Markham Real Estate Today with Asif Khan

A new KPMG study shows Canada ranks second-best among 14 key countries for taxation of companies

There's (almost) no place like home when it comes to competitive tax rates. So says a new KPMG study ranking Canada as having the second-lowest tax burden for businesses among 14 major countries.

Only India was ranked as more tax competitive than Canada, and Canada came out on top among the 10 major developed countries measured. The KPMG study, done every two years, measured a complete roster of corporate income taxes, capital taxes, sales taxes, property taxes, miscellaneous local business taxes and statutory labour costs as they apply to large businesses, particularly those that are foreign-owned. KPMG looked beyond nominal rates to calculate the actual taxes owing by taking into consideration typical business deductions.

"The study is based entirely on effective tax rates," says Elio Luongo, Canadian managing partner, tax at KPMG LLP in Toronto. The audit, tax and advisory firm took into account the generally available tax credits or deductions for each jurisdiction. Although the study compared effective tax rates for businesses among the 14 countries, it didn't analyze the pattern specifically for SMEs.

The study assigned a Total Tax Index (TTI) to each location, comparing the business-tax burden in each country against a benchmark of 100 for the U.S. As in golf, the lower the score the better.

For the first time, this study included four major high-growth countries: Brazil, India, China and Russia. Canada (59.1) ranked just behind India (49.7) in tax competitiveness, followed by China (59.7) and Mexico (63.6), with Russia (71.7) at the fifth-lowest rate. Among developed nations, the U.K. (73.3) ranked second behind Canada, followed by the Netherlands (77.2), the U.S. (100), Germany (122), Australia (125.1) and Japan (152.3). Canada's score is 4.9 points lower now than it was in 2010—a significant improvement.

The study also compared tax burdens in specific cities. Among the 55 cities with populations of more than two million that KPMG studied, Vancouver (49.2), Toronto (56.0) and Montreal (62.1) all ranked in the top 10. In comparison, the biggest U.S. city, New York (101.3), was in 38th place.

The study noted that tax rates vary widely from industry to industry. Labour costs, for example, likely make up a higher share of total costs for service-sector companies than those in other sectors. For these companies, therefore, statutory labour costs—such as taxes and other charges on payroll to cover social security, medical care, employment insurance and workers' compensation—are more of an issue. Manufacturers are typically more capital intensive, so capital taxes, property taxes and the availability of tax incentives for manufacturing are more important considerations in their location decisions.

The lower tax rates facing Canadian companies may help firms based here to compete on the global stage despite the country's higher costs for labour, transportation and real estate, as well as the strong loonie. And because tax costs are likely to range more widely among countries than other costs, says Luongo, lower rates can be the deciding factor when businesses decide where to locate.

Having a little self-compassion will help you grow, learn and accept when things don't go as planned.

You have probably thought a lot about the idea of self-esteem. Self-esteem is how good you feel about yourself. Since the 1970s, there has been a lot of work on self-esteem. We know that people who feel good about themselves are socially successful. They project a beautiful image to the world. They act with confidence.

But, have you heard about self-compassion?

Self-compassion is the extent to which you treat yourself kindly. That is different from just feeling good about yourself. You can have a lot of self-confidence and a strong feeling of your own importance and still be hard on yourself when things go wrong.

Do you have self-compassion?

When you make a mistake, what is your first reaction? Do you kick yourself repeatedly over the error? Do you spend time worrying about all the ways you could have handled it differently? Are you anxious about how your mistake will be seen by others?

Self-compassion is the ability to recognize that you are fallible. You will make mistakes. The key to self-compassion is to realize that those mistakes are a result of your actions in a situation and not a sign of a character flaw.

Obviously, it is useful to feel a little remorse when you make a mistake. It can be helpful to review the problem to make sure you don’t make the mistake again.

But, it is also valuable to give yourself the benefit of the doubt. It is important to give yourself the same freedom to err that you give to the people around you. After all, a little failure can be a good thing. You can only move forward in life when you try new things, and you cannot expect to try new things without making a few mistakes.  

Having a little self-compassion will help you grow, learn and accept when things don't go as planned.

This self-compassion can help you in all phases of your life. Instead of obsessing over things that you should not have said in social interactions, allow yourself to move on from a discussion that didn’t go well or a fight with a friend. In relationships, recognize that when something does not go the way you wanted it to, that is not a sign that you are the problem. And in your work life, realize that failure is common. Indeed, one reason why Silicon Valley has been the seat of so many new and vibrant companies is because the entrepreneurs there are given the freedom to fail and to learn from their mistakes.

Next time you make a mistake, try to treat yourself like you would treat others. Give yourself some understanding. You will find that this self-compassion helps you project a more beautiful self to the rest of the world.

Headlines in magazines and newspapers have been quick to signal the demise of Canada's economic engine - the Real Estate Market. Bold statements such as 25% declines in home values have been thrown around and questions have been raised about the long term viability of real estate investments. Statistics are being manipulated and reported out of context to instill fear amongst buyers and sellers alike.

The Real Estate Market has, arguably, single-handedly saved our nation from the effects of the global financial turmoil that surrounds us. Why the obsession with trying to take down the Real Estate Market through spreading fears of a collapse?

When looking at the true facts about our market today, one can take comfort and know that the reports are false and unsubstantiated. Here are five reasons why:

1. You cannot take a small sample of the annual sales data and make assumptions such as double digit price drops. The reports being circulated focus on a decline in the number of sales for September 2012 (5879) compared to the same month last year (7422). Sure this is approximately a 20% decline in sales when compared to last September, however if you look at the year to date numbers it is quite clear that many sellers that would have hit the market in late summer/early fall have likely moved up into the winter/early spring selling season. January to May 2012 saw healthy increases in sales over the same period last year. Year to date we are at 69,909 sales. Since 2004, the annual average for number of sales has been approximately 84,000. (2004 83,501, 2005 84,145, 2006 83,084, 2007 93,193, 2008 74,552, 2009 87,308, 2010 85,545, 2011 89,099). In 2012, a conservative finish to the year with 15,000 sales will put us at a very respectable 85,000 total. The 15,000 sale estimate is calculated from last year's 18,920 sales in the last quarter less 20%. What does this mean? It means that 2012 will finish as a typical year for the Toronto Real Estate Board. Typical in number of deals as well as showing a rather healthy, yet stable 6-8% price growth.

2. With steady price appreciation, the Canadian real estate market has never been the victim of artificially inflated prices that played a key role in the demise of the American market. Even during the recession of 2008, our housing market showed 1% growth in average sale price. A recent report in Canadian Business magazine stated that between August 2008 and March 2009, the average home prices FELL 8.5%. I would love to meet ONE person, whose home fell 8.5% in value at that time. The "average price" during that stretch was lower due to the luxury homes segment of the market slowing down. Homes priced in the lower price points were predominant and as such "average sale price" was of course lower. There is a huge difference between home values and average sales price, a difference that is being overlooked to deliberately cause confusion and panic. Looking over historical sales and average price data, going back to 1966, we have never shown double digit price decreases as those being suggested. Even in the lean years from 1990 to 1993, Canadian Real Estate showed declines between 2.5% and 7% approximately. During a recession, the first segment of the market which starts to slow is the luxury home market ($1Million plus). Take those sales out of the equation and naturally your average sale price will drop. What this means is that a decline in average sale price does NOT mean a decrease in value. Should the value of a home decrease at all, homeowners would just wait to sell. Real Estate always increases in value over time. It is not a penny stock that gets traded daily, it is a long term investment. There's no need to purchase in a frenzy or sell in a panic.

3. The comparison to the American housing market is not realistic. The crash in the States was due to many unique factors. They had a subprime mortgage market caused by a hyper competitive banking system focused on profits without controlled recourse laws. The lack of accountability afforded Americans an out without significant penalties. Canada's banking sector is rated number one in the world for stability and regulations. There are also laws protecting the banks and allow banks to pursue the borrower for punitive measures. Offsetting home prices is the fact that Canada's interest rates have remained at historically low levels. Rates will continue to stay low and should they rise, and in turn cause a negative impact on the housing market, rest assured the government will be quick to act and restore rates to their lower levels.

4. Household debt is of course on the rise. There is no arguing that. However, with the changes our government has made to protect the number one rated banking system in the world, homeowners are forced to retain greater equity in their properties. With the changes to Gross and Total Debt Service Ratios, and the banks qualifying prospective home owners at 5 year posted rates, affordability is not as big an issue as it is being made out to be in the media. Every report seems to point out Vancouver, Toronto, and Montreal home prices and deeming Canada unaffordable. These cities may no longer be affordable to all home buyers, however there are many affordable alternatives throughout our country for all income levels.

5. Reports in reputable magazines suggest you sell your home now and rent in anticipation of a double digit price drop. This is one of the most ridiculous suggestions ever made. Owning your home is your inflation hedge. Real Estate is a long term investment. The opportunity cost of leaving the market will prove to be huge. Taking yourself out of the market for a year or two will not only cost you the amount you'll pay in rent, it also costs you your inflation hedge. At the same time, you're still paying a mortgage, just not your own.

A recent article in Canadian Business said "If psychology is indeed driving the market then any event that destroys confidence can touch off the fall". Ironic how they continue to play with the psyche of Canadians with negativity and unsubstantiated figures in an effort to destroy confidence. I'd be curious to know how many of these writers would sell me their home for a 25% discount. For the truth about the market, consult your Real Estate Professional and do not rely on news stories aimed at selling papers, magazines or air time. As your Realtor, we will assist you make the right decision to protect your greatest asset and build your Real Estate Portfolio.

Your home is, and will continue to be your greatest and safest investment.

Asif Khan, ABR
Re/Max All-Stars Realty Inc.
Re/Max Hall of Fame
 
click here: http://bit.ly/Phzcqe

Headlines in magazines and newspapers have been quick to signal the demise of Canada's economic engine - the Real Estate Market. Bold statements such as 25% declines in home values have been thrown around and questions have been raised about the long term viability of real estate investments. Statistics are being manipulated and reported out of context to instill fear amongst buyers and sellers alike.

The Real Estate Market has, arguably, single-handedly saved our nation from the effects of the global financial turmoil that surrounds us. Why the obsession with trying to take down the Real Estate Market through spreading fears of a collapse?

When looking at the true facts about our market today, one can take comfort and know that the reports are false and unsubstantiated. Here are five reasons why:

1. You cannot take a small sample of the annual sales data and make assumptions such as double digit price drops. The reports being circulated focus on a decline in the number of sales for September 2012 (5879) compared to the same month last year (7422). Sure this is approximately a 20% decline in sales when compared to last September, however if you look at the year to date numbers it is quite clear that many sellers that would have hit the market in late summer/early fall have likely moved up into the winter/early spring selling season. January to May 2012 saw healthy increases in sales over the same period last year. Year to date we are at 69,909 sales. Since 2004, the annual average for number of sales has been approximately 84,000. (2004 83,501, 2005 84,145, 2006 83,084, 2007 93,193, 2008 74,552, 2009 87,308, 2010 85,545, 2011 89,099). In 2012, a conservative finish to the year with 15,000 sales will put us at a very respectable 85,000 total. The 15,000 sale estimate is calculated from last year's 18,920 sales in the last quarter less 20%. What does this mean? It means that 2012 will finish as a typical year for the Toronto Real Estate Board. Typical in number of deals as well as showing a rather healthy, yet stable 6-8% price growth.

2. With steady price appreciation, the Canadian real estate market has never been the victim of artificially inflated prices that played a key role in the demise of the American market. Even during the recession of 2008, our housing market showed 1% growth in average sale price. A recent report in Canadian Business magazine stated that between August 2008 and March 2009, the average home prices FELL 8.5%. I would love to meet ONE person, whose home fell 8.5% in value at that time. The "average price" during that stretch was lower due to the luxury homes segment of the market slowing down. Homes priced in the lower price points were predominant and as such "average sale price" was of course lower. There is a huge difference between home values and average sales price, a difference that is being overlooked to deliberately cause confusion and panic. Looking over historical sales and average price data, going back to 1966, we have never shown double digit price decreases as those being suggested. Even in the lean years from 1990 to 1993, Canadian Real Estate showed declines between 2.5% and 7% approximately. During a recession, the first segment of the market which starts to slow is the luxury home market ($1Million plus). Take those sales out of the equation and naturally your average sale price will drop. What this means is that a decline in average sale price does NOT mean a decrease in value. Should the value of a home decrease at all, homeowners would just wait to sell. Real Estate always increases in value over time. It is not a penny stock that gets traded daily, it is a long term investment. There's no need to purchase in a frenzy or sell in a panic.

3. The comparison to the American housing market is not realistic. The crash in the States was due to many unique factors. They had a subprime mortgage market caused by a hyper competitive banking system focused on profits without controlled recourse laws. The lack of accountability afforded Americans an out without significant penalties. Canada's banking sector is rated number one in the world for stability and regulations. There are also laws protecting the banks and allow banks to pursue the borrower for punitive measures. Offsetting home prices is the fact that Canada's interest rates have remained at historically low levels. Rates will continue to stay low and should they rise, and in turn cause a negative impact on the housing market, rest assured the government will be quick to act and restore rates to their lower levels.

4. Household debt is of course on the rise. There is no arguing that. However, with the changes our government has made to protect the number one rated banking system in the world, homeowners are forced to retain greater equity in their properties. With the changes to Gross and Total Debt Service Ratios, and the banks qualifying prospective home owners at 5 year posted rates, affordability is not as big an issue as it is being made out to be in the media. Every report seems to point out Vancouver, Toronto, and Montreal home prices and deeming Canada unaffordable. These cities may no longer be affordable to all home buyers, however there are many affordable alternatives throughout our country for all income levels.

5. Reports in reputable magazines suggest you sell your home now and rent in anticipation of a double digit price drop. This is one of the most ridiculous suggestions ever made. Owning your home is your inflation hedge. Real Estate is a long term investment. The opportunity cost of leaving the market will prove to be huge. Taking yourself out of the market for a year or two will not only cost you the amount you'll pay in rent, it also costs you your inflation hedge. At the same time, you're still paying a mortgage, just not your own.

A recent article in Canadian Business said "If psychology is indeed driving the market then any event that destroys confidence can touch off the fall". Ironic how they continue to play with the psyche of Canadians with negativity and unsubstantiated figures in an effort to destroy confidence. I'd be curious to know how many of these writers would sell me their home for a 25% discount. For the truth about the market, consult your Real Estate Professional and do not rely on news stories aimed at selling papers, magazines or air time. As your Realtor, we will assist you make the right decision to protect your greatest asset and build your Real Estate Portfolio.

Your home is, and will continue to be your greatest and safest investment.

Asif Khan, ABR
Re/Max All-Stars Realty Inc.
Re/Max Hall of Fame
 
click here: http://bit.ly/Phzcqe

They clutter up your kitchen, hog your closets and collect in your entryway. Just about everyone has too many of something. And the things we hoard are surprisingly predictable. Forget heirlooms and sentimental tchotchkes, it’s the utilitarian items that overrun our homes.

“We hold onto things because they seem to have a purpose, whether it’s recipes we’ve clipped or little jewellery boxes,” says Susan Borax of Good Riddance, a professional organizing firm in Vancouver. “We don’t realize that there’s a statute of limitations on how useful something can be.”

Need some breathing room? Chances are, you’ve got more of these than you need:

Reusable shopping bags

“I always forget them and end up buying new ones,” says Carrie Macmillan, a student at Ryerson University in Toronto. “I have enough for an unreasonable amount of groceries.” Too much of a good thing is, well, not good. “People forget about the first part of reduce, reuse, recycle,” says Emily Alfred, a waste campaigner with the Toronto Environmental Alliance. Instead of squirrelling them away, drop a few bags off at a food bank or thrift store. Always keep one on you and a few in your car, so you won’t feel tempted to buy more at the checkout counter.

Plastic containers

Your cupboards are probably riddled with orphan lids and semi-disposable plastic takeout containers. Give up the hope of reuniting each piece with its long-lost mate – keep one set of each size and recycle the rest, or just use regular bowls with reusable stretch-to-fit silicone lids.

Umbrellas

You have several of the el cheapo variety sitting forlornly by your front door, and yet you never seem to have an umbrella when there is a downpour. Invest in a tiny purse-sized one to carry with you at all times, or do your best impression of a born-and-bred West Coaster: In a drizzle, they just pull up their hoods and carry on.

Clothes hangers

Go Joan Crawford on your closet and round up all the wire hangers. Some (but not all) dry cleaners will take them back, so you will have to ask around. Better yet, replace your mishmash of plastic and wood hangers with matching slim flocked ones. When they are all the same size, you will find closet space you never knew you had.

Luggage

Ms. Borax sees a lot of clients who can’t part with old suitcases, even if they have broken wheels and straps. “They have this idea that some day they’ll have time to fix them,” she says. Don’t bother. They make excellent under-the-bed storage containers.

http://www.theglobeandmail.com/life/home-and-garden/decor/5-reusable-tips-for-getting-rid-of-clutter/article4585772/

Toronto Home Search by Team Khan RE/MAX
https://itunes.apple.com/ca/app/toronto-home-search/id567737870?mt=8

Seems like just yesterday I was lying on the beach trying to make the most of a difficult decision: Do I want lemon or lime in my libation? Love the dog days...

As the old adage goes; there's not much we can do about the weather. However, we can lessen some of the stress and worry by at least getting our cars ready for the onslaught of the most wonderful time of the year.

For many, winterizing a vehicle can be a daunting task and in most cases it is a daunting task because let's face it, as humans we do two things very well:

1. We've turned procrastination into a science, and

2. We rely too much on the technologies built into the modern vehicle.

To make the winterizing process as painless as possible, I've compiled a list if essentials for fully winterizing your car.

What you should keep in your car

• Emergency kit. This can always be tailored to each individual situation and should be dictated by the expected driving conditions, but at least should consist of:

• Blanket, gloves, spare coat, safety triangle or flares, flashlight, spare engine fluids such as oil, pre-mixed coolant (see coolants below) and windshield fluid, boots, ice scraper, battery jumper cables, light weight shovel, first aid kit, tire chains, granola bars, bottled water, paper towels, etc.

• Dress for the weather. So may of us dash to the car, start up the engine, crank up the heat and turn on the seat heaters thinking we're good to go. What happens if you find yourself in an emergency, low on fuel and having to wait for help? Dressing warm will lessen the need to run the engine to stay warm and if you have to venture outside the vehicle, you will at least be dress somewhat appropriately.

Vehicle fluids

• Engine coolant. Have the condition as well as strength checked out. If the coolant is more than two years old, it's time to have it replaced. A word of caution; modern engines are very picky as to which coolant should be used. Nowadays, there are three types of coolant available. Do not be fooled into thinking you can tell the difference by the colour of coolants. Read that little dust-covered book buried deep in the glove box - your owner's manual.

Coolants and anti-freeze needs to be mixed with water in a 50 per cent solution and if you live in an area that has a high mineral content in the tap water, use a jug of distilled water. This is very cheap insurance considering the possibility of expensive repairs caused by the interaction of the minerals against the different metals used in a modern day engine.

• Engine oil - get it changed if you can't remember the last time it was changed. Check owner's manual for cold weather viscosity options.

• Top up the windshield washer fluid and keep the excess jug in the trunk. The liquid makes a great de-icer for frozen wipers.

• Keep the gas tank full for two very good reasons:

• You may find yourself idling in traffic for extended periods of time. How comforting to know that you won't be a feature on the evening news because you caused the biggest traffic tie-up of the season.

• Finding yourself in a ditch on a lonely stretch of road can be frightening. Having enough fuel to run the engine for 10 minutes every half hour to keep warm is always a good thing.

Hardware

• Wiper blades - If you can't remember the last time you replaced your wiper blades - now's the time. An easy rule to remember is to replace the blades at each Daylight Savings/Standard time change. If you live in Saskatchewan or North Eastern British Columbia, you're on your own to remember to change the blades in the fall and the spring. I suggest a winter blade replacement in the fall and a normal blade replacement in the spring. If a heavy snowfall is expected, pull the wiper arms off the windshield. Snow can be heavy and the weight bearing on wiper arms can damage their mechanisms.

• Exhaust system integrity. A leaking exhaust is another recipe for disaster. Much more time is spent idling in the winter than in the summer. With the doors closed and windows rolled up, the potential for carbon monoxide poisoning is very real with leaking exhaust pipes or mufflers.

• Check the battery. Batteries are good for three to five years of service in a perfect world, and unless you live in Arizona or another hot locales, plan on three so you won't be left stranded.

• Get the brakes checked. Poor braking performance is dangerous enough in the summer - imagine how much worse things can get if you throw in snow, rain and ice.

• Install four new-tech winter tires as opposed to the old fashioned "snow tires." The new compounds are amazing in adverse conditions but a word of advice: don't install them too soon. The compounds are soft and the tread wears out much more quickly on dry pavement than summer or regular all-season tires.

• Check your tire inflation pressures. Pressures drop drastically in the cold causing the sidewalls to collapse and pinch the tread together as it comes in contact with the road. This lessens the "bite-ability" of the tire.

• Check the air pressure in the spare tire - is there a spare tire and do you have tire changing equipment on board?

• Make sure that all your running lights work - especially the four-way flashers.

• Inspect engine drive belts and hoses. What may have worked well enough in the summer may not work well in cold adverse conditions. Old rubber components harden quickly in the cold, losing their flexibility which can lead to failure.

• Have an air conditioning performance check done. I've mentioned this before - the A/C system is used in most vehicles during the defrost mode and aids in the de-humidifying of the cabin.

Tips and tricks

• Keep a container of lock de-icer handy. It not only helps unfreeze a frozen lock, it works on frozen wipers and window rubbers.

• Power antenna - clear away ice that may have formed over night around the base of the antenna. Last year my wife learned the hard way. After turning on the radio, she noticed a loud grinding noise coming from the front fender - where the power antenna is located. This spring I replaced the antenna mast drive.

• Don't try to pull open a frozen door. You could damage the latch and/or hurt your hand. Instead, push on the door with your hip or shoulder. The inward force will break away the ice that may have formed around the weatherstrip.

• Don't add weight to the trunk of a FWD car. You could actually make front-drive traction worse. With a rear wheel drive, consider using bags of salt if you feel that adding weight is an advantage in your particular situation. It doubles as a quick fix for a slippery surface.

• Clear all the snow off your car. Blowing snow can blind the driversbehind you, and the added weight of the snow, especially on the roof, will adversely affect the handling of the vehicle.

• If you own an SUV, test the AWD or 4WD system now before you end up in an emergency. Discover the operating dynamics AND limitations of the AWD/4WD system, and please remember that all the AWD/4WD systems in the word will not make your vehicle corner or brake better than a two-wheel drive vehicle. Although you may be able to accelerate more effectively, braking and cornering are still a function of tire grip.

• Slow down.

• And finally - if all else fails - keep your cell phone charged and handy.

Procrastinate no more - prepare early before the most wonderful time of the year catches you off guard...and good luck out there!

http://www.theglobeandmail.com/globe-drive/car-tips/get-your-car-ready-for-winter/article1461433/

Markham Stouffville Stars take on the Toronto Wildcats.

Markham Stouffville Stars take on the Toronto Wildcats.

Don’t tell Michael Polzler the Canadian real estate market is the place to be. He’s got his feet planted firmly in Europe.

The 45-year-old former operations head of Re/Max Ontario-Atlantic Canada has pulled up stakes from this country to establish a stronger footprint on a continent he maintains has been vastly underserved by organized real estate.

People need to buy and sell and that doesn’t change

“It’s been crazy busy,” says Mr. Polzler, now the managing director of Re/Max Europe. “I’ve been in Sweden, Hamburg, Germany, and Austria, where I have been kind of living these days.”

And Mr. Polzler just doesn’t understand the fears that the struggling European economy has nowhere to go.

“It’s all very exaggerated. People need to buy and sell and that doesn’t change,” he says

“In the German-speaking economies of around 100 million in Germany, Switzerland and Austria, there is super-low unemployment and the economies are excellent. Even in the countries that have been written about, there is opportunity. Sure it’s harder to sell in Portugal and Spain, but we are making inroads in those marketplaces.”

The Vienna-based Re/Max Europe group, started by his father Frank Polzler and his partner Walter Schneider in 1994, is now in 33 countries.

The pair brought the Re/Max brand to Canada in 1979, turning the real estate market here on its head. Instead of agents giving up a large percentage of their commission to their brokerage, they were charged a desk fee. The group now has about 8,400 sale associates in Canada.

Mr. Polzler says Europe resembles the Canada of a few decades ago when the Multiple Listing Service was not prominent and there was little co-operation between agents.

“Generally speaking, agents do not sell each other’s listings, though we are changing that,” says Mr. Polzler, adding the practice in Europe of trying to sell a listing to just your own clients or handful of colleagues is very limiting. “In Re/Max, we are selling each other’s listings and that really puts the customer first.”

Exclusive listings may ultimately enrich the agents by keeping them among a select group but it hardly creates liquidity in the market.

“It’s very hard to sell property that way,” says Mr. Polzler, calling the European case “very odd” by Canadian standards.

“I don’t think we did that in 1980s or even the 1970s really.”

He says that is why 50% of the market is sold privately and why it is such a good opportunity for his company.

“You really want to expose your property to a lot more agents and [potential] customers, which, of course, is a lot better for the consumer,” says Mr. Polzler.

In Canada, real estate listings are put on a central MLS system at 100-plus boards across the country. Agents who sell another agent’s property listing are compensated directly and usually get about half of the total commission, usually 2.5% each.

Europe provides an interesting contrast to this country where the Canadian Real Estate Association was sued by the Competition Bureau for controlling listings and not allowing consumers enough choice in the services that can be selected through the MLS. The bureau remains in a court battle with the Toronto Real Estate Board over the issue of how listings are controlled.

Re/Max wants a more open market in Europe, although Mr. Polzler did not say he’s trying to emulate the Canadian model exactly. “Our slogan here is changing the way real estate is sold in Europe,” says Mr. Polzler.

He says you can’t start a pan-European MLS because real estate is more a locally driven product. MLS is available in few jurisdictions.

“People think creating an MLS is coming in and trying to organize everybody but really it needs to start with five, 10 or 20 agents to step in and share each other’s listings because this is better for everybody.”

http://business.financialpost.com/2012/10/11/one-real-estate-pros-journey-to-cash-in-on-europe/