In a tight market, more client poaching by realtors

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The Globe and Mail is Canada's top source for real estate news, market analysis and housing data. Find the latest on housing markets across the country and real estate information.

As the Toronto real estate market crawls through a slow patch, there is growing anecdotal evidence that some agents are bending and sometimes breaking the rules to drum up business.

“The reality is there’s a lot of hungry agents who are going to cold call and door knock. But if you’re actually doing door knocking and there’s my sign on the front lawn, it’s pretty obvious they are under contract,” Mr. Kutyan said. There was even an incident in which Mr. Kutyan was in the house meeting with his clients, and another agent came to the door. He and his clients were discussing tactics on a recently terminated listing they were planning to relist after the holidays.

For realtors, it’s a rough market. There were 7,187 home sales in the market area of the Toronto Real Estate Board in March, 2019 – the lowest March sales total since the sub-prime mortgage crisis period of 2009, although average prices have increased. Jason Mercer, the Toronto Real Estate Board’s chief market analyst, said there’s another bit of bad news for realtors: “The supply of listings has also receded.

“In a world of however-thousand agents chasing a limited amount of work, I’m not surprised some are not necessarily following the rules,” said Paul Johnston, leader of the Unique Urban Homes sales team and a salesperson at Right at Home Realty Inc. He said he has not had his own clients approached inappropriately very often, although he’s seen other shenanigans, but he says that’s just real estate.

 

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