On the face of it, the real estate market seems rather untouched by the advances in technology throughout the past two decades.
From realtors to mortgage brokers, traditional systems still reign supreme, and homebuyers still have to fork out anywhere between 3% to 5% of each transaction, for little-to-no value added.
That being said, technology has crept its way into this sector, albeit slowly, but it is steadily transforming the backend of this trillion-dollar industry. Over the coming years, substantial value is set to be unlocked for consumers all across the world, as a result.
Virtual Tours: See It To Believe It
Gone are the days of endless weekend open houses. Now, you can tour homes from your couch. Virtual tours give you a 360-degree view of properties, letting you explore every nook and cranny without stepping foot inside.
This tech not only saves time but also makes it easier to shortlist properties before visiting them in person. While it is yet to receive widespread acceptance, realtors should start adopting this more and more, once gadgets such as the Apple Vision Pro become mainstream.
AI-Driven Property Recommendations
Imagine having a personal assistant who knows your taste and needs and finds the perfect home for you. That’s AI in real estate. These algorithms analyze your preferences and past behaviors to suggest properties that match your criteria, making your search more targeted and efficient.
Real estate portals have made significant strides in this regard, but there is a missing link between these portals and realtors who actually do the legwork and show properties to customers.
As of now, the use of AI for property recommendations seems rather unimpressive. Going forward, we expect AI to be able to suggest, not just good neighborhoods with great schools and low crime, but also ones that are better suited for introverts, among other preferences.
There are further possibilities for AI-enabled mortgage applications and selections, encompassing the various intricacies that come with a loan application.
Today, different types of properties come with their unique share of nuances, requiring specific condo mortgage guides and such, which can be eliminated going forward, with AI picking up the slack.
Smart Contracts & Blockchain
Buying a home involves a ton of paperwork and a fair amount of trust. Blockchain tech, through smart contracts, is changing this.
Smart contracts automatically execute the terms of the agreement when conditions are met, ensuring secure and transparent transactions (read more). This means fewer middlemen, reduced fraud risk, and faster closings.
Another great advantage of blockchain and smart contracts is that they are decentralized, and thus, no one can make changes to them, making them an unbreakable covenant of sorts.
Satellite Mapping of Land Records
A key source of conflict, inefficiencies, and value erosion in the global real estate market is the fallibility of existing land record systems on multiple fronts.
Conflicts are almost inevitable with existing land identification and registration systems and tend to clog up our courts, with cases dragging on for years, often with no end in sight.
The biggest tech revolution in real estate is also one that rarely gets enough attention, and that is the satellite-based mapping of real estate, with exact coordinates updated in digitized land records. This prevents issues such as encroachment and reduces instances of conflict.
Final Thoughts
Tech is transforming every step of the real estate journey, making it more efficient, secure, and tailored to your needs.
As a buyer, embracing these advancements can simplify your home search and purchase process, ensuring you find the perfect home with less hassle. So, stay updated and make the most of these tech tools to navigate the real estate market like a pro.
