How Real Estate Technology Is Creating A New Normal For Homebuying
Data Suggests Seeing The Property Isn't A Requirement To Buy
Despite e-commerce becoming a staple in the lives of all consumers, the act of purchasing big-ticket items online still isn’t completely normalized.
You might be comfortable shelling out hundreds or even a few thousand dollars for items on Amazon or even eBay, but only after you’ve done enough due diligence on the seller.
However, real estate is one industry that has rarely enjoyed that level of consumer comfort with online shopping. For assets with a six-figure ticket price, it’s harder to feel confident about a big purchase without physically seeing what you are buying.
Websites like Zillow, Realtor.com, Redfin and others have made it really easy for homebuyers to find their dream home, but that would usually be followed by someone visiting the property in person to provide a final vote of confidence.
Recent survey data shows that may be changing.
In a recent tweet by Zillow CEO Rich Barton, he outlines that an estimated 33% of potential home buyers would consider buying a home sight-unseen.
Virtual tours and 3D home walkthroughs can fully simulate what it feels like to be in all corners and crevices of a property. Technology from firms like Matterport feels extremely futuristic and gives you such visual clarity even with basic simulated tasks like walking from the kitchen to the living room.
In the current pandemic era, where quarantine orders and business closures seem to be a regular thing now, this tech-led approach to home shopping seems to make more sense.
Furthermore, for people who are purchasing a property in a different state from where they live, this strategy can seem far more appropriate.
It’s also worth noting that larger companies have been purchasing real estate from a tech-centric approach for many years now.
Companies like Opendoor, Offerpad, and others have been buying homes from consumers, sight-unseen, using an algorithm to assess the value of a home and make offers to sellers within 24 hours. The term that has often been branded for these companies is ‘iBuyers.’
For first-time homebuyers or couples who may be purchasing an expensive home, the purely-virtual shopping process probably feels less appealing.
However, with interest rates being as low as they are and buyer sentiment being relatively high, the survey data that the Zillow CEO cited sounds like it could quickly become the new normal.