Emerging Technology in Real Estate to Keep an Eye on
As much as the real estate industry tries to ignore it, technological advancements are bound to happen in any industry. Earlier, we wrote about the lagging habit of our industry when it comes to adopting tech — which isn’t a good thing! A reliance on manual data entry and a lot of time and money spent on mundane administrative tasks is a key feature of many brokerages, but if we’re to keep up with the quickly evolving world around us, then your brokerage has got to accept the emerging digitalization.
If your brokerage isn’t one to monitor new developments, then you’re in luck, because this blog was literally written for you. Keep reading for a breakdown of the emerging technology in real estate you need to follow and a few ideas for how to implement them in your business.
Today, companies rely on analytics to dictate everything from communications to product development to marketing efforts. Think about Zillow, Netflix and even Facebook; all companies who use data to predict what you will want and do next. We see this in areas from buying and selling data to trends, CRM tools and even back-office management. Data-driven decisions
Here’s the thing with data — it’s big. Really big. There’s so much of it that, in order to be successful, you have to figure out which aspects to focus on and what data truly matters to your brokerage. Many brokerages rely on tools developed decades ago to do this for them, and it doesn’t use the analytics to its full potential. You and your agents and admin need a back-office system that easily accesses data that is accurate and a process that is simple and fast.
Due to the pandemic, in-person showings dropped exponentially. At the onset in March 2020, Zillow reported a 188% rise in three-dimensional home tours on its site. If people weren’t watching Netflix in quarantine, they were definitely viewing the dream homes they wished they were confined to. This set the tone for what we’d see at the end of 2020 and into this year, which was a massive reliance on virtual showings.
In a National Association of Realtors survey, 52% of home buyers found the home they purchased on the Internet. What does this tell us? Long gone are the days where agents threw up amateur pictures of their listings. Brokerages of all sizes need the technology to offer 3D virtual tours of properties. It’s crucial to invest in solid photography to put up a good fight on the Internet. Potential buyers view on their own time, and your business modernizes its showings.
Drones provide an entirely new way to view a property online. We’ve all seen that viral SNL Zillow video, and it’s accurate in portraying the massive interest in viewing homes online. Drones provide a unique opportunity to get a full-scale viewing of the property from home. Brokerages that don’t begin to utilize this technology may struggle to draw in the buyers who search for properties online first.
There’s an advantage in the ability to work from anywhere. Just consider the COVID-19 pandemic — agents were forced to work from home, basically anywhere but the office. Cloud-based software provides mobility and flexibility since all the info and tools are available on the go. This key tech feature ensures your brokerage is keeping up with the times, modernizing and evolving as the technology does.
With today’s abilities, there’s absolutely no reason a broker, admin or agent would only be able to access data from an office desktop. An outdated brokerage makes it harder for agents to get the job done, and ultimately, costs your business some cash.
The “cloud” we speak of simply means your services run through the Internet as opposed to a device near your computer. Your smartphone or laptop is probably within your reach, and all that technology utilizes the cloud, which leads us to another emerging technology trend in real estate: smartphone apps. This ranges all the way from brokerages to title companies and agencies. Currently, we see real estate agencies and other real estate tech companies developing apps to create a better buyer experience. Plus, Millennials make up the largest group of buyers in 2020. This demographic is especially accustomed to app use and easily accessible information. Cater to them!
The expansion of 5G
With the promise of 5G, there only comes more questions — what will it bring? There are definitely several unknowns, but one thing that we do know is that there will be a large increase in wireless activity and connectedness. With the jump in speed from 4G to 5G, we expect to see an increase in smarthomes, security systems, connectivity, etc. Even in the most rural areas, if 5G meets expectations, buyers will look for homes with these capabilities.
Digital transaction management
The pandemic relied heavily on digital transaction management to accomplish everything that we couldn’t get done in person. And early on, the industry had put a stop to all in-person contact, which left many industries scrambling to get it done. Digital notaries, online tools like DocuSign and other electronic signature platforms proved extremely useful in 2020. In fact, the National Association of Realtors expected online transactions to improve by $10 billion in that year alone.
Don’t expect much to change because the ways of digital transaction management is here to stay. Why? Well, it’s simple, streamlined and buyers like it. With the technology to complete closings from literally anywhere, not just at home, it simplifies the closing process and requires much less work from the buyer. There’s no reason for a buyer to have to come into the office to close when they can complete it from their vacation home or the nearest coffee shop. And, come on, if you know anything about Zipi, you know we like to keep things streamlined.
Zipi is a back office and accounting solution that aims to make real estate simple from agents and deals to commissions and billings. Request a demo to get in contact with one of our expert team members.