No less than 20 years ago, people were relying on static ads and drove around neighborhoods looking in search of “For Rent” or “For Sale” signs when it came to finding a place to rent or buy. In 2006, a company called Zillow entered the market with the goal of changing the real estate market by inventing the Zestimate feature, which gives an estimated estimate of the cost for a particular home (which has become wildly successful). That said – a study has found that the majority of Gen Z are influenced by social media–which could include making decisions regarding their next rental.
The property landscape has drastically changed over the span of a few decades. We’re in the digital age, where technology has brought changes that are changing the way people search for the properties they want to buy, rent, and purchase. As an entrepreneur involved in real estate and technology, We’ve certainly experienced this change.
Let’s take a look at what we’re doing and the direction we may take.
The Rise Of Proptech
Proptech, or “proptech” (property technology), has driven major changes to how the real estate industry does business. Proptech encompasses a variety of new technologies and innovations you wouldn’t find pre-Y2K. In the early 1990s, it was called PC software. Today, Proptech can be found in a variety of ways and areas, from property management tools to virtual reality property tours, AI, and blockchain—all with the aim of making real estate more enjoyable.
For example, the creation and usage of virtual tours of properties have revolutionized how the general public views a property. Prospective buyers can now view houses from their smartphones. We’ve experienced this ourselves, as many of our staffers have owned businesses focused on video tours that consist of walkthroughs and tours of apartments and homes. The technology not only saved time but also opened up access to real estate and property opportunities. From real estate agents to leasing companies, individuals can cut down on time by promoting properties using their phones, making instant follow-ups, and analyzing the data they share.
We no longer live in the past of prehistoric times when landlords would have rooms filled with boxes of information about their tenants as well as buyers. Nowadays, all leases, from renewals and deeds, are stored in the cloud. Documents that include electronic signatures are organized and classified to make it easy to access, search, and even do reminders and tasks that are automated.
The digitization of real estate information is underway, and it’s more significant than most people think.
Big Data And Accurate Analytics
The real estate sector is now a treasure trove of data and analytics (in real-time). Using the data is essential for making informed decisions.
Do you remember how documents are stored on the cloud? This goes much further than the nice categorizations. It also implies that algorithms can be trained to recognize individuals and make predictions based on their information. A person who is renting and has funds in the bank and an excellent credit score, for instance, could be the perfect candidate to purchase a home. Analytics and big data tools are now considered valuable assets, offering previously inconceivable information.
It’s quite intrusive, but it’s not in a negative way. At MyState MLS, Proptech, for example, we are able to look at market trends and consumers’ preferences to offer personalized home recommendations to our clients. This is an example of how data could help sellers and buyers gain the information they require to make informed decisions.
As time passes, I hope that companies are transparent about what data is being gathered and what it is used for. Our company, for example, lets our members control their real estate listings and how they are syndicated. Our CEO started her business to enhance transparency in the real estate sector, and I’m hoping that, like us, other companies are also interested in transparency in the handling of information.
What The Future May Bring
Everyone is discussing artificial intelligence nowadays, and with good reason (ChatGPT has been and still is a hot topic). An “agent” or a program that is able to act autonomously as it perceives its surroundings and makes the right decisions to reach objectives could be an agent for real estate in the near future, assisting people in discovering the best choices for a rental home nearby.
Blockchain technology, which is renowned for its transparency and security capabilities, has also discovered significant applications in real estate and property transactions. Based on blockchain technology, smart contracts can simplify and protect the complex process of purchasing and selling property. With blockchain technology, we can eliminate intermediaries, decrease fraud, and speed up closing, benefiting everyone involved.
Looking ahead, the digital transformation of real estate gives little to no indication that it is slowing. We suggest that leaders of the real estate industry “lean in” a bit more, taking on the challenge of keeping up-to-date with technology and pursuing new methods to make the experience of real estate more transparent, accessible and easy to use. The merging of technology and real estate is indeed changing how we play. For investors and entrepreneurs alike, adopting the latest technological advances isn’t just a choice but vital to be successful in the constantly evolving world of real property.
One suggestion I’d like to give entrepreneurs and business leaders who work in the residential real estate sector is to ensure that the design of their technology wants to create has a legitimate purpose and makes an issue effectively feasible.
Understanding the issues you are trying to resolve will eventually lead you to the correct method. In the present, being aware of technology isn’t enough. It is essential to understand the population you’re targeting and the challenges they face in order to create something that they will be able to benefit from.
As we progress, we must continue to discover the infinite possibilities technology provides and ensure that our future in real estate will be marked by efficiency, convenience, and empowerment for everyone.
