Published on March 20th, 2017 | by Guest0
5 Ways Technology is Changing the Real Estate Industry
Today’s technology is making it easier than ever before to buy and sell real estate. From access to thousands of listings online to access to a wide variety of mortgage tools and options, the home buying process has now put the buyer in the driver’s seat rather than the real estate agent. But like most thing in life, this can be good or bad. Here are 5 ways technology is changing the real estate industry – for better or worse.
- Home Shopping Network
These days, 90% of buyers rely on the internet as their primary research tool. This is good news for both buyer’s and seller’s agents. Seller’s agents are less prone to having to show to buyers who walk into the home and immediately turn around and leave because one glance at the interior tells them it’s not what they are looking for. The buyer’s agent also has to spend significantly less time driving their clients around showing homes, because buyers can now find them themselves.
- DIY Buying and Selling
In 2015, 89% of sellers were assisted by an agent, but what services that agent actually offered has become a mixed bag. Since it is true that the internet has cut down significantly on the work that an agent must to do help sellers sell a home and buyers buy one, people don’t want to pay the same commissions and fees for an agent that doesn’t do as much for them. As a result, many agencies are now offering a la carte options, so even for sale by owner properties can get a little assist from an agent without having to pay a full commission.
- Mortgage Marketplace
Real Estate Agents used to have specific mortgage brokers they preferred working with that they would often recommend to their clients. Now, with online tools like Rocket Mortgage buyers can shop a wide range of products themselves from a wide range of lenders.
- A Little Bit of This And A little Bit Of That
Mortgages can be a tricky endeavor, because there are so many factors that ultimately affect the total bottom line. Interest rates are also not set in stone until you sign on the dotted lines so the rate for closing on Thursday might be different from the rate the following Monday. Mortgage calculators can help buyers understand a more exact picture of what variables affect their mortgage rate and therefore the ultimate price they are really paying for the home and how it might change on a daily basis.
- Better Deals For Buyers And Sellers
In the past, when sellers need to sell their home quickly, they often put it on the market at a very reasonable price. This encourages buyers to move quickly before it’s snapped up by someone else. While this was a great strategy, it also meant sellers often get far less than their home might actually be worth because they weren’t able to spread the word about their home very far in a short amount of time. Buyers also paid the price for this if their agent wasn’t on the ball that day. Now, the second a posting goes live, thousands and thousands of people have immediate access to it, creating a far larger pool of potential buyers. Conversely, buyers can also find out about attractively priced homes the second they hit the market.
While the real estate landscape is changing, it is no more or less lucrative for buyers, sellers or agents. Agents may have to handle more buyers or listings to get the same commissions, but they also generally have to do far less work for each. Buyers and sellers can save some money by doing a lot of the work themselves, but can also lose a significant amount of money if they try and do too much by themselves.