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The real estate industry has been in existence for decades, and while the concept of ‘buying and waiting’ is still alive and strong, the industry has evolved and grown to incredible proportions. In the past, a buyer would have to spend an enormous amount of time checking out different properties in person before choosing the right one for them.
All of this is changing rapidly today. Through the use of proptech, or property technology, real estate providers are now able to use technology- and information-based strategies to manage and optimize their properties. This has revolutionized how realtors buy, advertise, sell and even showcase their properties.
In this article, we look at four ways that technology has changed the real estate industry.
PropTech allows for new marketing strategies
Although in-person property visits are still a major part of the real estate industry, the initial home search is often done online. According to recent statistics, more than three-quarters of all homebuyers initiate an internet search to look at available properties before narrowing them down to a few prospects. This explains why all real estate providers need to have a navigable and regularly updated website.
Seeing the role the internet is now playing in the industry, it makes a lot of sense for realtors to implement digital marketing. For example, social media marketing and related strategies allow them to meet the buyer where they are. Gone are the days when agents would have to hand out flyers and place huge ‘TO-LET’ signs outside their properties.
PropTech allows for innovation
The real estate industry is one that has for a long time remained rigid and unchanging. Incorporating new technology goes a long way toward facilitating innovation and change in the industry. For one, buyers can now take virtual tours of the properties they wish to rent or buy. This makes it easier for people in other states or cities to find new homes without needing to travel to view them.
By using technology, real estate companies have also been able to convert their homes to 3D models. These models can be accessed on their websites, giving prospective homebuyers a clear picture of the home they’re looking to rent or buy. This makes it easier for buyers to compare different houses and make decisions, leading to faster conversion rates. Real estate tech companies that offer furnished apartments are great examples of companies leveraging this tech to showcase their offerings.
PropTech allows for data collection
We’re living in a data-driven society. In the past, many real estate businesses had no way to know what their target demographic looked like and wanted. Today however, PropTech has made it possible for realtors to unravel the specifics of their ideal clientele.
This client profile includes such details as age, income and preferences. Through the use of apps like Zillow, which are centered on data, sellers can analyze various trends and go about marketing their properties in a more strategic manner. This has proven to be way more impactful, since they’re no longer throwing darts in the dark.
PropTech and the Internet of Things
The internet of things refers to the different devices and appliances that send information and data to the cloud. Today, most modern homes use technology in a way that would have seemed impossible in the past. Thanks to PropTech, sellers can now manage and inspect properties without having to set foot in them.
Many homes now come with features that can be controlled remotely: these include thermostats, alarm systems, and even sprinkler systems. This is incredibly convenient for homeowners, as they can now monitor, inspect and manage their homes even when they’re away on vacation.
What does the future hold?
Property technology has been taking shape for the past few years now, changing the way agents and homebuyers view and approach the process of selling, buying and even renting homes. Through this tech, prospective buyers can take virtual tours of new homes without having to be physically present. The result? They can widen the scope of their search, giving them access to the vast number of properties available at any given time.
Property technology also serves as a key tool for real estate providers dealing with numerous properties. Most can now run inspections and track activities in their properties without leaving the company offices!
Technology is here to stay. The businesses that have incorporated it into their day-to-day are enjoying the benefits, including more market reach and consequently increased revenues.
Have you implemented any proptech in your real estate business? We’d like to hear about your experience in the comments below.