ajaz_eco_204_2012_2013_chapter_16_Market_Power

Com whereas in canada due the canadian real estate

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Unformatted text preview: state properties for rent or sale are assigned a MLS (Multiple Listing Service) number. In the US, MLS numbers can be listed on a large number of websites (for example: Zillow.com, newenglandmoves.com) whereas in Canada, due the Canadian Real Estate Association (CREA) monopoly on MLS numbers, MLS numbers can only be listed on their website www.realtor.ca and if you list a property on the MLS database you must hire a CREA realtor who will earn a commission on your transaction. Because most sellers list properties on the MLS database, most buyers look for properties listed on the MLS data base and end up engaging a CREA realtor. Now, a realtor’s commission is proportional to the transaction price. Speaking of this, on www.realtor.ca you’ll find a wealth of information on a MLS listing such as price, location, number of bedrooms, condo fees, and taxes, etc. but you won’t find prices of recent sales! You have no way of comparing the price with similar properties and/or recent sales of that property. The net result is that most buyers are probably paying too much and partially explains a Toronto’s real estate “bubble”. Incidentally, many websites have recently tr...
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This document was uploaded on 01/19/2014.

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