What are Canadian home buyers looking for?

When looking for a home, especially if someone is planning on buying, a good location and affordable prices are just the tip of the iceberg. There are many more things homebuyers are on the lookout for. For example, the perfect house should be close enough to the workplace, have enough space to meet one’s needs, have friends over, and be reasonably close to entertainment venues. However, different individuals will have different requirements. Therefore, the only opinion that matters at the end of the day is the buyer’s opinion. We’ve made a list of what Canadian home buyers are looking for to give you some guidance.

House features people are not looking for in 2021

Knowing what buyers don’t want is equally important as knowing what they do. These are some of the things people seeking a new house do not prioritize.

• living room with a formal look
• fireplace, elevator, wine cellar
• separate dining room, dual toilets in the master bathroom
• community clubhouses
• in-law suites

This is what Canadian home buyers are looking for, actually

Now that you know some popular turn-offs for home buyers, it’s time to dive into amenities they will prioritize. We have made a list of 8 essential features people buying a house want.

1. Affordability

It is excellent to own a home but at the right price. This is particularly true for first-time buyers and for anyone who wants to find a house but doesn’t have hundreds of thousands of dollars lying around. Therefore, affordable prices are a must. 

According to our research, Canadian houses within the lowest price ranges get all the attention. The cities with morea affordable prices are Saskatoon and Regina, SK, and Winnipeg, MB. A bit pricier, but still in the affordable range are Windsor and Ottawa, ON, and Halifax, NS. 

2. Updated kitchen and bathroom

Due to everyone’s addiction to Pinterest, it is easy to see what most people want to see in a kitchen. A kitchen island is a must since it offers more working space and makes the kitchen cooking-friendly. Stainless steel remains no.1 when it comes to kitchen appliances. Minimalistic cabinetry with clear lines and cool tones is what many are looking for. 

Both bathrooms and kitchens are used mainly by family members and tend to show wear quickly. That’s why it’s essential to invest in remodeling these two areas. In addition, home buyers are nowadays leaning more toward walk-in style showers and neutral cabinets that brighten up the place. It is good to maintain a spa-like environment with floating vanities and an overall clean and minimalistic look.

3. Natural paint

Neutral color schemes are usually preferable to the colorful, bold ones. Although unusual and creative paint jobs can add a statement to a home, they might not be to a buyer’s liking. It also might not be wise to have all the rooms painted in different colors since it might be visually stimulating and overwhelming.

Neutral Paint Colours

4. Open hardwood floors

After having your walls painted in neutral tones, the second most recommended house upgrade is flooring. Get rid of the dusty, old carpets and invest in hardwood flooring, which has been on the top of the buyer-seeking list for many years. Perfect flooring will be appealing to home buyers, whether they have a live or virtual tour around the house you are selling. 

5. Laundry room

Laundry rooms make it considerably easier to handle all those piles of clothes a family, especially with children, comes with. According to recent research, 91% of home buyers want a separate laundry room. This is probably due to the possibility of having a room dedicated to inevitable mess and, therefore, keeping it out of the living space. 

6. Walk-in closets and pantry

More space is always a good idea. Open shelves in a walk-in pantry will make the place more organized and unnecessary cereal containers out of the way.

 Needless to say, walk-in closets are on everyone’s wishlist. They not only add more space, they also add that special touch of luxury to any house, and that’s top on the checklist for Canadian home buyers.”girl’s dream. They also add more space. Additionally, a walk-in closet adds that special touch of luxury to any house, and it’s definitely on the checklist of what Canadian home buyers are looking for.

7. A well-kept yard

A back or front yard are places which gather family and friends. No one wants to see overgrown trees and lawns occupied by weeds. As a seller, you want to trim the trees, pull the weeds, install fresh mulch, and properly clean the place. You should also paint the front door and include plants that grow well in your area. 

If, on the other hand, you are a buyer, having a pre-prepared place where you can have an unforgettable housewarming party once you move in is a great advantage. When you decide to celebrate with friends, you need only to buy snacks and beverages. A fantastic venue is already there.

8. Low energy costs

The sole purpose of this feature is to save money, which everyone wants. If you are a seller, a valuable recommendation to take into account is investing in energy-efficient upgrades to attract buyers’ attention. 

Some of these investments include replacing your windows to allow in as much natural light as possible, attic air-sealing and insulation, and shading your home to protect it from the sun.

Final thoughts

Whether you are selling or buying, you will need to make many important decisions that fit your family’s current situation, your plans, and your financial wealth.

If you have children, try getting them involved in the process to ensure better mental preparation for the move. 

If, on the other hand, you are a seller, try looking back to this list of what Canadian home buyers are looking for to ensure a successful deal.

Remember I am here to help you. If you are thinking of making a move you can start downloading The Concierge Method Guidebook and let me know when you are ready to start working on your new move together!

How to Prepare Your Kids for Moving to a New Home

Leaving behind everything you know to dive into the unfamiliar is stressful for anybody. Add kids into the mix, and you’ve got yourself a genuinely challenging situation. For adults, it’s a bit easier to deal with moving to an entirely new environment because they understand the reasoning behind it. Children, however, have a more challenging time accepting the status quo. Because of this, taking a few extra steps to ensure everyone’s feelings are heard and understood is essential. But how exactly do you prepare your kids for moving to a new home? Read on to find out.

Don’t keep your children in the dark

No matter how smart and mature we think our kiddos are, we often subconsciously underestimate them. However, when helping your child power through a stressful period, this is the last thing you want to do. Instead of dealing with everything on your own, try to include your children as much as you can. This doesn’t mean you should let them control the entire process, but you can allow them to participate in the discussion.

Inform your kids about the decision as soon as possible, and make sure to do it while they’re in a safe and comfortable environment. Explain why you need to move to a new home and listen to their opinion on the matter. Depending on their age, some negative feelings are bound to appear, so try to be understanding and make them feel heard. If they are interested, you can even include them in the house-hunting process. By doing this, you will make them feel like they have a say in this life-changing event.

Visit the new home at least once before you move

Once you decide on the neighbourhood you’re going to move to, start planning a visit to the area. By familiarizing your entire family with the new environment, you will make the uncertain future more tangible and exciting for the little ones.

When you visit the new home, help your kids imagine what their room will look like and point out everything you think they might enjoy about the place. If they know what is ahead, they will be less apprehensive about the changes.

Additionally, if you’ve chosen a new school, it might be a good idea to schedule a tour. The fear of the unknown is the main reason why children (and adults) feel anxious about moving. Therefore, by eliminating or at least minimizing that factor, you will drastically increase the chances of everything going smoothly.

Let your kids sort and pack their things

While you probably shouldn’t let your little ones be in charge of decluttering the home or packing up fine china, you certainly should encourage them to take care of their things. The sense of achievement they will get after going through and packing their belongings will make them more accepting and maybe even excited about the move. If your kids are too young to do that, you can always let them decorate the boxes or simply be present during packing. Any involvement, no matter how small, will help them feel included and thus take their mind off of the negative aspects of relocation.

Don’t neglect your routines

If you want to prepare your kids for moving to a new home, sticking to your routines is imperative. Any significant changes in your daily activities can potentially be upsetting in an already sensitive situation. However, avoiding variations in your routine during a relocation is easier said than done. If you’re planning to leave Toronto and settle elsewhere, it might be a good idea to hire trustworthy long-distance movers to assist you in the process. With professional help, you will have more time and energy to devote your attention to keeping your kids’ schedules intact.

Nonetheless, some shifting in your family’s daily activities is bound to occur. If and when it does, remember to take things slowly and remind your children how proud you are of their positive attitude.

Create memories of your old home

Leaving the place, you used to call home for most, if not all, of your life can be heartbreaking for a child. Remember – they’re not only leaving their house, but their school, friends, favorite parks, and ice cream shops as well. Besides their family, that is all a kid has and knows, so it’s easy to understand why some grief is expected.

While you shouldn’t try to make these emotions disappear, you should do everything in your power to make them more bearable. To do that, it might be a good idea to bring as many memories as possible of their old life into the new home. Whether you want to take pictures in your kids’ favourite places or pack a few items that will remind them of their old home, make sure they have something that can comfort them during the hard times.

Let your kids say their goodbyes

If you give your kids the opportunity to say goodbye to your old home and environment properly, chances are they will feel better about what is to come. Therefore, before you sell your house, make sure to invite your neighbours and friends to a farewell party. Explain to your children that the party is meant to help them say their goodbyes but let them know that they will still see the people they care about after you move. This will show your kids good things can still happen even after a chapter of their life is over.

Be a good listener

Listening to your little ones’ concerns and feelings is the best thing you can do if you want to prepare your kids for moving to a new home. Helping them feel heard and understood is crucial for their well-being during any life-changing event. Even if you’re feeling stressed and overwhelmed yourself, try to find the time to talk through any emotions as a family. After all, you are responsible for your kids’ happiness, so if you have to put them through a certain amount of stress, the least you can do is lend them an ear when things get tough.

This year has demonstrated, perhaps more than ever, the importance of our family, friends, neighbors, and community. It truly “takes a village” to keep a community functioning effectively, whether that’s by keeping our waterways clean, feeding the hungry, teaching our kids, or supporting small businesses. 

With the holidays right around the corner, December offers the perfect opportunity to give back to the place we call home. You might want to focus your efforts near home, expand to our larger community, or even help support the people closest to you. Whether you’re passionate about a particular cause or just want to get more involved in general, let these 10 ways, both big and small, inspire you to do good in your town. 

GIVE BACK NEAR HOME

1. Attract local wildlife. By making your neighborhood more wildlife friendly, you’re helping to  create a balanced and healthy ecosystem. Plus, many of the animals you can attract help with pest control and pollination.¹

Ideas: 

• Add a birdbath to your backyard or create a rain garden to attract wildlife (and filter out local pollutants).
• Place bird feeders on your property to feed birds all year long. 
• Tie corncobs to tree branches to feed squirrels. 
• Hang birdhouses on your property to provide shelter. 
• Use native plants in your landscaping to provide food and shelter for birds, bees, butterflies, and other critters.

Take action: While you might not be able to “break ground” until spring, start researching native plants now to design a landscaping plan that provides food, shelter, and water for local wildlife.

2. Clean up our community. Besides beautifying the area, picking up trash keeps it out of our local waterways, which means a cleaner water supply for all of us.

Ideas: 

• Whether you make this a solo effort or join in an organized group event, pick up trash in your neighborhood, at a local park, or elsewhere in our community. 
• Depending on your community’s regulations, you can recycle many home items such as paper, glass, and aluminum. 
• And don’t forget to clean the exterior of your home, where water runoff (such as on your driveway and sidewalks) can carry debris into the local sewer system.²

Take action: Check with your local municipality to learn about environmental clean-up efforts in our community, as well as recycling and composting.  

3. Organize or join a neighborhood watch. According to a recent report, neighborhoods with Neighborhood Crime Watch programs experience roughly 16 percent less crime.³ Keeping an eye out for each other instills a sense of safety and security in your neighborhood by increasing surveillance, reducing opportunities, and enhancing information sharing among residents. Even if your neighborhood doesn’t have an official program, you can still share crime information via a neighborhood Facebook group or apps like NextDoor.

Ideas: 

• Make a point of looking out for each other and being observant of what’s going on. 
• You can even make it official by joining a neighborhood watch program. 
• Don’t have one? Consider launching a neighborhood watch program with the help of other interested neighbors.

Take action: Some police forces use online mapping tools that provide crime alerts to people in neighborhoods where recent criminal activity occurred.³ Share this information with your neighbors.

HELP OUT LOCAL ORGANIZATIONS

4. Boost your civic engagement. Regardless of your politics, you can get more involved as a citizen to make a positive difference in our community.

Ideas: 

• Sign a petition to make a needed change in our community. 
• Join a peaceful march, protest, or rally to support a cause dear to your heart. 
• Attend local school board meetings, town halls, or city council meetings to understand (and have a voice in) local issues.⁴
• Watch (and read) a variety of local news sources to get balanced reporting on what’s happening in our community. 
• If you don’t know your neighbors very well, introduce yourself. 
• Then make a commitment to check in on those who might need help, such as an elderly neighbor. 
• Get plugged into the resources and events in our town by visiting local museums, taking historical tours, borrowing materials from our local library, and attending community festivals.

Take action: Do you know who our local leaders are, such as our mayor or city councilwoman? Get to know their names, their policies, and their stand on issues that affect our community. Subscribe to their newsletter and follow them on social media.

5. Support local businesses. Our community has been impacted by the pandemic, with many businesses being forced to limit capacity, instill social distancing efforts, and even shutter entirely in some cases. Help keep money in our local economy by shopping local instead of relying on online shopping from national chains.

Ideas: 

• From handcrafted soaps and one-of-a-kind apparel to locally produced chocolate and small-batch wines, you’ll find plenty of unique gifts at the small businesses that dot our community. 
• Consider purchasing tickets to attend live-streamed holiday concerts and shows. 
• Buy cookies and other baked goods from our local bakery. 
• Get takeout from our local restaurants. 
• Support local farmers by purchasing fresh fruits and vegetables at community farmer’s markets.

Take action: If you’re concerned about shopping in person right now, many of these businesses, though small, offer online shopping, with options for in-store pick-up, curbside delivery, and/or mail options.

6. Donate to local charities. Nonprofits could always use your financial support, so consider making a monetary donation to help them carry out their mission in our community. But if money is tight (or you want to support in other ways), think beyond just donating dollars. 

Ideas: 

• Consider donating to a charity in someone else’s name as an altruistic gift on behalf of a friend or relative. 
• Give blood to our local blood bank.
• Donate new or used books to our community library.
• Send school supplies to our neighborhood elementary school.
• Help struggling neighbors by donating blankets to the homeless.
• Pick out toys to give to a charity that caters to families. ⁵

Take action: Many collection efforts run by charitable organizations and businesses take place during the holidays. Look to see what’s already taking place in our community and choose one or more to give to this season.  

CARE FOR YOUR NEIGHBORS

7. Organize a holiday food drive. This year, in particular, people are struggling to pay their bills and put food on the table. The pandemic has caused many businesses to close or reduce their staff size, putting many people out of work.

Ideas: 

• If you personally know someone who needs help buying groceries, reach out and offer to help that one family. 
• If not, partner with a local food bank, soup kitchen, nonprofit or community organization that feeds people in need. 
• Round up a few friends, family, co-workers, or neighbors to collect food for a few weeks. Then deliver the bounty in time for the holidays.

Take action: Take advantage of your grocery store coupons and buy-one-get-one offers to inexpensively stock up on nonperishable goods.

8. Adopt a family or an individual. The holidays can be a struggle, especially financially, for some families. They might not be able to buy a Christmas tree or presents for their children. Maybe their holiday meal consists of boxed macaroni and cheese because they can’t afford a turkey and fresh vegetables. You can make a difference by “adopting” a particular family (or even just a child) to help make their holiday special.

Ideas: 

• If you know a needy family, help them directly. 
• If not, ask a community group for the name of a family or individual in need. 
• Some businesses even sponsor toy drives or “angel trees” where you can pick the name of a needy family off the tree and buy from their wish lists.

Take action: This works great as a family project. Get the kids in your life involved to help make holiday cards and pick out toys to give to the children in the adopted family.

9. Volunteer. Depending on your schedule and your preferences, you might be able to volunteer in-person or from home, whether it’s a one-time effort or ongoing project. It’s a great way to meet like-minded people in your community as you make a positive impact together for a shared cause.

Ideas: 

• Give your time to a cause or organization that really matters to you, such as your local school, animal rescue organization, mental health awareness group, or environmental nonprofit.⁶
• Tap into a skill you already have, like creating videos, and offer your services.
• Or learn a new skill (like fundraising) to benefit your cause of choice.

Take action: Start with your local community to see where its needs are the greatest. Make a point to help this holiday season, perhaps extending your commitment throughout 2021.

10. Perform random acts of kindness. Don’t think you need to “go big or go home” in your give-back efforts. You can make a big difference one small act at a time.

Ideas: 

• Give a generous tip to a waitress.
• Pay for the coffee of the car behind you in the drive-through. 
• Take care of a neighbor’s pet while they’re out of town. 
• Send holiday cards to deployed military personnel. 
• Deliver a plate of homemade holiday cookies to our local fire or police station. 
• Smile at a stranger. 
• Rake leaves for an elderly neighbor. 
• Thank your child’s teacher for all their hard work this year. 
• Send an uplifting text to a friend. 
• Compliment someone. 
• Help a coworker with an unpleasant task.   

Take action: Need more ideas? Visit randomactsofkindness.org for hundreds of inspiring ways to make someone’s day a little brighter.

HOW WE CAN HELP YOU?

As real estate experts in our local community, we’re tuned into the unique needs of the place we all call home. Reach out to us today to discuss more ways to make a positive impact in our community—this holiday season and beyond. And we want to make sure you’re taken care of, too. If you’re thinking about buying or selling a home now or in the near future, let us help you!

Sources:

1. Redfin – 
   https://www.redfin.com/blog/attract-wildlife-to-your-backyard/#:~:text=Sow%20plants%20that%20provide%20essentials,these%20alternate%20natural%20food%20sources
2. The Groundwater Foundation – 
   https://www.groundwater.org/action/home/raingardens.html
3. The Globe and Mail – 
   https://www.theglobeandmail.com/life/home-and-garden/how-neighbours-and-online-maps-can-help-deter-break-ins/article34886427/
4. Parade – 
   https://parade.com/1083640/stephanieosmanski/what-is-civic-engagement/
5. MentalFloss – 
   https://www.mentalfloss.com/article/88663/15-ways-give-back-holiday-season
6. Together We Rise – 
   https://www.togetherwerise.org/blog/7-ways-give-back-community/

The New Normal: A Strong Housing Market Expected to Continue into 2021

Circumstances like a once-in-a-hundred-years pandemic and historic inventory shortages might have made you assume that the housing market would lose steam, but there is plenty of evidence to the contrary. As Canadian Real Estate Association (CREA) senior economist, Shaun Cathcart noted, “records [are continually] being broken” in the residential property market.¹

Indeed, rather than a slowdown, we are continuing to experience a surprisingly robust real estate market across the country. And experts estimate that these conditions are likely to last into the new year. TD Bank Group Economist Rishi Sondhi predicts that high home prices will persist for the rest of 2020.² 

Market conditions like fewer available listings, changing criteria for desired homes, and record-low mortgage rates are changing the way people buy and sell homes, most likely in a lasting way. But this sustained activity, even in the uncertainty that is 2020, proves Canadians still view real estate as a sound investment. The only question now is how you can take advantage of the housing market’s “new normal.” In this article, we’ll explain everything you need to know to achieve your goals.

FEWER LISTINGS EQUALS A SELLER’S’ MARKET

Inventory, meaning the number of homes for sale, is at a record low across the country. 

According to statistics from RBC Economics, the majority of Canada is experiencing tighter demand versus supply conditions than the country has seen in nearly two decades.³ And at the end of September, there were just 2.6 months of inventory on a national basis. That restricts supply, which increases prices if demand remains unchanged.⁴

There has been a bit of relief in terms of inventory. New-home construction hit levels in August that the country had not seen since 2007, but then waned somewhat in September with housing starts down in eight of 10 provinces.⁵Doug Porter, chief economist at Bank of Montréal, also predicts some “building headwinds” that will further cool the influx of new inventory coming on the market.⁶

Fewer listings creates a housing market that is advantageous for sellers for several reasons. For one, buyers have to act fast to snap up available homes. The median number of days listings now spend on the market is 26 days.⁷

Another benefit is that sellers are enjoying higher net returns on their listings. This is thanks to the tough competition for homes, which often results in bidding wars between buyers. The average price of a home sold on the Canadian Real Estate Association’s (CREA’s) MLS service went for a record $604,000 (17.5% more than last year).⁸ Continued home-price growth is anticipated for the remainder of the fourth quarter, and the median national home price is expected to rise 7% over last year.⁹

This sellers’ market is not simply a product of the pandemic. In fact, Cathcart cited the steady decline in home inventory over the past five years—not COVID-19—as the cause for higher prices. “Heading towards records and record type conditions was something that we had already expected for 2020,” he said. This means that even if construction was to ramp back up, buyers can’t simply wait for things to go back to normal before reentering the market. Rather, all signs indicate that this is the new normal.¹⁰

What It Means for Homeowners: 

These higher home prices show that buyers are willing to spend more on a home right now than they did last year. So, if there ever were a time to list for top dollar—and expect to receive asking price quickly—that time is now. Ask us for a free consultation of your home’s value today.

What It Means for Homebuyers:

Due to low inventory, buyers could easily find themselves in a bidding war. Time is of the essence in a seller’s market, so you’ll need to get your financing in order and be preapproved for a loan before you begin your home search. We can connect you with a trusted mortgage professional to get you started.

BUYERS BENEFIT FROM LOW MORTGAGE RATES AND A BIGGER PLAYING FIELD

Don’t worry, homebuyers. This “new normal” of real estate has benefits for you too. 

For example, people used to base their next home purchase on how far the commute was to work or in which public school district it was. But now, thanks to the pandemic shifting the locus of jobs and work, they are free to consider what they need from a home to make it a place they really want to work, teach, exercise, cook, and live.

Often, this equates to needing more space in different types of areas. The search for these criteria is driving residents out of densely populated metropolitan areas and into the suburbs.¹¹ And this exodus from cities is good news for buyers: it opens up more possibilities for inventory that they could not have considered pre-pandemic.

Another advantage for buyers is the record-low mortgage rates. The average five-year fixed rate fell to a record low of 1.99% in September, down from 3.04% at the end of 2019 and 3.74% at the end of 2018.¹²

Thanks to these rates, buyers are afforded the opportunity to buy much more home than they could before. Consider this example. If a buyer can afford a $500,000 home by putting $120,000 down (25%), the monthly payment on a standard 25-year mortgage would be $2,210. Conversely, with a lower rate (say, 2.8%) that buyer can now afford a $600,000 home—$100,000 more purchasing power—at a cost of only $12 additional per month.¹³

The good news is that interest rates are not expected to rise anytime soon—and may hover at these record lows until 2023.¹⁴

What It Means for Homeowners:

If you’re locked into a higher fixed-rate mortgage for the next several years, you’re probably wondering if it’s a good idea to refinance. With those additional funds, you could even choose to invest in a second home in a new desirable location. Reach out to us for a referral to a trusted mortgage professional or an agent in those markets. 

What It Means for Homebuyers:

The time is now to determine how much home you can comfortably afford and make a plan to find it. We can set up a search for you to find homes that best meet your new needs, even if they’re in neighborhoods you wouldn’t have considered before.

A RECORD-SETTING YEAR FOR HOME SALES IS JUST THE BEGINNING

Despite the seemingly adverse buyer conditions, 2020 experienced a record-breaking number of home sales. According to CREA, home sales activity jumped 46.5% year-over-year in September. With an additional 20,000 transactions logged, it was the busiest September thus far. Moreover, “[m]any Canadian housing markets are continuing to see historically strong levels of activity as we enter into the fall market of this very strange year,” CREA chair Costa Poulopoulos said in a statement.¹⁵

Part of the reason for these continued sales is that the pandemic has created a paradigm shift in the patterns of real estate. For example, housing needs are typically resolved by late summer and early fall to coincide with the commencement of the new school year. With homeschooling and remote work, however, buyers have been freed to continue their home search into the traditionally slow winter months.¹⁶

Another reason for the robust market is that household savings grew to 28.2% of household income during the pandemic, an extraordinary level that Statistics Canada said the country has not seen since the 1960s.¹⁷Canadians who were able to keep their jobs, as well as those on unemployment, have evidently made growing their savings a priority. And it seems as though Canadian homebuyers are using that cash on real estate.¹⁸

All this indicates that the housing market is in a strong position heading into the new year. So though it looks different than it ever has before, it’s clear that consumers consider real estate to still be a good investment. The coming months should provide more clues about the market’s direction in the year ahead, such as whether low interest rates and changing housing needs can keep demand levels high, or whether the exhaustion of pent-up demand will cool things off.

What It Means for Homeowners:

It’s tempting to believe that homes will basically sell themselves in a market like this. But we’re still seeing properties that are overpriced and under-marketed sit unsold. We can help you optimize the process of selling your home so you can get the best possible offer.

What It Means for Homebuyers:

Preparation is key to success in a sellers’ market like this, but don’t let yourself become paralyzed. We are here to answer your questions and offer sound advice to guide you through all the options that are available to you.

WE’RE HERE TO GUIDE YOU

National real estate numbers can give us a pulse on the market, but real estate happens in our own backyard. As your local market experts, we can help you understand the finer points of the market that impact sales and home values in your own neighborhood. 

If you’re considering buying or selling a home before the new year or in early 2021, contact us now to schedule a free consultation. We’ll work with you to develop an actionable plan to meet your goals.

Sources:

1. Georgia Straight – 

• TD Economics –

• RBC Economics – 

• Yahoo Finance – 

• CTV News – 

• Financial Post – 

• Zolo – 

• MSN Money – https://www.msn.com/en-nz/money/personalfinance/canadian-home-sales-set-record-for-september-up-456percent-from-last-year-crea/ar-BB1a3uIq
• BNN Bloomberg – 

1. Halifax Today – 

1. Global News – 

1. Financial Post – https://financialpost.com/executive/executive-summary/posthaste-canadas-home-prices-to-rise-12-by-the-end-of-2022-economists-predict/wcm/5f31b866-57a9-4ecf-90aa-65aa6ffbe02c/amp/
2. Yahoo News – 

1. Bank of Canada – 

1. CREA – 

1. PwC – 

1. The Globe and Mail – 

1. CBC/Radio Canada – 

5 Secrets Buyers and Sellers Must Know About Virtual Home Tours

For years now, virtual home tours have helped real estate buyers far and wide find the perfect home. From long-distance military personnel being relocated, to investors expanding their portfolio, to homeowners looking for a vacation getaway, this technology makes finding a house that’s a bit out of driving distance much easier. And for real estate agents, virtual tours have been a useful way to help buyers with their home search and to assist sellers in creatively marketing their listings.

Because of the pandemic, virtual home showing options recently experienced a huge spike in popularity. One survey found that nearly 33% of recent home tour requests were for virtual tours, as compared to just 2% pre-pandemic.¹And it’s easy to see why.

Buyers want to quickly find their next safe haven, one that may need to serve as their office, gym, and even classroom for months to come. And sellers want to limit the number of strangers in their home, yet still have the ability to reach enough potential buyers to get the best offer on their property.

Virtual home tours are the popular thing right now, but that doesn’t automatically mean they’re the only option for your homebuying or selling experience. In this post, we’ll reveal five important secrets behind the virtual real estate scene. Read on to learn how they impact today’s home buyers and sellers.

SECRET #1: Virtual Tours Have Evolved

Lots of real estate professionals who had never used virtual tours before were forced to quickly adapt when the pandemic struck. Because of restrictions on time and resources, not everyone is able to create what would have been deemed a “virtual tour” last year. So instead, we’ve expanded the definition of the phrase by creating innovative new ways to show homes while keeping our clients safe and socially-distanced. Here are some terms you might come across as you explore homes with virtual tours.

Traditional virtual tours use 360° Photos, which are images that allow you to see all angles of a space. These are what allow virtual tour viewers to look up, down, and all around the interior and exterior shots of a home. Using a software program, 360° photos can be stitched together to create a digital model that looks like a dollhouse. This is called a 3D Tour. Sometimes agents will also add Virtual Staging, which decorates rooms with digital furniture and accents like wallpaper or paint.

Traditional virtual tours allow you to click to move from room to room in the home, but Online Walkthroughs feature the actual action of walking around. Either the seller or the agent (depending on factors such as time and safety requirements) will create a video by holding their camera or smartphone and simply moving through the home. 

Online Walkthroughs can be filmed in advance or happen live. If they are live, they can also be referred to as Virtual Showings or Online Open Houses. A Virtual Showing is often a scheduled, one-on-one event that mimics an in-person tour of the home, in which the agent and viewer start at the exterior and move their way through the property. If your agent offers to FaceTime or Skype you from a home you’re interested in, for example, that would be a type of Virtual Showing. In contrast, an Online Open House is more freeform, allowing more viewers to pop in and out of a group video call on apps such as Facebook or Zoom. 

SECRET #2: Virtual Doesn’t Mean Impersonal

All these styles of virtual tours showcase the property’s details better than static photos ever could. But for a purchase as intimate as your next home, details like a new refrigerator or the size of the master closet aren’t the only deciding factors. Luckily, virtual tours are exceptional tools for personal connection.

As a prospective buyer, virtual tours give you a feel for the property, inside and out, so you can easily picture yourself in the space and decide if the home’s flow and features work for your lifestyle. Live video walkthroughs with the real estate agent will give you insights on those crucial non-visual aspects, like creaky floors, super-fast internet speed, and neighborhood dynamics. Plus, you’ll be able to ask questions and get an insider’s perspective on what’s so great about the home.

For sellers, if your agent recommends using a virtual tour to market your home, you could attract more buyers.² And you can be sure that those interested buyers are still getting the up-close and personal look inside your home that will inspire their strongest offers.

SECRET #3: Virtual Is Just The First Step To Safe Home Sales

Even as government restrictions begin to ease in some areas, virtual tours are still recommended as a safer way to buy and sell real estate.³ Buyers don’t have to worry about exposure to anyone who previously visited the property, and sellers cut down on the foot traffic in their home. Some data even suggest that virtual tours keep agents safer as well, since they’re hosting fewer in-person showings and open houses.⁴

But despite the variety of virtual tours available, some buyers will still need to visit a home themselves in order to feel confident enough to submit an offer. In this situation, listing agents and sellers will work together to come up with a procedure that ensures everyone feels safe and comfortable. Some recommendations include requiring interested buyers to present a pre-qualification letter, conducting tours only by appointment and with essential parties, and asking buyers to self-disclose whether they have COVID-19 or exhibit any symptoms.³

The day of the in-person tour, agents might ask buyers to remain in their vehicle until they arrive at the property, and to wear protective gear such as face coverings and gloves. Many will provide hand sanitizer and will ask buyers to refrain from touching any surfaces in the home. Instead, the agent (or seller, prior to the buyers’ arrival) will turn on lights, open doors, and pull back curtains. Then, after everyone has left, the agent will return the home to its original state and disinfect it as needed.³

SECRET #4: The Speed of Closing Depends on Your Goals

Though maybe not literally, virtual tours are opening doors for both buyers and sellers in terms of options available to them. In 2019, buyers viewed an average of 10 homes over a period of 10 weeks before submitting an offer.⁵ But thanks to an increased prevalence of virtual tours saving them driving time, they’re able to peek inside that number of homes in a much shorter period to make their final choice. 

With all this viewing activity, it makes sense that sellers whose listings feature virtual tours are receiving more offers on their properties. According to one study, virtual tours can add between two and three percent to the sales price of a home, in part because increased buyer interest has made sellers feel confident waiting for the exact right offer.²

So if you’re a buyer luxuriating in viewing homes from your couch, just remember that you’re not alone in your search. Your competition is virtually viewing the same properties you are, so it’s still important to work with your real estate agent to quickly submit a strong offer when you find the home of your dreams. And for sellers, if a speedy sale is important to you, carefully weigh that against the temptation to entertain more and more offers, which can keep your home on the market up to six percent longer.² Your agent can help you decide the right strategy for your priorities.

SECRET #5: Virtual May Not Always Be the Right Choice

Creating, editing, uploading, and marketing virtual tours for a listing can be pricey. Packages through popular 3D imaging platforms like Matterport and Immoviewers can cost hundreds of dollars on their own.⁶ Virtual staging will further bloat a listing’s marketing budget, and then there’s the advertising dollars needed. Even seemingly inexpensive options like video call walkthroughs still require time and energy on behalf of both the seller and agent. 

These costs mean that a full virtual tour package might not always be the right choice for sellers. When you talk to your agent about marketing your home, it may be that an elaborate virtual tour, showing, and open house just don’t make sense. It could be that your potential buyers may not resonate with that type of marketing, that the investment-to-return ratio isn’t in your favor, or that there are more effective ways to get your listing seen by qualified buyers.

Buyers, you may notice that some listings within your search parameters don’t offer virtual tours. That’s because those for-sale homes might not have needed a full virtual marketing package to entice buyers to submit offers, or those homes are better marketed through more traditional tactics. Don’t close the door on your dream home because it doesn’t have virtual events and features. Stay open-minded so you can consider the wealth of home options that fit your lifestyle, needs, and budget.

Sources:

1. Rocket Mortgage – https://www.rocketmortgage.com/learn/evolution-of-home-showings-during-covid-19
2. Radio Iowa – https://www.radioiowa.com/2020/07/28/trying-to-sell-a-house-ui-study-finds-virtual-tours-will-bring-more/
3. NAR Showing Guidance During Reopening – https://cdn.nar.realtor/sites/default/files/documents/Showing-Guidance-During-COVID-05-14-2020.pdf
4. NAR 2020 Member Safety Report – https://cdn.nar.realtor/sites/default/files/documents/2020-member-safety-report-08-31-2020.pdf
5. NAR 2019 Profile of Home Buyers and Sellers – https://cdn.nar.realtor/sites/default/files/documents/2019-profile-of-home-buyers-and-sellers-highlights-11-21-2019.pdf
6. Realtor.com – https://www.realtor.com/advice/sell/how-to-host-virtual-home-tours-almost-as-good-as-the-real-thing/