How technology has changed the real estate industry
When Sotheby’s International Realty Québec managing broker Daniel Dagenais was searching for a home just over 20 years ago, he did something most homebuyers can relate to: he consulted the MLS (multiple listing services).
“But they were not on the internet,” Dagenais explained. “They were big books.”
To say the internet has transformed the real estate sector would be an understatement. Today the vast majority of homebuyers preview homes for sale online, aided by custom search filters and cuttingedge technology like Matterport 3D virtual tours. Sellers can monitor how their homes are marketed to buyers via private dashboards, available across their mobile devices.
Technology has also impacted the day-to-day operations of brokerage agencies like Sotheby’s International Realty Québec. With the proliferation of digital databases, brokers have instant access to all the documents they need — from seller declarations to certificates of location. And as communications technology has evolved so, too, has the way brokers interact with clients. “It’s still a person-toperson business,” said Dagenais. “(But) we went from using telephones, to being able to Facetime on smartphones.”
Zoom, the popular video conferencing platform, has also proved its place in a broker’s communications arsenal, allowing brokers and clients to collaborate without being in the same room. “With the screen-sharing, it could be like the client is sitting right next to me,” Dagenais said.
Digital tools have been particularly advantageous for Sotheby’s International Realty Québec brokers during the recent months of social distancing. “At one point we were afraid, because it was like ‘you need to stop everything’,” said Dagenais, referring to government measures put in place to slow the spread of COVID-19. March was difficult for Quebec’s real estate sector, as open houses were postponed and offices closed.
“It was really interesting to see how many brokers understood then, and only then, the value of screen-sharing,” said Dagenais. Sotheby’s International Realty Québec brokers have had access to training on digital tools via national webinars since last year, and the company has continued to provide support and training to ensure brokers are equipped to adapt quickly and efficiently, but for many, the current situation gave these tools a new context. Using Zoom, brokers were able to continue developing relationships with clients, and even working through real estate transactions.
When a broker shares the screen, he/she can assign control of the mouse to the client. “It’s really interactive in that sense,” said Dagenais. Both sides are able to participate in activities like reviewing listings, or filling out forms like contracts and promise-to-purchase agreements, which can then be sent directly to clients for electronic signature.
On the whole, Dagenais believes that digital tools are making real estate transactions smoother and more efficient. Since last November, Sotheby’s International Realty Québec has used a communications tool called Simple Notice, which uses email and text messaging to send notices of fulfilment of conditions (for example, if a buyer steps out following an inspection). Previously, these communications relied on bailiff and telegram services, which resulted in delays.
Sellers can reach more buyers more quickly with online marketing. The Sotheby’s International Realty network has a vast global reach, attracting more than 127 million page views annually. The brand’s proprietary Folio platform enables clients to keep tabs on marketing and sales activities, including open house attendance.
Even the process of decorating a new property is simpler for Sotheby’s International Realty Québec buyers who use the company’s Curate app.
The app uses augmented reality to show users how a room could look when designed and furnished to their tastes. For buyers who struggle to envision their own version of a space, this technology is gamechanging. To make things even easier, the app allows users to purchase the furnishings from online retailers.
With mortgage rates in Canada at an all-time low, buyers may be encouraged by the prospect of getting a deal.
But Dagenais urges caution: “I believe the lenders are nervous,” he said. In the coming months, as sales prices are projected to drop, it could be challenging to evaluate property values — which could have a significant impact on the amount lenders are willing to approve. “To be guided by a knowledgeable broker becomes key in all of this,” said Dagenais.
That’s where Dagenais sees the greatest potential for using technology: virtual communications tools can be used to foster broker-client relationships, even between parties who have never met in person.“it’s about a feeling you can develop with a client,” Dagenais said.
“Developing that relationship of trust is key.”