Is the days of the licensed realtor numbered due to the web and pay per listing?

Not at all. This similar system has been in place in the U.S. for many years, without making much of an effect on Realtors. This new system just takes all the risk out of our jobs as a Realtor. Instead of doing all that we do (marketing, market analysis, booking appts, open houses....) at our own expense. We know will be able to charge Sellers upfront, and not take risks with our own money.

I for one, am a big fan of the new system. Most of my client however don't seem to interested once they know the facts.

Do it yourself stores like HomeDepot have not killed the plumbing and other construction trades. Some people home-school but most prefer the services of professional educators. Selling one's property by one's self will work sometimes for some people, but many people don't have the qualifications to negotiate and manage a Real Estate transaction. I'm color blind (can't distinguish between certain shades of blue and green), so I definitely would not try to do interior decoration myself. If there really is no specialized skills involved in being a Realtor, then why do the top 5% of professional Realtors who do 95% of the business spend thousands of dollars each year on training, continuing education, and coaching? I think the real problem is that many consumers have hired bad Realtors who don't view the profession as a profession, and provide such a bad level of service that the customer is correct in thinking they can do better themselves.
The solution I think is consumer-ranking web services for Realtors,to truely find what people's feedback is on Realtors they have hired.

Absolutely not! Most consumers still choose to use a proffesional Realtor.

I don't see that changing anytime soon.

I'm sure a certain portion of the Market will disappear but people of wealth hire advisors to help them make large financial decisions . Buying a home is one of those decisions. There are times when you need a spreadsheet, a clerk, a book-keeper, an accountant and a CPA. I intend to fall into the CPA category and not compete with a spreadsheet.

Hi Rudy
This question has been getting a lot of attention from both the public and the media.
I don't think we as realtors are going to go the way of travel agents or stock brokers. Although there will be a part of the market that will choose to sell their home on their own (simply by listing it on MLS), I still believe the majority of people will want to use the services of a realtor. For most people their home is their single largest investment, and it only makes sense that they will want professional advice when selling it.

Ultimately the market will choose which business model is best. The full service brokerage or the low fee brokerage. The great thing is that now consumers have a choice. Do they want to hire (and pay for) a full service realtor? or are they confident they have the knowledge and time it takes to sell a home on their own?

I did a video blog about this recently. Feel free to check it out here: http://www.davidursino.com/video-blogs/latest/item/vaughan-real-estate-video-blog-59

The professional realtor just got stronger!

There has always been a small percentage of Sellers trying to sell on house on their own. Most are not successful and end up listing with a realtor. The same will be true in this scenerio. The difference being, they can list on th MLS. But that does not matter. For one thing, how many calls can they field by unqualified buyers before they realize how challenging a profesional realtor's job is? And why would a potential buyer not want to use the services of a professional. As of today, it does NOT cost the buyer any money for the service.

Time will tell how this will shake out but in my 16+ years as a professional real estate broker, everytime there is a change, my profession seems to always get stronger.

I agree with all above said. Let's just wait for the result. We, as real estate agent, don't give up making effort.

I agree with all of the above. Let's just wait for the result. We, as real estate agents, don't give up that easily!!!

We'll have realtors as long as we have properties to buy and sell.

I don't believe so. You can't replace a full service Real Estat Agent with a directory listing. Not every buyer has the option to sit and wait for their perfect listing to happen by them on the internet. Not every Seller wants to just post their home online and hope for the best result. A full service agent like myself is hired on reputation.

I don't believe Realtors will ever disappear as we add value to the process of selling or purchasing a home. It's not really understood how much responsibility we take with every transaction we do. The government holds us accountable for a number of things and this is where the pay per post sites may run into trouble.
Each client is owed duties by the agent depending on how they are being represented, the most basic are honesty, fairness and with integrity. We have a code of ethics to follow. Does everyone else? If you do run into a situation where there is a problem with the property or the seller gets a better offer than yours what recourse do you have? Using an agent for selling and buying, things like these would not happen and if they did, you do have recourse.

Just liek the guy who thinks he can renovate a bathroom as professionally as Mike Holmes and then quickly learns that renovations done properly are difficult.
There will always be a market for full service Realtors, just as their will always be a market for individuals looking for a cheaper quick fix.
The competition bureau should turn their attention to the scam of auto and home insurance.

This change offers the consumer the choice of Discount Brokerages or Full Service Brokers. As in all fields there are those that wish to DIY (Do It Yourself) without the assistance of a Professional Realtor. The majority of consumers will opt for a form of Full Service Brokerage, in which the Realtor works on the premise that a Sale or Purchase will take place, and pay the costs of this up front, and recapture these costs when the Sale is completed. Some forms of Discount Brokers will offer certain services for an upfront payment of a fee. The old addage, "You get what you pay for" applies to how much service you will want.

Days numbered? yes for some.

But .... the attrition rate is historically 80% in first two years.

Many folks in industry today started their careers after 1997 and know only Seller's Market and or Boom conditions.

A return to "normal" ie Buyer's Market or "balanced" conditions will be a shock. Recall Q4 2008 and Jan 2009? Listings easy, full commissions promised at listing-time and sales difficult?

The web is but an info source and advertising vehicle - like the Saturday TorStar and the Friday Globe & Mail used to be.

What buyers want initially is "all the info on all the homes", then they discover that they need to filter the info and want ONLy to see good-value homes, IN their price-range and IN their target market-niches.

The rest don't matter.

The result is, Buyers either find their "dream home" by gracious good fortune within a few weeks OR find a Registrant who seems to understand their needs/wants/objectives and has a selling-style or personal-manner that agrees with the Buyer.

Then together, the registrant sorts and suggests and the Buyers view only the "best of the bunch"

Simply placing a property on a website (even on www.realtor.ca TM) is not sufficient in a competitive market of many listings.

The Buyer Brokers "match the buyer to the home" -s/he's not an order-taker (in a normal market anyway) in an effort to find the buyer a suitable property within a reasonable time-expenditure on the BUYERBROKER's part - and as a result in a time-efficient manner for the Buyer her/himself.

Money IS time.

The Listing Agent's primary job is to prepare the Seller's expectations on time and money.

The Seller must be acclimatized to the current up or down value ACHIEVABLE within the amount of time they have to offer the home for sale ... allow for viewings .... allow for conditions and searches ... until the closing.

Example it's Dec 15/2010 and the seller want to move to Calgary for a new job on March 31/2011.

Work backwards March 31 is planned closing ...allow 60 days ... must have a firm transaction by Jan 31, so need a conditional offer accepted by Jan 15.

Allowing 4 weeks to find a buyer (notwithstanding school-break/ seasonal 'pause' Dec 20-Jan 10)gotta get going today!!

The changes I predict we'll see are with "teams" - they'll get smaller, 2-4 family or close members.

The pace will change and so carrying 30-50 listings as a "Team Leader" and delegating servicing to others will be more difficult if homes stay for sale beyond 33 days .... Sellers want attention ... personal attention.

The "great promise" of "list for small fee and pay only $1 to Buyer Broker" concept has already faded.

The Seller who is attracted to the idea of "out-smarting" the commission-based sales force .... soon discovers s/he's outsmarted her/himself as s/he gets no reaction from Buyer Brokers and super-discount offers from private and or "assisted" buyers.

We'll talk about again in 12 months.

Days numbered? yes for some.

But .... the attrition rate is historically 80% in first two years.

Many folks in industry today started their careers after 1997 and know only Seller's Market and or Boom conditions.

A return to "normal" ie Buyer's Market or "balanced" conditions will be a shock. Recall Q4 2008 and Jan 2009? Listings easy, full commissions promised at listing-time and sales difficult?

The web is but an info source and advertising vehicle - like the Saturday TorStar and the Friday Globe & Mail used to be.

What buyers want initially is "all the info on all the homes", then ... they discover that they need to filter the info and want ONLY to see good-value homes, IN their price-range and IN their target market-niches.

The rest don't matter.

The result is, Buyers either find their "dream home" by gracious good fortune within a few weeks OR find a Registrant who seems to understand their needs/wants/objectives and has a selling-style or personal-manner that agrees with the Buyer.

Then together, the registrant sorts and suggests and the Buyers view only the "best of the bunch"

Simply placing a property on a website (even on www.realtor.ca TM) is not sufficient in a competitive market of many listings.

The Buyer Brokers "match the buyer to the home" -s/he's not an order-taker (in a normal market anyway) in an effort to find the buyer a suitable property within a reasonable time-expenditure on the BUYERBROKER's part - and as a result in a time-efficient manner for the Buyer her/himself.

Money IS time.

The Listing Agent's primary job is to prepare the Seller's expectations on time and money.

The Seller must be acclimatized to the current up or down value ACHIEVABLE within the amount of time they have to offer the home for sale ... allow for viewings .... allow for conditions and searches ... until the closing.

Example it's Dec 15/2010 and the seller want to move to Calgary for a new job on March 31/2011.

Work backwards March 31 is planned closing ...allow 60 days ... must have a firm transaction by Jan 31, so need a conditional offer accepted by Jan 15.

Allowing 4 weeks to find a buyer (notwithstanding school-break/ seasonal 'pause' Dec 20-Jan 10)gotta get going today!!

The changes I predict we'll see are with "teams" - they'll get smaller, 2-4 family or close members.

The pace will change and so carrying 30-50 listings as a "Team Leader" and delegating servicing to others will be more difficult if homes stay for sale beyond 33 days .... Sellers want attention ... personal attention.

The "great promise" of "list for small fee and pay only $1 to Buyer Broker" concept has already faded.

The Seller who is attracted to the idea of "out-smarting" the commission-based sales force .... soon discovers s/he's outsmarted her/himself as s/he gets no reaction from Buyer Brokers and super-discount offers from private and or "assisted" buyers.

We'll talk about again in 12 months.

Days numbered? yes for some.

But .... the attrition rate is historically 80% in first two years. So this "new era" will only be one factor.

Many folks in industry today started their careers after 1997 and know only Seller's Market and or Boom conditions.

A return to "normal" ie Buyer's Market or "balanced" conditions will be a shock. Recall Q4 2008 and Jan 2009? Listings easy, full commissions promised at listing-time and sales difficult?

The web is but an info source and advertising vehicle - like the Saturday TorStar and the Friday Globe & Mail used to be.

What buyers want initially is "all the info on all the homes", then ... they discover that they need to filter the info and want ONLY to see good-value homes, IN their price-range and IN their target market-niches.

The rest don't matter.

The result is, Buyers either find their "dream home" by gracious good fortune within a few weeks OR find a Registrant who seems to understand their needs/wants/objectives and has a selling-style or personal-manner that agrees with the Buyer.

Then together, the registrant sorts and suggests and the Buyers view only the "best of the bunch"

Simply placing a property on a website (even on www.realtor.ca TM) is not sufficient in a competitive market of many listings.

The Buyer Brokers "match the buyer to the home" -s/he's not an order-taker (in a normal market anyway) in an effort to find the buyer a suitable property within a reasonable time-expenditure on the BUYERBROKER's part - and as a result in a time-efficient manner for the Buyer her/himself.

Money IS time.

The Listing Agent's primary job is to prepare the Seller's expectations on time and money.

The Seller must be acclimatized to the current up or down value ACHIEVABLE within the amount of time they have to offer the home for sale ... allow for viewings .... allow for conditions and searches ... until the closing.

Example it's Dec 15/2010 and the seller want to move to Calgary for a new job on March 31/2011.

Work backwards March 31 is planned closing ...allow 60 days ... must have a firm transaction by Jan 31, so need a conditional offer accepted by Jan 15.

Allowing 4 weeks to find a buyer (notwithstanding school-break/ seasonal 'pause' Dec 20-Jan 10)gotta get going today!!

The changes I predict we'll see are with "teams" - they'll get smaller, 2-4 family or close members.

The pace will change and so carrying 30-50 listings as a "Team Leader" and delegating servicing to others will be more difficult if homes stay for sale beyond 33 days .... Sellers want attention ... personal attention.

The "great promise" of "list for small fee and pay only $1 to Buyer Broker" concept has already faded.

The Seller who is attracted to the idea of "out-smarting" the commission-based sales force .... soon discovers s/he's outsmarted her/himself as s/he gets no reaction from Buyer Brokers and super-discount offers from private and or "assisted" buyers.

We'll talk about again in 12 months.

Not at all. For some maybe,...but for the dedicated professionals...it presents a great opportunity to show Sellers and Buyers the benefits of Realtor's service vs. do it your self, especially in the "buyers" market.
(There are some "handyman" who can install cabinets, but majority of people can't.)

I think the biggest test that will come in the near future as a result of the new rules, will be to see how much of an increase there will be with Real Estate transaction lawsuits.

I believe there is a deep lack of understanding with the majority of consumers as to all the potential liabilities and risk there is involved in a Real Estate transaction. It will not take long for an individual to learn once faced with a lawsuit.

The Real Estate industry is governed by many bodies of government and each area has an Act and set of Rules and guidelines to follow, coupled with ongoing mandatory education (Mainly based around legal understanding of new rules).

As a licensed professional, with a minimum requirement for education, we protect the consumers at large from personal liability. When you hire a professional Realtor, you are protected with errors and ommissions insurance, as well as being protected from misrepresentations or fraudulent behaviour. Each Association has it's own governing Council that includes investigating complaints, ensuring protection of the consumer, governing Assurance Funds and handing out disciplinary action against Licensed members who are found guilty of inappropriate conduct (Which includes revoking licenses).

It takes a long time to learn all of the legal concerns in a Real Estate trade, so why not protect yourself by using a professional. What you may save in fee's, will most likely not cover any potential court awarded damages and legal fee's.

Not at all - I believe that our profession will continue to provide an invaluable service to our clientele. Buying and selling a home can be a complicated process and most people prefer to have professional guidance when making what is most likely the largest purchase of their lives!

Hello Rudyxhiebert,

The answer is yes, no, and who knows! Lets sit down for a coffee and talk about real estate, the economy, agents, the web, and what I can offer you.

-David

I don't think so.
There will always be a demand for professionals; as you probably know, this profession is handled in a different way in different countries, so the way of doing business will change, as it is every day.

In the end, if your Realtor is a professional, treats you with respect and can help you through your transaction--making you happy in the end, then I think this type of personal approach will most likely end up out-weighing some of the other pay-as you go real estate business.
Many people still like to know that they can rely on a specific person (their own Realtor) do help them through the Purchase and/or Sale of a home.

Twentyfive years ago when I started selling homes there were Realtors who were discount brokers, If that was what the public had wanted then I should not be the one still selling realestate and those companies should still be in business. Those companies that were discounting fees 25 years ago are gone replaced by new ones who dont last either

yfive years ago when I started selling homes there were Realtors who were discount brokers, If that was what the public had wanted then I should not be the one still selling realestate and those companies should still be in business. Those companies that were discounting fees 25 years ago are gone replaced by new ones who dont last either Twent