The first real estate deal my wife and I ever did was in an abandoned neighborhood in Chicago.
It was an old warehouse where Singer used to make sewing machines.
I was apprehensive. I wasn’t sure about buying the place even after I determined it was a good deal.
First-time buyer’s anxiety, I guess.
That was nearly 20 years ago. Today, we can do anything with tech … including buying or selling a home.
But even if the technology existed at the time, I never would have made an offer on the place after just looking at it online.
I had to see it.
I had to go check out my future neighborhood.
But in the midst of lockdowns and more tech-savvy buyers, it may surprise you to learn what people do today…
You Won’t Believe How People Are Buying Homes These Days
Real estate tech firm Redfin Corp. (Nasdaq: RDFN) says 45% of its customers who bought a home in the past year made an offer without seeing the place.
That’s more than double the first time Redfin posed the question in July 2015, and 61% greater than last year (28%). And Redfin says this trend should continue to grow.
We’re more mobile today. Per Pew Research Center, 81% of people in the U.S. have a smartphone. (More than 96% have a cellphone of some kind.)
And maybe you just bought a house yourself … or are thinking about it.
After all, mortgage rates are at all-time lows.
More firms allow their people to work elsewhere. And homes are often cheaper in the suburbs or in smaller towns than they are in big cities.
Many people can sell now and get a check that’s greater than what they need to buy a new place.
What This Means for Investors
For homebuyers and sellers, tech-focused real estate companies such as Redfin are more prevalent today.
And don’t doubt the importance of the traditional real estate firm such as Keller Williams Realty and Re/Max. Some people still want — or need — a personal touch.
And they offer more than just a personal touch.
I spoke to a Keller Williams realtor in Florida. She said her company has invested millions in technology to better serve the customer.
It appears to be working. They’re seeing record transactions. Her local office just did its best June ever.
Virus or not, people are moving to Florida … and elsewhere. They’re going where they prefer to be.
This is a paradigm shift.
Investing in the Real Estate Tech Boom
My colleague Ian King knows this.
He has several real estate related stocks in his Automatic Fortunes newsletter. I can’t mention his current gains here, but they’re significant.
There will continue to be new and exciting ways for people to invest in real estate. And Ian will remain on top of any that make sense for investors.
You owe it to yourself to check out his service if you haven’t already. I promise you’ll be happy that you did.
Editor, Profit Line
P.S. My colleague Michael Carr spent 14,000 hours and $300,000 of his own money developing a powerful new trading system. And now, it’s just about ready to go live. To sign up to get priority access to Michael’s research as soon as he debuts it, click here.
— to banyanhill.com