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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
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