What Impact Will Technology Have on the Future of Real Estate?

What Impact Will Technology Have on the Future of Real Estate?

Did you know that over 620,000 new houses were sold in March 2020 in the USA? Despite negative world events, people continue to show interest in investing in real estate and buying new and used houses.

If you work in the real estate industry or you are considering purchasing a house, you may be wondering how you can use technology to your advantage. Virtual reality and many other technologies are changing the way many industries work.

Should you invest your time in learning these technologies? How will they affect the future of real estate? Why not take a minute to consider our in-depth article below to find out? You might just find you want to take your real estate business in a new direction.

1. Business Intelligence

In 2020, there is more electronic information available to real estate agents than ever before. They receive metrics through website, social media, and mobile application interaction.

This information allows real estate agencies to accurately model market developments. They can predict with greater success what direction the real estate market will take in the next year.

Harnessing and employing this data can allow real estate agencies to make more accurate decisions. It can make the difference between a successful real estate business and one that folds after 2 years. Learning to use accrued data is an essential step in knowing how to start a brokerage firm in 2020.

2. Blockchain

Blockchain has been a technology buzzword for the past 5 years. Its technology particularly suits the real estate industry. Why? Because of Blockchain technology’s ability to underpin cryptocurrency.

Because of cryptocurrency, the secure purchase of houses can be expedited. Now more and more blockchain-based real estate startups have emerged. Cryptocurrency transactions have distinct advantages for house buyers and real estate agents. Payments are recorded on a secure and transparent ledger. After this, payment and purchase transactions can be securely confirmed.

The impact of Blockchain technology in the real estate industry in the long term is expected to be large. Why not research and see how you can start incorporating blockchain principles into your business now.

3. Virtual and Augmented Reality

Virtual and augmented reality technologies are revolutionizing the way that people view potential purchases. Many large real estate corporations are leveraging this technology to allow remote viewing of properties.

With continual improvements in augmented reality technologies. Potential buyers will be able to virtually place their current house set-up in the new property. Alternatively, they could envisage the results of renovation to the property. The opportunities really are endless.

4. Artificial intelligence Algorithms

Artificial intelligence can help businesses to make better decisions by managing huge amounts of data. However, this does not only result in better decisions.

AI algorithms are able to look through a dizzying array of criteria in a very fast time. This could lead to faster and more accurate matching of property and potential tenants.

This criterion is not only linked to the building itself. Think for a moment about the factors that a potential buyer will consider before buying

  • Sunlight hours and local climate
  • Local school ratings
  • Local transportation options
  • Local entertainment and recreation facilities openings
  • Parking space availability and prices

AI can crunch these numbers and give accurate information regarding the suitability of a location for a prospective tenant.

5. Smart Homes

Real estate and the internet of things is a perfect match. Real estate agencies require accurate information regarding a house and its usage. Smart homes are constantly recording data and gathering information that can be used by real estate agents.

On the basis of this information, real estate agencies will be able to provide bespoke predictions on subjects such as the medium temperature in the house, the cost of electricity amongst many other things.

People who are looking for smart homes generally are looking for three things:

Security

Smart homes put security into the hands of the homeowner. The homeowner can control every light switch, sensor, and alarm system by using the smartphone in their hand. They can have confidence that their house is protected by the fire or gas detection systems. All from the mobile application in their hand. A real estate agent can even show how this works by demonstrating the usage of the app with the prospective tenant.

Cost

Smart homes are giving homeowners unprecedented control over their homes. Ever switch can be set to a timer or lowered in terms of fractions. All of these controls lower the usage of electricity and other commodities. This leads to a very efficient house.

Remote control thermostat functionality allows you to control the temperature of your house. Smart sprinklers measure and restrict water consumption. In short, smart houses allow you to limit expenses more than ever before. A real estate agent can provide real data regarding cost savings.

Energy savings

Smart homes are directly programmed to cut down on energy usage. In some cases as much as 40%. Technologies such as those that temper heating systems when windows are opened (so that the heat is not lost) prevent energy from being unknowingly wasted. This leads to a smaller carbon footprint. A real estate agent can give accurate figures based on the previous usage.

6. Investment Options

While investors could already invest in real estate passively via REITs, they have more options now.ย  These days there are also crowdfunding platforms such asย Roofstockย where anyone can passively invest in real estate.
This will allow almost anyone to invest in property very easily.ย  The younger generation in particular may be more inclined to go this route rather than dealing with mortgages, negotiations, maintenance, etc.ย  This is especially true for anyone living in expensive areas.

Future of Real Estate and Much More

Artificial intelligence, machine learning, and virtual reality are just some of the technologies that real estate agencies are beginning to adopt. The success of their application will mold the future of the real estate and property sales industry. Learning and adopting these technologies now will pay off in years to come.

If you are interested in learning about the latest technologies and business developments, we are here to help. We leverage our experience in the technology industry to bring you up to date information and poignant research. Why not follow our feed to see how we can help you today.