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Technology

How Technology Affects the Real Estate Industry

Technology Affects the Real Estate Industry

If there’s one thing technology is incapable of, that is probably keeping the secret that it has already affected every aspect of society. Today, it is kind of unthinkable that everyone can go on without technology. That is a fact, particularly in the corporate world. The biggest industries, such as telecommunications, financial services, education, and healthcare, are quickly adapting. And real estate, though considered as one of the slowest to adjust, is already catching up.

The statistics below show how technology is shaping the real estate industry today.

  • 43% of buyers turn to the Internet for home buying tips and guides
  • 50% of buyers use a mobile website or realtor app in search of houses
  • 91% of realtor use on social media to promote properties
  • 92% of consumers rely on the Internet

What Are the Most Important Technologies for Real Estate?

1. Artificial Intelligence (AI)

This is known as the simulation of human intelligence designed to perform various tasks, including problem-solving, planning, and reasoning. According to Jim Dalrymple, Inman’s technology correspondent, artificial intelligence has already influenced many homeowners and real estate brokers.

For instance, a realtor can improve home search for potential clients, minimize bias from recruitment, and predict the future market value. With its ability to process large amounts of data, real estate agents and brokers can develop strategies to make selling more efficient and effective.

On the other hand, artificial intelligence can help home buyers acquire important information such as price, color, size, and location, making the buying process easier and more convenient.

2. Virtual and Augmented Reality

This technology is used to create a simulated environment. In real estate, this can make the buying experience fun and exciting, particularly for long-distance buyers. When the demands of life deprive them of time to physically visit the location, virtual reality comes in handy. It allows a tour of the environment in a seemingly real way, enhancing homebuyers’ experience.

Undoubtedly, this is a great way to generate leads and sales; it can also be expensive. If you want to create a realistic interior home design, you also need to add more digital furniture and accessories. That includes the use of 3-D modeling tools and techniques.

3. Internet of Things (IoT)

IoT refers to the smart devices reliant on the Internet, such as smartphones, desktops, and smart home devices. They have been part of daily lives as most people have been reliant on their Internet of Things to accomplish daily errands.

Apparently, it is becoming an essential component in the real estate industry, too. As we have mentioned early on, people usually use smartphones and laptops to search for potential purchases. It also serves as a means of communication with the real estate agent and brokers. Basically, they can get all the necessary information before making their big purchase.

4. Machine Learning Algorithms and Automating Home Evaluation

Known as image-recognition technology, it is mainly used to determine patterns on images. The realtor can make use of this to create unique home decor and features. For instance, if you are still unsure about which item will create that feel you are after, image-recognition can help you determine the most suitable colors and objects for the area.

For homeowners, using this before renovating your house allows you to see the areas that need improvement. Not only will this improve the appearance of your home; it will also increase its value.

5. Drones

This device is used to capture aerial views from different angles. Before, the aerial footage of a bigger property required a helicopter ride, which could be very expensive. But a drone made it possible to get aerial images even with your feet on the ground.

Real estate owners can leverage this to promote taller homes and properties. They can use it to take a tour of the neighborhood and the full interior view of the house from different perspectives with clear resolutions.

6. 5G

This is referred to as the 5th-generation mobile network with faster data speeds. It is meant to connect people, devices, and industries virtually. In real estate, it allows security monitoring regardless of the location, given that there is an Internet connection. 5G enables homeowners to report home invasion problems in real time. But this technology may require bigger facilities that can occupy a lot of space in commercial areas.

Indeed, technology has transformed and revolutionized various industries, and real estate is no exception. As it gets more sophisticated, we can expect to see more progress and advancements soon.

MindxMaster

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