Apart from being an external factor for McDonald’s PESTLE Analysis examination, technology is also a vital weapon in the Real Estate Industry. Whether you’re looking to buy or rent a home or you’re an agent trying to sell one, you have to take help from advanced technology. This means pulling up listings to browse on your phone or tablet is the norm in the real estate world these days. But that’s just the surface of a vast transformation that is taking place in the real estate world.
As a result, technology continues to play a significant role in how both consumers and industry professionals are approaching the market.
There are a lot of advantages with both commercial and residential properties to use new advanced technology in real estate.
First, it helps grow the country’s largest asset worth an estimated $40 trillion. Technology is continuously evolving the way we live. The commercial real estate world is also no exception. All of us are functioning more effectively and efficiently due to advancements in the latest technology.
Key Boosters of The Tech Evolution in Real Estate
The most prominent booster of the fast-paced adoption of technology in the real estate market is the immense popularity of the Internet. In addition, the millennial demographic has played a significant role in the overall changed experience of real estate.
- 50% of millennials use mobiles to search for homes, and almost 26% use the same medium to proceed with the home buying process.
- According to the Real Estate Tech Trend Report, 2018, almost 95% of buyers use the Internet to search for homes. 54% of home buyers have mentioned that using the Internet for initial research was their first step in buying homes and properties.
- More than 90% of real estate agencies have opted for AR and VR to deliver better services to potential customers.
Top 10 Ways how technology is transforming Real Estate World
Here are some practical ways technology plays a significant role in changing today’s real estate business.
#1 Online listings
Websites make it easy for anyone to view inventory and see what’s available. Along with photos and detailed descriptions of the properties, you can find tax and purchase history, school ratings and other neighbourhood info. They are also providing satellite views to check out the nearest highway, rail stations, metro stations, hospitals, schools, colleges, shopping centres etc.
This way, you can choose the property that fits your requirements in the best way just sitting at home.
#2 Mobile apps
Many websites also have their app providing all the necessary information about the properties, including video, pictures, etc. Again, it is the technology that keeps you informed without having to do a thing. You will be notified about new listings and properties that fit your search criteria. Besides, through apps, you can track properties within your preferred budget. These apps also provide quick access to agents and property managers.
#3 3-D virtual tours
What can be better than having a 3 D virtual tour of the property of your convenience sitting at home and doing nothing? The new software allows buyers and sellers to experience a 3-D virtual tour of a commercial or residential property beyond photos. This way, it feels as if you were walking through the space in person.
#4 Online investing
The advancement of technology has turned the world of real estate investing upside down.
Real estate investing is taking a high sign from the popularity of crowdsourcing. Some new websites allow anyone to invest in high-quality real estate by pooling their resources online.
#5 E-signing services
The advancement of technology has been a blessing in saving time and staying organised for real estate companies. Many companies are introducing new platforms to complete multiparty real estate transactions. From secure and legal e-signatures to personal task lists to simple file sharing, this type of technology improves efficiency and changes how agents respond to their clients.
#6 Virtual Reality Headsets for Walkthroughs
People use VR with gaming, but it can serve multiple practical uses in many professional fields, including real estate. It allows potential buyers and renters to see a property anywhere, any time. VR provides lifelike, detailed property tours, while simple videos and photos will lack the feel of authenticity for the same purpose.
The VR system was already famous even before covid 19 hit the country. Now, social distancing has made the adoption of VR even more necessary. Real estate agents and landlords use VR to showcase commercial spaces to potential buyers and tenants.
VR provides an interactive view of available properties while maintaining a safe distance.
#7 Environmentally-Friendly Construction
Environment-friendly construction is another significant feature of continuously evolving technology. Such as, nowadays, people are trying to have solar panels installed in their businesses or homes to access energy independence. Energy-efficient appliances are not anything new, but their popularity is rising now.
Smart Grid appliances such as ovens, dishwashers, and refrigerators are turning into the new standard in high-end developments.
These appliances can determine the best times to run based on using the lowest amount of energy. This is valuable for the environment and the property owner. In the construction process, appliances are not the only thing to get a makeover. Many contractors are using green insulation and biodegradable materials to reduce the carbon footprints of the construction industry.
#8 Automation For Managing Repetitive Tasks
Performing repetitive tasks day in and day out is troublesome for realtors, landlords, property managers and other real estate professionals. They deal with the same paperwork every single day. It is also problematic to store all the information in one place to gain helpful insights from them.
The traditional way of handling real estate data is inefficient and time-consuming. But now, technology is designed to help control these repetitive tasks more efficiently. There are a variety of software options out there to help manage marketing campaigns, appointments, your real estate portfolio and more.
#9 Smart Home Technology Integration
Homes are changing for the better due to innovative home technologies. Homeowners are adopting smart devices like Google Home or Amazon Echo. In addition, homes and multifamily developments are getting structured with innovative home technology in mind. Some of the most popular built-in intelligent home technologies are- Security systems, Televisions, Speaker systems, Appliances, Lights, Thermostats etc.
Buyers are more likely to go for space with these modern new features. And it’s not like these kinds of features are only popular with a younger crowd. Many middle-aged buyers are eager to own a home that’s fully equipped with smart technologies to help them save time and live a more convenient lifestyle.
#10 Cloud Integration
In recent years, the cloud has been one of the most significant technological advancements. Real estate is using it in various ways, including lending and closing. In addition, cloud technology has been used for remote finishes and other processes, especially that used to be done by human help, since the pandemic’s start.
After the danger of the pandemic has lifted, there is a possibility we might continue to see an increase in electronic document signing and remote closings.
Regardless of what purpose it is being used for, the cloud always provides smooth and efficient processing. Even if you are trying to conduct internal business or renew a lease with a tenant, the cloud will make it easier than ever before. This way, the whole process is way faster and secure than before.
Positive Impacts of Technology in Real Estate
- Smaller companies are giving more importance to co-location and space sharing, and shared services across companies could become the norm.
- Location will remain a key factor for several agencies that rely on talent, transportation, and easy access to other companies. In the metropolitan areas, businesses with various real estate models will decrease their assets to token Sales Office presence.
- The challenge for traditional commercial office environments to keep up with power, cabling, and other infrastructure needs will continue because technology is ever-changing.
- The role of brokers will change into an advisor with the rise of intelligent buildings and further consolidation of real estate data on the web. More owners will embrace online services for avoiding brokerage fees and engage more tenants. For example, the way Airbnb is changing the hospitality market. The idea is to expose the vast array of properties to customers and make it easy to compare. This way, the whole process will be transparent to consumers.
- The social facilities of urban centres will draw young talent, and they will sacrifice living space – even looking for dormitory-style apartment sharing. As millennials desire more space or establish families, less congestion, and different community features, retreat to suburban and exurban homes will not limit professional options as significantly as in the past – I predict that companies that telework will outpace those who are reining it in.
- For at least a generation, the work-life divide has been blurred. Ease of communication and access has eliminated the concept of ‘regular business hours. Employers are coming across the counterintuitively negative effect on productivity. Many forward-thinking companies are introducing ‘Work Free’ hours and forcing employees to switch off work devices at home to solve this issue. Once the ‘Work-Life Merger’ cultural phenomenon finds its equilibrium, the need for separate social spaces vs office spaces will increase.
Negative Impacts of technology in real estate
Some of the significant adverse impacts of technology in the real estate world are –
Communication Can Be Impersonal
- All these new technologies in the real estate world will be useless if you cannot convince people that a deal is a win-win situation for all parties. Using the latest technological developments in communication will certainly automate and streamline messaging. But it will not provide the assurance and trust which can be provided only by a human being. Many people are still there, preferring face to face communication over online advantages.
- Longevity in this business is not so much reliant on your ability to buy the latest real estate marketing technology, or even to raise money, but rather to relate to others in a personal and empathetic way; to understand their concerns and convince them that the deal you’re proposing makes sense.
- There are too many individuals who aren’t swayed or convinced, by digital communication, that it’s essential not to neglect the personal touch in your business dealings.
Too Much Talking and Not Enough Listening
Real estate technology tools allow you to be all places at all times to spread your brand’s message. Many real estate investors are sharing their opinions and ideas very quickly, but they are missing the most vital point, which is listening to the buyers. These new technologies force buyers to invest their hard-earned money depending on app suggestions.
Wrapping Up:
The massive advancement in technology has given birth to a new era in the real estate industry. It’s undeniable that the real estate business has been upgraded and easily accessible in many ways by technology.
But every good thing comes with some cons. Instead of understanding a customer’s goals and motivation, many real estate agents focus on proving themselves the best in the market.
While platforms such as Facebook, Twitter, and even your blog posts are a great way to form a one-way conversation, they are not particularly good at discovering someone’s true motivations.
Too often, things like eye contact and the ability to read body language can be more indicative of a person’s motivation than anything you can view on a smartphone screen.
Author Bio:
Rose Haughes a renowned web developer and has worked with various companies and notable projects in the UK. She has been associated with MyAssignmenthelp.com for several years, providing guidance on IT assignments for students on request. In addition, Rosell loves to travel and read novels in her free time.