A recent article in the Financial Post stated that the Canadian Real Estate Association is looking at having all of its Realtors from coast to coast mandatorily posting their listings on the Multiple Listing Service. This is an event to stop Realtors from marketing listings privately and seemingly it is to increase the amount of data and real estate available information that is available to the public, as well as give the buying public a fair chance. If you're curious about some more details about what is going on, how this came to be, and whether this is going to come to fruition, today's post is just the one for you. So let's jump into it.
What's good, everybody? It's Darin Germyn from the Germyn Group, where we know you've only got one chance to either buy or sell your next home. So we're here to help you get it right.
So if you live under a rock and you're not sure what the Multiple Listing Service is, this is Realtor.ca. Or more specifically, the Multiple Listing Service is also the service that allows you to see real estate listings from all across Canada in one centralized spot. We might not recognize how lucky we are in Canada either, because Realtor.ca is renowned across the world for the system that is built based on the centralized data. And not only that, it's a great program. It's an incredible program that is always getting lots of new ideas and better quality content put into it all the time.
So, you know that's another post. The article goes on to state that based on the best interests of both home buyers and home sellers, the more properties that end up on the Multiple Listing Service, making them available to the entire public is in the best interest of everybody involved. Of course, as you would guess, this has raised some concerns, and some of them may be valid, some of them may not be valid, but there are people out there who kind of disagree with this as well. One of the main things that it is said in the article is you're limiting choice for both the real estate profession, but also for consumers. Economic theory and empirical evidence state that an open market is really best for everyone that is involved.
Buyers and sellers have access to all the information. There is transparency in this information, and it also creates efficiencies. The question becomes that when a listing is marketed within a closed circle, is it fair to the buying public out there? And is that in the best interest of the consumer, something that the Canadian Real Estate Association thinks about a lot. Like a lot, a lot. Like a lot, a lot, a lot. They are there to not only help the REALTORS of Canada, but also make things better for home buyers and home sellers from coast to coast,
Nobody really should be denied the ability to see a property that is for sale. That's somewhat concerning when you're a home buyer, but also when you're a home seller. Would you be better served to make sure a broader base of the market sees your listing? There are reasons why this might not make sense. I heard a great reason that was kind of interesting.
What if you're Drake, you're very famous and you live somewhere in Toronto, I'm assuming, but you're Drake and you don't want your property publicly marketed to everybody because number one, not everybody maybe should be looking at your home. Maybe there are security issue reasons, or maybe you just don't want your entire life on display and that is okay to a point. The article suggests that CREA has considered these concerns and they are legitimate. With that being said, though, there are two very distinct marketing approaches that have been identified.
The line in the sand really seems to be what you could almost argue the differences between outright public marketing or more closed direct one to one contact type marketing. The first is the public marketing approach, which is probably what you as a consumer are used to. This is where the listing is marketed out to absolutely everybody, to not only increase the amount of people that see it, but also get the greatest amount of exposure to the home seller. This also allows REALTORS that are not from the same brokerage to cooperate with other realtors from different companies to help sell the listing for the seller and the buyer. The second is what could be called an office exclusive listing.
And this is where privacy is needing to be protected for various reasons. What this would allow the realtor to do is to have things like direct one to one conversations with the general public or realtors in the marketplace about their listing. But the line needs to be drawn about whether it's being publicly marketed versus that one-to-one sort of environment. This proposed policy would exclude things like commercial listings, rental listings and new construction type products for multifamily homes. An interesting thought that was in this article was that buyers and sellers have conflicting interests.
And at times what's best for a buyer might not be best for a seller. But the uniqueness of this idea is it's really aimed at making it better for everybody involved. If you were a home buyer during the craziness of the pandemic market, you were probably frustrated by seeing signs that said coming soon to market or exclusive listing where you didn't know how to be involved in the conversation to be able to purchase that home. And maybe you drove by that home again later, only to find out that the sign was gone and well, what happened? Did it sell?
Did it get removed from the market? Or better yet, why did you not get an opportunity to either see it or to make an offer on it? When we're talking about in terms of the seller? Well, obviously having your property exposed to more people could only be a good thing, wouldn't you think? Once on the MLS, buyers from not only the local area but from across Canada and even all over the world now have access to your property's information to be able to decide if it might be a good fit for them to purchase.
If you're like most home sellers. There are lots of things that are important when you're selling a home. But certainly large exposure is a big one and thus also leading to getting the most amount of money for your sale without systems like the Multiple Listing Service or Realtor.ca as an example, we're really in a for-sale-by-owner type environment and there is many a study that has been published over the years about for sale by owner properties and how typically not only do they sit on the market for typically a lot longer time than a home that might be on the MLS.
But they also typically sell for much less money than they probably could have under the MLS and having the help of a professional realtor. So this was a great article and very interesting to consider. Now, there certainly could be detriments to this and there's probably a lot of positive as well, most of it in what I've mentioned in this post. But for you, the viewer reading at home, I'm curious what you think. Do you think this is good for the market?
Do you think it's bad for the market? Is it good for home buyers? Is it good for home sellers? Or maybe what is the Canadian Real Estate Association not considering when making these decisions and trying to help realtors across the country better serve the public that they take care of? Please leave your comments below.
I am so interested to hear what you think of this policy and proposed policy rather and what you think the impact it might have. Of course, don't forget while you're scrolling around down there, there is a link directly to my calendar. So if you have questions about the buying or selling process and you're looking to do something with your current living situation, reach out to us and we'll help be a resource to you for whatever you need. Guys, I want to thank you for reading. My name is Darin Germyn with the Germyn Group.
You've only got one chance to either buy or or sell your next home. A lot of stuff you get it right. Thanks for reading, and we'll see you on the next post. Cheers.