The global real estate investment market's total valuation exceeds $10.5 trillion. This large market faces significant disruptions that present compelling opportunities for investors.
Real estate technologies have disrupted the real estate industry. These technologies give buyers and sellers more ways to showcase their homes. PropTech also assists with more visibility.
Staying up to date on the latest real estate technologies will give you an edge. The PropTech industry provides clues on how to keep up with the changes. This industry follows real estate technologies.
Want to expand your real estate empire? Watch these emerging real estate technology trends to stay up to date.
More People Will Buy Real Estate Online
The digital revolution forced many industries to adapt. This digital boom recently caught up with real estate. A NAR report reveals 43% of buyers look online for real estate properties.
Fewer buyers want to make the trek to a property. They can look at the property online and make a decision.
Real estate agents must optimize their online listing for this pool of buyers. Include a detailed description of the property highlighting benefits and essential details.
This buying trend will increase the number of remote investors. More investors on the east coast may buy properties on the west coast. The reverse scenario will also play out often.
This trend can lead to more automated rental and purchasing property platforms. These platforms make it easier for buyers and sellers to interact with each other.
More Agents Will Use Chatbots
Real estate agents come with limited availability. They may worry about keeping up with buyers and sellers. Chatbots can act as backup for real estate agents.
These bots save agents considerable time by answering people's questions. Chatbots can also ask questions, so clients provide information ahead of time.
Chatbots can help agents qualify leads and speed up communication. These bots respond to clients in real-time. Clients will enjoy quick access to information.
Chatbots will enhance each client's experience and give agents more time to get leads. Agents will feel less pressure to respond to evening messages. They know the chatbot will cover most requests.
Virtual Reality Is Here to Stay
The pandemic created a boom in virtual reality for real estate. Sellers can provide virtual tours of the property. These tours come with 360-degree views of the interior and exterior parts of the property.
Buyers can gain insights on the property through a virtual tour. Unlike traditional house tours, buyers can view virtual tours anytime and anywhere.
A buyer in New York can attend a virtual home tour in California. This setup gives the New Yorker critical home details without a trip to California.
Augmented reality acts as a solid complement to virtual reality. Virtual reality gives people an inside look at your home. However, empty rooms and outdated furniture may turn the house into a hard sell.
Virtual staging has become another popular service that helps potential buyers envision themselves living in the space even if it is not furnished.
This service comes at a significantly lower cost than a physical staging, and it allows viewers to look through still photos of a home and see what each room could be used for.
Potential buyers can look at the empty room and click to the same image with virtually added furniture and decor and imagine how they will live in this house.
Blockchain Technology Eliminates the Middleman
Every real estate transaction encounters middlemen. The work to close a property continues after an offer.
Third parties increase costs and take up considerable time. Some third party groups can ruin a real estate deal.
Blockchain technology solves this problem. This technology enables secure transactions without a go-between.
Real estate professionals can create a block by digitizing information. Real estate professionals achieve this objective through smart contracts. These contracts get stored in a database, known as the chain.
The blockchain is public and fully encrypted. Thousands of computers around the world verify the transaction instead of costly middlemen.
Blockchain technology increases the security of real estate transactions. Blockchain technology's decentralized and encrypted nature provides extra safety from cyber attacks.
The blockchain does not store the personal information of participants. This information gets excluded from the blockchain.
The public can only view digital signatures and usernames. This feature means your personal information won't float around after the deal.
Social Media's Growing Prominence for Marketing
Social media allows billions of people to interact with each other. Various platforms connected the world and brought people together.
Businesses use social media to find new customers and engage with their audiences. Almost every company has a social media presence. Some companies use every social network, such as Instagram and Facebook, while other stick with a few platforms.
Real estate agents can use social media to find leads and keep up with local trends. Agents can interact with buyers, sellers, and other groups.
Social media can help real estate agents grow their networks faster than in-person events. You can readily interact with experts in any real estate market.
Real estate brokerage firms will continue using social media to showcase company culture. This posting strategy will help with recruiting agents and building a brand image.
Real estate agents utilize social media in different ways. Some agents invest in social media advertising to get in front of more people; however, its growing importance will remain constant.
E-Signatures Speed Up Deals
Real estate agents need to sign numerous documents before a transaction gets completed. Signing documents in person can inconvenience agents, buyers, and sellers.
E-signatures allow all parties to sign documents from anywhere. This flexibility enables quicker deals and less stress. Parties no longer need to meet at designated times.
E-Signatures became more common during the pandemic, and they will stick around for many years to come.
E-Signatures encompass many industries. Real estate will continue following this trend.
Fractional Property Investing
Not everyone has enough money to make a 20% down payment on an investment property. Investment properties also come with various costs, such as the mortgage and maintenance.
Retail investors continue finding success with fractional property investing. This new wave of investing lets many investors pool their funds together. Crowdfunding sites help facilitate these investments.
Fractional property investing makes real estate investing more accessible to everyone. Even if an investor can afford a property, putting your money into a single property comes with risks.
Fractional property investing lets investors diversify their portfolios. Instead of buying one property, investors can own partial shares of many properties. If one property underperforms, other properties can compensate.
Airbnbs Will Become More Common
Investors have warmed up to Airbnb rentals. These rentals produce more cash flow.
A long-term tenant can become a legal nightmare. Airbnb rentals help property owners avoid those scenarios.
More investors will buy Airbnbs spread across large distances. They will focus on hot markets instead of nearby markets.
Investors can hire property management in the area. These companies can assist with maintenance and finding tenants.
Data Will Help with Predictive Analysis
Data helps buyers, sellers, and agents make better decisions. Data provides insights on market performances and recent selling prices. Real estate agents need data for predictive analysis models.
Real estate agents use predictive analysis models to predict future outcomes. These models can help agents correctly price a home and find better leads.
Your predictive analysis model can account for various factors. Some real estate agents focus on the market, while others use economic indicators. Some agents use both data points and several others.
The world has increasingly become data-centric. Trial and error is not the only way to make decisions. Agents can use data to assist with their choices.
Easy to use predictive analysis software will catalyze this trend. Real estate agents not using predictive analytics software will struggle to keep up.
Smart Homes with Perks Will Become More Attractive
The real estate market will move alongside millennials' desires. Millennials make up the largest group of buyers.
They currently seek smart homes with several perks. Property owners will benefit from incorporating multiple smart features into their homes.
These features will drive demand and attract more millennials.
Real estate agents will continue monitoring millennial behavior. With each passing year, millennials' influence on the real estate industry grows.
Keep Up with Real Estate Technologies
Real estate technologies give us a glimpse into the future of real estate. These disruptions provide buyers, sellers, and agents with more capabilities.
Keeping up with PropTech will ensure you stay ahead of the competition. Digitizing your home listing will expand your pool of potential buyers. Hommati can assist with this process.
We offer virtual staging, drone video and photography, 3D tours, and more. Contact us today to see how we can help.