Why Buying and Selling Houses Online May Not Be the Best Idea
While listening to a podcast the other day, I heard a commercial for an online buying and selling real estate company. I was intrigued by the idea and wanted to know more, especially as someone in the home loan industry. So, I dug into it, and I wanted to share some of what I learned. Read on below to find out more about what may be hidden below the surface on these sites, shortcomings of cutting out the human element, and why working with an independent mortgage lender provides more support, trust, and confidence. Here’s a look at online real estate services:
What is Online Real Estate?
There are several online real estate brands popping up these days, some of which you may already know. Many of these companies started as real estate aggregators, like Redfin, while others are start-ups. These companies offer the opportunity to list your home and buy a new home online, kind of like Carfax does for cars.
Companies will present sellers with cash-only offers shortly after their home is listed. The homebuyer will enter their location and list features of their ideal home to narrow down results before making an offer. If the owner accepts the offer, someone will be sent to assess the house. Repairs that may be necessary are then taken out of the offer. Once the final offer is made, homeowners can accept, and they close. Those same homes are listed on the website once they’re ready to sell.
Behind the Scenes of Buying and Selling Online
An obvious benefit of this process is the reduction in the time to sell and buy a new home. The entire experience, from start to finish, is built to be convenient. However, it’s essential to review the fees included. They’re not necessarily hidden fees, but there will be a cost to doing business this way. Convenience is probably the most significant “pro” in this process.
These services are poised towards experienced buyers and sellers. Without a previous understanding of how real estate buying and selling works, this may be a difficult experience to grasp all over the computer. This is a huge reason why it’s important to partner with an experienced and knowledgeable mortgage lender – they’ve been through this many times before and will walk you through the process. It’s important to know how to negotiate when it comes to the offer and repair costs and doing this all behind a computer can make a buyer feel rushed and potentially lead to rash decisions.
Home financing is a very involved process and doing it all online can get sticky. These online services online do provide financing for buyers, however the whole concept is so new that it’s hard to know exactly what you’re getting into.
We always want to be cautious about things that might seem too good to be true – with all the privacy concerns surrounding the information you need to provide for a mortgage, we encourage homebuyers to work with established independent mortgage lenders. We will work with you to create a personal relationship and grow to understand your individual situation, needs, and financial goals to find a loan that is right for you.
Alternative Options to Online Real Estate
Of course, the alternative to online real estate is working with a local agent and independent mortgage lender to buy or sell your home. We understand the draw of the seemingly convenient ease of online tools, especially in a time when so much of our lives depend on similar digital brands. However, it is important to consider that this may very well be the largest transaction you make in your lifetime. When you choose to work with me and my team at GoPrime, you’ll be treated as more than a client. We dedicate ourselves to serving you through our fast closings, competitive rates, personalized approach, and we are always available to answer any questions along the way.
A mortgage lender also comes to the table with years of experience, and if you choose to work with us you know that you will be getting reliable, transparent, and accurate information. We are highly specialized in the process, and we know how to explain the details in a digestible way.
We have access to cutting-edge technology such as e-signing, interactive videos, and informational educational resources, and SimpleNexus, a program that allows you to follow along with your application and loan progress every step of the way. Sounds pretty convenient doesn’t it?
Do you have questions about buying a new home or the pre-qualification process? Call me and my team at GoPrime Mortgage in Asheville, NC, today.