id was set in the arguments array for the "Sidebar" sidebar. Defaulting to "sidebar-1". Manually set the id to "sidebar-1" to silence this notice and keep existing sidebar content. Please see Debugging in WordPress for more information. (This message was added in version 4.2.0.) in /home/ronnyell/domains/oddfamily.co.uk/public_html/wp-includes/functions.php on line 5865__construct() instead. in /home/ronnyell/domains/oddfamily.co.uk/public_html/wp-includes/functions.php on line 5506__construct() instead. in /home/ronnyell/domains/oddfamily.co.uk/public_html/wp-includes/functions.php on line 5506__construct() instead. in /home/ronnyell/domains/oddfamily.co.uk/public_html/wp-includes/functions.php on line 5506__construct() instead. in /home/ronnyell/domains/oddfamily.co.uk/public_html/wp-includes/functions.php on line 5506__construct() instead. in /home/ronnyell/domains/oddfamily.co.uk/public_html/wp-includes/functions.php on line 5506__construct() instead. in /home/ronnyell/domains/oddfamily.co.uk/public_html/wp-includes/functions.php on line 5506__construct() instead. in /home/ronnyell/domains/oddfamily.co.uk/public_html/wp-includes/functions.php on line 5506__construct() instead. in /home/ronnyell/domains/oddfamily.co.uk/public_html/wp-includes/functions.php on line 5506__construct() instead. in /home/ronnyell/domains/oddfamily.co.uk/public_html/wp-includes/functions.php on line 5506__construct() instead. in /home/ronnyell/domains/oddfamily.co.uk/public_html/wp-includes/functions.php on line 5506While the Silicon Valley is still the technology hub of United States \u2013 and from the look of things, it\u2019s going to stay for decades to come \u2013 it doesn\u2019t mean things aren\u2019t happening all across the country. In fact, real estate startups are starting to pop up around the US.<\/p>\n
And with CBRE\u2019s acquirement of Floored<\/a> back in January, it not only shows that real estate startups are starting to reach a maturation point, but also that technology is finally starting to make some waves in the real estate industry.<\/p>\n For your average home buyer, the impact of technology on the real estate market is still not exactly visible \u2013 but trusts us, it is in fact there. You just need to squint a little bit to really see it. However, unlike in many other industries out there, consumers still heavily rely on other people rather than applications to find what they want.<\/p>\n According to NAR\u2019s Real Estate in a Digital Age report<\/a>, people work with a real estate agent roughly 88% of the time to find a property they want. Although the initial process may start online, people still turn to the advice from a trusted agent when it\u2019s decision-making time.<\/p>\n And that\u2019s just one of the reasons why the housing market has been so resistant to changes. Here are a couple more reasons why people strain from technology in this particular industry:<\/p>\n In addition to the reasons we listed above, the market in the United States pretty much different from any other market in the world. For instance, thanks to the intervention for the US government, the fixed-rate mortgages are almost universal in all of the states and locals, which is not so common in the rest of the world.<\/p>\n And that\u2019s not all. The Mortgage interest-tax deduction is also a valuable part of country\u2019s tax code and last but not least, the standard 6% commission for brokers<\/a> in the country is much larger than in any other country out there \u2013 which you can see on the international property catalogue Tranio<\/a>. Basically, our market is inefficient to say the least.<\/p>\n You\u2019re probably thinking, since people are so dependent on real estate agents and since the market is so specific, the housing market will stay the same for a long time, right? Wrong\u2026 You\u2019re about to see that the housing market is not only ripe for a tech disruption but that some changes have already begun. And here are a couple of things you should have in mind:<\/p>\n This is not a new issue by any stretch of imagination. For example, just take a look at this 2005 Times article<\/a> that talks about a variety of flat-fee and even about the possibility of discount brokers. And these complaints about the broker fees continued well into 2010s.<\/p>\n Two years ago, the Washington Post reported on the DANGER report<\/a>, which rocked the whole industry with the acknowledgement that people are now demanding lower rates and that brokers all across the US are responding to the demand with new pricing models that are expected to become common in the next 5 to 10 years.<\/p>\n While people still need a real estate company to discuss the details of the purchase \u2013 especially when it comes to a commercial property<\/a>, which tends to be more complicated – information out there, people simply need less from real estate agents. Simply put, agents are less essential than they\u2019ve been before.<\/p>\n According to a 2015 NAR survey<\/a>, around 40% of first-time buyers look for properties online as a first step in the home-buying process. But the Internet is just a part of the story \u2013 ever since the introduction of the iPhone, home-sale data has been set free.<\/p>\n You know the saying \u2013 if it exists, there\u2019s an app for it \u2013 and today, you can find a number of useful real estate apps like Zillow, Redfin and a dozens of others with just a few clicks. What\u2019s more, these apps can help you right there on the spot, while you\u2019re still looking at various properties.<\/p>\nWhy Did We Wait for So Long?<\/h2>\n
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The State of the US Real Estate Market<\/h2>\n
The Disruption Has Already Begun<\/h2>\n
\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The Demand for Lower Commission Rates<\/h3>\n
\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The Upsurge of Real Estate Apps<\/h3>\n