The 411 on real estate technology

Technology has penetrated almost every aspect of our daily lives, and its use in the real estate industry is no different.

If you want to deliver the greatest experience to your clients, it’s important to know about the latest trends. This includes technological advances which can improve the sales process and make the lives of buyers, sellers and agents simpler. There’s been a lot of buzz about how technology will impact the real estate industry. Here’s everything you need to know.

Benefits of using advanced technology in real estate

Technology in real estate has seemingly endless applications and almost instantaneous benefits. Here’s a quick look at a few of them.

Increased transparency

The sale or acquisition of property is overwhelming enough, so why make it even more so by implementing a seemingly obscure process?

Fortunately, the use of technology—on both the clients’ and the agents’ sides—can lower the perceived risk and build a more trusting relationship.

This is beneficial to borrowers and brokers alike, and it sets the tone for a flawless transaction from start to finish.

Data-driven insights

Just as it sounds, data-driven insights inform the understanding of a situation (in this case, your real estate sales process) as it relates to the presented data.

The buyer, seller and agents can more clearly see the full picture and make decisions based on those insights.

In short, this leads to better-informed decisions and greater client satisfaction.

Increase your reach

Technology will allow you to cater to a wider market.

Buyers who may have been unable to view a home due to time or budget constraints will be able to view a potential property via technology. While your knowledge of the local market will still remain invaluable, your potential customer base will span the globe.

Decrease costs

Time is money, and between the actual costs you can avoid (think intricate 3D models) and the time savings, you will not only be more effective at your job but will also see an increase in overall ROI.

The present & future of real estate technology

It’s important to stay up-to-date on the latest trends in real estate marketing, and here are just a few that relate to the present and future use of technology in the industry.

Artificial intelligence (AI)

While buyers and sellers will never accept a fully automated transaction process, AI can be introduced into various aspects of the consumer journey.

One such aspect is client acquisition.

Chatbots have evolved over the years to include more than just coded, canned responses. With the use of AI, they are now better able to meet the needs of the client and even anticipate the direction of a conversation. This adds a very human element to the technology, and it can be a helpful tool on many real estate websites and social media pages.

I recently started using a new CRM product called Field Notes, that uses AI in the form of a bot they call Sparky.  You can text Sparky your contacts, contracts, appointments, etc and he puts it in all the right places automatically.  He then sends you phone notifications to remind you of the things you need to do.

Cryptocurrency

Quick and safe transactions are important to borrowers and brokers, which is why cryptocurrency—a secure, virtual currency—is quickly gaining traction in the real estate industry.

The most likely place for its use is in international transactions. As there’s no currency exchange required, and the delivery of cryptocurrency from one account to another is almost instantaneous, it’s easy to see why its use will likely increase over time.

It can also be used by high-profile clients as a way to ensure the privacy of their real estate transactions.

While blockchain technologies have frequently been too slow to be a good option for title and escrow companies, the most recent generation of blockchain technology is significantly faster than previous generations. Blockchain’s ability to ensure the content of a title transaction can’t be changed or destroyed would enable you to see the entire title history of a property and be certain of its accuracy.

Facial recognition

Security is major factor for people looking for a new place to call home. And, while a property manager can’t exactly change the location of a property to a more secure area, they can implement some changes in their buildings.

Facial recognition erases the need for keys, codes, and even security personnel. With just a quick glance, facial recognition software can confirm the identities of tenants, maintenance workers and landlords to create a more secure environment. This technology has already been implemented widely in China, and there’s no reason it won’t soon make its way around the globe.

Virtual reality

Despite attending an open house or multiple walkthroughs, many homeowners still have anxiety because they don’t know exactly how a house or apartment will look and feel once they’ve moved in with their furniture and their decorations.

With virtual reality, potential buyers can visualize a space just the way they would like to. Have a buyer in another state? Give them a virtual walkthrough of the property and avoid extra travel altogether.

Now, imagine the benefits of being able to visualize a property that hasn’t been constructed yet. Rather than creating an expensive 3-D model and showrooms to help clients visualize the final product, VR will allow builders to create representations that they can quickly update as they make changes to the overall design and get feedback from the buyer.

Dealing with rental properties or vacation homes? Dealing with constant phone calls about how to operate a smart device can quickly eat us a property manager’s time. With VR you can create tours demonstrating how to use certain features of a home, so they can turn to your virtual self instead of your actual self when routine questions come up.

Key takeaway

Real estate marketing will always be driven by personal relationships and direct human interaction. Technology will not change this but, instead, enhance the experience so as to create a stronger client-agent connection. This is why adding advanced technology to your current sales process is crucial if you want to continue to thrive as a real estate professional. Add to that, the extended customer base, reduced costs and greater trust with your clients, and the real estate industry has a lot to look forward to.