Do you know the future of real estate? Numerous changes arising from technology and house buyer demographics have recently been shaking up the real estate field. The aspects have significantly impacted the traditional real estate management and operations, not to mention property listing technique and average closing times.
Many investors are now wondering where real estate’s future is heading. They’re also worried about how well adapting to such changes can be done to save their investments. What about real estate agents? Will they be safe? Please keep reading to find out more about what is in store in the next decade.
Changes to expect in the next 10 years
Rent auctions
How is rent determined? A property owner guesses the rent in the market and publicizes it. However, a rental house may be priced at say $800 and $1000 to different people, and one happily pays more just to stay a few meters from their working station. Another method was developed in South Africa where bidding for rent was allowed. A management orders landlords to let tenants offer for rent. Then, a reserved rent is set, and renters prescreened when they accept the service.
Consequently, rental houses on higher demand will get more bids, and the less desirable receive the opposite. The result as rent will be the real market value for it, unlike the guesses made. In case one vacates, the next renter moving in will be excited about living in that rental.
Long-distance property purchase through virtual space
Most real estate buyers are never willing to buy what they can’t see. However, giving them a high resolution 3-D virtual video or picture makes most of them feel like walking through the property. It’s in most cases, not the exact thing. The house or land may not look the way it was mapped. Virtual reality views bring you natural lighting at various hours of the day and seasons of the year. A homebuyer won’t stop imagining how beautiful their furniture and hose arrangement would appear. Online shows through various software will make viewers figure out the final look of the property they’ll purchase in space.
Potential buyers will make an effort to walk through the property in person after seeing it online to see it in reality. But, it can be concluded that virtual reality can potentially globalize the real estate marketplace enabling buyers to purchase land or other properties worldwide.
Flat fee charged by real estate brokers
Have you ever asked yourself questions like; do we all need a real estate agent? Are their services genuinely worth the charges they give? For how long will property owners keep spending all that amount to sell the property after listing? Be sure it won’t take long. Globally, things are changing. Owners.com of the U.S. plus Your Online Property Agent in the U.K. provides flat fee rates to clients depending on the kind of attention needed. Their charges range from $400-$1000. It includes buyer funds verification, property showings calendar, negotiation support, MSL listing, and background check. They also offer premium services such as expert-written descriptions, same bells and whistles, local agent support, and sales contracts. No big thing is lost if sellers decide on this decision. The only major thing is they’ll have to take a buyer through the property by themselves. Nevertheless, who is a better marketer than one who resides in the area and the other from afar?
Rent paid directly from the tenant’s account
Most unstable rental applicants get turned down in the market, especially when the house owner has other ready options. It makes things tougher getting an adorable home if your account is tarnished. But can you imagine the case where rental applicants have their rent directly deposited to the landlord’s account? A good example is what Sparkrental.com does to its tenants, deducting the rent from their paycheck directly. It’s a sure bet for both the tenant and landlord. A rental owner is sure to get paid on time. No excuses for someone getting delays through mails. It also increases the chances of tenants getting higher quality housing after some time. To renters’ advantage, their timely rent payments increase their credit as it reaches the credit bureaus.
An increase in virtual currency system for real estate dealings
Many individuals hearing about blockchain and virtual currency mainly think about bitcoin. It’s not necessarily bitcoin, but the technology behind it- the thing that makes it exist. To understand blockchain in simple terms, it’s a network system securely tracks transactions online. It’s transparent, and history can be traced. It’s a perfect solution to real estate operations. Leasing histories could also be logged without privacy anymore. It’d help clean store records both for the landlords and tenants. Title companies’ chief role is to check title record transactions and histories. Therefore, what happens when the computer automates everything through blockchain technology?
A study recently done stated that most investors in real estate expect blockchain to do everything without a human element involved. Multiple changes and disruptions are coming to hit title companies, property management, and real estate agents. The technological changes will affect the industry with consumers benefiting, maybe except those depending on real estate jobs for survival. The best thing to do is prepare for the worst by getting alternative means because, in a decade, your job may not exist. On the contrary, it may be better than it is today.
The Bottom Line
When discussing the future of real estate, think about the evolving world and technology, shifting homeowner demography, and the relationship between buyers and property owners. For one to succeed, knowing to go by all these changes will be relevant. The rate at which this industry is transitioning is high. If everything goes online, leasing, rent-paying, virtual viewing of the property, blockchain tracing title histories, and records, among others, then minimal human effort will be needed. The question is, will real estate agents survive? Predictors and researchers suggest that there will be a vast number of changes to expect in the market. Investors should get ready to embrace the changes. In case you need more help on real investments, feel free to reach out. Some lenders, such as Bugis Credit, help clients make an appropriate investment decision.
