Technology is transforming the real estate industry in many ways. Today’s home buyer has more desire for information and insight into their next home purchase than ever before. And, whether you are a buyer, seller, or an agent, embracing the technology of the future is essential to ensuring you make the right investments. Take a closer look at some of the key trends and their impact on the real estate industry as a whole.
New Tech Real Estate Versus Traditional Home Sales
The entire process of listing, viewing, and buying a home has changed significantly over the last few years. Technology has allowed buyers to gather more information and sellers to reach a much larger audience than what was common 20 years ago in traditional home sales. Then, and even just a handful of years ago, home buyers turned directly to real estate agents to gather information and support, allowing the agent to find available homes and conduct most of the transaction.
Today, home sellers can easily use websites like Zillow to determine the value of their home and learn market conditions before they decide to sell. And when they decide to sell, agents and brokerages have enhanced technology available to help them showcase their homes – from 360 video tours to virtual reality experiences. These technologies allow would-be buyers to step foot into homes without leaving their phone.
Today, selling a house online has become much easier with direct home buyers that provide almost instant cash offers on your home based on the house details and local real estate market. As a homeowner, you’ll get the purchase offer, and essentially make more money than you would using a traditional real estate agent/broker. These iBuyer companies have advanced algorithms that will help provide an exact value on the home regardless of the overall condition. Carpets need replacing? Cabinets missing drawers and screws? Landscaping dying? Once the direct home buying companies purchase the home, they go in and make renovations to bring it back up to par. This is where you can save the money on doing renovations yourself to increase the overall value and just let them take on the burden.
Of course, agents themselves have new tools as well. Mobile apps make managing contracts and properties easy. Even e-signing documents is now an option. Eventually, tools like blockchain will allow for even more streamlined efficiency in the market.
DIY Home Search Versus Using a Real Estate Agent
When you consider each one of these (and the many other) technology innovations in the real estate market, the question of whether or not the real estate agent is even needed comes up. While technology can improve communications and reduce some of the limitations of home buying and selling, it cannot provide enough of the necessary support for buyers that comes from true one-on-one interactions with real estate agents.
Nevertheless, DIY home searching has become a commonplace investment, one that all companies are working to incorporate. Consumers want to be able to go online to find information about a home, and now they can with various online disruptors. Consumers looking to purchase a home want insight and information – what is the value of the house, what does it look like, and what does it have to offer their very specific needs? Information on-hand is essential, and technology is making that possible.
The Future of Real Estate Technology
What does the future hold when it comes to real estate technology? More information sharing, better access to insightful information about market conditions, and true views of a property are all important. Technology improves transparency, while artificial intelligence can help to sell the home. For agents, using management platforms and data to source leads is also important. These tools are all likely to become more commonplace no matter if a person is buying a home, selling one, or working as a real estate investor.
Technology is valuable across the industry. And, like many other industries, it’s not likely to go anywhere.
