Market in Other Provinces: Our ExperienceJuly 16, 2022
As you all know that 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 Ontario market especially 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 excessive no of Realtors so the success rate of Realtors is 10% and we lack right platforms to perform.
Recently in 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 of our model in these territories. We will share my observations and understanding with you which We have learned so far. There is still a lot for me to learn and We will keep sharing with you as we move further.
We have been to Edmonton, Calgary, Vancouver, Surrey and many other small cities in Alberta and BC. met with many Realtors (New and Experienced), builders, bank professionals, mortgage brokers and buyers and sellers. It was very interesting to know their opinions and experiences to understand the dynamics here. We still feel it’s too early to conclude but would be a good idea to share what we learned so far.
Let’s talk about the market in general here. It seems like in Alberta, it’s a bit soft market and showed downward trend in recent past but now going in a recovery mode where as in Vancouver side the market is much better after a Zigzag movement of upward and downward movements. But both markets have an immense potential for Real Estate business and has some unique characteristics which makes these market very lucrative.
Based on our discussion with various professionals, these markets have something different which is not too prominent in Ontario so far. Here there are lot many small builders who build custom houses and small projects. It is unlike Ontario where majority construction is ruled by Big Boys Club. These small builders make the meekest very unique and competitive.
When it comes to Realtors and Brokerage business, here in both provinces the commission system works bit differently in both the provinces. But when it comes to Realtors and Brokerage, it’s the same challenges as of Ontario. Here also Realtors success formula is 90/10 that 90% of business is done by 10% Realtors and there is a lack of training and support system. There is a big vacuum for the right platform and talented Realtors are not able to perform in absence of 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 got some personal issues as his parents fall sick and he has to take care of them. It took him totally out of business and now he has to start his career again. This made us think that how much is the need of a system here which works for you in your absence and it helped us to make a firm decision about 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 so that it can support you in case you any adverse situation then you are the perfect fit for our system.
We feel there is so much requirement of a structured model which provides the active mentorship, can share or offload Realtor’s expenses for day to day business operations, create a passive income and can have a defined career path. In our humble opinion Real Estate industry in general lack a structured approach and need to have some discipline to make people more successful.