March 12, 2018 | Good to Know

There is no doubt that technology is having a massive impact on Real Estate. It’s hard to think back to when I first got into the industry when flip phones were common (if someone had upgraded from a pager), Blackberry’s were the #1 seller for business use, faxes were essential, all real estate deals were done face to face with the other realtor, very few agents used professional photographers, the raging debate was whether social media actually had a future ahead! And paper? What’s paper? We now have a screen for that!

Times have changed! The world of real estate technology is constantly evolving! A comedic look at Why We Won’t See A Real Estate Drop LIke 1989!

More than 85% of buyers go online to begin their search for a property.

Virtual tours are an essential aspect of selling a home. Buyers want to feel the home or condo before deciding whether they want to step onto the property in the real world.

There are many apps that help buyers with their mortgage approvals. There is basically an app for everything!

Some websites, particularly in the U.S. claim to know the values of any home in any neighbourhood. The truth is that isn’t possible as there are too many variables (market demand on a given day, “feel” of a home, state or repairs or renovation/improvements, fiscal policies, the list goes on).

As real estate technology continues to grow I am surprised by how many buyers and sellers seem to believe that realtors will not be relevant or have a job to do.

I want to preface this with what I do believe is a reality: the real estate world is evolving, no question about it.

What I believe to be essential and frequently overlooked when the public states that they have all the info and ability to buy and sell for themselves is: In order to do a good job and succeed you need education and professionalism. Without an excellent realtor, you cannot navigate a deal. You cannot troubleshoot obstacles that arise.

The truth that is frequently overlooked is the fact that, as humans, we are completely irrational in the face of stress. Selling and Buying are stressful. One of my “job titles” is Real Estate Psychologist as I have to help clients figure out what they want, how to get there and what may be getting in their way. Emotions play a massive role in our lives, let alone when dealing with hundreds of thousands and millions of dollars. It is so difficult to make decisions and see the forest for the trees.

Real estate technology is an aid but not it is certainly not robust enough to handle the largest decisions in our lives. The growth of AI will certainly add more assistance in the future but I am a believer that we will always seek human connections and guidance.

All realtors must engage, understand and utilize real estate technology in order to succeed in the competitive Toronto housing market.

The Exception: Pre-Construction Condos

Here is one aspect of real estate that can be traded online, pre-construction condos and houses. A virtual tour or a showroom, 3D imaging of the future building, elevated photography for purposes of “seeing” the view from your unit, floor plans, etc. Yes, this is easily handled with real estate technology.

Keys facts to know:

  1. Developers will not negotiate on price – so a click of a button could work;
  2. What you purchase (shape and square footage) can change at any time prior to the occupation at the will of the developer.

What are your thoughts on how technology in real estate is affecting the market? Let me know in the comments below or get in touch today.

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