Technology: How Are New Technologies Affecting Real Estate?
While many industries have seen technology profoundly change the way they operate, many people believe that the real estate industry is immune to this change. Disruption has become a watchword for many industries, Just take a look at the way the private hire industry has been affected by Uber. Or the travel industry and Airbnb.
But change is happening and has been in effect for some time now. The global pandemic has increased this change rapidly. To say that the last two years have changed the way the real estate market operates is an understatement.
How technology affects the real estate sector
Whereas real estate resembles the same industry it has been for the last centuries, it operates in a vastly different way. As with many other industries, technology is at the core of this change, enabling cost savings and improvement in communication at the same time. In many sectors of the economy, we have seen transformation happen at incredible speed due to the way tech is embraced and implemented. Real estate is at the same point right now.
According to recent research by EY, real estate firms are starting to realise that they need to embrace the march of technology in order to stay relevant to their clients and gain an edge on their competitors. Technology is no longer a nice ‘add-on’ to a real estate business, more an essential item to stay in business. Let’s take a look at some of the most important tech innovations that real estate companies need to undertake in order to stay at the top of their game –
AI And Machine Learning
At present, property searches on portals follow simple criteria. The buyer enters location, price and a few other factors and is presented with a list of all the properties that match those simple inputs. AI and machine learning make it possible for portals to look deeper, taking all manner of data into account.
For example, personality, internet search history, shopping trends and values will all come into play as the portal suggests a much more refined match of properties that suit a particular buyer.
Once present on a property portal, chatbots will enhance the experience, allowing the potential buyer to have their questions answered. An extension of this could be these same chatbots accompanying the buyer on a viewing. The upshot of this is the real estate agent is freed to complete more task on any given day.
AI and big data will come together to predict that tricky situation that comes with all properties – setting the correct price. Dynamic pricing has become an integral part of the way sites like Airbnb operate, making the most of trends and demand to attract the sale. AI tech can assess this, plus factors such as crime, schools and transport links to take the guesswork out of pricing a property for market.
Virtual and augmented reality
Just about every potential buyer starts their search online. But many of these people will go elsewhere or not follow through with their initial search. Adding virtual reality and augmented reality will help capture those buyers that slip through the net.
Creating a virtual tour of a property is now accepted as industry-standard. It is vital for buyers that can’t visit a property due to being a long distance away. VA opens up the market from local buyers to the rest of the world. And tech has taken this to the next level with properties able to be virtually staged to showcase them to their best potential.
Internet Of Things
Having a connected set of devices, known as the Internet of Things or IoT, is seen as the smart way to manage a home. But in the real estate industry, connected devices and sensors can help to build a service history of a property in the same way we do with an automobile.
Costly inspections of a home, carried out by a qualified professional, to ensure that you aren’t buying something that needs expensive attention will become a thing of the past. Smart buildings and even smart cities are coming.
With many of the innovations above, the bandwidth of 5G is crucial. Wireless spaces will allow the IoT to communicate, And with the recent tilt towards working from home due to the global coronavirus pandemic, people are looking for a home to be far more than just the place they sleep. As 5G becomes the standard, expect to see many of the innovations mentioned in this article become commonplace.
How Backbone Help With Those Trends
Backbone (with service palette) is helping buyers/investors to view multiple properties without moving out of their homes. This speeds up transactions and attracts a much wider audience. It adds value by improving what real estate firms offer. If you don’t adapt, then you’re left behind.
But you don’t have to make the large investments needed to embrace every new tech solution that’s out there. We’ve made those investments, so you don’t have to. And that’s the beauty of the cloud. As a real estate agent, you access the services and tech you need when you need it.
The most effective real estate agents of the future will be those who anticipate these disruptions and adopt them as part of what they offer. Being agile when tech is changing the landscape every day is the route to success.