Last month, Canadian Real Estate Association (CREA) announced a new pilot program that will allow homebuyers to see all registered offers placed on a property as they are submitted.
The platform, Openn Offers, displays the tracking of offers on Realtor.ca listings and is the first of its kind in Canada.
In a video posted on LinkedIn, Patrick Pichette, Vice President of realtor.ca, addressed the most frequently asked questions about Openn Offers, a ground-breaking offer management provided by the technology company Open Negotiation that was selected to be integrated with realtor.ca.
“Since making the announcement, we have heard a tremendous amount of excitement from members, boards and associations, and consumers from across the country,” says Pichette. “We have already received feedback and support along with some excellent questions. We’re still in the early phases of setting up the pilot project, but it’s not too early to address the most frequent questions we have to date.”
So, he did just that...
What is Openn Offers and how will it help realtors?
“Openn Offers is simply a digital version of the current offer and acceptance process that we use in Canada. The platform provides buyers and sellers and their realtors with near real-time feedback on where any offer may stand on a property. Open Offers allows realtors to facilitate the negotiation process like they always have, but with software. It enables transparency and equality for consumers, while providing realtors with an efficient solution to manage offers. It really shines when agents use it to handle multiple offer scenarios. Buyers will submit an offer with a realtor as they have always done, and the listing realtor will used the Openn Offers platform to manage that process. Once offers are coming in and being managed in the software, elements of the offer details will become visible on realtor.ca.”
Is Openn Offers an Auction Platform?
“No. The Openn Offers platform that is being introduced in North America is not an auction platform and doesn’t change the current offer and acceptance method of buying and selling real estate. It simply automates the current process. Unlike an auction, any written offer can still be subject to conditions within an agreed-upon due diligence period for a back-and-forth negation on the price between interested and buyers can still take place. Since this is a management platform for the offer and acceptance method currently used in Canada -- not an auction site -- anyone making an offer will still need complete and sign a fully-binding contract facilitated by a realtor, as they do now. Also, every prospective buyer will need to have their identity checked and verified. This means buyers and sellers will have confidence that each offer they see is linked to a legally binding contract.”
Why does CREA want to put offers details on realtor.ca?
“The goal is to empower the consumer with more transparent information surrounding real estate transactions and to reinforce the legitimacy of the offer process, especially in times of multiple offer scenarios. This pilot will help further demonstrate realtors’ commitment to protecting public and client interest through a fair and informed real estate market, while also ensuring transactions are constructed in a way that strikes a balance in the interest of buyers and sellers. Ultimately, this tool will help keep realtors at the heart of the transaction."
Who decides what information will appear on realtor.ca listings?
“For realtors participating in the pilot, two things will determine how much information from the offer process is displayed on realtor.ca. One: instructions from their sellers. Two: Local regulatory requirements. Openn Offers comes with backend controls in the system to allow for the display of information that is suitable for different provinces across the country. Some jurisdictions are permitted to disclose more information than others. We are currently in a due diligence process to better understand regulations across the country in order to select to appropriate market or markets to be part of the pilot project."
What does this partnership mean for realtors?
“Openn offers is a realtor-centric project. Information from the platform will be displayed on realtors.ca which is proudly owned by Canada’s realtors. Consumers interested in making an offer will be redirected from realtor.ca to a realtor to engage in an offer process. We feel that an enhanced display of offer information, combined with consumer trust in realtor.ca, will deepen the consumer/realtor relationship and further entrench the realtor at the centre of the transaction. Canadians continue to trust and rely on realtors and realtors.ca as part of their real estate journeys. Quite simply, this pilot is intended to enhance what we’ve already built.”
When Will Openn Offers be made Available?
“The pilot project is being developed now, along with a due diligence process to better understand regulations across the country, while at the same time selecting the appropriate market or markets to be part of the pilot. The pilot is slated to start this summer; there are currently no timelines for a full national roll-out. Between now and then, boards, associations, realtors, and their brokers interested in the pilot can contact us directly. As more information becomes available on the project, it will be shared on the usual CREA channels, including the CREA Café blog and the monthly News to Me email."
