In the world that we live in today, anyone can buy approximately anything using their phone and have it directly delivered to their address. Now, with the COVID-19 pandemic making everyone opt for more contactless interactions, online shopping has become an essential aspect of anyone's daily life. However, even before the pandemic's breakout, purchasing expensive, large-ticket stuff online was as easy as pitching household goods. Who would've expected that we can now enjoy processes such as digital real estate closings, right?
One good example is when you buy a Tesla. The price can rise to six figures. Customers can go and shop online and configure the car they want. They can also sign papers and pay electronically. Viola, they can have the vehicle delivered in front of their home. The buying process is effortless and transparent, and it won't need any exaggerated efforts on the buyer's part.
We Have The Power
Of course, many of us won't be purchasing Teslas, but plenty of us will buy a house in our lifetimes. While it is possible to shop for a place via virtual tours and even personalize finishes online, you still cannot finish the whole process electronically.
However, before buying a home can become a full experience online from beginning to end, there should be one thing that has to happen, and that is we need to move far from the model of an in-person notary. Unlike a few years ago, this is now entirely possible from a more technical point of view. Surprisingly, an online notarization process is already accepted in many of the states in the country.
Now, we have the capacity and the ability today to make closing on the house in a secure, cost-efficient, and virtual process. With all the parts in place to enable people to purchase a home entirely online, business practices throughout the real estate industry should catch up with this kind of technology.
Digital Real Estate: Moving Toward The Future
The absence of standard guidelines, technological infrastructure, and broad-based acceptance was deemed the reason for the restricted movement towards Remote Online Notarization (RON) and digital real estate closings. Not up until the last few months, these blockages did show a legitimate coordination challenge. This scenario resulted in settlement companies and mortgage lenders to suppress the idea. In turn, they worked on keeping the status quo when it comes to real estate closings.
However, today, the COVID-19 pandemic and the term required social distancing have altered how we should think about home buying. It has pushed modernization of the real estate buying procedure as a zero-touch closing and has become crucial in doing business. Additionally, the pandemic has illustrated that those anticipated blockages no longer exist.
On the side of technology, we are all, without a doubt, in a much different time than where we were five or ten years ago. Innovations in closing software have given everyone a secure infrastructure to close on a home they want remotely. Include that to development in videoconferencing, knowledge-based authentication, ID verification technology, and re-signing. These things put all of the parts in place to move towards promoting purchasing a home via online wholly.
In the meanwhile, at the side of regulatory, the COVID-19 pandemic has stimulated the way to contactless home closings. Almost every country has ratified laws or instituted emergency or permanent executive orders. These orders enable some form of a remote notarization that allows an entirely digital real estate closing. On the federal level, the Secure Notarization Act in the United States for remote notarizations online creates its path towards its congress.
What Needs To Happen Now
Altogether, we all need to acknowledge that the real estate industry has moved way too slow towards digital real estate closings. So what should we all do to eliminate this barrier? For consumers, it is to insist on more from all of their partners in real estate, including remote notarization outcomes.
Before the pandemic began, the real estate industry saw that a completely digital real estate closing was a luxury. The professionals didn't find it a necessity for consumers. In turn, the consumers expected a little beyond the conventional experience. There was no way of knowing how crucial and vital it would be to provide consumers and sellers with the aptitude to do everything digitally. They can now perform their home closings and sign and review closing document papers in the safety of their very own homes. However, today, it is badly needed.
With all of the expedited innovations and workarounds being done during this pandemic, consumers can acquire a peek of what a fully digital real estate closing could be. They would expect the real estate experts they work to provide the exact virtual and contactless choices being made possible. We can continue even during this era of social distancing by using these temporary regulations. After the COVID-19 pandemic ends, digital real estate processes may still be in place.
This period will go down in history as one of the most unparalleled transitions and adaptability. We should all include digital options across everything that we do. Let us not allow the real estate industry to be left behind.
How Is COVID-19 Accelerating Digital Advancements?
The COVID-19 pandemic has altered approximately every aspect of our day-to-day lives. One likely silver lining for the real estate industry may be a pushed count with the mortgage closing procedure. Technological advances such as enclosing are stimulating this complicated process into the digital age.
The US Census Bureau published figures in July referring to the rise of homeownership across the US. Surprisingly, the pandemic powers up the demand for more single-family properties beyond urban areas. This data is also supported by the substantial hike in mortgage applications in the second quarter of 2020 alone.
The first indications of digitizations of the mortgage origination procedure were seen in mid-2010. During this period, mortgage lenders started adopting digital closings. Despite the accessibility of technology, the market has been slower to accept digital real estate closings completely. A process that allows the complete loan package to be reviewed, signed, recorded, and notarized electronically.
An actual excluding involves a digital promissory note or eNote, the electronic transfer, and recording of documented papers from the county, and a virtual closing appointment. These things can be done remotely organized and enforced by the involved parties. The market today has begun picking up pace in recent years, and it has viewed the number of of-mortgages spikes by more than 450% from the year 2018 to the year 2019.
What do you think? Is going digital the way for the real estate industry to move forward? Will digital real estate processes be the new normal?
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