Overall, the real estate industry has been a little behind the curve in adapting to the ever-evolving technology in our society compared to other industries. However, the past couple years have seen the industry really begin to adapt to and embrace the latest technology. Even beyond the ways tech is changing the way real estate functions there have been some effects on the industry that are unrelated to technological advancements.
Homebuyers Are Getting Younger
Millennials make up the largest portion of the homebuying population in the United States, with 34% of homebuyers falling into the generation that all the other seem to love to hate. They’re tech savvy and they tend to demand that the professionals who serve them are as well. This means that lenders and real estate brokers have been encouraged to make their business models more tech-based.
The Millennial tendency to do their own research, which likely springs from the fact that they’ve had access to any and all information they could ever need at the stroke of a key and the click of a mouse, has also affected the way properties and loan products are marketed.
Adapting to Tech Allows for Keeping Up with Today’s Fast-Paced Market
New technology gives real estate professionals an edge. It allows them to work from anywhere. New 3D and virtual reality techniques allow them to essentially show a property from anywhere. Video communication means that face-to-face client meetings can happen anywhere, opening up a whole new potential client base outside of the agent’s geographical area. Legal signatures can be gathered online and sent on to where ever they need to go, cutting out days of mailing time while negotiating contracts or closing deals.
There are countless ways that technology is allowing agents to work faster, which is great since the market is moving quickly these days, so actions need to be carried out quickly in order to keep up with the competition.
Technology also allows for deals to take place from across the country. An internet-based instant offer service can purchase a house across the country and flip it. The industry and real estate customers simply aren’t as tied down by location.
Location Flexibility May Lead to Lower Property Values
The same mobility that is helping agents keep pace with their work regardless of their location also allows for potential buyers to have more flexibility in where they live. Today’s technology and widespread reliable internet connections mean that more and more people are able to work from wherever they want. Companies are adopting teleworking policies and freelancing is on the rise.
This means that these people don’t have to live in the city anymore if they don’t want to. They can move to the mountains or the forest or a farm in the middle of nowhere and still be able to do their job. This flexibility could bring about lower property values in urban areas as demand for housing there could decrease.
The Roles of Real Estate Professionals are Changing
Extensive online list practices mean that people don’t need a real estate agent to find a home. They don’t need a real-life mortgage broker to obtain the loan they need. People need advisors. They need facilitators. Real estate and mortgage professionals must keep that in mind as tech takes over the industry.
EasyKnock has embraced the technology that is changing the real estate industry and broadening the horizons of real estate customers. Ask us how we can use that technology to benefit you!