By Sherry MacLeod
Managing Broker
Cape Breton Realty
As a real estate professional who began my career in the early 90s, I have witnessed a remarkable transformation in the industry over the past three decades. The changes in practices, technology, and regulations have reshaped how we buy and sell homes. What once felt like a straightforward process has evolved into a complex maze of paperwork and digital interactions.
In the early 90s, a typical listing contract was a concise one-page document. Fast forward to 2024, and the same contract now spans no less than 14 pages. This increase is not merely a product of bureaucracy; it reflects the growing complexity of the real estate landscape. Today, a listing agreement includes detailed brokerage agreements, agency disclosures, and vital information about leased equipment. Additionally, we must complete the Fintrac paperwork, which adds another four pages to the mix. In total, a seller may find themselves navigating at least 18 pages of documentation just to list their property for sale.
When it came to making an offer, the simplicity of a one-page agreement has been replaced with a multi-step process that involves various forms. Buyers must be educated about agency relationships, their identities verified due to the influx of money in trust, and they must navigate a plethora of conditions that require their signatures or waivers. By the time the offer is finalized, buyers may find themselves faced with a minimum of 19 pages of paperwork. While some may argue this is a sign of progress, it often feels overwhelming for both buyers and sellers.
Reflecting on the early days of my career, the methods we used to communicate and transact seem almost archaic by today’s standards. We would take photographs of properties, develop the film, and send details via snail mail. Confirming that clients received important documents required phone calls or even in-person visits. The days of driving to clients’ homes for signatures were commonplace, and offers remained open for acceptance for a week or more, relying heavily on courier services and priority post. Thank goodness for the internet.
Then came the fax machine, which, at first, presented its own challenges. Convincing clients that a signed fax could be legally binding was no small feat. Today, however, we live in a world dominated by email and digital signatures, where transactions can occur almost instantaneously. I remember I had set up my first website and email in 1993, but it was still years before clients were ready for it.
The way we show properties has also dramatically changed. In the past, face-to-face showings were the norm. We drove clients around in our cars. Now, virtual showings and video calls have become standard practice. Thanks to advancements in technology, we can conduct virtual walkthroughs, allowing prospective buyers to explore homes without ever stepping inside. The COVID-19 pandemic accelerated this shift. In fact, many clients now complete transactions without ever meeting their real estate agents or lawyers in person. Certainly if viewing in person, they drive their own car.
The financial aspects of real estate transactions have also evolved. Gone are the days when cash was a common form of payment. Today, clients often e-transfer their deposits, and funds are wired directly to lawyers’ trust accounts. The traditional meeting with a lawyer to discuss a transaction has largely been replaced by phone calls or video conferences. Virtual signings are now the norm, eliminating the need for in-person meetings to sign deeds and identify buyers and sellers.
In summary, the real estate industry has undergone a profound transformation since the early 90s. The shift from paper to digital, the complexity of documentation, and the rise of virtual interactions have all contributed to a new era of real estate transactions. While the ability to buy a home without ever physically seeing it might have seemed unfathomable back then, it is now a reality made possible by technology and changing consumer expectations. As I reflect on this journey, I am both amazed and proud to be a part of an industry that continues to evolve, adapting to the needs of buyers and sellers in an increasingly digital world.
