Is RECO responsible for the housing crisis in Canada?
Could the Real Estate Council of Ontario may be helping drive housing prices up? You decide.....
STEP RIGHT UP FOLKS! EVERYONE’S A WINNER!
I know, RECO is “Ontario” but Ontario is the hub of real estate in Canada so it’s not unreasonable to consider that they are at the epicentre of the housing price wars which ripples out over the rest of Canada while other Real Estate boards follow suit.
Canadian real estate has become a Carnival like sideshow/freak-show / guessing game. One of illusion, smoke, mirrors, lies and deceit.
RECO, the Real Estate Council of Ontario (Canada) is in charge of the licensing of real estate agents and regulator of real estate trading in the province;
“We enforce the Trust in Real Estate Services Act, 2002 (TRESA) on behalf of the Ontario government and make every effort to protect the public interest and enhance consumer confidence.”
Really!???
Tell me MORE about how you “make every effort to protect the public interest and enhance consumer confidence!”….
So I wrote to RECO as a Concerned Citizen because, well what else are they paid for? They claim they protect the public… Here’s how it went….
Concerned Citizen
The common "practice" in the real estate world today is to put a low price on a property to entice buyers into a "bidding war". A “bidding war” is nothing more than an auction. Gambling belongs in a casino!
NO other industry does this, except maybe an auction. Is that what we've become? An auction house? Because there are lots of other ways to sell real estate. Auctioneers don't have to be licensed to sell houses. Is that the way you want it to go?
If a car was $100,000.00 and they advertised it for $10,000.00 that would be false advertising.
If a loaf of bread was $3.99 but when you went to buy it, they said "that's just the asking price" that would be false and misleading advertising.
Even in auctions they put a min price that the item would sell for. Agents today advertise houses for obviously much less than it will sell for. This is a blatant disregard for both buyers and sellers and frankly a waste of everyone's time. These are childish games.
Say what you want for the property and the seller must be obligated to sell for the listed price! (unless they agree to a lesser price)
RECO supposedly prides itself on keeping the real estate practice ethical and straight. I've heard that if an agent says "everyone charges 6% commission" this would be "price fixing" and not permitted under RECO.
However all the gas stations charge $1.65 for a litre of gas and when the price goes up, they ALL follow suit. How is this not price fixing?
How can all the grocery stores charge $3.99 for a loaf or bread and this not be price fixing?
Let's stop the childish charade games and get reality or I predict the real estate industry will fall to one of an auction house, totally unregulated like the Wild West, least not by "RECO"
RECO
Good afternoon,
Thank you for sharing your experience and thoughts on the real estate sector in Ontario.
As the regulator of real estate trading in the province, we enforce the Trust in Real Estate Services Act, 2002 (TRESA) on behalf of the Ontario government and make every effort to protect the public interest and enhance consumer confidence. All real estate professionals in Ontario must comply with TRESA, which contains a code of ethics. RECO addresses inquiries, concerns, and complaints about the conduct of brokers, salespersons and brokerages and takes appropriate action to protect the public.
Strong family resemblance or am I just imagining things?
The set listing price of a property is the decision of the seller, and TRESA has no provisions with respect to the values of properties, commission amounts, or the conduct of a seller.
[ to me this is shifting the blame. What are these people here for? ]
A buyer may submit an offer at any price they wish, and the seller can then accept the offer, decline it, or counter it. Ultimately, market forces determine what a home is worth by what a buyer is willing to pay, and a seller is willing to accept, and these choices are influenced by supply and demand among other factors.
RECO is continuously working with the government to enhance consumer protection in Ontario’s real estate market, and we are closely monitoring the current market conditions and activity. We welcome feedback from both real estate professionals and buyers and sellers alike, so thank you again for sharing your thoughts with us.
Concerned Citizen
Well I guess all the grocery stores should put fictitious prices on food now too because some might want to pay more for a loaf of bread than others right? The market should bear the cost of food right?
YOU people "Trust in real estate" are the ones making housing unattainable by this generation. Congratulations but hey, at least you are politically correct in allowing the sellers* ….. *and it's NOT the sellers! It's your agents who are accepting of the idea and coach the sellers; "just put a low price to entice a bidding war!"
This practice must stop. Must be made illegal as it is false advertising!
How is it that your can charge agents for saying things like "lake view" when the lake is 15 miles away but you can still see it or other false or misleading advertising BUT we can put a price of 599k on a house that they're not willing to sell unless they get 1m!!???? How is that ok?
Maybe all the car dealerships should advertise their cars for 1.00 because some can pay more than others for cars! Great idea! Might get more cars off the roads when even low end cars become unaffordable just like houses! Brilliant! Of course those people might not be able to do things like WORK to contribute to society or rush to the hospital if needed or take their kids to school or pick up groceries but hey, we kept out the tire kickers right?
You should be ashamed of yourselves calling yourselves "real estate COUNCIL of Ontario" and TRUST in Real Estate Services Act, 2002 (TRESA)
It's a farce but keep doing what you're doing!
In fact this charade only exists in one area of real estate, housing! For instance you don't see commercial spaces listed for lease for 1.00 then expect people to "bid" on what they are willing to pay monthly yet you find it acceptable to list houses at fictitious prices.
In retail your practice is known as BAIT and SWITCH where they advertise a product for a low price, then when you get there, "ok so sarry! That product is sold out but we have these ones here (at double the price) If this is not illegal it's at very least unethical. I thought "Trust in Real Estate" was also concerned with ethics as well as legalities??
It's too late for me. I'm in my "end game home" not planning to move anymore but I'm worried about the younger generation, how are they supposed to own a home.
Bidding and gambling belongs in a casino where you KNOW you are there playing odds. I thought real estate was a solid industry. I guess not anymore.
I get images of sideshow charlatans and snake oil salesmen taking people's hard earned dollars based on lies and deceit.
At very least you need to change your name to Ontario Real Estate Auctions. At least the public would then know what they're getting into.
Conclusions and thoughts
RECO shifts the blame to the seller, thereby absolving themselves from any wrongdoing
this leaves the industry unregulated and promotes an auction like atmosphere driving prices up
if an auction has a minimum bid, then the seller is obligated to sell it once it goes over that price however the real estate seller is NOT obligated to sell even though they listed at a certain price!
real estate is supposed to be highly regulated and “policed” as the RECO notes above however it seems they are less regulated than an Auction where the seller is contracted to sell if the price goes over a predetermined amount!
No other industry can list for a price, then not sell! What the hell kind of game is this!?
but RECO takes NO RESPONSIBILITY for this!? But they are the first ones to pull licences and fine agents for statements like “Everyone charges 5% commission” and “lake view” when the lake is 15 miles away but you can still see it or if an agent doesn’t pay their bill on time, they are the first to pull the agents licence! RECO claims they are protecting the public. How is fining their agents for unpaid bills protecting the public? Sounds like they are just in a good position to rake money from the industry to me.
and the offset to all this is ultimately higher real estate prices making housing out of reach for most Canadians.
Maybe this is part of their plan like Klaus Schwab ordered “You will own nothing and be happy”
Join our telegram group.
Subscribe to this newsletter