The authorities in Manitoba, Canada have today announced a review of the role in which real estate agents play in the buying and selling properties. It is unclear exactly what has brought about this headline grabbing move but it seems that the general public will have a significant input into this review which could prompt far reaching changes to the way in which homes and condors are bought and sold in Canada.
The Canadian public is being asked for its opinion on estate agent fees, possible confusion as to who estate agents are working for, the issue of bidding up prices and the duty of real estate agents. While this could be a relatively uncomfortable few months for some Canadian real estate agents it could help in the long run by making the industry more transparent and perhaps tweaking a number of common practices.
A reasonable price for a reasonable service
The government has made it clear that it is not looking to apportion any blame to various parties involved in the review, more looking to ensure that the hopes and aspirations of buyers, sellers and real estate agents have a common theme. If you take a step back and look at the situation regarding real estate agent, it is difficult to act for a buyer and a seller without being accused of favouritism in one way or another. In many ways real estate agents do make the market in property in their local vicinity but the fact is that there needs to be supply and demand to keep things fluid.
Quote from PropertyForum.com : “It will come as no surprise to those who follow the worldwide real estate market to learn that Canadian investors seemingly cannot get enough of US commercial real estate.”
Many people have for some time complained about the fees charged by real estate agents and in a way this will give them the perfect opportunity to show what they do for their money. Much of the work which real estate agents do around the world is often carried out behind the scenes and therefore sometimes buyers and sellers do not quite understand what they are paying for.
Will this lead to change?
It seems almost inevitable that after asking for the opinion of the general public, officials from Manitoba, Canada will at some stage introduce changes. These changes may take some time to filter through the system, there will be a period of consultation between the various affected parties but it seems as though the wagon of change has started to roll.
At this moment in time it is not clear exactly what changes we can expect, exactly why the review was introduced or indeed whether it is targeted at specific real estate agents or sub-sectors. The situation will become clearer over the coming weeks and months and it is something which other local authorities within Canada, and indeed governments around the world, may copy.
A full review of the real estate sector in Manitoba, Canada could be uncomfortable for some real estate agents although it could also offer the opportunity for transparency and clarity as to exactly what real estate agents do for their fees. There is no doubt there have been dubious participants in not only the Canadian real estate market but also the worldwide real estate market and if this review can help to clean up the sector then everybody wins.