As Technology Evolves, The Real Estate World Changes.
Published by Peter Ettro on July 17, 2019
Whilst we’ve come a long way with real estate technology, there are still many additional issues in the process of buying or selling a home that technology will soon replace. In the (near) future, home buying and selling will be done via a single company, using technology that already exists.
Real estate agents, brokers, banks, notaries, title companies, insurers and many other intermediaries all make for a convoluted, time consuming and expensive process for home buyers and sellers alike.
There are currently over 2 million real estate agents in the US according to HomeLight. With 5.3 million home sales in 2018 according to NAR and an average closing time of 46 days, the traditional real estate agent commission model may be coming to an end. Technology is already connecting tech savvy buyers and sellers at a fraction of a typical real estate commission (5-5.5% on average) cost and closing transactions in a much faster time frame than a traditional closing.
Probably the best way to describe what will become of real estate in the future is a look back on the taxi service and what uber and lyft did to the industry. Booking a cab over the phone, waiting for its unknown or late arrival, not having GPS and adequate directions and not knowing your driver or their feedback in this day and age seems almost archaic. Technology completely reshaped ride sharing and taxis almost over night, eliminating almost all of the fundamental issues booking a cab or organising car travel used to create.
The beginning of technology intercepting real estate was the creation of the two main listing aggregators: Zillow and Trulia. Nowadays, if you search for any address in Google, chances are the first results will be real estate listings from these two services. They completely dominate the space due to the technology they created to make browsing for a new home, finding a realtor and getting a mortgage a little easier than it was in the past.
Now, you can sell your house online and get instant cash offers. Forgoing realtors, mortgage brokers, banks, showings and all the usual expensive and time consuming steps typically involved with selling a home. Companies like opendoor are changing the way people sell their properties much like uber and lift changed the way we book and use taxis.
This is just the beginning though, we see marketplaces for investors to purchase rental homes, complete with tenants and rental histories at websites like roofstock, Homes being bought and sold using Crypto currency over at bitcoin-realestate and so much more.
The real estate industry and consumers have a lot to gain when the support and monumentum for these new companies and services grow. The days of multiple realtor commissions, confusing title processes and expensive listing platforms are coming to an end. Technology is reshaping real estate and we’re excited to see where this innovation and creativity will take us in the very near future.
Watch the video When Software Eats the Real (Estate) World :