How Real Estate Agents Can Guide Clients Through a Seamless Buying Process

Companies looking to use technology to add transparency and reduce friction in the home buying process are particularly helpful now, experts said at a virtual Inman Connect Now event.

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Real estate agents and brokers should align themselves with companies that use technology to reduce friction in real estate transactions, two entrepreneurs working in the industry said Thursday.

Homebuyers have seen a rapid shift in the market from rising mortgage rates to inflation and high house prices. Transparency in home financing is much more important now than it was six months ago.

To make the process generally as easy as possible, agents and other professionals involved in home buying transactions would benefit homebuyers by pairing them with tools that provide access to useful information, after finding the best home buying plan. funding.

This is what Patrick Boyaggi, CEO of Ownand Patrick Burns, CEO of Sprucesaid during a virtual Inman Connect Now event hosted by Clelia Peters.

“If you’re a real estate agent or broker operating in the industry right now, I think aligning yourself with an ecosystem of companies that you know have a digital strategy…to reduce costs over time. time is probably a good place to be right now,” said Burns, whose company acts as a third party to perform title search, policy, settlement and escrow for buyers.

Patrick Burns

No company can do anything but incremental changes in the industry right now, Burns said, but with such rapid changes in the market, real estate professionals can find ways to adapt and adapt. ‘deliver significant value to their customers in today’s landscape.

“There’s not just one story here like rising interest rates,” Burns said. “We also have high and rising inflation. We have rapid changes in home price appreciation. And we have a lot of changes in the way the home buying process unfolds.

This places an additional burden on real estate agents, brokers and back-end service providers to help homebuyers through a difficult time.

“If you’re a first-time buyer, you’ve probably never experienced an environment like this before,” he said. “Being able to provide a bit of perspective and a bit more of that advisor-to-advisor relationship is critical now, if not more than ever, certainly over 12 months ago.”

Patrick Boyaggi

The changes over the past 12 months have been drastic. Prices have more than doubled. House prices have generally remained high. So companies trying to reduce opacity and give homebuyers more transparency across the whole transaction process can be especially helpful right now, Boyaggi said.

“When rates were at historic lows, many people looked at the difference between a 2.5% 30-year fixed rate mortgage and a 3% 30-year fixed rate mortgage and couldn’t care less. frankly didn’t really care. The difference was negligible. Therefore, they went with the first lender they were referred to,” he said.

In the current environment, homebuyers are becoming more wary of home financing costs which have reached record prices with mortgage rates also skyrocketing.

“They’re no longer just accepting the first referral to a lender they’ve worked with in the past,” Boyaggi said. “Instead, they’re hyper-vigilant about where they get their mortgage and the closing rate and costs.”

Companies like OwnUp and Spruce are looking for ways to introduce technology in a meaningful way to reduce friction in real estate transactions, he said.

They won’t be able to provide new financing products or ways to make homes significantly more affordable, he said.

“One of the ways you do that for the consumer is transparent display of data,” Boyaggi said. “Information asymmetry is what creates anxiety among consumers.”

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