March 2019

Page 1

Issue #357

March 2019

Mike Montague and Arif Khan Hitting home with a sales rep and a mortgage broker

Canada Post Publications Mail Agreement No. 42218523 - Return undeliverable Canadian addresses to 2255B Queen St. E., #1178, Toronto ON M4E 1G3

Page 10

Mortgage rates: Good news, bad news Page 3

Redfin ready to launch in Canada Page 16

Commission judgment to be appealed Page 26


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REM MARCH 2019 3

Mortgage rates: Good news, bad news

Interest rates have been hiked five times by the Bank of Canada since July 2017 but indications are that rate hikes may not be on the horizon this year. By Danny Kucharsky

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he good news is that mortgage rates are unlikely to go higher this year in Canada. The bad news is a lack of interest rate hikes indicates the Canadian economy is slowing down. So says mortgage broker David Larock, president of Integrated Mortgage Brokers in Toronto. If mortgage rates go higher, it would likely indicate the economy is on the upswing “and I don’t think the economy is going to improve,” Larock says. His best guess is that five-year fixed and five-year variable mortgage rates will be lower in 12 months. Larock says many forecasters predict that the long U.S. economic expansion is due to end soon. If the U.S. and Canada get hit with a recession this year, mortgage rates are almost certainly headed down, as rates historically fall during a recession. Interest rates have been hiked five times by the Bank of Canada since July 2017 but indications are that rate hikes may not be on the horizon this year. The central bank estimates that it can take anywhere from 18 to 24 months for the rate hikes to work their way into the economy. This means “the impact of all the rate hikes is just now starting to kick in” and the economy will continue to feel the impact of those

rate increases until late 2020. In addition, if the U.S. economy slows or hits recession, the U.S. Federal Reserve will have to reverse course with interest rates and is “already starting to sound like it may well do that.” In late January, the Fed indicated that it does not anticipate any additional rate increases in the immediate future. “If the Fed lowers rates, the Bank of Canada simply has to follow,” Larock says. That’s because if the Fed cuts rates and the Bank of Canada holds steady or raises them “the loony will soar against the greenback and that will hammer our exporters.” When it comes to mortgage terms, Larock says there is not much of a discount for opting for a short-term fixed mortgage of one or two years instead of a five-year fixed. “It really only makes sense to go with a shorter-term fixed rate if you’re getting paid a big discount.” He adds there is no one-sizefits-all answer when it comes to deciding whether homeowners should opt for fixed versus variable mortgages – it really depends on their specific situations. While borrowers pay a premium for fixed-rate mortgages, rate stability comes with that premium, he says. “I look at it as buying rate insurance to go with a five-year

fixed instead of a five-year variable.” Variable rate mortgages make more sense for more established buyers who are comfortable with fluctuating payments and have incomes that could comfortably cover any changes in payments, he says. As for which option – variable or fixed - will prove to save money in the next five years, Larock’s bet is variable. But he says the savings won’t be as compelling as they have been in the past. Frank Napolitano, a mortgage agent and founder of Mortgage Brokers Ottawa, agrees with Larock that the Bank of Canada will be “hard pressed” to continue to raise rates this year. “It would do way more damage to the economy than good.” Napolitano says current choices for a five-year variable rate mortgage “are extremely attractive,” with some lenders offering rates at prime minus 1.1 points (or 2.85 per cent in late January). However, “everybody has their own risk tolerance” and it is probably a bad idea to push someone who is extremely conservative into a variable mortgage “because they’re going to be nervous the entire time.” About 35 to 40 per cent of his clients are opting for five-year vari-

David Larock

able terms, Napolitano says. He says while mortgage rates have increased since 2017, the biggest obstacle to home buyers is the mortgage stress test, which makes it harder to qualify for mortgages. “We’re seeing more than ever the mom and dad bank having to help out with the down payment or, in way more cases than we’d like to see, the parents have to cosign with their kids to be able to afford the mortgage.” Many of these home buyers would have qualified before the stress test was introduced, he says. Several lenders outside of the Big Five banks, such as First National, are offering alternative products for people who do not qualify for traditional mortgages under the stress test. But these secondary mortgages

are generally not for first-time home buyers, Napolitano says. They are better geared to people who have saved enough to pay a 20 per cent down payment but are self-employed and don’t qualify with their banks or couples going through a matrimonial breakup. “That’s what we’re seeing a lot of.” According to a report by Will Dunning, chief economist at Mortgage Professionals Canada, last year’s reduction in the Canadian housing market due to interest rates was worse than it should have been, mostly due to mortgage stress tests. He notes the resale housing market remains depressed and does not expect an imminent recovery to normal levels. Large and growing numbers of young, middle-class Canadians will be denied the opportunity to build their financial futures through home ownership, Dunning says. However, the majority of borrowers who expect to renew their mortgages in the near term will experience little change or mortgage cost increases that they can afford, Dunning writes. His data suggests that a very small minority of mortgage borrowers (perhaps one per cent or about 50,000 out of six million mortgage holders) will face substantial and challenging REM cost increases this year.

Mortgage brokers urge revisions to stress test F

ederal policy changes designed to cool housing prices and demand continue to impact housing markets across Canada with cascading consequences and pressures, says a new report by Mortgage Professionals Canada (MPC). The slowdown in the various housing markets across the country are more pronounced than anticipated, says MPC. “We are seeing

downward trends and/or depressions in areas like the resale market, the outlook on employment in the housing construction sector and a continued decline in rental vacancy rates,” says Paul Taylor, president and CEO of the organization. “Federal policy changes are disqualifying potential first-time homebuyers and creating immense pressures on the rental market, which is in turn driving rental prices higher. It

is a spiralling problem.” The report says that improper policy levers can continue to depress the market. “While the government has been focused on borrowers and interest rates, the reduction of activity in the housing market and extremely low rental vacancy rates will impact not only costs to firsttime homebuyers and all renters, but also impact employment and

the overall economy,” says Will Dunning, chief economist for Mortgage Professionals Canada and author of the report. “As a result of these policies, the economy will be weaker than it needs to be.” Taylor says the association supports “prudent and evidence-driven actions to test a borrower’s abilities to make future payments. Our report illustrates that a more reasonable stress test level and lending

restriction reforms are now needed to strike a better balance for borrowers and policymakers, improving housing affordability and Canada’s economy.” Mortgage Professionals Canada is the national mortgage industry association representing 11,000 individuals and 1,000 companies, including mortgage brokerages, lenders, insurers and industry service providers. REM


4 REM MARCH 2019

Multiple Listings By Jim Adair, REM Editor

Do you have news to share with Canada’s real estate community? Let REM know about it! Email: jim@remonline.com

M

acdonald Real Estate Group in Vancouver, parent company of Macdonald Realty, Macdonald Commercial, Macdonald Property Management and Platinum Project Marketing, has appointed Dan Scarrow as president. He replaces Lynn Hsu, who will remain as chairwoman and CEO. “Dan has demonstrated strong leadership and business acumen, both in our operations in Canada and our successful office in Shanghai, China,” says Hsu. “Many of Dan’s strategic decisions over the past 10 years have been

instrumental in getting us to where we are today.” Joining the company in 2006, Scarrow was first a residential salesperson, selling more than $50 million in his first year, and then moving to commercial and earning an Award of Excellence or Sales Achievement Award in each of the following four years. In 2010, he was named VP operations, helping the company expand during that period, the company says. From 2014 to 2018 he was based in Shanghai, opening and running Macdonald’s office there (branded the

Canadian Real Estate Investment Centre). Founded in Vancouver in 1944, Macdonald Realty is B.C.’s largest full-service corporately owned real estate company, with more than 20 offices and 1,000 salespeople and staff. The company has 40 commercial agents. Macdonald Property Management currently manages over $5 billion in B.C. properties. Macdonald Platinum Marketing has sold over $2 billion in luxury new construction, and is the principal marketer for Vancouver’s Coal Harbour. ■ ■ ■

The husband and wife team of Mathieu Lagarde and Christine Gauthier recently opened Christine Gauthier Immobilier in Montreal. The new brokerage launched with seven brokers and four support staff.

Dan Scarrow

Gauthier has been in the real estate business for more than 20 years. She was the top salesperson at Re/Max Ambiance in Montreal as well as for Re/Max for the island of Montreal. Lagarde was a private banker, managing more than $100 million of private investments prior to entering the real estate business. “We have two of our six kids already involved in the business,” says Lagarde. “Our goal is to create a new model of brokerage, a unique boutique, where there is no competition between agents, where we all work together to provide the best experience for our clients and for our agents. We provide leads, training, offices, no expenses for the agents and a program for them to take real vacations and time off.” ■ ■ ■

Audrie and Tim Beaulieu of Century 21 A&T Countryside Realty, with offices in Moncton, Sackville and Campbellton, N.B., recently acquired Century 21 River-Valley Realty, which has offices in Saint John, Fredericton and St. Stephen. The Beaulieus have been aggressively expanding their busi-

Nancy Thorne

At the grand opening of Engel & Völkers Pickering Ajax, from left: Jacquelynn Tanner, Ajax-Pickering Board of Trade; Benjamin Corbier, license partner; and Shaheen Butt, councillor, City of Pickering.

Angelique Haysom

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Vancouver Island real estate professionals Kirsten Marten and Mark Rice, formerly associated with local Re/Max brokerages, recently acquired Coldwell Banker Slegg Realty. The brokerage, based in Victoria and Nanaimo, has been renamed Coldwell Banker Oceanside Real Estate. Marten and Rice were raised on Vancouver Island and have strong roots in the community. “We plan to take the company to the next level,” says Rice. “Working with the existing management team and sales force and maximizing the depth of resources offered by the Coldwell Banker global brand, we’ll continue to raise the bar.” ■ ■ ■

Joe D’Addio and his boutique brokerage Citizen Realty in Concord, Ont. have joined the Royal LePage network. The brokerage, which was established in 2016, now operates as Royal LePage Citizen Realty. D’Addio has 27 years of real estate experience within the Greater Toronto Area, alongside his team of more than 20 agents. The company says they have handled “tens of thousands of residential real estate transactions and pre-construction sales.” “We pride ourselves on helping our clients with decisions that serve them well into the future,” Continued on page 6

Mark Rice and Kirsten Marten

Joe D’Addio

ness since joining Century 21 four years ago. The brokerage now has 50 sales reps and staff. Nancy Thorne, the former owner of Century 21 River-Valley Realty, says, “There comes a time to pass the torch and I am thrilled to be passing the torch to Audrie and Tim…I’m excited to remain as part of their team and return to my original real love of listing and selling real estate.”

From left: Shami Sandhu, regional director, Realty One Group; and Realty One Group Insider co-owners Merrick Duggan and Dan Rowland.

Kate Reisinger



T

oronto-based Peerage Realty Partners has acquired a strategic partnership interest in independent brokerage Madison & Company Properties of Denver. The transaction marks Peerage’s first partnership in the United States, but the company says it “anticipates making several investments in 2019 and beyond.” “Expanding our unique partnership model to the U.S real estate brokerage industry is a core part of our long-term strategy to partner with leading brands with strong, entrepreneurial founders and management teams in key markets across North America,” says Miles S. Nadal, founder and executive chairman of the Peerage Capital Group. “While the industry is experiencing unprecedented change, our goal is to partner with firms who share our belief in the enduring value of attracting and retaining the best agents and providing them with state-of-the-art tools and resources… From our first meeting with Madison, we knew we had found a partner who shares this passion.” Founded in 2008, Madison “is one of the leading boutique real estate firms in the Denver metropolitan area, servicing both the residential and commercial markets,” the company says. It has seven Denver-area locations and about 150 brokers and staff. The brokerage ranks second for production per agent in Denver, the company says. Todd Narlinger, founder of

Cover photo: ELIJAH SHARK

Continued from page 4

says D’Addio. “And, with the immediate brand awareness that comes with the Royal LePage banner, my agents now have the power of an established brand behind them.” ■ ■ ■

Madison, will continue in his role as CEO and “retain a significant equity stake under the unique Peerage partnership model,” says the company. “In Peerage, we found an ideal partner with the resources to continue our investments in enhancing our service platform for our agents, and to accelerate our ambitious expansion and growth plans, while preserving our operational independence and culture,” says Narlinger. “In addition, we also gain invaluable access and business support from Peerage and its network of successful partners. We were particularly impressed by the leading independent brands represented by Peerage’s existing partners, and their long-term track record of owner retention.” Gavin Swartzman, president and CEO of Peerage Realty Partners, says, “Madison represents the perfect opportunity to initiate our U.S. expansion, given its exceptional management team, strong market position and abundance of growth opportunities. There is a solid cultural fit between our organizations.” Peerage Realty Partners, a subsidiary of Peerage Capital, is also partnered with Chestnut Park Real Estate in Toronto; Baker Real Estate, the leader in new development and condominium sales and marketing in Ontario and Montreal; Fifth Avenue Real Estate Marketing in British Columbia; and StreetCity Realty, which has 10 offices in Ontario.

Realty One Group Insider recently opened in Leduc, Alta. It’s the first Canadian office of the franchisor, which has more than 160 offices in 35 U.S. states. The new office serves Leduc and Wetaskiwin County. “Realty One Group has been expanding rapidly in the U.S. because of its unique business model and because of its agentfirst approach,” says Realty One Group Insider co-owner Dan Rowland. He partnered with Merrick Duggan to open the Edmonton-area office with the help of Realty One Group regional director Shami Sandhu. He says the offices’ “you-first culture will attract others as it did us because of our strong family values and want to experience a fun and inviting office environment.” The brokerage’s leadership team has over 25 years of combined experience in real estate. ■ ■ ■

Angelique Haysom is the newest member of the Century 21 Dome management team, joining Nolan Tabashniuk and Brent Ackerman as co-owners. Haysom has been with the brokerage for two years. A Saskatchewan native, she says her aim is to continue to train and strengthen its team. “I look forward to dedicating my time to helping our agents and improving our business processes. I am up for the challenges the industry and market present,” she says. The brokerage has 89 sales reps

REM

President & CEO WILLIAM MOLLS will@remonline.com

Editor JIM ADAIR jim@remonline.com

Director, Sales & Marketing AMANDA ROCK amanda@remonline.com

Production Coordinator JUDY CUPSKEY production@remonline.com

Brand Design SANDRA GOODER

Art Director LIZ MACKIN

Graphic Design SHAWN KELLY

Questions or comments? info@remonline.com

■ ■ ■

Engel & Völkers celebrated the launch of its newest real estate shop in Pickering, Ont. recently with a grand opening event. Led by license partner Benjamin Corbier, Engel & Völkers Pickering Ajax will serve the Pickering, Ajax, Whitby, Oshawa, Brooklin, Bowmanville, Scarborough, Stouffville, Uxbridge and Newcastle areas. “With Ben’s expert knowledge of the changing real estate landscape in Pickering and its surrounding areas, this shop brings a new level of quality service to its local community that continues to evolve,” says Anthony Hitt, president & CEO of Engel & Völkers Americas. The grand opening was held at the brokerage’s new shop at 1899 Brock Rd. There were 75 guests including clients, business partners, friends and special guests. ■ ■ ■

Chicago-based Leading Real Estate Companies of the World (LeadingRE) has named Kate Reisinger as executive vice president, member services. In this role, she will manage membership services for the firm’s global network of 565 independent real estate firms. Reisinger will oversee the core broker referral program, which generates over 30,000 member-tomember referrals annually, and will work closely with other members of the senior management team to develop and execute corporate strategy, the company says. Reisinger has more than 13 years of real estate executive experience. ■ ■ ■

Re/Max recently introduced a customizable video generator as

2255B Queen Street East, Suite #1178 Toronto, ON M4E 1G3

Phone: 416.425.3504 www.remonline.com REM is published 12 times a year. It is an independently owned and operated company and is not affiliated with any real estate association, board or company. REM is distributed across Canada by leading real estate boards and by direct delivery in selected areas. For subscription information, email distribution@remonline.com. Entire contents copyright 2019 REM. All rights reserved. Reproduction in whole or in part without written permission from the publisher is prohibited. The opinions expressed in REM are not necessarily those of the publisher. REALTOR® and REALTORS® are trademarks controlled in Canada by The Canadian Real Estate Association (CREA) and identify licensed real estate practitioners who are members of CREA. MLS® and Multiple Listing Service® are trademarks owned by CREA and identify the services rendered by members of CREA. REM complies fully with the CREA’s Trademark Policy (section 5.3.2.6.1). ISSN 1201-1223

part of its 2019 advertising campaign. The company’s salespeople can create their own personal 15second videos for promotion across most social media platforms, personal and professional websites or on local television stations. “Giving our network the ability to create instant, customized ads brings another layer to Re/Max’s robust value proposition,” says Anthony Volpini, Re/Max Integra’s director of marketing, North America, in a news release. “By arming our real estate agents with this industry-first marketing tool, we’re allowing them to focus their time and energy on what they do best – helping their clients to buy and sell homes.” Re/Max’s 2019 advertising campaign also includes billboards and online ads. The brand has also launched two new tools for consumers searching for property on remax.ca. Re/Max Radar is a new listing notification tool. Those who opt in will receive email notifications when a listing that matches their search criteria is added to the site. Every listing is now accompanied by the new “Schedule A Viewing” button, which lets homebuyers contact the listing agent to schedule a walk-through. They can identify their preference of weekends or weekdays, mornings or afternoons, and add comments to the listing agent. MaxPerx, a new partnership between Re/Max and wellknown brands, offers exclusive discounts on a variety of products and services. MaxPerx partners include: 1-800-GOT-JUNK, PODS, FrogBox, Just Energy, Telus, Lowes, Sun Glow, Hydropool, Jacuzzi and Swimlife Swim Spas. Re/Max says as it continues to roll out the discount program, more partners will be added to the list. REM

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Peerage expands to U.S. with partnership

and was ranked No. 6 by units sold for Century 21 Canada in 2018.

Multiple Listings


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10 REM MARCH 2019

Sales rep and mortgage broker on the air

Sales rep Mike Montague and mortgage broker Arif Khan hope their local TV show will take away the fear that real estate is getting beyond the reach of the average Canadian. By Susan Doran

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ronically, most television shows about real estate aren’t hitting home, say Mike Montague and Arif Khan, both based in Barrie, Ont. As they see it, the issue is too much glitz and not enough substance. “Offerings include shows on decorating and flipping properties, which make it look easy. But once you cut away the sparkle, what’s lacking are the nuts and bolts,” says Khan, principal/broker with Solid Ground Mortgage Solutions. Adds Montague, a sales rep with Re/Max Crosstown Realty, “We felt the need was there for a television show that provided knowledge, insight and opinion on real estate and finance matters on a regional scale – a show for viewers who may be, or wish to be, home buyers, sellers and investors.” The pair are long-time friends and business associates, and experienced community and industry advocates. Neither ever seems to be at a shortage for words. “There’s no such thing as brevity with either one of us,” Montague says. “We knew we’d never run out of things to say.” So, when he approached Khan about making a pitch together to the local Roger’s cable television channel for a real estate and mortgage financing themed community show, Khan was all for it. It was a go. Hitting Home with Mike & Arif is now in its second season, with new shows airing Mondays at 6 p.m. Most guests on the show work in and around the local real estate and mortgage industries. There is now a weekly podcast as well, on which Montague and Khan are able to self-promote (“blatantly,” they joke), something that isn’t allowed on the cable show. (Montague,

in order to avoid any conflict of interest, says that although he frequently refers Khan to clients looking for mortgage financing, Khan’s name is only one of several provided.) One happy outcome of the show for the pair is that it translates to instant credibility with clients. “It doesn’t hurt to have it on your resume. I wouldn’t say it has caused the phone to ring off the hook though...and no one is asking for autographs,” says Montague, laughing. “Setting oneself apart and standing out from the herd is an ongoing challenge,” he says. “Arif and I are managing to carve a bit of a niche through the opportunity. “We have been venturing beyond the traditional conventions to expose our business services to the Barrie and area market, while at the same time providing a reliable local source for real estate and mortgage financing knowledge... The time and cost are minimal and the responsibility of hosting a TV show and a podcast has been a great source of encouragement to stay as informed and up to date as possible.” The education component is important to them both. Times have changed, says Montague. “It’s a multiple step process to buy a dream home now. You might have to be creative – rent out your basement, for instance. We can teach you ways to get involved in the market, to get mortgages and equity creatively, how to buy an income property, what to look for.” Says Khan: “We’re taking away the fear that real estate is becoming beyond the reach of the average Canadian. Financial literacy is a huge part of the show.” To this end, there have been appearances by local Realtors, home

Arif Khan, left and Mike Montague (Photo: Elijah Shark)

inspectors, stagers, developers, city planners and other experts. Guests have also included Barrie Mayor Jeff Lehman (discussing affordability and availability; like much of the rest of Canada, Barrie has a shortage of affordable housing) and Ontario Real Estate Association CEO Tim Hudak (on market conditions, not to mention his passion for barbecuing). Although Montague had some TV experience from a previous show he’d done with the station, there’s been a learning curve. For starters, “We’ve had to learn how to re-vitalize a conversation,” says Khan. “We’ve talked to people on the street who we thought would make engaging guests. But then when we got them on the show, they froze.” When doing the podcasts, the pair also has to remember that unlike the cable show, they’re streaming live. That was hammered home the hard way, after Khan accidentally swore on air. Active in the community, both Montague and Khan previously ran for Barrie city council (Khan successfully, Montague not).

Montague has almost 20 years in real estate behind him (and a background as a commercial and industrial project manager) and is a director for the local real estate association. Khan, a former cinematographer, became a licensed mortgage broker over a decade ago, determined to become financially literate following a disastrous personal experience with debt where he found himself “with more month than money, classically not opening the mail in case it was bad news.” He recalls, “I had no idea I could have accessed equity in my home and addressed the issues I had, saving myself a ton of grief and interest.”

better situation.” Khan’s lending advice for potential home buyers? “For starters, it’s important to find out what you qualify for long before you sign anything.” No two clients are the same, he stresses. So, a good lender will get to know your situation, “including your three- to five-year outlook, in order to find you the product that best suits your needs.” The current market is transitional, he and Montague agree. Neither is happy with the fallout from the mortgage stress test imposed by the government. “It’s like hitting a thumbtack with a sledge hammer,” says Khan.

Besides stressing the importance of being informed on financial matters, he’s a proponent of “the daily tweak” – things that can be done to change habits and cut expenses. Maybe buy one donut, not two, he says. Maybe you don’t need two packs of cigarettes or that new television.

The changes around mortgages have downsized the purchasing power of the average homeowner, he says, and have also created a backlog on the rental market, which was already incapacitated.

“Those little changes don’t seem like much, but in the long term they can put you in a

There is opportunity in every market, they say, including this one. REM

But he and Montague remain hopeful in their message to viewers and clients.


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12 REM MARCH 2019

Cultivating referral partnerships

Building referral relationships now can pay huge dividends in the long run. By Toby Welch

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aving referral partnerships in your area with mortgage brokers, moving companies, painters, home inspectors, storage facilities, plumbers, contractors, insurance agents, lawyers and the like can be a win/win for you. The oftenhandshake relationships can result in more leads and more business. Another side bonus is that you already have experts lined up when your buyers or sellers need a connection, increasing your value to your clients. Building referral relationships now can pay huge dividends in the long run. A real estate broker from Vancouver who asked not to be named says, “I have several relationships with partners like mortgage brokers, photography experts, inspectors, lawyers…. Technically, we’re not supposed to favour one

over the other. We are supposed to recommend a minimum of three options to whoever we’re referring to, although almost all of us pick our favourites. Given the current regulatory environment, I’m careful to follow the rules as they’re spelled out, mostly because the penalties for not doing so have multiplied by ten. I’m keen to stay on the right side of the regulators.” Patricia Clarke, a broker with Your Choice Realty in Ottawa, finds mortgage agents and brokers are the most helpful relationships to have. “Most buyers and sellers depend on a mortgage to complete a real estate transaction. Having a good mortgage professional working with us and our clients is a must. Keeping the transaction moving forward is often dependent on financing.” Clarke points out another

bonus of such partnerships, “We require that the professionals that we work with provide our clients with 100 per cent quality, because once we recommend them, our name and reputation is on the line. Our goal is not only to create relationships to get new clients, but to create these alliances to be able to provide our clients with a complete solution for their home purchase or sale. Once a client comes to us…they don’t need to then waste time looking for the other professionals required to complete the purchase or sale…we provide them with choices that may work for them to supply their needs and complete these transactions.” When looking for referral partners, seek out companies that deal with many of the same types of people as your clients. Partners who have similar prospects will

Letters to the Editor Writer should clarify comments I generally enjoy reading the articles here and I appreciate your efforts. I just fail to understand the reason to choose to include this article (Warning: This ad may offend you) as the headline piece for this week’s publication. I’m not certain, but it seems to me from the opening paragraphs that the writer seems to imply that we do not need to be mindful about “racial insensitivity” or “racial stereotypes”...? Is this the position that we want to embrace as an industry that is comprised of many different individuals of many different backgrounds? Should we not take an approach that is mindful of free speech and our democratic principles while still seeking to root out prejudice and intolerance? The writer seems to imply (again if I understood it correctly) that just like her ad should be allowed and accepted, so too should all other ads/logos/costumes/etc... Why is that so? It is not a zerosum game. Her holiday ad sounds wonderful and she should certainly keep placing it if she wants... but that doesn’t mean that everything else is acceptable. And it’s certainly no reason to mock the Canadian masses, as the first paragraph so clearly does! As a Realtor, I can’t for the life of me understand how the editorial board chose and decided upon this piece. Truly nothing to do with real estate. I suggest sending out a follow-up. If not an outright apology then at the very least an explanation or clarification of the writer’s position and the reason REM decided this was worth sharing. Strange, indeed. Yehuda Gelberger Sales representative Re/Max Realtron Realty Inc., Brokerage REM Toronto

Patricia Clarke

Richard Payne

result in cross-referrals that are more desirable. When forming partnerships, both parties need to make their expectations clear and establish what they will bring to the relationship. Richard Payne, a real estate agent with Keller Williams Select Realty in Bedford, N.S., has a strategy for deciding who to form a working alliance with: “It starts with a reputation or a ‘you should talk to’ from another trusted person. Then there is a little research and online searching to find out more about the person and how they appear online and in the social world. I look for partners to form a long-term relationship with. It doesn’t have to be real estate related as I want to be sure to provide all the people who know me with help by knowing the best people and services.” Payne continues, “My mortgage broker is definitely the most helpful. I can’t help people find the right house if they can’t get the right financing for them. Having said that, my lawyer, inspector, water quality and septic inspector are all key team members for us. We do have others that we work closely with before, during, and after the transaction but those are the key ones that we know are going to be needed and relied upon to do a superb job.” Once you’ve formed a referral partnership with another business, it’s vital that you continue fostering the relationship. That takes time and dedication. Keep the lines of communication open and devise a strategy for how you want to strengthen that relationship on an ongoing basis. Make note of the

plan in your calendar. And keep sending them referrals to increase the likelihood of getting the same in return. Clarke acknowledges that they give more referrals than she and her business partner and husband, Peter Clarke, receive. “We assure the professionals and businesses that work with us that we will refer them only qualified clients, not simply leads. We are not allowed by law to pay for referrals to professionals that are not registered real estate salespeople or brokers, so we cannot go that route.” She continues, “In our experience, most clients look for a real estate agent first and then search out or ask us for other professionals that we can recommend that are involved in the purchase or sale of their property.” Payne offers some final thoughts, “Do your background research, find other people who have worked with them (potential partners) and ask their opinion on how that person has performed. Once you have decided to work with someone, you have to give a little time to make sure you can both work together and that everyone benefits from the relationship. If it doesn’t go well, be prepared to have the tough conversation quickly. As they say, when hiring, ‘be slow to hire, quick to fire’ and the same applies to mutual relationships. If it is not working, it’s not working so just work it out quickly one way or another.” Investing the time to cultivate strong referral relationships – not just referral sources – may be a key to even greater real estate success. REM



14 REM MARCH 2019

Top 7 trends in real estate brokerage By Natalka Falcomer

E

very part of the real estate realm is in constant flux – from housing prices to how you find your dream property and how you sell your home. This was evident during the 2019 New York Inman Conference where industry disrupters, CEOs of established brokerages, sales reps and technology leaders met to talk about what’s changing in the industry and how all players can do better. After listening to countless thought leaders and speaking with a myriad of industry veterans and entrepreneurs, I’m convinced that the following seven truths will define the real estate industry: 1. “We are a tech company, not a brokerage.” Brokerages must offer sales reps and their clients

high-quality technology. The primacy of technology in the industry is reflected by the fact that legacy real estate brokerages in the U.S. are calling themselves “tech companies” and not “real estate companies”. Nonetheless, and despite popular belief, technology has yet to eliminate the role of the agent and it’s uncertain if it ever completely will. Technology reduces the amount of time an agent does administrative work so that the agent can do what matters – becoming their client’s trusted advisor. 2. If you don’t have great company culture, you won’t have a viable brokerage. Simply put, productive agents aren’t attracted to a brokerage because of favourable splits and cash bonuses or because a brokerage offers the newest tech gadget. Rather, agents are looking for an accepting and flexible work environment that breeds comradery, encourages strong relationships between agents, management and staff and inspires them to

succeed. A positive environment and eye towards social good are also in demand by buyers and sellers. Consumers want to work with companies that give back to society, as well as give their sales reps a positive work environment. 3. Website search functions are a commodity. If you’re a sales rep or broker/owner, you’ll be dismayed to hear that the once highly coveted search function on your website no longer sets you apart. It’s now status quo. Just like having a website no longer makes you “ahead of the curve”, a search function doesn’t improve your brand in the eyes of buyers or sellers. In fact, some broker websites are abandoning search functions and are shifting focus to what buyers and sellers really want on the brokerage’s website – meaningful, local-specific content. 4. Just ask Jeeves. Sales reps are no longer just in the business of sales. They’re also in the business of managing the mortgage application, smoothing out the move-out

and move-in process, co-ordinating contractors, scoring tickets to their clients’ favourite show and helping their clients’ children get access to the best schools. Today’s successful sales reps are a modernday Jeeves and not just a salesperson. 5. A new real estate niche. The rise of Airbnb has created another market niche – short-term rentals. Sales reps are expected by consumers to understand the financial and legal difference between single-family long-term rentals and short-term rentals. Sales reps should be able to create basic proformas and have enough industry knowledge to prepare CMAs based on the revenue produced by the short-term rental. 6. It’s not just who you know or what you know, it’s about what the data says about you. Consumers are relying less on your bench ads and more on your data to make the decision about whether to hire you. Consumers are using performance analytics,

such as how long a sales rep takes to sell a home and how accurate her list price is in relation to the sale price, in order to determine a sales rep’s “worthiness”. 7. Less is more. The minimalist lifestyle is no longer a trend. It’s now a way that millennials are living and will continue to live. Millennials want to simplify their lives by living “minimally” and occupying smaller spaces – so long as the 400-square-foot condo is close to the office, fitness trainer, favourite doggy day care and the fastest organic vegan avocado paleo toast purveyor. Convenience and location trumps magnificence and square footage. Natalka Falcomer is a lawyer and Certified Leasing Officer who has a passion to make the law accessible and affordable. She founded Groundworks (www.groundworksfirm.com), a firm specializing in commercial real estate law, and is the EVP of corporate development at Chestnut Park. REM


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in many franchises, over 300 agents with 7-figure incomes, and thousands of agents transformed from years of struggle to success … all of them are using my system. But this is NOT for most agents. You’d think everyone would run to such a system. But most agents just aren’t mature and sensible enough for it or honestly ambitious enough for it. Get this: crazy-rich level success in this business is NOT about anything “NEW” at all. Sorry. It’s about putting the right proven pieces, strategies, methods and tools together in just the right way so that you wind up with ‘The SYSTEM That NEVER Fails.’ Crazy-Rich is hardly ever about invention. It’s about implementation. Contrary to widely held belief, Henry Ford did not invent the horseless carriage or gasoline engine. He developed a functioning assembly line to make the damn things, and a dealerfranchise system to get them sold. Two systems. Implementation, not invention. Steve Jobs didn’t invent computers, PC’s or phones. Credit his unique approach to retail and to “product launches” – two systems. Fred deLuca at Subway did not invent cold cuts, the sub sandwich or franchising – but he brought a system to it second-to-none, and got crazyrich. “IT’S THE SYSTEM” is my rallying cry. I did NOT invent anything in my System. Much of it came from outside of real estate and was revolutionary in real estate, but each piece I put together already lived successfully elsewhere.

Here are the three mindsets you MUST have: 1) You have to be businesslike. Most agents think and act like worker bees, buzzing about, flower to flower, idea to idea, fad to fad, made-in-minutes guru to guru. They never create businesses. Just jobs. You have to think like a builder and developer, not a pirate. Or just a salesman. You have to think like a guy who owns 50 Subway shops or the whole company, not the guy who owns one, or the guy behind the counter making the sandwiches. If you do, what I’ll share with you will make sense to you. 2) You have to intend to get and stay RICH in this business. Most agents are content making a living, hanging around the office and drinking coffee like Norm hung around ‘Cheers’, forever making excuses to themselves and their families, forever waiting for the market to go back to its peak. If these agents do four, five, maybe ten deals in a year, they are good to go for another year. This isn’t for those folks. This is for the agent with mid-6-figures to 7-figures on his or her mind AND determined to earn it without selling soul to soul-numbing activities like sitting on the Wish-Chair all afternoon at open houses, doing listing presentations for prospects also having 4 more agents “audition”, playing tour guide, pushing business cards on people at cocktail parties, even – ugh! – cold-calling FSBO’s and others. You have to be fed up, worn out and frustrated with the way most good-income agents work and

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16 REM MARCH 2019

Redfin launches in Toronto, Vancouver By Mario Toneguzzi

A

nother big U.S.-based online real estate brokerage is launching in Canada, selling itself as a more affordable way for consumers to buy and sell homes throughout the country. Redfin, which is based in Seattle, opened in Toronto in February and plans to open in Vancouver soon. It plans to expand to other major Canadian markets once it has established itself north of the border. Glenn Kelman, CEO of Redfin, said the technology powered brokerage will have its own agents working in the offices with a mission of delivering the best customer service possible. “It’s such a different model,” said Kelman. “In the next few months we expect to be live. So many consumers start their search online. Being a technology-first brokerage just helps us meet customers at a lower cost and then I think consumers really want someone who is on their side. That’s having agents who are employees of the company, who can work together as a team, (using) technology, which means we can deliver better service. “It’s an on-demand world,” says Kelman. “People want to touch a button and have their groceries delivered or a taxi pick them up. Now they have the same expecta-

tion of Realtors, which means organizing to work as a team and using technology to get people into homes at a moment’s notice, to answer their questions whether it’s a weekend or weekday night.” He says it’s a challenge for the industry, but it’s “what Redfin was organized to do.” Redfin was launched in the United States in February 2006 and today has a presence in more than 85 markets south of the border. Redfin’s website and mobile apps will show all homes for sale through the local MLS in Toronto and Vancouver. It will also show sold prices in those markets. Asked about the company’s bigger plans for the Canadian market, Kelman replied: “We don’t know yet. Our biggest plan is to make our first customer very happy and after that we plan to make our second customer very happy. We can’t get ahead of ourselves here . . . We do hope to be able to offer services in other major Canadian cities. That will take time . . . It took us 10 years to cover most American cities and still we don’t cover them all. We’re going to focus on the major cities just because it helps us to have some density – some density of customers, some density of agents.” Salespeople working for Redfin will be employees of the company

– not independent contractors – and will be paid bonuses based in part on customer satisfaction. The number of agents in individual Canadian offices would depend on how busy those offices become. “I think one difference between Redfin and other brokerages is that we just don’t measure our success in terms of the number of agents we have. We don’t recruit agents as a way to recruit customers. Our goal is to make the agent as efficient as possible. It’s not a recruiting operation primarily. It’s a customer service operation,” says Kelman. Redfin says it will charge home sellers a one per cent listing fee. Agents will provide complete home-selling services such as pricing and staging advice, free professional photography, a 3D walkthrough of the home, open houses, yard signs and beautifully designed marketing materials. The company said its listings will receive premier placement on Redfin.ca and will be displayed on Realtor.ca and other Canadian real estate websites via the Multiple Listing Services. “By working with a local Redfin agent, a seller in Toronto will save $11,250 on a $750,000 home sale when compared to paying a listing commission of 2.5 per cent. The one per cent listing fee does not include a buyer’s agent

Quebec boards merge to form provincial association T

he new Quebec Professional Association of Real Estate Brokers (QPAREB), formed on Jan. 1, brings together more than 12,500 real estate brokers and agencies. The Greater Montreal (GMREB), Quebec City (CIQ) and Laurentides (CIL) real estate boards held general meetings in October, at which more than 96 per cent of members voted in favour of a merger. Until the first annual general meeting of the new association, which will be held in April, the

three presidents of the former real estate boards – Nathalie Bégin, Christiane St-Jean and Anouk Vidal – will act as co-presidents of the new association. The QPAREB is headquartered in Quebec City and has its administrative offices in Montreal. It has two subsidiaries, Centris Inc., which operates the MLS System, and the Collège de l’immobilier du Québec. “Our goal is to bring real estate brokers together in a new provincial association model that will become the only organization in

Quebec dedicated to promoting our profession and defending and protecting our interests with government authorities,” says St-Jean in a news release. “We can now speak with a united, credible and consistent voice to better address the issues facing our profession.” Bégin says: “The real estate industry is evolving and we believe that by coming together we will go further and raise awareness of the real estate broker profession among the public.” The QPAREB says it will try to

Glenn Kelman

Blair Anderson

commission, which is typically paid by the seller,” said Redfin. Kelman said the company’s technology makes it more efficient, which gives it the ability to implement its cost structure. He says that’s important because there is an affordability crisis in both Canada and the United States. “It’s harder to get a loan. Foreign investment has driven prices up and now there’s just a bunch of people who need every dollar they can to go to the house,” he says. “So, paying real estate agents a living wage where really we want best-paid professionals to work for us but still investing in efficiency – let’s just have our cake and eat it too, if the consumer can get low fees and the agent can still have a good life.” Blair Anderson, a Toronto native with more than a decade of

experience in real estate, will lead Redfin’s operations in the Greater Toronto Area. “Canadian consumers are discerning and tech-savvy and I believe they will be blown away by Redfin’s unmatched combination of agent service, technology and value,” says Anderson in a news release. “Not only will we provide full real estate services for a lower fee, the Redfin model rewards customer service, so our agents are accountable to deliver the best outcome for their clients.” The company said its customers, whether they buy a home or not, are asked to review the service they received from their Redfin agent. The reviews are published on the agent’s online profile and agent bonuses are based in part REM on these reviews.

support professional activities throughout the province. “Our goal is to offer our members all services under one roof as well as a dynamic associative life. Our success depends on strong regional representation and listening to the specific needs of real estate brokers, regardless of their geographic area,” says Vidal. “We are more representative and we promote synergy between the different regions while

Nathalie Bégin

meeting local needs.” In June 2018, the Chambre immobilière de Saint-Hyacinthe ceased operations. Its members are now QPAREB members. In December, member brokers of the Chambre immobilière de la HauteYamaska voted unanimously in favour of the dissolution of their board on Jan. 31, in order to join the ranks of the new association.

Christiane St-Jean

REM

Anouk Vidal


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18 REM MARCH 2019

THE GUEST COLUMN

By Todd Shyiak

T

he fear of the unknown can be unsettling. Zillow coming to Canada has unsettled some. But the fact is, Zillow isn’t the unknown and we have no reason to be fearful. Zillow has been in the U.S. for 12 years and the sky hasn’t fallen for Realtors there – quite the opposite. For brokers and agents who advertise with Zillow, a consistent and strong ROI is the result. For those who simply share their listings with Zillow, they benefit from the maximum possible exposure – for free. And yet Canadian Realtors continue to be hit with the message that the sky is falling. I think

Zillow: Fear or the future? it’s important to look at who is perpetuating this fear and why. A couple of companies and now even CREA have paid for a U.S. consultant to come to Canada and deliver a biased and skewed slide deck that hews to their current anti-Zillow narrative. At Banff Western Connection, CREA opted to perpetuate the fear of those with a vested interest in keeping Zillow out and then offered no opportunity for questions or rebuttal from those of us who support Zillow. To provide those who have seen this “Chicken Little” slide deck in Banff and elsewhere in Canada and weren’t provided an opportunity for refuting it, allow me to clarify what I and many others view as biased and just plain wrong. The main point of “fear” this presentation highlighted: Zillow is a “disruptor” and if brokers allow Zillow in, their revenue would take the same direct hit that the New York taxi industry took from disrupters Uber and Lyft – a 35 per cent drop. Wow. If those numbers

were a reality for brokers in New York or any other U.S. market, we’d all have good reason to be concerned. The obvious problem with this assertion is that Zillow has been in the U.S. for 12 years and the industry is stronger and earning more commission income than ever before. Another “fear”: Zillow has earned over $1 billion from brokers and agents – but for some reason the consultant fails to mention that those same U.S. Realtors spent many times that amount with Google and other online lead generators, not to mention billions more spent on bus benches, billboards and print. A third “fear”: Zillow has become a prominent “voice of real estate” in the U.S. and would do the same here in Canada. As I see it, the reason Zillow is a soughtafter voice in the U.S. is they do a better good job of interpreting and predicting data trends for consumers. The better the information, the better for the consumer. That’s not to say that there

aren’t some valid concerns that remain. On an Industry Leader’s panel that I was on in Banff, it was rightfully pointed out that while the listing agent is featured prominently on their own listings on Zillow, choosing to click on “contact agent” takes the consumer to one of three Premier Agents and not the listing agent. I didn’t get to make this point on the panel because time ran out, but with so much focus in the press across Canada on dual agency, the consumer may want to have a choice of good agents, other than the listing agent, to show them the home. And if I’m the listing agent, I’d prefer the house is shown by and possibly a deal done with a Premier Agent who is a dedicated buyer’s agent and specializes in that market. But should the consumer want to deal with the listing agent or if they have a specific question that only the listing agent can answer, they can still easily choose to do so. Working with a national brand, I recognize that we all have the concern of losing some of our

own site traffic to Zillow – but I believe, based on actual evidence from the U.S. that the majority of traffic Zillow gains will come at the expense of Realtor.ca, and that will be earned with a vastly superior consumer experience. Another possible concern for one national brand may be for their own Premier Agent type of program. That brand has a network of agents who pay a monthly fee to receive leads from their national site and a referral fee on closed transactions. Is it possible these agents may choose to buy leads (without the referral fee) from Zillow instead? I have discussed Zillow with many leaders in our industry and virtually all the negative comments or opinions seem to be based in fear. Chicken Little shouting “the sky is falling” spreads fear. But after 12 years of Zillow operating in the U.S., the sky hasn’t fallen, and it won’t here in Canada either. So now that you’ve heard a short rebuttal on the subject, I ask you to choose: fear or future. Todd Shyiak is vice president, operations of C21 Canada. REM

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20 REM MARCH 2019

R

ecently the Barrie & District Association of Realtors (BDAR) officially cut the ribbon on new, purposebuilt offices. “Today is more than just a celebration of our new facility – it’s an introduction of BDAR to our community partners,” says Tania Artenosi, 2019 BDAR president. “BDAR is dedicated to providing members services and tools, including a robust Multiple Listing Service system, needed to deliver a high standard of professionalism and better represent the local real estate needs of the community.” BDAR is one of the area’s largest organizations with more than 1,000 members representing over $2 billion in real estate transactions in Simcoe County in 2018 alone. The association’s new facility is at 676 Veterans Dr. in Barrie, easily accessible from across the region. “We are all moved into our new home and are ready to showcase it to members and community partners,” said Artenosi. “Our facility has state-of-the-art tech-

nology and modern décor and amenities. It is a member and community training hub with space that can be used by members and the community to gather, share information and connect.” BDAR’s new facility is available for members and community organizations to rent. ■ ■ ■

The Association of Saskatchewan Realtors (ASR) has named Teressa Mannle, broker at Realty Executives Preferred Choice in Swift Current, as president for the 2019 Board of Directors. With 14 years of experience in real estate and several years serving as a director on the ASR board, Mannle brings experience, dedication and knowledge to the position, says the association. In 2019, Mannle says, “Our pursuit of a single Realtor association in Saskatchewan remains the primary focus, but we’re also looking to improve the services we provide, making the ASR more relevant to our members. Now that

we’re no longer providing education for the Saskatchewan Real Estate Commission, our strategic direction will bring us many new and exciting opportunities.” Joining Mannle on the ASR Board of Directors are past president Lane Boghean and vice president Noel Geremia, both of Century 21 Dome Realty in Regina. Regional directors Harpreet Christie of Re/Max of Lloydminster, Deb Honch of Coldwell Banker ResCom Realty in Prince Albert and Ashley Turner of Century 21 Fusion in Saskatoon will be joined by Warren Vandenameele of Royal LePage Premier Realty in Langenburg, Lori-Dawn Stevenson of Century 21 Accord Realty in Swift Current and Angelique Haysom of Century 21 Dome Realty in Regina. Representing CREA on the board is Len Wassill of Century 21 Parkland Realty in Melville. ■ ■ ■

The Windsor-Essex County Association of Realtors (WECAR) has elected Tina Roy as 2019 association president. Roy has been a licensed Realtor for 13 years and was named No. 1 broker at Re/Max Preferred Realty 2016, as well as landing in the top two per cent in sales for several years. She is also a director of the Belle River On the Lake Business Improvement Association and provides ongoing support to various fundraising campaigns through the community.

WECAR is the second oldest real estate association in Canada. ■ ■ ■

David Powell is the 2019 president of The Manitoba Real Estate Association (MREA). Powell has been a member of the MREA for 27 years and a brokerage owner for 20 years. He has held numerous volunteer leader roles in local, provincial and national levels of organized real estate, and has held a seat on the Manitoba Securities Commission Real Estate Advisory Council. Powell, of Powell Property Group, was previously president of WinnipegRealtors and the Independent Real Estate Brokers of Manitoba. He is joined on the board by Glen Tosh, Royal LePage MartinLiberty Realty, president-elect; Shirley Przybyl, Century 21 Bachman & Associates, immediate past president; Stewart Elston, ACT Realty, treasurer; Julie Friesen, Delta Real Estate, director at large; Brad Walker, Gill & Schmall Agencies, director at large (individual member); Michael Barrett, Century 21 Westman.com, CREA regional director; Lorne Weiss, Century 21 Bachman & Associates, Manitoba political action committee chair; Roberta Weiss, Century 21 Bachman & Associates, education chair; Ken Clark, ACT Realty, WinnipegRealtors president; Catherine Schellenberg, Re/Max

The Windsor-Essex County Association of Realtors 2019 Board of Directors: Back row, from left: Damon Winney, broker of record, Jump Realty; Krista Gionet, WECAR EO; Elica Berry, salesperson, Re/Max Preferred Realty; Daniel Hofgartner, broker, Buckingham Realty (Windsor), past president; Darin Schiller, salesperson, Keller Williams Lifestyles Realty. Front row: Maggie Chen, broker of record, LC Platinum Realty; Tina Roy, broker, Re/Max Barrie Mayor Jeff Lehman and BDAR president Tania Preferred Realty, president; and Lorraine Clark, salesperson, Keller Williams Lifestyles Artenosi cut the ribbon along with members of the Realty, president-elect. BDAR Board of Directors. From left: Nicole Pohl, 2nd VP, KWAR; Tony Schmidt, past president, KWAR; Kim Henry, director of development, Lisaard & Innisfree Hospice; Brian Santos, president, KWAR; and Teressa Mannle Tina Roy David Powell Kenneth Clark Colleen Koehler, VP, KWAR.

Professionals, WinnipegRealtors president elect; and Darla Helena, Century 21 Westman Realty, Brandon Area Realtors president. ■ ■ ■

Kenneth Clark has been named 2019 president of WinnipegRealtors. Following a successful career in senior management positions, Clark commenced his real estate career as a licensed salesperson in 1986. He became a broker 14 years later and is now the president and broker/owner of ACT Realty. He specializes in developing, marketing and selling condominiums. He is currently serving on a Manitoba Real Estate Association task force that is reviewing the Condominium Act. Clark is complemented by 11 other volunteer directors: Catherine Schellenberg, Re/Max Professionals, president elect; Kourosh Doustshenas, Expert Real Estate Services, treasurer; Chris Dudeck, Coldwell Banker Preferred Real Estate, past president; Kyra Winfield, Avison Young, Commercial Division chair; and directors at large Akash Bedi of Re/Max Executive Realty, Jennifer Berthelette of Ethos Realty, Boris Mednikov of Vanguard Real Estate, Donnette Odidison of Re/Max Professionals, Sherie Turek of Gateway Real Estate, Dan Wachniak of Wachniak’s Quality Realty and Val Werhun of Royal LePage Top Producers Real Estate. ■ ■ ■

Recently members of the Kitchener-Waterloo Association of Realtors (KWAR) presented donations totalling $19,146 to three shelter-based charities serving the community of Waterloo Region. Hospice of Waterloo Region, Lisaard and Innisfree Hospice and YWCA Kitchener Waterloo were the recipients of the Realtors Care Foundation grant through WAR’s 2018 Every Realtor Campaign. “It is an honour to present each of these local charities with a cheque for $6,382 on behalf of our Realtor members,” says Brian Santos, president of KWAR. “As Realtors we feel privileged to live and work in the Waterloo region and we’re proud to support those striving to improve the quality of life for everyone in the REM community.”


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22 REM MARCH 2019

Stranger in town rises to No. 1 sales rep

Kate Broddick moved from Toronto to Brantford, Ont., where she didn’t know a soul. Just a few years later, she built the No. 1 real estate team in town and earned a celebrity endorsement. By Susan Doran

B

ack in the 1980s and ’90s when it was one of the most economically depressed cities around, no one would have predicted that Brantford, Ont., would become the best place to buy real estate in Canada. But now it is, according to recent online articles by both MoneySense and HGTV.ca, which credit Brantford’s affordable but steadily increasing house prices, diversified economy, fast-rising rents and low unemployment with helping the city leap to the pinnacle of Canadian real estate investment. Currently the colossus astride that pinnacle appears to be Kate Broddick, the city’s long-standing No. 1 salesperson as well as the leader of its top team. Sutton Team Realty’s Kate Broddick Team, comprised of 10 agents and a handful of administrative staff, has ruled Brantford’s real estate market for more than four years, as has Broddick herself. “According to the Brantford Regional Real Estate Association, we’ve had the largest number of transactions between 2015 and the present, and I’ve been the No. 1 agent,” Broddick says. “And I did it after moving to Brantford from Toronto and literally knowing no one.”

right before the movie starts. “Talk about a captive audience!” says Broddick. “And a celebrity endorsement by Scott – that’s different, outside-thebox marketing. No one else in Brantford has that. He was absolutely amazing, one of the most humble people I’ve met.” McGillivray’s endorsement is the type of progressive marketing on which Broddick prides herself. Now entering her seventh year in real estate, she’s considered an industry trend setter. Before becoming a Realtor, Broddick was more likely to be found cleaning the teeth of celebrities than rubbing shoulders with them. She was working as a dental hygienist when she moved to Brantford. She decided to get her real estate license to facilitate the purchases she and her husband were making for their own real estate portfolio. After that her career as a dental hygienist was soon in the rear-view mirror. But from it she’d learned how to “build trust and keep clients coming back,” a valuable lesson. “It’s no different now except that with real estate, clients don’t start out hating me. Let’s face it, no one wants to be at the dentist,” she says, laughing.

Additional grand slams for Broddick include being ranked among Canada’s leaders in social media marketing by various sources and being among a select group of Realtors chosen by HGTV’s Scott McGillivray for an exclusive endorsement deal.

Despite a talent and passion for real estate, she was “legitimately terrified” at the start.

As a result of the latter, the Kate Broddick Team not only has a promotional video but also a couple of commercials with McGillivray, one of which is shown at the local Cineplex

“My GPS was my best friend,” she says. “I was GPSing my way around the city. I’ve gone from that to this tremendous success, the sort that many people never experience their entire career.”

Being new to Brantford and having no friends there (“We knew not one neighbour,” she says), she initially had trouble even finding her way around.

Success came fast. By her third year in real estate she was the top agent in Brantford. She started building a team when she realized she needed help. “I had almost too many leads to serve. So, I brought on likeminded Realtors so there was a brand, a process and consistent client care. “A lot of Realtors are lone wolves who do everything themselves. There are not enough hours in the day for that. The admins help us to be able to focus on clients. I think the biggest reason for our success is that we have a set system for agents and admins. Everyone has specific roles – the background stuff for admins, the forefront for agents. Our follow-up is bang-on and quick, so clients feel they are a priority. It’s good customer service. It sounds so simple but it’s paramount. Clients want to feel they matter.” Initially the team was all female, a sisterhood of mothers. There are a couple of men on board now. “Our team has a nurturing side,” says Broddick, who is pregnant with her third boy. “We keep family at the forefront of the decisions our clients make. For instance, if a family with kids and a dog likes a house in a high-traffic neighbourhood, we’ll say, ‘Maybe we can find you something on a side street.’ We open their eyes to different options, so they make the best decision, not just the quickest.” The local lifestyle has come a long way since the 1980s, when the Massey Combines Corporation and other manufacturers closed their doors, leaving thousands out of work. Today Brantford, located in the Greater Golden Horseshoe (an

Kate Broddick

area stretching from Niagara to Peterborough) is thriving, combining a small-town lifestyle with the perks of city living. With prices tending to be more competitive than nearby Hamilton, Brantford attracts Toronto buyers willing to make the lengthy commute (although noticeably fewer now that Toronto prices have dropped somewhat, says Broddick). Alexander Graham Bell invented the telephone in Brantford, and the city was also once home to hockey legend Wayne Gretzky (whose father Walter still lives there) and Group of Seven painter Lawren Harris. And now, thanks to the local Ferrero factory, those with a sweet tooth can celebrate World

Nutella Day every February. (“I have no idea what goes on there,” laughs Broddick). When she came to Brantford in 2012, Broddick and her husband bought a lovely detached home for $312,000. Today it has almost doubled in value, she estimates. The local real estate association puts the average house price in the city at around $450,000. Broddick’s much-touted marketing, including videos of her team members talking about their lives outside the business, promote both the business and the city. “We’re selling clients not just a home but a lifestyle,” she says. “We want people to connect with us on a personal level. We keep it intimate.” REM


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24 REM MARCH 2019

of them were first-time donors.” The sales reps say they plan to hold more events in the future “to bring awareness that this quick 30minute process saves lives.” ■ ■ ■

Good Works L

ast year Andrea Hughes, a sales rep with Re/Max Professionals Saint John in Saint John, N.B. spearheaded a committee to bring a new playground to Hampton Elementary School. The current playground has been deteriorating quickly over the past several years and is no longer safe for children to play on. It is also not accessible to kids with mobility issues because the play structure is located in a raised frame with a gravel base. After extensive research into accessible playgrounds, meetings with suppliers and finally deciding on a design for the playground, Hughes started applying for grants and entering contests in order to raise funds to build the playground. Hughes submitted the project to the Aviva Community Fund and in November the school was selected as one of three grand prize winners of $100,000. It will receive a new playground this June. Hughes then applied for a federal government grant that promotes accessibility and inclusion in the community. In January, it was announced the project would

receive funding of $99,938. Hughes wasn’t finished yet. She then presented her project to the Town of Hampton’s mayor and council, requesting $20,000 in funding. The town has agreed to support the initiative and has donated $10,000 in cash and $10,000 in kind. ■ ■ ■

Recently Reilly Stead and Rebecca Murray, sales reps with Coldwell Banker Southwest Realty in Sarnia, Ont., were asked by brokerage owners Steve Park and Rob Longo if they would be willing to donate blood. “After speaking with Canadian Blood Services, we learned the need for donations was urgent. This inspired us to block off a large time slot and get to work. We advertised through social media, our friends and our family to try and sign up 20 or more people,” the sales reps said in an email to REM. “The event day came and we surpassed our expectations, with 32 donors increasing our local blood donations by 40 per cent. Fifteen

Andrea Hughes, second from left, was instrumental in helping raise funds for a new accessible playground in Hampton, N.B.

■ ■ ■

Dale Devereaux of Century 21 Advantage in Red Deer, Alta. hosted his 21st Annual Feed a Family at Christmas Campaign in December. “It started when I was watching an infomercial about the percentage of Canadians that go hungry everyday. I knew I wanted to find a way to give back so I started donating to the food bank and it grew from there,” says Devereaux. His brokerage is the largest individual

Royal LePage Locations North professionals present funds raised at the 7th annual Holiday House Tour to representatives from local women’s shelter My Friends House.

Jennifer Barbosa Rebecca Murray, left, and Reilly Stead

Royal LePage Locations North, with five offices in the Collingwood, Ont. area, raised $25,410 for the Royal LePage Shelter Foundation at its annual Holiday House Tour. Along with a self-guided tour of eight homes beautifully decorated by local designers for the holiday season, the day also featured a fashion show, silent auction, decorating seminar and holiday marketplace. The funds raised were directed to My Friends House, an emergency shelter for women and children fleeing violence in Collingwood and Wasaga Beach. Committee members from Royal LePage Locations North included Carrie Fairley, Anita Hearn and Jennifer Booth.

Fred Scaife and Dale Devereaux load up food for the annual Feed a Family campaign.

food bank donor in Red Deer. In 21 years, the campaign has fed 23,586 people in the community. ■ ■ ■

Volunteering has been a rewarding way for Jennifer Barbosa to meet other Realtors and neighbours. She joined Sutton Group West Coast Realty in 2018 and participated in her first Realtors Care Blanket Drive, which provides clothing and bedding to people in need and funds social housing projects. During her previous profession as a banker for 14 years, Barbosa ran a successful campaign for the United Way of the Lower Mainland. Recently she participated in the Steveston Icebreaker 8K Run/Walk that began in Steveston and meandered along the scenic Fraser River. Entrance fees for the race support the Kajaks Track & Field Club, a non-profit community-based athletics club. ■ ■ ■

The Royal LePage Shelter Foundation recently announced the roster of 120 Royal LePage professionals from across Canada who will take part in the Sahara Desert Challenge for Shelter. The event will take place in November 2019 in Morocco. During this adventure, participants will trek more than 100 km in five days, viewing beautiful

scenery and challenging themselves physically and mentally. While trekkers will experience jet lag, desert temperatures and the challenges of hiking on sand – all without the comforts of home – each step taken will help women and children find safety and move forward after experiencing abuse. To be eligible to participate, each trekker must raise at least $5,000 in support of the Royal LePage Shelter Foundation and cover the costs of their flights and trek. To support a trekker in a community near you, visit saharachallenge.ca ■ ■ ■

A huge collection of toys began to fill the front window of Sutton Group - Realty Systems in Toronto in the weeks leading up to Christmas. As an official drop-off location for the 52nd Annual CP24 Chum Christmas Wish Campaign, the Sutton office gathered donations from clients, Realtors, staff and the general public. By the time the charity’s truck arrived, there were countless gifts destined for children of low-income, Torontoarea families along with financial contributions that will provide yearround social services. “We love our community, and no child should miss out on the magic of the holiday season,” says Maryann Semen, broker of record. REM

OBITUARY - ANDREW PECK ndrew Peck, broker owner, vice-president and general manager of Royal Pacific Realty Group in Vancouver and immediate past-president of CREA, died on Jan. 23. A fourth-generation British Columbian, Peck started his real estate career in 1983, fresh out of university with a Bachelor of Commerce degree, says his website. By 1987, he had become managing broker of a major franchise office in Vancouver and he bought the company in 1990. In 1996, Peck merged three companies to form Royal Pacific Realty Group. It now has 1,250 licensed Realtors in six brokerage offices. A committed, engaged volunteer, Peck was elected president of CREA for 2017. He served as a CREA director for seven years and prior to this was president of the B.C. Real Estate Association (2007), representing 19,000 Realtors, and president of the Real Estate Board of Greater Vancouver (2004), representing 12,300 Realtors. While serving as president of REBGV, he helped establish a new government relations department, successfully lobbying for changes to the Property Transfer Tax and the Home Owner Grant. He was also at the forefront of asking for changes to local government zoning to allow sustainable density in the form of smaller lots and coach homes. As a leader, mentor, coach and advocate, his colleagues, students and sales team described Peck as entertaining and engaging. He was a former piper with the SFU Pipe Band, an avid boater, a hobby chef, a devoted husband and a caring father to Marshall. REM

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26 REM MARCH 2019

Defendant appeals commission judgment By Don Procter

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fter a years-long legal battle, a Burlington, Ont.based real estate brokerage recently won a court case and was awarded 100 per cent of its claim for unpaid commissions. However, the case is being appealed. Bob Van de Vrande, broker of record for the plaintiff Apex Results Realty, says that as result of the judgment by Superior Court Justice J.R.H. Turnbull, “We feel vindicated that our salesperson . . . will be appropriately paid for the work that was done.” The case could have precedence regarding the 2.5 per cent commissions owed to Apex sales agent Naeem Rahman. It was for the purchase of two properties in Mississauga in 2012 by the defendant Sharief H. Zaman. Eminence Living Inc. and Higher Living Development Inc. – Zama’s “closely held corporations” – are also named as defendants, says Van de Vrande. The purchases were for roughly $5.5 million plus HST. The commission judgment, including court costs, was more than $200,000. Rahman had a real estate contract with Zaman under a buyer representation agreement (BRA) – a standard form used by Realtors throughout Ontario. Contrary to evidence, the defendant contended that due to a side agreement, if Rahman had any entitlement to commission it was to be obtained only from the seller/owner of the property in question, says Van de Vrande. “That was simply his false assertion and his way of trying to avoid paying the commission,” he says. “Our position all along was that there was no side agreement and as the judge found…even if it did exist, which in this case it did not, it is not enforceable because any agreement or amendment must be in writing and that wasn’t the case,” says Van de Vrande. The BRA stipulates “that we attempt to obtain the commission from the sellers or the sellers’ real estate brokerage but the buyer is

responsible for the commission . . . if the seller does not pay,” he says. “What became problematic in this case is that our salesperson was excluded from the negotiations by the buyer (with the seller). He didn’t, in fact, know that the transaction was being done until after the closing date.” Van de Vrande says after having made several offers on one of the properties with the agent, the defendant went back on his own, “offered more money (to the seller) and made the deal happen without our salesperson and contrary to the terms of the agreement.” The BRA stipulates that all negotiations are to be done through the sales representative. Van de Vrande says Rahman met all of the contractual obligations of the BRA. “The actual terms of the contract are discussed and negotiated between the parties.” He says the case highlights the importance of a buyer representation agreement. “We are hoping that will be precedent in other cases… salespeople can rely on the contracts and they have recourse if those terms are breached.” In the judgement, Apex was also awarded pre- and post-judgement interest, “which is significant because of the money involved and the length of time to resolve the claim,” says Van de Vrande. Apex’s lawyer, Walter Wellenreiter, says, “The total costs, plus disbursements plus interest that we sought was $70,861.02 plus a post-judgment per diem interest rate of $12.75 per day. Justice Turnbull awarded $58,855.95 plus the per diem of $12.75 per day (from January 11, 2019 forward), a difference of $11,975.07.” Van de Vrande says it’s important that agents have complete and accurate documentation in place for every contract. That includes listing agreements, agreements of purchase and sale and leases. What happened to Rahman is uncommon but it occurs more frequently in the industry than it should, he says. “Not all cases are pursued in

court (or at all),” says Van de Vrande, noting he had another experience where a buyer client bought a property they viewed on their own at an open house. “I was able to resolve the matter with the listing agent at the open house, who simply agreed to pay me the commission.” To ensure brokerage and agent protection, Apex stipulates that all agents have a BRA. Van de Vrande says a BRA also offers “significant benefits” to buyer clients because “it allows their agent to negotiate the best possible terms on their behalf. It is a very balanced agreement.” The case was conducted through a summary judgment – a process where a judge determines the outcome without impaneling a jury or requiring witness evidence in court. “When documentation is all in place and the circumstances are clear, as in this case, then a summary judgment can be deemed appropriate,” Van de Vrande says. A full trial would have prolonged the case, possibly by years, he adds. Still, the matter involved years of litigation. Van de Vrande says Apex was awarded substantial costs because the defendant refused early and reasonable settlement offers. However, the defendant is now appealing the judgment. The agent and the seller originally agreed to a one-year BRA in 2012, which stipulated that Apex Realty’s sales rep was the exclusive agent for defendants to buy commercial properties for development and/or residential dwellings for resale in the GTA and surrounding towns and cities in Ontario. “Unfortunately, we have no control over whether another party breaches a contract but from a salesperson’s point of view…it is important to make sure all agreements are in writing and the client understands it and receives a full copy of it,” says Van de Vrande. “Then you have proper recourse if someone breaches that agreement.” REM


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28 REM MARCH 2019

C21 names top producers

WELCOME

Mark Rice and Kirsten Marten, Owners Coldwell Banker Oceanside Real Estate Victoria & Nanaimo, BC

The Coldwell Banker® global network is pleased to announce that accomplished BC real estate professionals Kirsten Marten and Mark Rice have acquired the brokerage formerly known as Coldwell Banker Slegg Realty, based in Victoria and Nanaimo. Mark and Kirsten have repositioned the company for growth and renamed their brokerage Coldwell Banker Oceanside Real Estate.

Drew Johnson earns top Coldwell Banker Canada award Drew Johnson of Coldwell Banker Power Realty, in London, Ont. was named recently named Top Ultimate Service provider in Canada by Coldwell Banker Canada. The company says real estate professionals affiliated with Coldwell Banker Canada have attained a 98 per cent customer satisfaction rating from over 80,000 Canadian home buyers and sellers. “Ultimate Service is a uniquely Canadian program, founded on the business philosophy of listening to the customer and putting their needs first,” says company president Andy Puthon. The Top Ultimate Service team in Canada (with one to three members) was Watson Brothers (Darcy and Barrett Watson), Coldwell Banker Horizon Realty, Kelowna, B.C. The Top Ultimate Service team in Canada (teams with fourplus team members) was Nyrose & Associates, Coldwell Banker Horizon Realty, Kelowna. Brokerages recognized with the Ultimate Service company award:

AVI ROSEN

Sarah Toop

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Barrett Watson

An analyst with decades of experience and know-how in the Real Estate Industry

8Ņų ± ÏŅĹĀ ÚåĹƋĜ±Ĭ ÏŅĹƴåųŸ±ƋĜŅĹ ±ÆŅƚƋ üų±ĹÏĘĜŸå ŅŞŞŅųƋƚĹĜƋĜåŸØ ϱĬĬ× Mark Lindsey, RVP, Franchise Sales 1-800-268-9599 ext. 402 mark.lindsey@coldwellbanker.ca

Sarah Toop of Century 21 Creekside Realty in Chilliwack, B.C. was recently named the company’s top producer by gross closed commissions (GCC), and No. 16 in the Century 21 Global Rankings. She has been with the brokerage for just over three years. In 2017 she was the No. 10 producer by production and No. 9 producer by units. “I’ve always worked by the saying, ‘When you start looking to the side and behind, you’re not moving forward’,” says Toop. In 2018, “I had a baby, got married and bought and renovated two rental properties. There was no direction to go but forward…and fast!” Gavin Heintz of Century 21 Advantage in Red Deer, Alta. has been ranked the No. 1 C21 producer by units in Canada. Serving the community since 2003, Heintz has won more than 20 awards in his career thus far. “Gavin is admired in the community and his dedication to the industry has made him the success he is today. We are proud of his accomplishments and know he will continue to do amazing things for the Red Deer community,” says Brian Rushton, EVP, Century 21 Canada. “I consider myself lucky to love what I do every single day and to

have the support of my team at Century 21 Advantage,” says Heintz.

Coldwell Banker Action Plus Realty, Simcoe, Ont.; Coldwell Banker at Success Realty, St. Thomas, Ont.; Coldwell Banker Burnhill Realty, Burlington, Ont.; Coldwell Banker Coastline Realty, Port Dover, Ont.; Coldwell Banker Community Professionals, Hamilton; Coldwell Banker Fort McMurray, Fort McMurray, Alta.; Coldwell Banker Gary Baverstock Realty, Cambridge, Ont.; Coldwell Banker Hinton Real Estate, Hinton, Alta.; Coldwell Banker Horizon Realty, Kelowna; Coldwell Banker Power Realty, London, Ont.; Coldwell Banker The Real Estate Centre, Vaughan, Ont.; and Coldwell Banker Thompson Real REM Estate, Huntsville, Ont.

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30 REM MARCH 2019

Canada’s best first home cities G

rowing numbers of firsttime homebuyers are venturing farther in search of an affordable first home. While leading metropolitan cities like Vancouver or Toronto will always be strong draws, they’re challenging markets to crack: in December 2018, the benchmark price of a home hit $1.05 million in Greater Vancouver and $796,800 in Greater Toronto. Homebuyers have driven booms in revitalized municipalities like Hamilton, Ont. and Surrey, B.C. These growing cities offer great value for homebuyers seeking more home for their real estate buck – yet their new-found popularity comes with swelling sticker prices. So, what should your client do if they’re on a super tight budget? Are there any exciting cities where they can buy a home for less than the national average of half a million dollars? Fortunately, yes! Below are examples of four up-and-coming communities that are ideal for new buyers. These cities offer more than just great entry-level real estate: they’re also uniquely fantastic communities to set down roots in.

MARKETPLACE

KAMLOOPS, B.C. Average 2018 home price: $394,5152 Approximate population: 103,811 Why your clients will love it: This Thompson Valley river town sits in the shadow of mountains, enjoys beautiful weather and has a relaxed, outdoorsy vibe. Kamloops boasts all the millennial musthaves: arts and culture, yoga studios, restaurants and a farmers’ market, plus amazing proximity to hik-

ing, skiing, fishing and snow sports. Kamloops offers the quintessential B.C. lifestyle for a fraction of the cost of Vancouver living. HALIFAX, N.S. Average 2018 home price: $300,8543 (Halifax-Dartmouth) Approximate population: 403,390 Why your clients will love it: Canada’s East Coast offers amazing value to anyone who’s ready to make the leap. Unlike other Maritime municipalities where job prospects may be suboptimal, Halifax is booming. One of Canada’s top tech hubs, the fastgrowing city enjoys low unemployment, a healthy economy, universities, the Atlantic Ocean and ßber- affordable real estate. Beaches, culture, a growing food scene – what more could they seek in a first home city?

it: Guelph is a nature lover’s paradise, with two scenic rivers and endless kilometres of recreational trails that meander through forests and parks. It’s low in crime and has long been renowned for its high standard of living, not to mention its laid-back, universitycity vibe. These are just a few examples of the wonderful communities across Canada. And regardless of where you practice real estate,

looking beyond big city limits will provide great options for first-timers looking to achieve

their dream of homeownership. Written for REM by Genworth Canada. REM

Ontario MLS systems to merge wo regional real estate MLS systems in Ontario have joined forces to provide services to 22 boards and associations and more than 13,000 Realtors. The Ontario Collective (OC) and Ontario Regional Technology & Information Systems (ORTIS), have signed a Transition Agreement to blend their two separate systems into one common shared regional MLS system. Steve Dickie, chair of the OC, says: “For going on decades now, progressive Realtors and associations have been working to break down the artificial walls that have separated them. This initiative will significantly enhance the opportunities and services for our Realtor members as well as their clients.� “From the beginning, this has been a member-centric process where we have put the needs of the Realtor first and foremost,� says Brad Johnstone, ORTIS chair. “Realtors and their clients all have the same wants, needs and expec-

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LONDON, ONT. Average 2018 home price: $383,2294 (London-St. Thomas) Approximate population: 383,437 Why your clients will love it: London is home to Western University and boasts a thriving entertainment and food scene. The Canadian Centre for Policy Alternatives ranks it among Canada’s best cities for women, thanks to its safety, economic security, education, health and leadership opportunities. Nicknamed the Forest City, London has plenty of green spaces to kick back in. GUELPH, ONT. Average 2018 home price: $554,326 Approximate population: 131,794 Why your clients will love

NATIONAL REAL ESTATE IN NFORMATION LIISTING SE ERVICE E . COM WWW. REILS.COM / 416-214-4875

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Kamloops, B.C. (Photo: Getty Images)

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tations, regardless of the size and location of the association they belong to.� Johnstone says, “The systems our two groups developed independently of one another are powered by the same stable, secure, proven and reliable technology, and both were developed by Realtors for Realtors. Both groups are using CoreLogic’s Matrix system to power their MLS services. Matrix is used by more than 700,000 Realtors in North America and 32,000 in Canada, the company says. Combining the two systems into a seamless one will result in a “best-of-breed� solution by taking the lessons both groups learned in their individual regional projects and bringing them together, say the groups. “Central to this project from the beginning is the recognition that members are equal. No matter what part of the province a Realtor practices in they have the same need for high standards and

dependable technology,� say the groups in a news release. “We’re going to take the best of both systems and combine them together to make something even better,� says Kati Strickland, project manager of the OC. “We’re working with CoreLogic now to align the needed resources and flesh out our project plan with the objective of having members online with it in the fall of 2019.� The OC is comprised of boards and associations in Bancroft, Kawartha Lakes, London and St. Thomas, North Bay, Northumberland Hills, Peterborough and The Kawarthas, Quinte, Grey Bruce Owen Sound, Southern Georgian Bay, The Lakelands, Tillsonburg and WoodstockIngersoll. ORTIS includes boards and associations from Barrie, Brantford, Cambridge, Guelph, Huron- Perth, Kitchener-Waterloo, Mississauga, Niagara, Oakville, Milton and Simcoe. REM


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