Will Canadian Real Estate Face The Same Fate As USA?

Good Morning Team!!!

For those of you who didn’t believe me when I said the winds of change were coming to Canada, it's now happening. We've seen the lawsuit in the U.S. against NAR regarding buyer agents not being paid through the transaction by the seller. And guess what? It’s heading our way.

First off, let me clarify: commissions have never been "fixed" in Canada—just like in the U.S. I’ve never heard a trainer in any brokerage preach standing firm on a higher commission rate without context. It’s always been about offering value.

I’ve been closely following this situation with our American friends over the past two years. What has unfolded there is nothing short of a disaster, and now more than ever, you need to have those critical conversations with your clients. 

Of course there is a brightside, as professionals we get to develop our skills and articulate our value, build stronger relationships with our clients and get more referrals. 

My Predictions: 

1. Most Buyer’s can’t afford to pay their realtor because commission isn’t financeable.
2. Those Buyer’s will be forced to go direct to listing agent
3. Listings Agent’s will make more commission
4. Prices will go up as the agents protect the seller’s interest and buyers are more at the mercy of the sellers.
5. Buyer Agents will be niched out (Commercial, Investment, Farm more of a ‘consultant role”
6. Teams or Super Teams will be even more prevalent. As brokerages make less and less money, Team Leaders will step and offer more value to their realtors.

HOW DO WE WIN OVER OUR CLIENTS? HOW DO WE MAINTAIN OUR VALUE? HOW TO WE STILL HELP OUR BUYER CLIENTS AND GROW OUR REAL ESTATE BUSINESS?

Here’s what we need to focus on:

• Offer customized packages: Show clients what they get for each level of service.
• Articulate Your Value, be the Advisor: Make sure they understand the value you bring to the table.
• Build relationships: Ensure your clients feel like you’ve always had their back.

At the end of the day, what’s coming is inevitable. So sharpen your skills, keep improving, and consistently deliver exceptional value. This industry needs us to step up and defend the role we play in helping people buy and sell their homes.

Think about this: Real estate is one of the only industries where we, the professionals, get paid well for our hard work. Yes, it’s tough, but many agents take it for granted. But comparatively, we have it pretty easy as far as compensation, almost too comfortable for some. We all know how hard we grind to close a deal, and we’ve earned our place. But now, we have to show the world why realtors deserve to be compensated fairly for the value we deliver.

There are places like the UK where salaried realtors exist, and even here, some bigger teams have salaried positions. For some, that’s a model that might work—especially for new realtors or those looking for stability. There are plenty of options to consider, but no matter what happens, we need to be prepared.

So here are the big questions:

• Will teams get bigger, training agents on buyer agreements more aggressively?
• Will this be enough to maintain the value we provide?
• Will we thrive more than ever as a result of these changes?

These are all things to think about. Whatever happens, I’m ready, and I know we can face it together.

Let’s keep raising the bar!