How Technology is Disrupting the Real Estate Industry
With the internet firmly in everyone’s palms, the first step people take when searching for a property is to search for it online. In fact, more than 70 percent of people search for homes online before physically seeing them.
Technology has reached every aspect of the real estate industry.
Prospective buyers/renters now do not need to physically visit any property, they can view the property on Google Maps or via a virtual walkthrough link shared by the real estate consulting firm.
Add to this unique investment options for capital appreciation in the real estate sector, and you have increased participation in the sector by all interested parties- investors, real estate brokers, tenants, holiday renters, and so on.
New technologies in the real estate sector
Blockchain- This makes it possible for people and organizations to process large transactions without the use of intermediaries or human effort. This gives real estate technology consulting a brand new meaning. With the help of blockchain, each large real estate transaction can be done with utmost security, efficiency, and transparency. Blockchain technology is poised to revolutionize-
- Tokenization- Here, a real estate asset is divided into many tokens and stored on the blockchain. This allows landlords to sell shares or just a portion of the property in the secondary market through online exchanges. This allows individuals to participate in the real estate market to get inflation-beating returns on their investments without the hassle of having to physically care for the property.
- Smart Contracts- These help keep costs low by bringing together buyers and sellers without an intermediary- like a bank or a broker. This also helps to speed up the transaction and reduce the chance of fraud.
Sharing economy- Remote work is the new normal. This has spawned a whole new industry where leasing and sharing resources are preferred against buying them outright. Why pay monthly installments for a car when you can lease one whenever needed? Growing companies are now leasing office furniture to accommodate new hires and shift base as and when needed.
A new brand of businesses has come up to supplement the real estate industry where leasing and hiring are the new buzzwords against owning an asset outright.
Artificial Intelligence- To cater to customers amid the intense competition, real estate consulting firms are using the best of artificial intelligence to get to their customers. High-end software robots are being used to determine which property to choose based on their data analysis across the internet and with the use of machine learning.
Virtual Reality- Already, 360-degree tours and virtual walkthroughs of properties have revolutionized the way real estate brokers work. Now, technology has taken these virtual experiences to the next level.
This includes virtual 3D tours of the property where you can literally ‘feel’ the walls and other features of the property. You can see how high the showerhead is, how big the rooms are and what you can see from the property all thanks to the help of aerial drone footage and 3D technology.
CRM software- CRM software like Salesforce, Base, PipeDrive, and others help real estate agents keep track of their emails, calls, and other communications with their prospects. As each prospect is worth their weight in gold, realtors cannot afford to ignore any one of them. These CRMs help you to report on results and automatically estimate and confirm the revenue and income from each prospect.
Mobile Apps- There is practically no product or service that you can avail of from the palm of your hand. Hiring a real estate broker is no different. Apps like Zillow and Redfin help connect buyers and brokers for seamless interaction between the two.
In fact, some of these apps allow potential tenants and buyers to state their tentative requirements and automatically connect them with those agents who have similar properties.
Internet of Things- The internet first conquered our desktop PCs, then our mobiles. Now there is technology where the internet helps us understand our tastes and preferences. For instance, the door opens automatically for us, the rooms we go into lighten up automatically and even our coffee is brewed without us having to even lift a finger. These ‘smart devices’ installed in many new-age properties are revolutionizing the way we live.
Houses with such smart devices are in short supply. In saturated real estate markets in the West, all home-related paperwork is now being done through the cloud- saving a lot of time for all parties involved. Enhanced security features based on these ‘internet of things’ devices are a great accompaniment to any house, helping the seller get a handsome premium for it.
If you want to stand out of the crowd in a highly competitive market, you will have to embrace change. Technology is helping those dealing in the real estate market to embrace change. Just as smartphones became commonplace within a short span of a decade, it is only a matter of time when smart devices and other revolutionary technologies will be embraced by all.