Some industries are obsessed with the march of technology, eagerly grasping innovations as soon as they can in an effort to get ahead of the game. Ecommerce is the perfect example of such a field: online sellers will do anything to outperform their rivals. Others are more stubborn, sticking to what they know and being wary of looming advancements. This is particularly true of industries that stand to see automation driving mass redundancies.
The real estate world is somewhere in the middle. It’s still quite possible to sell property without leaning on technology, but it’s getting harder at a significant pace — and then there are broader consequences of technology that must be taken into account. In this post, we’re going to look at five ways in which tech is changing the world of real estate. Let’s get started:
It’s making it easier to find property
Perhaps the most obvious way in which technology is changing real estate, the rise of online real estate listings is making it massively easier for prospective buyers to find and filter relevant properties. Instead of visiting estate agents in person, they can stay where they are and steadily narrow down their searches in accordance with their preferences. That isn’t to say that realtors don’t have parts to play, of course, because they certainly do: by providing online consulting services alongside their property search services, they can cater to all levels of interest.
It’s saving buyers (and sellers) money
Buying property is expensive, and it was hard enough for most people before a pandemic came along and sent economies into recession, so any viable method for cutting back the expense even slightly will be warmly received. This is where AI enters the picture. While it isn’t exactly the kind of AI that science-fiction has long expected, it’s now possible to use algorithms to replicate some elements of human thinking — such as finding the best financial arrangements.
Consider the duty of a mortgage broker, for instance: it’s possible to use machine learning to compare deals automatically (one example), saving the searcher time and money. Eventually, there will likely be all-encompassing automated services that can look at personal finances and requirements and come up with suggestions for everything from locations to specific properties.
It’s making more locations viable
Working remotely isn’t just a technical possibility at this point: when offices everywhere had to close, companies were forced to allow their employees to work from home, and they’ve now learned that it doesn’t affect productivity as they thought it would. In fact, it makes people more productive, and allows them to have more free time. Factor in the progress of internet infrastructure (and mobile data connections) and you have the modern notion of buying a home out in the country because you don’t need to work from the company’s office.
It’s changing property viewings
People will always want to visit their potential homes in person, because that experience can’t fully be replicated through technology — but much of it can. More and more real estate agents are investing in 360-degree video and even fully-navigable VR recreations that people can experience if they have VR headsets (they’re not mainstream, but they’re getting ever closer).
If you can’t get somewhere to see a house that interests you, you can learn enough about it to rule it out or mark it down as somewhere worth your time and effort. In the coming years, it’ll get harder and harder for people to sell houses that they don’t comprehensively document online.
It’s granting greater access to guidance
As anyone who’s bought property will know, it’s a long and often-frustrating process, and going into it with no prior understanding of what it involves is a recipe for confusion. What should a buyer look for? What are the most common red flags? How can they tell if a house is overpriced or a bargain? All of the answers to these questions are out there online, available for free.
And it isn’t just a matter of having access to comprehensive guides. There are social media accounts dedicated to explaining the complexities of real estate, and YouTube channels that feature examples of what buyers should look for (and what they should avoid). In short, tech has ensured that anyone willing to do basic research should find the property-buying process easier.
By bringing together the online and offline words, tech is making real estate more accessible, transparent and convenient for everyone — as well as lowering general expenditure. Over the next decade, we can expect this process to accelerate.
Credited Author: Ade Labinjo
Disclaimer
BDAR is not affiliated with Breezeful or Three Sixty Cameras. Links are to provide more insight on the topic of machine learning and VR technology.
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The Barrie & District Association of REALTORS® (BDAR) represents over 1,100 REALTORS® in the Barrie and Simcoe County region. BDAR provides its members leadership opportunities, professional development, and other tools and services to help them deliver a high standard of services to their clients. BDAR is community‐focused and believes that community prosperity is largely based on shelter and home ownership. The Association has a strong focus on affordable housing and helping first‐time buyers understand how to get on the housing ladder. To learn more visit https://bdar.ca
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“REALTOR®” is a professional designation. A REALTOR® is a licensed real estate professional belonging to local, provincial and national associations. They have completed an intensive real estate program and have the skill set, expertise and experiences that you will need when buying or selling your home. Realtors® have a network of resources available at their fingertips. They understand financing and mortgage rules, insurance and liability coverage, and all the legal details involved in real estate. As a skilled negotiator, your local BDAR Realtor® will help you get the most value when buying or selling a home.
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