How Technology Is Transforming Today's Real Estate Market
posted
on Friday, June 26, 2020
in
Realtor News
Social distancing and stay-at-home orders have posed unforeseen challenges on the quest for home ownership, but digital solutions are coming to the rescue.
LEVEL UP! A NEW WAY TO HOME SHOP
Online House Hunting
- Page views of homes for sales on Zillow: up 18% YOY week ending April 151 - Following a 19% decline YOY decline mid-March
Pre-Recorded Virtual Tours
- Consumers say virtual tours are the most helpful tech feature in the home search2
- 24% of homebuyers would buy a home without seeing it2 - Higher among buyers ages 18 - 34 (31.3%)
Live Video Tours
- Requests for agent-led video home tours on Redfin: up 494% week ending March 223
3-D Walk-Throughs
- Creating of 3D walk-throughs on Zillow nearly doubled in March4
- About 25% of recent buyers prefer 3D tours to in-person viewing4
Livestream and Virtual Open Houses
- Brokerages and listing sites are adopting live stream open houses
- 22% of REALTORS® have had sellers switch to virtual open houses5
Most popular tech used to connect with clients:5
- E-signatures
- Social Media
- Messaging Apps
- Virtual Tours
DIGITAL SOLUTIONS. KEEP THE MORTGAGE PROCESS MOVING
Appraisal and Inspection Alternatives
- Fannie and Freddie temporarily accepting desktop appraisals
- Home inspections being conducted via video conference
Remote Online Notarizations (RON)
- 45 states allowing RON6* either permanently or temporarily as of May 1, 2020
E-Notes
- Electronic promissory notes hit all-time high in March 20207 (24,519 e-notes registered with MERS)
- Borrower demand for a digital mortgage process was up 18% B.C. (before Coronavirus) 8
- 47% of borrowers want to upload documents electronically in the mortgage process8
There's no telling when or if things will return to "normal," but one thing is clear: Technology has the power to redefine the way we buy and sell real estate.
*State RON rules may fluctuate and should be reviewed often.
[1] Zillow, "Web Visits to For-Sale Listings Rebounding as Spring Unfolds," April 2020.
[2] Realtor.com® Survey, April 2020.
[3] Redfin, "Video Home Tour Requests Soar Nearly 500% in One Week," March 2020.
[4] Zillow, "Creation of 3D Home Tours Soared in March as Stay-at-Home Orders Expanded," April 2020.
[5] National Association of Realtors® (NAR) Flash Survey: Economic Pulse, April 26-27, 2020.
[6] National Notary Association, "States Take Emergency Action On Remote Notarization And Signers' ID."
[7] National Mortgage News, Mortgage Electronic Registration System (MERS).
[8] Ellie Mae®, 2019 Borrower Insights Survey.