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Realtysellers re-emerges
From: REMonline.com
Realtysellers has re-entered the Toronto area real estate market under the name Realtysellers Real Estate Inc., offering consumers a number of discounted real estate services, including an option to post listings on MLS for free. One of the firm’s founders, Toronto lawyer Lawrence Dale, announced the restructured company’s re-entry in November, stating that the Consent Agreement signed between CREA and the Competition Bureau now makes it possible for his business model to succeed.
For consumers wanting to sell their homes with the assistance of Realtysellers, the firm offers a listing fee of 0.5 per cent – the consumers decide what commission to offer to the buyer’s agent. For homebuyers, Realtysellers has what it calls a “buyer bonus” equal to 50 per cent of the first $25,000 in fees and a 100-per-cent rebate on the remainder, up to 75 per cent of Realtysellers’ fees.
The original Realtysellers – operating under the name Realtysellers (Ontario) Ltd. – was one of the Canadian real estate industry’s better known discount brokerages. Launched by Dale in 2000, in partnership with former broker Stephan Moranis – who had also served as president of the Toronto Real Estate Board – the firm offered discounted real estate services, including a flat fee program. The company suspended operations in 2006, stating that it could no longer do business under the MLS rules that existed at the time.
Dale and Moranis subsequently filed a number of lawsuits against the Toronto Real Estate Board (TREB) and CREA. Two of the lawsuits against TREB are still outstanding.
During the recent dispute between CREA and the Competition Bureau over MLS access, Dale applied unsuccessfully for intervenor status in support of the bureau’s allegations that CREA’s MLS access rules were anti-competitive. The commissioner of competition included some of Dale’s information in her filings with the tribunal. That dispute was settled out of court in October, when CREA’s membership ratified a Consent Agreement between the association and the commissioner. Dale has since publicly commented that he expects to see further action against organized real estate pursued by the commissioner.
While Dale remains one of the key people behind the new Realtysellers, Moranis is not involved in the new venture, having rejoined Prudential Sadie Moranis Realty to help build up the business founded by his late mother. Real estate industry veteran Allan Spivak is broker of record for the new Realtysellers; Spivak was one of the brokers with the original Realtysellers firm.
As with the former Realtysellers business model, Dale says the new venture is consumer focused. “We’re trying to give a group of consumers who want something, what they haven’t been able to get,” Dale says. “The vast majority of consumers today are going to do it the traditional way – no question. But what you now have is an option in between.”
As for offering to post listings on MLS for free, Dale says he isn’t doing this for charity. “If they do require the services of an agent, or a brokerage to help them – if they decide ‘this isn’t for me, I want to get some help’ – our hope is that they will retain us on our half a point program, where we’ll do everything for you,” he says. “Most sellers are looking to buy as well – again, I’m in front of you and want the opportunity that, if you want to buy, you’ll use us.”
Dale also says that the earlier Realtysellers business model wasn’t a money-losing venture, but that it couldn’t operate successfully under the former MLS access rules. “We got out of it the last time because the playing field was such that these scoundrels can pass rules to put me out of business at any time. Now they can’t – it’s crystal clear,” he says.
Realtysellers won’t have a bricks and mortar office for consumers to visit and Dale isn’t specifying how many people are now working for the new Realtysellers, or will be working for the company in future. He does say the company will be using a network of brokers and agents.
“We have lined up a large number of agents who are going to be providing services for us – those agents are affiliated with associated companies, so it’s not a referral network but it is a network. We also have agents with traditional firms who want to provide their services to us, all under our supervision.”
Dale admits that his business model is “still a work in progress…but I’m back.”
Source: By Kathy Bevan as published in REMonline.
November 24, 2010 in Realtysellers | Permalink
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Comments
Offer to “list for free” on MLS by Realtysellers is in my view fish bait that will in most if not all cases lead to a lucrative business venture for Realtysellers, as in realilty there will ultimately be no real savings for the consumer than the traditional way business was done in the past. My advice to all consumers who may choose to list “for free”: BEWARE OF ALL TO EXTRA SERVICES AND CHARGES THAT WILL LIKELY FOLLOW.
Posted by: Adirondack real estate | Dec 6, 2010 11:22:30 PM
Ewww brampton... ewww
just kidding.
But not really.
Posted by: Geoff | Dec 2, 2010 9:40:27 AM
Prem RE in Brampton is in grave trouble as sales have fallen so bad that the Brampton Real Estate Board has not made public any numbers for about 100 days or since summer. Why bring the crashing housing market to people attention. Power of sales have gone through the roof in Brampton as many have gone bankrupt and walked away. Anyone thinking of buying should offer at least 25-35% below asking and even as high as 50%. If these people don't sell they will go bankrupt. Buyers have sellers by the Balls. Prices are down from last year. Anyone who bought RE in Brampton in the past year have lost tens of thousands of dollars. The housing crash seems to be spreading from Brampton to other parts of the GTA. If you want to buy find a realtor who deals with power of sales since many people are going bankrupt in the GTA.
Posted by: Realtor | Dec 1, 2010 11:33:29 PM
Can any realtor answer this question as to why Brampton RE board has yet to release sept and Oct sales numbers. How bad of a housing crash is brampton in?I heard rumours that it's over 50% drop in sales for both September and October.From driving around Brampton very little gets sold and many houses are taken off the market unsold. Since No numbers have been released the rumours must be true. I heard as high as 65% drop in sales . Power of sales are up from what i hear.
http://www.bramptonandarearealestate.com/2010_Residential.html
Posted by: prem | Dec 1, 2010 6:16:18 PM
I think the industry needs a clean up. This been going free for all for too long. Hope things gets better soon.
Posted by: Moncton Real Estate | Dec 1, 2010 12:17:04 PM
@ realtors are useless - so are useless comments. Entrepreneurs also don't require years of university education which doesn't make them useless either.
Not a realtor, but stupid comments can't be just ignored on here either. Stupid is as stupid comments, apparently. Sigh.
Posted by: Geoff | Dec 1, 2010 9:13:10 AM
Property Managers are third party to the rental. Many times Owners can allow emotions to get involved in their decision making criteria. Managers look at properties as if they are investments only and make decisions based on return on investment capability, safety and to comply with state and federal guidelines for property management companies in Medford Oregon
.
Posted by: Medford Oregon Property Manager | Dec 1, 2010 7:15:55 AM
Realtors are useless over paid and under educated. What education does one need to be a realtor? How many years of university? The anser is ZERO. That is what realtors are wirth. NOTHING
Posted by: realtors are useless | Nov 30, 2010 8:47:52 PM
This is the year 2010 people. People used to have to go to a stock broker to trade stocks. Now they have choices in how they want to trade their stocks. Billions of dollars in stock is now traded each day without the assitance of a full service stock broker. Consumers for years could decide how they want to trade their stocks. Remember that the majority of all stock trades are still not done by so called discounters, but the so called discounters have taken a good peice of the former commission pie. Look in the mirror and ask yourselvers how many deals did I do last year-I bet most of you did not even do 2 deals a months. Tradtiional agents are afraid of finally now having to justify our fees and keep trying to come up with scare tactics to bash any threat to thier turf. Consumers know the score and agents are afraid. The successful full service stock brokers had to justify their fees and show value for what they were charging once the discounters came along, but many stock brokers could not show consumers they were anything more than a required conduit to the stock exchange to buy and sell stocks and were forced to leave the business. It looks like many agents simply cannot justify the fees they have charged for years with the value they bring to a transaction.
Posted by: custom homes virginia | Nov 30, 2010 3:32:40 AM
They are offering FREE listings and have only 9 homes listed. Really? They are good at PR, but I guess that only gets you $0 revenue and 9 listings. They went out of business last time because they spend thousands of dollars marketing their packages and no one bought.
Posted by: Really? | Nov 29, 2010 3:50:32 PM
I have used Realtysellers and I have to say their service is absolutely terrible and unprofessional. This is probably the second agent I have worked with that became absolutely enraged and irrational, and I have met hundreds of agents (as I often prefer to deal directly with the listing agent). STAY AWAY. I am a firm believer in owners being able to sell privately in a competitive environment. I sold my house privately for over the highest Realtor appraised price during the recent depression. I am also a firm believer in lower Realtor fees and more competition amongst Realtors and their services, but these people are a bunch of clowns.
Posted by: Angry Customer | Nov 29, 2010 10:54:52 AM
I agree no real estate agent should discount their fees. We are professionals and provide a service that is second to none to get properties marked and sold.
Posted by: Arizona Investment Property | Nov 27, 2010 5:01:47 PM
@Former Client... I agree, it is twisted and backward and they ought to be on the hook for everything they owe.
Posted by: Eddie | Nov 26, 2010 10:33:59 AM
Can any realtor answer this question as to why Brampton RE board has yet to release sept and Oct sales numbers. How bad of a housing crash is brampton in?I heard rumours that it's over 50% drop in sales for both September and October.From driving around Brampton very little gets sold and many houses are taken off the market unsold. Since No numbers have been released the rumours must be true. I heard as high as 65% drop in sales . Power of sales are up from what i hear.
http://www.bramptonandarearealestate.com/2010_Residential.html
Posted by: Prem | Nov 26, 2010 12:23:57 AM
What eduation do realtors have? Do they goto university or college to become realtors? If not they are worth no more then $10 an hour.
Posted by: Prem | Nov 26, 2010 12:19:29 AM
As a Realtor I'm not one to reccommend discount services to someone thinking about selling their home. I believe in promoting and marketing your home to its full potential. But that's a whole other story. If you are currently thinking about using a discount brokerage like RealtySellers, make sure you do your homework first. You shouldn't be selling your largest asset with someone just because they are cheaper. I have read a 36+ page application/instruction package that this company (and I'm sure others) will give to you which indemnifies them of just about everything. If I wasn't in real estate, I don't know how I would fill out all this information on my own. I wouldn't be surprised to see some very public lawsuits around the corner involving buyers suing sellers for not disclosing important information or providing information that is not accurate. Just my two cents. www.yourmarkhamrealestate.com
Posted by: Martin MacFarlane | Nov 25, 2010 4:40:49 PM
It is very unfair for a company to close its doors, not pay its clients the money it agreed to in writing and re-open a few years later under a slightly different name.
Realtysellers (Ontario) Ltd. and Realtysellers Real Estate Inc. have essentially the same people behind them. I was promised a buyer rebate but the company has not paid it. What are the chances they will do the same thing with their future clients? Do you really want risk it?
Posted by: Former Realtysellers client | Nov 24, 2010 2:35:16 PM
