Saving Money: Disruptive Technology In Real Estate
Over the last decade, new technologies have brought about many “disruptive” innovations that have resulted in tremendous changes for the industries they’ve affected.
New emerging technologies are revolutionizing our world, and along the way will inevitably render many industries obsolete. Consider how digital content took the place of Blockbuster and Uber, who is changing and challenging the taxi industry.
Airbnb has disrupted the hotel and tourist industry, and now the real estate industry has also become vulnerable to information-driven disruption.
Diminishing value has hit the real estate industry. With online resources like Zillow, Redfin, and Realtor.com, there’s less need for a real estate agent to provide consumers with information that is now readily available to them online.
The shift has taken place and there is pressure coming from consumers, why pay 6% commission when you can list your home for less. Ten years ago real estate agents were the gatekeepers to all things real estate, but now that consumers have access to that information.
The role of the real estate agent has become that of the trusted adviser. The need for real estate agents that don’t provide anything of true value is diminishing rapidly.
This isn’t to say that real estate agents aren’t needed. They certainly are. Knowledgeable and professional agents offer a wealth of value.
The Market Has Spoken
According to the National Realtors Association, (NAR), 2018 National Report on Home Buyers and Sellers, “74% of buyers from all generations frequently use the internet to search for a home.
Ninety-two percent of buyers 37 years and younger frequently used the internet during their home search process. Millennials are the number one demographic as homebuyers and the first place they go for information is to the Internet.
Real estate service companies are cropping up from everywhere to accommodate that shift. Today just about anyone knows, that an online search will quickly show properties that are for sale in your area and what their value.
Often, the homebuyer is already privy to this information before they ever meet with a real estate agent.
Ripe For Change
Disruptive real estate technologies and consumer acceptance of them have grown exponentially over the last decade. The real estate industry is struggling to keep up with the changing tide but, like other industries, it will learn to adapt and survive.
The need to pay an agent a 6% commission is changing just as an agents role is changing. As home sellers take over more of the selling process agents will need to adapt to their new roles as an adviser and consultant.
Empowering The Consumer
While the full impact of the digital revolution on the real estate industry has yet to be seen, there is a strong movement towards empowering the consumer. As people continue to access the internet and gather the data they need online, it will continue to reduce the need for the middleman.
1 Percent Lists has found a way to utilize these “disruptive” technologies to evaluate property and neighborhood data to provide consumers access to information and services previously provided by an agent.
This allows us to cut out the middleman and pass the savings along to you, the buyers and sellers.
For more information about buying, selling, or any questions you may have, contact your local real estate agent.