In today’s world, technology hasn’t just penetrated one or two industries; it has taken over all of them and completely transformed how we view the world. Whether it’s grocery shopping or running an insurance agency, technology has now made life easier and, with it, brought in a lot of efficiency in our day-to-day lives, not just for consumers but businesses alike.
The real estate industry, of course, is no different. Technology has made it convenient for buyers, sellers, and agents and is helping the entire ecosystem run in a much more streamlined manner than it was 15 years ago.
The impact technology has had on the real estate industry is limitless, but it can indeed be listed down and categorized. What are these, and what do they entail? This article will answer these questions in depth:
Property Searches and Listings
Thanks to the internet, accessibility in terms of listing new properties and searching for them has reached new heights. From allowing sellers and real estate agencies to expand their outreach to more buyers than ever to allowing consumers to access countless options, the Internet has granted convenience to everyone.
Database management has allowed buyers to streamline their purchases and only search for the properties that fall within their preferences, such as locations and price ranges, among other specifications. These databases are also augmented by additional information, such as photos and interactive maps, thus reducing the need for in-person visits.
Augmented Reality & Virtual Reality (AR/VR)
Adding on top of photos and videos, technology has enabled the showcasing of properties to go to new heights through the integration of augmented reality and virtual reality. Virtual reality has allowed consumers to get walkthroughs of a property in a virtual space, giving them an even greater idea of how a property looks bringing down the requirement for in-person visits. VR allows consumers to gauge better how a property feels regarding space and layout.
This concept is taken up a notch thanks to Augmented Reality (AR). AR has allowed consumers to visualize how items within a space, like a décor, furniture, etc., would look like. The end result? It facilitates buyers to make better decisions when buying properties and allows sellers and agents to improve their pitch for any property.
Efficiency in Transactions
Technology, with it, has brought an innumerable amount of easing business operations not just within the real estate industry but overall. Technology has enabled the streamlining and automation of administrative work, such as legal documents and agreements, to be signed digitally, bridging the gap of geographical distances between buyers and sellers.
Moreover, digital payment systems and gateways have reduced the time it used to take to make transactions. Implementing newer cybersecurity measures is making these transactions a lot smoother and more secure daily, and the introduction of blockchain technology will only further improve this initiative and reduce the chances of fraud.
When talking about fraud, a very legitimate concern for all parties involved in the real estate industry is the focus on background checks. Background checks enable sellers, buyers, and agents to understand better the individuals with whom they are interacting and doing business.
Within moments, sellers can check for criminal records against buyers and vice versa. In parallel, buyers and sellers can also check for the legitimacy of their real estate agents. Various portals now showcase the history of real estate firms as well as customer ratings and testimonials. Buyers and sellers, through these portals, can also view any real estate awards given to agents within a real estate team.
Leveraging of Data
When we talk about technology being at the forefront of today’s world, data is the core of this entire digital ecosystem. Data has allowed real estate brokers to dive deep into the behaviors of the real estate market and identify trends within the industry. These trends play a further role by helping in the valuation of properties and identifying investment opportunities.
Data has also helped real estate agencies better understand their target market. Gaining a better insight into consumer preferences and pricing mechanisms allows the way forward for the future of the real estate market to be paved.
Property Maintenance & Management
The introduction of the Internet of Things (IoT) opened an entirely new market within the real estate industry. IoT has enabled properties to be managed and maintained more efficiently than ever before.
Property managers can now leverage IoT technology to manage things such as energy consumption, remote security monitoring, and hardware malfunctions without even having to be on-site, as many web and mobile applications can do this for them on the go.
These applications are also equipped to handle tasks such as tenant requests and collecting rent, again contributing to how the real estate industry is operating as a whole.
Again, not just limited to the real estate industry but also inclusive of it, companies are always striving to integrate components into the business that will enable higher efficiency. With tech-driven operations, real estate agencies are able to automate certain processes, which thereby leads to decreased manual work and, ultimately, higher profit margins.
Tools and technologies such as CRMs and portfolio management software are prime examples. ERP solutions are another great example, which helps streamline billing and invoicing operations.
As the world evolves day by day further towards a digital landscape, it is now abundantly clear that businesses in every industry must evolve at the same pace. The adoption of technology will most definitely become a competitive advantage in the years to come, making it all the more important for organizations to embrace technology rather than oppose it.
Technology in the past years has changed how all real estate operations are carried out, such as marketing, administration, etc. And with the introduction of more tools and technologies, the future of the real estate market looks promising in terms of innovation. It can be said without a doubt that these innovations will enhance the industry even further and aid in the creation of more opportunities for all stakeholders involved.