Artificial Intelligence and machine learning technologies are quickly becoming a normal part of our world. In our work, school, and personal lives, algorithms are all around us. Specifically, the real estate and mortgage industry is utilizing this technology for every step of the homebuying process.
The home buying process begins with a simple search on Google. From there, you are scanning through listings that are in your area. Ten years ago, advanced local real estate listing websites were nonexistent. Today, we can view our cities entire inventory in minutes. While companies like Zillow and Redfin have dominated the real estate search engines, local agents are beginning to roll out their own IDX websites. This is a big win for the consumer for one simple reason: you can leverage this advanced technology with a local agent you trust, not a large multinational tech company.
The second step of the process is getting approved for a mortgage. In the past, you would go to your local bank, sit in the lobby, and spend an hour filling out an application. With the rise of direct-to-consumer marketing, mortgage companies are coming to you through Facebook, Google, and YouTube. Once you find a lender you can trust, you will fill out an application online. Furthermore, these online apps are getting more and more advanced by the day. Instead of giving the loan officer your banking information, the loan application uses an API to link to your bank accounts directly. This expedites the front end of the loan process tremendously. In some cases, mortgage lenders are giving pre-approvals out in days. Again, these advancements are only helping the consumer be more competitive in the home buying process.
The third step in buying your home is finding a real estate agent. Chances are, you will go back to the original home search website and fill out a form. From here, you will receive automated text messaging, emails, and calls from the agent. This automated system is a new way for real estate agents to manage their lead pipeline and separate the high intent buyers from the low intent buyers. When this AI-driven bot has flagged you as ready to buy, a real person will get in contact with you. While this may seem disingenuous, it is an important step of the process. The housing market is flooded with people that want to buy homes quickly. Real Estate agents need to filter the good from the bad so they can better serve their clients. Once the agent has reached out, they will send you a DocuSign via email and your homebuying journey officially begins.
Technology has seeped into every facet of life and fundamentally change how we live. In some cases, this is not ideal. However, when it comes to real estate and mortgage marketing, it is giving more power to the everyday home buyer. Instead of being referred to someone or using your cousin to process this important life event, you can go online and find a trusted professional that knows how to leverage technology. At the end of the day, change in the industry is going to give more power to the homebuyer.
