"The Housing Market Is Ripe for Tech Disruption
The process of buying and selling a home in the U.S. is needlessly inefficient. That will inevitably change.
Bloomberg View, May 31, 2017
A colleague just had twins and is looking for a larger home. He wondered aloud “Where is Silicon Valley in the real estate world?” For those buying or selling a house, the impact of technology may not be especially visible.
But it is there. You just have to squint a bit to see it. Extrapolate the trend a decade out into the future, and the impact will become much more obvious.
Why has the housing market been so resistant to change? There are a few factors that buttress the status quo:
• Real estate is local; knowing the neighborhood has value;
• The broker has a monopoly on listing information through the Multiple Listing Service;
• Information asymmetry: people don’t understand their options and what they can and can’t do;
• Complexity of mortgages, contracts, closings, makes buyers and sellers comfortable working with an agent, even if it is expensive.
The process of buying and selling a home in the U.S. is needlessly inefficient. That will inevitably change.
Bloomberg View, May 31, 2017
A colleague just had twins and is looking for a larger home. He wondered aloud “Where is Silicon Valley in the real estate world?” For those buying or selling a house, the impact of technology may not be especially visible.
But it is there. You just have to squint a bit to see it. Extrapolate the trend a decade out into the future, and the impact will become much more obvious.
Why has the housing market been so resistant to change? There are a few factors that buttress the status quo:
• Real estate is local; knowing the neighborhood has value;
• The broker has a monopoly on listing information through the Multiple Listing Service;
• Information asymmetry: people don’t understand their options and what they can and can’t do;
• Complexity of mortgages, contracts, closings, makes buyers and sellers comfortable working with an agent, even if it is expensive.
Link to original complete article:
Why Hasn’t the Internet Disrupted Real Estate? - The Big Picture:
Thank you for viewing the Incline Village Real Estate blog. If you require additional information or discussion contact me via Randy@RandyBull.com.
Why Hasn’t the Internet Disrupted Real Estate? - The Big Picture:
Thank you for viewing the Incline Village Real Estate blog. If you require additional information or discussion contact me via Randy@RandyBull.com.
