Why are we here today?

Transcription

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2 Why are we here today?

3 New Reality FSBOs becoming more visible DuProprio, ViaProprio, Kijiji, etc. Increased costs Why do business with a broker? Questioning by consumers

4 However! Transactions are increasingly complex Largest investment of a lifetime No loss of market share vs FSBOs Brokers are increasingly better trained and better equipped

5 Buying or selling a home is a transaction t ti that s too important to leave in the hands of just anyone! y! anyone Jacques Nantel Ph.D. Professor HEC Montréal

6 We must make a decision for the future of our industry

7 Roles and Responsibilities The GMREB has been asking CREA to clarify organizations roles since 2009! Many other real estate boards in Canada agree Real estate boards and CREA would no longer be using members money for similar projects (duplication) Always the brokers who ultimately pay CREA just formed a committee! (after 3 years)

8 4 Demands 1. À la carte services 2. Advertising 3. Review of expenses 4. Distribution of members data

9 1 À la carte Services Few products/services being used Realtor Link, WEBForms, Realtor Care, AEC training, etc. Only Realtor.ca/ICX are used Vl Value of $40 per member per year? The rest of the money ($310)? CREA study one year ago (no follow up) No tangible progress!

10 2 Manage Advertising in Québec Consensus to get back the money sent to CREA for advertising CREA management Inefficient process Different law Different reality (share of FSBOs) URGENT Ri Raise awareness of the broker s value!

11 2 Manage Advertising in Québec Obtained a credit for 2013 Support from other Canadian boards CREA Board of Directors did not want to support this demandd Amount still not confirmed One year at a time Renegotiate and hope Impossible to plan an ad campaign for more than one year Obtaina permanent solution!

12 3 Review of Expenses Repeated demandsto review expenses A lot of meetings across the country Very often subsidized by CREA Benefits for directors Training, group travel They maintain their traditions Board meetings in the president s city, gala dinner paid for by members, etc. Grants for real estate board staff Subsidized training and conferences Whistler, Toronto, and soonprince Edward Island International involvement CREA promised to review its involvement last year (no developments) Staying in CREA means that the GMREB must participate in this

13 3 Review of Expenses Major increase in expenditures in almost allbudget areas (2011 vs 2010) Governance (+ 24%) Administrative costs (+ 37%) Grants for board managers AEC (+ 58%) Technology (+ 68%) Etc. CREA refuses to disclose 2012 numbers

14 3 Review of Expenses CREA should review its spending before increasing brokers dues

15 Comparison of Revenues Difference % GMREB $12.3 M $15 M $2.7 M 22% CREA $18.6 M $33.5 M $14.9 M 80.1% The GMREB has a budget of $12.3 M for 2012 CREA refuses to disclose its 2012 numbers

16 Comparison: Number of Members % GMREB * 9,688 10, % CREA 88, , % * Number of GMREB members expected to decrease in 2012

17 3 Review of Expenses 121% increase CREA dues in 11 years Members: % Revenues: % More increases planned for 2012 and 2013 CREA must review its use of members dues

18 4 Data Distribution CREA system and regulations now in place Duplication: system (Centris ) and regulations (QFREB) already in place Distribution of listings to third parties Exclusive agreement given by CREA to Point2 Data transferred free of charge to private companies Reciprocity Common database that allows participating brokers to publish the listings of other participating brokers You do not choose who you are sharing with! Who benefits from this?

19 4 Data Distribution Staying in CREA means accepting the new rules of the game in terms of data dt distribution ib ti

20 4 Demands Despite our repeated requests, there has been no tangible progress. Everything remains to be finalized. Still at the good intentions stage!

21 Two Projects for the Future Map to the Future (CREA) Real Estate Summit

22 CREA s Map to the Future CREA has spent the past 2 years working on a Canada wide plan for the future of the real estate industry 23 projects All projects were voted on as a whole Many projects already exist in Québec No priority in the order of implementation

23 CREA s Map to the Future Some projects are cause for concern! Creation of a virtual college Implementation of a broker evaluation system Rate Your Realtor Implementation of a transition fund Etc. $1 million already committed (how much more to come?) CREA s vision of the future is very far from our reality

24 CREA s Map to the Future CREA s projects also include Establishing national competency standards, including learning and mentoringprograms Implementing national certification programs and training programs after licencing Creating a process for implementing The Realtor Code thatt is accepted in all competency areas (national code of ethics) National regulations that are needless and risky Real Estate Brokerage Act is provincial!

25 National Regulations Have we learned from the past? Competition Bureau complaint Settlement agreement reached in late 2010 Competition Bureau complaint vs TREB Consumer (client) access to the MLS system Ongoing legall proceedings CREA involvement (legal and financial) Legal action by RealtySellers vs TREB and CREA $540 million How much will all this cost us?

26 CREA s Map to the Future A project to allow FSBOs to register their for sale properties on the Realtor.ca websitewasremovedat the last minute this summer! This project was criticized across the country Why not perform the legal verifications before proposing it at the annual meeting?

27 Are Québec FSBOs already on REALTOR.ca?

28 Are Québec FSBOs already on REALTOR.ca?

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31 CREA s Map to the Future Many of the 23 projects will probably take years to implement or will simply be abandoned, like this one!

32 Two Projects for the Future Real Estate Summit

33 Real Estate Summit February 2012, more than 100 stakeholders from the Québec real estate industry came together Objectives of the Summit: Reflect on the future of real estate brokeragein Québec Define the best approaches for ensuring the success of real estate brokers Historic event: consensus among participants

34 Real Estate Summit 6 specific orientations Increase in collaboration Mandatory basic training Increased competence through mandatory continuing education Increased accountability of agency executive officers Definition and increased awareness of services offered by brokers (unique selling proposition) Integrated communications program

35 The Industry is Taking Control A lot of progress Basic training to return in 2013 Continuing education New forms 2012 Comprehensive program for 2013 Commitee on collaboration and accountability, in place Communication plan being developed Important campaign in 2013

36 The Industry is Taking Control Brokers Unique Selling Proposition (USP) Task force Brokers (from banners and independents) Agency executive officers Franchisors, real estate board managers, OACIQ Externaladvisors: advisors: National (PR firm), Jacques Nantel Analyses, presentations, studies Consumer knowledge (Léger Marketing) The changing tourism industry (chair at UQAM) A strong brand (Parallèle) Definition of brokers USP

37 Brokers USP Brokers are properly trained and their skills are constantly being updated They have a network of brokers They have extensive expertise They protect the buyer and the seller They strategically manage all stages of the transaction They hold a licence and work in an organized and regulated industry

38 Our No. 1 Priority We must raise awareness of the value of real estate brokers Without increasing brokers fees

39 And what will happen to your dues?

40 Use of CREA Dues 2013 GMREB members will pay close to $3.1 million to CREA in 2013 For all of Québec, total dues will reach $4,360,000 Approximately $560, for REALTOR.ca Approximately $1,100,000 for advertising (credit) What happens with the remaining $2,700,000?

41 2013 Dues Forecasted dues Withdrawal from CREA GMREB $205 GMREB $205 Advertising fund $75 Advertising fund $250 CREA (including 2013 ad credit) $310 Legal fund $35 Total $590 Total $490 We commit to consulting our members again after 2 years!

42 Use of CREA Dues ( ) GMREB (1 year / 2 years) Advertising i $2.5 M / $5 M Legal fund $350 K / $700 K Member savings $1 M / $2 M $5 million for the promotion of brokers

43 Main Advantages of GMREB Leaving CREA Decrease in fees paid by brokers Millions of $ to promote brokers No obligation i to participate ii in national initiatives that cause us concern Minimize risks Essentially, we will invest 100% in a project for the future of our industry

44 Ultimately, two possible options Stay in CREA Leave CREA

45 What happens if we leave CREA? REALTOR.ca/ICX.ca Centris.ca MLS? Centris Political action Already have the QFREB Statisticsti ti Centris and the QFREB

46 How Can These Impacts be Mitigated? We will always be open to discussions (CREA also needs us) Political action, national statistics CREA could offer us certain à la carte services (REALTOR.ca/ICX.ca) ca) CREA already offers WEBForms MC on an à la carte basis outside of Canada CREA already accepts non MLS listings on ICX.ca Ultimately, we have Centris.ca!

47 What could happen if we leave CREA? No impactontheinter agency the inter agency system The Québec MLS network is provincial Itbelongs to brokers (in Montréal, it s Matrix) The MLS brand is well known, but People will continue to use it in everyday life (like Kleenex) Opportunity to highlight hli ht the broker network

48 How Can These Impacts be Mitigated? versus

49 REALTOR.ca Not yet adapted to the Real Estate Brokerage Act Still use agent instead of broker More than 2 years after the law! Technology changes are slow Aging site Use of Bing vs Google Google indexing is deficient High annual cost (no economies of scale) REALTOR.ca = $4 M, $40/member (estimate) Centris.ca = $500 K, $35/member

50 REALTOR.ca Mobile applications are available to consumers CREA has done a good job with this However, it should have thought of brokers first, before offering it to consumers The site is currently used more than Centris.ca Must be careful of numbers wars

51 REALTOR.ca DuProprio has surpassed REALTOR.ca Despite the fact that REALTOR.ca has almost 7 times more properties in Québec (80,000 vs 12,000 for DuProprio) Millions of $ invested by CREA All dues increases are justified by investments in technology Admission of failure CREA promises to be more efficient by creating an independent company to managetechnologies The company is not created, business plan unknown

52 Banner A Banner B Banner C Banner D Banner E Banner F

53 Centris.ca Technology platform is recent and modern New home page (December 2011) New list search (July) Fast and improved Google mapping (September) Better than REALTOR.ca and, more importantly, better than DuProprio Google indexing: already seeing results (eg. Maison a vendre ) Continuous improvements Detailed content Socio demographic data Advantages of doing business with a broker

54 Centris.ca Mobile applications Serve members first More for brokers than consumers Appointments (ImmoContact), commission, i expirty date, etc. Prospects Mobile application already offered by Centris iphone, Android, ipad in testing Mini browser application now in beta mode (October launch) Current site compatible with tablets Centris.ca application available to consumers in the fall Based on Prospects Mobile technology Better than REALTOR.ca

55 Promoting Centris.ca Winter 2012 ad campaign Number of visitors doubled 2/3 of visitors stayed after the campaign Current campaign (late August October) 87% more visitors in August Additional $1 million if we leave CREA (transition) Planning underway with lg2 ad agency We must reclaim the place that REALTOR.ca left to DuProprio

56 Two options: status quo or take action!

57 What is the status quo? The status quo (staying in CREA) means: Building on REALTOR.ca Financing legal battles Investing in projects thatt do not provideus with much 23 projects Intrusions sto our Real Estate Brokerage Act With the associated risks (code of ethics, training, etc.) Allowing the reciprocity of listings Accepting the questionable use of your dues Hoping for a long term solution re. advertising issue Possibility of special dues (for advertising)

58 Taking matters into our own hands Taking matters into our own hands (leaving CREA): Major ad campaign to promote brokers expertise ( ) 2014) No special dues for advertising Building on Centris.ca Legal fund for the defense of members Reducing members fees Implementing the 6 orientations of the Real Estate Summit

59 Your Board of Directors Position TheBoard of Directors recommends that the GMREB withdraw from CREA in order to meet thespecific challenges our industry is facing. The Board of Directors will be consulting you electronically before making a decision.

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