Does new technology fascinate you? It probably does or you wouldn’t be here. Having made that assumption, I have this to say to you: There is no doubt that real estate is one of the most thriving industries in the U.S today but it can do better. However, this requires improvement and progression in the development of real estate technology. Luckily, that is already happening and here is how.
The real estate sector in the U.S and some other countries is affected by factors such as demographics, government policies, and interest rates. Another factor that has played a role in bringing the disruption in the real estate market is technology. New technology, such as smart phones, has made the house hunting process much easier, which has boosted home sales in the U.S and abroad. Additionally, some realtors are pushing technology to the next level by providing virtual tours of potential properties to save time and cost.
You’d think that virtual tours would compromise the house hunting experience but that is not the case. Instead, the virtual tour experience is as good or real as physically visiting and inspecting a property or the area where it is located. For businesses in the real estate industry, there is a real opportunity to leverage today’s technology to help grow their assets and in doing so, boost an industry that is already worth trillions of dollars.
The Growing Impact of Technology on Real Estate
Over the last decade, real estate has changed a lot and new technologies have played a significant role in it. One of the biggest changes brought to the real estate sector by new technology is the way realtors perform their job. Thanks to new technology, realtors today need to be less hands on in the performance of their duties. Moreover, comparison sites provide consumers with more choice when it comes to buying and selling properties.
What this means is that the real estate industry as a whole is being changed by the use of technology, with new technologies changing how real estate and businesses operate on a day-to-day basis. As we get deep into another year, it is a good time to reflect on the technology that has made an impact on the real estate sector in 2018 as well as the technology that may affect real estate in the latter half of 2018 and even beyond.
The first on our list of technologies impacting the real estate industry in 2018 is blockchain. You may already know what blockchain is but how much do you know about its potential role in the real estate sector? Probably not a lot! But, that is exactly why this piece was written in the first place.
The underlying technology behind the popular cryptocurrency Bitcoin, blockchain is a decentralized database that can’t be compromised, ensuring the integrity of the data and allowing for records to be created for every property in the country. If blockchain was to become mainstream in the real estate industry, then it would dramatically reduce the potential for fraud and enable all involved to access much more data on individual properties and home owners. The benefits of this are potentially endless!
Augmented and Virtual Reality (AR and VR)
Due to their growing viability as consumer technologies, AR and VR technologies are making the news in many industries today including in the real estate industry. The potential of AR and VR technologies to shake up the real estate sector can be gauged by the success of Pokémon Go. Imagine people taking a virtual tour of a property they may buy before they actually visit the place. This could make the home-buying process much more efficient and increase the chances of people making a purchase.
On the other hand, augmented reality (AR) could be handing when people want to visualize what a vacant house will look like once it is furnished from the inside. If a potential buyer already knows what a house will look like once it is furnished, the chances of them making an offer for the house would automatically increase, which is good news for the seller of the house and the real estate agent brokering the deal.
Big Data, AI and Machine Learning
Once fully implemented, these three concepts or technologies are predicted to impact a variety of industries, which includes the real estate industry. Artificial intelligence (AI) can use the Machine learning process to process the data and identify new patterns that we might not have seen before. Imagine knowing in advance about a trend that will affect house prices such as a large number of college students moving to an area.
The above data and the ability to understand it could be the key to success in the real estate sector going forward. Realtors can more accurately react to what’s happening in the industry and use data to make informed decisions instead of simply reacting to things based on gut feeling if they are provided with a comprehensive view of the housing market, which can be made possible with the use of big data, AI and machine learning.
Peer to Peer Communication
This is one technology trend that should have real estate agents worried. While peer to peer communication is good for property buyer and sellers, it could cause realtors to fade into obscurity, which means that they could lose their worth in the real estate sector.
Online discussion forums and social networking sites that enable peer to peer communication could altogether eliminate the need for intermediary in a transaction involving the buying and selling of a property. The direction connection between the buyer and seller of a property means that there is no agent/broker fee to pay, which is an attractive proposition for many people but bad news for realtors.
The above technologies are changing the face of the real estate industry. To know more about the role of technology in reshaping the real estate sector, get in touch with us today!
by Bobby J Davidson
We love our company and we love what we do. Check out the ‘Why Percento‘ page to learn more: Love of Technology and Business! As the President of Percento Technologies International, I provide day-to-day leadership to the company’s senior management and I am personally involved in the strategy, business development and sales activities of the firm.
The company was founded in 1999 with the purpose of providing a one call source for organizations in need of Enterprise IT Consulting and Management. We also provide a line of products in the boutique Cloud Server space with a touch of high-end website strategy consulting and design services. We personalizes the IT Service experience with a team approach, working with clients from diverse sectors of industry, including energy services, financial, legal, entertainment, healthcare, hospitality, retail and general and/or corporate business.
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