By Heino Molls
Every so often I hear discussions about limiting the number of real estate licenses issued by the provinces. The argument put forward is that there are too many real estate sales reps in the field competing for a limited amount of business, making the industry more ruthless and diluting the services that a professional sales agent should be offering.
Inevitably part of the debate is supported by alleged facts that other licensed professions are limited, ranging from teachers to taxi drivers.
That particular argument is not exactly true. Teachers’ licenses are not limited in any province. Each year many new teachers are licensed. Taxi driver licenses are not limited in most cities either. The challenge in both of these professions and pretty much any licensed work is getting a job, because that is what is really limited. There are only so many taxis in most cities and certainly there is a limit to the number of teachers employed by public schools and private learning institutes.
So the debate around real estate work is really one of jobs. Should the number of jobs in real estate be limited? Anyone with a real estate license, who is willing to pay the expenses, can set up shop where they want to.
The strongest argument for not limiting jobs for brokers and sales reps is that selling real estate is entrepreneurial by its nature and should not be limited in any way. If jobs in real estate sales were limited, the spirit of the work would be at risk. Some would say the quality of the work would suffer greatly by limiting the opportunities to enter the business.
Presently all those who get out there and work hard to find listings and make sales will do well. That is the most attractive thing about the real estate profession. It is the reason that so many come to the industry regardless of their background. High school drop outs, people with university business degrees, even professors enter real estate. There are single moms and dads, television personalities, successful bankers and all manner of people with all manner of backgrounds that join this business community every day because of one common thread; they are all entrepreneurs.
The cream, they say, will always rise to the top. The hardest worker will always win the day. The only thing that needs to be regulated is the playing field, many real estate practitioners say. As long as everybody in this business is on one level field, under the same rules, there is no need to limit the number of those who can participate. The best in the business will emerge and they will be sought out because they deliver the best service.
Those who argue for the idea of limiting licenses say that this is the point of contention or at least one of them. By having no limits to the number of people in the business there are simply too many people out in the field. That means, they argue, that corners are cut on services for the sake of delivering work cheaper. Commissions are reduced because the overwhelming competition means that too many agents are chasing the same business, bringing out the worst in competitors offering discounts cut at such deep rates that it is impossible to give good service for such low payment.
The analogy is that if you let everybody be a policeman and pay them commission per arrest, we’d all be in jail instead of walking around safe, which was the whole point of having an unlimited number of police in the first place. The argument is that by not limiting the number of real estate agents you run the risk of losing the point of the work, which is to provide professional services in property sales transactions and not cut corners for the sake of cheap service.
The arguments on both sides are compelling and very persuasive. I have heard this moving and at times emotional debate for over 30 years. I wonder if it will ever be solved.
On a completely different topic, REM has some promotional coffee mugs that we would like to give out. I would be pleased to send one to you if you send me a picture of yourself or anyone else in the real estate business reading a copy of REM. I am building a bulletin board and may even use the photos in a video. Please send your photo to [email protected] with your mailing address and I promise I will send you a coffee mug.
Heino Molls is publisher of REM. Email [email protected].
