Varying aspects of economies across the world have been upgraded because of technology. These divisions of the economy that have been impacted by technology include agriculture, manufacturing, banking, and health. Another industry that has also been disrupted by tech is the real estate industry.
A lot of the operations and management in real estate have been improved by technology in terms of speed and efficiency which in turn leads to increased profits. In fact, technology is now being utilized by several players in the real estate chain which include agents, landlords, real estate buyers, and tenants.
A large amount of data gathered from the moment a building is constructed to the period of its sale in the market is the very first indication of the level of technology being employed in the industry. The information collected over time is key in helping agents find the perfect homes for prospective clients. Although this technology is powerful, it is highly vulnerable to hacking. Agents should ensure that the traffic is encrypted and that the device is secured by downloading a VPN or using Wi-Fi network encryption.
The introduction of technology in real estate has ushered in several benefits which include enhanced buyer experience, strict following of rules, and a perfectly laid outline for the parties involved in a lease or sale. However, the most important benefit of all is the experience buyers have as most individuals enjoy simplicity and ease in addition to transparency when trying to purchase a home. Some ways through which tech has revolutionized the real estate industry would be discussed below.
Browsing Through Various Homes on the Internet
Researches made concerning real estate have revealed that more than 50% of clients who want to buy homes go on the web to choose the space they want. This research includes clients who want to purchase office space. In this age and time, a real estate agent that prefers to take things ‘old school’ without utilizing the numerous opportunities the world wide web has to offer would find it difficult to make sales, even if he/she continuously gets a small stream of customers through referrals.
Several real estate companies have their own websites and set aside a large amount of money just to rank high in online searches on search engines such as Google and Bing. Some firms even go as far as including TV and online advertisements in their annual budgets just to beat their competitors.
Real Estate Management
Technological revolution has touched several aspects of real estate such as the design, construction, and management of buildings. Smart sensors are being utilized in commercial and residential spaces to help in managing buildings. The smart sensors operate by collecting different forms of data about the property and give access to the landlord or real estate agent to take note of the situation in the building, even when the operator is in another region.
A lot of landlords and real estate agents in areas like New York make use of these sensors to frequently get updates on the property. The smart sensors give various information on features like the state of security, temperature, and tools in the building. They also offer increases benefits such as putting out fires, observing the number of water resources being utilized by occupants in the building, and the setting of dates for maintenance and repairs in the property.
Usage of Augmented Reality
In a bid to improve the ease with which clients can purchase homes, many real estate companies use augmented reality to have the customers get a feel of the home they intend to buy from the very location visited to make inquiries. This style of virtual reality makes use of footage gotten from drones in conjunction with 3D technology to allow potential customers to perform custom changes to elements in the virtual home such as furniture. In essence, this relieves the real estate agent of duties such as having to painstakingly customize a home to suit a customer’s taste.
It also means these agents can now increase the profits of the company, which practically morphs into bonuses for then since they can potentially attend to several customers at a single time. At the particular period, a customer would be getting used to customizing the virtual home, the agent would at the same time, start educating another customer on the way to set up a virtual home of his/her choice.
Documents Involving Real Estate
The preparation of documents involved in the purchase or lease of a property used to take a lot of time running into several hours. The introduction of technology, however, has overly simplified the documentation process. Apart from the vast amount of time needed to set up documentation of real estate, numerous errors would be made. There was also the problem of making additions for regional regulations for real estate purchases made in other areas.
Technological disruption has given rise to ready-made tools to aid in the finalization of all forms of documentation. These tools help to make the compilation of documentation swifter and also aid in the verification of documents and legal requirements.
The Emergence of Smart Homes
Another way through which tech is changing the real estate sector is the development of smart homes. A smart home is basically one with several levels of automation. This form of automation is used for increased comfort and home management. In an observed market trend, homeowners of smart homes can increase the market price of their property by 3 to 5%. Smart homes make extensive use of the internet of things (IoT).
The advent of technology has evolved several sectors of the economy with the real estate industry inclusive, introducing several benefits that were only imaginable beforehand. Because of technology, potential clients can now search and even purchase commercial or residential space from a fixed location. Customers also have the added advantage of experiencing how their prospective homes would be with ease through the use of virtual reality, and landlords/ real estate agents can monitor the state of their properties with the usage of smart sensors from their homes.
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