Trevor Koot, Author at REM https://realestatemagazine.ca/author/trevorkoot/ Canada’s premier magazine for real estate professionals. Wed, 17 Jul 2024 18:58:50 +0000 en-US hourly 1 https://wordpress.org/?v=6.6.2 https://realestatemagazine.ca/wp-content/uploads/2022/09/cropped-REM-Fav-32x32.png Trevor Koot, Author at REM https://realestatemagazine.ca/author/trevorkoot/ 32 32 The time has come to make a fundamental shift in organized real estate: Part 2 https://realestatemagazine.ca/the-time-has-come-to-make-a-fundamental-shift-in-organized-real-estate-part-2/ https://realestatemagazine.ca/the-time-has-come-to-make-a-fundamental-shift-in-organized-real-estate-part-2/#comments Tue, 16 Jul 2024 04:03:47 +0000 https://realestatemagazine.ca/?p=32905 Stop “playing office,” stop acting like service clubs and start making decisions that are motivated by good corporate practice

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The three questions I heard most following the publication of my article in REM, The time has come to make a fundamental shift in organized real estate, were:

1. When does the sequel come out?

2. Why should we want to do the things you wrote about in the article?

3. What are you going to do about it?

The fact that you are reading this answers the first question. I will attempt to provide more context in answering the other two.

 

Why should you care?

 

So, why should we want organized real estate to move away from the legacy model of protectionism by actually collaborating to better utilize the resources available to us as a whole so that we can actually innovate?

There’s this sense in organized real estate that when we talk about collaboration, we’re automatically suggesting mergers and amalgamations of the many organizations across the country. I’ve always believed that amalgamations will happen at a grassroots level. The boards of directors and members of an organization will see the benefit and move toward action.

That said, organizations resistant to mergers for reasons such as “it takes away their identity,” “real estate is local” or “members NEED local representation” should probably do an environmental scan to ensure they have the necessary resources to manage today’s liabilities and tomorrow’s risk.

 

Address redundancy to get the right resources & support for realtors

 

Like other organizations, when we review our risk register, it’s necessary to consider if we have the resources and capacity not only to continue providing the everyday services expected by our membership but also to navigate challenges ahead.

This is asking a lot. It means:

  • having a strong internal cybersecurity strategy with confidence that we won’t be the next London Drugs in the national news,
  • being prepared for the impact of new technology and AI used by members, consumers and other stakeholders,
  • being prepared to support the role of the broker over the next decade with the pressure on that role increasing,
  • having the resources to navigate the legal challenges the profession faces,
  • having the capacity to work through an increasingly complex regulatory environment and
  • having the resources and technology to satisfy the growing demand from regulators and government to ensure data is available to inform policy and rules.

Even if we have the resources to tackle these issues, it does not make sense for multiple organizations to duplicate this work. By addressing redundancy in some of these critical areas, we can create the additional capacity to truly support the realtor community and provide the services they need to navigate the risks and challenges ahead.

 

Start acting more corporate

 

In the original article, I made several suggestions on what we could start to do differently, which would help us move the needle on being more collaborative and innovative.

The first is to start acting more corporate. We have a saying in British Columbia, “That’s just playing office.” This comes from often seeing one board paying a neighbouring board for the listings their members are putting on the MLS system, or vice versa. One organization sponsoring an event hosted by another organization. One group contributing to a fundraiser of another group. Every dollar that flows into organized real estate comes from the same place, the realtor, but we act like each entity is somehow disconnected from this reality.

A shift to a corporate organizational model would prioritize decisions that result in efficiency, eliminate redundancy and focus on the interests of the corporation. Considering organized real estate as a collective of corporate entities (which they are) with access to $288 million annually, as referenced in the first article (which they have) — taking steps to build out a corporate organizational model would inherently move us toward innovation.

Stop “playing office,” stop acting like service clubs and start making decisions that are motivated by good corporate practice.

 

Break down boundaries, centralize & leverage data and information

 

When we talk about fundamentally shifting organized real estate, the second suggestion in the original article would result in the largest impact toward that shift — moving away from the over-fixation on the existing cooperative construct. Organized real estate represents 160,000 independent business owners across the country. These entrepreneurs have more access to business tools and competitive differentiators than ever before. The cooperative sandbox that we built 100 years ago just isn’t working for today’s playground. 

Imagine if we stopped focusing on the cooperative nature of organized real estate and instead considered it a centralization of data and information that can be leveraged to bolster the industry. Data has always been synonymous with MLS systems and real estate boards but its value has always been predicated on cooperation. If you play in the sandbox, you get the benefit.

If we break down the boundaries of the systems to make the data more impactful, apply a corporate mindset to leverage the data beyond what has been done traditionally and remove the cooperative framework that the system currently requires, we will have a robust network of organizations across the country that are leading innovation in the industry to provide:

  • better options and opportunities for realtors,
  • more robust consumer engagement and
  • an ecosystem that is adaptable and ready for the ongoing changes we will continue to see.

 

What am I going to do about it?

 

As for the final question posed at the start of this article — what are you going to do about it? This. I am going to do this:

I will continue to be a critic of the industry, as much as I am a champion. I will challenge the status quo by initiating and leading discussions with industry stakeholders across the country focused on eliminating redundancies, learning from each other and enhancing our collective efficiency.

I will also remain actively available to my colleagues nationwide, fostering collaboration, encouraging innovative practices and advocating for strategic shifts that push the boundaries of traditional approaches.

 

It’s too often that in leadership rooms, we look around for an “adultier adult.” Well, we are the adults. We are the leaders in this industry at this pivotal moment. It’s time for us to engage in these difficult conversations and make tough decisions — even when they’re not universally popular.

By embracing a corporate mindset, we can confidently manage risks, prioritize the corporation’s best interests and propel our industry forward into a new era of innovation and resilience. Together, we will forge our own legacy.

 

Please note that it’s BCREA policy to not respond to comments on any of its online articles.

 

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]]> https://realestatemagazine.ca/the-time-has-come-to-make-a-fundamental-shift-in-organized-real-estate-part-2/feed/ 7 The time has come to make a fundamental shift in organized real estate https://realestatemagazine.ca/the-time-has-come-to-make-a-fundamental-shift-in-organized-real-estate/ https://realestatemagazine.ca/the-time-has-come-to-make-a-fundamental-shift-in-organized-real-estate/#comments Tue, 09 Apr 2024 04:03:39 +0000 https://realestatemagazine.ca/?p=30019 As long as the existing structure of organized real estate continues, we’ll spend our resources on its maintenance — let’s reimagine and do it differently

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Consider how much realtors pay into organized real estate in Canada each year in regional, provincial and national fees. If we suggest an average of $150 monthly for 160,000 realtors across the country, it really adds up.

There’s a common sentiment that the realtor community in Canada cannot compete with the tech giants that tout significant research and development budgets because we’re just too small. Individually, this is true. But collectively, there’s an opportunity to leverage larger resources to do more.

That said, it’s not just about having one large pot of money; it’s what organized real estate does with that money.

 

The boards’ challenge: Focusing on strategy while dealing with operational issues

 

This pool of fees collected from realtors sustains around 70 boards of directors, staff groups, MLS systems, conference attendance, honoraria, office spaces, reserve funds, etc. It also sustains around 70 strategic plans, each of which, I would wager, says very similar things: platitudes like goals of working with stakeholders, improving member engagement and achieving organizational excellence. 

The ongoing challenge for the boards of directors across Canada is that they often believe they are focusing on strategy but are mired in frequent deliberation over operational matters. This makes sense because the organizations have an operational function in providing services to members. The board of directors, in turn, is made up of members who are also direct recipients of these services.

It is profoundly difficult to disconnect the board from the operational output which would enable exclusive focus on the strategic direction of the organization. This is made even more difficult when we feel invested in the services and meet monthly. 

Do monthly meetings foster strategy or naturally draw volunteer leaders into day-to-day operations? Despite a desire to concentrate on big-picture strategies, frequent meetings and lack of guidance often distract directors to fixate on operational discussions. Every strategic plan in this country is loaded with the words “innovation” and “collaboration.” Yet, because of the system we all work within, one would be hard-pressed to see much of either.

 

Decisions made not by innovation and collaboration but by protectionism and self-interest

 

It may be time that the purpose of organized real estate in Canada materially shifts. Rather than continuing along the same path, let’s change the “WHY.” Let’s fundamentally change the reasons for organized real estate to exist. Ask ourselves, does it solely exist to sustain itself? 

Decisions being made by local boards are often based on protecting their legacy: MLS systems and data. The entire construct of organized real estate has been made up along the way, over 100 years, and now we find ourselves victim to this artificial environment. We end up making decisions not based on innovation and collaboration but on protectionism and self-interest.

 

Big moves in the space aren’t slowing down

 

We’re currently seeing prominent, non-traditional players making big moves in the real estate space — including the likes of Intercontinental Exchange buying Black Knight (provider of Paragon) and Questrade buying Zolo in Canada.

These mergers and acquisitions are not new and certainly won’t slow down. They’re also not motivated by owning new tech platforms; they’re motivated by access to data. That appetite for data infringes on the primary traditional mandate of organized real estate: protect our data at all costs, even from each other.

 

What now?

 

Knowing this, the question is, what now? We need to do two things: actually collaborate and actually innovate.

Let’s start acting like corporations by normalizing and, dare I say, proactively making better use of the annual influx of capital from the realtor community to its organizations. 

Let’s move away from the over-fixation on the existing cooperative construct of organized real estate (which is under threat as it is) and start focusing on centralizing data and leveraging it for the benefit of the industry and consumer.

Let’s stop focusing on legacy and start focusing on leveraging our resources, data and industry to truly compete.

 

As long as the existing structure of organized real estate continues as it is in this country, we’ll spend our resources on the maintenance of that structure. We’ll continue to struggle to find alignment because we’re internally focused. We’ll be challenged to drive strategy because operational considerations will prevail.

Let’s reimagine organized real estate in Canada. Let’s do it all differently.

 

Please note that it is BCREA policy to not respond to comments on any of its online articles.

 

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]]> https://realestatemagazine.ca/the-time-has-come-to-make-a-fundamental-shift-in-organized-real-estate/feed/ 20 OPINION: How real estate leaders can drive change for the industry https://realestatemagazine.ca/opinion-how-real-estate-leaders-can-drive-change-for-the-industry/ https://realestatemagazine.ca/opinion-how-real-estate-leaders-can-drive-change-for-the-industry/#comments Fri, 28 Apr 2023 04:03:22 +0000 https://realestatemagazine.ca/?p=21840 Trevor Koot: Leadership must be empowered to make decisions that consider the future state. Gone are the days of making decisions based on protectionism

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]]> Governance and leadership training within the real estate industry in Canada has become a staple for directors and leadership at all levels of organized real estate. 

I have had the privilege of being an instructor for the Leadership 200 and 300 courses offered by CREA to all directors across Canada. I have always enjoyed being able to facilitate conversations for new and returning directors about all things governance. Though, I sometimes question how much of it actually gets put into practice, especially when it comes to the roles, responsibilities and fiduciary obligations of directors.  

 

Leadership vs. governance: Understanding the difference

 

First, it is important to differentiate leadership and governance in the context of a director’s responsibilities. 

I would suggest that governance is related to the decisions you make at the board table, and leadership is the influence you have beyond the table. While industry experts may have differing perspectives on traditional governance structures, I am interested in exploring the role of leadership. 

When we evaluate a leadership role in organized real estate, any leadership role, there are three areas that a leader can take into consideration as they navigate the decisions in front of them and their opportunity to influence change: the members, the organization and the industry.  

 

“The decisions you make as a director should be what is best for the organization, full stop.”

 

First, the members. Generally, the constituent that gets the most consideration and the only one of the three areas that can actually provide feedback, which results in a desire to keep them satisfied.  

Second, the organization. Based on a ruling by the Supreme Court of Canada, the legal obligation of all directors in Canada is to the organization (not the members or shareholders). The decisions you make as a director should be what is best for the organization, full stop.  

Finally, the industry. Typically given little consideration, if any at all, and rightly so. Leadership tends to think that a decision being made at their board table could not possibly have any influence on an entire industry, leaving them to ignore it in their decision-making. This is not true at all.

 

The members

 

So, let’s start with the members. This is not going to be a popular opinion, but I would suggest that leadership not make decisions based on what members want. The members’ needs and opinions are a vital component of an organization. However, it is important to recognize that leaders should not make decisions based solely on what the members want. 

The members want a decision that is going to be best for them, which might not necessarily align with what is best for the organization or the industry. Now, don’t get me wrong, get feedback, ask good questions, determine how decisions will impact the majority of members, understand why members have the opinions they do—but directors should not make leadership decisions solely based on what is most popular with the members in that the moment.  

 

The organization

 

Now let’s look at the organization. While the members are an important consideration, directors must prioritize the organization. Anyone who has had any governance training knows that the fiduciary duty is to the organization. 

Regardless of what members want, regardless of what is best for the individual, it can’t be contrary to what is best for the organization. This means that decisions made by directors should prioritize what is best for the organization as a whole, rather than what is best for any one individual within the organization. 

There have been countless times around board tables (both inside and outside of the real estate industry) where I have heard a director make a comment about how something being voted on does not work for the way they conduct their business. Or that they support a motion because it could benefit or have negligible impact. These comments should be met with an immediate course correction to question the impact on the organization, not any one person or business. 

 

The industry

 

Then there is the industry. In a recent LinkedIn post where I was sharing a REM article about technology advancements that I was interviewed for, I commented, “How do we innovate when the real estate industry is entrenched in the maintenance of legacy?” 

One answer to this question, and quite frankly, the only one that matters right now, is that leadership must be empowered to make decisions that consider the future state. Gone are the days of making decisions based on protectionism, holding onto what was and the “that’s the way we’ve always done it” mentality. Unfortunately, with so many holding onto legacy, that empowerment will never truly come. 

So, where does that leave us? Honestly, it leaves us exactly where we are. With leadership across this country making tough decisions that are contemplating where this industry is headed and looking to be strategic in their planning so we as an industry are best positioned for what’s to come. 

Whether it’s a policy or initiative at the federal, provincial or local level, these decisions are being made by our peers, leaders who are driving this industry forward. To them I say, make the decisions not based on what the members want, continue to base it on what’s best for the organization, even if the members don’t necessarily realize it. 

There will always be those who want to keep things the way they are and that’s fine. You are in a leadership position for a reason. Let’s continue to lead and do what’s best, first for our organization, and ultimately for our industry. 

 

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]]> https://realestatemagazine.ca/opinion-how-real-estate-leaders-can-drive-change-for-the-industry/feed/ 8 Opinion: Disaster is looming https://realestatemagazine.ca/opinion-disaster-is-looming/ https://realestatemagazine.ca/opinion-disaster-is-looming/#comments Wed, 26 Oct 2022 04:03:58 +0000 https://realestatemagazine.ca/?p=18993 The succession of the broker role is the largest potential disruptor to the real estate industry in the coming years

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]]> Stakeholders in the real estate industry love talking about disruption and speculating about who or what the next big disruption is going to be.

Well, allow me to provide my best guess – and it may not be what you think.

Technology has played a significant role in allowing our industry to adapt to change. The perfect example is when a global pandemic was declared, and like many industries, the real estate sector adopted new methods of leveraging technology to do the job more efficiently and minimize in-person interaction.

How real estate transactions are conducted continues to evolve, but the business structure of the real estate industry is under pressure for not evolving enough.

The regulated structure in Canada as we know it is quite consistent across the country – with minor regulatory and terminology differences between jurisdictions. A licensed individual oversees the actions of all licensed agents and personnel in the brokerage (in areas where regulation allows for it, larger brokerages may have several people in this role).

For the purposes of this article, we will refer to this individual as the broker. However, depending on the jurisdiction, they may be called the managing broker, broker of record, manager, etc. This individual carries most of the regulatory compliance responsibility and liability related to the actions of those they oversee.

The broker is being tasked with ever more regulatory oversite. Over the years, compliance requirements from the Financial Transactions and Reports Analysis Centre (FINTRAC) and the increasing number of disclosures placed on the industry have been added.

On top of that, there is evolving provincial and federal privacy legislation and the ever-growing complexities related to neighbouring sectors such as tenancy, development and condominium legislation. The pressures on the broker have grown exponentially in a very short period.

Canada’s traditional brokerage business model sees a commission split between the real estate agent and the brokerage. The portion of the commission split paid to the brokerage is meant to cover the costs associated with physical office space, support staff, advertising, brand or franchise expenses and, perhaps most importantly, all of the oversite, guidance and liability outlined in the previous paragraph. The commission split is part of what is used to attract agents to a brokerage, so providing a more favourable split to the agent acts as an incentive for agents to join a brokerage.

And therein lies the rub.

Deemed to be a differentiator for the brokerages, arguably, a low commission split does not give anyone in the transaction a competitive advantage. It may be more enticing for agents to join a brokerage but only at the risk of the industry entering its own race to the bottom.

Equally, a commission split that favours the agent does not provide the agent with a competitive advantage when marketing themselves to the consumer. So, we end up with the broker’s role becoming increasingly important and strained while the brokerage’s revenue cut diminishes.

Add to this the demographics component, and we are entering the territory of disruption like the industry has not seen. In British Columbia, more than 40% of brokers are over 65. Granted, the real estate industry is well known for the retirement age being something far exceeding the average, but this ratio remains staggering. Couple that with a sweeping reluctance of the next generation of licensees unwilling to take on the role, and it quickly becomes evident that disaster is looming.

The amount of responsibility, accountability and liability that comes with the broker role is not enticing for the compensation that brokerages are able to pay based on the current business model.

Succession planning for the broker should be high on everyone’s priority list right now. Nobody is immune to the impacts of a brokerage that is ill-prepared for the sudden or future departure of the broker.

Without a broker, the agents of the office cannot be licensed. Without a broker, the regulator typically has some mandated intervention. Without a broker, the clients’ listing and purchase contracts are disrupted. Without a broker, there would inevitably be chaos.

There needs to be a plan. As a broker, what is your plan for the brokerage if you cannot fulfill your duties tomorrow? What are you doing to prepare for the day you want to travel and enjoy more time with your family?

As a realtor or agent, do you know what your broker’s succession plan is? As an industry, if the regulator were to implement requirements to protect the sustainability of contracts and consumer impact, would we be ready for this?

The succession of the broker role is the largest potential disruptor to the real estate industry in the coming years, especially if nothing changes from the current model.

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]]> https://realestatemagazine.ca/opinion-disaster-is-looming/feed/ 17 “Master” or “primary”: A bedroom by any other name https://realestatemagazine.ca/master-or-primary-a-bedroom-by-any-other-name/ https://realestatemagazine.ca/master-or-primary-a-bedroom-by-any-other-name/#respond Mon, 31 Aug 2020 05:00:28 +0000 https://realestatemagazine.ca/master-or-primary-a-bedroom-by-any-other-name/ CREA recently announced it is creating the field “Primary Bedroom” on Realtor.ca. This would allow MLS systems across the country to feed their “master bedroom” data field to this display name on the public portal.

The post “Master” or “primary”: A bedroom by any other name appeared first on REM.

]]> It seems today that there are many social topics that have evolved beyond being taboo but remain in the realm of sensitive. I recently had the privilege of working through one such topic with my team. Collectively, they are some of the best folks a person could have the opportunity to work with and navigate all situations with professionalism, sensitivity and their own (calculated) candor.

As you may or may not know, the Canadian Real Estate Association recently announced it is creating the field “Primary Bedroom” on Realtor.ca. This would allow MLS systems across the country to feed their “master bedroom” data field to this display name on the public portal if they so choose. My understanding is that CREA’s motivation for this was based on public and member inquiry.

I think the rationale is evident but, to clarify, the term “master” (as a noun) can be, and is, defined in the following ways:

  1. A man who has people working for him, especially servants or slaves.
  2. A man in charge of an organization or group.

Source: Oxford Languages (italics are mine)

At one of the two real estate associations I support as executive officer, there had been requests historically to consider making a change to this terminology, but it carried little value if the display term to the public remained unchanged. Needless to say, when CREA made their announcement, we thought it a perfect time to bring it to our membership.

The response was very mixed.

I know that when the feedback “seems ridiculous” is provided by a member, they are not delivering it with ill will. Rather, they see the term master as non-threatening and simply meaning what they intend it to mean, the primary bedroom. What may be lacking from this consideration is that there are others, across this great country, whose experiences may lead them to see this term very differently, perhaps even as threatening.

A few mornings a week all the staff from both associations I work with get together for a virtual coffee and visit. This started as a COVID initiative but has continued. It was at a recent morning coffee that the group spent an hour discussing the terminology change, the polling of our membership and the responses we received. Three questions surfaced for me that I continue to contemplate:

  1. Do we as staff simply act based on the response from the membership? That is to say, we asked for their feedback, if they (majority of responses) agree with the change, we change it; if not, we don’t.
  2. Do we provide further information and context, or would that appear as though we are attempting to achieve a particular outcome?
  3. What is our role when it comes to lobbying for social change? Is it incumbent on staff to lead this narrative?

“If we hadn’t asked, nobody would have even noticed,” was one comment during our morning meeting. But that’s not the point, is it? If perceptions are going to change and if equal treatment will ever be achieved, then the narrative must change. I am happy to lead that conversation.

On this one, though we will not unilaterally make a change, we will continue to provide more information to the members so that they completely understand the impact of the seemingly insignificant change to one word or, even more importantly, the impact of not changing it.

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]]> https://realestatemagazine.ca/master-or-primary-a-bedroom-by-any-other-name/feed/ 0 How organized real estate must change https://realestatemagazine.ca/how-organized-real-estate-must-change/ https://realestatemagazine.ca/how-organized-real-estate-must-change/#respond Fri, 13 Mar 2020 07:14:43 +0000 https://realestatemagazine.ca/how-organized-real-estate-must-change/ We can agree that the role of the Realtor five to 10 years from now will look vastly different than it does today.

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]]> There is a future that exists without Realtors. We must be cognizant of this fact and contemplate other possible futures, which see the role of the Realtor different than it is today.

We often hear about the profound changes that the real estate industry has experienced and Realtors regularly comment about their difficulties in keeping up with the vast changes. Though change may be prevalent when all aspects of a Realtor’s day-to-day business is considered, I wholeheartedly argue that organized real estate has not undergone any change at all in the past couple of decades, and very little change prior to that.

Appreciating this may not be a popular opinion, I’ll put some context to it.

Realtors have gone from pagers to flip phones to smart phones. From sending contracts, to faxing contracts, to emailing contracts. Brokerages have become more efficient. Franchises have leveraged technology to offer more tools and better business environments for the Realtors who fly their flag. Regulation continues to evolve to accommodate a changing business landscape. Consumers, having access to more information, continue to demand more information.

What has changed relating to the role of real estate boards and associations across the country? Organized real estate was founded on the function of a central organization, designed to manage listing data so brokerages could work in a co-operative environment to sell each other’s listings. This started with collecting information and redistributing it back to the brokerages in printed form, typically catalogues.

With the introduction of the business computer, these catalogues were digitized and moved to an electronic format. Then came the short-lived fad known as the internet that created a new opportunity for the data to become interactive. Boards could now share the data with brokerages and Realtors in real time, allowing for the system to become more interactive and consumer friendly.

Organized real estate is built on managing property data. What has really changed?

Leadership within organized real estate across the country needs to accept that the evolution has been close to non-existent. We cannot be distracted by a false sense of progress because our members have experienced change in their environment. We must be visionary about what the future role of the Realtor is, where organized real estate fits into that role, and start to change to ensure relevance of both in the future.

So, what is our next move? We can agree that the role of the Realtor five to 10 years from now will look vastly different than it does today. This change will be predicated on the way the consumer will navigate a real estate transaction in the future.

I see the consumer gaining more control of their experience. Empowered by information and technology to support the security and flow of that information, the consumer will be in the driver’s seat and be far less dependent on outside participants (appraisers, mortgage brokers, conveyancers, lenders, insurers, notaries and potentially even Realtors). It is time to consider the Realtor as part of the entire real estate transaction continuum, rather than just filling one gap out of many.

This is only possible if organized real estate begins building the infrastructure necessary to create this future. Rather than waiting for the development of such systems, which could be less focused on the Realtor as part of the transaction, we need to lead these conversations, to ensure the continued viability of the Realtor.

There is a future that exists without Realtors. It is our job as leaders in organized real estate to ensure that is not the future that is realized.

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]]> https://realestatemagazine.ca/how-organized-real-estate-must-change/feed/ 0 Realtors and regulation https://realestatemagazine.ca/realtors-and-regulation/ https://realestatemagazine.ca/realtors-and-regulation/#respond Fri, 18 Oct 2019 05:00:08 +0000 https://realestatemagazine.ca/realtors-and-regulation/ Are Realtors proud of the fact that they are part of a regulated industry? Are they disappointed? Are they indifferent?

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]]> Are Realtors proud of the fact that they are part of a regulated industry? Are they disappointed? Are they indifferent?

I wouldn’t say that it is the former, nor the latter. And, I really want to believe that disappointment is not the emotion that is felt when considering the circumstance of their industry having regulatory oversight.

As a former Realtor who proudly wore a regulatory hat, I know firsthand the feeling of walking into the conversation of a group of my peers, only to have some immediately depart the group when they notice my name tag sported the word “Commission”. In fact, I distinctly remember a respectful conversation with our friend, Andrew Peck, at a Banff Western Connection social function where we debated this very topic.

There is no question that provincial associations and real estate boards across the country generally say all the right things when it comes to supporting their regulatory colleagues’ mandate of protecting the public. And, generally, I believe that these are not hollow sentiments. I think organized real estate supports the idea of holding our profession, and those who are in it, to a high enough account that the public feels safe and supported while they navigate the single largest transaction of their lives.

At the 2018 Canadian Realtor Association Executive conference in Montreal, I had the good fortune of joining some of my CEO colleagues on a panel about jurisdictional relationships between organized real estate and regulators. Then, in September of the same year, I hosted an inverse panel at the annual conference of the Association of Real Estate License Law Officials in St. Louis that saw a panel of regulators unabashedly discuss their relationship with Realtor organizations from within their respective jurisdiction.

What was evidently clear during both experiences is that there is a tremendous amount of respect from each group to the other. There is a lot of collaboration at times but an understanding that each have their stakeholders and there is bound to be lobbying and constructive disagreements.

But does the Realtor feel the same way?

With the consumer being exposed to more unregulated for sale by owner platforms, unregulated property advertising companies and unregulated technology, can the Realtor embrace this distinction and proudly promote the value that this differentiation offers their clients?

In my experience as a Realtor, as a regulator and now as an executive officer, the broad sentiment that I see from Realtors toward the regulator is negative. What if this mentality could be augmented slightly to provide constructive feedback to our regulatory colleagues when changes to the legislative framework are recommended, and positive messaging shared publicly to endorse the role that the regulatory structure provides in setting our profession apart from unregulated influencers?

Can organized real estate play a role in broadcasting this message?

Perhaps in addition to satirical ads that elude to the implications of not engaging a Realtor, or ads that contemplate the importance of choosing the right Realtor, there could be an awareness campaign that informs the public of the value in choosing the services of an industry that benefits from regulation, oversight and enforcement.

Beyond advertising campaigns, what can organized real estate do to create an environment where Realtors embrace and promote the benefits of the regulatory environment to clients and prospective clients?

Realtors and organized real estate are very good at ensuring the consumer understands that by engaging a Realtor, they are getting significantly more than just marketing of their property. I believe that the regulation of their industry must begin to be part of that narrative.

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]]> https://realestatemagazine.ca/realtors-and-regulation/feed/ 0 How small real estate boards can be leaders https://realestatemagazine.ca/how-small-real-estate-boards-can-be-leaders/ https://realestatemagazine.ca/how-small-real-estate-boards-can-be-leaders/#respond Fri, 10 May 2019 05:00:42 +0000 https://realestatemagazine.ca/how-small-real-estate-boards-can-be-leaders/ When I began my tenure, I was repeatedly asked the question, “Where are buyers coming from?” Being unable to answer the question, created the need for a solution that, I have to think, has been contemplated before.

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]]> I was fortunate to have an article published in REM recently; and even more fortunate to receive positive feedback and some challenging comments.

The intent of the article was to inspire those who hold leadership positions in the organized real estate arena to think creatively and not be constrained by the “way we’ve always done it” attitude. The intent was not to provide an answer to that challenge.

With that though, I was asked for a solution. What was my “creative thinking”?

When I began my role as EO at the Kamloops and District Real Estate Association (KADREA), something happened that set the stage for our little organization to do what was thought to be impractical and, in the process, had me eating my words. Initially preaching that KADREA was too small to be a leader in the profession and lacking the resources to create new technology, I was proven entirely wrong.

When I began my tenure, I was repeatedly asked the question, “Where are buyers coming from?”

Having an incredible amount of data at my fingertips, yet being unable to answer the question, created the need for a solution that, I have to think, has been contemplated before. Maybe somebody has done it.

In May 2018 we introduced the buyer postal code (zip code) field in the data entry that KADREA Realtors provide when they enter sales data into the MLS. Shortly after we turned it red (made it mandatory). Then we began the work of building the app.

Buyer Path offers a lot of information for KADREA members.

Buyer Path offers a lot of information for KADREA members.

Buyer Path provides Realtors the ability to see, at a glance, where buyers are coming from based on filters such as price, date range, location and property type. So, the example I give to illustrate the power of the application is: if a Realtor is listing an apartment condominium at $500,000, they can visit Buyer Path and determine exactly where buyers have originated for that type of property over the past six months and then target all of their digital marketing to that specific area. We can see trends, with the few months of data we have, that show buyers originating from different areas of the world at different times of the year for particular areas and property types.

Though it’s proving to be a powerful tool for our Realtors, it was realized as a result of a question from external stakeholders. Everything we do, we ask the question, “How does this positively impact the Realtor brand?” We are creating a process to share this information as a “snapshot” to municipalities, tourism groups, economic development authorities and others. All this static information will be branded with the Realtor mark to show that, as a community stakeholder, we continue to add value.

I have been extremely proud to show off Buyer Path to EOs and directors across the country (including presenting at CREA’s Technical Peer Group and, more recently, to the Greater Albuquerque Association of Realtors), but the platform, in and of itself, is not anything profound. When I demonstrate the app to someone with any level of technological savoir faire, they are unimpressed with the complexity of the application. However, no matter the individual’s coding competency, if they understand a Realtor advantage when they see one, their eyes (quite literally) light up.

My motivation to promote the app is not to get buy-in for the app itself. It’s to share the story of how a small organization can think differently to provide another resource for our Realtors, while continuing to create an environment for their success and the elevation of the brand.

When presenting the app to a group recently, I was approached after by a young, vibrant leader in organized real estate. He informed me that this won’t work in his board because the way they process sales won’t accommodate the collection of buyer postal codes. He also reminded me of how hard it is to get Realtors to change their ways.

Admittedly, I was disappointed, but I also understood because we are becoming victims of our own environment. If the first reaction is going to continue to be reflective of “the way it has always been”, change will be slow and the challenge for success will be greater.

By collecting, collating and leveraging just six characters of data, we have been able to put another proverbial arrow in the quiver of our Realtors. Going back to the original challenge for leaders in organized real estate to think differently, I’ll ask, what “six characters” are out there that could create the same result for your members?

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]]> https://realestatemagazine.ca/how-small-real-estate-boards-can-be-leaders/feed/ 0 Let’s be our own disruptor https://realestatemagazine.ca/lets-be-our-own-disruptor/ https://realestatemagazine.ca/lets-be-our-own-disruptor/#respond Mon, 01 Apr 2019 05:00:07 +0000 https://realestatemagazine.ca/lets-be-our-own-disruptor/ No longer simply an administrator for the membership, the boards, individually and collectively, must create an environment for Realtor success. Realtors need strategies to remain relevant to the consumer.

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]]> Is it naive to think that organized real estate’s current approach to the collection and interpretation of data will ensure its relevance, and that of the Realtor, as the industry and technology continue to evolve?

Quite simply, yes, it is.

The amount of data that is currently collected by third-party members related to real property, real estate trends, individual buyers and sellers, prospective buyers and sellers, the real estate environment and general market is growing and substantial.

What is the MLS but a searchable database of property characteristics? Big Data, defined as: “extremely large data sets that may be analyzed computationally to reveal patterns, trends and associations, especially relating to human behaviour and interactions”, is being leveraged on many platforms, in many industries. It is reasonable to think that this data collection on such a large scale could create a platform that mirrors the MLS, without our data.

Not too long ago, the taxi industry was disrupted by Uber, an innovation that provided the same service by new drivers. The hotel industry was disrupted by AirBnB, the same service provided by your neighbour. Why did this work? Putting the opportunity to offer the same service as regulated industries into the hands of average (unregulated) people provided more options for the consumer, with friendly, customer-centric utilities. It’s what the consumer wanted.

As Uber’s impact on the taxi industry became evident, established players that had been providing passengers with a means of transportation for generations realized action was required to protect their industry. Rather than look to innovation to compete with the realities of a new offering, their reaction was to complain, hanging the proverbial hat on regulation and resorting to blockading traffic, further enraging the consumer.

We need to learn from this. The real estate industry’s response to current and future disruption must be more intentional, innovative and effective. Those who find themselves in a leadership position representing the real estate profession must refuse to subscribe to this type of reaction. Competing and innovating, rather than complaining, must be the collective reaction if we wish to remain relevant and respected.

Unregulated models that provide consumers with choice and immediate gratification are already entering our space; look no further than iBuyers, gaining traction in the U.S. market and recently entering the Canadian landscape. These changes are beginning to see buyers and sellers connecting and navigating all aspects of a transaction, without the need for a third party.

That said, the challenge for the near future is not that real estate will be transacted without the involvement of an individual to facilitate the sale. The question is, will that individual be a Realtor? If that is the challenge, and if all those involved in organized real estate, at all levels, wish for the Realtor to remain central to the majority of real estate transactions, it is time to give the consumer new reasons to choose a Realtor.

What will keep the consumer engaged with Realtors? What will elevate the Realtor brand? What is the role of organized real estate to ensure the future still holds value for Realtors?

Traditionally, real estate boards and associations have served the same functions and considered themselves as “member services organizations”. In order to compete moving forward and change the overall perception of the industry, internally and externally, boards, directors and staff need to change this thinking. No longer simply an administrator for the membership, the boards, individually and collectively, must create an environment for Realtor success. In a competitive and innovative environment, Realtors need strategies to remain relevant to the consumer.

If we rely on research conducted for the industry over the years, coupled with recent experience in the U.S. where competition is more varied, there are two obvious areas where we could focus. The first is the Realtor brand: especially its emphasis on ethics and integrity, as this is the key to developing trust. Any true profession is characterized by standards and ethics that are enforced; unique expertise and a commitment to service.

The second is information, and while efforts are being made to replicate what we have, no single entity yet has the same accurate, up-to-date and credible data that we have in the MLS. How can we leverage the data we already have? Should our data collection efforts be more robust?

It has been proven time and again that the average consumer is becoming more savvy. They have greater access to information and leverage that access by becoming informed prior to any transaction. Is there a solution that allows the consumer to have access to more information currently retained by the industry, while elevating the value the Realtor contributes to the overall experience?

Innovation and creativity must remain the focus of anyone in a leadership position who can influence the mandate of organized real estate across the country. The industry must remain nimble, be willing to take risks and accept that there will be some failures along the way. It begins with a frame of mind.

As an industry, what is our next move?

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