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Real estate discounters merge
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CBC News-Two companies in Canada's residential real estate market announced a merger Thursday that they promise will create a new network of discount agencies offering lower commission rates.
Moncton-based PropertyGuys.com runs an online network where owners sell their properties themselves. It has 106 locations in more than 600 communities handling thousands of home sales annually.
Realtysellers is a Toronto brokerage firm that offers its services for low commissions or flat fees.
The two said their deal will create one of Canada's largest real estate enterprises. Realtysellers will get access to PropertyGuys.com's customer database while PropertyGuys can offer its clients access to its new partner's discount brokerage services.
The merger came nine months after the federal Competition Bureau signed an agreement with the Canadian Real Estate Association to encourage brokerage firms offering flat-fee services to enter the market.
The deal was reached after months of negotiations between the competition watchdog and CREA, which represents about 100,000 realtors across Canada working with 101 local real estate boards and associations.
Merger is 'game changer'
"Canadians are set against paying billions of dollars annually in high commissions to traditional real estate companies," Realtysellers CEO Lawrence Dale said in a statement.
"This is a real game changer for how the industry will operate from now on and a huge win for consumers," he said.
"This partnership is possible because of recent industry changes that Lawrence pursued for years." PropertyGuys.com CEO Ken LeBlanc said.
"Together we can now satisfy the underserved consumer demand for innovation, change and lower fees. This new union will give our current and future customers access to brokerage services that were previously off limits."
LeBlanc acknowledged the role of the Competition Bureau's intervention that allowed for the introduction of flat fees and "finally eliminate the alleged unlawful anti-competitive practices for good."
Financial terms were not disclosed.
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