As the Internet becomes more ingrained in every facet of our work and personal lives, industries that primarily rely on person-to-person interactions have started to adopt new technology. Adopting new technology allows companies to free up valuable time and resources for future development. Here are five ways technology is transforming the real estate industry.
Some fields have begun state-of-the-art technology adoption more slowly than others.
One market that’s been slow to change is the real estate industry — but under the surface, high tech is completely transforming the industry.
The real estate industry is massive.
In the United States alone, the land and housing market contributes over $2.7 trillion each year to the U.S. economy. Tech companies see the potential of this market and are developing products that help buyers, sellers, and investment firms. Here are five of the most innovative ways that technology is helping real estate professionals and their customers right now.
1. Repetitive Task Management
Realtors often fill out the same paperwork over and over across multiple properties. That eats into valuable time that could be spent networking, working leads on social media, or researching new properties. Entrepreneurs have studied these inefficiencies, looking to create products that automate redundancies.
According to Roy Dekel, CEO of real estate software company SetSchedule, task automation is becoming increasingly critical for real estate transactions. “We see these technologies throughout the real estate ecosystem. They include email and drip campaigns for marketing, automated appointment scheduling, technologies that target and communicate with prospects, and even automation in the commercial space with portfolio management. These small process changes can make a huge difference in business strategy, prioritization, efficiency, and service.”
Using these small process changes to create a robust difference in strategy is especially true for asset management research. Asset management research usually involves finding the monetary value of every property in a real estate company’s portfolio and creating informative spreadsheets of that data. Tech companies have made tools that continuously monitor these property valuations, updating information in near-real-time without manual input.
2. Online Real Estate Marketplaces
Real estate markets have always relied on in-person meetings between brokers and potential buyers. But technology has allowed for online marketplaces to be relatively secure and trustworthy, even for industries like real estate. Online marketplaces make it easy to see a list of all the homes that fit your preferences without leaving your living room.
These sites provide things like virtual tours that you can view on your smartphone. Even better, some of these marketplaces don’t even require interactions with in-person real estate agents at any point during the process. Tech-enabled brokers let people buy with the assistance of a broker but without the steep commission fees.
3. Price Refinement
Brokers often rely on just a few neighborhood-level factors and house features to make price estimations for properties. But with technologies like artificial intelligence (AI) and precise mathematical modeling, they can estimate prices more accurately than before.
These upgraded models take into account everything from historical crime statistics to noise levels and nearby markets and schools. Experts like Bernard Marr, a futurist and technology adviser for businesses across the world, believe that usage of this tech will let homebuyers make more intelligent real estate purchases in the future.
4. Smart Devices for Property Management
The Internet of Things is the collection of non-personal computer devices connected to the Internet. This includes everything from Google Home and Amazon Alexa to smart sensors that don’t require human input to transmit data. These devices are just starting to be integrated into rental properties. They provide unique opportunities for tenants and landlords to transform the landscape of property management.
Smart doorbells and locks give tenants enhanced security by seeing exactly who’s at the door without having to go near that door. They also give landlords a way to monitor potential security risks. Smart thermostats intelligently change the temperature in rental units, lowering heating and cooling costs significantly while maintaining the right temperature for tenants.
5. Personalized, Targeted Real Estate Ads
High-end customers might do a home search in a certain area but can’t find exactly what they want. Ad tech is changing this, however. With ad management know-how, real estate brokers can now target perfect customers for new on-the-market homes.
Experts like John Hall, co-founder of scheduling app Calendar and marketing expert, believe that personalized ads will change how real estate marketing is done. For example, you might target ads based on several bathrooms, proximity to other houses, and other metrics.
The real estate industry has historically been slow to change. However, with cost-effective technology not only helping real estate agents and brokers but also homebuyers, space is adapting faster than ever. Moreover, whether it’s machine learning algorithms or innovative software, real estate is entering a new era that may bring more profit for everyone.