Morgan at buzzbuzzhome.com 11 May 2011 -
“While new(ish) to the industry I feel like something is broken in the world of real estate agency (in toronto as that is where I have my personal experience).
I know the public thinks its the MLS and how accessible it is to the public but im not so sure…
I would love to hear other peoples opinions on whether it is that, something else or not broken at all.
I think it has to do with the number of real estate agents and the reason why there are so many.
As someone who went through the real estate licensing process about a year ago it is 1) way too easy, my high school exams were harder 2) too short 3) to cheap
The level of proffesionalism and service needs to be raised across the industry.
I have seen stats that say that over 70% of Realtors quit after the first two years. That tells me there are a lot of people who are inexpeienced and desperate out there not doing a good job and that invariably changes the publics opinion.
Whats everybody think?”
Most Recent Comments:
- Nemesis on ‘Doomed’? – “Home prices in Canada are now double what they were in the 1970s in real terms. Historically, over the very long term, real home prices tend to be flat.”
- Raspberry ketone on Commit Crime To Buy A House
- Nemesis on “The bank encouraged her to take the equity in her home to purchase another home. She bought a 2nd home at the peak.”
- You're sore, not hurt. on ‘Doomed’? – “Home prices in Canada are now double what they were in the 1970s in real terms. Historically, over the very long term, real home prices tend to be flat.”
- Ralph Cramdown on “The bank encouraged her to take the equity in her home to purchase another home. She bought a 2nd home at the peak.”
- Farmer on “The bank encouraged her to take the equity in her home to purchase another home. She bought a 2nd home at the peak.”
- kabloona on “The bank encouraged her to take the equity in her home to purchase another home. She bought a 2nd home at the peak.”
- Brian on “The bank encouraged her to take the equity in her home to purchase another home. She bought a 2nd home at the peak.”
- Nemesis on “The bank encouraged her to take the equity in her home to purchase another home. She bought a 2nd home at the peak.”
- Burnabonian on “The bank encouraged her to take the equity in her home to purchase another home. She bought a 2nd home at the peak.”
- dumpster diver on “The bank encouraged her to take the equity in her home to purchase another home. She bought a 2nd home at the peak.”
- Joe at Kits on “The bank encouraged her to take the equity in her home to purchase another home. She bought a 2nd home at the peak.”
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Latest Anecdotes:
- ‘Doomed’? – “Home prices in Canada are now double what they were in the 1970s in real terms. Historically, over the very long term, real home prices tend to be flat.”
- “The bank encouraged her to take the equity in her home to purchase another home. She bought a 2nd home at the peak.”
- “Let’s remember how we got here” – Looser and Looser CMHC Limits
- Don’t Worry, I’m Sure Somebody Will Sort This All Out – “Policymakers now know better and will be a lot more proactive in preventing a collapse.”
- “Things have changed, we are not doing that type of mortgage. We are not interested at all.”
- “We are noticing our target type of housing in price decline, albeit slow, as our money increases in value, slowly as well but outpacing housing.”
- Renter Buys In West Van – “For a few hundred more per month, you could own the place. Which is what I will be doing as my offer for a place down the street has been accepted. There is some value in staying in one place.”
- A Bed in the Bathroom, Why Not? [Let Us Count The Reasons...]
- “My husband and kids are pretty happy in our rental house within cycling distance of work that we could never have afforded otherwise. We’re doin’ pretty dang well, thank you, for median income earners in this expensive city.”
- “I Wish Them Bad Luck.” – Jim Flaherty, on those who wish to profit from Canadian RE price drops
- “We asked why he doesn’t just rent the whole house. He said he can’t, it wouldn’t cover his mortgage – he’ll get more to rent it out as two suites. These new landlords are hilarious, thinking that rent will cover their mortgage!”
- “My neighbours, in their late 60s, just put their house on the market. They had said they would die in that house, but now they are worried that with the housing market going south they may be losing a lot of equity and they better sell now before it gets worse.”
- Chat Thread
- Taking A Break
- “My best guess: this property is now an ‘investment hold’ and will be built ‘when prices recover’. Good luck on that!”
- Man Loses $745,000 Vancouver Condo Deposit
- Graphic – Degrees of Housing Overvaluation in Canada
- The Rare Individual With A Negative Ownership Premium
- Advice Regarding Renting In Vancouver, Please – “Unfortunately, the Vancouver rental stock is absolutely atrocious. It just seems like every landlord is looking for someone to pay 100% of their mortgage on a crappy place through rental income.”
- “I just visited Manhattan for a week, and happened to snap some real estate ads on both the Upper West and Upper East sides of the island. Compare to Vancouver. It simply doesn’t compute.”
- Ben Rabidoux In Vancouver Next Week
- “The mortgage company told me they were calling in my 40-year, 0-down mortgage. I have paid nearly sixty thousand dollars towards it, but, nearly five years in, I have yet to touch the principal.”
- ‘Vancouver City Hall: Housing Report Card 2012′; Plus Revised Version
- “My folks find themselves at 65 still owing half the value of their home and recreation property to the bank. After almost 30 years of ownership in the BPOE and a number of boom markets, they have very little to show for it.”
- “Rent for $2,200 a month or buy and have a mortgage of $4,310 per month. Why would anyone buy?”
- “They were talking about two couples they knew who had recently bought a lot and planned to each build a house on it and live as neighbours.”
- Greater Vancouver Home Builders’ Association Annual First-Time Buyer Seminar Attendance Plummets
- Mom and Pop Get It Wrong In All Markets, Time And Again
- The average British Columbian homeowner is not going to pay off their mortgage by the time they retire.
- “He’s sold all his properties except his current one, which is now for sale. He explained that the market’s currently in crash mode, worst that he’s ever seen.”
- “One of my old high school buddies finally got her mother to sell the family home in Kitsilano – sold for over $1M, monies realized after debt paid off $185K.”
- “I know someone who just declared bankruptcy because her condo was assessed at $150k and she bought it presale north of $250k in 2005 or 2006.”
- Sturdy, With Views – “Calling Froogle Scott!… Is Dr. Scott ‘In The House’?” [Not In This One, Certainly]
- “She said the market was dead in Victoria and that it would remain so for a very long time. I asked how she knew. Her answer was fascinating and should scare the pants off the real estate crowd.”
- Kits Notes – “I’m pretty sure that this is the first 3+ bedroom property of any type that I’ve seen in the 5 years I’ve lived here that is priced below $700K.”
- “A beautiful Belfast home, in the equivalent of 1st Shaughnessy, bought at their RE peak in 2007 for £3.5 million, has now sold for £800K, almost 80%-off. The market didn’t suffer any significant economic shocks. Rates & unemployment didn’t skyrocket. They didn’t build more land. Sentiment just changed and the prices fell and fell.”
- “Two family members of hers are trapped, underwater, in condos on the East Side.”
- “Interprovincial migration is not saying good things about BC’s economy.”
- Vancouver RE: Not As Expensive Provided You Don’t Think – “It’s clear that our perception of affordability has been coloured by living on a continent where housing is unusually inexpensive.”
- More Undisclosed RE Industry Insiders Publicized As Clients – “In 1995, Allan and Karin Hoegg were mortgage-free. But no more. Today their Vancouver home is a valuable source of income as they plan for full retirement.”
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This 30-year bull market for housing hasn’t done us any favors from an MLS point of view. It takes a correction and some serious pain for the real estate agents before they’ll think to update their antiquated MLS system and finally offer the public more information. This correction and eventual housing bear market can’t come soon enough.
This guy hit the nail on the head. Here in Ontario there is a stat from the OREA that about half of real-estate agents do no more than four deals per year (i.e. they are “part-timers”). The barrier to entry is too low and professionalism suffers as a result.
To any real estate pros who haven’t been in the business for at least 10 years: save every bit of money you’re making at this point. Think about what other industries you might be interested in.
Don’t put your own money into real estate. That makes your income and your assets vulnerable to a correction in the same asset class. If you own, think about selling soon and renting for awhile.
At least half of you will be doing something different five years from now. Especially those who just got started in the last few years.
Well, this agent has the spelling skills to be a success on MLS!
There was about $60,000 of commission (assuming an average of 5%) for each of Toronto’s 31,000 agents last year, less expenses and broker split, on average. Of course, some agents sold a lot, and many agents sold very little. Many at the top franchises piss and moan about part timers eating into full timers’ earnings, though that isn’t how they phrase it. Alas, TREB, OREA, REBBA and CREA charge a flat fee per agent, so they’ve no incentive to reduce numbers.
Moving on to the problem with agency, it’s all about incentive. In Ontario, it’s enshrined in law that commissions can’t be progressive, e.g. flat fee plus a percentage above a certain price, or a low percentage on the first $x00,000 and a higher percentage on the excess. Cui bono? Property owners leverage their money, while agents leverage their time. If an agent has a choice between working 8 hours for 2.5% of $300,000 or working 12 hours for 2.5% of $320,000, which one nets him the best $/hr? If the owner has a $250,000 mortgage on the property, they’re working at cross purposes.
Ex Traffic reporter is the Global “Real estate” Guru, so there you go.
I have a low opinion of most agents.