the industry.”

“Realtor.ca is a crucial asset for our industry,” Janice concludes. “By giving it the independence to innovate and compete, we’re ensuring it continues to serve the needs of consumers and realtors effectively. This is about building a sustainable future where our platform can grow and adapt alongside the industry.”

Keeping Realtor.ca within CREA as it currently stands as a non-profit could jeopardize its not-for-profit status. By removing Relator.ca from the not-for-profit arm of CREA, the association has more flexibility on how to generate revenue — revenue that Myers affirms will be reinvested back into the platform.

 

The Realtor Cooperation Policy

 

In addition to the potential changes with Realtor.ca, the new Realtor Cooperation Policy, which limits the use of exclusive listings, has sparked significant discussion. Few topics at REM generate as much commentary as this policy.

So I wanted to ask her about it.

“The primary driver for the new exclusive listing policy is consumer demand for transparency,” Janice begins. “We’ve seen a growing call from buyers and sellers alike for more openness in the real estate process. This policy is a response to those demands.”

The new rule mandates that any property marketed publicly must be listed on the MLS system within three days. This move aims to ensure that all consumers have fair access to property information, levelling the playing field for buyers and maintaining the integrity of the MLS system.

The policy has sparked a range of reactions from the real estate community. Some agents fear it might drive exclusive listings further underground, while others worry about the impact on marketing strategies. Janice acknowledged these concerns but emphasized the policy’s benefits.

“We understand that there are scenarios where exclusive listings can serve a purpose,” she says. “However, the policy doesn’t eliminate the possibility of exclusives. It simply ensures that once you start publicly marketing a property, it gets the broad exposure that only the MLS can provide.”

Janice highlighted that the policy strikes a balance between transparency and consumer choice. “If a seller has privacy or security concerns, they can still choose to keep their listing exclusive. The key is that once you start public marketing, it should be accessible to all potential buyers through the MLS.”

For realtors navigating this new policy, Janice advised open communication with clients. “It’s crucial to have honest conversations with your clients about their options and the benefits of MLS exposure. Realtors have an ethical duty to act in their clients’ best interests, and this policy supports that by promoting transparency and competition.”

 

Commissions

 

In the United States, there are several high-profile class-action lawsuits challenging the way real estate commissions are structured and disclosed. As a result, the U.S. real estate industry faces significant legal and regulatory challenges that could reshape its commission practices.

Myers pointed out that while the real estate industries in Canada and the U.S. share similarities, there are critical differences. “In Canada, we have a much more transparent environment regarding how buyer agents are compensated,” she explains. “Over 80 per cent of transactions in Canada involve written service agreements that clearly outline how agents are paid, ensuring transparency for all parties involved.”

One of the key distinctions Janice highlighted is the regulatory environment in Canada. “Our regulatory framework is robust and designed to protect consumers,” she says. “This includes clear guidelines on commission disclosure and the roles of buyer and seller agents.” 

The structured regulatory approach in Canada helps mitigate many of the concerns that have fueled the lawsuits in the U.S. In Canada, the existing lawsuits have not been certified as class-action to date either. 

 

Going forward

 

Janice Myers’ first 100 days as CEO of CREA have set a strong foundation for the future. Few could have stepped into this role with her level of qualification and understanding of the industry’s challenges.

Leaving the meeting, I felt confident that CREA and the industry are in capable hands. Even on issues where there might be disagreement, Myers’ openness, transparency and willingness to engage are reassuring.

I understand why those I spoke with before this interview were excited about her becoming the CEO of CREA. I’m excited to see what she can do. She’s got her work cut out for her, but all signs point to success.

 

If we do a follow-up interview with Janice Myers in 12 months, what would you hope she accomplishes in that time? Let us know in the comments.

 

Disclosure: To maintain transparency with our readers, it is important to note that CREA is an advertising partner of Real Estate Magazine. This relationship does not influence our editorial content, and CREA has never requested any specific coverage.

 

In January, the Canadian Real Estate Association (CREA)’s Realtor Cooperation Policy took effect. The policy mandates that realtors place publicly marketed residential property listings on MLS within the time frame their board or association states, which must be up to three days, unless an exemption applies.

“Publicly marketed” here refers to representing a listing to anyone not directly affiliated in a business capacity with the listing brokerage or office. It excludes direct, one-to-one communication with a person or agent.

Effectively, the policy ensures most existing listings end up on Realtor.ca rather than on different platforms.

 

The rationale: How and who the policy is meant to help

 

In a statement to REM, CREA says that the policy is ultimately meant to address the negative effects of limited exposure marketing tactics that can harm both sellers and buyers and which keep listings off MLS systems, such as the abuse of “Coming Soon to MLS” signage in front of homes that often didn’t end up getting listed publicly.

The association says, “We understand that some sellers don’t want their property listed publicly, and the policy does allow for this.” (There’s a disclosure and consent form for opting-out that notes sellers who choose not to publicly market their property may decline to place their listing on an MLS system if they complete the form.)

CREA says that more sellers on MLS systems means more choices for buyers, and ultimately more buyers for those sellers. “Cooperation between realtors makes MLS systems more efficient, valuable and effective for the industry and for clients. For example, competitive market analyses are more comprehensive if a majority of listings are posted to MLS systems.”

Although the change was supported by over 80 per cent of voting delegates from Canada’s boards and associations at CREA’s 2023 AGM, some in the industry find it problematic.

 

How things are playing out

 

Eric Skicki is the founder and CEO of BrokerPocket — which he describes as the largest real estate agent-only marketplace for off-market listings in the residential space in Canada. His company and those like it are deeply affected by the change.

The policy applies to all real estate agents who are CREA members (about 160,000). Skicki points out that CREA is a monopoly in itself and has almost complete control of all residential transactions in Canada. “There is no secondary player (or) secondary market with the exception of BrokerPocket.”

He says he’s spoken to numerous people in organized real estate leadership positions and learned that many aren’t interested in enforcing this rule. “They have zero incentive and zero interest. Some have even expressed that if enforced, they see this potentially as a liability to the board or brokerage,” he explains.

CREA says it continues to receive input from various sources regarding policy enforcement.

BrokerPocket believes in competition and consumer choice. It isn’t looking for a “carve out” from CREA’s policy just for itself. In a perfect world, the restrictions the policy places on competition would be removed to allow all competitors, including BrokerPocket, to compete freely, thereby giving realtors, and ultimately consumers, more product choices as well as competitive prices.

 

‘Sometimes, privacy triumphs (profit)’

 

Skicki feels there’s a misstep in CREA deciding how and where the public sells their homes. “I think they’re doing this with the intention of when someone sells their house, the only thing they’re seeking is profit.”

He explains that profit isn’t always the only driving force and that sometimes, privacy is a key consideration.

“An example of this would be a divorce case. If someone’s going through a divorce and they live in a nice neighbourhood, do they want a ‘For Sale’ sign? Do they want people Googling the house and seeing inside? Do they want open houses? (No), they probably want a discreet sale.”

A homeowner may not wish to publicly list their home for many other reasons, including physical or mental health concerns or convenience.

 

Lawyer involvement

 

To navigate competition law issues, BrokerPocket partnered with lawyer John Syme, who says he was surprised to learn about the policy and the restrictions it placed on realtors and their ability to offer clients various service options, including BrokerPocket.

For 20 years, Syme was in-house Department of Justice counsel to the Commissioner of Competition and the Competition Bureau. In that capacity, he was lead litigation counsel to the Commissioner in several precedent-setting cases, representing the Commissioner before the Competition Tribunal, as well as before the Federal Court, Federal Court of Appeal and the Supreme Court of Canada.

Since his 2019 retirement from the Department of Justice, Syme has provided competition law counsel to several private sector and government clients, along with training to a foreign national competition law enforcement authority.

He’s also co-counsel in two real estate industry class actions. “The focus of those cases are rules created and enforced by CREA and local real estate boards, like the Toronto Regional Real Estate Board (TRREB) … (the) rules place certain restrictions on brokerages and realtors,” he says.

“In the first of the two cases we filed, the defendants sought to have the case dismissed, claiming it was fatally flawed. We fought off that challenge, with the Federal Court ‘green lighting’ the case to continue. That Federal Court decision is now the subject of an ongoing appeal.”

Syme is currently providing legal counsel to BrokerPocket and has agreed to take an equity interest in the company. “I became involved for two reasons,” he explains. “When Eric reached out to me, I was impressed with his vision for BrokerPocket as a competitive tool to let realtors do their jobs more efficiently and serve their clients better. I also thought I could assist with the competition issues that, among other things, CREA’s Cooperation Policy appeared to raise.”

 

Background on pocket listings

 

Syme points out that pocket listings are not new — they’ve been part of the real estate market for many years. Traditionally, agents and brokerages communicated with one another about pocket listings through informal channels, like word of mouth and email. There was no comprehensive database or listing where realtors and brokerages could see what properties were available as pocket listings or market them to other agents and brokerages.

“This situation was disadvantageous to both residential real estate sellers and buyers and, by extension, their realtors. A seller who has chosen to offer their home by way of pocket listing might get a lower price for their property because some (perhaps many) buyers who might be interested in the property would never find out it was for sale. Buyers would be disadvantaged because they might never become aware of properties that would be of interest to them,” he notes.

 

Competition Bureau consultation

 

Syme explains the team has spoken with the Competition Bureau to disclose all facts and how there are multiple angles to consider. He points out the issue goes beyond how the policy affects companies like BrokerPocket — it also impacts competition between CREA’s members, which falls under restrictive practices, as well as the public and consumer choice.

Although the Bureau is governed by strict confidentiality rules and can’t disclose where its investigation stands, Syme indicates that he understands the investigation is ongoing and that, “The Commissioner has shown repeatedly that he will take enforcement action where necessary to address competition concerns.”

He also notes the recent settlement agreement the Commissioner entered into with the Yukon Real Estate Association to address Commissioner concerns with membership practices in the real estate sector. “We’re hoping the Commissioner/Bureau will consider taking action to address CREA’s Cooperation Policy,” he says.

Skicki emphasizes that BrokerPocket is not looking to pursue a legal case at this time. “We encourage dialogue and we’re seeking a peaceful resolution to this. We encourage (CREA) to do a member poll perhaps, to find out what the members want.”

 

Where do agents stand?

 

Skicki doesn’t believe the industry agrees with CREA having the right to dictate how people choose to sell their homes. “The agents we’ve talked to believe it’s not only legally wrong, (but) it’s also optically wrong. It sends the wrong message to the public that agents want more control, that agents want to somehow have this hidden agenda of making more money and more commissions and (are) trying to further entrap (the public).”

BrokerPocket has been speaking and having an open dialogue with realtors on the policy’s impact, including at a meeting held in February which Mark Jensen, broker owner and broker of record of The Jensen Team, helped to organize.

Jensen has been using BrokerPocket for nearly three years. He says, “(Their) offering equips us with a distinct advantage, enabling us to present our clients with homes they might not have discovered otherwise.”

There were about 15-20 realtors at the February meeting from different companies with different business models, all affected by CREA’s rule in various ways. Skicki highlights that most who attended and are speaking out about the issue are hesitant or afraid to have their name mentioned because they’re governed by CREA and their local board, both of which have the power to discipline members. 

The outcome of the meeting was to announce that BrokerPocket is “with the agents and going to be a voice for the agents.” Skicki says many people are reaching out to them. “We get a lot of inbound calls, we get a lot of questions, not only (about) how we’re conducting ourselves but what’s our opinion and (if) we think it’s fair.”

 

It’s about consumer choice and free competition

 

Jensen points out that the topic is crucial yet often misunderstood, with implications that can adversely affect consumers.

He asserts that in real estate, the concept of exclusivity holds tremendous worth. “While price is a key consideration, convenience often surpasses it in importance. It’s crucial to acknowledge that not every home is a perfect fit for traditional MLS marketing. Sellers should rightfully have a choice in determining how their properties are marketed.”

Realtors can approach each home’s promotion with a range of options for selling, including MLS and pocket listings. Jensen believes that emphasizing unique selling points only on MLS is not marketing.

“The preparation phase (painting, home renovations, staging, etc.) for optimal MLS exposure can span from weeks to months, so giving the client the option to list their house as an off-market ‘for sale’ could eliminate the inconvenience of this process and could potentially save them money. Now, these marketing avenues are being restricted.”

Jensen shares potential benefits to not implementing the policy that weren’t listed in CREA’s whitepaper, a study the association commissioned that helped lead to the creation of the policy:

• May result in reduced exposure to tire kickers and (may) ensure your home is marketed to serious buyers
• May result in reduced showings and save you time away from your home
• May result in better offers and conditions as buyers appreciate exclusivity and are willing to pay a premium. The same reason Gucci, Prada and Rolex do not sell their products in Walmart
• Sellers may prefer the option of convenience over price. Hence companies like Uber Eats, Carvana, etc.
• May result in more privacy and keep random home viewers and potential thieves from viewing your home on mass distribution websites
• Will result in not having the data of your home permanently available as far as price changes and days on market

He believes that not allowing a realtor to market their property will definitely affect the sale price. “That is the situation we’re in now. Can you imagine the car industry telling the public that they have to list their car for sale only on AutoTrader?”

Skicki highlights that BrokerPocket is pro-choice and believes it’s ultimately up to the consumer to choose how and when they sell their home, without CREA dictating where the listing goes. 

“I’m not anti-industry — I like the industry and I’m pro-organized real estate. I already expressed to a few CREA board members that I would be happy to work alongside them. I’m a former realtor and used to own a brokerage. I think agents provide an incredible amount of value.

I truly believe that once (consumers) actually look at the facts, (CREA) will reconsider, and this will either be abolished or they’ll look at having special exemptions for companies like BrokerPocket, which would in turn allow agents and the public to have more choice.”

He emphasizes it comes down to the public “not really (being) aware of what’s happening … The exclusions CREA presented I don’t think are justified or make much sense, and I think they further alienate their own members and ultimately the public.”

Further, Jensen points out the contradiction with part of the second point of CREA’s Pledge of Competition, which states: “A brokerage may offer any variety of services e.g. exclusive, open, MLS listings, etc. Boards and real estate associations accept MLS listings regardless of the price, commission rates or fees, or the division thereof.”

 

‘There’s a need for a B2B model — that’s what’s missing’

 

Skicki says CREA should be able to work together with the private sector and ultimately the public. “We’re coming at this in a spirit of collaboration and a spirit of finding the best solution for the industry and the public. We’re not trying to disrupt the industry or trying to do anything that will diminish the agent or somehow interfere with the mandate of CREA or realtor.ca. I think it’s time to recognize there’s a need for a B2B model — that’s what’s missing.” 

When REM asked CREA if it sees a need for this type of model too and if this would be a threat to the current model, its stance wasn’t clear: “Realtors cooperate and collaborate, making MLS systems more efficient, valuable and effective for the industry and for clients. It remains a business decision for brokerages or realtors to adopt or subscribe to other services.”

“There are numerous grounds that CREA’s up against, and I don’t feel that fighting this, even if they win, will gain them anything.”

 

– Eric Skicki, founder and CEO, BrokerPocket

 

Moving forward: The ask of CREA

 

Despite the challenges for BrokerPocket created by the Realtor Cooperation Policy, the company reminds its users of the policy and the agent’s requirement to comply with CREA’s rules when uploading a listing. BrokerPocket notes that it’s the only major national real estate portal in Canada that encourages CREA compliance. 

CREA says that the policy came into force in January and is still relatively new. “As we have throughout this process, we continue to work with boards and associations to help ensure they have the tools and information they need.”

Skicki acknowledges, “There’s still time to reverse course, open discussions and take appropriate measures not only to avoid legal repercussions, but also to be seen as progressive and pro-competitive. BrokerPocket remains prepared to engage constructively with CREA to find a mutually acceptable path forward.” 

 

Openn Offers is a technology platform that helps realtors manage and negotiate offers efficiently, while also maintaining compliance with local regulations and ensuring a fair process for buyers and sellers.

It also integrates with realtor.ca and the Canadian Real Estate Association’s web forms, helping agents publish information about received offers directly to their listing page on Realtor.ca.

In Australia, the company has about 5,000-6,000 agents certified to use Openn, 139,000 users and over $9 billion processed in property sales, it’s gaining more traction these days with Canadian realtors. Openn is active in three countries, “with a fourth being added imminently,” Sean Adomeit, Openn’s CEO, notes.

 

Full steam ahead in Canada

 

“We are very early in our Canadian journey, which presents Canadian realtors and brokerages with the opportunity to take the leadership position in their local marketplaces,” Adomeit says.

However, Openn has a growing community of “enthusiastic Canadian users, including enterprise-level commercial agreements signed with large brokerages, some of whom are developing their own complementary internal technology to further streamline their offer management process,” explains Adomeit. “This is a huge vote of confidence in what Openn brings to the market and, like all of our clients, we will be partnering with them to drive results.

 

What do Canadian realtors think?

 

Jason Finlayson, a realtor with Pemberton Holmes in Duncan, British Columbia, says he has been using Openn for the past year and that he’s always open to new ideas when it comes to real estate. 

“If it makes a little bit of sense, I’m willing to give it a try,” he explains. “I could see there were going to be some benefits with this program. I was curious.”

“When the market was ultra hot and pretty much anything we listed was in multiple offers, I really wish it was in my hands at that point. Unfortunately, by the time I got my hands on it, multiple offers were far fewer. We don’t really see many of them today in my market. We’re sitting on Vancouver Island essentially in a balanced market between buyers and sellers.”

As a result, Finlayson finds he uses it less than it’s intended for (multiple offer situations that allow other buyer agents to see where they stand) and that he “hasn’t been able to let it loose and use it to its full potential.”

He says the Openn system can streamline and facilitate the whole process of multiple offers. At the seller’s discretion, a realtor can open up the transparency and publish the offer price, so parties involved know where they stand as buyers rather than blindly bidding up an offer.

“Now, for as long as that offer is open for acceptance it almost evolves into an auction,” says Finlayson. “The multiple aspect in the heated market is one aspect of using it.”

 

Helps determine market price

 

He also points out another use case for Openn is the other end of those hot markets: “In a steeply declining market where prices are going down quickly if you get an offer that’s, say, lower than your seller’s expectation, (you can) say ‘this might actually be the best offer in today’s market and there is a way that we can somewhat test that theory (by) asking the buyers to give us a week with the offer, and we’re going to publish the price.’

And if no one else shows up to the table after I’ve marketed it at that price, then we can reasonably assume that is the value of the property in today’s market.”

 

Generates buzz

 

Jake Russel, a realtor with Royal LePage Downtown Realty, in Vernon, B.C., has been using Openn for about a year. He sees the value in it but says realtors in general are pretty slow to change.

“I think it’s a great tool to show some transparency to let everybody know that there’s an actual offer instead of verbally saying it,” he says. “You post it so that agents see it and the public sees it on realtor.ca … You don’t have to show price. It’s great for a seller because you’re getting people excited, maybe they want to jump into the negotiations … It potentially creates a buzz.”

Russel notes that realtors can also toggle the transparency options for price and conditions, depending on how they choose to treat the scenario. Though he hasn’t officially closed a deal with Openn just yet, he’s successfully used it on a few listings.

“It helped display that offers had been received but were not successful. On one particular listing, I revealed the last offer value, which generated a few more inquiries for my sellers.” (Russell explains the sellers had a short window to sell and pulled the listing off temporarily).

 

Automates communication and enhances negotiation ability

 

Adomeit points out the platform has many benefits for realtors: “Openn automates communication between agents, sellers and buyers, making it very easy for the realtor to keep everybody notified about important changes. For example, if a new offer is made, or an existing offer is improved, relevant buyers, sellers and agents are updated by the system in real-time.”

He explains that at the seller’s discretion, the listing agent can enable buyers and observers to see information about competing offers, including details about their price, which traditional offer-making processes or past legislation have prohibited.

Since the realtor can share these details, their ability to negotiate on behalf of their client is enhanced. “Sharing offer information with the market allows the true market value of a property to reveal itself more efficiently, so properties sell faster. In strong markets in Australia, Openn campaigns sell about 30 per cent faster than traditional campaigns, and when the market is slow the difference is even greater, which realtors obviously love,” Adomeit points out.

 

A way to win more business

 

On top of this, Adomeit says that realtors who use Openn become skilled at explaining its advantages to potential clients, which helps them win more business. 

By enabling the “observer feature”, Openn allows realtors to build an audience around their campaigns. Observers see the work being done by the agent, so it’s a tool for realtor self-promotion and lead generation, too. 

“A significant number of observers go on to sell their property with a broker using this system by virtue of the results they’ve seen it can achieve (speed, price, efficiency, transparency),” he explains.

 

“Peace of mind that the selling process is being conducted fairly”

 

Adomeit also says consumers get peace of mind that the selling process is being conducted fairly, which has been a long-time complaint aimed at the real estate industry.

“Every realtor has, at times, had to console a buyer who would have offered more for a house they loved, if only they’d known the price they needed to offer. The buyer is devastated, and the seller (often unknowingly) has missed out on achieving the best price for their home. For agents who use Openn, this doesn’t need to happen ever again.”

 

Navigating the Trust in Real Estate Services Act (TRESA) has proven a daunting process for agents and brokerages throughout Ontario, but a digital solution from OpennOffers.ca has made compliance much less frightening. In addition to complying, the Openn Offers platform also gives agents powerful advantages for negotiating, selling in less time and generating leads.

On December 5, Openn hosted an informative webinar discussing TRESA and the regulations that came into effect on December 1. The webinar included a product demo of OpennOffers.ca, highlighting features of the platform that were specifically added to simplify TRESA compliance. Also discussed were the integrations with Realtor.ca and CREA Webforms. These create ease of use and empower agents to publish information about received offers directly to their listing page on Realtor.ca, thereby attracting and engaging more attention and inquiries.

The webinar sheds light on what the medium and long-term implications of TRESA may be, and the unique opportunity available for agents and brokerages who proactively adapt and capitalize. With Openn Offers, you don’t just comply easily – you also become a better negotiator, sell listings faster, and generate qualified leads and referral business.

Click here to arrange a discussion about how Openn Offers ensures easy compliance with TRESA, while also powering growth for your business.

In an evolving real estate landscape, agents and brokers face the challenge of keeping pace with legislative changes and the increasing demand for efficiency and transparency. Openn is designed to meet these needs, offering a progressive solution in the realm of digital offer management.

Discover OpennOffers.ca, an intuitive platform and next step in the evolution of the offer process used in Canadian real estate. Integrated seamlessly with REALTOR.ca and WEBForms®, Openn facilitates effective communication and negotiation for agents. Whether you’re on the go or in your office, this tool ensures you and your clients are always equipped to seize opportunities. This is particularly relevant in Ontario, where TRESA’s upcoming implementation underscores the necessity for compliant tools.

Openn serves more than just offer management; it’s a catalyst for business growth. It enables agents to generate leads, fortify their brand and expand their business footprint. Beyond transaction facilitation, Openn emphasizes the importance of nurturing client relationships, aligning with the modern agent’s objectives.

At the core of Openn’s philosophy is a commitment to helping agents and brokerages comply with changing legislation with greater transparency. The platform allows agents to clearly display the interest a property garners, offering the flexibility to share details like the number of offers, their ranking and key aspects of each offer, including price. When the right circumstances are present in a multiple-offer scenario, this approach not only promotes fairness and keeps all parties well-informed, but data shows it can also result in sales prices well above a seller’s expectations.

As Ontario prepares for the TRESA legislation changes on December 1, Openn is ready to assist agents in adapting to these developments.

We invite you to join our webinar on December 5: TRESA Compliance Simplified: Navigating Offers with Openn. This session will provide valuable insights, demonstrate practical applications and feature a live Q&A with our Openn experts.

During the webinar, we’ll explore how Openn can streamline your offer disclosure processes in alignment with TRESA, ensuring you remain at the forefront of industry developments. Participants will receive a downloadable fact sheet, offering a comprehensive understanding of the legislative changes.

The Canadian real estate market is undergoing significant transformation, and Openn is at the forefront, providing agents with essential tools and resources to meet evolving consumer expectations while maintaining their crucial role in transactions.

Seize this opportunity to enhance your professional expertise. RSVP for our December 5 webinar and explore the advantages of digital offer management with Openn.

The Saskatchewan Realtors Association (SRA) recently announced it’s delivering the latest in AI-powered tools to its 1,700 Saskatchewan members. The tools are powered by Restb.ai, a leader in artificial intelligence-powered computer vision technology for North American real estate.

“Saskatchewan’s tech sector is one of the fastest growing in Canada. We’re proud the real estate sector can contribute to this economic force in our province. Our real estate community in Saskatchewan provides an ideal landscape to innovate and push boundaries, and we’re thrilled to be one of the first associations in Canada to bring generative AI by Restb.ai into our MLS system, at no additional cost to our members,” SRA CEO, Chris Guérette, shares in a press release.

 

Saving time, adding automation and fully integrating with Realtor.ca

 

Several advanced computer vision tools were implemented that will allow Saskatchewan realtors to upload a new listing in much less time than it currently takes.

This also includes automated generative AI tags – the Restb.ai technology scans each photo uploaded into MLS and automatically identifies the home’s key interior and exterior features. This automation will save realtors a lot of time compared to manually noting and inputting the tags. Plus, consumers will experience improved search functionality, helping them find the homes they want faster.

With full integration with Matrix, Saskatchewan’s multiple listing service (MLS) software platform, it will feed into the consumer-facing, trusted Realtor.ca website.

 

Advanced technologies at their fingertips

 

Saskatchewan realtors can also access more advanced AI-powered technologies, like property descriptions, image captions and alt-text/metadata.

Image caption technology helps users describe the property and its best features, by automatically offering professionally written property descriptions. Alt-text data ensures photos have a description of what the photo is, which increases the listing’s accessibility. Metadata (detailed information about the images) is created when each photo is scanned, which boosts the amount of listing information the SRA gets.

“The magic of AI isn’t just in its potential but in its tangible impact (on) real estate in Canada. Restb.ai uses generative AI tag technology to help instantly identify everything from the home’s architectural style and outside amenities, to the features inside of the home, such as white kitchens, stainless steel appliances, stone countertops, outdoor kitchens, and more,” Guérette mentions.

 

Up next, Saskatchewan realtors will access more AI-powered tools within the province’s MLS system, including a tool that will auto-populate listings.

 

It’s no secret REALTORS® are trusted experts in their communities. With this expertise often comes an understanding of a community’s needs, and REALTORS® across Canada are taking action to meet these needs. Now is your opportunity to recognize someone whose actions have created an outstanding, positive impact for their community.

The Canadian Real Estate Association (CREA) is now accepting nominations for the Canadian REALTORS Care® Award 2024, proudly presented by REALTOR.ca. Each year, this award recognizes a REALTOR® whose charitable accomplishments have created lasting change in the lives of others.

Those interested in nominating a candidate may do so by completing the Canadian REALTORS Care® Award nomination form. Any member of CREA, in good standing, who isn’t a member of CREA’s board of directors or its Environmental, Social, and Governance Committee can be nominated.

CREA is asking nominators to send in inspiring stories of REALTORS® who go above and beyond to make an impact. Nominators will need to complete the nomination form, providing a history of the REALTOR®’s charitable work and highlighting the positive difference this REALTOR® is making in their community.

Alongside the nomination form, nominators need to submit at least one letter of recommendation obtained in the past year from a representative of a registered charity supported by the nominee. They also need to include at least one piece of supporting documentation which can be but is not limited to media coverage, photographs or social media posts.

Since 2016, nine REALTORS® across five provinces have been honoured with the Canadian REALTORS Care® Award. Whether their impact was made through transformative volunteering, advocacy, fundraising or philanthropy, every recipient has embodied the REALTORS Care® spirit.

The 2023 recipient, Dale Devereaux, has been finding ways to support the city of Red Deer, Alberta, since moving to the community in the 1980s. Devereaux partnered with the Red Deer Food Bank to feed close to 30,000 central Albertans over the past 25 years, through his “Feed a Family at Christmas” campaign. He also played a key role in bringing a Ronald McDonald House to his community — finding the land the house now sits on and helping to raise a staggering $12.1 million in 15 months for the facility’s construction.

• Devereaux was one of 48 REALTORS® nominated for the 2023 award. Through the new REALTORS Care® Spotlight series, CREA has and will continue to share the impactful stories of some of these nominees, including:
• Chris Dunlop, of Toronto, Ontario, who has led multi-million-dollar capital campaigns for local youth centres, all while motivating his brokerage to become a national leader in fundraising for the Royal LePage Shelter Foundation.
• Brenda MacKenzie, of Halifax, Nova Scotia, who founded “A Home for Everyone”, to support the city’s unhoused population, over a decade ago. She now uses the non-profit to help families in need find and finance a safe place to call home.
• Rose Iannacchino, of Niagara Falls, Ontario, who spends countless hours creating access to healthy and affordable food for the most vulnerable members of her community, as the volunteer co-executive director of GROW Community Food Literacy Centre.

The recipient of the Canadian REALTORS Care® Award 2024 will be announced at CREA’s Annual General Meeting, in April 2024, and their story will be shared across the country. In addition to receiving national recognition and coverage, CREA will donate $5,000 to the recipient’s favourite charity.

Each nominee may have the opportunity to have their impact featured as part of next year’s REALTORS Care® Spotlight series. Nominees asked to be featured will be contacted by CREA’s REALTORS Care® team, in early 2024.

Nominations must be submitted by 4 p.m. EST on Friday, December 1. For full details, and to nominate a deserving REALTOR®, go to REALTORSCare.ca/nominate.

The future of Realtor.ca was discussed, debated and questioned on October 18 at an SGM hosted by the Canadian Real Estate Association (CREA).

In an email, CREA spokesperson Pierre Leduc expressed the national board was “encouraged by the number of participants who stepped up to ask questions, offer feedback and provide suggestions on the high-level plan and operational guiding principles prepared by the Realtor.ca task force.”

Task force member and chairperson of the Saskatchewan Realtors Association, Jeff Stewart, couldn’t agree more. “We felt like we had the trust of the room – it felt like a really uniting moment. This could potentially be a pivot where we can all work together,” he shares.

 

Presenting the ownership and governance pillar

 

Stewart presented the panel on Realtor.ca’s ownership and governance pillar, which asks if the new Realtor.ca company should be 100 per cent owned by realtors via membership to CREA. An overwhelming majority were in favour.

“Realtor.ca is not for sale now nor will it ever be for sale. We’re keenly aware of the importance of Realtor.ca and, with the platform, we’re the envy of organized real estate around the world.

We see ourselves as the stewards of that asset and want to see guardrails put in place to prevent anything (like a sale) from happening.”

When a member asked if it could still potentially be sold down the road, he responded, “Our goal is to pass on that asset better than we found it, (like) generational wealth. So, if something happens down the road it will require a membership vote, not (a decision made) unilaterally by anyone.”

 

Poll on guiding principles

 

Leduc explains that attendees were polled on three proposed guiding principles, which will act as operational guardrails for a new taxable entity.

Over 75 per cent agreed with each proposed principle.

Results have been shared with the CREA board of directors, along with feedback collected from earlier discussions and presentations.

 

The main issue: Selling and shareholder rights

 

When speaking about selling a stake in Realtor.ca, Stewart explains, “We’re very passionate about allowing any outside ownership … there’s danger (in selling) because of shareholder rights. If it’s for-profit, the CEO has a fiduciary obligation to all shareholders, not just majority shareholders. You can’t leverage what’s good for the majority above the smaller shareholders. (This is) similar to what happened in the US with Realtor.com and we have to do everything we can to avoid that.”

The Alberta Real Estate Association (AREA)’s CEO, Brad Mitchell, echoes these sentiments.

He points out his association’s only major concern was the potential sale of Realtor.ca, “whether it be a full sale, a partial sale, a sale to a minority shareholder or anything else … The problem with selling even a portion of Realtor.ca is you’re taking outside capital that needs a method of being paid back. That outside party will expect a return on their investment, but when you fund (the platform) yourself or by selling services, you’re not beholden to a third party.”

Now that CREA has affirmed they won’t be selling any portion of Realtor.ca, he feels the issue has been rectified. “The CREA board of directors has taken stock of what their stakeholders are saying and is making an effort to listen to them – AREA is pretty happy … it’s time to move on,” he expresses.

 

“We are CREA” – no more us vs them

 

Stewart points out that, leading up to the SGM, there has been a lot of background and stories about the platform’s ownership and governance future. While he admits there’s truth and merit to them, he also shares, “The biggest takeaway is that we had a really positive endorsement from the group – both for all three pillars and for the overarching question of supporting the work of the task force.”

In the past couple of years, he’s experienced a lot of politics involved in organized real estate boards and associations and shares, “Egos get in the way of doing really important work … it’s often “they” or “CREA” against “us”.”

Stewart would like to see the industry “get (its) egos out of the way and stop (making CREA) “they vs us” or “us vs them” – because we are CREA,” he emphasizes.

Indeed, the task force includes members of CREA’s board of directors.

“The amount of time we waste bickering over insignificant things is getting in the way of really important work that needs doing … and I’m not going to say I haven’t been guilty of doing this. It goes both ways – am I doing everything I can to communicate better with them? Communication is a two-way street.”

 

Final impressions

 

Stewart says he left there hopeful. “I think the group did (too). This is an inflection point for organized real estate in Canada and CREA’s membership. I’m really positive about moving forward.”

Mitchell shares similar sentiments. “I think CREA’s on the right track now and listened to stakeholders. The meeting was generally positive with lots of questions from members … The board now understands that stakeholder engagement is an important part of the process when a major decision like this is being made.”

Leduc confirms that a decision on next steps is expected soon.

 

QUICK HITS

 

• CREA is holding a Special General Meeting on October 18 to get direction and support on a for-profit future of Realtor.ca.
• Alberta Real Estate Association and others “don’t see a benefit to selling off a portion of Realtor.ca”.
• Any technology looking to grow and scale or enhance its offerings requires capital – the question is how to capitalize while meeting member and consumer needs.

 

The future of Realtor.ca may be changing. For months, the Canadian Real Estate Association (CREA) has been working with stakeholders on whether it will move from its current non-profit status to a for-profit model.

“ … we’ve been working in consultation with realtors and leaders from boards and associations across the country (the Realtor.ca Task Force) and outside experts who have been leading initial due diligence on the consideration of moving Realtor.ca into a separate, taxable, wholly-owned subsidiary of the Canadian Real Estate Association,” says Pierre Leduc, spokesperson for CREA, in a statement.

 

CREA seeks endorsement and next steps at SGM

 

Tomorrow, CREA is holding a Special General Meeting (SGM) to request and collect directional endorsement on what’s been done so far and to go over next steps.

“This is an important and exciting journey, and we want to be sure we’re taking the time to listen and consult,” Leduc expresses. “The discussions on October 18 will help CREA’s Board of Directors in their decision-making on future work – which could include a formal vote on a detailed business plan at CREA’s AGM in April 2024. We look forward to sharing more when we know more.”

But, the process seems to have been a bit of a bumpy one in recent months.

 

Alberta boards take a stand

 

In an update to members of the Calgary Real Estate Board, Chair Christian Twomey wrote that he was invited to be on CREA’s Realtor.ca task force on May 16 and resigned from it on August 30. He wrote that initially, he felt the process had him in a state of unease and his apprehension did not go away during his time on the task force.

“Immediately after my resignation, it became clear there were significant challenges in aligning the Task Force and CREA on what is best for Realtor.ca. It is clear that there are forces involved that are undermining good governance and appear to be systemic in nature,” he wrote on September 19.

“On Sept. 12, CREA sent a notice of a Special General Meeting on Oct. 18 to all Boards and Associations across Canada. Interestingly, when writing this email, CREA has still not presented a motion for Boards and Associations to vote on. So far, CREA has advised the leadership across the country that we are expected to attend this meeting in person for a ‘directional endorsement exercise on the future of Realtor.ca’. For CREB, our goal is for Realtor.ca to continue to be a reliable source of business for our members.”

Brad Mitchell, CEO of the Alberta Real Estate Association (AREA), said part of the association’s concern is it doesn’t see a benefit to selling off a portion of Realtor.ca.

“Back in January, a number of CREA members saw (the board’s) plan to basically sell a portion of Realtor.ca. A lot of members got together and AREA, along with nine other boards in Alberta, submitted a requisition to have a Special General Meeting to propose bylaw changes to prevent the CREA board from doing it without a member vote,” says Mitchell.

“And so, this SGM is really about the future of Realtor.ca and how it’s going to work . . . the task force was struck, they’re going to bring forward some recommendations.”

Mitchell says the initial idea of CREA wanting to sell a portion of Realtor.ca came as a surprise, and it was felt that this plan needed more detail and more thought.

“We don’t like the idea. CREA hasn’t been able to demonstrate any advantage to bringing in outside investors and, of course, if you have minority shareholders (they) have significant rights. Right now Realtor.ca is owned by every realtor member in Canada and it’s a not-for-profit model. As soon as you bring in outside investors, of course, they’re going to want to make a profit.”

 

“Revenue should benefit all members in Canada”

 

Mitchell explains there’s only one way to profit: from the members themselves. “They’re the ones that have created the system. There are ways to generate revenue but that revenue should be for the benefit of all Canadians and all members in Canada, and not to a specific corporation or entity.”

He says AREA looks at one thing – protecting its members’ interests.

“When those members’ interests are threatened, we will act very swiftly and decisively to protect the people that we’re responsible to. So, any sale of Realtor.ca to anybody outside of the realtor members is a non-starter for our provincial association and many of the boards in the province,” he adds.

 

CREA’s agenda

 

In the SGM agenda package, a note from Larry Cerqua, chair of CREA, and Marina James, chair of the Realtor.ca Task Force, says the platform is instrumental to the success and reputation of realtors in Canada by putting realtors at the heart of consumer real estate journeys and delivering millions of leads to members each year.

“We know how important this asset is to the entire realtor association community. As stewards of Realtor.ca, we must prepare to lead future technological change while ensuring the long-term sustainability of this unique and extremely important asset that generates tremendous value to realtors and their clients,” they wrote.

The pair said the task force has been leading initial due diligence and helping it chart a path forward for the platform that would be turned into a separate, taxable, wholly owned subsidiary of CREA.

 

A huge force in property searches

 

Lynette Keyowski, Managing Partner of REACH Canada, a real estate technology scale-up program, says the national program is affiliated with the National Association of Realtors out of the United States – CREA’s equivalent in the U.S.

REACH has a venture capital arm called Second Century Ventures which invests in real estate technology companies for the benefit of their realtor members.

Keyowski says there are plenty of statistics and market data pointing to Realtor.ca being a significant force in property searches for Canadians.

 

The future requires capital

 

“From that perspective, it’s obviously a viable technology. It has grown its market share for a few different reasons. This comes down to a business model that is employed, and Realtor.ca – by virtue of its ownership through CREA – has enjoyed essentially a monopoly on its asset, which is the listing inventory.

No other portal can point to a monopoly on acquiring that listing data. Any other real estate portal needs to acquire the data through some other means, whether it’s monetary or financial, (and) whether it’s through affiliation or membership or through a partnership of some nature with the folks that own the data,” Keyowski comments.

She says CREA has been able to grow the Realtor.ca brand through that lens because they have the most listings available.

“From a pure future viability perspective, I suspect it’s around how do we continue to deliver the product that the marketplace demands, given our current ownership structure, regardless of the fact that we have a monopoly on input … I suspect that is likely the conversation being had,” she suggests.

Keyowski points out that, based on REACH’s knowledge and work, any technology function looking to grow and scale or enhance its offerings requires capital.

“So, the question then is how do you capitalize that growth, how do you capitalize that expansion, how do you capitalize continuing to meet the demands of a continually evolving and changing consumer base?

I think it really comes down to two things. It’s how you operate the business and it’s how you capitalize the business.”