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
- 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.