The global economy is heavily dependent on the real estate market. The industry has changed dramatically over the last decade due to technological advancements. With the introduction of cutting-edge technology in real estate, the way business will be conducted forever will change. Although many real estate professionals are grateful that technology has made their jobs easier and faster, others are concerned about the future of their careers.
This fear has its origins in the past. Purchasing a home has never been easier. Buyers can search for listings that meet their needs and get preapproved for a loan in minutes. In the same way, sellers can market and find buyers for their homes. It may seem like agents and realtors are just a hop, skip, and a jump away from becoming obsolete because of the abundance of information.
Nevertheless, you shouldn’t worry. Staying on top of the latest technological advances is essential to staying relevant in the real estate. In order to remain competitive in real estate, you need to know the following six technology trends.
PropTech: What is it?
This term refers to the combination of property and technology, which is somewhat amorphous. The terms usually refer to applications and tools for the real estate industry. Commercial real estate software includes the various solutions that go into the growth process. In addition to Proptech, CREtech and REtech are named for commercial real estate technology and real estate technology, respectively.
Proptech leverages technology to improve the way people search, rent, buy and sell properties. It is a recent buzzword in commercial real estate due to the fact that cross-industry technology benefits everyone – developers, investors, and property management companies.
When did PropTech emerge?
In the late 1990s, global internet usage skyrocketed, PropTech companies first entered the tech scene.
Although real estate is the largest asset class globally, real estate technology received significantly less venture capital funding than, for example, FinTech companies in the early 2000s. Several industry experts have said that this is due primarily to the slow adoption of digitalization in the real estate sector.
Over the past few years, the PropTech wave has accelerated rapidly, driven by a range of new technologies like AI and big data. During the COVID-19 pandemic, these PropTech innovations have evolved even more as the real estate sector gets ready for a post-lockdown future.
Data Analytical Tools
Adapting data and analytics to your business can give you a competitive edge within your industry. Unsure how to do this? Are you ever curious about how Netflix knows which shows to suggest to you or how Amazon knows which products you want to buy before you do? Predictive analytics and big data are the answers.
Technology enables us to generate and collect a large amount of data, thanks to our constant reliance. Even though individual data points may not tell you much, patterns emerge when these data points are analyzed together. Predictive analytics help identify these patterns. Data from the past and present can predict consumer behavior using predictive analytics.
It is very common for you to show buyers a home that meets all their search criteria only to discover that they don’t like it in the end? It’s not always possible to find a dream home based on clients’ search criteria, which is why it isn’t always the most effective way to find their dream home. Realtors can optimize searches using predictive analytics to make results based on their clients’ needs instead of their assumptions.
Are you struggling to generate leads? Analytics can help you find new leads and reduce your marketing budget by saving you time. In predictive marketing, you can identify individuals who will sell or buy a home in the near future.
Emerging technologies can dramatically reduce the time it takes to evaluate a deal and a submarket on a micro and macro level. In the case of sophisticated investors, demographic trends and patterns allow them to identify the deals that match their criteria more quickly and easily.
Software for managing transactions
Signing contracts in person is becoming obsolete, especially when there is a pandemic. Transacting with others is never something we want to do unnecessarily, making transaction management technology even more critical. RealPage IMS, DocuSign, and dotloop are popular solutions for managing transactions. Due to the social distancing guidelines, transaction management software will only become more important.
CRM
Leads can be tracked as they move through the sales funnel with the help of a CRM system. Many agents already use a CRM, but new technology has made lead tracking even easier. Getting leads from social networks will only increase if your marketing system integrates with them. You’ll also be able to stay on top of real prospects who need follow-ups and touchpoints with the CRM that verifies leads. Whenever you have a CRM that’s not working for you, don’t just settle for that. Make sure it’s capable of handling all your real estate requirements.
Tools for automating email
Agents often use email automation to notify buyers of new listings. However, email automation software can handle far more tasks. Keep in touch with past clients through this software, which will keep you top of mind regarding referrals. Send holiday greetings, inform past clients about neighborhood happenings, and more by segmenting lists. If you want to automate follow-up emails, use software instead of manually.
Virtual tours
When selling a house, staging makes all the difference. COVID-19 guidelines from the industry have made the task more challenging. The buyer still needs assistance when imagining how spaces can be used. Staging tools that incorporate 3D Max, Photoshop, and virtual staging software show how a buyer can use space using the expertise of architects. Vacate properties are especially in need of this.
The inclusion of uncut videos in property listings should become standard. Getting to know the reality of how a property appears should not be dependent on photography taken from exotic angles or cameras.
Conclusion
Commercial real estate technology is advancing rapidly as professionals attempt to transform the current market for commercial properties in the real estate sector. As we move forward with COVID-19 protocols in place, we will see more technological advancements in the real estate industry. Keeping everything online will be appreciated by both buyers and sellers, so switching to a more technology-driven experience can only benefit. Technology can help real estate agents gain a competitive edge by moving prospects down the sales funnel and retaining them. Technological advancements can optimize business operations in every industry and change standard operating procedures.
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