29 May HOW DOES THE RECENT RULING AGAINST TREB AFFECT YOU??
As a Realtor working in the GTA, you most likely know about the ruling last month by the Competition Bureau AGAINST TREB on how it handles Home Sales data.
If you aren’t aware…you really need to check it out here
So what does it all mean and how does it affect you as a Realtor? Well…comments in the opening section say it all:
“Canada’s Competition Tribunal says the real estate board in Canada’s largest city stifles competition by limiting access to data on home sales.”
And: “The bureau argues that the Realtor group limits competition and subsequently keeps costs high by restricting access to data on its proprietary Multiple Listing Service…”
Stifling competition? Keeping costs high? Ouch…not happy things to be accused of and won’t improve the optics of Real Estate Agents in the eyes of the public (no matter how many cute commercials there are about why you should have used a Realtor…)!
Who cares…few clients even read about this stuff. Okay fine…but 3 words should have caught your attention: Competition and High Costs
You can bet your next BMW payment that if the Bureau thinks these things are problems, something will be done shortly…and in fact, some have already started.
Have you heard about Low Cost Brokerages, Independent Brokerages that offer ALL home data to everyone (already operating in other parts of Canada), and commission auction sites where Realtors try and outbid each other by lowering their commissions?
If you haven’t…you will start to soon, and many other new services to clients, in the coming months and years. Some believe we will start to look more like what happens South of the border once this ruling takes affect.
And that means potential significant changes to your Real Estate business!
When will we know exactly what this means? No one knows. But if you think it will mean NO changes to the industry, think again.
Don’t believe me…well look up a few ex-Travel Agents and ask them what happened to their business when a significant change occurred in their industry (while different, ultimately consumers had more choice due to competition and being able to do their own research online and that drove the fees Agents received down to practically nothing).
Remember when there was a Travel Agent in every strip Mall? How about now? That’s what happens when a Monopoly ends…
Again, no one knows for sure what is going to happen and when but if my livelihood was dependent on this…I’d do what I could.
You work very hard and your business expenses go up every year. How would commissions being forced lower affect that?
Competition is already fierce (40,000+ Realtors in the GTA) but we don’t even know what new competition will look like in the future after this!
If you utilize Home Sales data in your Buyer presentations…then this ruling is almost certainly going to affect you…because your prospects may have access to that data…which up until now was a big part of your value.
Will Full Service still be important? Of course. Will there still be clients who want what you have to offer? Naturally. Just like there are still travellers who go straight to Travel Agents to have their vacations booked (but do you??).
So what can you do? Well…you can believe it’s more hype than anything and stick your head in the sand…and perhaps you will come out okay. Not my recommendation.
You can alter the way you do business, embrace the changes, look for opportunities and outflank your competition…all things I HIGHLY encourage…but are not in the scope of what I am an expert in.
I want to share my recommendations to ensure that if/when the fallout of this ruling comes to pass and your industry changes, you are able to meet your needs and look after yourself and your family:
Take Action to Reduce Expenses, Save more Money and Invest to Grow your Nest Egg.
Growing your wealth, having residual cash flow and knowing that a good % of your expenses (if not all) are covered whether you work another day or not is the single MOST important thing you can do to ensure that you are covered regardless of what happens.
Does that mean you quit, throw in the towel or give up? Of course not! It just means that you are Recession proof, Industry change proof, and Rainy Day proof…when your Finances are in order and your Investments cover your expenses.
And…unlike a lot of other things that may or may not happen…this is entirely UNDER YOUR CONTROL. You can’t control what new companies move into your space, what your colleagues do, how consumers react…but you can control how you Manage, Save and Invest your income so you are taken care of in the future.
I don’t know about you but I like to focus my time and energy on the things IN my control (rather than wasting it all on things OUT of my control that just cause me stress).
What’s the next step…? Well first you need to know where you currently are at and if you are putting away enough money every year and getting the kinds of returns on your investments to be where you want to be.
In other words…you need a Financial Snapshot…and it just so happens I specialize in those for Realtors FOR FREE!
So contact me here right now and let’s help you take control of your destiny before it’s too late.