Consumers Want & Are Entitled To More Real Estate Data

  Over the past few years it seems that real estate has become one of the if not the hottest topics out there.  I get stopped on the street and in the grocery store by people (some of whom I do not know) asking me "how's the market or "what's going on with real estate?"  Not only is real estate of interest from an investment standpoint but judging by the myriad of home improvement shows on TV, home decorating, renovating, buying a second property for vacation purposes and or just moving up to something larger place are all playing a role in our fascination with real estate.

  Lately there has been an added emphasis both inside and outside the real estate community about a number of so-called "disruptive" new players entering the Canadian real estate market some of which are coming from the U.S.  Many have new "business models" removing the buying and particularly the selling process away from REALTORS® putting it into the hands of consumers alleging that there are considerable savings to be had in the form of not paying commission to a real estate salesperson and their brokerage.  A recent story with CBC about this trend asked "Is it the early days of a real estate revolution?"  It may not be a revolution but yes things are changing.

  Technology has played a huge role in our daily lives and real estate is no exception.  When I entered the real estate profession back in 2001 it was the almost the pre-Internet era and we still had MLS® catalogues that were printed by weekly.  By the time the catalogue was received many of the properties were already sold.  When the first "online" MLS ® systems started to appear we could load photos of homes online albeit about three.  Photo capacity was increased so as to permit nine, then thirty.  Now the number of photos we can upload is almost unlimited in addition to floor plans, virtual tours etc.

  Amongst the new players entering the Canadian real estate market are Zillow, Redin and an  Purplebricks who are based in Britain.  Whether these so called disruptors "revolutionize" our market remains to be seem but there is no question the real estate ;landscape is changing.  Some of these companies (and others) have raised tens if not hundreds of millions of dollars in investor financing yet they have yet to make any profit.

  Consumers want, need and in my opinion are entitled to more information that will assist them with their real estate buying and selling decisions.  As real estate professionals it is our responsibility to help them every step of the way  with their real estate buying and selling needs and along with the changes that have already taken place along with those yet to come, we need to adjust our roles in order to provide greater consumer value to the real estate buying/selling transaction.   As professional REALTORS® we need to be the providers of relevant and helpful consumer centric information rather than the self imposed "gatekeepers" of said information.

  On the the things consumer want is better access to data particularly for properties that have "SOLD."  Last year the Toronto Real Estate Board (TREB) lost a long standing case with the Competition Bureau claiming that releasing sold information etc. posed a threat to privacy issues.  As a result of the courts ruling, consumers can expect to see sometime in the near future more information available to the public.  Typically our practice is not to release MLS® "sold" information on a property until the sale has closed.  Sales sometime do fall apart and don't close be it for financing or other reasons. As a consumer, you would be both unhappy and disadvantaged if the sale price of your property was freely given out, the sale was not completed and the property have to be put back on the market for sale.  Would you want the world to know what you accepted or are prepared to take for your home?  I suspect not.

  I will report further on this subject in future posts, in the meantime I would love to hear your comments or feel free to Contact me if you have any questions or concerns as it relates to your particular real estate situation rickcrouch@propertycollingwood.com.

Real Estate Mistakes Happen.....That Shouldn't!

  An interesting article is circulating online about the unfortunate situation that a couple in the U.S. found themselves in regarding property they own.  See  "Local family calls out Zillow over real estate mistake."

  The incident in question involved the owners home on Lake Geneva which is located near the Illinois/Wisconsin border north of Chicago.  I lived in Chicago for four years and I am very familiar with Lake Geneva as I boated there.  It has a history as being the summer playground of Chicago's who's who including the Wrigley gum and Schwinn bicycle family's plus it was the location of the first Playboy Resort Hotel in the U.S. which opened in 1968.  

  The property in question was apparently listed for sale on Zillow a large online real estate portal in the U.S. and they are now in Canada and was stated as being in foreclosure when in realty it wasn't. The owners owned outright with no mortgage and it was not even for sale.  Zillow was apparently quick to realize the mistake and withdrew the listing.  The question to ask is how did this happen in the first place?

  Consumers often question the value that we as REALTORS® bring to the real estate transaction.  As I have stated in the past and for those that may be unfamiliar with our profession, in Ontario as in most parts of Canada, we operate under law which in Ontario is the Real Estate and Business Brokers Act.  Both the "Act" and the Canadian Real Estate Association (CREA) have strict Code of Ethics guidelines that those of us licensed top practice real estate must adhere to.  Mistakes like this shouldn't happen and as per Article 4 of the CREA Code "A REALTOR® has an obligation to discover facts pertaining to a property which a prudent REALTOR® would discover in order to avoid error or misrepresentation."

  Whether I am representing a Seller or a Buyer, I routinely verified everything regarding a property from room and lot sizes, to taxes, zoning and other matters.  I know first hand of a recent transaction outside of the local real estate market where the buyer of a $950,000 property sued the seller for $750,000 alleging misrepresentation.  The case dragged on for two years with the seller and the two REALTORS® via their insurance paying out over $130,000 just to make the matter go away.

  That is a lot of money in anyone's books, more importantly you can't put a value on the worry and stress that an ordeal like this has on you plus there is the added cost of legal fees.  Don't let this happen to you.  Whether you are buying or selling hire a REALTOR® that you feel confident with and don't be afraid to ask any questions regarding matters that are of importance to you.  It's all part of what we should know and the services we provide as real estate professionals.

  Zillow is now making inroads in Canada.  The U.S. real estate market is a very different from what we have in Canada.  There is no "national" MLS® system in the U.S. like we have in this country.  Like their banking industry the U.S. market in terms of MLS® coverage is very fragmented.  Only time will tell how successful Zillow becomes here, watch this blog for future posts and updates.