Technology has taken over the world and affected many sectors, the real estate industry included. The days of traditional property deals are long gone, with PropTech or property technology revolutionizing how buyers, sellers, realtors, cash home buyers like CB Home Solutions, and investors interact. Below are a few technologies that have changed the real estate sector.
1. Big Data and Analytics
Investing in real estate is risky and complicated, primarily because the market is largely unpredictable. Fortunately, unlike before, you can make informed decisions using data-driven insights. Big data and analytics use historical and real-time information to generate insights into market trends, patterns, prices, and property values in specific locations.
Big data and analytics have brought the following effects in the real estate sector:
- Helps developers, sellers, and real estate agents price properties accurately using real-time price analysis and future price predictions.
- Price fluctuations in real estate are very common. Big data and analytics can predict future prices, mitigating this risk.
- Guides property sellers on the best marketing strategies to reach their target sellers.
- Decreases the risk of choosing the wrong properties.
Currently, most property buyers across the U.S. start by searching for available properties on Zillow and Trulia. However, insights given by these platforms are based on big data. These websites collect and analyze a lot of buyer and seller insights, internet traffic, demographic information, and customer surveys to provide meaningful information to interested persons.
2. AI and Machine Learning
Artificial intelligence and machine learning are important to nearly all modern applications. A PWC study found that businesses have adopted AI to eliminate repetitive tasks like paperwork, timesheets, and scheduling. Artificial intelligence is the force behind recent significant changes in the real estate sector.
Searching for properties and the entire purchase and selling process was tedious some years back. However, AI and machine learning have simplified these processes. Artificial intelligence converts raw data into actionable insights. This simplifies the purchase or selling process while improving customer experience. Below are a few ways AI and machine learning have changed real estate processes:
- Real estate mobile apps powered by machine learning technologies give better predictions on rental rate fluctuations. McKinsey research found that machine learning-powered mobile apps are 90% accurate in predicting changes in rental rates.
- AI and machine learning help personalize customer experiences. With this, PropTech can recommend properties and show results that suit customer preferences.
- Chatbots used in real estate apps provide immediate answers to customer questions and keep prospective customers engaged.
- AI and machine learning have simplified the process of looking for properties. Filtered search results save time, as customers don’t have to look through inappropriate property suggestions.
3. Virtual and Augmented Realities
Augmented and virtual realities have also simplified and made the online property search experience exciting and very convenient. Unlike before, customers can access listings with a few clicks. Interested buyers can also view the property through virtual tours. Augmented reality allows developers and real estate contractors to create realistic architectural designs for their customers.
The increasing adoption of real estate technologies has transformed the industry. These technologies benefit real estate agents, buyers, sellers, and developers. Other significant technologies include the Internet of Things, Blockchain, drones, mobile apps, and the introduction of 5G.