MLS Depends on Trust and Co-operation

Most of today's buyers and sellers cannot imagine a real estate transaction that does
not involve the Multiple Listing Service®. Many would not know the history of this
valuable service, or understand the importance of involving a professional
REALTOR® in what can be the most significant financial and emotional decision a
consumer will make.

The first examples of co-operation in the selling of real estate date back to the 1930s,
when real estate agents would hold monthly breakfast meetings and discuss
properties for sale in the region.

By 1950 this co-operative selling program had become more formalized, and in 1955
the Kitchener-Waterloo agents formed a real estate board and became part of a
province-wide "photo co-op listing service", which shortly became known as the
Multiple Listing Service®, or MLS®.

By the end of that first year the Kitchener-Waterloo Real Estate Board had 20
member brokerage offices, employing 80 salespersons. That year there were 743
real estate listings and 223 sales representing just under $2.3 million dollars. The
average sale price was $10,200.

Listings and sales doubled the next year, and have continued to grow. In 2006 the
Board processed 11,700 listings and recorded 6,700 sales through the MLS®. The
average sale price was $244,000. Last year there were 90 offices and 1,000
individual members of the Board.

Anyone who has even a passing interest in the real estate market has heard the term
MLS®, but few consumers know exactly how it operates. The Multiple Listing
Service® is a member-based service, paid for by the members and administered by
the local Real Estate Board. It is a complex information-sharing and marketing
network created over several decades to help the public buy and sell homes. Sellers
realize the benefit of maximum exposure when they list their property on the MLS®
system. For buyers, the MLS® system is a valuable resource for your REALTOR®,
who will use the data to provide advice and assistance on all available properties, no
matter which brokerage firm listed the property for sale.

Members of the Board also hold membership in the Canadian Real Estate
Association (CREA) and the Ontario Real Estate Association (OREA). CREA owns
the trademark for the Multiple Listing Service® and licenses its use to real estate


boards across Canada. MLS® systems operate under a rigid set of rules to ensure
data integrity and to provide an equal opportunity to all participants to co-operate on
the sale by bringing buyers and sellers together.

The real estate industry became computerized in the 1980s, and members can access
MLS® data from any computer that is connected to the Internet. Consumers have
had up-to-date information available at their fingertips since 1995, when CREA
launched www.mls.ca, displaying property information provided by real estate
boards across Canada. There is a hunger for real estate information that begins long
before a property is listed for sale, or an offer is made. The public site attracts an
average of 3 million unique visitors each month, who view more than 250 million
pages. Its counterpart commercial site, www.ICX.ca, attracts 100,000 visitors a
month, with 6 million page views. The information on www.mls.ca and
www.ICX.ca assists buyers in making preliminary decisions on property availability,
location and price, and if more details are required, additional information can be
obtained by contacting a REALTOR®.

Although the numbers have changed dramatically, what has remained constant over
the past 50 years is the degree of co-operation between members. In approximately
two-thirds of all sales the listing office does not bring the buyer to the table. When a
listing is posted on the MLS® system, all members notify their potential buyers of
the availability of the property. In recent years that notification has taken the form of
automated e-mails, so buyers receive information very quickly.

This co-operation between members is based on trust. Only members of CREA are
entitled to use the coveted REALTOR® trademark, which identifies them as licensed
professionals who are members of a real estate board and have access to the MLS®
system. REALTORS® must comply with all provincial laws, and must also adhere
to a strict Code of Ethics that holds them to a high standard of professionalism and
service.

REALTORS® also play an important role in helping to protect property rights in
Canada. They are a respected lobbying group numbering almost 90,000 strong,
whose representatives meet regularly with local MPs and MPPs to discuss issues
relating to the strengthening of property rights and the preservation of property
values.

Advances in technology have made it easier to access information on a global basis,
but real estate is still a very personal business, transacted largely within the same
community. Your local REALTOR® knows the neighbourhood, and is


knowledgeable about market trends and current conditions. REALTORS® have
their finger on the pulse of the real estate market and are in daily contact with other
members who may have buyers interested in your property.

REALTORS® are appreciative of the support they receive from their local
community and each year they give back to the community in the form of donations
and other assistance. In 2006 the charitable donations made by members of the
Kitchener-Waterloo Real Estate Board exceeded $40,000, and the total over the past
15 years has surpassed the $300,000 mark. Every penny remains in the community,
to support shelter-related organizations and improve the quality of life in our Region.

Article submitted to Business Week, February 2007