4 Key Considerations on the Impact of Technology in Real Estate

In the past two decades, in particular, technology has steadily crept into the real estate sector and for absolutely good measure. Previously, prospective home buyers had to engage in independent research on a property or unit and conduct their own sleuthing on a neighborhood. But now, websites hosting listings compile aggregate data and local and municipal information on a house or area, making real estate information easily accessible for consumers and potential home buyers.

House hunters can now also view virtual tours of units from the comfort of any location, from wherever they are holding their smartphone. Additionally, contracts which previously could only be executed in person can now be e-signed via a tablet or mobile device.

The result of these and other technologies gaining entrance in the real estate sector is that potential buyers have a wealth of important contributory information available to them through the same websites that highlight the basics, such as asking price and number of bedrooms and bathrooms.

All of these innovations have aided real estate professionals and prospective buyers alike, however, it’s important to consider both the pros and the cons of growing technology within real estate.

Here are four key considerations of technology’s impact on real estate:

1. There is no replacement for seeing a property in person

Online tours, videos, and 3-D or virtual reality compilations are spectacular tools to view and get an idea of a space, area, or unit. But at the end of the day, there is no replacement for a buyer seeing and processing a space, home, and neighborhood in person with their own eyes and in the presence of a partner or family members.

There’s a vision that comes alive when a buyer physically walks into a home; they can envision their own life taking place within the space, and can drastically increase the likelihood of a sale.

Also, once a potential buyer is inside and around a home or unit, the buyer can engage other sensing such as smell which may tip them off to environmental factors in the area or even moisture issues in a home.

2. Beware of facts and figures

Like any information you may seek or reference online, data and information is pulled or pooled from various sources. When you get down to house hunting and checking different sites, you will naturally find some discrepancies or variation from one website to another.

That doesn’t necessarily mean that there are gross misrepresentations of information, such as average property taxes, it just means that buyers should remember that these figures are mostly just that: estimations.

What one home or property owner paid in taxes may not and usually isn’t representative of what the next owner will pay, so facts and figures should still be reviewed with a healthy degree of scrutiny and may require clarification or research.

3. Buyers likely still must physically sign paperwork

While a buyer may be able to e-sign an offer letter or seller’s disclosure, some paperwork simply must be filed and executed in person or in the presence of a witness. As a result of social-distancing and the introduction of more concierge services, amenities like mobile notaries may aid the process so that buyers don’t have to travel to an office or agency and notaries can instead travel to the buyer.

So while there are more options for signing contracts and documents available to buyers, it is still probable that buyers must physically sign at least some paperwork.

4. Information is only as valuable as an individual understanding

While there may be a wealth of information posted on a listing site regarding neighborhoods, schools, comparable sales in the area, if you aren’t familiar with these items or terminology, buyers still may need the assistance of a real estate professional or savvy friend or coworker to decode some of the confusing and sometimes daunting real estate and home construction language.

For those who are more experienced or deeper entrenched in their house-hunting journey, the information serves as a convenience, but like any industry, there is always a learning curve.

In the end, technology has undoubtedly assisted, impacted, and benefited how both buyers and real estate professionals conduct and navigate the search and buying processes, but presently, technology predominantly serves as an aid in real estate to enhance the searching and buying process, not as a total replacement for an agent or broker.

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