Business & Investment

New Standard: What if the transaction wasn’t too tedious?

“New Normal” is a multi-layered Inman series that explores what will never be the same as what returns to normal after a pandemic declines.Will not you join June 15-17 When having a live conversation at Inman Connect..

I got a business and then I’m doing business. That’s why in real estate, agents’ income is justified. It’s difficult to close a deal.

National Association of Real Estate Agents (NAR) April 2021 Reliability Report He said 9% of home sales were canceled and the majority of all transactions (76%) contained contingencies.

There are many things that cause real estate transactions Challenge or collapse, Including but not limited to:

  • Negotiations on repairs
  • Anxious buyer or seller
  • Financially unstable buyers
  • Title concerns
  • Bad evaluation
  • Physical condition of the house
  • Property boundary dispute
  • Definition of fixture

Still, the industry continues to do business in the same way by supporting buyer-centric protection that invites as much risk to the sacredness of trading as it is trying to avoid.

Maybe the way we’ve always been isn’t the best way to do it. In other words, if real estate Transactions may not be too tedious??

We are in the age of hyper-aware buyers and sellers. The former is armed with a large amount of market and housing data, and the latter has multiple non-traditional companies that can be hired to liquidate homes, each of which is “always the way” It becomes clear as a result.

All in all Invisible offer, IBuyer sales, knock home swaps, and unforeseen contracts that decorate the seller’s inbox take another foundation from the traditional sales foundation.

Agents need to rethink how services are marketed, and brokers, associations, and even NARs need to be serious about rethinking how value propositions are communicated. This is the reason.

Smarter buyers, smoother trading

A new, hassle-free transaction begins with the buyer. It’s not just about escrow automation.

Increased buyer comfort in making proposals to avoid inspection and financing contingencies, and multiple property visits (or single visits), can lead to shorter escrow periods and, in turn, rampant sales. Reduce the number of possible risks.

It ’s everyone ’s data.

“In a new normal,” Inman wrote. Contributor Cara Ameer“Trading keeps moving fast, with buyers doing most of the legwork in home hunting, resulting in less traffic and faster decision making.”

Today’s home hunting process is primarily done online by buyers. This is best because it has evolved into an exercise on who can send the same list to whom first. The value of the agent in this first step has dropped significantly.

Other than properties scheduled to be released soon or In-house pocket list Buyers and agents can access the same market data (if allowed). You no longer own the data, everyone owns it, but that doesn’t mean who the buyer cares about.

Marketing empowers consumers

From portal to Pinterest, and from dynamic Facebook ads In automated marketing, buyers are endlessly flooded with list and real estate market data. Of course, it’s smarter than ever.

Buyer agents should consider marketing that message. Stop trying to beat the system and allow buyers the freedom to use the information given to help both parties reach their home decisions. Call it Socrates’ customer relationship.

After all, the ultimate value of an agent is application Of the data. Consumers need help understanding terms and conditions, Negotiation tactics How market dynamics affect your offer strategy. Please be there for that.

Digital comfort

The overall comfort of a buyer in a digital workspace leads to multiple ways to facilitate trading. Virtual tour, Sharing lists with family and friend groups, online meetings, and even online neighborhood surveys can save you time in the car, reduce questions, and speed up offers.

Obviously, digital signatures and documentation are at the center Digital transaction..

“Electronic signatures allow buyers to sign an offer form and return it to an agent within minutes,” Ameer wrote. “In today’s highly competitive market, minutes are important because agents have very short deadlines to submit offers.”

Make that offer shine

You no longer have to worry about what needs to be fixed and who pays the closing costs. The offer is completed with less ink than ever before. This is not because the majority of offers are digital.

Its highly competitive market, as Ameer mentions, is how buyers do business. What the seller accepts.. It’s time for agents to accept these changes as useful to all parties.

Clean Offer — A term derived from a “low ink” offer with little contingency indicates to the seller that the buyer is working on a hassle-free sale. Remember that the contingency of an offer exists to protect the buyer and always give the seller another issue.

Is the test still important?

Buyers are also smarter than ever, and the protection provided by contingencies is addressed by learning from due diligence periods and seller disclosures.

When due diligence and seller disclosure are enhanced by a wide range of technology-backed tools and services, there is little information that buyers can’t learn about a home.

As I wrote in this article With an invisible offer, industry vendors have made real estate data their own industry. It’s a scary border, but a good way for agents to learn about and share their homes and their locations.

In addition, it has become more common for sellers to pay for inspections before they hit the market, giving buyers a reason to eliminate the contingency of inspections. In such cases, it’s a long time ago that buyer agents stopped recommending buyers to hire their inspectors for fear of the seller hiding something or committing fraud, so that’s what the buyer should do. We advise you to consider the inspection as saving hundreds of dollars.

New company, new deal

Many new businesses are emerging to help consumers move faster, get rid of contingencies, and increase purchasing power. They are quickly simplifying transactions.

In the Inman Connect Now session Financing turmoil: what’s next, Moderator Clelia Peters, focused on Orchard, Fly Homes, Ribbons, Knock and Home Lights and discussed companies that will lead the future shift in home trading methods.

“There are two models or goals that these companies want to achieve: either turn the buyer into a cash buyer or the seller into a buyer,” Peters explains. “They make their money through spreads, or the value of the house when they buy it, and the price, or the premium paid to use this service, for the value when they sell it.”

Knock is a company that allows sellers to buy a home before selling it. Called a “home swap,” it has grown to 40 markets in two years and has blown away the company’s original goal of entering 21 markets by 2021.

CEO and co-founder Sean Black is not shy about the future of real estate trading. He told Inman Matt Carter He sees a “trading revolution” and buyers and sellers demand and get greater transparency, liquidity and convenience.

HomeLight is another entity Contributes to Black’s vision.

“HomeLight’s cash offer program buys homes on behalf of homebuyers, so you’ll get a mortgage loan and never miss a dream home,” Inman’s said. Marian McPherson wrote..

According to McPherson, consumers can combine the HomeLight Cash Offer with a trade-in program. This program buys a seller’s home at 90% of the expected value of a home on the open market.

Knock, HomeLight and others have pointed out that they have not removed the agent from the transaction, claiming it is not an “iBuyers”.

One of the reasons Knock is in a great position, according to Black, is that he and COO and co-founder Jamie Glen are trying to build a platform that makes it easier for realtors to serve their clients. However, it still depends on their opinions.

Nonetheless, knocks, home lights, ribbons and more are making a big positive difference to the market by flattening transactions. Most notably, it integrates transaction services to reduce trading friction.

See you in the middle

Know that these companies are planning to grow. They want to make a difference in places where there are plenty of opportunities. And now that place is residential real estate, the biggest opportunity is clearly the way transactions take place.

Agents should consider proactively coordinating marketing with messages that emphasize their knowledge of how to make transactions quickly and easily.

Learn about alternatives and other technology financing to help you close a deal. We also create marketing campaigns targeting cash buyers and establish our position as an invisible offer expert. Learn as much as you can about which contract structure provides maximum protection for buyers and minimal hassle for sellers.

Do not wipe out this movement as an anomaly caused by a pandemic. Agents should do so, as Wall Street is making big bets on the prospect of facilitating real estate transactions. If Amazon tells us something, it means that the convenience of transactions determines the purchase decision.

Why is it different to buy a house?

Email Craig Rowe

New Standard: What if the transaction wasn't too tedious? New Standard: What if the transaction wasn't too tedious?

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