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Trending Technologies Innovating The Real Estate Industry

Technology in Real Estate

The real estate industry has been known to lag behind other sectors regarding digital adoption. However, the pandemic changed all that, and now we can all enjoy new technologies and apps in the sector. For example, have you experienced AR and VR technology when viewing new property listings? It’s probably the most exciting new technology trend in the industry.

You may have seen a drone or two hovering over a nearby home. Some other techs now prevalent in the real estate sector include blockchains for smart contracts and automated marketing platforms.

What’s become apparent, too, is the need for real estate businesses to ensure they have their IT security sorted to prevent the loss of customer data from a phishing email or cyberattack.

Before we get to data analysis and protection, let’s start with VR and AR uses in real estate.

Virtual and Augmented Reality

Hunting for a new home to buy or rent is stressful. It’s not as easy as viewing one home and choosing it. You usually need to see multiple properties.

The starting point is to view a few photos on an online home listing and then attend an open home viewing. You can already see how time-consuming this practice is when you need to do it multiple times before you decide to put in an offer to purchase it or an application to rent it.

Now add the complication of relocating to a new area and the travel time to attend home viewings!

Well, with virtual reality (VR) and augmented reality (AR), homebuyers and renters can now view unlimited houses or apartments from the comfort of their homes.

There is no travel time or cost to do it in person, as you can view a home as if you’re walking through with AR and VR immersion. This tech saves time and money, and real estate agents benefit from this technology, too.

More people viewing homes this way will probably result in more offers and a higher sales price. Most real estate agents are paid commission based on the purchase price, so the higher the price, the better their commission payout will be.

Agents also benefit from providing clients (home sellers) with virtual tours through AR, creating a realistic architectural image of the property. Hence, they get favourable sales and referrals to go their business.

VR and AR can also address some limitations of showing off a property. Considering that some people have deficiencies and cannot hear, speak or see correctly, such technology would help all kinds of people buy their desired properties through AI, which can be included in such programs.

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Data Analytics

All industries are using big data in one way or another. Analysing data, i.e., information, is the best strategy for making informed and accurate decisions.

Real estate data analytics is examined from a historical and real-time perspective to provide insight into patterns, pricing, and potential value in specific locations. Providing more data to clients helps agents engage more customers. Agents use data analysis to:

  • Identify the profitability of a location through geographic information systems
  • Capture, store, and display location data that makes property hunting more accessible to buyers
  • Analyse competition to provide better results

Data analytics can let agents know how they are performing against their competition. Plus, providing insight into competitors’ products, services, and sales might help agents pinpoint what they lack in systems and practices.

For example, using the Internet of Things (IoT) provides landlords and tenants with data from smart home appliances and heating systems to reduce costs and improve safety. Such methods can alert property managers of any technical failure inside the house and schedule maintenance before the issue worsens.

Email and Marketing Automation

While social media and other forms of communication are now readily used by Agents, email still rules as the preferred communication tool. There are many marketing automation platforms, and with email automation, action-triggered emails will allow you to send messages to prospective clients, along with follow-ups and listing information.
Email marketing can also be automated and works well when targeted and personalised. One of the leading causes of a data breach is emails containing personal data sent to the wrong person.

Agents cannot control junk and phishing emails that may attempt to look like they are from them. Recipients must ensure they use antivirus software like AVG and have adequate spam filter settings.

Drones

Another innovative solution to seeing properties includes using drones. This technology allows you to capture efficient and affordable aerial pictures of the land to grant access to inaccessible areas of a particular property. Dynamic images and videos can make people more interested in buying since they help you market your services better.

The drone system can be updated so clients can get an insight into specific parameters, such as landscapes, soils, and zone maps. Drones are also helpful since they can detect potential risks or maintenance problems before the visit so that the property price cannot be negotiated as a cause of specific issues.

However, not everyone can take qualitative photos with a drone, so as a real estate agent, you would have to hire an FAA-certified drone pilot aware of flight restrictions and other operational factors regarding airspace authorisation.

Blockchain

Smart contracts use blockchain technology. As buying, selling or renting a property requires people to disclose personal information, blockchain technology is now used to manage the process or digital ledger of events. It is transparent but secure, fast and error-free.

Blockchains are safer and faster for clients and agents. Encryption verifies transactions, meaning no one can fool the other, and the events are immediate. Any financial record can be checked by anyone. (This might depend on the type of business since some prefer to turn on private blockchains.)

Regarding costs, selling or buying a property on the blockchain would allow people to tokenise their assets and trade them as cryptocurrencies, facilitating the process of acquiring a property. This would also eliminate the tedious paperwork agents need to do and eliminate the risk of fraud, so this innovative solution would address the issues that the real estate industry struggles with.

Wrapping up

Emerging technology use in the industry is professionalising and ensuring it’s more secure. This is peace of mind for customers who know they have to part with personal information during sales and purchase transactions.

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Plus, with VR, walking through a home like you were there is fun.