Transforming the Real Estate Market with Technology
The real estate industry has always been dependent on technology.
In the past couple of decades, however, there has been a rapid growth in the developments and innovations of technology that is now changing the landscape of the real estate market.
For the most part, the internet paved the way for these developments. Artificial intelligence, virtual reality, better communication lines, robotics, intelligent software, data processing, and data security are just some of these developments.
Marketing and sales tools are also smarter than ever. They have emerged to facilitate communication and access to people, from better personalization to improved customer service. All these things have resulted in fantastic user experience, helping everyone in the industry–be they home sellers, real estate agents, brokers, and buyers.
Here are some technological changes and the best apps for real estate investors that are changing the landscape of the industry.
Artificial Intelligence (AI)
Artificial Intelligence can be intimidating and, more often than not, you have probably seen sci-fi movies about robots revolting against their masters and overpowering the human race. Luckily, technology is still far from that occurrence. Instead, today’s AI technology is about bringing convenience and efficiency to society.
AI platforms used in real estate range from robotics to machine learning computers. Though there are currently no robots giving property tours yet, many real estate companies have now embraced the idea of virtual tours. This gives their clients a great way to see and get a feel of different properties in the comforts of their own homes.
In the case of machine learning computers, companies can learn more about their potential clients from gathering information about them rather than being programmed to perform certain tasks. Pattern recognition helps people come up with smarter decisions. One of its most nifty benefits is it can predict which places and neighborhoods will become popular in the near future.
Improved Return of Investment Calculation
Obviously, real estate agents and property investors want to know how their investment in technology can provide returns. Fortunately, the popularity of machine learning and big data algorithms is on the rise. Professionals in this market will only gain more knowledge about ROI.
Consequently, real estate agents will have all the tools to make more accurate predictions for what properties will sell fast, how much money clients will earn, and their commissions. These predictive analytics can also help greatly in making smarter investment decisions and identifying better real estate deals.
Virtual Reality (VR)
If there is one aspect of technology advancement that is tailor-made for real estate, it has to be Virtual Reality (VR). In the past few years, it has become more popular among businesses and consumers–rightfully so as it is definitely one of the most efficient and practical technologies that exist for real estate.
As a matter of fact, more and more realtors are taking notice and have moved beyond photos and 360-degree video walk-throughs. Many realtors now offer property tours using 3D Virtual Reality, which people can use on their devices. There are actually many levels of 3D aggregators in the real estate industry right now, but many of them are still in their early stages.
Some companies use photos, videos, and VR–giving their clients the best way to see the properties in a more immersive way without physically going to the property. Users can navigate through the floor plan seamlessly using their computers, smartphones, or tablets.
Platforms for Fast and Efficient Buying and Selling
The approachability, usability, and functionality of various buying and selling platforms are better than they’ve ever been. The idea of these platforms is to make buying and selling properties easier for everyone. Platforms today have become more intuitive and user-friendly. This, of course, has resulted in a more pleasant buying/selling experience for everyone.
Homeowners are now selling their properties faster. Real estate agents are closing more and more deals. Property flippers are getting quicker turnarounds on their projects. Homebuyers are finding what they are looking for quickly.
The developments of these platforms only result in more activities in the market and better experiences for everyone involved in the buying and selling process.
This technology has been getting a lot of attention in the past few years. The big chunk of it is cryptocurrencies (such as Bitcoin and Etherium). However, the most important and helpful aspect of blockchain for real estate is the ability to process major transactions without the limitations and restrictions from intermediaries such as banks, credit card companies, or the government.
Blockchain allows people to make quick monetary transactions online with the utmost efficiency, security, and transparency. Home sellers, buyers, and even renters can definitely take advantage of this.
Though blockchain is still not as widely used for real estate, its potential is promising and its possibilities are limitless. The “tokenization” will allow landlords to use blockchain to sell ownership percentages in their properties. Contracts between buyers and sellers can be completely secured with encryption and built-in legitimacy checks. Blockchain ledgers can store and secure property titles. These benefits can and will help the real estate industry standardize and scale transactions online.
Another great platform that is causing changes in the landscape of real estate is cloud computing. The cloud’s impact on real estate is more in the closing process. Anyone who has purchased a property knows how long and tedious the process can be, and how frustrating it is to go through such an inefficient process.
The cloud provides better data management, allowing the whole process to be streamlined, be it for residential or commercial purchases. Electronic signatures can be written down, and what once took weeks (or even months) can be done in just a couple of days with the help of the cloud.
Many online property exchange network companies now use the cloud to help customers and clients (financial institutions and lawyers) to send and receive required paperwork to the appropriate recipients (land registries), allowing them to complete the whole process (especially financial settlements) digitally.
While technological innovations in the real estate industry are still in their early stages, there is no denying that these are changing the landscape of the market. The world is just realizing the potential of these different applications. With this, you can be sure of one thing: Home buying will never be the same again.
Keval Padia is the founder & CEO of Nimblechapps, a fast-growing mobile app development company. The current innovation and updates of the field lures him to express his views and thoughts on certain topics.