Influence of Technology on Real Estate Market
In recent times, advancements in technology and the digital revolution have impacted our lives in more ways than one. Today, social media, web communications, e-commerce, etc, have influenced our lifestyle, the way we work, shop, etc.
The technological revolution has had a profound effect on the real estate market as well. The greatest difficulty faced by property sellers a few years ago was that they could not connect with buyers on their own. The only way for a property seller to reach out to prospects was through an agent. But online facilities and Apps have helped property sellers overcome this difficulty. They have introduced a quick and effective means of communication. Therefore, today, engaging the services of an agent is a matter of choice, not a compulsion.
The real estate market is now becoming ‘digital’. The reason being, property seekers are tech-savvy now and prefer to search properties online. This has motivated property owners to sell their property online.
Online selling entails listing the property on a property portal and marketing it on the internet. Listing a property implies uploading description, pictures and a virtual tour of the house. Once a property is listed, seekers can view it online and connect with sellers. This method of selling creates a direct channel of communication between property owners and buyers. This has given more options to property owners regarding the means they want to adopt for selling.
- They can sell their property by engaging an agent for end to end services.
- They can engage an agent to support them through specific stages of the sales process.
- They can sell the property themselves completely eliminating the agent.
The benefits of selling a property online to the seller:
- He can list it on a website from the comfort of his home. He does not have to visit real estate agents.
- Online facilities provide him more flexibility to advertise his property. He can upload a large number of pictures. He can upload a virtual tour of his property. There is no limitation on the number of words used to describe the property. He can highlight special features online.
- Online services are available 24/7. Therefore, the owner has the flexibility to modify the uploaded data at any time as per his convenience.
- Property owners today can use various social media platforms such as Facebook, Twitter, etc. to advertise their property.
- They have the option of multiple listing on online property portals.
- All these measures enhance the visibility of the property and enable sellers to find buyers easily.
- Selling a property using online methods is the fastest and most economical way of selling.
- Online methods enable the owner to explore the option of DIY selling. This has certain advantages for the owner such as:
- It gives him more control over the sales process.
- He can directly deal with the prospects and negotiate the price without involving a middleman.
- Since he does not have to pay a brokerage, he can offer a better price to buyers.
- He is able to save substantial amounts of money, which he would have paid as commission to the agent.
Online property methods hold benefits for property seekers as well:
- Property seekers can browse through the websites easily from their homes.
- They can save their time, effort and money by using online methods. This is because:
They can apply various filters and search properties that will fulfill their needs. For instance, they can sort by price or number of bedrooms, location, etc.
Online pictures and videos give a good idea about different properties. This enables them to shortlist properties without actually visiting the premises.
It is more convenient to compare different properties.
- Instead of visiting a number of properties for selection, they can visit only the shortlisted properties.
- Online means have made it possible for seekers to avoid an agent and connect directly with the seller. This helps them save on the agent’s commission.
- They can access the property portal at any time convenient to them.
- Investing in properties in a different city has become easier because relevant information can be accessed easily on the internet.
As we can see the digital revolution, has made it more convenient to buy or sell a property. It has had an impact on the role of real estate agents. Their roles are now diluted and commissions are reducing.
Property owners, armed with the facilities available on the internet, have become more confident of selling a property on their own. This has brought in a trend of more and more property owners moving towards FSBO.
So, we can see that online methods for dealing in property are mutually beneficial for the sellers and buyers. We can conclude by saying that “Digital Revolution has led to Real Estate Evolution”.
Awareness about the property is created by listing it on property portals.
Awareness about the property is created through newspaper ads, distributing fliers putting up 'For Sale' boards.
Marketing is convenient as it can be done by uploading attractive photographs and videos about the property online.
Detailed marketing plans need to be made. It takes a lot of effort to make an impact on the prospects.
It is a convenient method to reach out to prospects at a low investment.
Reaching out to buyers involves expenses and is difficult.
It is a faster method of advertising.
It is more time consuming.
It is easy to reach out to buyers beyond one's locality.
The reach is limited to one's locality.