In the past, Ontario’s real estate boards controlled access to MLS. To get MLS access, you had to join the local board with no other options. However, things have changed. Nowadays, most Ontario boards use PropTx, which means MLS services are not restricted by region anymore. The majority of Ontario Realtors are now or will soon be using the same shared MLS platform.
Shared MLS access redefines membership value
This shift has transformed the value proposition of boards. Exclusive MLS access, which used to be the main offering of every board, is now a standard feature across most of the province. Boards now need to offer something more to retain members and compete in the market.
Competition among boards should lead to better pricing, improved services, and tangible value. This competition not only benefits Realtors but also brokerages. In a standardized MLS environment, brokerages can choose boards that align with their cost and service priorities, resulting in cost savings for their agents. This choice gives brokerages a recruitment advantage by aligning with boards that offer the best return on dues.
Power through choice
Competition also empowers individual members. If you are unhappy with your board or feel like your concerns are not being addressed, you now have the freedom to switch boards that better suit your needs. This choice creates a new level of accountability and responsiveness in the real estate industry.
However, the current multi-board structure has its weaknesses. Despite the pressure to compete, many boards are focusing on costly mergers that do not necessarily improve service or value. Only TRREB seems prepared to compete at scale, raising questions about the effectiveness of other boards’ strategies.
Mergers without meaningful results
Mergers and acquisitions should add value, not just increase size. Many boards are merging without clear plans to enhance competitiveness, resulting in larger but still uncompetitive boards. Without measurable improvements, these mergers are simply costly reorganizations that do not meet members’ needs.
The concerns about autonomy and culture also arise in smaller amalgamations. Boards must focus on creating competitive value and preserving unique benefits rather than merging for the sake of consolidation.
The case for a single-board model
In the for-profit world, mergers are strategic and aim to increase efficiency and market reach while preserving unique capabilities. Ontario’s boards could learn from successful acquisition models by focusing on competitive value and preserving unique benefits rather than simply consolidating.
If mergers are not…
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