Whether one wants to admit it or not, mobile technology has found its way to virtually every single industry in the world. Meaning, it would be pretty much impossible to think of a sector where technological advancements have not made a noticeable impact in the recent years.
When it comes to luxury real estate in particular, the number of ways in which technology and mobile connections have improved the market is almost unparalleled. One could even argue that this is where both buyers and sellers have been able to enjoy the greatest benefits. Why? Because technological inventions have made this market more accessible, efficient, and effective. To better understand the concept, below are some of the most important changes.
Finding the Perfect Property
In the past, individuals looking for a new property to invest in would have to spend many hours researching areas, historical patterns, and communicating with experts. Although a lot of these steps are still crucial to success, the work has become much easier. For instance, instead of spending days visiting different brokers and communicating with various sellers, one can effortlessly scroll through pages of offers made on real estate apps. Doing so saves time and a lot of resources that would normally be spent working remotely.
Besides finding the perfect property for one’s investment, establishing a line of communication with the seller/buyer has never been as easy. While most people still rely on real estate agents to handle these tasks, there has been a push for moving towards decentralized systems without the middlemen. This would mean that buyers and sellers would communicate directly to each other and avoid paying the six-percent realtor fee.
Additionally, technological improvements have given birth to trends like remote open-house viewings where the owner does not even have to be present. How is this done? By using assets like modern locks that people can unlock from a distant location in order to let their potential buyers in to “take a look” at any time.
Timeliness in a Fast-Paced Market
Having to go through an independent real estate agent often results in delays that prolong the total amount of time spent between listing the property and closing the sale. Although these types of delays are often marginal, they can accumulate to a considerable wait time that the buyers resent. So, as mentioned, the elimination of the middlemen would help with the timeliness concerns. Consequently, investors may be able to close transactions faster and move to other properties without losing money due to downtime.
According to the managing partner of Highridge Development Co., Dennis DeGrazia, transparency concerns are some of the most worrisome issues that arise in the field of real estate. Once the luxury factor is added to the equation, the concerns become amplified by the skyrocketing increase in prices. So, where exactly did these types of issues come from? Well, real estate prices are often subjective in nature and come from the sellers’ intrinsic valuation of the property. Although people can negotiate until they reach an acceptable exchange, doing so takes a lot of time and effort.
With mobile inventions, sellers are held to a high standard that practically forces them to avoid overestimating values. More importantly, real-estate-based apps are usually cross-referenced with historical data. Meaning, buyers cannot go above and beyond the norm for their market because the sellers will see these attempts just by glancing over the similar property values. Hence why Dennis DeGrazia classifies the improvements made in this area as some of the most relevant changes that the spheres of luxury real estate have seen.