Buying & selling in era of real estate disruption, Home sales tips, Buy property advice

Buying & Selling in the Era of Real Estate Disruption

3 Nov 2022

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From the start of the formal real estate industry about 200 years ago until roughly a half-decade ago, real estate has looked more or less the same. It was a low-tech affair, fraught with manual processes, simplistic data, opacity and avoidable fraud. And the industry surrounding it appeared to feel little incentive to change things.

But in an age of breakneck technological advancement, disruption comes for every industry. Right now, we’re in an era of real estate disruption, as several proptech innovators address longstanding consumer grievances around transparency, access to information, convenience and security.

In this article, let’s explore how buying and selling have evolved in the era of real estate disruption, focusing our attention on three central developments: information, consumer centricity and remoteness.

Information Galore

One of the hallmarks of the current real estate era is the proliferation of new data. The industry used to run on a mixture of conventional, superficial data and human instinct. A real estate agent might pass along a home’s square footage, location and age to a buyer, and make value recommendations from there. Likewise, a homebuyer might pull out a school calculator to make crude guesstimates on mortgage affordability.

Luckily, the information age has produced several tools and technologies to correct these inefficient processes. Big data is a buzzword in the industry right now, and for good reason; more professionals and tech companies are leveraging predictive analytics to incorporate non-traditional data sets in the consumer decision-making process. And informational resources like online mortgage and affordability calculators are becoming the norm.

Consumer Centricity Becoming the Norm

Consumers felt justifiably disenfranchised by the old real estate arrangement. They had little recourse for vetting real estate agents, forced instead to rely on word-of-mouth recommendations and blustery marketing-speak. But the broader consumer trend toward transparency and choice has crept its way into the real estate industry.

The best example of this is Nobul, a real estate digital marketplace founded by tech maverick and real estate expert Regan McGee. McGee poured his knowledge of the industry and emerging AI technology to create a disruptive consumer-centric experience. On Nobul, consumers can access once-opaque agent information, like sales histories, commission rates and verified reviews. The platform’s proprietary algorithm fields a consumer’s criteria and recommends relevant agents; then, agents can compete for the consumer’s business by offering lower commission rates, etc.

It’s a compelling example of how real estate technology can disrupt a historical dynamic and deliver consumers real value.

Tools for Remote Transactions

Next, we have a slate of digital tools that make the real estate transaction process more convenient and streamlined. Here, let’s put them all under the umbrella of “remoteness,” as each of these tools helps facilitate remote, contactless real estate transactions.

These tools include e-signing and document management software, which reduce human error and eliminate the need for lengthy physical meetings with agents and third parties. These tools have proved disruptive as they call into question whether old commission rates really apply in the digital age of automated processes.

Next, there are IM and video conferencing platforms like WhatsApp and Zoom, which an increasing number of agents are adopting. These simple communication tools make it easier for buyers/sellers to reach their representatives and help facilitate sight-unseen sales. The rise of sight-unseen buying in recent years has been a major disrupting factor in the industry, radically transforming its once-simple systems of local supply and demand.

Buying & Selling in the Era of Real Estate Disruption – Immersive Technology

Finally, you can also view the rise of immersive technology (AR, VR and 360-degree photography) as a disruptive factor. It also precipitated the rise in sight-unseen sales, and has proved an effective marketing tool for real estate agents.

Hopefully, you’ve enjoyed this overview of real estate consumerism in the era of real estate disruption. If you haven’t yet adopted the tools, technologies and platforms above, consider trying them. Join the future of real estate.

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