Consultation on the proposal to turn REALTOR.ca into a for-profit subsidiary of the Canadian Real Estate Association (CREA) has included the most comprehensive due-diligence process in CREA’s history. It’s about keeping REALTORS® at the forefront, looking at how this invaluable tool could be better leveraged to serve members, and addressing changing consumer needs.
The proposed path forward is outlined in REALTOR.ca Forward: the draft business case for REALTOR.ca as a taxable entity.
Understandably, the discussion has sparked curiosity from members.
On this episode of REAL TIME, Janice Myers, CREA CEO, and James Mabey, CREA Chair, answer common questions regarding the draft business case and what the transformation could mean for REALTORS®.
While this article and episode are in English, you can read REALTOR.ca Forward and frequently asked questions in French on CREA’s Member Portal.
The proud history of REALTOR.ca
In 1985, boards and associations came together to create one convenient, trusted place for consumers and REALTORS® to access listings: MLS.ca. According to Myers, the strategic foresight of those boards and associations is a world-class example of collaboration.
Fast forward to today, REALTOR.ca is the No. 1 real estate platform in Canada*.
Where we’re at
The Internet has come a long way in recent years. This proposed transition is about having the same strategic foresight to keep REALTOR.ca No. 1 among buyers, sellers, and renters in Canada.
“REALTOR.ca really does exist to connect consumers with REALTORS® and it’s all about anticipating those needs and filling that gap,” says Myers.
Mabey continues, “There’s been incredible innovation to try and keep up with consumers’ demands of the site and of course that is a very expensive process to go through. Faced with what’s coming now with artificial intelligence, that’s going to reshape the way consumers search the Internet.”
REALTOR.ca is at a crossroads and CREA has a duty to protect the future of this powerhouse brand.
“CREA’s going to innovate on your behalf and make sure your primary business asset is protected and maintained and grows.” – Janice Myers
Why a taxable entity?
One of the main questions we’ve been hearing during this consultation is: why?
“There is significant risk to CREA by pursuing different types of revenue,” explains Mabey. “It’s the source and type of revenue that really generates risk to our not-for-profit tax status. It’s not about whether this new entity is profitable or not, it’s about the revenues that are generated that create this risk, and so that’s why the vehicle that’s being proposed here is a taxable entity and that’s really to mitigate that risk for the CREA moving forward.”
As a subsidiary, REALTOR.ca would be free to generate new sources of revenue that could then be reinvested back into the platform to fund improvements, helping it compete in an increasingly challenging market.
Where do REALTORS® fit in?
Through the proposed governance structure of the new entity, REALTOR® priorities would continue to be protected. REALTOR.ca’s mission of being an indispensable business resource and tangible benefit for REALTORS® wouldn’t change.
Mabey, who is a REALTOR® member himself, emphasized, “[With this proposed transition], I’m really looking forward to three things:
- That I continue to get absolutely amazing value for my membership dues ($310/year to CREA), because of course we’ll have diversity of revenue streams that will help to maintain the funding of REALTOR.ca without compromising what I’m also getting for the rest of my CREA products and services.
- Maintaining market share so I don’t have to invest in other platforms or tools to reach consumers with the listing content that I want to push through from my MLS® System.
- A better user experience for both REALTORS® and consumers.”
To hear the full conversation, including additional details about the draft business case, listen to REAL TIME episode 53 at CREA.ca/podcast or wherever you find your podcasts.
*Based on market share. Market share = web and mobile traffic to Canadian real estate websites on average per month, ComScore, 2023
