For the longest period of time, the real estate industry was immune to all kinds of tech-savvy innovations that were occurring across the various spheres of the economic world. Standard practices and traditional real estate strategies, despite being outdated, remained in practice for a very long time. However, 2019 has been the year that has disrupted these outdated real estate practices, even though the progress was in work since 2016.
Now, we see the real estate industry ripening up to welcome technological innovations and modernization. According to a recently conducted survey, a striking amount of $2.7 billion has been invested to bring about technological innovation across the real estate industry, and since September 2018, this investment increases at the rate of 132% each month.
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Are Technological Innovations making the traditional Real Estate Agent Obsolete?
The home investment industry is undergoing a phenomenal change given the rapid pace of the technological innovation. Today’s buyers and sellers have complete control over the process with innovative searching tools, and financing options. The pace of technological evolution does not seem to be slowing down. All the innovation real estate search portals and financing options make us believe that traditional practices and real estate agents will become obsolete.
Back when the internet did not exist and real estate agents were only individuals who could provide real estate listings and analytical data, it was impossible for buyers and sellers to avail the modern day comforts of transparency, rapid deal closings and access to competitive analytical data. Now, a few seconds are all it takes for buyers and sellers to examine the market trends, place and receive instant offers on listings, and analyse their investment potential in a transparent and controlled environment.
However, it is important to know that the modern day real estate agent is also striving to keep up with the pace of the trends by innovating their practices and equipping themselves with modern visuals and other research tools. A survey on the emerging technological trends in the real estate industry that will be observed in 2019 reveals that, real estate agents will have to adopt innovative technological solutions, including drones, augmented reality, 3d visuals, 5G implementation, cyber security, co-working tools and big data analytics. These innovations, amongst others listed in the graph below, are essential to keep up with the fast-paced evolution of the real estate industry.
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Technological Innovations for the Modern-day Buyers & Sellers
Today, buyers and sellers do not have to hire real estate agents and brokers to guide them through the process of selling or purchasing a new home. Real estate investments are now powered by a variety of innovative technological tools that provide a wide variety of services for both, individuals and organizations. From market research to listings, financing and a lot more, we will walk you through all the tools that empower buyers and sellers with tech-savvy solutions.
1. Rentals and Lease Management
Residential buyers and sellers now enjoy online leasing and renting services through technological solutions that include, listing start-ups and market research tools, which allow the sellers to connect with the renters or leasers directly without the need for an agent. Various start-ups provide added-value services that streamline the process of renting for both, landlords and tenants.
2. Online Transactions
Earlier, the process of closing a real estate transaction used to be agonisingly lengthy and the buyers would always find themselves as passive observers of the process, completely reliant on the agent to help them land a good deal. However, the modern real estate tools make sure that buyers no longer have to rely on real estate professionals during any phase of the final transactions. Buyers have undoubtedly reclaimed their power with the advent of various online platforms and dashboards that allow streamlined transactions to close the deal.
Secure and fully controlled platforms help the buyers search for a place to rent or invest, whether it is a house or an apartment they seek. They can interact with sellers, negotiate an offer, or even involve an agent in the negotiation process. The agents are always there to provide assistance in case it is needed, because a professional is always efficient at obtaining credits and rebates for a first-time buyer. However, given the evolution of real estate technological tools, buyers have more control over their financial privacy, listings and search tools, and the transaction process.
3. Market Research
Both residential and commercial buyers and sellers always heavily relied on real estate agents to help conduct market research, which proved to be a costly endeavour, especially for organisations. Now, with the help of modern property valuation portals, market research and real estate forecasting tools, investors, companies and property managers can access wide pools of information, valuations, analytical data and competitive trend reports of real estate investments across the globe.
These tools have also made it easier for remote sellers to market their properties without the need for an agent. Sellers have access to immersive visualization tools, such as 3D visuals, virtual reality tools and real estate photography tools that allow them to market their properties in the best mode possible to attract potential buyers towards their listings.
4. Mortgage Management & Lenders
There are a variety of software, online platforms and mortgage lending companies that cater to both buyers and sellers in aggregating credit and providing banking data. Both buyers and lenders can benefit from these platforms, and they are designed to make the ghastly process of mortgage management more efficient and easier.
Closing Process Made Easy
Given the rapidly paced technological advancements that 2019 has left in its wake, the most prominent trend to be observed in the real estate industry in 2020 is an efficient and quick closing process. The abundance of various user-friendly real estate applications and prevalence of smartphones has allowed buyers and sellers to close deal in a matter of hours.
Experts believe that back in the day of traditional real estate practices, it took at least 44 days to close a deal on the mortgage, and the process wouldn’t quicken even if you have a preapproved mortgage, although it did reduce the waiting period to a month. Naturally, lengthy and straining buying process only adds to the anxiety of making an investment, and now, experts are seeking to develop stronger rules and compliance models to protect buyers and sellers and make the closing process more efficient.
Without a doubt, the future of the real estate industry is heading towards online transactions and faster closing processes. It is safe to conclude that 2020 will welcome a massive surge of innovation in the real estate industry, leaving buyers and sellers empowered with modern online search platforms, digital mortgage portals, online transaction aps, and a lot more. The new-age buyers and sellers will reap the benefits of a real estate transaction that is efficient, transparent and simple.
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