How Technology is Changing the Real Estate Industry
Technology is changing the world around us.
We see it so often we now seem to take it for granted. Of course we can be connected to the internet while flying on a plane. Of course we can have a video chat with someone thousands of miles away.
It’s changing the way we live, and it’s changing how we work. Technology is changing the real estate industry as well. Through virtual tours, advanced data, and numerous other advancements, real estate sales, lending, and investing is constantly changing.
Here are some of the top ways that technology is changing the real estate industry. Watch for these changes the next time you purchase a home!
How Technology is Changing the Real Estate Industry
Virtual Reality Tours
In that past, in order to get a look for the overall size and layout of a home, you needed to drive to the location and take a tour. Sure, you could look at a few photos, but these did not provide the same level of understanding that you’d get from actually walking inside the home.
Virtual reality tours are slowly changing that fact. While they don’t achieve the same level of immersion as actually walking inside the home, they give you a strong feel for the overall structure, layout, character, and charm (or lack thereof) of the property.
This technology can have profound benefits for buyers, sellers, and real estate agents. For one, it saves time and money. Buyers don’t have to spend a full afternoon visiting a property when they can simply take a virtual tour. If, after the VR tour, they are still interested in the home, they can visit it in person.
It also has benefits for selling homes that are still in construction. A blueprint and a few still renderings don’t give the same level of information as a virtual tour in a home that has yet to be built.
An application, especially an application for pre-qualification, can move extremely fast thanks to technology and connected mobile devices. Previously, you would need to visit a lending agent to get pre-approved, but now you could be virtually anywhere in the world and get pre-qualified for a home purchase.
This is making the application process much faster. In turn, this means a faster real-estate-buying process, as people are able to swiftly move from the application to home shopping.
Official Loan and Sale Documents Can Be Signed from Anywhere
You no longer have to visit the lender’s or real estate agent’s office to finalize the official documents, as these can be done online, often through the use of a small smart phone. This is an extremely helpful option for people moving to a new area, and it can greatly speed up the process, as they no longer have to wait days for documents to arrive, sign them, then send them back. Some documents may need to be physically signed, depending on the purchase and the loan you are using, but with today’s fast pace and a general acceptance of technology, most can be done from a mobile device.
Commercial Real Estate Seeing Short-Term Leases
The sale of residential homes is certainly not the only part of real estate that is being impacted. In fact, there are many companies that are taking advantage of a rise in the “share culture,” which sees more short-term leases and services.
For example, co-working companies allow businesses to avoid signing a full 10-year contract, and instead go with a short-term lease on office space. This eliminates the hassle commitment of renting a space longterm, and makes businesses more flexible and nimble. There are also fully-furnished work spaces that can be ordered online, and even homeowners can lease their space to companies.
Customer Relationship Management (CRM) Software is Making Agents More Efficient
Customer management is an important part of virtually all businesses, but especially those that form an ongoing relationship with a high number of clients and customers. The real estate industry certainly fits this description.
Software from the leading companies in this field allows agents to track customer communications, organize contact information, and analyze trends. An agent can look at the sales funnel, decide where to take action, and report results, and it can all be done in one well-organized area. This makes the process of working in the real estate industry, as a real estate agent, lending agent, attorney, or virtually any other position, more organized and efficient.
The Role of the Real Estate Agent is Changing
There are numerous websites and platforms that allow sellers to connect directly with buyers. It would seen, therefore, that the role of a real estate agent is being phased out, as buyers and sellers can avoid the middleman and connect directly. But this is not the case, as real estate agents can still provide a valuable service, helping buyers and sellers navigate an increasingly-complex, and technical, process of buying and selling a home.
Agents can still be successful, but the most successful will be the ones that harness technology, both to find new clients and to deliver the most efficient, reliable, and affordable services to their contacts.
Analytics Provide New Insights for Investors
If you are an investor, you need to be using data and analytics to improve your overall performance and profitability. Real estate investors are taking advantage of artificial intelligence, which is fueled by data insights, to help with their decisions. Technology is providing insights into new potential markets, creating fantastic opportunities for investors who may not have realized there was an opportunity to begin with.
Data and analytics can chart realistic revenue and create growth plans, and it could even be used to identify properties that would (potentially) provide the greatest returns. From controlling expenses to increasing the returns on investments, analytics is increasing the profit potential, as well as the competion, for real estate investors.
Put Advanced Technology to Work for Your Real Estate Decisions
Technology is changing the real estate industry, and you can be a part of the excitement! Contact our team today and work with a group dedicated to using the most advanced technology, including data analytics, to help you make a great choice for your next home or investment.