Plymouth, MA -- (SBWIRE) -- 04/02/2019 -- Technology has changed the way home buyers peruse the market for options. It has also greatly transformed the way a few real estate companies and agents market their services. From offering a simulated tour of potential homes to offering on-demand viewings over prior booking systems, 2019 is set to be another revolutionary year for real estate. Let's take a look at the real estate trends to watch out for in 2019.
Uber - ization
Disrupting the brokerage industry with its latest venture is Uber Real Estate.
The service reduces commission fees and brokerage costs by up to 50% and delivers its services through a large team of highly qualified broker and broker attorneys, not inexperienced agents.
Uber Real Estate enables consumers find the most experienced realtors, provides precise solutions and services as opposed to some of the incompetent agent experiences that customers face. All of it, for up to,50% off.
It is the latest development in real estate.
Apparently Uber Real Estate is working on quite a bit more.
On-demand Real Estate Showings
Another trend that can be expected to gather momentum in 2019 is 'on-demand showings'. On-demand showing basically means pairing a home renter or buyer with an agent who is in the immediate geographical area and is available to conduct a property showing.
A few real estate companies now use this technique, using mobile applications to allow potential customers to book viewings instantly. This cuts down the transition time from booking a viewing to getting it done and allows customers the luxury of making last-minute decisions to view properties in a neighborhood that they have liked. This minimization of time can be a defining moment for customers, which can lead to greater conversions.
AR and VR
Augmented reality and virtual reality are not novel concepts. In fact, they were quite the big deal this year, but 2019 is set to see more developments. These technologies have tremendous potential if utilized properly and marketed well. One popular trend that we can expect to see again in 2019 is simulated tours of houses using wearable VR technology. Potential home buyers can experience a real estate space virtually and be privy to the actual look and feel before the property has even been constructed.
AR and VR allowing people to take virtual tours of homes can greatly optimize the buying market by saving real estate agents and companies the time and resources spent in activities like open houses. It can enable buyers to make faster, better decisions and choose the most suitable property within a shorter period of time.
All-in-One Software Suite for Realtors
The current real estate solutions are all scattered. Realtors have to deal with multiple software, multiple logins, multiple platforms that may not integrate with one another.
Many vendors are talking about developing an all-in-one platform that will streamline work and create efficiencies.
All-in-one suite would typically comprise of CRM, Lead generation, transaction management, listing management, training, marketing, social media, personal financial tracking, brokerage commission, internal communication and what not.
An All-in-One suite would be a game changer and need to see who gets the first mover advantage.
If you are unfamiliar with this new model, here are the basics of the iBuyer model.
Instead of placing your home on the market with the help of a realtor, home sellers have an option of entertaining an offer based on the calculation of an iBuyer. The iBuyer backs the offer or facilitates a connection between a seller and an investor. This all sounds easy and convenient for the sellers, but these companies are equity stripping consumers and are by design out to make money. Companies like Zillow are not your friend.
The huge drawback of this model is that the offers are generally far lower than the market value in order to clear a margin when the investor goes to resell the property. The companies that are involved in this arena in many cases are attempting to make 40%+ returns on equity. These companies have enormously high costs of capital, in a low margin space, so they essentially have to take it from the consumer.
Many of the companies that currently offer iBuyer services and charge a commission as well. The commissions are typically higher than 6% and can go as high as 10%.
It would seem it is only a matter of time before regulators and the authorities like State Attorney Generals step in. These companies are working both as Principal and have agency fiduciary duties. It is impossible to separate both and that conflict must fully disclosed. Even with it being disclosed, they are hundreds of consumer protection Equity Stripping Laws.
Only time will tell if this model will mature in the coming years or is even legal as these companies try to play broker with agency responsibility and are out to equity strip the public.
If history is any indicator, I believe they will go insolvent before law enforcement moves in, civil litigation ensues and the public will be stuck with the bill.
Digitization is evident in the real estate industry; technology has already taken over, and it is here to stay. Using the latest technologies enables real estate agents and companies to optimize the experience for customers and facilitate processes and transactions. This also helps them save time and resources which can be utilized elsewhere.