As goes the #Torontorealestate market, so goes the number of “real estate agents” working in the Toronto market

When the real estate market goes up…

But, what goes up goes, down. When the real estate market goes down …

Whether the “real estate boom” is over or not …

It’s clear that it will harder for Ontario real estate agents to make a decent living. Even if the “real estate market” continued it’ frenzied pace, there are more and more “real estate agents” chasing the supply of listings and the new buyers. More and more buyers are attempting to sell their properties outside the conventional model. They are attempting to sell themselves by using discount brokerages. In short, many sellers are are attempting to avoid the fees that they must pay to use the services of a “full service broker”. It’s time for Ontario real estate agents to consider carefully how real estate agents provide value to their clients.

Recent developments are making it harder for Ontario real estate agents to act for both the buyer and the seller. New RECO regulations require Ontario real estate agents to disclose when the are acting for both the buyer and the seller. Notice that the article says that “Realtors” (careful the word “realtor”is a trademark owned by “organized real estate”) have grown at a rate that is ten times the grown in an other industry! Could it be that, as as the Toronto real estate market slows, that fewer real estate agents will be able to earn the money that they want – the money they are used to? If Toronto real estate agents are maxed out on their credit cards, they may want to seek other work. In addition, many real estate agents are carrying the huge overhead cost of being a member of “organized real estate“. Hey, they are paying fees to CREA, OREA, TREB and many of the other acronyms of “organized real estate“. In addition, they are paying their other costs of doing business which may include: advertising, automobiles, business cards, client development and fees to their brokers.

The problem …

There will most certainly be more and more Ontario real estate agents who will want to stop selling real estate. They will want to stop paying the fees to be members of organized real estate. They will want to make sure that they do NOT lose their real estate license. A real estate license is an extremely valuable asset. The license is granted by RECO and must be maintained by paying fees to RECO and completing various continuing education modules.

That said, Ontario real estate agents must also continue to be employed with an Ontario real estate broker.

The solution …

It’s quite simple. Ontario real estate agents who want to temporarily stop selling real estate should simply transfer their license from a broker who is a “member of organized real estate” to a broker who is NOT a “member of organized real estate”. This will allow them to avoid the higher costs of being a member of organized real estate and pay the lower costs of NOT being a member of organized real estate.

In spite of all of this:

I personally think that it is a great time to invest in getting an Ontario real estate license. You will be acquiring a valuable asset. RECO has recently changed the educational requirements. The educational responsibility for providing education to the next generation of real estate professionals has been transferred from OREA to Humber College. My next post will explain why this means that it is an excellent time to get a real estate license!

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