A lot has changed in just the last decade when buying or selling a house. New technologies have changed the landscape in which buyers buy and sellers sell homes.

Let’s take a look at some of the significant changes.

First and foremost, the internet has changed the face of real estate forever and that’s a good thing! Here’s why – Buyers and Sellers have access to more information than ever before via the internet and it makes them better informed consumers.

Buyers can now access information about properties that are multiple listed by most brokers 24 hours a day, seven days a week. Buyers have access to more in depth information about properties than ever before. Before the internet Buyers needed to have a real estate agent get in depth information for them. The real estate agent as gatekeeper to property information is a thing of the past. Print advertising is another source of information regarding homes for sale that buyers have traditionally used, but that is fast changing as well. Print advertising can’t compete with the internet. Real estate websites such as REALTOR.com and RE/MAX.com’s Mainstreet are national databases of homes for sale that contain properties represented by virtually all of the real estate Brokers within any given market. When it comes to accessing all of the listings in a given area, the internet delivers the goods far better than print advertising and it’s available anytime you want to pad into the den and fire up your computer. The internet delivers multiple photos, virtual photo tours, and details about the property in plain language, not hieroglyphics.

Additionally, there is a large amount of information available via the internet that covers a cornucopia of details covering all aspects of the home buying and selling experience. This information is available to Buyers from many sources including real estate company sites, such as RE/MAX.com, industry sites such as REALTOR.com, news site such as The Wall Street Journal’s REALESTATEJOURNAL.com, real estate agent websites and from Internet Service Provider websites such MSN.com. These are just a scant few of the sites offering real estate information and advice.

For Sellers, the internet has meant that more Buyers are coming to the door to preview and consider their home for purchase. The buyer may get a good enough representation of the property via the internet to decide whether they are interested in it enough to visit it in person. That’s a real time and gas saver! This along with the real estate industry upgrades to their multiple listing services is one reason that the recent real estate market had risen to such high levels of activity. The internet also brought us a new phenomenon, online mortgages. Competition among mortgage companies lead to lower rates and different loan products tailored to reach all facets of buyer profiles. Record low mortgage interest rates had more buyers in the market buying homes and reducing inventory levels. Buyers had access to more information and more quickly than ever before in history. Competition over fewer listings, along with record low interest rates led to higher prices which was very beneficial to Sellers. Even though the market has adjusted to a slower pace and inventory is rising, leading to a stabilization of prices, the internet has profoundly affected the way the real estate market will operate in the foreseeable future.

Many website start-ups have entered into the marketplace and injected themselves in the real estate transaction by trying to attract Buyers and Sellers to their websites in order to be the facilitator for their real estate needs. The Buyer or Seller signs up with the facilitator who in turn refers them to a real estate agent or mortgage banker who has also signed up with the facilitator as a service provider. Caveat Emptor, let the Buyer beware, many of these website facilitators do nothing more than act as a middle man to collect a fee. Additionally, service providers willing to pay the facilitator a fee may be doing so because of inexperience or because of greed for more business. In the latter of these, you may be confronted with a service provider who is too busy to work with you or you may be shunted off to someone they’ve hired who is inexperienced. Either way, the consumer may not be getting what they bargained for when they signed up. You may get a service provider who is perfect for you, however being master of your own destiny and making your own choice by dealing directly with the service providers will ultimately give you a better chance at selecting a service provider who can best serve your needs.

Inexpensive digital cameras have made their impact on the real estate industry by making multiple photos and virtual tours of properties available electronically.

Cell phones have made it possible to have better communications for everyone. Better communications allow for quicker responses and faster transactions.

Personal computers have driven much of what has come after their advent. I remember buying an IBM PC in 1982 and there wasn’t a lot of software available for it, nor was there the internet as we know it today. Think about all of the technology that centers around your computer today. A divergence of technologies is happening right before our eyes, as we watch our computers, cells phones, MP-3 players, television and many other devices melding themselves into one.

Real estate agents are still central to the sale or purchase of a property. Real estate agents have been keeping up with technological changes to better serve their customers and clients. Although a Buyer or Seller may have access to a plethora of information regarding properties and the process of buying a home via the internet, the real estate agent is there to interpret, provide advice, consult, guide, negotiate and prepare the contract of sale. Additionally, the real estate agent will oversee the transaction and all of the other people and industries involved in the transaction. There can be as many as 43 people and 14 different industries involved in a real estate transaction. That’s’ a lot of “i’s and t’s to oversee. An experienced real estate agent will see you through to a smooth and successful settlement and be there afterward to answer any questions or help with any concerns you may have.

Over all technological advances have made it possible for Buyers, Sellers and the real estate industry to interact on a higher level of effectiveness which has lead to the significant changes we have talked about here. The future will hold more changes and the next thing on the horizon is the electronic or paperless transaction. The entire transaction will be completed electronically and at the end of the process everyone will walk away with a storage device holding all of the documentation for the transaction. But don’t worry even though funds can be wired electronically into an bank account, the venerable proceeds check will probably hang on by popular demand!

See you in the future!

Charles Kraus, GRI
Associate Broker
RE/MAX Experts
Annapolis, MD