Greater Vancouver Real Estate: Buyer and Seller Preferences Revealed
The real estate market throughout the Greater Vancouver region has undergone some pretty interesting changes over the past couple of years. From the economic downturn until now we've seen dramatic drops and drastic rebounds that have been affected by a variety of conditions including legislative changes, technological innovation, environmental influences, and changes in the financial sector.
In an effort to understand market trends and the behavior of buyers and sellers, the Real Estate Board of Greater Vancouver (REBGV), which represents nearly 10,000 realtors, conducts an annual research review. This information is used to follow trends and predict customer expectations.
The most recent research of this kind was conducted in 2009 along with the BC Real Estate Association and the Fraser Valley Real Estate Board. This research tried to develop understanding of what consumers want from their realtors as well as differences between realtor and client points of view. Most surprisingly, this research has found that changing technology and easy access to information is changing the way consumers view realtors.
In today's technologically advanced society, traditional norms are sometimes inappropriate. Contemporary homebuyers research the markets themselves using the internet. They are more knowledgeable about the market and they've already sourced property information. In the past, realtors were the primary source for real estate information but this isn't true anymore. Consumers still expect realtors to conduct property searches but the more savvy clients want to work with a realtor who can facilitate the purchase; realtor knowledge about the process, negotiating, and making offers are more crucial to today's homebuyers.
This research showed a contrast between realtor's thinking and client thinking. Most realtors still believe that their main role is to provide customers information about properties. Clearly, the research from customers says otherwise so here is a great example of how this research can make a difference. Realtors need to change the way they approach their job in order to create a cooperative and effective realtor-client relationship.
The study also suggests that realtors may not understand the importance of their role with regards to establishing fair prices for homes according to sellers. Indeed, sellers are more confident in a realtor's knowledge about fair prices than they are in themselves.
In 2008, the REBGV and the Fraser Valley Real Estate Board also released a survey of 1,100 residential homebuyers in the Lower Mainland. In this survey, realtors learn that the majority of homes sold in 2008 were pre-sales, those bought before construction was complete. In fact, 53% of sales in Greater Vancouver and 65% of sales in the Fraser Valley were pre-sales. Moreover, the majority of buyers were paid what they had expected to pay for a home. Around 31% of buyers in Greater Vancouver and 23 per cent in the Fraser Valley felt they had paid more than they expected.
With regards to satisfaction, the results were also good. Most home sellers were happy with the final price reached: 77 per cent of home sellers in the Fraser Valley and 69 per cent in Greater Vancouver were satisfied with the final sale price.
Another aspect this research investigates is whether professional and regulatory guidelines in real estate projects satisfied buying and selling customers. In an annual survey, the public is polled about five statements. Most people have a positive opinion of the real estate profession with as many as 75 per cent of consumers viewing realtors as knowledgeable. Around 70 per cent of respondents feel that realtors are held to a high standard of professionalism giving them a positive public image and the same number see realtors as skilled professionals. With regards to the legislative guidelines set up to protect and support consumers, 58 per cent of survey respondents felt well represented.
This research is vital for following buying trends and how they change over time. 2003, for example, was the first year that condominium sales in Greater Vancouver were higher than sales for single-family detached homes. In today's real estate market almost 60 per cent of sales are condominium or townhouse properties. Through this research, realtors learn to re-position themselves not only according to market trends but also the needs and wants of buyers and sellers.
In an effort to understand market trends and the behavior of buyers and sellers, the Real Estate Board of Greater Vancouver (REBGV), which represents nearly 10,000 realtors, conducts an annual research review. This information is used to follow trends and predict customer expectations.
The most recent research of this kind was conducted in 2009 along with the BC Real Estate Association and the Fraser Valley Real Estate Board. This research tried to develop understanding of what consumers want from their realtors as well as differences between realtor and client points of view. Most surprisingly, this research has found that changing technology and easy access to information is changing the way consumers view realtors.
In today's technologically advanced society, traditional norms are sometimes inappropriate. Contemporary homebuyers research the markets themselves using the internet. They are more knowledgeable about the market and they've already sourced property information. In the past, realtors were the primary source for real estate information but this isn't true anymore. Consumers still expect realtors to conduct property searches but the more savvy clients want to work with a realtor who can facilitate the purchase; realtor knowledge about the process, negotiating, and making offers are more crucial to today's homebuyers.
This research showed a contrast between realtor's thinking and client thinking. Most realtors still believe that their main role is to provide customers information about properties. Clearly, the research from customers says otherwise so here is a great example of how this research can make a difference. Realtors need to change the way they approach their job in order to create a cooperative and effective realtor-client relationship.
The study also suggests that realtors may not understand the importance of their role with regards to establishing fair prices for homes according to sellers. Indeed, sellers are more confident in a realtor's knowledge about fair prices than they are in themselves.
In 2008, the REBGV and the Fraser Valley Real Estate Board also released a survey of 1,100 residential homebuyers in the Lower Mainland. In this survey, realtors learn that the majority of homes sold in 2008 were pre-sales, those bought before construction was complete. In fact, 53% of sales in Greater Vancouver and 65% of sales in the Fraser Valley were pre-sales. Moreover, the majority of buyers were paid what they had expected to pay for a home. Around 31% of buyers in Greater Vancouver and 23 per cent in the Fraser Valley felt they had paid more than they expected.
With regards to satisfaction, the results were also good. Most home sellers were happy with the final price reached: 77 per cent of home sellers in the Fraser Valley and 69 per cent in Greater Vancouver were satisfied with the final sale price.
Another aspect this research investigates is whether professional and regulatory guidelines in real estate projects satisfied buying and selling customers. In an annual survey, the public is polled about five statements. Most people have a positive opinion of the real estate profession with as many as 75 per cent of consumers viewing realtors as knowledgeable. Around 70 per cent of respondents feel that realtors are held to a high standard of professionalism giving them a positive public image and the same number see realtors as skilled professionals. With regards to the legislative guidelines set up to protect and support consumers, 58 per cent of survey respondents felt well represented.
This research is vital for following buying trends and how they change over time. 2003, for example, was the first year that condominium sales in Greater Vancouver were higher than sales for single-family detached homes. In today's real estate market almost 60 per cent of sales are condominium or townhouse properties. Through this research, realtors learn to re-position themselves not only according to market trends but also the needs and wants of buyers and sellers.
posted by VancouverResidence
