With interest rates rising and property becoming less unaffordable, more buyers should use tech to get a better property deal. Josh Callaghan, CEO and Co-founder of Little Hinges, Australia’s largest virtual tours platform, says tech gives buyers leverage when placing an offer, because it gives them access to more information, and helps them feel more confident.
How are real estate buyers leveraging technology?
According to Mr Callaghan, almost 300,000 people are virtually walking through our open homes every month, showing the demand for tech in the purchase journey. “Tools like virtual tours, pre-purchase building and pest inspections and other advances in tech are arming buyers information, allowing them to feel confident in their bid, not to be rushed into making a purchase without all the information needed to make an informed decision,” he said.
“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 be able to negotiate a better deal,” commented Mr Callaghan.
“Buyers are demanding a reimagining of the typical property purchase process. As it stands, buyers are forced to spend an average of almost $1m after a couple of 5 minute open homes squeezed in between kids’ sport on a Saturday morning, alongside 50 other families.”
Why is tech essential in real estate?
But, according to Mr Callaghan, it’s not just buyers who should be leveraging real estate technology to get a better deal. “Sellers should be pushing agents to use technology when marketing their property. 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,” said Mr Callaghan.
“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.”
“Using tech in the property purchase process allows buyers to move fast – buyers get a better deal by moving quickly and negotiating terms as they feel confident in their offer.”
“In addition, technology not only allows sellers to reach more potential buyers, like the 1 in 4 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,” Mr Callaghan concluded.