7 ways technology is changing the real estate industry

In 2020, global real estate reached a value of $326.5 trillion.

The real estate industry is huge and constantly growing. With this growth, new technologies are needed to help brokers keep up with the market. Several technologies have emerged in recent years that have contributed to the way the real estate industry works.

Read on for an overview of seven ways technologies have done this.

  1. Virtual reality

While still a relatively new technology, real estate agents are already using VR (virtual reality) to improve the way buyers view homes. Using a VR headset, people can take virtual 3D tours of homes they want to buy.

This makes things much more convenient for the buyer as they may be able to look inside a home for sale without having to book a viewing or travel to the home itself. This can be especially useful if people want to view a property but are at a different location at the time.

This provides a whole new way for people to view properties and provides them with an immersive experience, all from the comfort of their own home.

  1. Fractionalization of real estate

Some real estate companies have started using blockchain technology to sell real estate. Through this method, companies like BlokHaus can split a physical property into fractions, and people can then buy small portions of a property.

When someone owns a part of a house in this way, he receives a percentage of the rental income. It allows investors from all over the world to buy real estate in the US. This service complies with the US legal system, so all assets are completely safe.

For many people, investing in real estate is unrealistic because they don’t have the finances to support it. Fractional real estate allows people to invest as little as $1,000, making it much more accessible for most people.

  1. Online Marketing Platforms

Traditionally, when someone sells real estate, they will meet realtors and potential buyers in person. Now with online real estate marketplaces, people can browse online listings to make the whole process a lot easier.

A buyer can browse a range of online listings and even filter the properties available to find the one that suits their preferences. These websites generally show photos, videos, and even virtual tours of the homes available. This allows buyers to peek inside properties so they can all make decisions from the comfort of their own home.

Some marketplaces even allow people to buy directly from a broker through the online marketplace, avoiding significant commission fees.

  1. Cloud Computing

Cloud computing allows companies to store data and files on remote servers so that people with permission can access them from anywhere with an internet connection.

The real estate industry uses cloud technology for a range of processes, such as:

  • Property management
  • Rental management
  • Project Development
  • Financing Rounds

Virtual data rooms provide mobile access over a secure network with much more convenience than physical data rooms. Using digital workflows helps to improve the speed and transparency of various processes, and this technology is likely to bring more benefits in the future.

  1. Management of repetitive tasks

Technological advances have led to much more streamlined, efficient processes. This means that a series of simple, repetitive tasks can be handled by computer systems, saving people a lot of time. Developers have created a wide variety of computer programs that can handle these processes automatically.

Brokers can use this time more effectively by focusing on networking, researching real estate and generating new leads. Agents can use different platforms to automate different tasks:

  • Toasting
  • Email advertising
  • Drip campaigns
  • Make an appointment
  • portfolio management
  • More

Each of these changes on their own will make a small difference, but combined they can save a huge amount of time. In addition, using computer systems for these processes can increase accuracy by eliminating the risk of human error.

  1. Smart property management devices

Smart devices have improved the way many businesses work and have even made people’s everyday lives easier. By integrating these into an IoT (Internet of Things) system, this can go even further.

Smart locks and doorbells are such devices that allow people to track and analyze the comings and goings of visitors. A landlord can keep an eye on potential security risks because they can see exactly who is at the door at any time via their smartphone.

Smart thermostats provide better temperature control in rental units. This helps keep things comfortable for tenants while keeping energy bills low.

Adding such devices to a home allows tenants and landlords to transform properties and add new levels of comfort, functionality and convenience.

  1. Price refinement

When pricing a house, real estate agents will assume certain real estate trends. Neighborhood factors, as well as specific features within a home, often determine price estimates.

Today, brokers can get much more accurate estimates by using AI (artificial intelligence) and mathematical modeling. These methods allow real estate agents to rate a property based on a range of factors, such as historical local crime statistics, nearby amenities (schools, hospitals, etc.), and nearby noise levels.

Not only does this make it easier for real estate agents to price real estate correctly, but it also helps buyers make decisions. They can look at various factors that are important to them and easily refine their choices.

The future of the real estate sector

Technology is always improving, so it’s safe to say that the ones mentioned above will make a bigger inroads in the real estate industry in the coming years. In addition, there are likely to be new developments that will help the industry continue to function.

If you’d like to read more real estate articles, check out some of our other blog posts.

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