How technology will transform how people buy
Tracie Pearce is head of mortgages at HSBC UK
The internet has changed house hunting dramatically in a few short years. But new technology is set to transform the experience further, easing stress and helping buyers make informed decisions.
Many people already go online to research locations or check out plans on estate agent websites, with retrospective buyers using online maps with photos to recreate the experience of walking down the high street.
In the future, virtual reality could spell the end of the ‘fifteen minute window’ to view a property. Virtual reality could allow homebuyers to view more homes, narrow down their choice and then ‘live’ in a virtual version for several days to truly try before they buy.
The process of buying a home is set to change beyond recognition in the coming years. It will be a more streamlined transaction, with buyers and sellers having greater control and relying much more on technology.
These are just some of the findings from a new HSBC study, Beyond the Bricks The future of home buying, based on consumer opinion surveys and insights from property technology expert James Dearsley.
FinTech is set to transform and empower firms and consumers in the mortgage market over the coming years. We can expect to see more on-demand services provided digitally through live chat or video.
The human touch still matters when it comes to mortgages. People today are far more likely to trust advice from a broker than from a machine. In the UK, traditional sources such as mortgage providers (41%) and family (46%) remain the most trusted sources of mortgage advice amongst millennials. However, computer programmes are already capable of analysing large amounts of data far more quickly than a human. Artificial intelligence is constantly improving, getting smarter at “listening” to people, understanding what they want from a mortgage, and helping them focus on a shortlist of the most suitable options.
And when it comes to technology, attitudes can shift quickly: social media as we know it barely existed a generation ago, for example – today billions of people share their personal lives through online networks.
The final stage of buying a house is sometimes the most complex, including negotiating your house price, signing the paperwork and ensuring that the money is transferred safely and on time.
Here too, where local regulations allow, technology has the potential to automate parts of the process.
Programmes using artificial intelligence are already capable of collating much of the data needed to transfer legal ownership and drawing it up in the correct format, for example, leaving it only to be checked and witnessed by a qualified professional.
The rise of technology has implications for the professionals involved in the buying and selling process, including estates agents, lawyers and banks. They should be prepared for their roles to change significantly over the next decade. However, there will also be new opportunities for individuals and businesses able to adapt as house hunting goes digital. Property technology, sometimes called “PropTech”, is a fast-growing sector in its own right.
Above all, technology promises change for buyers and sellers – giving them information, putting power in their hands and reducing delays. Buying a house will always be a big decision. It needn’t be a painful one.