Technology’s Not Replacing Realtors or Loan Officers; Warren Buffet & Fintech
We have all heard time and again over the last ten years how technology will totally disrupt real estate and mortgages, and replace Realtors and Loan Officers outright.
Technology is changing the way we all do business, but it is far from replacing us.
One huge vote of confidence for Realtors remaining a major part of real estate purchase process is Warren Buffet. Buffet has been spending hundreds of millions buying up real estate brokerages in recent years, employing over 27,000 agents under his umbrella in 2016.
When someone with Buffet’s track record invests that much in real estate agents, it is a safe bet they are here to stay. His investment also says much about his belief in real estate overall too (something to remind timid buyers).
Similarly, all of the Fintech (short for “Finance and Technology”) lenders came into the mortgage arena looking to replace loan officers with technology. It has worked to some degree with refinances, but it has not worked at all with purchases.
For an enormous, life-changing transaction like a real estate purchase, buyers want to engage knowledgeable people they can trust. It is as simple as that. Technology can’t replace that need.
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