Over the past several years, technology has played a major role in the real estate market, with tools designed to streamline the entire selling process. The recent pandemic has brought technology to the forefront as real estate professionals across the nation were tasked with finding a new way of doing business. But, what started as a temporary solution has now become the new normal.
It may be some time until the real estate industry can operate as it once did, so, for many, learning and investing in technology is now the answer. With tech-savvy Millennials and Generation Y representing the largest group of homebuyers, you’ll need to know how to speak their language if you want to remain competitive. That’s why it’s of the utmost importance that you stay on top of these evolving trends and learn how they can work for you. Here are the top six game-changing technologies in real estate for 2020 and beyond:
Artificial Intelligence (AI)
AI can be an intimidating and even threatening idea to some, but today’s AI solutions are used to meet a growing need for convenience and efficiency. Real estate AI platforms can range from robots giving house tours to immersive virtual tours offered from the comfort of your client’s couch. Beyond its consumer-centric approach, AI can streamline processes for agents by automating repetitive tasks, like answering questions in real-time with chatbots, and use predictive analytics to sift through large amounts of data to target hot leads.
Virtual Reality (VR) and Augmented Reality (AR)
VR and AR offer a unique try-before-you-buy model in real estate. Thanks to aerial footage obtained from drones and 3D technology, your clients can now “step into” a space and have an immersive virtual experience while you assist another client. Agents may soon no longer need to spend time and money staging a space, because clients are able to personalize it with virtual furniture. Many international investors already use VR before considering a real estate purchase, and this trend will increase as the VR experience becomes more immersive and sophisticated. Allowing your clients to evaluate a space will help speed up their decision-making process and is more likely to put you in touch with an interested buyer.
While Blockchain Technology is still in its infancy, it has already demonstrated its vast potential with the recent use of bitcoin currency in luxury real estate sales. Bitcoin, a digital cryptocurrency created by blockchain technology, is essentially a decentralized electronic money used for transactions worldwide. The appeal of this peer-to-peer currency is that it is borderless, not controlled by a monetary authority and has created a wave of new digital wealth valued at about $200 billion – in less than a decade. Despite bitcoin’s potential tax implications and tech bubble “feel”, sellers are willing to accept the currency for large-scale projects fueling speculations that bitcoins may be revolutionizing the financial sector next.
Ok, so this one isn’t necessarily very “new,” but it is more important than ever. If your real estate company doesn’t have an app yet, it is time to review your business strategy. Consider that 90% of mobile time by users is on mobile apps. The average American will also look at their phone every 80 times a day. This makes mobile apps a necessity if you want to reach your target market easily. Millennials who are home buyers today are always online and use these apps for everything. Mobile apps are an ever-growing trend, and this will continue for 2020.
The real estate and property management industries are uniquely positioned to benefit from big data. The more data we have the more data-driven decisions we can make. Websites like Zillow, Trulia, and Redfin have disrupted the real estate industry using the power of big data. These companies are able to compile and sometimes collect data on buying and selling trends in a specific area, traffic, demographic information, consumer survey results, and more and then analyze and collate that data to offer insights on pricing, home-value trends, and potential value in certain neighborhoods.
Internet of Things (IoT)
IoT refers to “smart” devices and appliances that are digitally connected to the cloud, constantly sending and receiving information. Machines that include smart sensors can alert owners or property managers to potential problems and even allow for predictive maintenance. But in the future, homebuyers may be able to download a comprehensive history of a home’s maintenance and upkeep through its smart devices connected to the electrical, HVAC, and plumbing. No more guessing or paying for costly inspections to understand the condition of a house.
Learning early about these rapidly approaching technology trends will help you remain competitive in the long run. Take the time to understand how they are relevant to your business. Not only will you be able to speak the language of your target audience, you’ll find that they will make your job easier in the long run.
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Marr, Bernard. “The Top PropTech Trends: 6 Technologies Disrupting The Property And Real Estate Industry.” Forbes, Forbes Magazine, 3 Feb. 2020, www.forbes. com/sites/bernardmarr/2020/02/03/the-top-proptech-trends-6-technologies-disrupting-the-property-and-real-estate-industry.