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It seems like innovation has helped to speed up many industries .
You used to have to wait a week or more to receive online shopping orders .. now with Amazon you can sometimes get same day delivery .
You used to have to call for a cab and wait for it in many cities .. now you can get an Uber in minutes or seconds with a few clicks .
It doesn't seem that innovation has really sped up the real estate industry.
As an example . I put my home on the market and I'm currently in escrow .
The home went under contract quick but the escrow was 45 days then the buyer needed an extension due to a loan . This is with a preapproved conventional loan.
That's a lot of time really .
Do any of you envision real estate transactions becoming quicker in the future due to technology etc?
All I see is that the paperwork gets more complicated and more paperwork is required. More and more every year. I can't see it getting any simpler.
About the mortgage thing, I don't know what can be done about the banks. They set their own pace and everyone waits for them.
Yes it was frustrating to know so much time had passed and still there was something with the loan .
I don't know for sure if it was on the banks side of the buyers side .
But even if it did close in 45 days that's still a while .
Did loans close quickly during the previous boom when lending was loose and "everyone could get a loan "?
I can see now that all the regulations would make things take longer . More documentation needed etc .
Seems like records, histories and files have never been easier to access, research and check. It would SEEM like loans should be getting faster. In the end though, human eyes still have to read and approve it all, through a few different levels of bureaucracy. And much of the time in escrow is waiting on people's scheduling.... inspections, appraisal. Real people still have to go out there and look, and evaluate and decide on things... I don't know if we will ever make all of that go faster.
it's the regulations, and banks dotting more i's and crossing more t's.
a cash in the bank deal is a cash deal, and still takes 10 days to check title and get your ducks in a row in an orderly fashion (and yes, it can be done faster).
A truly pre-qualified buyer/borrower with zero issues (everything's W-2 and everything's been sitting in the bank) can get conventional financing in 21 days.
a buyer that told you they were paying cash/didn't need the loan, and you accepted a 45 day escrow. Clearly, they decided at some point to use a HELOC on their house to buy yours. Then the lenders started questioning non-vanilla items, and they wound up with a delay.
If you've experienced 90--120 day closings in the past, you recognize how efficient the current process is until one of the parties decides to fool around.
The problem in real estate transactions is there are many wetting their beaks. Automation or not, they still want their beaks wetted. They will pay lip service to automation as long as their beaks get wetted.
I don't see them taking less time unless the country decides that privacy doesn't matter and there is some kind of big national database that houses tax returns and such for lenders.
Otherwise, things have to be verified and that takes time.
All I see is that the paperwork gets more complicated and more paperwork is required. More and more every year. I can't see it getting any simpler.
About the mortgage thing, I don't know what can be done about the banks. They set their own pace and everyone waits for them.
It would be great but it's the bank that sets the pace. Unless they overhauled the industry I don't know how else it would happen. Possibly with more standardized underwriting and more staff, but then they'd have to pay more in salaries and I doubt they'd make financial sacrifices to save the consumer a few weeks.
I'm surprised nobody has mentioned blockchain. it wins on hype for revolutionizing banking/loans and property registries.
Of course, AI wins as the savior for the legal industry.
So between AI and blockchain, house transactions should take about 2 days in the future if you believe the consultants' hype.
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