The Impact of Technology in the Real Estate Industry

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Technology is an unavoidable, pervasive part of life for most of us. There’s not any part of life where technology isn’t a staple of our daily routines, and this is true in the real estate industry and for real estate professionals.  Technology has not only changed the entire real estate industry, but it makes things different from the perspective of buyers and sellers as well.  Even concepts we don’t realize are technology-driven ultimately are in real estate. For example, the majority of home buyers start their search online, and many also use an app as part of their home search. Most real estate agents also use social media, email marketing, and other technology-driven platforms to communicate with buyers and sellers and market to local communities as well. 

The Smart Home Trend

One way that technology is altering the real estate landscape is the prevalence of smart home technology. Smart home technology is a broad term that can be used to describe essentially any form of home automation. Home automation and smart home technology can be used to improve comfort and energy efficiency, security, and general convenience.  Having certain smart home technology can also help homeowners boost the sales price of their property by anywhere from 3 to 5% according to the National Association of Home Builders and the Consumer Electronics Association. Additionally, 81% of people who currently have smart home devices said they’d be more likely to buy a home with similar technology.  The Internet of Things (IoT) is closely tied to smart home technology. IoT technology includes smart home devices like Nest, which controls the ambient temperature settings of a home paired with Alexa, just as examples.  Uniquely, there is an opportunity for IoT to be used in distinctive ways by realtors too. For example, there could be blue-tooth enabled devices in homes for sale. When there’s an open house, a signal could be transmitted to people in the area, according to a suggestion from Attom Data Solutions. 

The Cloud

Real estate professionals, as well as buyers and sellers, are probably already using the cloud and its benefits in a variety of ways. In terms of real estate, cloud platforms can make lending and closing processes simpler, faster, and more streamlined.  Data can be securely managed and stored, and things like electronic signature capabilities can further facilitate faster deals. 

Virtual Reality

Virtual reality isn’t just for gamers. It’s an important part of many consumer-based industries as well as real estate.  Virtual reality can be used to take people beyond online photos and offer them immersive 3D views of properties from whatever device they’re on. This is one of the newest trends in real estate, but it’s likely to be one that more realtors start to use moving forward. Finally, machine learning and big data could creep into real estate in interesting ways. For example, with the use of data and advanced algorithms, real estate agents could more quickly gain knowledge about pricing and the return on investment for their client's transactions. There will be opportunities to more accurately evaluate how much a home will sell for, helping pave the way for smarter deals for everyone.   If you’re ready to see the current effects of technology on the evolving real estate market, contact a top-selling realtor®. Find the perfect Realtor® with, regardless of where you’re at in your journey.  Photo Credit: pexels-burst-545012

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