The real estate industry is always technology-oriented. There have been some significant advancements in recent years. Transformations in various sectors impact how the industry works and change the face of the industry itself.
Initially, in 2020, the real estate industry was hit hard by COVID-19. Innovation has stalled, and it takes time to recover. CNBC said that home sales fell 18% from March to April 2020. The foundation of the real estate sector, the office sector, also suffered a steep drop in sales.
Despite the turmoil of the past two years, the real estate industry has weathered the storm well. Of course, technology has some role in it. Investors, agents, homeowners, property managers and lenders feel the impact of technology.
So the question should arise: what is the best technology for the real estate industry in 2023? How does this technology impact? Scroll down to find answers to these questions.
The definition of a real estate agent
Adopted from Investopedia, a Real Estate Agent is a professional who represents negotiations, arranges transactions and brings buyers and sellers together. They get income from commissions: percentage of property purchases.
There are important reasons why you should hire an agent. First, the agent will get the best price for your property. Plus, take benefit from their market knowledge. Agents help you make profitable negotiations.
Prospective agents must hold a professional license based on their country. Most agents also pursue certification to increase their credentials and marketability. In most states, real estate agents work through brokers, firms or under more professional associates.
Property Agent vs. Real Estate
Property agents are the people behind the negotiations on real estate, or we can call them Real Estate Agents if you sell using agents. Meanwhile, real estate is the property they sell.
Some people also confuse real estate agents with property managers. The fundamental difference between the two is in focus. Real estate agents always offer property managers a secondary service, whereas property managers only focus on managing properties and evolving investments.
How they work
There are different types of agents with various tasks. But all real estate agents have some typical duties.
Their responsibilities include:
- Establishing and setting up appointments with potential buyers.
- Research the best property selling prices.
- Use a variety of listing services to find home listings.
- Schedule inspections and property appraisals.
- Make plans and attend open houses.
- Provide information and complete documents for purchase agreements.
Besides that, several types of agents also have additional duties. For example, the seller's agent has the specific job of creating a virtual tour of a home. Meanwhile, the buyer's agent has the special task of helping clients choose a mortgage loan.
The impact of technology on real estate
As mentioned earlier, technology has changed the real estate industry. Here is the impact of technology on real estate:
1. House touring using VR
You can experience your dream home without doing a long survey before buying it. This convenience comes because of VR (Virtual Reality). Advertisers use this technology to promote property via the internet. VR can influence the buyer's decision before buying a property.
2. Help create a global virtue market
Online listings make it easier to see details and house specifications with just one click. It also offers mortgage lending options, calculators, and various features. You can buy a property with one click through digital and the internet.
3. Building information modelling (BIM)
BIM offers developers or prospective home buyers innovation to present properties in a broader view. 3D projects can provide physical dimensions, including lighting and structures.
4. Social media is a game-changer
Social media is creating a massive impact on the real estate industry. In fact, according to the National Association of Realtors, 97% of prospective home buyers use the internet to search for property. Social media allows property seekers to learn a lot about their property.
5. Smart home technology
The most exciting impact of technology on the property industry is smart home technology. Technology makes all the features like an automation system. Access control, surveillance cameras to curtain openers are natural forms of smart home technology.
Essential technology in 2023 for real estate agents
Peter Abualzolof, a Member of the Forbes Technology Council, listed five lists of real estate technology trends in 2023. Here are the details:
1. AI-enhanced analytics
One of the trends likely to be seen in 2023 is AI quantum computing in the real estate industry. AI progress has made changes. One of them is that property investors can find and analyse deals quickly. Of course, with the help of quantum computing AI and big data.
By 2026, it is estimated that the market size of quantum computing AI will increase to $1,765. Unfortunately, this technology has limited applications in real estate applications.
2. Streamline all process
The goal of technology is efficiency in every activity. Real estate agents, investors, sellers and potential buyers have done much tedious administrative work. That's why we need a CRM covering most of these activities. What's more, there is great potential if you streamline the process.
3. Fractional ownership
Fractional ownership is something familiar in the real estate industry. Several investors have taken advantage of similar technology. In the past, investors needed to have a solid amount before investments. For example, most REITs (Real Estate Industry Trusts) must have $25,000 in equity and work with accredited investors. But now, some platforms offer innovation. Investors can invest in the real estate industry with a small investment value.
4. The Metaverse
In early 2022, the metaverse became famous. It is also driving change in the real estate industry, virtual real estate. As of 2021, the metaverse real estate market is worth $821.9 million.
VR that combines with real estate makes virtual real estate, and it's a new concept. That's why investors need to be careful. Of course, marketing is different from the ordinary property.
5. Virtual Reality
VR and AR have existed since before the pandemic, but their growth was faster during the pandemic. When COVID-19 came, many agents switched to using VR to tour properties.
In 2023, maybe VR will be present in the property rental business. Later, people can experience a short virtual tour before renting or buying a house.
Conclusion
Next year could be a good year for agents and property. Technology will ease the transaction process and help agents manage the property. In addition, sellers and prospective property buyers will also benefit from technology in the real estate industry. Agents must always be open to technological changes; otherwise, they will be knocked out of the market.
