🏡 Today’s Home Buyers and Sellers Need Advice, Not Just Information | Rick Crouch

by Rick Crouch |  Real Estate Buying, Real Estate General, Real Estate Selling

There was a time when real estate professionals held something that most consumers simply couldn’t access on their own, information. The Internet, has and more recently, Artificial Intelligence (AI) is changing consumer expectations, thereby transforming businesses of all types, including the role those of us in the real estate professionals are expected to provide.

Before the Internet, REALTORS® were the primary source for available listings, recent sales, neighbourhood statistics, market trends, property values and more. Buyers and Sellers depended almost entirely on their real estate Salesperson or Broker because obtaining accurate housing information wasn’t easy. In those days, hard copies of MLS® catalogs were printed and distributed bi-weekly to licensed real estate agents, with today’s online MLS® Systems, the days of MLS® catalogs are long gone.

Restricting listing and othe data fell into the category of what economists call information asymmetry, a situation where one party possesses significantly more information than the other.  Circumstances such as this are seldom fair especially in a profession such as real estate, where transactions involve large sums of money and the disclosure of information is not only expected but in many cases required by law. For decades, that imbalance defined much of the real estate profession, as it attempted to be the “gatekeeper” of information, guarding it as you would your life, ever fearful that losing control would bring about the end of your job and livelihood. Currenly that same fear exists across the overall job market due to the advent of Artificial Intelligence (AI) and the perceived threat is poses to joib security

Today, the advantage of controlling information has largely disappeared and in my opinion and that of others, brings good news to consumers.

The Internet Changed Real Estate Forever

In the book titled Freakonomics, authors Steven Levitt and Stephen Dubner state: “Information is the currency of the Internet. As a medium, the Internet is brilliantly efficient in shifting information from the hands of those who have it into the hands of those who don’t.”

Nowhere is this more prevalent than in real estate which for many consumers is the most valued financial asset many of us will ever own.

Today’s Buyers and Sellers have access to more housing information than ever before. The website REALTOR.ca which is a wholly owned, subsidiary of the Canadian Real Estate Association (CREA), is most often the prime resource that consumers go to for accessing MLS® listings and other information.  This site has 50 to 52 million visits per month which attests to the thirst consumers have for real estate information and data.

Within minutes of accessing REALTOR.ca and other online real estate sites consumers can:

• Search thousands of homes for sale.
• Research neighbourhoods and school districts.
• Compare municipal property taxes.
• View aerial photography, virtual tours and street views.
• Read market reports and economic forecasts.
• Estimate mortgage payments.
• Research local amenities.
• Read reviews about real estate professionals.
• Ask Artificial Intelligence platforms detailed real estate questions 24 hours a day.

Consumers today are often arriving at their first meeting with a REALTOR® far better informed than they were not that many years ago.  That being said, REALTOR.ca is not the MLS® System.  It is a consumer portal to which MLS® listings are uploaded from over 80 real estate Boards and Associations across Canada each of whom run their own MLS® Systems for their licensed REALTOR® members.

In today’s world of technology, the question is no longer: “How do I find information?” Instead, it’s: “How do I know which information I need and more importantly trust?”

More Information Doesn’t Always Mean Better Decisions

One of the biggest misconceptions in today’s real estate market is that access to information automatically leads to better decisions.  Unfortunately, that is not always the case and regularly we all see and read things we know are not entirely true.

The Internet contains an enormous amount of information, but not all of it is accurate, current or even applicable to your specific needs and or circumstances.

For example:

• Is an online home value estimate obtained via the click of a computer mouse in a matter of seconds truly accurate?
• Why are two neighbouring homes worth dramatically different amounts?
• Is now a good time to buy, or should you wait?
• Does a recent interest rate reduction automatically mean home sales with increase, prices will fall and become more affordable?
• Should you accept the first offer on your home try tonegotiate or what for something better?
• What risks exist within the Agreement of Purchase and Sale that may benefit the Buyer but leave you the Seller exposed?
• What does today’s inventory really tell us about negotiating power and pricing?

These aren’t questions that can be answered by algorithms alone. They require local market knowledge, professional judgment and experience. In areas such as Southern Georgian Bay we have a wide mix of property types.  In addition we have multiple municipalities, along with other governing bodies such as the Niagara Escarpment Commission and entities such as Nottawasaga Valley and Grey Sauble Conservation Athorities not to mention Indigenous interests like the Saugeen Ojibway Nation.

Artificial Intelligence Is a Powerful Tool – But It Isn’t Your Real Estate Advisor

While Artificial Intelligence is changing or has the ability to impact nearly every profession, including real estate, it’s existence will not eliminate jobs as some fear.  Rather it will redefine job roles including automating mundane tasks thereby creating more time to focus on key elements that add value and service to consumers and others.

Over the past two years I have heavily researched the histoiry of and educated myself about Artificial Intelligence (AI).  AI is not a new technology.  Artificial intelligence first started in 1950, when mathematician Alan Turning proposed the famous “Turing Test” to evaluate if a machine could exhibit intelligent behavior equivalent to or indistinguishable from that of a human.  It grew as a research project in 1956  where computer scientist John McCarthy coined the term “artificial intelligence”

Today I use AI myself to help analyze statistical real estate data and other information that I myself have gathered, to formulate marketr predictions/trends while creating resources to assist my Seller and Buyer clients.  That being said, it is important to realize that AI is by no means “foolproff.” As software designers behind AI have repeatedly said, given the wrong information, AI can “hallucinate” or form biased opinions thereby potentially providng information that is blatantly false, misleading or worse.

In terms of the daily functions and duties of a real estate professional, AI has limitations.

• It doesn’t inspect homes.
• It doesn’t negotiate contracts
• It doesn’t recognize subtle changes in Seller or Buyer behaviour.
• It doesn’t know the motivations of Seller and Buyers sitting across the negotiating table.
• Iit cannot replace years of experience interpreting local market conditions or advising clients through one of the largest financial decisions of their lives.

While I have found AI to be an worthy research assistant and can process statistical data that I know to be accurate, it is not a substitute for professional knowledge and judgment.

What Consumers Really Want From Their REALTOR®

Research consistently shows that Buyers and Sellers are looking for something much different than they were ten or twenty years ago. They don’t simply need someone to send them propoerty listings they can readily find online.

Today’s real estate consumers want and need someone who will:

• Explain what the numbers actually mean, how they can impact their decision making.
• Separate facts from opinions.
• Identify risks before they become expensive mistakes.
• Develop strategies based on today’s market conditions.
• Negotiate confidently on their behalf.
• Communicate honestly and promptly without bias.
• Protect their interests throughout the transaction.
• Provide trusted advice instead of sales pressure.

In short, consumers want a professional Trusted Advisor which is where tools such as AI fall short.  Much like they rely on an accountant for tax advice or a lawyer for legal guidance, they want a real estate professional who helps them make informed decisions, not simply complete paperwork which in itself gets more onerous all the time.

Why Experience Matters More Than Ever

Ironically, as information has become more available, experience has become even more valuable. The challenge today isn’t finding information, it’s everywhere. What’s more important especially in a market such as today which has changed significantly from three or four years ago is how the information should be interpreted and what impact it has on consumers and their real estate decision making. Sales in many markets are down significantly while the inventory of homes listed for sale on the MLS® System are up substantially.  The information is little more than a mouse click away, it’s more about knowing how to interpret the information and how it might impact your real estate decisions both buying and selling.

Understanding absorption rates, comparable sales, Buyer and Seller psychology, pricing strategies, financing conditions, inspection issues, market timing and negotiation tactics requires far more than reading articles online.

• Every property is different
• Every client is different
• Every market is different
• Every municipality is different

The best real estate decisions come from combining reliable information with thoughtful analysis, practical experience and sound advice.

What Questions Should You Ask Before Choosing a REALTOR®?

According to long-term trend data from the National Association of REALTORS® which is the U.S. equivalent  of the Canadian Real Estate Association, roughly 74% of home Buyers and 81% of home Sellers hire the very first agent they speak with.

Whether you’re buying or selling, consider asking prospective REALTORS® the following:

• How do you determine market value beyond online estimates?
• How do you negotiate in today’s Buyer’s market?
• How do you help clients avoid costly mistakes?
• What market statistics do you monitor regularly?
• How do you communicate throughout the transaction?
• How will you help me make informed decisions instead of emotional ones?
• What experience do you bring that technology alone cannot provide?

The answers will often tell you far more than advertising ever will.

How My Approach Is Different

Throughout my career, I have never believed my greatest value was simply providing access to information.  My role has always been helping clients understand what that information is actually telling us.

As a Broker, Market Value Appraiser (Residential), Accredited Buyer Representative and Certified Luxury Home Marketing Specialist, I combine more than 25 years of real estate experience with decades of executive leadership in sales, marketing, strategic planning and complex negotiations throughout Canada and the United States.  I myself am a multiple property owner where I have bought and sold in various economic and market condtions.

Rather than trying to “sell” clients on a property to purchase or when they are looking to list their property for sale, I focus on educating them so they can make confident, informed decisions that are right for their unique circumstances that will at the end of the transaction generate realistic, attainable results.

That means providing honest advice, even when it’s not the easiest conversation to have or what they don’t want to hear.

• It means interpreting market data instead of simply quoting statistics.
• It means developing strategies tailored to today’s market, not yesterday’s headlines.
• It means treating every client the way I would want my own family to be treated, with integrity, transparency and genuine care.

Trusted Advice Will Always Matter

The Internet has already changed real estate, today Artificial Intelligence is changing it again and I believe the rate of change we can expect to see in the future will only escalate in speed.

That being said, neither have the Internet now the arrival of AI replaced the importance of experience, sound judgment, skilled negotiation and trusted professional advice needed in what for many will be the largest financial committment in their lifetime.

Information is now and for some time been available to everyone.

Wisdom comes from knowing how to use it.

If you’re thinking about buying or selling a home in Collingwood, The Blue Mountains, Thornbury, Meaford, Wasaga Beach, Clearview Township or anywhere throughout Southern Georgian Bay, I’d welcome the opportunity to help you understand today’s market, answer your questions and develop a strategy that’s tailored to your goals.

Because my job isn’t simply to help you buy or sell a property.

It’s to help you make one of life’s most important financial decisions with confidence.

Trusted Advice. Elevated Results.

NOTE: The author is a Broker, Market Value Appraiser-Residential with Sotheby’s International Realty Canada and a Past President (2008) of the One Point Association of REALTORS®.  Trusted Advice Generates Elevated Results.

📞 Direct: 705-443-1037📧 Email: rcrouch@sothebysrealty.ca

This post is not intended to solicit homes or other properties already listed for sale.