Guest column

Houston expert: Millennials are entering the housing market and they’re bringing tech with them

Millennials have brought in new, game-changing technologies into the housing market — for better or for worse. Photo courtesy of HAR

It's official – Millennials have arrived in the housing market, and they're expected to take it by storm. After spending the earlier part of the decade preferring to rent in hip urban areas, the entry of older Millennials now in their 30s is already impacting how tech and the real estate market coexist.

Like many industries that are traditionally people-facing, real estate has been slowly digitizing for many years. Most of the general public has used a variety of apps that help them search for available properties to buy or rent without talking to an agent. However, within the real estate industry itself, technology has expanded like wildfire in the past few years.

We see these changes most acutely in the services that influence our day-to-day operations:

  • Digital applications
  • Electronic documentation
  • Online income verification
  • Automated notaries
  • iBuyer
  • VR / AR home tours
  • Smart security services

These digital transformations have altered the way agents, title companies, and lenders conduct business. Real estate professionals have varying sentiments regarding the efficacy and role of technology in our industry. Recognizing the importance of erring on the side of caution is key, especially with the rise of wire fraud targeting the real estate sector, robo-signing, and the creation of questionable title transfers.

But these new technologies aren't going away. It's important to choose to focus your energy on recognizing and implementing key precautions regarding how technology is used, especially with the new buyer's processes.

For example, when it comes to wire fraud, we deploy simulated phishing tests to ensure that our employees are alert and aware to the new nefarious activities targeting our sector. Additionally, title agents hold the singular obligation to discover and evaluate faulty proceedings before a closing. This is why we take our duties seriously and meticulously research any unclear title issues that need resolution.

Millennials + Technology = Game-Changing Access to Knowledge

In the past, the title industry has operated mostly for realtors, lenders, and other real estate specialists. In fact, traditional homebuyers were unaware of the importance of their title insurance and property/ownership rights. However, the real estate industry has shifted with millennials entering the housing market. These consumers are more engaged with the ins and outs of the homebuying process because they're using technology as an opportunity to learn.

Thanks to these new plugged-in homebuyers, title agents must use technology to communicate with, educate, and simply keep up with their clients. The current state of the closing process is a cross between electronic and wet signatures. However, as homebuyers demand more digitization and states pass bills permitting cyber notarizations, title agents must actively adapt by building the groundwork to address those tech needs.

Millennials in the marketplace also demand more of the life-simplifying tech they use in the rest of their lives. While technology does streamline the process and allow clients access to more information (and on their terms), it should not take the "personal touch" out of the equation. This is why title agents and other members of the real estate community must pursue the happy medium between digitalization and personalization.

For most millennials, this is their first time buying a house, and many of them want someone by their side to walk them through the process. At Patten Title, our goal is to make the process clear, transparent, and convenient for people making one of the biggest financial decisions of their life.

The short-sighted among us will claim that technology will definitely sap that "personal touch" from the real estate relationship. We believe the opposite is true. Technology enhances the entire homebuying experience because it gives people-first agents the power to build strong relationships with truly engaged buyers.

The experienced title professionals at Patten Title couldn't be more excited by the promise of 2020. We are big fans of facing challenges head-on, from housing rates to technology, property developments, and more. This is a time when a forward-thinking real estate agent will thrive: by combining their willingness to adapt to change while ensuring standards are still met, they can strike the right balance of products, services, and skills that are both personable and tech-centric.

------

Eric Fontanot is president at Houston-based Patten Title Co.

Trending News

Building Houston

 
 

Auburn University's SwiftSku took first place in this year's virtually held Rice Business Plan Competition, but it was the second place company that went home with over half a million in cash and investment prizes. Photo via rice.edu

In its 21st year, the Rice Business Plan Competition hosted 54 student-founded startups from all over the world — its largest batch of companies to date — and doled out over $1.4 million in cash and investment prizes at the week-long virtual competition.

RBPC, which is put on by the Rice Alliance for Technology and Entrepreneurship, took place Tuesday, April 6, to Friday, April 9 this year. Just like 2020, RBPC was virtually held. The competition announced the 54 participating startups last month, and coordinated the annual elevator pitches, a semi-finals round, wildcard round and live final pitches. The contestants also received virtual networking and mentoring.

Earlier this week, Rice Alliance announced the seven student-led startups that then competed in the finals. From this pack, the judges awarded the top prizes. Here's how the finalists placed and what won:

  • SwiftSku from Auburn University, point of sales technology for convenience stores that allows for real time analytics, won first place and claimed the $350,000 grand prize from Goose Capital. The company also won the $50,000 Business Angel Minority Association Prize, the $500 Best Digital Elevator Pitch Prize from Mercury Fund, and the $500 Third Place Anbarci Family People's Choice prize, bringing the company's grand total in cash and investment prizes to $401,000. The company also won the CFO Consulting Prize, a $25,000 in-kind award.
  • AgZen from the Massachusetts Institute of Technology, a pesticide alternative spray and formulation technology company, won the second place $100,000 investment prize (awarded by Finger Interests, Anderson Family Fund, Greg Novak, and Tracy Druce). The startup also won a $300,000 Owl Investment Prize, the $100,000 Houston Angel Network Prize, the $500 Best Energy Elevator Pitch Prize from Mercury Fund, and the $1,500 Third Place Anbarci Family People's Choice prize, bringing the company's grand total in cash and investment prizes to $502,000. The company also won the $30,000 in-kind Polsinelli Energy Prize.
  • FibreCoat GmbH from RWTH Aachen University, a startup with patented spinning technology for the production of inexpensive high-performance composite fibers, won the third place $50,000 investment prize (also awarded by Finger Interests, Anderson Family Fund, Greg Novak, and Tracy Druce). The company also won the $100,000 TiE Houston Angels Prize and the $500 Best Hard Tech Elevator Pitch Prize from Mercury Fund, bringing the company's grand total in cash and investment prizes to $150,500.
  • Candelytics from Harvard University, a startup building the digital infrastructure for 3-D data, won the fourth place $5,000 prize.
  • OYA FEMTECH Apparel from UCLA, an athletic wear company that designs feminine health-focused clothing, won the fifth place $5,000 prize. The company also won the $5,000 Eagle Investors Prize, the $25,000 Urban Capital Network Prize, and the $1,000 Second Place Anbarci Family People's Choice prize, bringing the company's grand total in cash and investment prizes to $36,000.
  • LFAnt Medical from McGill University , an innovative and tech-backed STI testing company, won the sixth place $5,000 prize and the $20,000 Johnson and Johnson Innovation Prize, bringing the company's grand total in cash and investment prizes to $25,000.
  • SimpL from the University of Pittsburgh, an AI-backed fitness software company, won the seventh place $5,000 prize. The company also won the $25,000 Spirit of Entrepreneurship Prize from the Pearland Economic Development Corp., bringing the company's grand total in cash and investment prizes to $30,000.

Some of the competition's participating startups outside of the seven finalists won monetary and in-kind prizes. Here's a list of those.

  • Mercury Fund's Elevator Pitch Prizes also included:
    • Best Life Science $500 Prize to Blue Comet Medical Solutions from Northwestern University
    • Best Consumer $500 Prize to EasyFlo from the University of New Mexico
    • Best Overall $1,000 prize to Anthro Energy from Stanford University
  • The Palo Alto Software Outstanding LivePlan Pitch $3,000 Prize went to LiRA Inc. from the University of North Carolina at Chapel Hill
  • The OFW Law FDA Regulatory Strategy Prize, a $20,000 in-kind award went to Paldara Inc. from Oklahoma State University.
  • The Silver Fox Mentoring Prize, which included $20,000 in kind prizes to three winners selected Ai-Ris from Texas A&M University, BruxAway from the University of Texas, and Karkinex from Rice University as recipients.
  • The first, second, and third place winners also each received the legal service prize from Baker Botts for a total of $20,000 in-kind award.
  • The Courageous Women Entrepreneurship Prize from nCourage — a $50,000 investment prize — went to Shelly Xu Design from Harvard University.
  • The SWPDC Pediatric Device Prize — usually a $50,000 investment divided its prize to two winners to receive $25,000 each
    • Blue Comet Medical Solutions from Northwestern University
    • Neurava from Purdue University
  • TMC Innovation Healthcare Prize awarded a $100,000 investment prize and admission into its accelerator to ArchGuard from Duke University
  • The Artemis Fund awarded its $100,000 investment prize to Kit Switch from Stanford University
The awards program concluded with a plan to host the 22nd annual awards in 2022 in person.

If you missed the virtual programming, each event was hosted live on YouTube and the videos are now available on the Rice Alliance's page.

Trending News