18 May 2020
What Is The Future Of Real Estate & What Does That Mean For Realtors?
The future of real estate is changing. Thirty years ago, people used newspapers and recommendations from family and friends to find a new house. 2020 isn’t so different, except that the papers are now apps and websites, and social media and other digital marketing strategies widened our network of contacts.
That said, the ability to adapt to new technology is crucial for a successful realtor. So, what does the future hold? Read on as we explore six areas of technology that are pivotal to the future of the industry.
Automated Processes
Automation platforms are taking the administration and fiddly time-consuming work out of realty. To maintain a competitive edge, leading realtors are automating the bulk of the marketing and administration work using online lead generation platforms like LeadConversion.
This approach overcomes the challenge of keeping up communication with prospects at different stages of the sales pipeline and nurturing these leads. Follow-ups are automated using preset email and text message workflows, so you don’t miss any opportunity because you have been too busy to respond to all your emails.
Virtual Reality and Augmented Reality
Virtual reality and augmented reality are not mainstream advertising tools, but there is no doubt they will be in the future. When you look at the success of video marketing, it is clear that VR can extend this further by giving prospective buyers a fully immersive, 3D experience.
The use of virtual and augmented reality will allow buyers to explore properties quickly and cost-effectively, from the comfort of their own home. The benefit of VR for out-of-town investors or people who are relocating is clear. Imagine your clients being able to wander down the hallway of what could be their new property from the other side of the country, or in a quick 15-minute break between meetings.
Blockchain
You might have thought that blockchain technology is only relevant to finance, but it is an emerging technology that many industries will implement over the next few years. Simply put, blockchain refers to a “chain,” or public database, of “blocks,” or digital information.
The future of real estate is utilizing blockchain to overcome the pain points around costs and transaction speed. Firstly, it can accelerate the conveyancing process using digital records, which are entirely transparent for all parties.
The sale can be finalized via a smart contract, which fast-tracks this process so vendors can sign up online in just 60 seconds.
Secondly, blockchain is also likely to allow for tokenism or fractional ownership within real estate. Purchasing property in this manner would enable you to buy tokens representing ownership of a fraction of an asset that can easily be traded. Investors would be able to own fractions of multiple properties rather than a single house, unit, or commercial building. This strategy diversifies the portfolio and reduces risk significantly.
Live Auctions
Live-streamed auctions are nothing new, but the outbreak of coronavirus fast-tracked the up-take of this online approach. Even as lockdown restrictions ease, some people will likely choose to register online or by telephone and watch the auction via LiveStream.
One big positive to come from this shift is that a combination of virtual home tours and live-streamed auctions make it easier for overseas or out-of-area investors to inspect and bid for a property.
Predictive Analytics
You might have heard this term used linked pandemic planning, but have you seen it applied to real estate? Predictive analytics is a type of data science that leverages machine learning and artificial intelligence to draw insights from statistics and data to make accurate predictions.
In real estate, this approach can identify market trends, predict which suburbs will deliver the most sales, or offer a 10-year forecast of the value of a property. Using predictive analytics means the realtor can rely less on guesswork and mass marketing in favor of a more targeted approach.
Demand for Smart and Sustainable Homes
Millennials now represent the largest group of home buyers. These tech-savvy and socially conscious consumers are looking for homes that optimize their lifestyle in a sustainable way. Many smart home features are designed to make your day effortless while also reducing your home’s environmental impact.
One example is a smart thermostat that can be programmed to follow your routine and conserve energy when not required. A smart shower head allows you to adjust your water usage via an app and track how much water and energy you are saving. Smart lights can be switched off remotely via an app, ensuring you never go on holiday and accidentally leave the lights on.
Properties that offer smart features and sustainable energy solutions such as solar panels will be highly sought after moving forward.
The future of real estate is changing before our eyes. Understanding these six tools and trends will help to equip you for the future.
