In today’s world, digital transactions are the norm. Whether you’re selling a property or buying one, there’s no need for a physical transaction. You can do it all through a digital platform. And that’s why real estate app developers are so excited about digital transactions. They save time and hassle and can get more out of their customers.
Further, as an industry that is growing rapidly, especially after the COVID-19 pandemic outbreak, digital transformation in the real estate industry has benefits for all parties involved. For example, from home automation to how digital transactions in real estate apps make it easy to do transactions between customers and agents.
Real estate agents are adopting digital technology more and more, according to the 2020 KPMG Proptech report. More responders (58%), compared to 52% in 2019 and 2018, had a digital strategy in place.
One article from Form Simplicity showed that digital transactions can help agents and brokers organise when the data can be stored online in one place, it also helps better communication between all the parties involved, and increase the customer experience.
Types of transactions in the real estate industry
According to Skyline Atlas, buying and selling are the two most typical types of real estate transactions. Generally, the buyer gives the seller a specific amount of money. Financial transactions, therefore, include real estate transactions. For tax purposes, a few other kinds of financial transactions may potentially qualify as real estate transactions.
One article from Management Study Guide showed some of the types of transaction costs in the real estate industry. Here are the details:
- Brokerage: One of the most well-known costs related to real estate transactions is brokerage. Typically, a broker will charge for this expense.
- Search costs: Another well-known expense related to real estate investing is search costs. These costs include the amounts paid to newspapers and publications for property advertising.
- Legal and administrative costs: There is a lot of paperwork involved in the real estate industry. This is due to the high cost of real estate. Administrative fees related to the transfer of ownership for utilities including cable, water, and electricity.
- Statutory costs: The government typically adds to the costs of real estate transactions by deducting a share of the sale revenues. A stamp duty is assessed on the transaction value throughout the United Kingdom, Australia, India, a few American states, and across the world.
- Financing cost: The majority of today's housing transactions are financed using borrowed funds. As a result, the lender must also be charged with some transaction costs.
Further, instead of physically signing and notarizing documents, notaries can sign them using audio-video technology. Besides, blockchain technology speeds up, increases audibility, and secures the process of recording transactions through a decentralised network.
How do digital transactions help the real estate industry?
Digital transactions can help the real estate industry process. It depends on the client involved. Here are some of the things of digitalisation that can help the real estate transaction process.
1. Listing a home
The buyer looks for his dream property while the seller lists his property for sale. The listing agent, or frequently the transaction coordinator, organises the home's marketing and arranges open houses and showings.
The buyer's agent may display their client's properties utilising a combination of online real estate sites and in-person showings under the conventional transaction process model.
2. eSignature
With the exception of the close, eSignature is used throughout the transaction to speed up the purchasing and selling of homes while providing clients with convenience and time savings.
eSignature has a number of benefits over wet signatures. One benefit is that documents' signatures will be more consistent from page to page.
3. Negotiation
The negotiation can be a palpitating moment of the transaction process. The seller may choose the offer that is most beneficial to them out of many ones made on the property, forcing the other buyers to start their search all over again.
The amount reached during negotiations is referred to as the buy price. The validity period of the contract is the day on which both parties accept the final counteroffer.
4. Home inspection
The listing and selling agents then negotiate to establish how many discovered repairs the seller is willing to make and how many the buyer is willing to make on their own.
A home inspection can be a thorough examination of the house, visually and physically checking each system, including the electrical, structural, heating, and air conditioning systems.
Besides, homebuyers will additionally want a pest assessment to protect themselves from any wood-eating insects like bugs. Many mortgage firms will demand the correction of even small bug concerns before closing due to the potentially terrible effects on a wood-framed house.
5. Online notary services
Certain documents need a notary. The pandemic has promoted the development of a simpler method, including some types of online notarization services, which are currently legal in most states.
Real estate professionals can save a lot of time by notarizing papers digitally, and their clients will have great convenience because they can peruse, sign, and notarize their documents from their devices or mobile device wherever and whenever they want.
6. Closing a deal
The buyer will want to conduct a final walk-through of the property during this stage of the real estate transaction to confirm that the seller has completed all agreed-upon repairs, that all agreed-upon appliances or other items specified in the purchase agreement are intact, and that the house is still in livable condition.
Wrapping up
Transactions in the real estate industry can be an overwhelming process. So, many real estate professionals tend to use digital transactions in real estate apps. Moreover, a real estate app can be integrated with an e-wallet that makes it easy for all the involved parties to do digital transactions.
With professional highly skilled teams, VirtualSpirit can help you to build your real estate app. Our experts can help your web app or mobile app stand out with the latest technology. And the most important thing is, to increase the customer experience on your site. Book us a call now.
