Many of us have a love/hate relationship with change. Brace yourself. Among the latest disruptors attempting to flip the residential real estate industry on its head is Hyyve, a soon-to-be-launched Toronto-based platform where Realtors bid on residential listings, competing with other agents in what’s essentially a bidding war to get clients. 

Yes, you read that right. Agents pay upfront for the right to list a property. 

 Sellers keep the cash, regardless of the outcome

What’s more, homeowners get to keep the cash the winning agent bid, even if the property doesn’t sell.

Although bidding for listings won’t be everyone’s cup of tea, “It gives you a direct line to sellers who want to go to market,” points out Toronto boutique brokerage agent Dorian Rodrigues, who recently signed up. “It’s another way to generate business…and will inspire agents to put more resources towards the listing.”

The platform, the first of its kind in Canada, is currently taking agent registrations and is expected to launch in time for the spring market. If all goes well, the plan is to expand across the country. 

Not a brokerage, but a bold industry disruptor

Not to be confused with a brokerage, this is a system designed to disrupt the way sellers choose a Realtor, with an added incentive for them in the form of bid cash from the agent in advance of a sale. For agents, it’s a different twist on lead generation. The expectation is that this seller-friendly approach may appeal most to tech-savvy, cash-pinched younger sellers in their 30s and 40s, who may not have strong established connections with a Realtor. 

Agents must pay a monthly subscription fee to place bids on Hyyve (reportedly a few hundred dollars per month on average).

Weighing the pros and cons

Potential pros and cons are being weighed up by industry experts. Re/Max Canada president Christopher Alexander thinks that the Hyyve platform is likely to be a complement to the industry, providing more choice for sellers. But he adds that the risk that some homeowners on the platform might “prioritize agents based solely on price” rather than on expertise could be problematic.

Patrick Armstrong, who co-founded Hyyve along with fellow entrepreneur Kirstin Thomas, agrees that’s a valid concern. But the platform is designed “to encourage sellers to consider overall value rather than just price,” he insists. 

“Listings are inherently valuable and are something that should be monetized and controlled by the home seller,” Armstrong maintains.

He adds, “We don’t typically label ourselves as industry disrupters.” 

Almost everyone else does though. 

With Hyyve, Armstrong asserts, agents gain access to a wider client base and high conversion listings, while “sellers benefit from upfront cash, better agent competition and increased transparency.”

Transparency is what attracted registrant Leo Naiman, co-owner of a Toronto flat-fee brokerage. “Too many details are unclear in a regular deal,” in his view. “I’m all for any move towards more transparency in the industry.”  

 A draw for sellers and Realtors?

Here’s how the platform works. Sellers upload their property details free of charge. Then agents can submit detailed bids that give a comprehensive description of their credentials, sales plan, and the services they’ll provide—marketing, staging, perks, terms, etc.—along with the commission and bid amount they’re offering to secure the listing. (Agents can’t see each other’s bids.) 

Homeowners choose the best bid for their purposes based on this information. The expectation is that sellers won’t necessarily just go for the agent offering the highest bid and lowest commission, but instead will focus on who’s most likely to move the listing. But that decision is entirely up to the homeowner. Armstrong points out though, that “agents who overbid and under-perform will quickly lose credibility.”

He’s aware that the open bidding process means Realtors “may face stiff competition, especially from well-established agents or large teams with greater resources.” But he believes the Hyyve app can also be a boon for newer agents, allowing them to “stand out by offering creative bids, detailed sales plans and additional services that differentiate them.” 

Hyyve takes a cut 

Once a bid is accepted and certain conditions have been met to ensure that it’s legit, Hyyve takes its full commission of 30 per cent from the winning bid amount. The rest goes to the homeowner. For instance, Armstrong explains, if an agent’s successful bid is $1,000, Hyyve—which doesn’t touch the agent’s commission—takes $300. The remaining $700 goes to the homeowner upfront.

Hyyve’s job is then done and the listing falls into the regular system.

Sellers potentially stand to make much more than this. Armstrong says that in countries where similar marketplaces exist, research shows that listings can earn up to 0.65 per cent of the expected sale price. That’s $6,500 on a million-dollar home. 

On the platform’s website, it’s noted that agents in these competitive bidding situations often reduce their commission and offer additional services. That’s encouraging news for sellers, not so much for agents.

 It’s true that homeowners can keep the bid cash even if the property doesn’t sell, although there are stipulations to protect the agent from seller non-compliance. Armstrong explains that if the homeowner breaches the listing agreement by such actions as failing to facilitate showings, not cooperating or trying to fire the agent without cause, “they forfeit the bid cash” and the agent is refunded.

Safeguarding against misuse 

As for the potential issue of a client repeatedly listing the same home with Hyyve just to collect bid amounts, the platform does its best to prevent this by such measures as monitoring listing patterns and having clients meet strict eligibility criteria, says Armstrong. 

“If a seller repeatedly lists without genuine intent to sell, they can be barred from the platform.”

Cloud-brokerage Realtor, podcaster and REM columnist, Daniel Foch believes that Hyyve is a “game changer,” giving agents a centralized place to compete while providing clients with a consumer-first approach.  

He recently became a member of Hyyve’s advisory panel. His reasons?

“I want to be part of anything disruptive in real estate.”

Canada and Australia have much in common. So you could be forgiven for thinking that their respective real estate industries do too. On the whole, though, you’d be wrong. 

Okay yes, both nations could be described as heavily regulated ‘nanny states’ where the real estate sector is concerned. 

Both require real estate agents to be licensed.

Both contain some of the world’s most unaffordable cities. 

And current market conditions in the two countries are comparable, with housing supply shortages and affordability issues; various foreign buyer restrictions; tenancy reforms; and escalating purchasing and carrying costs factoring into an investor exodus in certain areas. 

But the similarities drop off from there. 

No MLS? No buyer agents?

For starters, real estate agents are rarely referred to as Realtors; it’s uncommon to hear that word Down Under. 

And in Oz there is no standardized MLS platform, notes Charles Tarbey, chairman of Century 21 Australia, based in Sydney, the country’s priciest housing market.

While agents are hired by sellers, it’s unusual for buyers to have one. If they choose to do so, it’s at their own cost, since as a rule the commission only goes to the selling agent. “The selling agent takes a listing, generally exclusively, and controls the process in-house,” including managing the pool of potential buyers, says Tarbey     

Salaried agents and minimum income

Commissions vary widely, with 2 per cent being average, according to Tarbey. But here’s the thing—agents in Australia may be salaried, especially those who are new to the business. A minimum threshold income (reported to range from about $45,000 to $60,000) needs to be met before agents can go to a commission-only model.

While this can launch office overheads into the stratosphere, Tarbey affirms that it gives agents “the opportunity to start full time in real estate and be paid accordingly, both in salary and commission bonus potential.”

Good on ya, as the Aussies say. 

On the downside, with agents in these situations essentially being full-time employees, labour laws in Australia make it harder to remove non-performers, Tarbey adds. 

Australia’s unique sales methods

Here’s another unique Aussie curveball—real estate sales methods vary, with auctions being among the more widespread.  “Melbourne has a strong auction culture, for example,” notes Tarbey. 

Misrepresentations around price can be an issue, but a reliable auction company will insist on transparency. 

“Typically the auction is held around four weeks after the property is first listed online, with an indicative price range provided. During this time, there are open inspections and private viewings can also be arranged. To bid at auction, buyers must have their deposit ready and their settlement terms confirmed with the agent and the seller,” explains Melbourne-based sales rep and auctioneer Melissa Baile, who’s with premium property brokerage Marshall White.

Buyers see the bidding process in real time. Stresses Baile: “Importantly, auction sales are unconditional, meaning there is no cooling off period either three business days before or after the auction.”

Another common sales technique is inviting buyers to inspect a property and submit their best offer by a set deadline. The seller will then decide how to proceed. This method is dubbed “expressions of interest,” Baile notes.

“While the variety of sales methods gives sellers the flexibility to choose the most appropriate strategy for their property, it can sometimes create confusion for buyers, as there isn’t a single standardized process for navigating the purchasing journey,” she observes. “There is room for improvement in streamlining the various sales methods, particularly in terms of clarity for first-time buyers.”

Misrepresentation and underquoting in property listings

Another issue in the industry is under quoting, where properties are listed below their expected market value in order to attract competing bids, Baile adds. This type of ‘bait’ advertising isn’t uncommon in various Canadian markets, but it’s seriously frowned on in Oz. The practice continues to be actively investigated by the federal consumer protection agency, “imposing fines and penalties on agents found guilty,” says Baile.

Money laundering is also reported to have long been an issue in the industry, and new legislation is addressing that.

Taxation, debt levies, and the investor exodus

Baile believes that the most significant challenges affecting consumer confidence include elevated interest rates and changes in government taxation. Hardest hit reportedly are Melbourne and the rest of the state of Victoria, where owners of investment properties are slapped with a post-pandemic debt levy intended to help the government recover pandemic-related costs. 

Along with this, “investors are facing multiple challenges, including increased land taxes, rising council rates, higher compliance costs,” as well as spiralling maintenance fees (called body corporate rates there) and tax on home purchases, Baile continues. “As a result, many investors are choosing to exit the market, which has created opportunities for new entrants,” who see this as a prime time to buy.

She adds, “There may be advantages in securing properties at more favourable prices. However, this trend has also contributed to a surge in demand for rental properties, as fewer properties are being added to the market, driving rental prices up and increasing competition for available rental stock.”

Homebuyers leaving big cities

Rising numbers of homebuyers choosing to move away from big cities is another notable trend.

Like much of the globe, Australia is battling shifting cross currents. Shane Oliver, one of Australia’s chief economists, recently went so far as to note that with America’s second Trump presidency, a global trade war with huge stakes for Australian homeowners could be imminent.

Despite concerns, Joel Davoren, managing director of Re/Max Australia, has confidence in the Australian system. “It’s incredibly competitive. It is not a part-time industry,” he maintains. “We are professionalized and advanced. A lot of tech innovation is launched from the Australian market…Typically our real estate businesses also operate property management departments. This adds significant resourcing pressure but is also a fantastic revenue wealth opportunity.”
Fingers crossed that the Aussie catchphrase ‘no worries’ prevails. 

To mark 35 years of Real Estate Magazine, we’re sharing articles from past issues. This article appeared in issue #91 in January 1997 and was written by Kathy Bevan and Susan Doran.

How will real estate fare this year? What changes are in store for the industry itself? REM’s Kathy Bevan and Susan Doran asked real estate experts across the country for their predictions.

Tom Bosley

President, Canadian Real Estate Association
Toronto

“I think 1997 should generally be the same or slightly better than 1996, and 1996 was a pretty good year. We’re still seeing markets that are not as much interest-rate driven as consumer confidence-driven, but we have too many strengths going for us right now to have anything but a good market. Volume should be up by about three per cent; prices may go up by about two to three per cent in some parts of the country. We’re going to see a shortage of good product create a bit of a vacuum in some parts of the country as well.

“Technology will still have the greatest impact on our industry this year. The number of salespeople leaving the industry will stabilize, and we’ll see younger ones starting to take over a greater share of the market. One good reason for that will be their better understanding of technology and how it can help them do business better. This has never been an easy industry in which to make money, and that won’t change even with better markets, so salespeople need to use all the tools available to them.

“We’re seeing a number of provinces now with self- or co-regulation, and that should include Ontario within a year. That has moved our industry toward stronger educational requirements for Realtors. That’s good for everyone because it means stronger professional standards for our industry.”

Don Lawby

President, Century 21 Canada
Vancouver

“In markets across Canada, we’re expecting a good spring and a strong fall because of the economic conditions and current interest rates. We’re going to see a continued recovery in eastern Canada, particularly Ontario, with four to six percent price increases. Quebec should see a fairly good market this year too, but no price increases. Most other areas should see pretty stable prices. Atlantic Canada, Manitoba, Alberta, and Saskatchewan we see performing fairly much as they did last year. The lower mainland area of B.C. will be a trouble spot because the prices continue to be too high for the houses on the market here. We’re also experiencing some political uncertainty provincially, which is being reflected in a lack of consumer confidence.

“The issue that will have the most impact on our industry this year will be the increasing competition between real estate companies. We will continue to see organizations move to more recognized national names. The real estate business has been through some tough times, and it will continue to be a tough business to be in. Brokerages will see more pressure to run financially sound operations, while salespeople continue to press for the best deal they can get. We’ll see continued movement by some companies, ourselves included, toward the one-stop shopping approach to serving consumers—making transactions as convenient as possible for everyone concerned. The impact from this movement won’t be immediate, but it will be felt over time.”

Tom Clark

Vice-President & COO, HomeLife Realty Services
Toronto

“We’re expecting more of the same in 1997—a good market overall. The emergence of first-time buyers should continue, with stable interest rates and good affordability. Alongside that, we expect to see that a significant number of former first-time buyers will be moving into their second homes this year. That should have a very positive ripple effect on the market.

“I don’t think there will be a significant influx of new salespeople entering our business, although a number who have been outside the industry for a while may re-enter this year. I think the industry as a whole will still see some shrinkage this year. There will also be a lot of talking behind the scenes between real estate companies regarding mergers and consolidations.

“The factor that continues to have the greatest impact on our industry is computerization—Internet, Intranet, email and so on. All of these communication tools will result in some innovative ways of marketing. Notwithstanding all of this technology, however, brokerages will still have to provide a very professional level of service to consumers—that’s the real bottom line. We need to continue to educate the public about the benefits of home ownership, and the services we have to offer.”

Gilles Lauzon

President, Countrywide Realty Quebec
Gatineau, Quebec

“I expect residential real estate will be good next year, but with only a small increase, if any. This year (1996) was better than 1995; it would be impossible to be worse, and 1997 should be the same or better than 1996.

“In the residential market in this area, homes under $100,000 are selling very well. The market segment of $100,000 to $150,000 is good, but not great. Over that, it’s tougher. Homes priced over $200,000 are only about six or seven percent of the market. The average house price in the area is about $88,000.

“The commercial market is a longer story. Prices are very low. But in this region, things are growing fast because of the many big chains that are opening up in Gatineau—Price Club, Walmart, Canadian Tire, Winners, Zellers. Over two million square feet of commercial space has opened up in the past 18 months. But for small companies, business is not so good—there is too much competition from the big guys. So the prices of small commercial buildings are going down.

“The presence of the federal government in nearby Ottawa where there’s been lots of job cutting will not have a positive effect on the market here—although the government already has cut what it’s going to cut, I think. But on the other hand we have all the new commercial development in the area, so the market will be stable next year.”

Colum Bastable

President and CEO, Royal LePage Real Estate
Toronto

“The continuing low interest rates are obviously good for residential markets across the country, and they seem to be giving everyone a boost in confidence. We’re expecting these low rates to continue at least into mid-1997.

“…we should see a good year. We should also see some price increases.

“With the continuing low interest rates, and given the support that we’ve seen for housing in the new federal budget, we have strong supporting demand, so prices could edge up one or two percent in parts of the country. In Ontario, the markets are recovering from the recession; prices are not yet at their peak but continue to rise in certain pockets like Toronto. For the West, we’re looking at a mixed bag. Vancouver remains active but affordability remains an issue, which has led to some softening of the market.

“There are also some consolidations taking place in the U.S., and HFS is shifting its focus away from real estate toward the hospitality industry. These moves may bring new ideas and partnerships into Canada, helping with marketing or business efficiencies. But ultimately, consumers are the ones who will benefit most from competition and innovation as the markets continue to evolve.”

Harold Waddell

President and CEO, Realty World Canada
Burnaby, B.C.

“Our brokers and sales associates are predicting this will be a good year across the board for real estate in Canada. We don’t expect much of an increase in prices across the country, with a few exceptions—perhaps one to two percent, perhaps three percent in certain areas.

“In B.C., we’re predicting tremendous growth, good growth in Alberta, Saskatchewan and Manitoba and a resurgence in Ontario. What we should see everywhere are good, steady markets, which overall are a lot healthier than the wild rides we’ve seen in the past.

“I think we’ll continue to see a great impact from first-time buyers, and baby boomers paying off debts. We’ll need a lot of new product to meet increasing demand. I suspect we’ll continue to see some shrinkage in the numbers of salespeople working in our industry, and that will continue over the next five years or so.

“Technology will continue to have an impact on how our industry performs. The Internet is just coming into its own with salespeople and brokers, and we’ll all have to keep on the cutting edge to take advantage of everything technology has to offer.”

John Bearden

President, Coldwell Banker Affiliates of Canada
Toronto

“The revival in the market is going to continue in a strong way this year. Affordability is the best we’ve seen in a long time, and there’s a strengthening happening in consumer spending that I predict could be some eight percent higher than spending last year. Prices should move up about two and a half percent, and mortgage rates might move downward another quarter to half a point over the year. We’re going to continue to see a real strength in first-time homebuyers, and I think that could lead to an exceptionally strong move-up market as well, and those two segments will be the primary impetus for our markets this year.

“There are three factors I believe will impact our industry in 1997: technology, ongoing consolidation at all levels within the industry; and the choices salespeople themselves will be making. Technology’s importance is really how it is integrated into the service we’re providing to our customers. Over the next two years, salespeople are going to be increasingly inclined to access the Internet and use technology (such as laptops) right in the face of their customers.

“Consolidation of real estate firms, and salespeople within those firms, will be a strong factor in how our industry performs this year. Brokers looking for ways to increase their margins will continue to consolidate, merge, and acquire. The top 10 to 15 percent of salespeople will capture a larger share of transactions than ever before. Salespeople will also be taking a hard look at the services their brokers provide and the costs they incur. They will be seeking to better themselves through concise, contemporary learning opportunities to get every edge they can.”

Bob Cherot Jr.

President and CEO, Re/Max of Western Canada
Kelowna, B.C.

“We’re expecting a good year in ’97, with markets in Saskatchewan, Alberta, and Manitoba leading the pack. B.C. should have a more normal market than last year—a good market, without extremes.

“Alberta should really be our shining star, especially in terms of sales. Markets there are being led by Calgary, where CP’s new corporate headquarters and thriving oil and gas companies are having a positive effect. In Winnipeg, condo developments are really taking off. There and in Saskatchewan, people are taking a second look at where their dollars go when they’re about to retire. They’re thinking about downsizing, rather than moving away, and taking winter holidays in the sunny south when it’s too cold up here.

“As for impact on our industry this year, in a word: technology. It seems whenever you get close to the turn of a century, something major changes. For us, that change is technology. We’ve got teenagers surfing the Internet. They’ll be out in the workplace soon and leading change. If real estate salespeople and brokers don’t keep themselves abreast of these developments, we’re all in trouble. This doesn’t just mean knowing how to use the tools but understanding how to leverage them effectively to serve clients better.”

To mark 35 years of Real Estate Magazine, we’re sharing articles from past issues. This article appeared in REM’s 100th Issue in October 1997 and was written by Kathy Bevan and Susan Doran.

To be a Realtor 20 years ago, you needed a pen, a calculator, a sturdy briefcase, a set of wheels to transport you and your clients to listings, and lots of quarters for pay phones along the way.

Today’s Realtor still needs that trustworthy pen, that calculator, that set of wheels. But now Realtors also need modems, cellular phones, fax machines, and likely carry two briefcases—one for paperwork, the other for a laptop computer.

As Realtors have evolved, so have their demands upon organized real estate. How those demands are being addressed has led to an industry-wide re-examination of organized real estate.

Two years ago, CREA was singled out for blistering attacks by several boards, which sent it scrambling to justify its annual fees. But the underlying problem was much broader and more evident at the grassroots level of organized real estate. Boards themselves were coming under the increasingly critical scrutiny of their own members, and their structures and fees were under assault as well.

Real estate companies began questioning overlapping jurisdictions, duplication of services, multiple board dues, and what they saw as the undue haste with which costly new technology was being introduced at the board level. Everywhere, it seemed, dues-paying members were asking, “Just what am I getting for my money anyway?”

“The dissatisfaction people began voicing shouldn’t really have caught organized real estate by surprise, because it had been occurring in all facets of life,” says Al Demings, executive officer at the Halifax-Dartmouth Real Estate Board (HDREB). “People everywhere were questioning the value they were getting for their money. Consumers moved over to discount stores looking for better value, but they’ve come back to local stores for better service.”

What service does organized real estate provide to keep its members coming back?

The most obvious answer is the MLS system.

“Canada has the most successful MLS system in the world,” says Jim McKeown, associate broker at Coldwell Banker Rhodes and Company in Ottawa. “What surprises me is how quickly we’ve forgotten what MLS has done for all of us. If there’s anything wrong with organized real estate right now, it’s that it hasn’t sold its members on the value of MLS and the other services it provides.”

Some Realtors may not be aware, or interested, in the inherent value of the MLS system, but the boards that provide MLS data to their members know its worth all too well. Many boards have been reluctant to share their data with neighbouring jurisdictions, for fear they’ll lose control of their most valuable asset.

“There is a problem with territoriality—so many boards see MLS as such an important part of what they’re all about, that they can’t envision a world where they aren’t fully in control of their own MLS service,” says Demings. While Demings admits his board would be greatly downsized if it didn’t have MLS responsibilities, he believes HDREB is much more than just an MLS provider. “We’re here to ensure the highest professional standards are maintained, that there is cooperation and good networking opportunities, and that consumers get the best quality service,” he says.

The Halifax-Dartmouth board, while recognized as being one of the most successfully progressive boards in the country, has had its share of criticism, largely due to its emphasis on being a “cutting edge” organization.

When the board brought in a new Compass online system two years ago, it belatedly discovered the modems most of its members were using weren’t very compatible. Board staff spent two months running around the city, re-setting office modems. When HDREB was one of the first boards to switch to electronic lockboxes, it ran into unexpected difficulties again. The initial keypads had a fault, and by the time the error was identified, HDREB members were in an ugly mood. The board redeemed itself somewhat by giving all the lockbox owners an unconditional guarantee: if it malfunctions, it would be replaced at no cost to the Realtor.

The Toronto Real Estate Board (TREB) didn’t have the same perseverance, and unlike HDREB, did not make its new electronic lockbox system mandatory. After a testy initiation period where few Realtors signed on for the new system, TREB chose to mothball the lockbox collection.

The lesson for both boards: being on the cutting edge can sometimes be injurious to your health. TREB has since decided it can’t afford to experiment with new technology—it’s trying to go with “tried and true” from now on.

Concerns about cost-cutting have brought some small boards into data-sharing agreements with large boards; fears of membership erosion and resulting increased fees have kept other small boards away.

MLS data sharing

Boards in outlying areas are also concerned about “big city poachers” coming out to sell their listings and undercut their members’ ability to earn a living.

“Our people don’t want ‘weekend Realtors’ heading up from Toronto to try to sell properties where they don’t understand issues like septic tank systems and shore access,” says Chris Hundley, president of the Muskoka Real Estate Board, north of Toronto. “We’d rather keep our MLS system a closed one than open ourselves up to that kind of problem.”

Al Demings of HDREB has heard similar arguments, but he doesn’t think they pose a long-term threat. “You might find a Halifax Realtor making that two- to three-hour drive to try to sell a property in an area he doesn’t know, but you won’t find him doing it twice. It’s not worth the time, or the risk of dealing in unfamiliar properties.”

In provinces with small numbers of Realtors, organized real estate is also being pressured to move toward regional MLS systems.

“We only have about 1,400 Realtors in Nova Scotia, so it would be very practical for us to have just one MLS system,” says Sandy Rutledge, broker/owner of independent Domus Realty. “In outlying areas where there isn’t a good local MLS system, people just don’t join. That’s something a regional MLS system would help solve.”

In Manitoba, with only four real estate boards, discussions have been underway for several years about forming a single MLS system to serve the entire province. All four boards entered into an interboard listing agreement in 1987, but have yet to take the final steps toward a regional system.

“A single MLS system is definitely doable here—the question would be: would the smaller boards survive?” asks Winnipeg Real Estate Board’s executive director, Gary Simonsen.

“A regional MLS system has been part of our strategic planning discussions since 1993,” says Brian Collie, executive officer of the Manitoba Real Estate Association. “But we have to come up with a plan everyone can live with.”

In B.C., northern boards such as the Cariboo Real Estate Association (CAREA) keep in touch with their southern counterparts through data-sharing agreements that, in effect, give Realtors in that province the equivalent of a regionalized MLS system.

“Between the VanDat system and our other software hookup, Wave, Realtors in almost all of B.C.’s 13 boards can do search listings right across this province,” says CAREA executive officer Dorothy Friesen.

The London and St. Thomas Real Estate Board (LSTREB), formed by a merger back in the 1950s, has signed agreements with 10 surrounding boards to share MLS data.

“The trend is toward MLS ‘pods’ being formed, where central organizations such as ours become the data supplier to outlying areas,” says Betty Doré, executive officer at LSTREB. “And the Internet, once it gets fast enough, will provide the way to link us all together, right across Canada and North America.”

Fear of the Net

Not all boards are looking forward to using the Internet’s future potential. The fear still lurks that the Internet will somehow swallow up the MLS system whole if it is allowed increased access. Recent announcements that Microsoft intends to offer consumers a new Internet real estate service and that AOL has joined forces with RealSelect to set up their own Internet home listing service have just added to those worries.

“There are definitely concerns about how much longer organized real estate can keep a stranglehold on MLS information,” says Sandy Rutledge, broker/owner of Nova Scotia independent firm Domus Realty. “But saying the industry won’t share its MLS is a bit like Bell Telephone saying it won’t share its phone lines with resellers. It can’t remain in a monopoly position forever.”

Yet what some see as a threat, others see as an opportunity.

“The Internet will work for us, not against us, as Realtors,” says Jerry England, president of TREB. “Consumers may soon be doing a lot of their initial purchasing research on the Internet, but they’ll still want a Realtor to help them buy and sell their homes. This is a people business, and the Internet will never replace the human, one-on-one interaction that lies at the heart of this business.”

CREA president Tom Bosley has been seeking to extend that human, one-on-one interaction down to the grassroots level of organized real estate—to the Realtors themselves. He has appealed to provincial associations and local boards to be allowed to interact directly with Realtors, in an attempt to create a better understanding of just what CREA, MLS, and the title “Realtor” should mean to everyone in the real estate industry.

Not all associations or boards have welcomed Bosley’s and CREA’s efforts. Here, too, territoriality comes into play. But the CREA message does have its supporters.

“What does it cost most of us to belong to CREA, a provincial association and our local board—about $1,200 a year?” asks Jim McKeown. “That’s a pretty small fee for what we get. I mean, how can you put a price tag on the confidence consumers have in our MLS system? And ultimately what the public sees is the MLS—not the board, not the association—they see that MLS sign, and they call us up.”

Even boards that don’t agree with CREA’s direct approach see the value in organized real estate working together, as long as everyone is working toward the same goal.

“Circling our wagons around our members’ best interests can be a positive action, if we all point our guns outward, toward forces outside our industry which threaten us,” says Brian Smith, executive officer at TREB. “It’s when people start shooting inward that we have real trouble.”

To mark 35 years of Real Estate Magazine, we’re sharing articles from past issues. This article appeared in issue #208 in October 2006. Susan Doran still contributes to REM.

“Do you know what the headline for this article will be?” asks real estate broker Sunny Daljit during our interview. “It won’t be ‘The monk who sells real estate’ will it?”

I assure him that that headline is unlikely—although the truth is REM’s editor has pointedly asked me to get the lowdown on this monk business.

Daljit, who is now CEO/team leader for Keller Williams Ottawa Realty (KWOR), woke up one morning about 15 years ago to the realization that he wasn’t happy.

“I had a mid-life crisis at 24,” says Daljit, now 39.

He had gone into real estate in Ottawa against the wishes of his East Indian parents, who were eager for him to be a doctor, lawyer, or some other type of professional. (This despite the fact his mother is a Realtor herself. His retired father was a director with Agriculture Canada, which used to prompt Daljit’s mother to remark that he was an expert on the sex life of corn.)

Daljit soothed his parents’ fears by making a success of himself—in fact, becoming a top producer—in the real estate offices where he worked.

“I was living out what people said you should,” he says. But he wasn’t fulfilled. So he changed his lifestyle, became a vegetarian, and read a lot of books on spirituality.

Eventually, he took a leadership course offered by an India-based non-profit spiritual organization. Inspired, he took a three-year leave of absence from real estate and moved to India, where he trained with the organization, became a teacher, and eventually, a sannyasin, which he explains is essentially a monk.

He renounced all material wealth, selling off his property back home and donating the proceeds to charity, mainly to assist with village development in India, the chief cause of the organization he was with. He travelled from village to village, teaching and doing humanitarian work. But he began to feel there was an element of escapism to it all.

Near the end, he was in meditation in a monastery and didn’t speak for 60 days.

He felt increasingly cut off from day-to-day life. Then he read the book Jonathan Livingston Seagull and—identifying with the theme that teaching others is more beneficial than disconnecting from them—he moved back to Ottawa with hopes of finding ways to make business less soulless.

He started Centre Path, a consulting company focusing on spirit values and leadership in the workplace. “I thought if you could transform business, you could improve the world,” he says.

He got an MBA and moved to Toronto for a three-year stint as national director for a Royal LePage customer service platform before he was finally offered a job that truly fit his personal philosophy.

The life-changing phone call came in 2004 from Jeff Hooper, principal owner of the Keller Williams Ottawa office, which had opened in 2001 but was in need of some restructuring.

After looking into the company and liking what he saw, Daljit moved back to his hometown of Ottawa along with his family. He initially joined KWOR as a temporary consultant. But he wound up a partner after spearheading successful major changes that helped propel the company to its current position as one of Ottawa’s top-10 fastest-growing companies and one of the best workplaces in Canada (according to *Canadian Business* magazine). As well, the *Ottawa Business Journal* recently recognized Daljit as one of the Top 40 under 40 CEOs.

Well-known in the United States (Real Trends magazine ranks it as the fourth largest real estate company in North America), the Keller Williams franchise is not as recognized here, although the company has made remarkable strides. It now has 12 Canadian offices. When Daljit came on board, there were only two.

KWOR is the number one Keller Williams office in Canada, he says. It currently grosses more than $16-million in revenues, and has about 600 listings and 160 agents, with plans to double the number of salespeople within three years.

What Daljit immediately liked about Keller Williams was the depth of thought that has gone into its philosophy and business model.

“The fact that the company puts family and spirituality ahead of work was a main driver for me,” he says. “It’s a holistic way of thinking. There’s a sense of meaning and purpose. You’re not on a treadmill.”

That’s apparent from the fact that associates automatically have a portion of their commissions put into a charity fund. Daljit is proud to have been instrumental in ensuring that that money goes to under-funded charities that “are not on the radar screen.”

Raising the company’s profile should be a byproduct of charity work, not the goal, he says.

As it turns out, another byproduct of “making people better and more self-actualized is that they actually make more money too,” he says. He’s hopeful that the company’s innovative approaches to training, compensation, and technology, and its focus on teamwork and respect for the individual, point business in a new direction. Through a council of top producers, Realtors share in decision-making. And 50 percent of brokerage profits are also shared, via a bonus system for agents who refer new Realtors to the office.

“This gives all agents a vested interest in helping each other,” says Daljit, because the higher the company profits, the bigger the referral bonuses. The company’s compensation package is good as well.

KWOR also invests in cutting-edge technology, including an integrated messaging system that allows Realtors to have easy access to all types of communications and information. And the office itself is plush so that Realtors have an outstanding work environment. It also has an in-house mortgage service and client service network.

For Daljit, the system works.

“This is the first time I can say that my business and personal life are in balance,” he says. “We’re all making a difference in the world whatever way we feel called to.”

After much speculation as to whether the Toronto real estate market will be able to absorb the sea of condos that have popped up, it seems that—at least for now—the answer is no. 

Between unsold new development, assignment and resale inventory, condo supply in the Greater Toronto Area is stratospheric. Listings are way up. Toronto’s condo market has been in a slump for a while now. There’s confusion and anxiety in the sector along with historic levels of backlog, being blamed on everything from developers getting carried away to borrowing costs and tightening market conditions. Whatever the causes, many Realtors maintain that their condo listings are barely getting showings. Investors and end users are terrified and gun-shy.

GTA currently sitting on an “unprecedented” supply of condo units

The condo market “is facing its toughest challenge in decades,” says Shaun Hildebrand, president of the real estate consulting firm Urbanation. “Investors are inactive and end-user buyers currently have plenty of lower-priced options to choose from in the resale market. It may take a while, but conditions will gradually improve as developers hold back supply, construction inventory continues to drop, and demand rises with declining interest rates.”     

According to Hildebrand, condo supply in Toronto is currently at least three to five times the norm, with a combined total of nearly 40,000 condo units in limbo across all categories. He’s been quoted stating that this is an unprecedented backlog—a level “the market has never seen” which could take years to absorb. 

Condo sales down 80% annually

New condo sales in the GTA have plummeted by over 80 per cent from last year and are at a 30-year low, according to Urbanation’s 2024 third-quarter report.

“Approximately 50 per cent of existing GTA condos are owned by investors, but at current mortgage rates and rental yields, it’s hard to make the cash flow economics work, resulting in many investor owners looking to sell, and likely further slippage of prices,” states Benjy Katchen, CEO of Wahi, a digital real estate platform.

With the hope that sales improve in the coming months, there’s much expectation focused on the spring 2025 market. A number of recent reports contend that the market is already showing signs of rebounding.

“We’re starting to see demand picking up but there’s still lots of inventory and prices are still up,” says Jason Mercer, chief market analyst for the Toronto Regional Real Estate Board (TRREB). “Sellers may be reticent to drop their price if they can hold on, knowing more buyers are probably soon coming on board.” 

Rate cuts will bring buyers off the sidelines

October showed a promising uptick in transactions in some market sectors. But people “need to see interest rates come down even further,” Mercer believes. “As interest rates drop off, a lot of inventory will be absorbed.” 

He expects we’ll continue to see rate cuts. “A lot of people would have purchased in the last year but they’ve been waiting.  There’s pent-up demand.”

The abundantly-supplied condo market means there’s choice and greater affordability for buyers, who are now in the driver’s seat with the luxury of shopping around until they find exactly what they want. But the picture is anything but rosy for sellers.

Navigating the market as a Realtor

How can Realtors navigate this oddball market?

First and foremost, make sure that the unit being sold looks its best and is priced right. Many sellers are still looking for a higher price point, but the reality is they’re unlikely to get it.

“If the majority of sellers would drop their price 5 per cent, we’d see a lot more happening,” asserts ReMax Hallmark’s Christopher Bibby, one of Toronto’s top condo agents. 

Agents should be pulling out all the stops, says Bibby. “When things go wrong it’s because agents over-promise and under-deliver. You’ve got to stand out. The days of just putting a unit on MLS and social media are over…I’ll be there at showings, or go in advance to make sure the lights are on and the place is perfect.”

Better value in the resale market

For investors, pre-construction currently isn’t the way to go, he advises. “There’s better value in the resale market than in new construction right now.”

He and other Realtors also caution that demand in the micro condo market has cooled. Previously beloved by investors due to affordability, these units – sometimes as itty-bitty as 300 square feet – are now among the hardest-hit segments of the market. There’s been talk in the media that down the road this may point developers in a new direction, pivoting to larger units and giving more consideration to lifestyle needs. 

Such elements also factor into Bibby’s advice to clients to “get away from density.” The reason? If you purchase a unit in a downtown tower, “you can’t differentiate yourself,” in Bibby’s opinion. A little outside the core though, in distinctive Toronto neighbourhoods like the Distillery District; Corktown; the Junction; Queen Street West; and Little Italy, there tend to be more low and mid-rise buildings with unique characteristics, he notes.

“It’s a great time to be looking to buy. It’s not a great time to list and sell,” he adds. “We’re seeing more end users, people buying condos to live in.” 

End-user buyers choosing non-tenanted properties

Nasma Ali, a team leader with cloud brokerage Real Broker, says this can be a problematic mix. She explains: “Investors will take a condo with a tenant, where others won’t.” Tenanted properties are hard to sell in this market, so end-user buyers “will choose non-tenanted properties now that they have the pick of the litter.”

Having their choice of units also means that—where previously buyers were up against bidding wars and may only have been able to find affordable condos in the suburbs—now they’re more likely to wind up with the features and location they really want.

“Before, they’d have to go to Mississauga. Now they can get a condo in Toronto,” says Ali.

Good news for buyers, not for sellers. 

Sellers are bleeding money “but not hemorrhaging”

“I tell people that if they can hold on, do it. This is not a normal market,” Ali states. “If they can’t, there are strategies to be able to sell the unit with time – if their price undercuts everyone in the building, even if just by a bit, or if they get the tenant out, do cash for keys…”      

Sellers are bleeding money “but not hemorrhaging,” she finds. “Explain the situation, look in particular at what’s happening in the other units in the building, and provide regular updates.” 

Clients have grown more accepting of current market realities, making it easier to reason with them, in her observation. 

“I tell sellers, ‘It’s not your unit. It’s the market,’” she explains. “There are not enough buyers out there to absorb all the condos. That’s all it is.”  

Two top Ontario real estate teams—Alex Irish & Associates and The Regan Team—announced a strategic merger on Wednesday that will see their sizeable market reach combined beneath one umbrella.  

Under the new banner ‘Regan Irish & Associates,’ The Regan Team, led by Matthew Regan, has left Royal LePage Real Estate Services in Mississauga, Ont. and joined forces with Irish and her team at ReMax Escarpment Realty, headquartered in Oakville, Ont. 

A new alliance: Regan Irish & Associates

“I can only imagine how high the bar will be set with these two client-centric teams coming together,” says ReMax Escarpment broker of record Conrad Zurini. “We’re ecstatic to have them.”     

And no wonder. The two teams’ combined sold dollar volume so far this year is in excess of $350-million, Zurini calculates. “If we compare them to other teams on the Toronto Regional Real Estate Board, they would be within the top five teams, and would rank in the single digits within the ReMax top 100 teams in Canada.”   

Both teams are major leaguers, in other words. “I have no doubt that their combined efforts will make for a dominant force in our industry,” continues Zurini, who maintains that consolidation of powerful teams is the next frontier. “I think we’re going to see more of it,” he says, adding that when top teams combine to become more impactful it can create “something very special.” 

Needless to say, with the Regan Team having been among the Royal LePage network’s heaviest hitters, it’s a significant loss for that franchise.

It might never have happened, were it not for Regan’s relentlessness.

The persistence behind the partnership

Irish explains, “Over the years, Matthew and I had met on a few occasions but never really knew each other. In May of this year, he reached out with an offer to meet and chat.”

Initially, she rebuffed him. 

“But his persistence intrigued me,” admits Irish. 

She eventually agreed to get together for coffee, and other meetings followed. They discovered they had different approaches but similar philosophies. Things evolved quickly and before long Regan suggested that their teams might be better combined.  Both of them have had partners before, so this time around they felt they knew exactly what they were looking for—trust and transparency being key. 

“It was apparent to me that Matthew was a visionary,” says Irish. “He had developed an enviable business model with systems and processes that leverage new technologies and business strategies to ensure that clients and agents receive unparalleled support.”

That particular skill set doesn’t come as readily for Irish. The hallmark of her referral-based business has been the “dedicated, authentic and personalized attention,” she gives her clients and agents. She loves to sell and to mentor. “That’s what I do best. I’m not as enamoured (with) the business side.” 

Complementary strengths

After building her brand in the industry for over four decades (“To say things were different back then is an understatement,” she affirms), Irish was feeling drained, struggling to manage her time and a successful team. “Matthew’s systems took care of that,” she explains. “Our businesses aligned…We knew that a partnership would bring together the strengths of both firms…I haven’t been this excited for a long time.”

Regan meanwhile, along with being drawn to Irish’s reputation for excellence (“She embodies the qualities of a person I’d trust with my own home sale”), was attracted by ReMax Escarpment’s commitment to taking the real estate industry to the next level. Broker/owner Conrad Zurini “is very forward thinking and tech-enabled,” Regan notes. “He understands the future of the organization.”

Vision for growth and expansion

With 15 offices across southern Ontario and sights set on future expansion into new regions such as Muskoka and Collingwood, ReMax Escarpment is in sync with the 30-plus member Regan Irish & Associates team’s growth plans. 

Regan looks back with appreciation on his “21 years of incredible success” with Royal LePage. “There is no ill will. I hold them in high regard.”

Real Estate Magazine reached out to Royal LePage for a statement but did not receive a response by the publication deadline.

Among the innovative systems Regan brings to the table are offshore virtual assistants (a “relatively unexplored concept in organized real estate,” he asserts) and a proprietary tech platform.    

“What makes us unique is that we have everything in-house—coaching, training, sales development, marketing, admin, photography, staging, even an in-house concierge,” says Regan, whose focuses include agent recruitment and development. “We care a lot about our agents succeeding…We’re looking for the best of the best. Our company culture is very supportive, inclusive, and also fun.”

Regan believes this merger will create shockwaves, leaving people wondering how he and Irish pulled it off. 

“We didn’t get together willy-nilly. We’re going to do this,” he declares. “Buckle up.”

Attempting to fully get a handle on the real estate industry in India from our North American perspective may be an exercise in futility. You can try, but there’s no guarantee you’ll succeed. They’re two hugely different cultures, after all. 

A push in both Canada and India for greater industry professionalism

“Comparing India to Canada is not the right approach,” insists Re/Max India’s CEO and co-owner, Aditya Agarwal. Still, it’s fair to say that in both countries there’s a push to varying degrees for greater professionalism in the industry.

With around 1.45 billion citizens, India has recently overtaken China as the world’s most populated country, according to the United Nations. Real estate is one of India’s fastest-growing sectors. The economy is stable. The cost of living is low. The country has heavily invested in infrastructure development. Demand for housing is strong, with loads of growth potential.

Realtors in India can make “very good money” and so can their clients, attests Agarwal.

Look for ‘a new and different change in Indian real estate’ and a market ‘on the verge of rapid expansion’

The real estate industry in India, however, is highly unstructured and unregulated, although change has been underway in recent years. The legal framework and government rules “are stricter in substantial cities” like Mumbai and Delhi than in small communities, Agarwal notes. 

“In the last seven or eight years, the government has taken significant initiatives to regulate the market,” with the help of the establishment of a Real Estate Regulatory Authority in each state, he explains. “In the next few years, we will see a new and different change in Indian real estate.” 

Earlier this year, India Today magazine applauded the industry’s efforts to improve standards, stating in an article that, “Recent government reforms aimed at fostering accountability and openness have put the Indian real estate market on the verge of rapid expansion.”

India’s market ‘frontier-like’: NAR-India

Even so, the National Association of Realtors (NAR-India), formed in 2008, has been known to openly deem the country’s market “frontier-like.” 

This is where the Indian and North American worldviews can deviate. We tend to feel a “correction” is in order. Many of those living in India may disagree, content for the most part with the status quo. Lest we forget, India was exploited under colonial rule for close to 100 years —  a legacy that shapes the nation’s psyche in ways we can’t imagine.

There’s no standardized MLS in India. No mandated licensing or training of agents. Solid data for backing up sales prices and comparables may be lacking. Organized crime in the industry is known to be an issue. Regulatory complexities and bureaucratic hurdles abound.

Some feel industry is unorganized, more should be done

NAR-India could be doing more to empower the country’s realtors, Agarwal feels.

The legal framework can be poor. Especially outside the cities, there may not even be listing agreements, with the result that realtors’ unpaid commissions become lost causes. Buyers and sellers may use an agent or they may not, preferring instead to handle the transaction by networking with friends, neighbours and family. 

“It’s unorganized,” asserts Eldred Fernandes, who sold real estate on the side for a top builder in the state of Goa while working as a marketing professional with an Indian paints and sealants company, before moving to Canada. “Most people in India buy on trust.” 

They’ll pay a finder’s fee or divvy up a commission between the friends who assisted them. It can be similar for agents, with quite a few often involved in the same transaction, Fernandes continues. (In India, he adds, realtors generally require both the seller and buyer to pay 1.0 or 2.0 per cent commission.)

Industry inconsistencies with ‘huge potential to organize the sector’: An ‘enormous challenge’

Fernandes, now a Royal LePage agent in the Greater Toronto Area (GTA), still occasionally lends a hand in overseas transactions. In his experience, the new-build condominium market in India overseen by builders/developers in the concrete jungles of the big cities is “somewhat organized” (although it’s widely reported that developers differ greatly in terms of ethics).

This doesn’t hold for the resale market though, he feels, especially in small towns and villages.

“There are a lot of inconsistencies,” he states. “There’s huge potential to organize the real estate sector.” But it’s an enormous challenge. Corruption continues to be an issue, with some clients opting to do a hefty portion of deals under the table in cash to avoid taxes and other costs, he says. “How can the industry be regulated until that’s regulated?”

Many locals happy with status quo and don’t want change

While North American-based franchises have begun making inroads towards further professionalizing the business, some locals are leery of the offerings of the smattering of big Western-world brands that are infiltrating India’s vast market, Fernandes has found. Many are satisfied with the system as-is and don’t necessarily want change.

When Keller Williams Worldwide announced its expansion into India last year, company president William Soteroff remarked on the country’s “extraordinary growth and strong economic outlook” and explained that Keller Williams wants to “raise the bar of real estate service” in India to differentiate themselves from the rest.

Time will tell whether or not directives along these lines are something the nation will eventually embrace.

Calgary-based realtor Renata Reid has an inspired way with open houses that’s helping to reshape the traditional format and kick this timeworn marketing tool up to the next level.

As senior vice president of sales for Sotheby’s International Realty Canada, Reid believes that open houses should tell a story and sell a lifestyle. Her brokerage has done a number of marketing videos featuring her techniques, hoping to fire the imaginations of agents across the country.

Are open houses still worthwhile in this fractured, digitally-driven market? And what, you may ask, could Reid possibly be doing in this threadbare milieu to attract that kind of attention?  

The world of extreme open houses: An ‘immersive’ experience with the ‘Martha Stewart’ touch

Welcome to the world of extreme open houses, where superior enticements such as catered refreshments, entertainment and prizes are used to generate buzz about a property, stimulate the senses and create an unforgettable “elevated” experience. 

Envision an open house held by Martha Stewart, if she was a realtor.

The home has a gourmet kitchen? Have a chef at the open house cooking up a storm. There’s a gorgeous deck? Throw an epic barbeque. The idea is for potential buyers to see the home sizzling with life and energy, making it easier for them to imagine themselves living there. 

“If you don’t do anything out of the ordinary, people won’t come,” insists Reid, who maintains that potential buyers are attracted to the “immersive experience” she creates.

Of course, there also continues to be a need for quieter open-house experiences.

But if you’re going all-out, a paper plate of cheese and crackers won’t do. At Reid’s open houses, depending on the asking price and the package the sellers choose, there’s live music — everything from a violinist or wandering professional singer to a jazz band. There may be games and prizes set up in the backyard to keep the kids occupied, white linen tablecloths making the event more reminiscent of a wedding than an open house, floral displays and fresh baking scenting the air, elaborate trays of food (and wine, if allowed) and waiters smoothly circulating with canapes.

Once, to symbolize “iconic luxury,” Reid had an Aston Martin on display in all its glory. “I have sponsors for my open houses — mortgage specialists, architects, interior designers — who may be there to give advice to potential clients,” Reid adds. 

Creating hype with advance advertising and a warm welcome

Creating momentum leading up to her “grand open house weekends” is a key part of the hype, with plenty of “coming soon” advertising, she explains.

Wife and husband team Kelly and Michael MacKendrick concur that “a lot depends on advertising in advance.” Without going to the radical lengths that Reid does, the couple, with Sutton Group Heritage in Ontario, recently managed to pack the open houses they held for the sale of their own home in Markham, prior to moving to the small town of Meaford. 

“Even during COVID we’d have people lined up out the door for open houses, once they were allowed again,” recalls Kelly. 

It can’t hurt that you’d be hard pressed to find realtors more hospitable than these two. We’ve all been to open houses where the agents barely acknowledge visitors. That’s not the MacKendrick’s style, nor do they feel it’s constructive. 

It’s about ‘the art of selling’

“A large part of whether or not you’re successful at an open house comes down to the art of selling,” asserts Michael. “If you’re not engaging, I can see why an open house wouldn’t be as effective.” 

He and Kelly like open houses because they maximize exposure for their clients — which is the name of the game, they point out — and also have potential to be a source of new clients, thanks to those who come through unrepresented or bring along friends and family. Unlike many agents, they’re not adverse to extending invitations to people who aren’t in the market to buy, as it can be helpful in getting the word out.

This includes neighbours — nosy and otherwise. “Some of your best advocates are the neighbours. We’ve gotten clients that way,” says Kelly. “And they give you great intel on the neighbourhood.”

Look for out-of-the-box opportunities and strategies

Thinking outside the box, the duo have occasionally held open houses at odd times, including in the evening and when school is about to let out. “You never know what will work. Look for opportunities,” they advise.

Taking that kind of strategizing further, realtors could consider timing open houses to coincide with events in the area, such as street fairs, neighbourhood-wide garage sales, concerts and other community gatherings. 

Another perspective: Don’t ‘water down’ the experience

Re/Max top producer and real estate advisor Tim Hill of Greater Vancouver cautions though, that the sellers’ interest in open houses tapers off after the beginning stages. “Open houses are most effective when a property is just listed,” or has recently had a price reduction, he’s observed.

Hill explains that holding too many open houses tends to “water down” the experience for everyone, especially sellers, who grow tired of all the cleaning and the amount of time they’re required to remain away from the house.

In his opinion, open houses “are not the most effective tool,” due mainly to the attendance of “looky-loos” and potential buyers who haven’t been prequalified. 

Make seller expectations clear and give buyers plenty of notice

This familiar beef notwithstanding, Re/Max broker Akash Bedi, a past president of the Winnipeg Regional Real Estate Board, has found that recent open house “traffic counts” have increased now that summer is over.

Bedi advises making it crystal clear to sellers what’s expected of them, and allowing at least “four to five days of pre-marketing” to help ensure that people who want to attend an open house are available and up to speed.

Many realtors get new agents to help with open houses and with marketing them, he adds. From what Bedi has seen, the majority of agents and their clients “still use open houses as a listing and marketing tool.”

Most clients, although by no means all, still seem to like and expect them … elevated experience or not.

Fantasizing about living and working abroad is practically a national pastime here. Europe looms large in many people’s daydreams, with visions of closing down shop there in the afternoons, having a leisurely lunch then later enjoying an evening stroll around the piazza arm-in-arm with friends or family.

“It can be quite the idyllic lifestyle,” affirms realtor Valerie Dooley of Forest Hill Real Estate in Toronto. Dooley lived in Italy for years and still takes on the occasional European transaction. She describes the pace there as “more laid-back, like stepping back into another century.”  

‘A relaxed lifestyle, with multigenerational families often cohabiting’

European culture “embraces a relaxed lifestyle, with multigenerational families often cohabiting,” she continues. “You work less hours, with personal and leisure time put ahead of work schedules. Quality of life is paramount.”

As the maxim goes, Europeans work to live, not live to work. 

Of course, Europe is a vast area and every region is different. In North America, we tend to romanticize it somewhat. But the opposite is also common, at least when making comparisons between working here or there.

The experience can be viewed as heaven, hell or somewhere in between, depending on your perspective. Take for example the saying, “If you fear the world will end, come to Europe. Everything happens decades slower there.”

Is that a good thing, or not? 

Agents in Canada ‘have no idea how easy they have it’

Cultural bias is unavoidable and there’s no question that it warps our worldview. What one person finds charming, another may see as crazy-making.

Agents in Canada “have no idea how easy they have it,” asserts Ontario-based realtor Irene Kaushansky, who’s on Keller Williams’ global luxury task force. She’s of the widely-held opinion that the real estate business in Europe tends to be less organized and predictable than here, although she feels that’s started to change. 

“It’s very country-dependent,” she notes. 

Kaushansky tells the story of a realtor friend of hers in England who’s begun charging her buyer clients a retainer. “She doesn’t want to work for free (and) this weeds people out. There’s no buyer representation there, no contracts.”

A dynamic arena with enormous opportunities for the Canadian industry but buyer agency is complex

Michael Polzler, CEO of Re/Max Europe, lends weight to that anecdote when he describes the results of the feasibility studies done prior to Re/Max first launching on the continent 30 years ago. “They all came back resoundingly saying that it would never work,” he explains.

It turned out to be a dynamic arena with enormous opportunity.  

“There’s no question the European way of living and working has its own appeal,” Polzler observes. “But it’s still a marketplace where there’s essentially no formal set of rules, no MLS, no sharing of information or historical data and where the idea of cooperation between agents doesn’t formally exist.

To see 30 different homes, in most cases, you have to ask 30 different agents …The lack of buyer agency is really very complex.”

‘It’s double-ending paradise’: Key differences between North American and European industries

The industry in Europe is highly fragmented and deregulated, Polzler maintains, with different dialects, cultural norms, ownership rules and business practices everywhere. Many countries have no organized real estate whatsoever. Client and realtor protection may be minimal.

Small “mom and pop” offices have traditionally defined the industry there. Hugely productive superstar agents as we see in North America are thinner on the ground (leading to much tone-deaf and contentious speculation that European realtors are happier but have less entrepreneurial spirit than their counterparts in North America). 

Industry licensing is uncommon. As for payment, many realtors are salaried, but if on commission, “There’s generally no standard fee here in Europe,” notes Polzler. “It’s double-ending paradise.” 

Real estate offices, particularly in rural areas, may shut down for a couple of hours each afternoon and be closed on weekends. “You’ll see offices closed through the summer for weeks,” says Polzler. “And it’s hilarious how long it can take to get a call back.”

In his view, “If agents can learn to provide a better customer experience, that would change the industry here.” 

Professionalism and cooperation on the rise

Professionalism is on the rise though, including — very slowly — cooperation between agents, Polzler notes. (He attributes this to “trans-Atlantic education” from Re/Max and its competitors.) “I can get frustrated, but people here are listening and starting to understand and cooperate. There’s progress.”   

Dario Castiglia, president and CEO of Re/Max Italy and a managing director of Re/Max Germany, describes how North American practices have “enhanced the role of the realtor” in Europe via measures such as cooperation among offices and the introduction of favourable commission splits, along with “the open house concept, the large office concept, the agent-centric idea, the personal promotion of agents, the team concept,” and so on.

“But,” Castiglia adds, “We’re still a minority and our impact is limited.”

The next generation will tell the tale, he believes.