The internet has revolutionised the property market – and the changes that it has brought with it are only accelerating as online marketing, mobile technology and distribution networks consistently evolve.
Customer journeys are changing. Researching the multi-faceted property market online is more convenient than ever, and perhaps even more significantly, it’s completely free.
The range and quality of properties available to view online has improved, as many store-based estate agents have been forced to adapt their business models to account for this change in customer behaviour.
However, no matter how important the internet is becoming for those buying, selling and developing property, it’s important to remember that estate agents, conveyance solicitors, and the expert services they offer are still essential, and the vast majority of sales do, and almost certainly will continue to, occur entirely offline.
What percent of home buyers use the internet?
According to an annual survey from the National Association of Retailers, in 2013, 92% of home buyers used the internet to search for a home, compared with just 71% in 2003.
The survey found that buyers are increasingly using the internet, rather than agencies, to initially find properties, but those that do then go on to purchase their home through an agent.
It’s information, then, that buyers are looking for online, rather than a service in its own right.
According to Steven Levitt, author of bestselling non-fiction book Freakonomics, before the boom in the internet, the estate agent was “the one with all the information: the inventory of similar houses, the recent sales trends, the tremors of the mortgage market, perhaps even a lead on an interested buyer.”
He goes on to say, however, that:
“The estate agent has seen their advantage eroded by the internet…anyone selling a home can now get online and gather their own information about sales trends, housing inventories and mortgage rates. The information has been set loose.”
Information then, is the main way in which the internet has changed the home-buying process. Its proliferation has made buyers more ‘savvy’; allowing them to do their homework on properties and areas they might be interested in, the market in general, and where they’re able to access finance before they waste time and money negotiating with industry professionals.
Technology then, allows for the distribution of information, but it’s the information itself that’s having an effect on property prices.
Technology and Estate Agents
When discussing the aforementioned survey with Inman News, Walt Molony, NAR spokesperson, said:
“While the vast majority of buyers use the internet during the home buying process, the internet does not replace the real estate in the transaction. In fact, buyers who used the internet were more likely than those who did not use the internet to purchase their home through an agent.”
Perhaps the most surprising statistic to come from the NAS study is that only 9% of sellers said they sold their home without the assistance of an agent (for sale by owner, or FSBO), down from 14% in 2003, with 16% of those using online classified advertisements and 13% using FSBO websites.
Technology, Buyers and Sellers
Again, the way in which technology relates to those buying and selling houses when it comes down to measurable figures, is information.
For example, according to recent research carried out by Rightmove, slow broadband speeds can wipe as much as 20 percent off the value of a property.
Whilst on the surface this figure is obviously reflective of access to technology, what it’s actually telling us is that the fact that people can now quickly and easily find out about broadband speeds in an area of interest is what’s affecting house prices.
At its most basic level, it seems that technology puts buyers at a more advantaged position than they’ve ever been before, and those selling property in a position whereby there is very little room to hide negative features.
Experienced Conveyancing Solicitors
Howells Solicitors is one of the leading conveyancing law firms in Wales and we pride ourselves on the high level of service that we provide our clients. Our dedicated team of experts are on-hand to make buying or selling property as simple and straightforward as possible.
