The homebuying process is always changing, but it seems like the pace has quickened since the beginning of the pandemic. The changing needs of buyers and sellers, coupled with a need for new technologies and new strategies, brought forward some of the fastest changes the industry has ever seen. It’s hard to predict where things are headed, but one thing is for certain: more changes are sure to come.
At REW, we analyze search trends and data on our platform to see what changes are taking place in the homebuying process. We’ve noticed several changes taking place and have discussed them at length on a recent episode of The Vancouver Life podcast. Be sure to check it out.
Here’s an overview of some of the ways the homebuying process is changing quickly.
Less time, but more time
Interestingly, the length of the homebuying process is getting both longer and shorter at the same time. The home buying journey is actually getting longer on average, as potential buyers browse through neighbourhoods, new developments, and different types of housing before deciding to make an offer or speak to an agent. With more access to information than ever before, today’s homebuyers are well educated on the market and are increasingly looking through homes online as a form of passive entertainment. In this way, the time involved in a real estate journey from the first search to closing has increased dramatically.
On the other hand, all of this information that buyers are ingesting prepares them for a quick sale. Informed buyers are much quicker to pull the trigger on a property when they find the home that’s right for them, primarily because they’ve spent so much time getting to know the market, their preferences, and what they can and can’t afford. It’s one of the most interesting trends in the market.
The millennials have arrived
One of the largest homebuying generations became fully activated during the pandemic, with many millennials rushing to purchase their first property. Single-family homes were in high demand for those looking to get more space, while townhomes and other types of dwellings that address the “missing middle” continue to be extremely desirable.
In a recent interview on The Whole Home Show with Tony Joe, REW President Simon Bray spoke about the popularity of townhomes and suggested that neighbourhoods with new townhome developments coming to market could see quick growth. “The new development market has been really hot,” said Bray. “It should fuel the real estate market certainly for the next few months, and well into next year.”
Finding an agent
As previously mentioned, the millennial generation is here - and they need an agent. Having grown up with the internet, millennials are more likely than previous generations to read and trust reviews online, including when evaluating real estate agents. New home buyers who start their search on websites like REW need to find an agent to work with, which is why creating and maintaining an active profile with REW.one can help you connect with new buyers.
When assessing agents on REW, buyers will read through your profile page, watch any videos you’ve posted, check out your recommendations and read any posts you’ve shared on your One Profile. Make a great first impression and start using REW to generate leads today.
Access to information has improved dramatically
With so much information available to buyers on websites like REW, there have never been so many well-informed buyers. As addressed above, this can lead to a quicker transaction when buyers find their perfect home and higher satisfaction rates. With data on everything from neighbourhoods to schools to square footage and beyond, it’s not uncommon for homeseekers to know every detail about a property that they’re really interested in before they step into the home for a viewing.
Even more is expected of agents
The real estate agent’s role is constantly changing, with many agents feeling more is being asked of them in recent years. In addition to educating and informing buyers and sellers on properties, a new generation of homebuyers is leaning on agents to be their source for all things real estate. From requesting a notary to a good fence company, there are few requests that agents have not heard from their clients in recent years. Building these relationships has become integral.
Conducting video walkthroughs of properties (more on that below), being available on multiple different communication channels, making sense of the vast amount of information online, and taking care of the unknown for clients has changed the way agents work. With so many changes taking place, the role of the agent is more important than ever.
Video is playing a significant role in the discovery phase
How we view homes has changed drastically over the past few years. Video was already becoming an increasingly popular tool for agents to show off their homes online, but the pandemic accelerated its use and use cases. Virtual tours became almost essential for agents to show off their listings, as did video walkthroughs and even simple FaceTime calls to show off a property.
Video has become the easiest way for agents to stay connected with their clients, which has made it a fixture in most agents’ marketing strategies.
Other aspects have headed online
Less driving around to collect signatures means more time saved, something that no one’s complaining about right now. When closing on a new home, buyers have a lot of paperwork to fill out and get completed. Thankfully, the digital age has provided multiple e-signature platforms that agents are all too familiar with at the moment. They save a lot of driving time for everyone and make the closing process much easier for everyone involved.
Even the process of shopping for mortgages has moved online, with many borrowers starting their searches to compare rates online. If you’re planning for a mortgage, here are some essential tips to get started.
These are just some of the changes we’ve noticed at REW, amongst many others. The homebuying process will continue to change over the next few years, especially as interest rates adjust, new housing policies are implemented, and technology continues to improve.
