The real estate industry is changing. We live in a tech-infused world that is changing how we do business. There are new systems and tools, and advanced technologies and new platforms are cropping up every day. Artificial intelligence and iBuyer business models are reshaping the industry landscape.
With these innovations comes increased options and avenues for buyers and sellers. For example, iBuyer models use an algorithm and a “proprietary valuation model” to arrive at market value for a property. They then make an offer directly to the homeowner. If the offer is accepted, the iBuyer then takes possession of the property and later re-sells the home. Of course, there are conditions, including inspections. There are also fees, typically ranging from 6% to 8%, perhaps more. And, the owner doesn’t get the benefit of full market exposure, thus foregoing the opportunity to market for full and best price. Still, it might be an option for some Sellers who want the assurance of a sale.
With this increased evolution in the market, consumers and Realtors need to stay informed. Carefully measure and compare options. The key is to do the research and to be fully aware of all of the costs and details involved. And, most importantly, it’s important to understand that technology does not replace the role of a trusted adviser. The strongest value of a Realtor is bringing human understanding and empathy to the transaction. Buying and selling real estate is not an easy process. It is complex, and it is emotional. Truly.
Yes, innovation is a good thing. New models and technologies increase options and result in more efficiency. But, real estate remains a relationship business. Technology doesn’t hold the hand of the widow being forced to sell her family home. Systems don’t provide emotional support to a Seller under water or a Buyer trying to navigate a first-time home purchase. Artificial Intelligence in real estate can help with data collection and provide predictive analysis, but what about understanding the nuances of a neighborhood? The value of a community?
Relationships and Trust Always Matter
As new and innovative models, platforms, and technologies evolve, consumers will have more choices. But, the need for a professional to navigate the complexities of a real estate transaction will only increase. Building relationships and trust, providing guidance and good counsel, and close up and personal interaction remain key components to a smooth and successful real estate transaction.