Perhaps an odd choice of video to open today’s post, but in a weird way, it’s kind of fitting. Those of you unfamiliar with the show “Oz” would gather from that clip a first impression of the show radically different than what the show really was, and are probably wondering why Juno’s dad is singing and dry humping a dude (FWIW, that’s got nothing on what he did to him in the very first episode)… those with only a passing interest or knowledge of it, probably now think it is far more bizarre and perverse than you ever imagined… and those of us who watched the entire series are hopefully laughing your asses off.
Anyway, on to actual news. So the big story this week was the CREA and Competition Bureau deciding to play nice and avoid going to tribunal. We’ve been following this story for almost a year, as it had it’s ups and downs. So, those of you hoping for a Brock Lesnar vs. Cain Velasquez like showdown, ya ain’t gonna get it.
For those curious, I’ve uploaded the actual agreement. Seems that for the most part this entire pissing contest has been over the wording of a few mere sentences. Who knew when semantics crossed with bureaucracy could waste so much money?!?!
Both sides have of course spent the last few days telling the world how they won, or at least didn’t lose. Can’t really give either side the knockout, but I guess I’d have to give it to the Competition Bureau a slim decision on points. Though, time will tell I guess.
Long story short, basically now the MLS will be open those who wish to offer a la carte realtor services. Some argue it always has been, but while that may be true to a point in theory, in practice some regional boards have not. So this order basically declares the CREA and all it’s regional boards must allow such services, and if a boards fails to it can be sanctioned and even suspended from participating in the MLS.
I don’t really think the decision hurts the CREA much, as they had more-or-less been offering this concession already. More than anything, they probably just don’t like all the press this has gotten, and widespread airing that fees and services are largely negotiable. Historically the modus operandi tended to rely on pretty much just herding everyone into the same compensation structure and hoping they don’t dig or ask questions.
Personally, if I was buying I’d look to strike a buyers agency agreement with an agent that would see you pay them by the hour, and that any commissioned offered to the buyers agent by the seller would go straight to me. This removes most of the moral hazard that if rife in the current arrangement.
Of course, most buyers probably wouldn’t go that route, since they think they’re getting the service for free… but most of them probably couldn’t spell amortization, much less explain what it is. Unfortunately our naive and lazy consumer nature is exposed… that’s what they rely on.
So, if you ever decide you’re going to buy, be smart about it. Expect to do some work, know you stuff, and treat it like you’re playing with hundreds of thousands of dollars, cause you are. Many seem to forget that since they’re usually borrowing the vast majority of the funds, but that is your money, and the bank won’t let you forget that… not two months, two years, or two decades from now.
Before I go, just a quick note… I’m doing the final move this weekend, and despite setting it up a month ago, I’m not going to have internet at home until mid-November. So, unless I have an unwitting neighbor with an unsecured wireless network, the site might get a little quiet. Hopefully between the library and flash drives I’ll still be able to throw a few posts up in that time. If you’re looking for something to do, go check out “The Girl Who Kicked the Hornets’ Nest“… though for the uninitiated you’d want to check out the two prequels on DVD first.
