Jason Yochim, CEO of the Vancouver Island Real Estate Board
NANAIMO – In the province of British Columbia, REALTORS® are licensed to sell residential and commercial real estate, but there’s a big difference between the two markets.
Jason Yochim, Chief Executive Officer of the Vancouver Island Real Estate Board, likens the difference to disciplines in the medical profession.
“It is similar to the difference between a specialist and a general practitioner, as in a dentist and an oral surgeon,” he observes. “The dentist might not be able to do the job as well as the oral surgeon, based on the complexity of the issue. In real estate, it’s not that a person isn’t licensed by the province to do the job, but if they’re not familiar with some of the nuances and complexities of a commercial real estate transaction, they could be over their head and that’s not good for the consumer.”
Yochim notes that in BC, realtors are licensed for both residential and commercial transactions.
“All Realtors study a certain amount of material to pass the exam, but it shouldn’t stop there,” he states. “If someone wants to practice in the commercial sphere, they should continue to advance their education.
“Commercial and residential are two different transactions. Primarily, residential is an emotional transaction, as people buy primarily out of emotion. Commercial, however, is a logical decision and emotion doesn’t tend to be a large part of it.”
Commercial real estate services cover everything from bare land, warehouses, retail spaces, industrial land and offices – as well as leasing.
“When it comes to working with land development, investors are very sophisticated and the deals are often very detailed,” he states. “Just because you can doesn’t mean you should. I use that line a lot. In spite of the fact the province is responsible for real estate licensing which enables licensees to practice in all types, it doesn’t guarantee everyone has all the expertise necessary to do commercial transactions. There are a lot of regulatory changes, and if someone is not keeping up to speed on those, it could be a problem.”
For example, for space in a strip mall, the commercial realtor needs to understand how tenant improvements work and relay that to the leasee.
“They need to convey what is included in various types of leases, and there’s lots of education that goes behind that,” he adds. “A client can go into a space and not be aware that improvements are not built into the rent, and end up having to go out and finance the work. What kind of power supply does a tenant need in a lease? What are the future development prospects for the site that may affect the tenant down the road?”
Yochim took over from retired former CEO Bill Benoit on February 1, arriving in Nanaimo from Saskatoon, where he was CEO of the Saskatchewan REALTORS® Association (SRA). He has 30 years’ experience in the construction and real estate industries, including selling and leasing commercial and residential sales prior to taking the CEO position.
“We always like to say that whether it’s commercial or residential, it is important to be represented someone who can take the data that is out there specific to your area and advise on how it fits your needs,” he says. “I always assume that consumers are doing their homework, so it’s important that REALTORS® know all about the property they’re working with. For example, do they have to disclose whether a property is stigmatized? Whether disclosure is required or not, the neighbor is going to tell the client anyway, so isn’t it better if it comes from you, the real estate professional?
“I know REALTORS® that go door to door on behalf of their buyer and ask what the neighborhood is like, what’s the traffic like, around the listing site,” he adds. “Real estate is local – even local to a neighborhood.”