Amy Mizner

Technology impacts every area of our lives. Innovation continues to change and often improves the way we do business. While embracing these promising technologies is essential to staying current with clients, understanding the limitations of these new platforms must also be considered when helping clients determine the best path forward when it comes to buying or selling a home. 

REX, a technology-focused platform that boasts it does not use MLS, raised $15 million in series B funding in January. REX pairs buyers and sellers together on a digital platform and the attraction of the technology is that it meets buyers and sellers wherever they are. Piloted last year in Colorado, California, Texas, New Jersey and New York, the company has raised more than $75 million to date. Also appealing to both buyers and sellers is that the entire transaction is conducted online, and REX charges a lower commission than brokers normally charge. 

Sheryl Simon

Offerpad is another up and coming real estate technology platform that generates valuations and offer prices to assist both buyers and sellers through a proprietary algorithm. You can pick your own closing date, there’s no need for open houses or showings and the package includes a local move. 

And another company in this new frontier targeting the “iBuyer” space is Opendoor. It’s gaining traction in the southern states for its ability to generate a home valuation that, if the seller accepts the price, will buy it outright with a 6.5 percent transaction fee. Of course, there are a few restrictions – they will only make offers on homes that were built post–1960 and the valuation of the property must fall between $175,000 and $500,000. 

Brokers Must Adapt 

With more bright and shiny options than ever before attracting buyers and sellers, the role of the real estate broker must adapt. According to Matt Harris, a partner at Bain Capital, iBuying is the most significant financial trend in real estate today. Critics argue that these companies are trying to put more traditional real estate companies out of business, while others suggest that there’s room for everyone in this new frontier of real estate. 

As brokers, it is our job to be the most informed professional in the room. From introductory listing presentations to advising on offer prices to guiding clients through their transactions. 

Here are three ways that you can stay ahead of the curve: 

Do your homework. Subscribe to real estate news channels to read about the latest trends and what our industry thought leaders are saying about iBuyers. List the pros and cons of each of these new entrants into the market and be prepared to advise clients on their merits and shortcomings. Even if some people decide to go the full digital route, you can serve as a trusted advisor and that can pay dividends on their next transaction or keep you top of mind as a referral to others. 

Own your local market. The more knowledge you have in your market, the easier it is to demonstrate your value to potential clients. Be sure you know what’s coming on and going off the market, pricing changes, and property features and benefits. This is especially valuable when inventory is historically low as it is now. Having an expert advisor on your side can help clients make better decisions. 

Embrace technology and harness it. Forbes recently reported on a survey conducted by Owners.com that showed 33 percent of homebuyers wished their agent had leveraged technology to better streamline the process. What does your company offer to help facilitate a smooth transaction? Do you have a mobile app? Online forms? Skype conferencing?   

The role of a broker as a trusted advisor to buyers and sellers will never go away. While our job description may change as technology continues to evolve, there are some things that it can’t replace, like the warmth and understanding clients get from a personal connection. A broker who radiates knowledge and is a true partner will be there to advise their clients on every aspect of this changing terrain to ensure the best possible outcome for everyone involved. 

Amy Mizner and Sheryl Simon are principals of Benoit Mizner Simon & Co., a residential real estate company servicing MetroWest Boston with offices in Wellesley, Weston, Needham and Sudbury.