The real estate industry is changing. If you're not keeping up with technology trends in real estate, you could be missing out on opportunities to grow your business. Here are seven tech trends you should know about if you want to succeed in real estate.
1. Artificial intelligence
The use of artificial intelligence is not just limited to the tech world anymore. It's become a reality that has permeated all industries, including real estate.
Artificial intelligence is a computer program that mimics human thought processes by learning through experience and interacting with its environment. It can be used for everything from analyzing data to making predictions about future events or trends.
Technology has become increasingly important in real estate because it can be used to examine large amounts of data and predict what may happen next based on past developments.
A good example is Zillow's Zestimate tool, which uses artificial intelligence to estimate home values based on public data like sales transactions, tax assessments, building permits, and utility bills. The company has also been using AI to predict when homes are likely to sell based on factors like whether they're currently listed for sale or have recently sold.
2. Chatbots
Chatbots are a technology that has been around for years, but they're just starting to make a splash in the real estate industry. They're essentially automated messaging services that allow you to communicate with a company through text messages instead of having to call or email your customer service team.
Chatbots can be used to answer basic questions about your business and also provide more complex information such as pricing and availability for products or services. They can even help you schedule appointments by automatically booking them for you in your calendar.
3. Virtual reality
Virtual reality is the most exciting technology trend in real estate today. It's also the most misunderstood. The technology has been around for decades, but it wasn't until the last few years that the hardware became more affordable and accessible to consumers.
Virtual reality really hit its stride in 2016 with the release of Samsung Gear VR and Google Daydream View, two mobile virtual reality headsets that work with a smartphone (in this case, the Galaxy S7 and S7 Edge). These devices have opened up a new world of possibilities for real estate agents—from allowing potential buyers to tour properties without leaving their homes, to enable agents to build a 360-degree walkthrough experience on desktop computers or mobile devices.
4. Blockchain
Blockchain is a secure, decentralized database of transactions and data that no one person or organization can control. It’s the technology behind cryptocurrencies like Bitcoin and Ethereum, but it has far more applications than just digital money.
Blockchain technology enables us to create an immutable ledger of transactions between parties in business or real estate transactions. It also allows you to track assets from end to end, all the way from when they were created, mined, or harvested until they reach the end user — which could be you!
This is important because it gives you transparency into how your assets are being used, what they’re worth, who owns them, and where they are at any given time. This means less waste and fraud in both industries: You can see exactly what was paid for an asset, whether it was delivered properly and where it’s going next — in real-time.
5. iBuyers
iBuyers are companies that buy homes directly from homeowners, then turn around and sell them on the open market. They're a fast-growing trend in real estate because they allow sellers to get more for their homes than they would otherwise — and buyers to get better deals than they would through traditional brokers.
But iBuyers aren't just affecting buyers; they're also changing how agents operate. Agents used to make money by finding buyers for homes, but now they have to market themselves as experts in selling homes directly to iBuyers instead.
6. Wearables
Wearables, such as the Apple Watch and Android Wear, are becoming more prevalent in real estate. Smartwatches have been used in the industry for a while now with apps that allow you to take photos remotely, but wearables are starting to be used for much more than just selfies.
One of the more popular uses for wearables is to allow buyers and sellers to view properties on their wrists via an app. This allows them to keep their phone in their pocket or purse so that they can browse homes without having to worry about holding onto a device or dropping it.
Wearables are also being used by agents to help them manage their businesses. The most common use of this technology is through smart glasses, which allow agents to see what’s happening at each show while they’re on-site with clients.
7. Internet of Things.
The Internet of Things is a big buzzword in the tech world. But what exactly is it?
The Internet of Things (IoT) is an ever-growing network of devices that are connected to each other through the Internet. These devices can be anything from smartphones and computer tablets to watches and refrigerators. The term "Internet of Things" was first used by Kevin Ashton in 1999 while working at Procter & Gamble as a way to describe how products can be connected to the network.
Today, these devices are being used for everything from home automation to smart cities — and real estate agents need to understand how they can benefit their clients' businesses.
1. IoT will change how we buy homes
2. IoT will improve security for homeowners
3. Smart cities will reduce crime rates
Takeaway
Perhaps the most important thing to take from this is that real estate—in many ways—is just another industry that's being transformed by technology. If you're interested in succeeding, you'll need to understand and embrace these trends. After all, it's not every day that technology opens up new opportunities for business. But as we've shown here, it's happening right now, and if you don't capitalize on this opportunity, you will lose out.
