There are some very user-friendly real estate apps available right now that for some of us can even be a little bit addicting. Apps where we can easily search for listings, track favorite properties, and request personal tours. They're well-designed and offer many useful tools in one easy-to-use interface.
But using these apps can come with some caveats:
Caveat #1: lead conversion
For starters, these apps very often funnel you toward a small number of realtors who pay to be advertised alongside property listings. Oftentimes, these agents are highly-incentivized to convert you from a "lead" into a "client". So don't be surprised if you end up receiving a flood of calls, emails and texts from agents when you request information from the app.
Caveat #2: affiliated lenders
A second caveat is that many of these apps also funnel you toward working with an affiliated mortgage lender. At least one app is facing scrutiny for business practices that allegedly incentivize agents to steer consumers toward their lender partner, potentially prioritizing affiliated services over consumer choice.
Caveat #3: data privacy
Reading the app's terms of service and understanding how your data is used can be confusing. Just know that some of the apps profit by either sharing your data with or selling your information to other companies. Would you feel comfortable knowing that your contact info and property search history were being shared with insurance companies, moving companies and other businesses?
Our recommendations
You might be perfectly fine with the caveats that come with using a particular real estate app. It's a trade-off that you're willing to make in return for the many tools and features that the app provides.
Just be aware that you still have control over who you choose to work with. With this in mind, we recommend that you invest some time and thought into choosing the realtor and lender who you feel are the best fit for you.
Asking your friends and family for recommendations, and checking online reviews are good ways to start. When choosing a realtor and lender, look for professionals with strong local market knowledge, stellar communication skills, and a track record of putting clients first.
When you do this work early on in your buying or selling journey, you can feel confident that you'll be receiving service and advice from trusted, real estate professionals.
