Technology has disrupted every industry over the past 10 years, and real estate is no exception. Add to that phenomenon the steady drop in mortgage rates, the impact of COVID-19 and the rising popularity of flipping, and you'll see that the real estate world is undergoing a seismic shift, felt by brokers, agents and real estate investors.
In this new blog series, we'll cover some of the most significant transformations in our industry and keep you abreast of how you'll need to adjust how you do business to compete and succeed.
Technology Disruption Makes Your Job Easier (And Sometimes Harder)
Accessibility of up-to-date data has given brokers and agents new ways to find and evaluate properties. Sourcing and analyzing that data to find "killer deals" has never been simpler. But iBuying is also on the upswing, which presents a new competition source for the traditional real estate professional and home buyer.
In short, technology is constantly presenting new challenges and new opportunities.
The Top Technologies That Will Have an Impact on Real Estate
PWC publishes an annual trend report and associated survey, detailing how various inventions and behaviors will disrupt the real estate industry. Among the top technologies are:
- Construction technology will drive costs down and speed up projects.
- Big data analytics will make assessing deals easier and quicker.
- 5G implementation will make certain neighborhoods more appealing to buyers and developers. Additionally, cell tower REITs have emerged as viable investments.
- The Internet of Things (IoT), smart cities, autonomous vehicles and co-working options are also having an impact on the appeal of neighborhoods and individual properties. Today's and tomorrow's buyers grew up with technology and will be seeking to move to areas that make their lives simpler, more connected and healthier for their families and the environment.
Real Estate Professionals Share Their Own Disruptor Predictions
We polled a wide range of real estate professionals — brokers, agents and investors — and asked how their own day-to-day lives and deal flow will change due to technology.
Nick Ron of House Buyers of America believes that 2021 will be the year of automated productivity tools. "If you are an investor, your productivity tool should assist in managing your leads, conducting property assessments, making the offers, negotiations and settlement, renovations, accounting, purchasing, scheduling and field management," he asserts. "Your productivity tool should manage lead generation, negotiations, settlement and closing procedures if you are an agent. The goal in 2021 will be to streamline and automate the entire process with technology to make it as painless and easy as possible for buyers and sellers."
Rick Albert, a broker-associate at LAMERICA Real Estate, stresses the importance of forward-thinking brokerage companies investing in the technologies and tools that make their teams more successful and help them compete. CRM systems and other tools help agents and brokers use their operational time more efficiently to focus on sales. Albert also emphasizes that companies need to invest in technology training, ensuring that those who did not grow up in the digital era can compete and excel.
In short, massive changes in how cities and communities are built will affect the real estate industry. But so will next-generation automation that gives brokers, agents and investors more access to data and the ability to streamline their daily workflow.
Coming soon: How will demographic shifts affect the real estate industry?