Consider how much realtors pay into organized real estate in Canada each year in regional, provincial and national fees. If we suggest an average of $150 monthly for 160,000 realtors across the country, it really adds up.
There’s a common sentiment that the realtor community in Canada cannot compete with the tech giants that tout significant research and development budgets because we’re just too small. Individually, this is true. But collectively, there’s an opportunity to leverage larger resources to do more.
That said, it’s not just about having one large pot of money; it’s what organized real estate does with that money.
The boards’ challenge: Focusing on strategy while dealing with operational issues
This pool of fees collected from realtors sustains around 70 boards of directors, staff groups, MLS systems, conference attendance, honoraria, office spaces, reserve funds, etc. It also sustains around 70 strategic plans, each of which, I would wager, says very similar things: platitudes like goals of working with stakeholders, improving member engagement and achieving organizational excellence.
The ongoing challenge for the boards of directors across Canada is that they often believe they are focusing on strategy but are mired in frequent deliberation over operational matters. This makes sense because the organizations have an operational function in providing services to members. The board of directors, in turn, is made up of members who are also direct recipients of these services.
It is profoundly difficult to disconnect the board from the operational output which would enable exclusive focus on the strategic direction of the organization. This is made even more difficult when we feel invested in the services and meet monthly.
Do monthly meetings foster strategy or naturally draw volunteer leaders into day-to-day operations? Despite a desire to concentrate on big-picture strategies, frequent meetings and lack of guidance often distract directors to fixate on operational discussions. Every strategic plan in this country is loaded with the words “innovation” and “collaboration.” Yet, because of the system we all work within, one would be hard-pressed to see much of either.
Decisions made not by innovation and collaboration but by protectionism and self-interest
It may be time that the purpose of organized real estate in Canada materially shifts. Rather than continuing along the same path, let’s change the “WHY.” Let’s fundamentally change the reasons for organized real estate to exist. Ask ourselves, does it solely exist to sustain itself?
Decisions being made by local boards are often based on protecting their legacy: MLS systems and data. The entire construct of organized real estate has been made up along the way, over 100 years, and now we find ourselves victim to this artificial environment. We end up making decisions not based on innovation and collaboration but on protectionism and self-interest.
Big moves in the space aren’t slowing down
We’re currently seeing prominent, non-traditional players making big moves in the real estate space — including the likes of Intercontinental Exchange buying Black Knight (provider of Paragon) and Questrade buying Zolo in Canada.
These mergers and acquisitions are not new and certainly won’t slow down. They’re also not motivated by owning new tech platforms; they’re motivated by access to data. That appetite for data infringes on the primary traditional mandate of organized real estate: protect our data at all costs, even from each other.
What now?
Knowing this, the question is, what now? We need to do two things: actually collaborate and actually innovate.
Let’s start acting like corporations by normalizing and, dare I say, proactively making better use of the annual influx of capital from the realtor community to its organizations.
Let’s move away from the over-fixation on the existing cooperative construct of organized real estate (which is under threat as it is) and start focusing on centralizing data and leveraging it for the benefit of the industry and consumer.
Let’s stop focusing on legacy and start focusing on leveraging our resources, data and industry to truly compete.
As long as the existing structure of organized real estate continues as it is in this country, we’ll spend our resources on the maintenance of that structure. We’ll continue to struggle to find alignment because we’re internally focused. We’ll be challenged to drive strategy because operational considerations will prevail.
Let’s reimagine organized real estate in Canada. Let’s do it all differently.
Please note that it is BCREA policy to not respond to comments on any of its online articles.
As a former managing broker and realtor, Trevor Koot’s nearly two decades in organized real estate gives him hands-on expertise in understanding the profession’s needs. Before stepping in as CEO at the BC Real Estate Association, he served as CEO of Kamloops and District Real Estate Association for four years and Kootenay Association of Realtors for three before successfully merging the two into the Association of Interior Realtors. Trevor’s leadership in the real estate sector began long before his CEO career when he was Chair of the Saskatchewan Real Estate Commission for five years. He played a key role in redrafting provincial real estate regulations during his tenure. Trevor also served two years as Chair of the Governance Committee at the Association of Real Estate License Law Officials.
He holds multiple degrees, from a Bachelor of Science in Kinesiology and a minor in Mathematics through the University of Saskatchewan to a Master of Business Administration degree through Royal Roads University. Trevor is adding to his extensive education through his current pursuit of completing a Master of Laws degree at York University. His daughter, Abby, attends the University of Victoria while he and his wife, Jill, live in Vancouver’s Chinatown.
Spot on Trevor. The scale of our industry in Canada by every metric lends powerful opportunity that has yet to be utilized is is simply overlooked.
Change is long overdue…get rid of the boards, have us on one platform. Let’s hope next generation makes it happen 🙏
everyone has one
As a retiree from 25 years as an independent contractor broker and volunteer sales trainer for hundreds of independent contractors, I know the real estate industry is not only the largest industry in Canada, but also the most competitive Canadian industry at the consumer level interface. It is also a highly attractive final career choice for mature Canadians. Thus, strategically the industry’s 160,000 independent sales force needs an influential collective voice to protect their interests vs. the interests of the franchise broker cabal across Canada, which tend to control the real estate boards. AI (Artificial Intelligence) is changing the industry in favour of the broker boards and their franchisors. In my experience and consideted opinion, the public will be better served by human AI (Actual Intelligence) from personal independent contractors serving their clients. Automated contracts on cell phones are one example of the public not truly understanding, or easily reading, the legal complexities of the documents they are signing. Automated check-list home inspections can be extremely misleading to both buyers and sellers. Even real estate exams are producing licensed realtors unable to write amendments or function in one of our official languages. Customer/ Public services are best controlled by licensed realtors. Our industry needs to strengthen them, not try to automate them and build AI corporate firewalls between the broker agencies and their client buyers and sellers. The industry is already moving along this track and needs to change course asap.
Amen! and a Very long time overdue!
You are absolutely correct Trevor but unfortunately it will simply not happen. There are too many vested interested in ORE and too little willingness to truly innovate. You are also correct that most boards do not even know what a Strategic Plan truly is and EO’s who claim to be experts are anything but. The fact that in Ontario, much of the Greater Toronto Area (GTA) has no access to data from the Toronto Regional Real Estate Board TRREB) is a prime indication of this. This is not due to TRREB, but rather to many surrounding boards and association who are frightened of the ‘big player’ or simply hold on to personal animosities. Without a province wide MLS data-base Realtors are doomed under the current system.
Right ✅️
Spot on. All these out siders use our data and beating us. As a President of Real Estate Board (2019) I agree with your all assessment. We need to make realtor.ca an independent for profit venture. We need to move away from non profit organization status. MLS system should not be controlled by local boards, should be provincial. There should be no local boards or provincial organizations, CREA is enough to have board of directors. Then we can have provincial and local offices to serve realtors.
ABSO..FUDUL DUTTLE..
LUTELY
ITS WELL OVERDUE.
PRIME EXAMPLE IS HOW
Orea just manipulated 96,000 REALTORS TO A HEALTH PROGRAM THAT WAS NOT NEEDED
For ING, including me to either park our licences with a broker with no MLS ACCESS, and or leaving the business.
That is no what we have our Associations for.
They are wayyyyyyy to controlling.
ITS TIME
Do you people eat the crap put out by the WEF too? At least 80% of Real Estate is done by 20% of Realtors… if all the people in and on boards were part of the 20%… do you think they would be on Real Estate Boards?
Go ahead and knuckle under and come up with a big idea and you will still find yourself wallowing in the mud with the 80% trying to hamstring the 20% that gets the job done.
Trevor, you are absolutely spot on!
Great encapsulation of what is currently happening with boards and the very important discussion that should be taking place isn’t.
I enjoyed your perspective of the duplication over and over of strategic planning and other initiatives coming from too many committees who produce the same results but with slightly different packaging. I have always believed that boards should reflect their own geography but times have changed. From an Ontario perspective, OREA could divide the province into 5 or 6 regions and the boards would be gone but they are fiefdoms and people will fight to the end to keep them going for personal power. Facing the future, being fragmented is the best thing that can happen for the deep pocket disruptors. I would not bet that the sun will shine tomorrow but I will guarantee, within the next ten years and less one will not recognize the real estate model then. We are in a heyday and people better realize it. Agency, commissions and structure – a revolution is not coming – it started years ago, it is only now being better refined.
Thanks Trevor this was my belief 30 years ago but Board of Directors then and now tend to protect their own territory and prestige while avoiding the necessary grand scale innovation. Time for renovation or simply wait for a very high tide that washes all asunder. Methinks I’ll stay retired and hope for the best. Good luck.
Spot on Trevor!
As a relative newcomer to the industry, I see the tremendous potential but also the gatekeeping and protection of some legacy items.
We have an opportunity to truly modernize this industry and move it forward. And motion should not be confused with progress.
Trevor well said! Great things seem to come out of Kamloops! We are long overdue for meaningful restructuring & change to organized real estate in Canada, as we lost our way quite awhile ago. Time to think like a real business, think outside the box strategically to prepare for the future or risk obsolescence. Keep going Trevor!
A rare occurrence….someone from within the ORE vacuum who gets the plot! Kudos to you!
Amen Trevor, we are overdo for a restructuring of this industry we would love to call a profession. We are in our own way and until that changes we’re likely in big trouble. I’m not sure what the answer is but we’d better start looking for one.
Oligopoly
A market structure with a small number of firms, none of which can keep the others from having significant influence.
Thank you Trevor. Serving people, this is what I love doing, representing their best interests, but obeying self serving, decided to be a dictatorial power entity IS NOT a part of the agreement between me and our clients that notice WE are bringing by our daily activities. The entity that suing their own members for having different opinion on a MANDATORY manner of implementation of ORWP. So, I am parked. Might not even come back if things progress into more grabbing power direction. Serving people can be done in different industries. On my opinion you don’t pour young wine into an old wine skin. Self serving entities should be eliminated.