The Canadian Real Estate Association (CREA) has been conducting extensive consultations with the REALTOR® community on the proposal to turn REALTOR.ca into a for-profit subsidiary of CREA.
Today, Patrick Pichette, Vice-President of REALTOR.ca, is answering five commonly-asked questions. If you prefer to read the answers, see below.
Why is CREA proposing to turn REALTOR.ca into a separate, wholly owned subsidiary?
REALTOR.ca is a pillar of Canada’s real estate market. It’s helped millions of Canadians find housing in every corner of our vast and beautiful country. But looking to the future, REALTOR.ca is facing challenges.
We’re in a much more competitive tech landscape and how Canadians search for real estate online has evolved, and so have their expectations.
CREA is proposing to turn REALTOR.ca into a wholly owned subsidiary to help the platform generate new sources of revenue. This will give us the ability to do things like invest in new features and attract top talent to keep pace with today’s tech landscape.
Is REALTOR.ca for sale?
Absolutely not. REALTOR.ca is staying 100% owned by CREA, with no shares being sold, leveraged, or licensed. Members built and own REALTOR.ca and that is not changing under the proposed path ahead.
How will REALTOR® priorities be protected?
CREA is taking steps to ensure REALTORS ® would maintain ownership and that all net income would be reinvested back into REALTOR.ca. CREA would also have several levers it can use to exercise oversight and control over the new subsidiary to ensure it promotes the best interests of members.
Will this impact member dues?
One of the main reasons CREA is proposing to create a subsidiary is to help the platform become more self-sustainable and rely less on member dues. This starts with the ability for the subsidiary to pursue new revenue opportunities.
These five opportunities are projected to generate significant revenue that will help us reduce the percentage of member dues allocated to REALTOR.ca and, in the long term, help us work toward self-sustainability.
By reducing REALTOR.ca’s dependence on dues, CREA will be able to invest more in the things that deliver value to members like federal government advocacy, promoting REALTOR® value, and increasing professionalism.
How is this change going to impact me and my business?
In the short term, REALTOR.ca will continue to operate as it does now, delivering leads to members and providing unparalleled access to listings for Canadians.
As the new entity takes form and starts to execute its business plan, you can expect improved lead quality, AI integration, modernized user experience, immersive augmented reality tools, and more.
By ensuring a sustainable, innovative future for REALTOR.ca, we’ll be in a better position to invest in the tools and features that empower REALTORS® to focus on what they do best: building relationships and helping Canadians.
Where can I find further information?
The proposed path forward is outlined in REALTOR.ca Forward: the draft business case for REALTOR.ca as a taxable entity, which is accessible via CREA’s member portal.
Interested in learning more about this topic? Janice Myers, CREA CEO, and James Mabey, CREA Chair, recently joined the REAL TIME podcast to further discuss the draft business case for REALTOR.ca.
