Technological bandwidth transformed the real estate market
Technological bandwidth has transformed the real estate space and brought a breath of fresh air to the real estate market
The real estate space has benefited from innovative technologies in a changing market.
From finding land to appraisals, from buying to renting, many segments of the real estate market have been radically reshaped by a new wave of technological innovation. But nowhere is this transformation more spectacular and visible than in mortgage lending.
Real estate is not known as an industry that truly embraces change. The nature of the asset class, which includes large blended assets traded in a largely private market, may be a good reason for this. Homes can be too large a part of a private portfolio to take risks with the process by which they are traded, held, or valued. There may also be an agency problem: the professional advisers who dominate the transaction process have a clear interest in protecting their sources of income, so that chartered surveyors, brokers and lawyers could all resist technological innovations designed to “disrupt” their work.
Nonetheless, we are witnessing a battle for market share between traditional players and a noticeable new explosive wave of technological innovation, investment and entrepreneurial activity in the real estate sector. Nowhere is this trend more noticeable than in the lending market, where a new wave of regulated lenders focused on technology, client and quality have quickly filled the void left by traditional lenders in an ever-changing market.
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With their sleek client interface, efficient processes, transparent loan terms, and competitive pricing, this new generation of lenders are fueled by technological bandwidth heretofore unimaginable to serve borrowers in a convenient way, and with a dedicated staff. ‘experienced loan appraiser able to fully understand their projects. After speaking with many real estate developers, the general feeling is that most developers just want to focus on building homes and don’t want to deal with the financial side of putting all the finance in place.
“We just want to work with a lender who understands the real estate development process and doesn’t waste time asking irrelevant questions,” said one developer we spoke with recently. To me, that summed up the sentiment of many developers in the market that I speak with regularly and whose transactions have been delayed or even frustrated by inefficiencies at non-specialist lenders who could not understand the ins and outs of the real estate transaction. . . It’s no surprise that so many developers and brokers have embraced this new generation of lenders as a breath of fresh air and are excited to work with lenders who are finally able to use their own experience as developers. to understand the financial needs of borrowers.
In summary, many players in the real estate market – developers, brokers and professionals such as lawyers, accountants and architects – have embraced the new wave of technological innovation in the credit market as a much needed breath of fresh air.
Roxana Mohammadian-Molina is Director of Strategy at Mixing network.