Walkability: it sounds like a straightforward concept, but when you consider the diverse landscape within major Canadian cities, it’s not quite an apples-to-apples comparison.

Francesca Johnson, a realtor with Century 21 based in Calgary (which has a Walk Score* of 39), grew up in Manitoba. The difference between the two cities when it comes to defining walkability is indicative of each area’s respective urban areas — despite Winnipeg technically having a higher Walk Score (of 48).

“It takes half an hour to an hour to even get to the city from where a lot of people live because it’s very agricultural,” Johnson explains about Winnipeg.

She compares walkability to her current experience living and working in Calgary:

“I would break it open to three pieces: amenities, accessibility and safety,” she comments. “Are they taking good care of the sidewalks in the winter time, or are you going to be terrified that you’ll break your back on the way to work because they haven’t started it or they haven’t travelled it?”

Place-making and pedestrianization in Vancouver

On the West Coast, Vancouver (with a Walk Score of 80) is addressing its own questions about walkability with the City’s launch of the Water Street Pedestrian Zone pilot project over the summer in the popular Gastown area. The pilot converted a section of the street, formerly open to vehicle traffic, into a pedestrian-only area with public seating, market stalls and a free bike valet.

Nathan Hawkins, an urban planning student at the University of British Columbia, is involved with Vision Zero Vancouver, a non-profit organization that advocates for transportation systems that put safety first. He closely watched the pilot project in Gastown unfold throughout July and August.

“I love it,” Hawkins shares. “I think any change of use and pedestrianization of streets is fantastic from a safety and place-making perspective.”

Some businesses dissatisfied but pilot & walkability factor could help — not hinder — sales

Not everyone shares his sentiments, however. Some local businesses affected by the project have expressed their dissatisfaction with the changes, citing negative impacts on sales.

Having previous experience as a real estate project manager for a retail start-up in Canada, Hawkins takes an analytical approach in assessing any brick-and-mortar business’ sales success. This involves metrics such as month-over-month revenue, daily revenue, year-over-year revenue and basket size per sale/transaction. He believes that the pilot project, and subsequent walkability factor that comes with it, should actually help, not hinder, these businesses. 

“No business has the resources to be able to say this specific pedestrian pilot accounted for 80 per cent of their loss of sales this month versus last month. There’s just no way,” he adds.

Toronto: ‘So hard to get downtown’ and every commute minute matters

Adam Jacobs, PhD, the national head of research with Colliers, adds his insights into how walkability impacts the real estate market in Toronto (which has a Walk Score of 61), where he’s based:

“It’s so hard to get downtown here,” comments Jacobs. “It’s a difficult commute, there’s a lot of construction, there’s a lot of traffic and it’s getting harder and harder to get employees downtown.”

For businesses with offices in downtown Toronto, every minute matters. A Q1 2024 report from Colliers indicated that “an average lower commute time of 10 minutes is correlated to a two-percentage point lower market vacancy.” 

So how do these businesses decide on their next office space?

“(They think,) ‘Let’s make this as frictionless and easy as possible. I’ll pay top dollar to rent the building right next to the main train station’,” Jacobs explains.

Walkability impacting the market: A ‘wholly Canadian issue’

Whether you’re in Calgary, Winnipeg, Vancouver or Toronto, walkability plays a key factor in the real estate market. And while there are differences between each city, Hawkins sees this as a wholly Canadian issue.

“We as a country are very unwilling to invest deeply and make bold moves. Canada as a whole really approaches governance as, ‘We need to see somebody else do it successfully for 10 years and then we’ll do a milder version of what they did,’ and that’s exactly what’s happened with the Gastown pedestrian pilot,” he points out.

“I don’t think the City went far enough with it. They’re very averse to taking risks and doing things boldly, the way that other cities, like Paris, are willing to really invest in public spaces.”

Montreal: A potential source of inspiration

Widely known as one of the most walkable cities in Canada, garnering comparisons to other European cities like Paris, Montreal may be poised to serve as an inspiration point for the rest of the country.

With a Walk Score of 65 — lower than Vancouver’s — Montreal is one example of how numbers alone can’t tell the whole story or paint the full picture of a city’s accessibility and walkability.

Lea James, originally from Paris, lived in Montreal before eventually moving to Vancouver and currently advocates alongside Hawkins at Vision Zero Vancouver.

James believes that Paris and now Montreal increasingly becoming among the most walkable and bikeable cities taught us in the last few years that, “Without determined political powers and citizens pushing for healthier and safer cities, change will not happen.”

“A walkable city is the best advocacy for living in a sustainable way, connecting with our communities and enjoying healthier living, and that’s the winning recipe to make our cities durable and equitable,” James adds.

* Walk Scores sourced from walkscore.com

The Canadian Real Estate Association (CREA) recently released its latest episode of its REAL TIME podcast, featuring yours truly and CREA CEO, Janice Myers. On it, we discussed the draft business case CREA released earlier this summer that outlines a path forward for REALTOR.ca as a taxable entity and the incredible opportunity that could provide.

Here are two key takeaways of our podcast conversation:

1. I fully acknowledge and understand any concern and hesitation that’s been shared with us about the proposed transition — REALTOR.ca is our most valuable asset. But I firmly believe our biggest risk is inaction. Let’s seize this incredible opportunity to ensure REALTOR.ca continues to be the trusted platform for all things Canadian real estate — with REALTORS® planted firmly at the centre of it all.
2. If you haven’t already, please read the draft business case, which can be found at CREA.ca/REALTORinc.

REALTORS® have seen firsthand how REALTOR.ca has paved the way for how real estate is marketed and consumed in Canada. The platform has become a cornerstone of our industry, providing unparalleled value for both our business and consumers.

REALTOR.ca has evolved from a public-facing website to a comprehensive platform with integrated components, like native apps for iOS and Android for both REALTORS® and consumers, and the REALTOR.ca Data Distribution Facility (REALTOR.ca DDF®), which facilitates the consistent and accurate distribution of real estate listings across 10,000 advertisement, franchisor and member websites.

We are the proud owners of a REALTOR®-centric tool that commands more than 50 per cent market share¹ in Canada because of the trust and appreciation of the consumers who turn to it. As a business tool, there’s really no comparison to the reach and exposure it provides.
How we use the internet has changed dramatically in the last decade. You could even say that about five years ago. To help ensure REALTOR.ca’s future success, we need to change our approach to maintaining such a powerhouse platform.

Year after year, competition in the tech landscape grows, consumers expect more and operational costs increase. The status quo isn’t sustainable.

CREA is proposing it turn REALTOR.ca into a taxable, wholly owned subsidiary as both a financial necessity and a strategic move to secure REALTORS® at the centre of Canadian home buying, selling and renting journeys.

Why change is essential

Currently, REALTOR.ca is operated by CREA under its not-for-profit status. While this structure has served us well, under this model, REALTOR.ca isn’t able to pursue new revenue streams or engage in certain business-related activities. Transitioning to a business model would give us the ability to unlock that potential, better positioning us to stay ahead in an increasingly competitive market.

PricewaterhouseCoopers (PwC) conducted a comprehensive analysis and presented an overview of the opportunities this transition could offer in the draft business case.
Based on initial revenue and cost projections associated with the transition, operational enhancements and pursuit of revenue opportunities, REALTOR.ca as a taxable entity could generate significant estimated revenues that could help reduce dependence on CREA funding from member dues. In other words, the current allocation of my annual $310 CREA membership dues that goes to REALTOR.ca (43 per cent) could be reduced — allowing CREA to instead allocate those funds to equally impactful priorities like government relations work and enhancing and protecting the REALTOR® reputation.

The dollars and cents are important but shouldn’t be what motivate you to consider this path forward. What’s at stake here is possibility. We can’t do more or be more by staying the same. If we want to remain the go-to choice for consumers, we need to set ourselves up to take advantage of all that’s possible for REALTOR.ca.

The benefits of a taxable subsidiary

Turning REALTOR.ca into a taxable entity could create other key benefits:

1. Innovation. With the ability to generate new sources of revenue, REALTOR.ca could adopt new technology like artificial intelligence, reach new demographics and introduce new features and tools.
2. Enhanced value for REALTORS®. REALTOR.ca could deliver things like higher-quality leads, better tools for managing client relationships and new features that enhance the overall REALTOR® experience.
3. Long-term viability. Creating opportunities for REALTOR.ca to better compete in today’s fast-paced tech landscape is crucial for maintaining our competitive edge and continuing to provide the high level of service that consumers have come to expect from the platform.
4. Self-sustainability. Reducing REALTOR.ca’s dependence on member dues could enable CREA to allocate more resources to core services like government relations, professionalism and promoting and protecting the value of working with a REALTOR®. This could help better position both entities for greater long-term sustainability and success.

The path forward

I’ve had the pleasure of connecting with many across the REALTOR® association community on this proposed transition. We know what’s at stake.

As stewards of this powerhouse brand, we have a duty to ensure its future success. The proposed transformation is a responsible and forward-thinking step towards securing REALTOR.ca’s market leadership in an increasingly competitive environment while also keeping REALTORS® firmly at the heart of that future.

Once again, I encourage you to visit CREA.ca/REALTORinc to read the draft business case, check out the other resources and share your feedback. We’re excited about what’s possible and look forward to bringing this to a membership vote at CREA’s 2024 Special General Meeting on Wednesday, October 23.

James Mabey
CREA Chair

¹ Comscore

Ken Welte, an agent with Sutton West Coast Realty, recently achieved his Emergency Medical Responder (EMR) certification and earned his Emergency Medical Assistance (EMA) license. This follows a life-changing experience in 2021 when Welte survived a serious ATV accident. 

Resulting from a deep desire to give back to those in need, Welte now volunteers as an EMR.

Welte’s story: Inspired by a near-death experience

On January 15, 2021, Welte and his wife, Laura, were involved in a near-death ATV accident that left them both in critical condition. Laura was airlifted to safety, while Welte was transported by UTV. He recalls the professionalism and dedication of the BC Emergency Health Services (BCEHS) and Nanaimo Search and Rescue (SAR) teams. 

“Their expertise and care were nothing short of life-saving,” he says. “The pain management provided by the BCEHS was crucial. Without it, an already horrific experience would have been unbearable.”

Welte’s mission as an EMR, inspired by the care he and his wife received, is to provide the same humane pain management care to others in their time of need. As a volunteer with SAR, he recognized the importance of being well-equipped with advanced skills and knowledge and so decided to pursue his EMR certification. 

After six months of study and training, Welte passed the EMA exam and earned his license. Today, he volunteers with SAR, responding to emergencies at least once a week, including swift water rescues and community mental health calls.

“This certification is just the beginning,” Welte emphasizes. “I’m committed to continuous learning and improvement so I can offer the best care possible to those in need.”

Photo: suttonspirit.com

Realtors, let’s admit it — most houses listed for sale on the market look pretty much the same. Sure, they may come in different sizes, shapes and colours, but the basic layout, design and features often feel like deja vu. 

However, every once in a great while, you may be contacted by someone who wants to sell their truly one-of-a-kind house. This could be a property with a distinct portability feature or a house with an unbelievably low price tag for its sheer size. 

So, if and when you get the chance to sell one of these special homes, do you plan on using your usual sales approach? 

We certainly hope not! Unlike conventional homes, unique properties have a limited buyer pool and distinctive features which means they need a special selling strategy. To guide you through this challenge, we gathered tips from top real estate agents on how to best sell these one-of-a-kind homes. Below are the strategies they shared. 

Tiny houses: Small properties that don’t cost much

A tiny house is what its name implies, a small home usually about 60 to 500 square feet. They’re cost, energy and space-efficient and budget-friendly, too. In fact, prices of some tiny homes in Ontario have recently been as low as $69,000.

Who are the target buyers for this unique property?

• Homebuyers on a budget
• A rent-weary tenant
• Environmentalists and minimalists

What strategies can help sell this one-of-a-kind property?

Emphasize its unique value proposition. As stated, tiny homes are all about affordability and energy efficiency. So, this is what you must focus on during marketing. Here’s an example of how you can highlight the affordability factor of tiny homes to a tenant who is fed up with rent increases.

Let’s suppose you’re selling a tiny home in Toronto — a market where you can get a tiny home for under $100,000. First, show your buyer the market data of how the average asking rent for even a condominium apartment is quite pricey:

Then, point out that it’s not really smart to pay around $2.400 for a condominium apartment in Toronto or even settle for a $2,000 rental in Barrie (as reported for August by rentals.ca). Instead, they could buy the tiny house in Toronto with a 5.0 per cent down payment, pay around $500 monthly on mortgage payments and build their own equity. 

When it comes to the energy-efficiency perk of tiny houses, also highlight it with numbers. For example, you can say that a normal-sized house uses an average of 26-33kW power every day but a tiny home uses just 3-4kW power.

Don’t let compact space be a dealbreaker for buyers. Kamal Pillai, a realtor in Ontario experienced in selling tiny homes, shares, “One main concern that tiny home buyers usually have is limited square footage. Hence, the seller of these houses should try their best to show that the home is thoughtfully designed to maximize every square inch.

They could achieve this by adding space-saving solutions in the home like a fold-out kitchen table or built-in storage. It’s all about making the most of what you have and presenting it in the best light possible.”

Price the home correctly. Unlike traditional homes, you don’t have much historical data to rely on for tiny houses, which makes pricing these properties trickier.

So, set a fair price for the tiny home by calculating the home’s construction costs and the estimated value of its unique features. Also, assess the current demand for tiny homes in the particular neighbourhood to make sure your price aligns with what buyers are willing to pay.

Houseboats: Homes on the water

Yes, houses on the water, also known as houseboats, can be found in the Canadian housing market. In fact, according to some houseboat owners, buying this type of property is one of the best lifestyle choices they have ever made.

A houseboat is a boat designed or modified to be mainly used as a living space rather than for transportation purposes. Some people live on houseboats all year round to enjoy the beautiful views of the water every day while others use them as vacation homes. 

Who are the target buyers for this unique property?

• Nature lovers
• Homebuyers on a budget
• Real estate investors 

What strategies can help sell this one-of-a-kind property?

Give the houseboat a clean and charming look. First impressions matter, even when selling a houseboat. So, advise the seller of the boat to deep-clean every nook and cranny of their houseboat before opening its door to buyers.

Pay extra attention to the kitchen and bathrooms, as they often leave the strongest impression. Also, if saltwater has caused rusty metal hulls in the boat, give it a fresh coat of paint. 

Make sure the houseboat has no severe safety issues. Apart from fixing the aesthetic issues in the houseboat, make sure the houseboat doesn’t have any major safety problems.

To do this, hire an expert marine surveyor who can assess the houseboat’s overall condition including the hull, engine, electrical systems and plumbing. You must also ask the seller if all necessary permits, registrations and insurance documents of the houseboat are up-to-date.

Pick the best time to put the houseboat on the market. The prime selling season for houseboats in Canada is usually from late May to early October.

This is when the weather starts to get warmer in Canada, and people are most interested in spending time on the water. So, showcasing the property during peak boating season lets potential buyers experience the houseboat lifestyle firsthand.

Cottage homes: A vacation home away from home

A cottage is often a cozy, rustic and charming house usually located in a rural or countryside setting.

Most cottages in Canada are specifically built for the warmer months, meaning they can’t handle the chilly weather. However, you can also find a few four-season cottages for sale that are inhabitable at all times of the year.

Who are the target buyers for this unique property?

• Second home-buyers
• Vacation rental investors
• Retirees

What strategies can help sell this one-of-a-kind property?

Highlight how investing in a cottage can pay off. Make sure to highlight to a would-be recreational property buyer that, according to a Re/Max report, Ontario cottages are expected to see a price increase in 72 per cent of recreational markets this year, with values potentially rising by up to 33 per cent.

Also, as interest rates fall, the price and demand for properties including cottages will likely surge more. Sharing these market statistics will help support your point on why your client should make a move now. 

Keep the cottage looking its best for sale. On hearing the word “cottage,” images of a charming property usually come to mind. This is the image the would-be buyers of the property for sale would be expecting, too.

So, do your best to ensure the cottage looks charming, inviting and well-cared for. This means tidy rooms, neatly arranged furniture, sparkling clean windows, shining kitchen counters, a trimmed lawn, blooming flowers and a welcoming porch. 

With carefully thought out and planned strategies like these to sell unique properties, you can easily adapt your sales tactics and get set to achieve a successful sale. 

Welcome to your regular staging advice column designed exclusively for real estate professionals. Whether you’re grappling with how to enhance the visual appeal of your listings or seeking innovative strategies to captivate your target audience, you’ve come to the right place. This is your opportunity to pose any and all staging-related questions and receive expert advice, for free.

No query is too big or small — if it’s about elevating the look of your real estate, we want to hear it and we want to help! Email your questions to ninadoiron@isodesign.ca

When it comes to selling a home, staging has become a crucial element in making a property more appealing to potential buyers. Home staging involves preparing a property to be shown in the best possible light, often by arranging furniture, decorating and sometimes even renovating certain aspects of the home.

However, one question that frequently arises among homeowners and real estate agents is why staging costs differ so much from one stager to another. Several factors impact staging costs, which we’ll get into below.

1. Scope of services    

One of the primary reasons staging costs differ is the scope of services offered by different stagers. Some stagers provide a basic consultation where they advise on how the homeowner can arrange their own furniture and decor. This service might cost anywhere from $150 to $500, depending on the thoroughness of advice provided, the region and the stager’s experience. 

On the other hand, full-service staging involves a more hands-on approach, including the stager bringing in furniture, artwork and accessories. This level of service can cost significantly more, often ranging from $2,000 to $10,000 or even more depending on the size of the home, the quality of the furnishings and accessories and the length of time the staging items are rented.

In some cases, stagers may also offer specialized services like decluttering, deep cleaning or minor repairs, which can add to the overall cost. The more comprehensive the service, the higher the fee. For instance, a stager who also handles renovations or provides high-end luxury furniture might charge significantly more than one who simply rearranges existing items or offers standard-quality furniture.

2. Experience and expertise    

The experience and expertise of the stager also play a critical role in determining cost. A seasoned stager with a proven track record of helping homes sell faster and for higher prices can command higher fees. Staged homes spend significantly less time on the market compared to non-staged homes, which underscores the value of hiring an experienced stager who may charge more because of their ability to deliver results. 

Just like with professionals such as accountants and lawyers, the more experience a home stager has, the higher their fees tend to be. With greater expertise comes a deeper understanding of the market, refined skills and a track record of success, all of which justify the higher cost. 

Experienced stagers often have a deep understanding of buyer psychology, market trends and what appeals to specific demographics. They may also have a well-established network of vendors and resources, which can enhance the staging process. For instance, a stager with 10+ years of experience may charge upwards of $500 per hour for consultation, while a newer stager might charge closer to $200 per hour.

3. Geographical location    

Location is another significant factor in the cost of staging. In high-demand real estate markets such as Toronto, other larger cities and British Columbia, staging costs are typically higher than in smaller, less competitive markets. This is partly due to the higher cost of living and partly because homes in these areas often have higher price points, which can justify a more significant investment in staging.

For example, in Toronto, full-service staging for a mid-sized home might cost anywhere from $5,000 to $10,000, while in smaller cities on the East Coast, the cost could be as low as $2,000 to $4,000. The difference in pricing can be attributed to factors like the availability of staging resources, the cost of transporting furniture and the level of demand for staging services in the area.

4. Inventory and quality of materials    

The quality and type of inventory a stager uses can also influence the cost. Some stagers own a large inventory of high-end furniture, artwork and accessories, which allows them to create luxurious and highly appealing spaces. The cost of maintaining, transporting and insuring this inventory is reflected in their fees.

For example, a stager who uses luxury brands like Restoration Hardware or custom-made furniture will charge more than one who uses standard or rental-grade furnishings. The difference in cost can be substantial — luxury staging can cost 50 per cent to 100 per cent more than standard staging, especially if the home is large and requires many high-end items to appeal to high-end buyers.

We recently staged a $7 million luxury waterfront property, where each room featured expansive dimensions. To complement the scale of the space, we not only incorporated high-end, luxury furniture and accents but also sourced large-scale pieces specifically tailored to suit the grand proportions of the rooms. This ensured the staging was not only visually striking but also appropriately proportioned to the property’s grandeur.

5. Customization and client expectations    

Customization is another factor that can drive up staging costs. Some clients may have specific requests or high expectations that require additional time, effort and resources. For example, a homeowner might want the staging to reflect a certain lifestyle or theme, such as a modern minimalist look or a coastal vibe. Accommodating these preferences often requires the stager to source specific items or make special arrangements, which can increase the overall cost.

Additionally, some stagers offer bespoke services, where every aspect of the staging is tailored to the client’s needs. This level of customization is typically more expensive because it involves more planning, sourcing and sometimes even custom furniture or artwork.

6. Duration of staging    

The length of time the staging items remain in the home can also affect the cost. Most stagers include a certain period (typically 30 to 60 days) in their base price. If the home does not sell within that timeframe and the staging needs to be extended, additional fees will apply. These extension fees can range from a few hundred to several thousand dollars, depending on the stager and the inventory involved.

7. Insurance and liability costs    

Stagers must also account for insurance and liability costs, which can vary depending on the size of the staging operation. Larger companies with more extensive inventories may have higher insurance premiums, which are passed on to the client in the form of higher fees. This includes coverage for potential damages to the home, the staging items or injuries that might occur during the staging process.

8. Overhead costs

Another critical factor that contributes to the varying costs of staging services is the difference in overhead costs between stagers who run large teams and those who operate as solopreneurs. Stagers with a large team often have higher overhead expenses, including salaries for employees, rent for office space, warehouse storage for inventory, transportation costs and insurance for both the business and the team members.

These costs add up and are typically reflected in higher fees for services. For example, a stager with a team may need to cover the costs of a dedicated logistics manager, movers and administrative staff, all of whom play essential roles in delivering a seamless staging experience. 

In contrast, solopreneurs who work out of their homes have significantly lower overhead costs. They often manage all aspects of the business themselves, from client consultations to physically staging the property, which allows them to keep their prices more competitive. However, this can also mean that their capacity is limited and they may not be able to take on as many projects simultaneously as a larger team could. The trade-off between a solopreneur’s lower costs and potentially more personalized service versus a larger team’s resources and scalability is something homeowners and agents should consider when selecting a stager.

The cost of home staging can vary widely from one stager to another due to a range of factors including the scope of services, experience, geographical location, inventory quality, customization, duration and insurance and overhead costs.

When selecting a stager, homeowners and real estate agents should carefully consider what’s included in the service, the stager’s track record and how well the staging aligns with the property’s target market. While it might be tempting to choose the least expensive option, investing in a skilled stager who understands the nuances of the market can lead to faster sales and potentially higher offers, ultimately making the cost well worth it.

Got home staging questions for a future column? Submit them to ninadoiron@isodesign.ca

The Ottawa real estate market saw increased activity in August, with 1,100 homes sold, the Ottawa Real Estate Board (OREB) reports. This marks a 10.2 per cent rise compared to August 2023, though sales remained below both the five-year (-11.4 per cent) and 10-year (-14.1 per cent) averages for the month.

Year-to-date, Ottawa has recorded 9,444 home sales in 2024, a 6.0 per cent increase from the year prior.

Buyers remain cautious, advised to remain patient and work with realtors

“Being a seasonal market, it’s very encouraging to see sustained levels of activity throughout the whole summer,” says OREB president-elect Paul Czan. “And coupled with a third consecutive interest rate drop from the Bank of Canada, we are anticipating a heated market in the fall.”

While affordability remains a key concern for buyers, a steady stream of new listings and stable prices have kept them cautious. Czan notes that sellers must remain patient and work closely with realtors to price their homes appropriately and develop strong selling strategies.

Source: OREB

Price trends

Last month, the area’s composite benchmark price was $646,000, down by 0.3 per cent year-over-year. The benchmark price was $732,500 for single-family homes (-0.3 per cent), $502,200 for townhouse/row units (+0.3 per cent) and $416,800 for apartments (-1.2 per cent).

The average price of homes sold in August was $660,341, reflecting a 0.3 per cent increase from the year prior. Year-to-date, the average home price stands at $678,327, up 0.9 per cent from the previous year.

Inventory & listings

Ottawa’s housing inventory saw notable gains in August, with 1,907 new residential listings, 0.2 per cent more than the previous year. Active listings grew by 25.8 per cent to reach 3,324 units, while months of inventory rose to 3.0, up from 2.6 in August 2023.

“We have met the enemy and he is us.”

Pogo, 1970

History nerds may argue over where the introduction of the real estate brokerage model took place — in New York City (1847) or in Chicago (1855) — but a sure bet is they’d agree that little has changed in the nearly two centuries of real estate brokerages in North America.

What else hasn’t changed? The keyboard (1870) you’re using and the ballpoint pen (1888) on your notepad may very well have been the first technology welcomed by early salesmen.

The sector has some big, longtime problems

Richard Montgomery, in his column “Dear Monty,” identified the sector’s biggest problem in 2020: the glacial pace of change to the brokerage model, including low entry levels, misdirected training, and marginal supervision.

We have both been managing brokers and worked in the real estate regulatory space, and we both now work in the organized real estate side of the profession. We’ve also both shared observations in REM about the challenges that managing brokers face and the risks for the sector if the status quo continues — including lack of succession planning, inability to attract new talent into the role and forced change by regulators.

We’ve shared everything from obvious observations like compensation for the role not commensurate with the responsibility, accountability and liability that comes with it, to more complex aspects like brokerage sustainability when incentives are offered but not supported by a sound business model. 

Those earlier articles discuss some of the things that got us to this point.

The introduction of teams: Adding pressure to brokers and risk to the sector

One of the things we both feel contributed to pressure on the role of the managing broker and the resulting risks for the sector is the introduction of “teams.” Before teams, many realtors, especially top producers, were motivated to branch out and form their own brokerage because of financial/taxation benefits, the desire to create a different culture or general displeasure with their brokerage.

Today, they form a team — no fuss, no trust (account) and no brokerage license or franchise purchase. This simplicity has also impacted motivations. They may see an opportunity to provide specialized services, seek a structure that accommodates work-life balance, pool resources for economies of scale or just generally be more collaborative and, thus, competitive.

Evolution in regulations for teams: A B.C. snapshot

Recent research including confirmation from the BC Financial Services Authority indicates there are 1,703 registered teams in the province of British Columbia but no information about the total number of team members. Currently, there are about 27,000 real estate sales licensees. The minimum number of team members is two.

Therefore, teams make up at least 12 per cent of the licensees in B.C. Assuming an average of four members per team increases the percentage to 25 per cent. Although unlikely, an average of eight members would mean 50 per cent of B.C. real estate licensees are team members. 

The regulatory environment around teams has evolved to some extent. Koot recalls attending an international real estate regulator conference in the mid-2010s thinking there’d be an opportunity to plagiarize teams regulations from another jurisdiction, only to find out that everyone else attending the conference had the same intention.

Still, not all jurisdictions identify teams. Until 2023, the only reference to teams in the B.C. regulator’s rule book dealt with advertising. Other jurisdictions require the team leader to have regulated qualifications, and in several jurisdictions, unlike B.C., team names cannot include or be connected with the word “realtor” nor use the words “group,” “realty” or “associate.”

As in B.C., teams may not indicate in any way that they are a brokerage and remuneration can only be made through the brokerage. The brokerage name must be used in all advertising and the font must be the same size as the team name.

Brokerages seem to feel they cannot be successful without attracting teams, but we need a recalibration

These rules and limitations for the team and “team lead” do not, however, hold any significant expectations that would transfer liability from the broker. An environment has been allowed to evolve (by both sector and regulator) where teams operate with an element of autonomy, giving them the perfect scenario to build a business with many of the benefits and very little of the associated accountability.

From a regulatory perspective, teams cannot exist or succeed without being attached to a brokerage. From a business perspective, it seems brokerages feel they cannot be successful without attracting teams. To ensure the broker role continues to be an aspirational endeavour for realtors, thus solidifying the viability of the brokerage model under the existing regulatory framework, there needs to be a recalibration of what each — the brokerage and the team — receive from the relationship.

In the absence of a major sector overhaul to a single-license environment — which would see the extinction of the broker role altogether (as has been discussed in the regulatory world) or the creation of a joint accountability model where team leads and brokers share the regulatory burden — it’s up to the industry to self-correct.

Teams and individual realtors alike need to recognize the value the broker role brings to their success. Brokerages need to ensure that this recognition translates through resources and compensation. And everyone involved needs to adopt policies and procedures that distribute compliance responsibility throughout the organization. We may not be able to displace all the liability, but we can certainly create an environment where it’s mitigated.

Please note that it’s BCREA policy to not respond to comments on any of its online articles.

The Quebec Professional Association of Real Estate Brokers (QPAREB) August market statistics show significant growth in both Quebec City and Montreal, thanks in part to recent interest rate cuts.

Quebec City: A strong market in expansion

Last month’s residential sales in Quebec City reached 626 transactions, marking a 10 per cent year-over-year increase — the second-highest transactional activity for this time of year.

Source: QPAREB

“The strength of the Quebec City market is impressive and is firmly positioned in an expansion phase. This situation is set to continue for some time as the downward movement in interest rates is well underway. All the more so since this strengthens the confidence of households and investors in a market where the sustained increase in property prices seems unwavering,” notes Charles Brant, QPAREB market analysis director.

However, Brant cautions that rising home prices, driven by limited inventory, could offset the benefits of falling interest rates, and affordability concerns are growing as the unemployment rate edges upward.

Montreal: Market recovery driven by rate cuts

Residential sales in Montreal totalled 2,991 in August, a 9.0 per cent increase from the same period last year. Brant attributes this growth to the Bank of Canada’s three consecutive rate cuts, which have given households more purchasing power despite the moderate rise in home prices.

Source: QPAREB

“The strength of the Montreal resale market contrasts with the decline posted by many other Canadian metropolises struggling with a much higher level of household debt, lower savings and diminishing purchasing power. All these factors limit transactional activity and contribute to more instability for mortgage renewals,” he adds.

“Montreal, unlike these markets, is benefiting and will benefit even more from the downward trend in interest rates. Buyers have more maneuvering room since household income tends to be similar to that of other major Canadian cities yet home prices remain almost half as high.”

Market highlights

Quebec City saw single-family home sales jump by 13 per cent, with a median price increase of 9.0 per cent, reaching $390,000. Condominium sales rose 7.0 per cent, with a 22 per cent median price increase to $279,500.

In Montreal, single-family homes saw a 9.0 per cent increase in sales, with the median price rising by 5.0 per cent to $590,000. Condominiums led the sales increase with an 11 per cent jump, reaching a median price of $407,100.

Active listings in Montreal grew by 18 per cent, while Quebec City saw a 13 per cent decline, reflecting low inventory in Quebec City and increasing supply in Montreal.

Get more details, including by province and city.

Garry Bhaura, vice chair of the Canadian Real Estate Association (CREA) and broker of record at Re/Max President Realty, celebrated his 50th birthday through environmental stewardship with the planting of 50 trees at the Claireville Conservation Area in Brampton.

The September 6 event, organized in collaboration with the Toronto and Region Conservation Authority (TRCA) and the City of Brampton, aimed to combat climate change and promote a greener future.

The trees planted will enhance local biodiversity, provide essential green space and help mitigate the effects of climate change by sequestering carbon and improving air quality.

Significant for both the community and the real estate industry

The initiative was significant for both the community and the real estate industry. It attracted Bhaura’s friends, family, colleagues and community members — all committed to supporting environmental sustainability. 

Attendees included Brampton Mayor Patrick Brown, City Councillors Rod Power and Rowena Santos, Regional Councillor Gurpratap Toor, Member of Provincial Parliament Hardeep Grewal, Don Kottick, president of Sotheby’s International Canada, Larry Cirqua, CREA past chair, Winson Chan, Tridel VP of sales and CREA director, along with members of the Re/Max President Realty team. 

Reflecting on the event, Bhaura states, “Planting a tree is planting hope for a greener, more sustainable future. Each tree represents our commitment to nurturing the planet. Together, we are shaping a healthier environment for generations to come.

I’m deeply thankful to the Toronto and Region Conservation Authority, the City of Brampton and everyone who joined us in this meaningful endeavour.”

Since moving his well-established real estate brand from Re/Max to eXp Realty last fall, Calgary realtor Justin Havre has been an ambassador for the relatively new, independent company trying to upend the status quo across North America.

At the time, Havre had a team consisting of 60 agents and 18 staff. 

New model, different fit

Havre’s team has been very successful, selling almost 9,000 homes in Calgary since 2016. For five consecutive years, they were named Re/Max’s #1 Large Team in Canada in Closed Transactions. They left Re/Max First with $4 billion in sales volume in Calgary and surrounding areas.

Today, his team at eXp, the Justin Havre Real Estate Team, has 90 agents. 

In Canada, eXp continues to grow with the recent addition of Toronto’s Polsinello Team, which Havre helped recruit to the brand. With 25 agents, last year they achieved 218 closed transactions totaling $213 million in volume.

“Finding a brokerage that offered more in terms of commissions and benefits was our top priority and eXp Realty fit the bill perfectly,” says founder and team lead Frank Polsinello in a news release. “We are very conscious of what’s best for our agents. The idea of a retirement fund and revenue share made a huge difference in our decision.” 

Likewise, Havre notes that other teams choose to partner with eXp because they see the business model is for them and their agents who go on to become partners.

Future plans: ‘The sky’s the limit’

Havre explains his future plans are to continue to impact the people he chooses to partner with. 

Goals for the Justin Havre Real Estate Team also include creating a great client experience and delivering results that both buyers and sellers are seeking in the marketplace while continuing to evolve and adapt to the constantly changing real estate environment, “whether that comes with utilizing technologies, different brokerage models and/or marketing tools to ensure that we are top of mind in the marketplace but at the same time creating the (right) client experience.”

Havre’s mission is to provide the tools, resources and development for all agents so they have what they need to navigate the ever-changing real estate landscape.

“One thing we do quite well is training and developing our agents, whether they’re experienced or new to the industry,” he explains. “I’ll continue to grow as long as we find the right people. I’m never going to say no to aligning myself with people who have the skills, the talent and the ambition to grow a successful real estate business. How many agents is that going to be? The sky’s the limit, really.”

Super or ‘mega’ teams with 200+ agents to come

Havre thinks the industry will see the formation of super, or mega, teams in the future with 200 to 300 agents.

“I do believe that a lot of brokerages are recognizing it’s incredibly challenging to run a profitable business but at the same time provide all the tools and resources to support their agents,” he points out.

“Because the margins are so small and tight in that brokerage model, this is where the so-called ‘disruptors’ like eXp come into play, (to) actually provide better support, better tools, better technologies and resources that will help agents’ businesses for a lot less.”

Another benefit he cites is the fact that all agents partnered with eXp have ownership in the company.

Havre could have gone the route of creating a brokerage, but he says eXp made more sense for being able to grow his business and attract people to a model.

‘It‘s a business that’s here to stay. It’s a business that more and more agents are looking to’

Being a large independent real estate company with more than 87,000 agents in over 20 countries, eXp continues to scale internationally. It gives realtors the unique opportunity to earn equity awards for production goals and contributions to overall company growth.

“There are a lot of misconceptions, a lot of fear-mongering from the traditional brokerages, which is unfortunate. I may have been one of those people myself because I wasn’t informed,” Havre admits.

He feels that as more people get educated and begin to understand this model — a model that he stresses isn’t going anywhere — one of the things he’ll look at is publicly traded companies.

“I would say that people on Wall Street are pretty smart. And when you can look at a Re/Max with 140,000 agents with a market cap of around $250 million compared with, for instance, a company like eXp with 87,000 agents having a market cap of nearly $2 billion, that has to say something about what kind of a business model it is.

And it’s not going to be gone tomorrow — it‘s a business that’s here to stay. It’s a business that more and more agents are looking to.”

Havre explains that if people open their eyes to study the model without judgment and once they start to see and understand how it works, “The ‘light bulb moment’ will go off. Part of me moving over also opened many people’s eyes. There must be something to this model.”

Returning to original brokerages for ‘the professionalism of the people, the vibe feeling like family and the services provided’

As with anything else, finding the right brokerage is a personal decision that looks different for every agent and industry professional.

For example, Teri Shaw, a realtor with Royal LePage State Realty in Ancaster, Ontario, moved over to eXp in February 2020 from Royal LePage but returned in December 2020. Shaw has been a realtor for 17 years. She joined Royal LePage State Realty in 2015.

She says the decision to join eXp wasn’t her choice as she had a business partner at the time who was “gung-ho” on the idea.

“I just went with it,” says Shaw, adding that her experience with the brand was “not great.” “But, in fairness, they were new to Ontario. So the professionalism that I was used to from Royal LePage, which is amazing, was not there with eXp.”

Shaw ended her business partnership and stayed with eXp for a couple of months after that. “Then, I needed to go back to somewhere I felt was a better fit for me,” she recalls.

Shaw cites the professionalism of the people she had worked with at Royal LePage and the vibe of the brokerage which felt better suited to her, feeling more like family, as key factors in her decision to return.

“Also, I felt the services provided by the brokerages were more in line with who I was than eXp. I want to sell real estate. I didn’t want to recruit people and it felt like eXp was a recruiting (place). Get more people to join. And that’s not what I wanted to do — it wasn’t for me,” notes Shaw.

“I wanted to talk to a real person, but every time I’d have a question about something I’d call and they’d say you have to go into the ‘eXp world’ and chat with someone there. I didn’t want to do that. I wanted to be able to pick up the phone and call my manager to get my question answered immediately.”

That said, Shaw recognizes they may have improved upon this by now. “I’m not knocking them. There were some quite nice people that worked there and everybody was helpful, but at that time they were not ready for the growth that they were experiencing.”