The days are slowly coming to an end when real estate transactions happened in a simple, straightforward manner, where the seller listed his property and buyer negotiated and closed the deal if the price was right. All this, of course, with the help of real estate agents. But in fact being a real estate agent is a big responsibility to guide your client on everything from buying, renting, or selling property to trusting moving companies.
“The times they are a-changing’”, so aptly put by Bob Dylan, is becoming a reality in the real estate business. Information technology and automated systems are disrupting the real estate industry, like never before. And it is no minor shift in the way real estate business is conducted, but a major one.
Mehul Boricha in his article on techrrival.com/technology-and-real-estate, states, “To disrupt a market, an idea has to transpire entirely separate from what is already available to consumers, solve a lot of consumers’ current problems and anticipate what problems will arise in the future, then preemptively address them.” This ‘entirely separate’ idea is the introduction of technology in the real estate market that is pushing aside the ‘established’ way to provide more benefits to the consumers.
And why not? On the real estate front, information technology is making a sea change in the way property is being acquired and sold. Let’s see in what all ways is technology changing the real estate scenario.
#1 Data acquisition
Gone are the days when only institutional investors were privy to the data of sellers selling their property. Today, many real estate companies offer property data of millions of US residential and commercial properties. With technology, the data management process has not only become quicker but also more thorough. It validates, standardizes and enhances the data and offers it to seekers in a most accurate form.
#2 Automated Valuation Model (AVM)
AVM has become an indispensable tool in real estate business, since it not only collects and integrates the available data about listed properties most efficiently but also provides estimates of their prices. This helps the buyers, sellers and investors in shortlisting their options. Many companies have integrated this tool in their websites to give the customers verifiable data concerning properties. For sellers, it offers actionable information that obviates the need for real estate agents, thereby saving on real estate agent fees.
#3 Actionable data presentation
Although technology aids in generating mounds of data, it does not dump it on the users in an unorganized way, since it would make it impossible to find and view it quickly. Application Programming Interface (API) aggregates the data and offers only the useful data points to the users. Usually, it aggregates this data into just one file per property, making it easy for potential buyers to view it.
#4 Makes users self-reliant
Infusion of technology in real estate business has not only changed the perception of buyers and sellers but has also made them self-reliant and proactive. No more are they passive recipients of services of real estate agents and contend with realtor fees. Technology has undoubtedly empowered buyers, sellers and all those associated with real estate business.
#5 Tech companies replacing realtors
Tech companies are entering the real estate market in a big way since people have begun to rely more on them, then realtors, for advertising and selling their properties. By listing sellers’ properties, such companies pocket commissions usually charged by the realtors. For example, beycome.com is a real estate website that enables anyone to list and sell the property or buy it, and it only charges the agent’s commission.
#6 Job creation
With technology entering the real estate business, the need for qualified realtors is slowly dwindling in favor of tech-savvy professionals, such as programmers, developers and digital marketers. In other words, the realtors’ job is gradually being transferred to the technology interfacer. Such tech jobs are only going to increase in the real estate market. These people are the real disrupters of the real estate market.
There is little doubt that technology is on the verge of disrupting the real estate market. This is because of its added value of reaching out to a lot more people and offering much more to real estate consumers than the present-day real estate market does. Technology is changing the old ways and ushering in the new.