Major Technology Innovations that May Influence Real Estate in 2018
In a world where technology keeps on shaping everything in our lives and in all areas of businesses, the imprints of technology are everywhere around us. The real estate industry is one area of business that technology has not only affected but also shaped, to match the needs of the 21st century. Technological innovations are changing how real estate is delivered to renters, buyers, and investors; they also change how Realtors conduct their work. Above all, they play an impactful role in how both consumers and industry professionals are approaching the market.
Technology and real estate go hand in hand. As more advancements in technology are made, the more options are available to realtors and home buyers alike. Real estate technology has surely made it easy for realtors as well as buyers to ditch the traditional and old-fashioned ways when dealing with real estate and to adopt new and innovative ways.
Now, the real estate industry is no longer working to adapt to the new technological innovations that invaded the industry; but instead the industry has embraced all that is new in the field and is working its way to make the best use of it. According to Viral Chhajer, Co-founder & CEO, Stayabode “Technology enables people to find homes and stays without having to go around physically. The ease it has brought to the real estate sector in the past few years is great to observe. As providers of communal living facilities for the mobile savvy generation, we depend on technology and innovation to give us the edge. Being able to explore new areas, tactics and marketing techniques using digital tools and advanced applications is fantastic.”
That being said, it is time to get you all introduced to some of the major technological innovations that are expected to influence the real estate industry to a great extent in 2018. From virtual tours to replacing face-to-face interactions between realtors and investors, here are the top five technological innovations to shape the future of real estate industry.
- Virtual-reality tours
Virtual-reality tour technology is expected to make house hunting a whole lot easier. This technology is a new dimension in home buying. Simply by wearing a headset that is connected to a Smartphone, potential home buyers will have the ability to look up and down, left and right, and all around to see a property. It will feel as if they are standing right in the middle of the property itself and all from the comfort of their homes. What’s even more appealing about this brand new technology is that it doesn’t apply any filters or special editing, so what you see is what you get.
Blockchain technology has opened new ways to replace offline face-to-face transactions. The new technology has introduced “Smart Contracts” which are self-executing contracts that have the power to move funds between bank accounts, transfer property titles and reconcile payments.
Also, these contracts could be verified and enforced automatically without the need for human interaction, reducing the need for agents, lenders, inspectors, and title insurance providers. Once this contract is published, it will become irrefutable, irreversible and unalterable, all of which makes the entire real estate transaction process a secured one.
3. Automated Valuation Models
This is a tool that has the ability to perform real estate property valuation using mathematical modeling combined with a database. This new technology equals competitive market analysis that a real estate agent craft. By using the AVM technology, brokers, agents, buyers will be able to calculate a property’s value by analyzing the values of similar properties. In another way, Automated Valuation Models assist those working in real estate industry to make sure that their investment is appropriate and the value of the house is appropriate for the transaction and all of this is done through examining a set of comparable properties nearby and making adjustments based on the finishes and other elements of the home.
4. Smart Homes
According to the Consumer Electronics Association and the National Association of Home Builders, smart home technology can increase the final closing price of a home by as much as 3% to 5%. Smart Home Technology surely makes living much more comfortable and safer than ever.
Having the ability to control everything on your property from afar is something that affected the real estate industry greatly. Smart Homes Technology includes everything from the ability to watch security cameras at the entrance from any Smartphone, and unlock doors remotely to turning the window shades down with the click of a button.
Real estate chatbots are an automated chat response that can hold a basic conversation between a real estate agent and a client. Chatbots work on getting basic information from the prospect and then immediately generate appropriate responses.
These bots are effective for real estate agents to generate more leads and gather more information about prospect’s needs and requirements through sending an instant response. It helps to automate an initial conversation with a lead in order to qualify that lead and send it to the right person.
About the Author: Jamie Moulton is a senior content curator at JustProperty.com, a leading real estate portal in the MENA region, headquartered in Dubai, UAE.