Three Limitations of Real Estate Tech
We’ve got some good news and some bad news, folks. The good news? There are now more online tools available than ever for people interested in buying or selling a home. The bad news? These tools cannot account for variations that can substantially alter the price and are not regularly updated, giving many users unreliable information. If you’re someone who loves to browse the market from the comfort of your own home, we understand. However, if you plan on taking it a step further and are a serious buyer or seller, these websites should not take the place of an experienced Realtor®. Still not sold? Here are three issues you can avoid by working with an agent who understands the intricacies of your situation:
#1 Inaccurate Data
For Sellers: An algorithm cannot accurately predict property value. Why? Because online estimates are calculated by information found in public records and what was entered by the user. Unfortunately, what this formula leaves out is a property’s assessed value, which can vary significantly from market value. Often these websites make predictions based on the price the home was last sold at, but that does not give an accurate snapshot of what the home is worth now.
For Buyers: Many homes listed on these third-party websites are no longer for sale. In fact, it’s possible they sold only days after they were listed, but the website has made it appear otherwise. Additionally, you can never be sure of who the agent is you are contacting through these websites. Many listings say “contact seller’s agent” but in actuality, any licensed Realtor® can pay to be listed on these websites, contributing to even more misleading information that can slow you down on your search for your next home.
We encourage buyers and sellers to do their own research and aim to educate every client we work with. If you receive an estimate of your home from a real estate website and you want to verify its accuracy, bring it to us! We are here to help.
For an accurate estimate of your home, always consult with a Realtor® and an appraiser.
#2 False Hope
We’ve all fallen for a too-good-to-be-true scenario while browsing the internet, but it can be especially upsetting when it happens to you while you are looking for your next home. Real estate websites are notorious for housing outdated information, leading many serious inquirers to believe a home is still on the market when it has already been sold, or a home has three bedrooms when it actually has two—the list goes on and on. A home is one of the most important investments you will ever make, making the importance of accurate and reliable data paramount. Let us handle the data so you can focus on making your next move.
These websites can be great exploration tools to help you get a sense of what you are looking for, but everything beyond that should be discussed and planned with a Realtor® to ensure you are receiving accurate information.
#3 Unwanted Communication
Bzz bzz! Hear that? That’s your phone after entering your information on a third-party real estate website. It’s possible you were minding your own business, browsing homes on your smartphone, and then...boom! You’re now on a contact list you never wanted to be on. We’ve all been there. As we mentioned earlier, hundreds and thousands of agents pay to be listed on that website, meaning your information was just shared with a lot of agents you may never get the chance to speak to. When you work with a Realtor®, they will set you up with a home search with listings that fit your criteria and are still available. That way you don’t have to worry about being contacted day in and day out by someone you don’t know that probably doesn’t have a clue what you are looking for.
Stop receiving sales calls. Save yourself time by getting a list of homes directly from your Realtor® that fit your wants and needs.
Use third-party real estate tools to…
BROWSE, not to buy.
SEARCH, not to sell.
When you are ready to take your next step, you know where to find us.
