Hey guys, great video. Here’s my concern (maybe only worth 2 cents): Not sure how all this will play out, but we may get to the point where buyers are obliged to pay their agents directly out of pocket. If that happens, we will likely see a lot more buyers going directly to the listing agents under customer status (because they can’t afford to pay those fees out of pocket). As we all know, listing prices are often way too high, and without the proper guidance a buyer will end up drastically over-paying for the property (I’ve seen this happen several times). If a lot of people are suddenly doing this, it will have the effect of driving prices up overall. Not good for the market or the consumers. Having good buyers agents out there in the market is what keeps prices in check as much as possible (notwithstanding the supply and demand issues etc). You all make good points about buyers agents needing to make a strong case for the value they provide, but the reality is that many agents will fail to do. This means that a lot of buyers could therefore choose to be unrepresented. Granted, this is all bit “worst case scenario” and hopefully it won’t come to that, but it’s something to consider :)
In response to the successful US lawsuits, similar legal action has commenced in Canada. However, the Canadian Real Estate Association (CREA), has historically been adept at resisting change. It may take years for significant progress on this front. Of paramount importance is the extensive involvement of the US Department of Justice in pursuing and achieving this commission change in the US. They have been closely engaged at every stage of the process. Curiously, no Canadian government department has shown substantial interest in this matter. It seems it will be a lengthy process before any meaningful action is taken in Canada, potentially stretching over years. In the meantime, it's essential to monitor developments in this area and continue advocating for changes that benefit consumers and industry professionals.
I’ve always thought that the seller should pay their agent 3% and the buyer should pay their agent 3%. The buyers portion could be rolled into the closing cost and/or purchase price/loan of the home. They should each pay for their own agent to represent them.
Not that Canada is in the same situation as our neighbours to the south...yet. But, would the absence of cooperating brokerage commissions threaten the stability of the Canadian MLS system? The primary purpose of the MLS is to foster cooperation and compensation among real estate agents and brokers representing buyers and sellers. However, when listings on the MLS fail to offer cooperation to other brokers, it undermines the fundamental principle of collaboration that the MLS is built upon. This absence of cooperating brokerage commissions should, and I am sure would, be a concern for CREA, as it would threatens the significance of MLS memberships and compromises the cooperative nature of the real estate industry facilitated by the MLS. Interesting times for sure. Good discussion.
I don't think it is a question of whether the buyer agent adds value. It's about if a buyer who is likely already stretching to buy at the top of their budget, can afford to give up a chunk of their downpayment. It's also a question of mindset. Americans are not used to getting anything for free. Canadians are a bit more of the mindset that there are some things they don't want to pay for.
Hey guys, great video.
Here’s my concern (maybe only worth 2 cents):
Not sure how all this will play out, but we may get to the point where buyers are obliged to pay their agents directly out of pocket. If that happens, we will likely see a lot more buyers going directly to the listing agents under customer status (because they can’t afford to pay those fees out of pocket).
As we all know, listing prices are often way too high, and without the proper guidance a buyer will end up drastically over-paying for the property (I’ve seen this happen several times). If a lot of people are suddenly doing this, it will have the effect of driving prices up overall. Not good for the market or the consumers.
Having good buyers agents out there in the market is what keeps prices in check as much as possible (notwithstanding the supply and demand issues etc).
You all make good points about buyers agents needing to make a strong case for the value they provide, but the reality is that many agents will fail to do. This means that a lot of buyers could therefore choose to be unrepresented.
Granted, this is all bit “worst case scenario” and hopefully it won’t come to that, but it’s something to consider :)
Great chat guys! I agree here that having a good buyers agent is what keeps prices in check - that is very overlooked in today’s market!
In response to the successful US lawsuits, similar legal action has commenced in Canada. However, the Canadian Real Estate Association (CREA), has historically been adept at resisting change. It may take years for significant progress on this front. Of paramount importance is the extensive involvement of the US Department of Justice in pursuing and achieving this commission change in the US. They have been closely engaged at every stage of the process. Curiously, no Canadian government department has shown substantial interest in this matter. It seems it will be a lengthy process before any meaningful action is taken in Canada, potentially stretching over years. In the meantime, it's essential to monitor developments in this area and continue advocating for changes that benefit consumers and industry professionals.
nice conversation gents. thanks!
Nice work guys. Very clear and concise.
Nice conversation gentlemen. I really appreciate your insight.
I’ve always thought that the seller should pay their agent 3% and the buyer should pay their agent 3%. The buyers portion could be rolled into the closing cost and/or purchase price/loan of the home. They should each pay for their own agent to represent them.
That's an interesting perspective! It could help make the process feel more balanced and transparent for both parties.
Not that Canada is in the same situation as our neighbours to the south...yet. But, would the absence of cooperating brokerage commissions threaten the stability of the Canadian MLS system?
The primary purpose of the MLS is to foster cooperation and compensation among real estate agents and brokers representing buyers and sellers. However, when listings on the MLS fail to offer cooperation to other brokers, it undermines the fundamental principle of collaboration that the MLS is built upon. This absence of cooperating brokerage commissions should, and I am sure would, be a concern for CREA, as it would threatens the significance of MLS memberships and compromises the cooperative nature of the real estate industry facilitated by the MLS. Interesting times for sure. Good discussion.
I don't think it is a question of whether the buyer agent adds value. It's about if a buyer who is likely already stretching to buy at the top of their budget, can afford to give up a chunk of their downpayment. It's also a question of mindset. Americans are not used to getting anything for free. Canadians are a bit more of the mindset that there are some things they don't want to pay for.