Home ownership: the mix of digitization and physical presence is crucial
Digital home ownership platforms bring a lot of benefits, but they do not replace people. Buying and maintaining residential property requires a mix of digital services and on-site expert support.
Do you remember the time when there was no internet? In Switzerland, the Internet boom began in 1995 – on September 16, 1996, the Internet became affordable for the general public, since access was possible throughout Switzerland at local telephone rates. The USA, especially American Internet startups, paved the way to the Internet age worldwide – Amazon was founded in 1994, Ebay in 1995 and Google in 1998.
Activities in areas such as e-commerce, e-banking and various market and information platforms quickly followed in Switzerland. The marketplace for rental apartments and home ownership was digitized early on: the market leaders Immoscout24 and Homegate were founded in 1997 and 2001 respectively. In recent years, countless other platforms and services related to the real estate market have joined the online marketplaces for renting and selling real estate: sharing platforms such as Airbnb, housing portals where landlords look for tenants, real estate platforms for institutional investors, platforms for crowdsourcing and peer-to-peer financing, and many more.
The search for real estate takes place virtually
Digital platforms are an essential part of the housing market – and there is hardly anyone who does not first visit the websites or apps of the various providers when looking for a rental apartment or a home. Efficient search engines provide valuable information on offers and prices; increasingly better 360-degree videos offer virtual tours, and chatbots answer the most pressing questions. User trust in many of these digital platforms is high, not least because false information is immediately exposed by the community.
These digital services provide a quick and easy market overview from the sofa; if a new property that meets certain criteria comes onto the market, the interested party will be notified immediately. But while the search for real estate has been almost completely and successfully relocated to the virtual space, most tenants still want to see the potential new apartment in person – and when buying, selling and maintaining residential property, hardly anything works without a physical presence. Digitization is reaching its limits.
With the help of digital assistants, a property profile can be created quickly and easily with the year of construction, net living space, property type, location, etc. and the current condition of the building can be determined. Based on such a profile, individual modernization assistants even provide concrete recommendations as to exactly what should be replaced or modernized and when, including a range of the corresponding renovation costs. Platforms can also provide a lot of suggestions and information in the area of energy-efficient renovation, for example on savings in electricity consumption or possible subsidies for heating systems based on renewable energy.
Physical presence is required for investment decisions
However, when it comes to assessing the "look and feel" of a property, physical presence on site is essential. The definitive assessment of the condition of a building and the decision as to which renovation materials are really necessary can only be made on site – and together with experienced experts. The choice of the right craftsmen also takes place physically, at least in a second step, since they also have to inspect the property personally in order to be able to create concrete offers.
In addition, many financial institutions require a "physical" appraisal prepared by a special appraiser for the financing of a home. Since real estate is not fungible, every transaction is different – and specialists should also be consulted for the negotiation and conclusion of a real estate transaction.
Digital home ownership platforms can provide a lot of benefits and cover many needs related to the purchase, maintenance or sale of a property. But it doesn't work without people. Only the mix of digitization and physical presence – as well as the support of appropriate experts – leads to the best result.