As 20226 approaches, it will 100% bring major changes to the real estate market. Those touch the application of more advanced tech solutions and standards first.

Tech solutions address the most common problems—and sometimes the ones most sharply felt. Homeowners are usually accustomed to paying high, if not astronomical, commissions to real estate agents and sometimes waiting ages for their property to be finally sold.

Innovative solutions solve traditional problems swiftly and effectively. For instance, using Property Buyers AR will greatly ease the process of home reviews and assessment. Tech advancements will not only reduce the time spent on home reviews, but also the commissions due. Overall, tech advancements streamline the sales process and reduce costs. Here is how.

What’s Wrong with the Old Model of Real Estate?

In the USA, real estate commissions vary, but on average they are about 5-6% of the home’s sale price. The commission is split between the buyer’s agent and the listing agent. Paying this fee has long been a standard practice. However, many sellers start to believe it is too high, especially after the online digital platforms appeared and spread in the market. Using the latter, sellers may navigate the process and secure the best terms for the sale.

How Digital Platforms Ensure Major Real Estate Market Shifts?

There are two major options in this case. The first, most widespread type of real estate digital platform enables homeowners to list and sell their property directly. This option is very flexible and envisages little to no upfront cost. The need to involve traditional brokerage agents and pay them high commissions is eliminated entirely. 

Such digital platforms allow sellers to access a wide pool of potential buyers. Many of these digital platforms also offer advanced tools for competitive pricing, marketing, and negotiations. However, in this case, buyers remain fully responsible for ensuring the property meets the requirements for its proper condition and preparing it for sale, including thorough cleaning.

There is also another type of digital platform used instead of real estate brokers, who at times charge astronomical fees. Some digital platforms assess and acquire a property on their own. This assessment uses advanced tools to evaluate both the property’s state and the market conditions. This type of digital platform also ensures property cleaning and repairs when necessary. It is a maximally convenient solution for property owners, especially busy ones.

Wider Use of Automation and Artificial Intelligence (AI) in Real Estate

Subjective assessment—sometimes very unrealistic—often encourages homeowners to seek alternatives to traditional brokerage services. Selling a real estate property is a big deal that requires great attention to detail. Homeowners must feel their property is assessed correctly and in line with current market conditions.

Brokerage services usually don’t involve automation or AI. However, it is a big mistake nowadays. Both automation and AI greatly streamline sales and make them more straightforward. It is possible to track the process and complete it as soon as possible. Unlike traditional brokerage services, which can sometimes take ages, automation and AI bring clarity and transparency to real estate sales. 

The use of automation and AI is never limited to effective property handling and assessment. These technologies can also ask common buyers’ questions. There is no need to wait days to meet with a real estate broker. You can instantly get the answer to most of your questions. They are usually very common.

These advanced technologies also help to arrange meetings. You can schedule showings at all hours. In addition, these technologies are also widely used to arrange virtual tours. The property can be fully assessed remotely at your earliest convenience.

Most routine sales processes that were traditionally performed by sellers can now be handled by advanced algorithms. Under these terms, sellers start to reasonably question—do they really need to pay astronomic fees to brokers for services that are lasting, expensive, and, most often, ineffective?

The Future of Commissions

To make a long story short—it is pessimistic. Digital real estate services will only continue to grow, overtaking the market share of traditional real estate brokers. The reason is simple—digital platforms offer far more flexible terms of sales. Property owners don’t need to adjust their schedules; they can simply follow the other terms offered by real estate brokers, including those related to pricing. In contrast, digital platforms fully adapt their services to homeowners’ needs, including pricing. Faster turnaround times, transparent sales terms, and lower fees are the major factors that will encourage sellers to switch from real estate brokers to digital agencies.

Bottom Line

Technologies are revolutionizing how many things work; real estate is no exception. Digital transformation already touches a wide array of aspects—consultation, property appraisal, scheduling meetings, virtual tours, and, of course, pricing. Transparent evaluation and pricing terms are probably the key factors encouraging the major shift from traditional brokerage services to digital platforms.

Advanced tech solutions ensure data-driven decisions based on real-world data rather than subjective judgments. Homeowners can easily navigate the sales process, enjoy better sales terms, and save a great deal of time.

Digital platforms are the most seller-friendly options. They will surely overtake traditional brokerage services in market share by 2026. Request a quote to check the tech advancements on your own!