As you all know, I have more than a decade career in Real Estate in Ontario and have closely watched the market. We have learned many things and shared many experiences based on my knowledge of the Ontario market, especially the GTA. We used to think a lot about the market dynamics in other provinces, Realtors’ working style, their challenges, success rate, business techniques, basic requirements and above all, the success rate of Realtors. We used to think that Ontario has an excessive no of Realtors, so the success rate of Realtors is 10%, and we lack the right platforms to perform.
Recently in the last few weeks, We got an opportunity to visit Alberta and BC for our business plan. Before we do something, We wanted to understand the basic market here, Do a SWOT analysis and conclude the need for our model in these territories. We will share my observations and understanding of what We have learned. There is still a lot for me to know, and We will keep sharing with you as we progress.
We have been to Edmonton, Calgary, Vancouver, Surrey and many other small cities in Alberta and BC and Met with many Realtors (New and Experienced), builders, bank professionals, mortgage brokers and buyers and sellers. Knowing their opinions and experiences to understand the dynamics here was very interesting. We still feel it’s too early to conclude, but sharing what we have learned would be a good idea.
Let’s talk about the market in general here. It seems like Alberta is a bit soft market and showed a downward trend in the recent past but is now going into a recovery mode. In Vancouver, the market is much better after a Zigzag movement of upward and downward directions. But both markets have immense potential for Real Estate business and some unique characteristics, making these markets very lucrative.
Based on our discussion with various professionals, these markets have something different that is not too prominent in Ontario. Many small builders build custom houses and small projects here, unlike Ontario, where Big Boys Club rules the majority of construction. These small builders make the meekest very unique and competitive.
Regarding Realtors and Brokerage business, here in both provinces, the commission system works a bit differently in both areas. But when it comes to Realtors and Brokerage, it’s the same challenges as Ontario. Here also, Realtor’s success formula is 90/10, that 10% of Realtors do 90% of the business, and there is a lack of training and support system. There is a big vacuum for the right platform, and talented Realtors cannot perform without the right support system.
We will share a Real life example of a Realtor who worked in the industry for almost 20 years with brands like REMAX, Home Life, Sutton and Century 21. After a decade, he had some personal issues as his parents fell sick, and he had to take care of them. It took him out of business, and he had to start his career again. This made us think about the need for a system that works for you in your absence and helps us decide on the requirement of our business model in this landscape. Did you ever think what will happen to your business in your absence? I am sure you have the answer. If you want to have some passive income to support you in any adverse situation, then you are the perfect fit for our system.
We feel there are many requirements for a structured model that provides active mentorship, can share or offload Realtor’s expenses for daily business operations, create a passive income and have a defined career path. In our humble opinion, the Real Estate industry lacks a structured approach and needs some discipline to make people more successful.