Six things you need to know about the upcoming move to a new WEBForms

The Canadian Real Estate Association (CREA) will introduce a new WEBForms platform for you to use starting July 31.

CREA manages WEBForms for REALTORS® across Canada. They selected Lone Wolf Technologies, a company with almost 30 years of experience with residential real estate technology, to provide the redesigned platform.

Key date: The version of WEBForms that you currently use will no longer be available to you on January 1, 2020.

“The new WEBForms will have a different look, feel, and workflow than you’re used to. Please take the time over the next few months to use the training resources available and to take the recommended actions necessary to ensure you have a smooth transition between systems,” says Brad Scott, Board CEO. “While this is a CREA-run project, we know how important the WEBForms service is to you and we’re focused on getting you the information and advice you need to make this change a success.”

To help you with this change, here are six actions you can take before the end of the year:

1. Re-insert your contract clauses into your templates in the new WEBForms

On July 31, CREA will perform a one-time transfer of your contract templates and clauses from the old WEBForms to the new platform.  

They’ll be transferred over separately so you’ll have to re-insert your custom clauses into your contract templates in the new platform.

2. Choose what old contracts, or kits, you want to manually transfer to the new WEBForms

If you store old contracts and other paperwork from completed deals (sometimes referred to as transaction kits) in the current WEBForms, CREA won’t transfer those over to the new platform. CREA tells us that there are over one million kits in the current version of WEBForms and automatically transferring all of these files isn’t manageable.

You’ll be able to manually transfer your kits to the new platform, one at a time, as PDF files until December 31. We’ve encouraged CREA to create a process for members to more easily export and save their completed contracts, or kits, in large volumes. We’ll let you know when we hear more about this. In the meantime, we encourage you to review the contracts you store in WEBForms and save or print them so you have copies outside of WEBForms.

We also recommend that you begin using the new WEBForms, after July 31, for any new deals you’re working on. This will ensure you have a record of your current transactions on the new platform.

We’ll provide more instructions on this topic after the new platform is available to you on July 31.

3. Use the new WEBForms to create any new templates or clauses after July 31

While you’ll be able to use the existing version of WEBForms to complete transactions until the end of this year, after July 31 you’ll need to use the new version of WEBForms to create any new templates or clauses.

4. Get familiar with the new look and feel

The new WEBForms is laid out differently than you’re accustomed to using. For example, the left half of the screen features a dashboard with windows for forms and kits. Workflows for creating templates and kits and adding forms and clauses will also be different.

Invest the time to understand the new workflow before the existing version of WEBForms is no longer available to you on January 1.

5. Take advantage of the available resources

To help you learn how to use the new platform, CREA has developed this resource page where you can  find videos, guides, and other resources. Take the time to use these resources to get comfortable with  the new WEBForms as soon as possible.

6. Stay tuned for more info and training opportunities

We’re working to develop our own educational resources to help you make the transition to the new WEBForms. We’ll share more in the coming weeks.

Questions? Contact our Help Desk at 604-730-3020.

REBGV President Ashley Smith provides a quick update on the key issues you need to be aware of heading into the second half of the year.

ICYMI: A “no cash” policy will send the right signal

Your Board of Directors will vote on a regulation in September to prohibit members from accepting cash in a transaction.

This prohibition would take effect in the fall. Click here to read the proposed regulation.

This change would allow us to follow through on one of the recommendations we made with industry partners this spring to help safeguard the real estate sector from money laundering.

In April, we worked with the BC Real Estate Association, the Appraisal Institute of Canada – BC Association, BC Notaries Association, and the Canadian Mortgage Brokers Association – British Columbia to submit recommendations to the provincial and federal governments on how to strengthen anti-money laundering measures in our province.

This was a proactive move ahead of the provincial government releasing two reports dealing with money laundering in real estate. Click here to read our recommendations.

I know there’s frustration about how the public conversation about money laundering and real estate has gone. We know that REALTORS® by and large don’t handle cash and that media coverage has too often distorted Realtors’ role in a transaction.

We must, however, recognize that public concern about this issue is real. Through our actions, we have an opportunity to demonstrate Realtors’ commitment to helping solve societal problems and building healthier and stronger communities.

Theodore Roosevelt said, “No one cares how much you know, until they know how much you care.”

We all care about the communities we serve, and we share a desire to make real estate a more professional calling. This can’t be done with one or two sweeping initiatives. It’ll be an accumulation of actions over time. It’s about finding opportunities, large and small, to nurture a culture of professionalism.

To help in this pursuit, we’re hosting a professionalism symposium in the fall with a group of between 50 and 75 Realtors who are in the first half of their careers. This group will take a holistic view of our profession and explore what measures are necessary to raise the bar of professionalism long term.

Culture shifts don’t happen overnight. In our Board’s 100^th year in business, we want to set the course for the next generation.

With your support, we want to build a legacy of professionalism today that guides our profession into the future.

The move to a no cash policy will be an important, small step in the right direction.

If you have thoughts or feedback on this proposed change, write me at president@rebgv.org.

Keeping the Competition Act in mind

As a REALTOR®, you’re always searching for innovative ways to distinguish yourself from your competition. In this search, however, it’s important to always keep the Competition Act in mind.

The Competition Act is federal legislation designed to promote fair competition in the marketplace. It applies to practically all business sectors. Violating the act can result in severe penalties, including fines and jail time.

The relevant provisions of the Competition Act for Realtors can be simplified to three basic rules:

1. Don’t collude. Make independent business decisions without discussion or consultation with competitors.
2. Don’t discriminate against or refuse to do business with competitors or other persons because of their pricing policies.
3. Don’t mislead the public in your advertising.

If you’re not familiar with the basic rules of the Competition Act, you could find yourself in violation of the law. Comments made in casual conversation may seem harmless, but could contravene the legislation.

To learn more, visit the Canadian Real Estate Association’s (CREA’s) Competition Compliance Centre and review its Real Estate Competition Guide. You should also review our Misleading Advertising Guide.

The Competition Compliance Centre features four videos that cover key competition issues for Realtors.

The Real Estate Competition Guide warns about “loose language,” defined as any conversation or phrase that can be interpreted as anticompetitive by nature.

Investigations can be time-consuming and expensive. For this reason alone, you should ensure you comply with the Competition Act by avoiding conduct that creates the appearance of illegal activity as much as conduct that's actually illegal.

In interactions with clients and brokers, Realtors should explain and justify their pricing and other business policies in terms of the value their office provides. Promote your firm’s track record, detail your marketing or negotiating expertise, explain the functions and the value of the services you performed, and outline your qualifications.

Remember: use the language of competition and take the time to review the Competition Act.

The Ethics Guy®: Ten thousand sales not made

My recent column, “Changing Gears,” focused on prospecting with the goal of signing up more listings. When you’re working on the seller’s side, there are things you can do to make a property more attractive than the competition. But, that’s only half of the story. What about dealing with buyers?

Many members work primarily with buyers, and that’s great if there are buyers to be had. Who doesn’t want to buy real estate in this town?

When you were new to the business you probably worked with buyers the most. At some point you learned to start working with buyers who also had something to sell. Then, after that, you discovered that working with sellers instead of buyers was often easier and more productive because all the buyers and their REALTORS® then had to come to you and your listings (much preferable to driving all over Metro Vancouver with a buyer).

Right now, it seems there aren’t a lot of motivated buyers who have the means to buy a place. Current market conditions have resulted in many of our 14,000 members having difficulty finding those buyers.

Here’s a question: How many REBGV members haven’t made a sale by early June? If you guessed 10,000, you’d be right.

In more “normal” years, for example, 2014-2017, about 4,000 members didn’t take a listing or make a sale during the year. While those years were anything but normal, as Realtors from places other than Metro Vancouver would be glad to tell you, there are always members who, for whatever reason, don’t take a listing or make a sale during the year. Some are new and just figuring things out, and others may be semi-retired or part-time. Still others may be managing brokers, property managers, or others who are not in the day-to-day hurly-burly of residential real estate sales. But even taking all that into account, 10,000 members not making a single sale in nearly six months is a startling statistic.

I’m not much of a fortune-teller – I haven’t the foggiest idea when the market will start rebounding and change back again. Even under the current conditions, I’m sure there are still many serious real estate buyers in Metro Vancouver. But the federal government’s stress test isn’t helping—that’s the requirement for buyers to qualify for a mortgage at the rate they’ve negotiated with their financial institution plus two per cent or the Bank of Canada’s posted five-year rate, whichever is higher. That’s a serious barrier for some, and along with all the new taxes, a “market fatigue” is taking a toll.

On the seller side, there are many ways to make your seller’s property a more attractive to buy than the competition. But what about buyers who are sitting on the fence?

Where do you find the ones with the motivation and the ability to buy right now? Buyers who don’t have the means to buy face limited choices. They’re likely hoping for further price drops, an inheritance, or a lottery win. That doesn’t give you much of a career plan as a buyer’s agent.

What can you do?

You could get creative, suggesting they consider alternatives like co-buying with partners, looking at rental properties in which they can occupy a suite while using the revenue to help finance their giant mortgage, buying in a less expensive location, or considering lower-price options. But you’ve probably already done all that, and perhaps you’ve also said goodbye to some of your buyers who won’t face reality.

After all that, have you exhausted your options?

If you still want to work with buyers, consider looking for those who have the means, but not the motivation, to buy right now. This usually happens when buyers are trying to time the market, waiting to buy just before the market heads back up. Some will succeed, but it’s rare that a buyer manages to perfectly time a buy at the market’s bottom.

A more realistic strategy is buying on the downward slope when the market has been heading south for a while. Buying when others aren’t means there’s little competition and sellers are more pliable. A slower market allows buyers to take their time, looking at a basket of properties, not just the one that’s available for the next 15 minutes. It also gives them time to do their due diligence by examining the market and getting a property inspected. In summary, a buyer in today’s market has the upper hand, which is something they’ve not had in nearly a decade.

But if they’re still on the sidelines waiting for that perfect time to buy, why?

Not making a decision is easier than stressing up to make an offer. Waiting for the perfect time to make that offer is a convenient way of putting off the decision. The risk is when buyers start wanting to buy again, they rarely do so alone. Then, sellers have the upper hand and buyers suffer the misery of multiple offers, sale prices over-ask, and the like.

The goal for you is to find those buyers who are sitting on the sidelines and light a fire of motivation under them. Start by going through your contacts or current buyers’ list, and then remind them that buying when many others aren’t is a time-proven strategy. That’s true in the stock market, and it’s true in the real estate market. Buying a good product at a discount from the market high, and allowing some time to pass, rarely turns out to be a bad decision. Frenzied buying in a hot market is far riskier, and perhaps your buyers have forgotten this and need reminding.

Here are some statistics that may help you convince your potential buyers:

• Buyers who bought at the very top of the market in 1981 didn’t recover the value they paid for six or seven years. But after that, those “lousy buys” looked like genius. You can see the numbers on the last page of REBGV Stats Package, which shows that the average detached sale price at year-end 1980 was just under $200,000. By 1982, the average dropped to about $100,000. But by 1988, even accounting for the outrageous 18 per cent to 20 per cent mortgage interest rates buyers would’ve been saddled with for some of those years, the prices had recovered, and by 1995 that $200,000 home had nearly doubled in value. If the buyers had held onto it for longer, say until 2005, it was worth $600,000. Since then, the market has continued to climb overall, with just a few dips. Who looks like a genius now?
• In 1990, there was a market peak followed by a drop, and prices didn’t recover until late 1992. In 1995, there was another peak, then a drop, with recovery not until 2003. In 2008, there was another peak, followed by a sharp drop not recovered until 2010. The market has fluctuated upward since then until, of course, the 2017 market peak followed by a drop to average sale price levels not seen since 2015.

These numbers should convince your fence-sitting buyers that if they make a savvy buy now, their deal is going to look pretty darned good later on, given enough time.

If the statistics don’t work, you could also consider calling your sellers to remind them of the old real estate adage “buy up in a down market.” If your seller wants to move to a 50-foot lot from a 33-foot lot, for example, remind them that the price gap narrows in a falling market. While the percentage drop may be the same, the more expensive property will drop more in real dollars, closing the gap. Two years ago buying up to a bigger property would have cost way more in real dollars. Now it doesn’t, so if you have sellers sitting on a nice small property who’ve told you they want to move up sometime, now’s the time to call them.

In short, your buyers may need a reminder that buying when others aren’t can pay big dividends if the property is bought for the right reasons and the buyer is prepared to hold onto it for at least one market cycle. Everyone needs a place to live. Even if the price continues to drop for a while after the buy, if they don’t sell it they haven’t actually lost money. Sharing these statistics and economic realities might get your moneyed buyers off the fence and get you some active clients.

Housing affordability, spec tax form, pay rent with apps, and growth in Maple Ridge and Pitt Meadows

Recommendations to make home ownership more affordable

Each year, BC MLAs tour the province hearing recommendations on how to spend the coming BC Budget. Here’s our recommendations on what the government can do to make market housing more affordable.

Read more.

Why your clients need to fill out the spec tax declaration form

If they don’t, they’ll receive a tax notice charging them the maximum rate.

Read more.

Flexible options for tenants to pay rent

There are many ways to pay rent, from direct deposit to e-transfer to apps and cheques. If landlords and tenants spell it out in a tenancy agreement, it’s legal.

Read more.

Maple Ridge and Pitt Meadows municipal update

The population in both Maple Ridge and Pitt Meadows is growing and aging, and both municipalities are preparing. More than 100 REALTORS® learned where development is planned and what it will look like at a recent municipal update.

Read more.

Commercial First is a powerful advertising tool for commercial REALTORS®

Commercial First is a listing platform we’ve designed to fit the needs of commercial REALTORS®. You can both promote and search commercial real estate listings on the site.

Use Commercial First to find commercial listings that subscribers list exclusively on the site. Clients and Realtors can also post a need on the site, alerting subscribers with matching preferences and connecting potential buyers to sellers.

The data is user-generated, which allows for more flexibility than the traditional MLS® and lets commercial Realtors retain control over their commercial real estate data.

The platform also contains analytics, automation, and communication tools to improve efficiency. Reports and analytics can be automated and paired with the built-in email system to keep you and your clients informed. The social media integration feature allows you to easily market your listings to a wider clientele.

Click here to learn more about Commercial First. When you’re ready to check out the system, the first month is on us. Register here.