The traditional homebuying process involves a hodgepodge of segments – including listings, agents, mortgage applications, movers and contractors – as well as little technological adoption, with in-person showings and reams of paper to sign as common practice. The coronavirus pandemic, however, may have helped to accelerate the shift to a more digitized homebuying landscape: After a tough spring, US home sales rebounded to new cycle highs over the summer, likely due at least in part to the streamlined processes that things like virtual showings and appraisals offer.
There exists strong evidence that consumers do indeed desire a more digitized homebuying experience. A 2019 McKinsey survey of British and American homebuyers found that around half of the respondents were receptive to digital platform solutions, and an additional 25 percent would be receptive under the right conditions. Digital ecosystems that more efficiently connect buyers and professionals have the potential to enhance a difficult process for what is often a large financial and emotional investment for customers.
While large, fragmented markets that have been historically underserved by technology are everywhere, that does not mean they’re easy to find. Real estate’s ripeness for disruption presents an exciting opportunity for technology to enhance a massive industry. Volition’s proptech investment history includes category leaders like RealPage and ButterflyMX, and we continue to focus on partnering with entrepreneurs who are driving innovation in the space.