Real estate is an industry that has historically been resistant to change. That’s because there are many moving parts that need to come together in order for a transaction to close.
From legal and title work to inspections and setting up utilities, the process of buying or selling a home can feel like a long, drawn-out process. The technological revolution that we are experiencing has the potential to disrupt the real estate industry in dramatic ways. From helping first-time homebuyers find properties that meet their needs, to helping you manage your portfolio, to even automating certain parts of the process, technology has the power to streamline the real estate process.
This article lists the top five ways that technology is changing the real estate industry.
Smart Contracts for Real Estate
One of the most talked-about ways that technology is changing the real estate industry is through the use of smart contracts. Although smart contracts have been in development for over a decade, they have recently seen a lot of traction due to blockchain technology.
A smart contract is essentially a self-executing contract. It contains the terms and conditions that govern the exchange of money, property, shares, or anything of value. It is written in code that is stored on a blockchain, which is then made public.
When two parties engage in a deal that requires the exchange of money, they would use a smart contract to facilitate the transaction. The contract would contain the terms and conditions of the deal, including the price, the method of payment, and the delivery information. Once the contract is signed by both parties, it would then go into effect. The blockchain acts as a public record of the contract, making it transparent and immutable.
Real Estate Agents Automate Marketing
Real estate has traditionally been an agent-driven industry, which means that a real estate agent is responsible for marketing the property and managing the process of selling the home. With technology, this process has become much more automated.
Most modern brokerages have developed marketing tools that include digital marketing, data-driven content, and the ability to create virtual tours. The virtual tour is a great way for agents to demonstrate the interiors of properties, as well as access the amenities that the home has to offer.
Digital marketing allows real estate brokers to personalize their marketing efforts to the specific needs of their clients. This could include uploading a list of preferred contacts in a given area, setting up a virtual open house, or even using an agent’s own home as the model for a listing.
Real Estate Companies Use Big Data to Automate Business Functions
As technology allows real estate companies to collect more data than ever before, they are uncovering insights about their business that they never had before. For example, they are learning exactly how much time it takes their agents to research a house, make a showing, and negotiate the deal.
With this data, they are automating business functions such as document management, inspection scheduling, and even payment processing. As technology continues to advance, real estate companies will look to fully automate their business processes.
Automation is the Future of Real Estate
Automation has been a big factor in the growth of e-commerce businesses, and it will also be a big factor in the growth of the real estate industry in the coming years. This is because automation allows businesses to operate more efficiently, which in turn allows them to offer customers better service.
When it comes to the purchase or sale of a home, automation allows for a seamless, quick, and professional experience. From signing a contract on a tablet or laptop, to closing on the sale, to collecting the keys, to making sure that utilities are turned on, automation makes the entire process seamless.
Real estate is a very hands-on industry, which means that it can be difficult for consumers to grasp how technology can help. With so many moving parts, it can feel like a real estate transaction is more complicated than running a Google search or posting an ad on a Real Estate portal
The future of real estate looks very bright, as technology continues to play a huge role in the industry. From facilitating search to automating certain business functions, to even eliminating some of the invisible costs of owning a home.
Are you looking for a technology solution to streamline your decisions in Real Estate?