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How Technology Is Changing The Face of Real Estate Industry
Author: Bizzman; Published on: April 10, 2020
Technological innovations have influenced the real estate industry significantly. Over the years, several companies have transformed into industry leaders that increased the number of agents and transactions across the residential and commercial markets.
The real estate industry induces stress among sellers and buyers as they need to make vital decisions and transact a huge amount of money as and when required. Companies and agents make their living off of the commission from the same dealings. Here, you will get insights into how technology is influencing this particular industry.
The Impact of Technology on Real Estate Industry
Take a look at the ways technology affects this sector :
The Shift To Mobile Devices
Due to the growing shift from desktops to mobile devices, real estate brokerages strive to be relevant in marketing. They have started using agent-facing and client-facing mobile apps. A good in-app messaging platform helps agents in managing and monitoring clients, chatting and sharing listings. To promote client engagement, you need to mobile-optimize your online content.
In order to attain market share, a myriad of startups have started offering numerous resources to prospective property buyers who aim to offer independence and clarity where a traditional real estate process lags behind. Many tools focus on publicly accessible data capitalization to provide people with a clear insight into the real estate industry. Brokers always prefer potential customers to devote more time to view their properties digitally and acquire maximum information on the same.
Like prospective customers, real estate agents pay equal importance to data. Several brokerages are now offering both well-built and customized tools to keep agents informed and updated on the constantly evolving neighbouring markets.
Although some companies have embraced the aspect of data and analytics in the market, others are giving it a miss to the full brokerage process. Several websites help buyers to independently manage property search, set up viewings and communicate with landlords.
The proprietary platforms use advanced algorithms to customize search so people view apartments as per their preferences. The algorithm gives people full control over their searching and experience a customized process. It directly connects sellers and buyers to reduce fees and transaction costs. Technology has proved to be a powerful force in the real estate industry. Most of the companies are making money by selling advertisements to agents. It acts as a strong funnel lead generation tool but cannot close deals.
As the real estate industry is mainly based on commission, an agent who is not selling suffers a loss. The industry deals with a high amount of work including negotiations, appraisals, mortgages, legal duties and commission splits. Agents need to sell as much as often to earn abounding profits.
Both small and large brokerages have embraced technology for better workflow. As internal tools have automated and facilitated the tedious activities, they have turned out to be profitable resources for agents at some of the leading brokerage firms. The agents can easily manage transactions and thus effectively deal with business operations.
The Bottom Line
Technology wave has and will continue to influence the real estate market. As a player in this industry, you need to keep with the discussed latest technological trends to set yourself apart from your competitors and take your business to the next level.