Emerging Tech Trends in Real Estate
Like all other industries, real estate is changing. Technology is becoming ingrained in our lives, so it’s no surprise that it’s becoming part of the property industry, too.
At PropertyFox, we have gathered five trends in the real estate industry that is set to disrupt the industry (if it has not already) in years to come.
Blockchain is the underlying technology behind cryptocurrencies. You might have heard of Bitcoin as one example. This is a database that can’t be compromised.
If these systems were to become mainstream, it could change things dramatically for real estate agents and consumers. These systems dramatically reduce the risk of fraud.
Even the most elementary blockchain-based land registries would include digital “keys”. Public keys associated with individual properties through an unambiguous identifier stored on the blockchain and private keys assigned only to the owners of each individual property.
Use of these digital “keys,” or cryptography in general, is a significant departure from current practice where notaries and paper-based documentation are used to verify and transfer ownership.
Humanising Big Data
Realtors can use big data to make accurate and quick business decisions, this also means solutions can be more individualised.
Big data is also used to analyse and do accurate Property Valuations. This is done through a combination of information from a variety of sources to provide insightful information to buyers and sellers. Thanks to data analytics, appraising a home is becoming faster too. Most neighbourhoods and subdivisions feature similar properties. Market data based on years of sales makes it easy to produce an accurate appraisal.
Although big data in real estate has led many companies and individuals to riches, there are just as many home buyers and amateur investors who have lost money due to bad investments by relying too heavily on big data. Data analysis is more a tool to use when making an appraisal, not a replacement for the appraisal process.
Augmented and Virtual Reality
Virtual Reality (VR) technology is a great way for realtors to market staged properties. VR also allows you to create stunning 3D real estate tours and get properties staged so that your clients can check them out.
Big data is also used to analyse and do accurate Property Valuations.
Meanwhile, Augmented Reality could come in useful when people are trying to visualise what an empty house will look like once they’ve moved their furniture inside. If a potential buyer has already taken the step of planning out exactly what the house is going to look like, the chances are that they are keen enough to make an offer.
The physical and digital world are starting to blend together with advancing technologies. This is evident with Augmented Reality and with the trend of physical-digital interactions.
How will this impact real estate? In addition to lock boxes on houses, what about a button that alerts the nearest real estate agent to show the home instantly? Consumers driving around a neighbourhood can get an instant showing of any home on the market.
These days, anything is available at the click of a button and the internet.
This trend includes providing customers with more custom search results. The search experience on various real estate sites is cumbersome. Consumers have to enter and re-enter several fields to start their search with property based on a finite set of data.
With Machine Learning, the consumer would be put in the centre of the conversation, instead of the property. The sites will also understand each unique consumer and make recommendations based on preferences that go beyond beds, baths and price range.
This would be like one’s experience on sites like Netflix, Spotify or Amazon. The real estate search experience will be more custom and consumer-friendly than ever before.
The real estate industry has changed a lot over the last decade, PropertyFox, being a tangible example, is a real estate company that has really implemented and executed some of these tech trends.
PropertyFox is South Africa’s leading smart real estate agent. Striving to do things differently and providing excellent customer service through sharing information openly and honestly to ensure our clients are always in the know. We charge only 1.5% in commission or a minimum of R35,000 (whichever is higher) – that has saved customers up to 80% in fees.