REALTOR® Fees

Have you heard the news about the consent agreement between CREA (The Canadian Real Estate Association) and the Competition Bureau of Canada? The agreement followed a prolonged negotiation between CREA and the Competition Bureau of Canada as the Bureau claimed that CREA’s Multiple Listing Service® (MLS®) was a monopoly.


Well, what does this agreement mean? It simply means that now any home owner wanting to sell their own home can pay a fee to a REALTOR® to have their listing put onto the MLS site and then sell their house themself. This agreement may be advantageous to some, most especially if the home owner has solid real estate knowledge and marketing skills. However, for those selling their own homes without these skills, the agreement may be dangerous.

REALTORS® are well trained and educated professionals. They have a great deal of knowledge of contract law, mortgage financing, land laws and negotiation skills. It is not an easy profession. All REALTORS® must carry professional insurance and must continue their learning in order to annually renew their Real Estate license. It is also important to note that the REALTOR® does not keep the entire commission – the commission must be split between the seller’s agent and the buyer’s agent, then must be split again between the REALTOR® and their sponsoring company. REALTORS® pay a substantial cost for marketing of their client’s homes including advertising, websites, flyers, newsletters, etc. They spend time and gasoline taking clients to see properties, sometimes to no avail as the potential buyers, at any time, can decide they don’t want to buy a home. REALTORS® can also spend countless hours in back and forth negotiation between buyers and sellers.

To read more about the agreement and how REALTORS® earn their fees, click here
 
Until next time,
Jamie