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As market conditions change and as consumer sentiment takes a hit from rising uncertainty, an expert claimed buyers and sellers must “reimagine” property transactions and recommended using technology to secure the best deal.
Chief executive and co-founder of virtual tours platform Little Hinges, Josh Callaghan, stated that leveraging technology can help any party in a transaction to get the best results.
For buyers, Mr Callaghan pointed out that the right tech gives buyers leverage when placing an offer, as it gives them access to more information, which helps them to feel secure in a transaction.
“Knowledge is power — or money in the bank — when it comes to purchasing a property. Property technology tools are there to give buyers access to more information, putting them in a position to negotiate a better deal,” he explained.
He noted that there is increasing demand for a rethink of the typical buying process due to the poor decision-making of some buyers — with some failing to fully grasp how significant of a financial undertaking purchasing a home is.
“As it stands, buyers are forced to spend an average of almost $1 million after a couple of five-minute open homes squeezed in between kids’ sport on a Saturday morning, alongside 50 other families,” he commented.
To demonstrate the increasing demand for the use of technology in the purchase journey, he revealed that an estimated 300,000 people are virtually exploring their open homes on a monthly basis.
But he underlined that it’s not just virtual tours that are giving buyers an upper hand. He pointed out that there are other tools that are on the market that are now empowering people who are looking to purchase a property.
“Tools like virtual tours, pre-purchase building and pest inspections and other advances in technology are arming buyers with more information, allowing them to feel really confident in their bid, not to be rushed into making a purchase without all the information needed to make an informed decision,” he said.
Mr Callaghan further explained how technologically savvy buyers can get the most bang for their buck. “3D virtual tours, for example, are accurate to within a millimetre, meaning you can get quotes from tradies on the cost of renovations before you even move in. Knowing these kinds of costs upfront means you’re able to factor them into your offer for a property,” he said.
Additionally, the expert highlighted that technology allows buyers to make up their minds faster, which can make or break a deal in a time-sensitive market.
“Using technology in the property purchase process also allows buyers to move fast — buyers are able to get a better deal by moving quickly and negotiating terms because they feel confident in their offer,” he said.
On the other side of the fence, Mr Callaghan advised sellers to urge their agents to use tech when marketing their property to get the best deal.
With buyers becoming more critical of their purchases in the changing market, he said sellers must also step up their marketing game.
“Buyers know that photos are staged and that they aren’t necessarily a true representation of a home. Research has shown buyers are more likely to contact an agent if they are using technology like video and virtual tours,” he stated.
Mr Callaghan said that aside from allowing sellers to reach a large pool of potential purchases, technology also helps to ensure that the deal will be secured.
“Technology not only allows sellers to reach more potential buyers, like the one in four who are inspecting from interstate or overseas, giving buyers all the information up front means deals are less likely to fall over in the due diligence stage,” he concluded.
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