Emerging technologies and shifting home buyer demographics have begun to shake up the real estate industry in recent years. These factors have influenced all aspects of traditional real estate transactions ranging from the way properties are listed to average closing times. This has left many investors wondering where the future of real estate is headed, and how to best adapt to these changes. Keep reading to learn how to prepare yourself, and your business, for the future of real estate.
The Future Of Real Estate Technology
The real estate industry is experiencing rapid changes as a result of new technology. According to Forbes, nearly $13 billion was invested in real estate technology in 2017.
This increase in capital should serve as a signal that the real estate industry is preparing to undergo rapid changes with the creation of new digital resources. Most notably, investors should be prepared for the ways online property listing platforms, smartphone apps and virtual reality will impact all aspects of real estate transactions.
Investors will soon begin to see an increase in property listing websites, all aimed at enabling aspiring or existing property owners to buy and sell with ease. While platforms like Zillow and Trulia have been out for several years, similar platforms will continue to be released.
The popularity of online listing platforms also means buyers and tenants will have strong ideas of what they are looking for when searching for properties. Investors hoping to stay ahead of the curve will need to adapt to buyers (and sellers), who are able to access hundreds of property listings at the touch of a button.
The development of real estate smartphone apps will also continue to change the industry. However, unlike property listing websites new real estate apps will be aimed at all aspects of the real estate transaction process.
For example, existing apps like Docu-sign and Dot-loop already allow real estate professionals to sign and send contracts and other documents on their phones. These apps are expected to continuously grow in popularity as investors search for ways to conduct deals on the go.
Investors are also likely to see the release of apps aimed at speeding up the closing process. These will focus on a number of areas like helping buyers estimate mortgage rates, share documents, and even transfer deeds or titles.
Virtual reality is yet another technology that will influence the real estate world in coming years. Though investors may be familiar with the idea of 3-D walk through and 360 degree pictures, these resources are expected to increase in popularity.
By giving potential buyers a new way to experience homes, investors can increase the number of property viewings without the time and hassle. Recorded 3-D property tours will allow buyers to tour homes without ever going.
Investors will be excited to know virtual reality software will not be exclusive to property viewings and may even help re-habbers plan renovations. For example, many apps could soon be aimed at allowing investors to preview staged rooms and remodels from their own phones.
The future of virtual reality in real estate even has the potential to help property developers and investors interested in raw land investing. According to Forbes, property developers should expect virtual reality programs that allow users to see finished properties before construction even starts.
As a whole, investors will see the launch of new technologies aimed at improving real estate transactions for all parties. Rather than being worried about new resources, investors should think of these upcoming changes as ways to make business more reliable and efficient.