As I write this post, Redfin is entering the mortgage-banking business. Their goal is to completely digitize the home buying process by offering an end-to-end service that starts with searching for homes and ends with lending. So what does this mean, if anything, for your business and the industry as a whole?
Redfin says it wants to “streamline” the process to lower costs and time and provide a better overall experience for the customer. Their vision: A buyer finds the property they would like to purchase on the Redfin website, and when they get to the finish line, not find any hiccups - like faulty communication between parties, a negative credit score, low appraisal or anything that would prevent the buyer from securing a mortgage.
What do you say to this? Does it feel like a permanent trend or shift in the industry? Is RedFin correct in saying that traditional lending methods are not sufficient to streamline the buying process?
There is a similar movement on the selling side of the equation too. Techno house flippers (Real Estate tech startups that make “instant offers” on homes online) are taking the selling process from a non-guaranteed, drawn out process to a 72 hour close at a guaranteed sales price. Both sides are bucking industry standards for what is touted as a faster, cheaper, easier, guaranteed and overall better way to buy and sell property.
The traditional home-buying and home-selling processes seem to be facing challenges on all sides. Providing excellent customer services is at an all-time premium. As buying/selling options for customers increase each year, industry professionals need to find new ways to rise to the top of the pack. Going to market with all the pieces in place to provide a positive buying experience is beneficial for everyone in the process. In order to provide that smooth process it is imperative that you already have strong relationships in place from Agents to home inspectors to Lenders. A great place to start that win-win relationship building is with the Agent and the Loan Officer. But, you already know that.
You might not be able to offer Agents their own personal lending department like Redfin, but you can offer them more than just a box of doughnuts. To find out more about how you can sweeten the deal check out our blog “Co-Marketing Creates a Win-Win Relationship for L.O.s and Realtors.”
In the meantime, what do you think about this move by Redfin to provide a “true” one-stop-shop for the homebuyer?