Buying and selling homes is transforming thanks to the influx of artificial intelligence into the buying and selling process
— The real estate industry is under a transformation. There’s a new disruption that’s now roiling residential real estate. Today, new models, like the home trade-in companies or “iBuyers,” are emerging. These represent a partnership of new upstarts and old stalwarts. These new methods are clamoring for attention and a lot of this attention is focused on what part of this process is here to stay and what’s just the awkward first draft. This revolution of the real estate industry has been referred to as the Pets.com of the housing market.
Those supporting this movement are part of a much bigger industrial revolution. Information technology has effectively remade processes from ordering food delivery, trading stocks, and even hailing a cab. Now, technology is moving into an industry that is so “20th century” that the majority of the paperwork is still being done on- well, paper. Customers are typically steered from one professional to the next who are “scratching each other’s backs,” and in a place where there’s a huge incentive for incumbents to make it difficult for customers to manage the process of looking for a home, buying a home, or anything else, alone.
The stakes are big, with $74 billion in real estate agent commissions being paid in 2018, and investors pouring billions of dollars into all types of disrupters. Some consumers who have adopted this new way of buying real estate early are getting a first-hand glimpse of what the future of this industry looks like. However, just like online retail has impacted bricks-and-mortar retail stores, and the tech-enabled social networks have changed everything from high school and family reunions to the political process, real estate transactions that are data-fied may upend everyone’s lives – in ways that are still incomprehensible today.
With this new data-centric approach to buying and selling real estate, it’s possible to determine what the relative demand for a certain style of home is, the relative supply, how that is trended, and take all the data and create a specific listing price. As the time passes and a home is listed, more and more granular information is collected, such as how well the listing is going, if there are a lot of tours, or offers, and this information can then be used for refining the strategy.
The new technology being implemented in the real estate industry is similar to a concierge service. The goal is to make the process as easy as it is to buy and sell stocks online. Just think of these new innovative practices as the stock market of houses.
While the technology isn’t yet in full effect, and it still may be decades before these methods take over completely, now is the time to learn what they have to offer and how they are going to impact the traditional buying and selling process now and in the future.
While things are changing, there’s still a need for traditional real estate services, such as Round Table Realtywhen it comes to buying or selling a home. Finding the right agent or company is the best way to ensure a successful purchase or sale is made and that the buyer or seller doesn’t make any costly mistakes through the process.
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