The real estate industry is undergoing rapid changes. As a matter of fact, a technological revolution is underway.
Property technology, or “Proptech” as it’s often called, is transforming how we buy, sell, and manage the property. “In the next five years, we’re going to see more change in the real estate industry than we’ve seen in the last 50,” says entrepreneur Alexander Studhalter.
What is Property Technology?
Property technology, or proptech, is a broad term. It encompasses any type of innovation that seeks to improve the efficiency of the real estate industry.
This can include anything from new software platforms that help streamline the home buying process to energy-efficient construction materials. Not any materials but those that reduce the environmental impact of buildings.
While the term proptech is relatively new, the concept itself is not. For centuries, builders and developers have been using new technologies to create and own real estate more efficiently.
The advent of proptech simply represents the latest wave of innovation in this long tradition. Proptech offers a wide range of benefits.
“Perhaps most importantly, Proptech can help make the buying and selling of real estate more efficient. This can be a huge advantage in a market as complex as the real estate industry. By streamlining the process and making it more efficient, Proptech can help to save buyers and sellers time and money,” says Studhalter. Here are the top proptech trends to keep an eye on;
Increased Demand for Virtual Home Tours
One of the most exciting Proptech trends for the next few years is the increased demand for virtual home tours. With more and more buyers going online to search for homes, it’s no surprise virtual tours are becoming more popular.
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House hunting goes digital
Alexander Studhalter explains, “The trend toward virtual home tours is driven by the increasing popularity of online house hunting. In today’s market, more and more buyers are starting their search for a new home online. This trend is being driven by the convenience and accessibility of online listings.”
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Why are Agents benefiting from this trend?
Not only are virtual home tours more convenient for buyers, but they’re also a great marketing tool for agents. “By offering virtual tours through their listings, agents can reach a wider audience of potential buyers. Additionally, virtual tours are a great way to differentiate your listing from the competition. In today’s market, anything you can do to make your listing stand out is a major advantage,” says Studhalter.
eSigning becomes the Norm
Another Proptech trend poised to take off in the next few years is eSigning. “eSigning is simply the process of signing documents electronically. This can be done using a computer, tablet, or even a smartphone,” explains Alexander Studhalter.
While eSigning has been around for several years, it has only recently begun to gain traction in the real estate industry. “The pandemic has been a major driving force behind the adoption of eSigning. With so many buyers and sellers working remotely, eSigning has become a necessity,” says Studhalter. And with eSigning come virtual notaries and smart contracts.
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Virtual Notaries
In addition to making the home buying process more convenient, eSigning can also help to speed up the closing process. “One of the benefits of eSigning is that it enables buyers and sellers to sign documents remotely. This means that buyers and sellers don’t have to be in the same place at the same time to sign documents. Additionally, eSigning eliminates the need for paper documents, which can save time and money.
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Smart Contracts
Another benefit of eSigning is that it enables the use of smart contracts. “A smart contract is a digital contract that is stored on the blockchain. For this type of contract to be executed, there are set conditions that must be met. For example, a smart contract could be used to automatically release the down payment to the seller when the buyer signs the purchase agreement.
Rental Property Management and Automation Takes Off
There are several new platforms that provide the tools and support needed to manage rental properties. These platforms can be used to fill the technology gaps and reinforce efficiency and profits.
One of the benefits of using these platforms is that they can help to automate the rental process. “By automating the rental process, landlords can save time and money. Additionally, automation can help reduce human error and improve data accuracy.
Smart Homes become Popular
Smart homes are becoming increasingly popular with buyers, especially “Gen-Z” a new generation of home buyers. Smart-home tech vs. traditional amenities is a major deciding factor for this group.
One of the benefits of smart homes is that they can provide buyers with many conveniences. For example, smart thermostats can automatically adjust the temperature to save energy.
Additionally, smart locks can provide extra security and peace of mind. Smart homes are also becoming more affordable as technology becomes more accessible.
Additionally, smart homes can also help to improve the resale value of a property. “Homes with smart technology are in high demand and tend to sell for more than traditional homes. Therefore, investing in smart-home technology can be a wise decision for sellers,” explains Studhalter.
Growing Numbers Of “iBuyers”
Observers of the real estate market have probably noticed the rise in “iBuyers.” So, what exactly is iBuying?
iBuying is a new trend in which companies use technology to buy and sell homes. These companies use algorithms to assess the value of a home and make an offer to the seller.
The seller can then accept or reject the offer. If the offer is accepted, the company will buy the home and resell it for a profit.
Is iBuying here to stay? It’s hard to say. “iBuying is still in its early stages of development. However, it has the potential to revolutionize the real estate industry. For now, we will have to wait and see how this trend develops,” Alexander Studhalter continues.
Alexander Studhalter’s closing thoughts
As someone who has been in the business for over 30 years, Alexander Studhalter has a lot of insight when it comes to Proptech trends. For any investor out there, it is important to keep up to date with these trends so that you can make informed decisions when it comes to your investments. As a result, your returns will be maximized.
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