by Baldev S. Gill, Chief Executive Officer
To: All Members
Your Board has always endeavoured to maximize the ROI on member dues. In fact, where possible we have sought opportunities to share in our collective success, through reductions or rebates.
Many of you will recall in March 2018, we instituted a 7.5 per cent rollback of success fees, from $200 to $185. That meant that any listings sold after March 1, 2018 would result in a $15 rebate off the success fee billed to the listing brokerage. Around that same time, you may also remember we gave members a one-time dues “vacation”.
Originally designed as a short-term measure, we have actually been able to retain the success fee rebate well beyond the intended ten-month term (March 2018 to Dec. 2018) right up to today. Moreover, the Board has kept a cap on membership dues since 2010.
As we stated in that 2018 announcement, “…it is rare [to be able to] offer a dues vacation or rollback on fees…however things will change down the road. When appropriate or necessary we will adjust our fees and dues accordingly…” We’ve been fortunate enough to maintain this policy, while simultaneously continuing to build the Board and expand services to our members.
Adjusting for Growth
While it may seem preferable to maintain the status quo, it is not possible for the Board to continue to serve membership at the high levels of service and growth expected without the accompanying fiscal responsibility required to see it through. Continued sector competitiveness, strengthening of education programs and member services, planning for future growth – all require adequate resourcing.
Rising costs are a reality of the marketplace; some planned, some not, such as COVID-19. The Board absorbed the costs of equipping the workplace in response to the new realities of the pandemic and was one of the first to re-open after lockdown – without disruption of service to our members.
Adjustments to Member Fees and Dues
The Finance Committee took these and other factors into consideration in recommending to the Board of Directors that membership dues and fees be adjusted to reflect a decade of foregone CPI increases. The adjustments include:
- Elimination of the $15 rebate on success fees, effective January 1, 2021
- A modest, member dues increase of $10 per month, effective January 1, 2021
The Board of Directors approved these recommendations on November 25, 2020.
Your new FVREB member dues will increase from $64.50 to $74.50 per month as of January 1, 2021. CREA and BCREA member dues will remain unchanged.
The new total monthly charge per member will be:
This fee increase will be reflected on the January, 2021 member dues invoice, which will be issued on December 15, 2020.
Brokerages will need to update their accounting records and billing files to reflect the changes.
MLS® SUCCESS FEE
- The success fee will continue to be 0.10 per cent of the sale price, from a minimum of $50 to a maximum of $200
- The current $15 rebate to the listing brokerages will be discontinued, effective January 1, 2021
The Board recognizes the demands and challenges you face in service to your clients – pivoting to new technologies, abiding by stringent safety regulations and adapting to an ever-changing regulatory landscape.
Rest assured that these modest adjustments will be reflected in ever-higher levels of service and commitment as the Board continues to be a champion for members’ growth and success.