Real Estate may seem like the most boring of commodities to concentrate on. The housing industry is approximately 1.6% of GDP in the United States annually. That translates to about $337Billion last year. That is up 16.7% year-over-year. https://www.calculatedriskblog.com/2021/01/q4-2020-gdp-details-on-residential-and.html That type of concentration of wealth gets big corporate eyes wondering if they can manipulate a market to their advantage. This results in an ebb and flow of better and worse services and pricing for the consumer.
The likes of Warren Buffet and every other major wall street players decide it is a good idea to develop an app and start changing the way in which people take their houses to market, and search for their next property. This created what the industry refers to as “ibuyers”. https://www.zillow.com/sellers-guide/what-is-an-ibuyer/
Zillow, redfine, knock, open door, all are just some of the many versions of ibuyers in the market place. Will some of these entries starting out as a resource to work with agents, then quickly flipping the business model to create their own agencies and develop a much more automated experience. This has many benefits to the industry and the consumer.
Ten years ago, most would not have been able to click on one of these ibuyer platforms and gotten a reasonable idea of what their property is genuinely worth. While someone can do this today, and even go so far as to market and sell your home directly through the ibuyer, the reality is that the ibuyer is currently, still not close to the market and understand the uncommon characteristics of the commodity they run their algorithms on.
Yes, by having the ibuyer programs out there, people are now selling their home’s “with no showing, no hassle” and without all their equity. The ibuyers come across with genuine offers, that more often than not fall into the same old story of offering lower than real market value, taking chargebacks for repairs and deferred maintenance. And still have some service fees that seem to add up to you not quite getting what you expected to.
This creative industry has caused the traditional real estate professional to work smarter and respond quicker than ever before. In this current market, because there are alarms simultaneously going off on thousands of smart phones telling everyone the home of their dreams finally hit the market, it creates a market that seems too hot to handle. The showing calendar seems to instantaneously book out for the next two days and the offers come in before people get their opportunity to view the property.
Having an agent that understands how these technological advancements help and hurt their customers is important. Knowing when a property may not appraise for the amount that the seller is asking is extremely important because a bank will only loan the amount it appraises for. This may cause a buyer to come out of pocket cash at closing to honor an offer.
While digital law services have helped a few small businesses navigate relatively simple activities like filing incorporation papers, you would not go into a court room with zoom legal or 1-800-lawyers.com. Having a local lawyer who knows the judge, knows the prosecutor and their tendencies, is the way to make sure your day in a stressful situation goes smoother with less surprises.
Automation has streamlined the purchasing process, like all other industries. Dot loop, zoom, automated fast-fast-yesterday timing on loan approvals is something that is standard. All of our partners are used to operating in that speed so that you benefit from being the most prepared to win the home of your dreams when it appears.
Please consider The McElreath Team with your most precious asset. Our purpose is connecting people with community.