The growth of technology has transformed the conventional real estate industry as customers demand smarter solutions while real estate businesses demand efficiency. The whole range of technologies for real estate business falls under the “PropTech” (Property Technology) label.
It revolutionizes the way buyers connect with real estate agents for real estate purposes, whether building, buying, property management, home services, selling or renting.
Technology has always strongly influenced the real estate industry, but the past few years have witnessed several notable advancements. As a real estate business, these new technologies will affect the industry and significantly influence your life in 2022 and beyond, regardless of your role.
Here are the top six reasons why digital transformation is necessary for your real estate business in 2022.
#1. Get better ratings
A real estate agent in the field can fairly accurately estimate the value of a property, but new technologies like AI make it much easier to set realistic prices. It can help with property valuation by determining property rates using a “predictive analytics” algorithm. In this way, real estate investors can measure the growth of property values and assess possible future risks, in addition to comparing real estate rates, among other things.
The accuracy of a property’s predicted sale price will improve as the ability to acquire data increases. Here you can think of integrating your CRM with data sources such as RP Data or PriceFinder that help you get reliable value estimates without leaving the current CRM environment.
#2. To take advantage of virtual reality
There is a common misconception that virtual reality is only useful for video games and entertainment. However, its use in the real estate sector is very undervalued.
Tenants and potential buyers can check out the property from anywhere using a VR-enabled virtual tour. Unlike images and videos, virtual reality offers an immersive experience that is both realistic and totally engaging.
You can integrate augmented reality and virtual reality into real estate in the following ways:
- Virtual tours for a more advanced visualization of properties.
- Use it for immersive real estate marketing to targeted buyers.
- Enable accessibility through mobile and web apps.
- Save your prospects time while giving them the opportunity to thoroughly check out their dream property.
Even before the pandemic, virtual reality was slowly being adopted by many real estate marketers. But, with the covid norms of social distancing and staying at home, virtual reality has become a need in the real estate industry.
Landlords and real estate agents are embracing virtual reality (VR) to show potential tenants and buyers the properties they offer while maintaining a safe distance.
#3. For effective marketing
As mentioned earlier, virtual reality and 3D tours have made it easy to get a sense of a property without ever setting foot on the premises. When you leverage these technologies for marketing your real estate business, you provide buyers with the convenience needed to buy a home. This will open up multiple additional ways to engage through technology-enabled marketing.
You can use it to provide buyers with personalized ads as machine learning and AI advances to target conversions. Leveraging many social networks and their targeting algorithms will allow you to better establish your brand. Additionally, you can use the CRM’s built-in marketing automation to help you generate more qualified leads at a lower cost.
Speaking of automation…
#4. To automate real estate operations
Long-term customer satisfaction is associated with the goods and services offered by any business. And the same is essential for its survival in the competitive real estate market. Automation can effectively track a customer’s lifecycle from prospect to resident or tenant with a sophisticated back-office operation.
A traditional method of managing real estate data is inefficient and time-consuming. But fortunately, there are technological solutions to help make these repetitive activities more efficient. There are several software choices available to help you manage marketing campaigns, appointments, your real estate portfolio, and other tasks.
#5. For smart home technology integration
Smart home technologies are transforming homes for good. Not only are smart gadgets like the Amazon Echo or Google Home being embraced by homeowners, but apartments and condos are now being built with smart home technology in mind.
Here are some smart home technologies your real estate business can leverage:
- Smart security system
- Smart TVs with CCTV access
- App-based home lock access
- Mobile app integration to allow/disapprove guest entry
- Sensor-based lighting
If you can include some or all of the facilities mentioned above in a new build, buyers are more likely to opt for such properties. While you may think these options may appeal to new millennial buyers, that’s not the case because they may add convenience and add value to older buyers. Many middle-aged buyers are looking for a home fully equipped with smart technology to save time and enjoy a more comfortable lifestyle.
#6. Using blockchain to sell real estate via tokens
Many modern real estate-based blockchain platforms like Atlant, Brickex, Bloqhouse, and others can help boost real estate sales and liquidity. Some platforms go further than simply matching supply and demand. For example, it allows investors to sell their holdings in the fund and spread the real estate investment.
You can use blockchain technology in real estate to sell property tokens (stakes). Additionally, a blockchain can protect the ownership of the stake if there are agreements established through smart contracts. Additionally, blockchain can significantly reduce transaction costs by allowing investors to split their shares into smaller parts.
Here is how you can sell real estate via blockchain tokens:
- Tokens represent the underlying value of real estate.
- Investors can buy and sell tokens representing their stake in the property.
- Blockchain technology can protect and reduce administration and sales expenses.
In the near future, many large real estate companies will become more technologically advanced, which will propel industry-wide growth. Anyone considering a startup or making improvements to an existing real estate app should take this opportunity.
First, you can start by automating your back-office operations to collect data about your customers. There are simple customer relationship management (CRM) and property management tools you can subscribe to and start using right away.
As you collect more data, implement business analytics to check trends in your consumer behavior and analyze their interests. This will help you target buyers with the right properties and tailor your marketing efforts accordingly.