Frances Krug never saw her 81-year-old mother, Audrey Balding, buy a book on the Internet, so she was stunned at how readily Balding took to buying a house electronically.
"At first, she didn't want anything to do with it," says Krug, an online publisher and Internet research analyst. But last month, Krug and Balding bought a condo unit and the only door they walked through to do it was an electronic portal on the developer's website.
"My mom always said she wanted to get through life without ever learning how to use a computer. But pretty soon, she was looking over my shoulder, and by the time we made the purchase, she was really into it," says Krug of their Internet search for a new home. "She was like a fish in water."
Krug and Balding just may represent the next big thing in condominium pre-sales. Condo buyers have grown accustomed to buying units long before ground is broken. They've relied upon on-site show suites to give them a solid, tactile impression of the product they're buying.
But Karen Jawl, who teams with Ingrid Jarisz and Jay Basi in marketing Sayward Hill Terrace condominiums at Cordova Bay, has seen a shift in recent years that was underscored when the development's latest phase started selling as soon as it was introduced on their website.
"We hadn't started marketing it anywhere else. We didn't have a show suite. It was all electronic," says Jawl.
Five units of the 18-unit phase sold quickly with one of the sales depending solely on the website with no visits to the building site or to Jawl's office.
"It wasn't much more than three years ago that we felt market resistance to the idea of pre-sales without a show suite," says Jawl. "Some people would pass on the opportunity because they couldn't see the finished product."
Jarisz notes that while the online marketing kick-off went better than expected, it wasn't entirely an accident.
"We made a conscious decision to put as much information on our website as possible," says Jarisz. "Some people feel that providing too much information on a website draws people away from visiting their centre, but we think the opposite."
Where many websites list price ranges or only "Prices start at ...," the Sayward Hill site lists exact after GST prices for every unit. On-line brochures also provide detailed price summaries for upgrade options.
"We would rather put more information on-line," says Jarisz, "so that when the buyer does come to see us, they're much more informed."
Krug notes that having access to detailed pricing beforehand added to their comfort level. "We could make choices without having a salesperson hanging over us. Even when a salesperson stands back, their presence can make a person feel a subtle pressure."
Electronic communication carries another happy side effect. Everything is in writing. When Kathryn and Neil Bowler, buyers in an earlier phase of the multi-phase condo development, were making their upgrade choices on their now-completed unit, Jarisz e-mailed them a spreadsheet listing the options. The Bowlers were able to enter their choices and immediately see the cost effect. Rather than play phone tag, Jarisz and the Bowlers also used the online spreadsheet to communicate.
Kathryn, who is a semi-retired e-commerce entrepreneur, added a comment column to Jarisz's electronic spreadsheet. Kathryn says, "We had a record of everything. When she made a comment it was on the file. When I made a comment, it was on file. There were absolutely no miscommunications or misunderstandings."
Engineering, architectural and seismic reports were also made available electronically.
"I wouldn't normally have asked for that," says Kathryn. Both Kathryn and Krug say the depth of information also relieves the angst of post-purchase dissonance.
"We had no regrets at all," says Bowler. "We were so well-informed going in."
"It saves time and money," says Krug. "When my parents were having their (Victoria) house built years ago, they had to make a number of trips out here from Edmonton. I remember my mother being so nervous about her decisions afterward, but that didn't happen this time around."
Online home-shopping can keep buyers active in the market even during life's expected and unexpected interruptions, such as travel or illness. Balding had major surgery in the time leading up to their purchase.
"My mother couldn't get around," says Krug. "But she was still able to be involved, and because we did everything electronically, she didn't have to make any trips."
Jawl notes she has yet to meet buyers from Kamloops, a couple who were vacationing in Mexico during the sales launch. Their purchase was completed via e-mail, fax and the Internet.
The Internet has had a growing influence on the real estate market as a whole. Scott Kendrew, president of the Victoria Real Estate Board notes that realtors now have to be available "24/7," because their clients are able to shop at any time of the day or night from their own home.
Kendrew estimates up to 85 per cent of home buyers investigate the market online before engaging a realtor. And realtors aren't the only ones sprinting to keep up with the realities of an electronic marketing age. Customers do, too. Kendrew recently represented clients who last moved 33 years ago.
"When they went back into the market, they expected that they would be able to proceed in the same manner as they had more than three decades earlier," says Kendrew. "That meant sending their papers to the nearest real estate office, which was up-Island, and then a realtor had to drive the papers to them. By the time they decided to put an offer on a property, that property had sold."
Jawl notes that presentation centres may provide the tactile experience buyers look for, but she adds that with sales-to-construction-completion dates growing more drawn out in today's busy market, "presentation centres are often more of a concept than a guarantee of what the buyer will get. For us, our ocean views are our presentation centre."
Krug says, "We really made our decision based on the website. Who knows? Maybe now my mother might even try buying a book online."
DEVELOPMENT DETAILS
What: Sayward Hill, Phase VI. The Sayward Hill development was launched in 2001 and completion of all 10 phases is expected by 2009/10.
Developer/builder: Jawl Development Corporation. The company has been building office, commercial and rental properties for 40 years, and residential buildings for nine years. Past projects include the Selkirk Waterfront, Mattick's Farm, Mattick's Green and Mattick's Wood.
Architect: de Hoog & Kierulf Architects
Interior design: Kimberly Williams Interiors
Structural design: Stantec Consulting
Warranty: National Home Warranty
The project: Phase VI features 18 condominium units overlooking The Ridge and Cordova Bay Golf Courses, and panoramic views of Haro Strait that take in Mount Baker, the Gulf and San Juan Islands.
Architectural and interior design style: West Coast contemporary with luxury features.
Unit size: 1,850 square feet with two bedrooms and two baths. Additional outdoor living space with spacious decks.
Price: From $750,000 to $1.3 million including GST.
Title: Strata
High-tech options: Smart box technology with CAT 5 wiring, pre-wired for high-definition TV and audio streaming.
Parking: Underground
Schools: Cordova Bay Elementary, Royal Oak Middle School and Claremont High
Sales office: 5331 Cordova Bay Rd.
Website: www.saywardhill.com
Information: E-mail [email protected] or phone 250-658-4700
Occupancy: March 2007
Getting around in the car: In less than five minutes: The Ridge and Cordova Bay golf courses, Lochside Trail, Mattick's Farm, organic grocer and specialty shops, Cordova Bay beaches, Elk/Beaver Lake Regional park, restaurants and cafes. In less than 20 minutes: Downtown Victoria, Swartz Bay ferry terminal, Victoria International Airport, Victoria General Hospital and Saanich Peninsula Hospital.