Lawyers Looking for a Piece of the BC Real Estate Pie

The author is a Richmond BC mortgage broker who has an active interest in bad credit mortgage applications.

Recently in the news…”Two law firms are moving into the online property sales area.  They intend to aggressively go after the $8 billion dollars paid in property commissions annually.”

The change is a result of the CREA loosening access to the MLS system. These sites will charge 1 to 1.5% as a listing fee plus a nominal charge to gain access to the MLS. The fee structure contrasts with the 5% on the first 100K and 2% on the rest. Most realtors will negotiate their fees but what sticks in peoples minds is the big numbers.

The lawyers are counting on the perception of realtor commissions to help drive people to their sites to buy and sell their property. Lawyers have been licking their lips for years in envy of the real estate commissions earned by realtors. The MLS has up until now been the blocker.

With the loosening up of the MLS access, the law firms can now sell the house, do the paperwork and in the process cut out the realtor. Consumers will have access to a lawyer throughout the transaction. Lawyers do private deals on a frequent basis and have the capability to manage the negotiation of the purchase of the property.

What you would lose in this new world is access to experienced realtor’s knowledge of the local area. An experienced realtor will know the pros and cons of specific areas. They can help you locate a property that fits your needs and your wallet.

Certainly, these new services will offer more choice from a price point perspective. The jury is still out on whether the consumer will ultimately benefit.