Digital Transformation In Real Estate industry - It's Time To Evolve
September 27, 2023
Compared to other industries, the companies in the real estate sector haven’t really explored the opportunities digital transformation brings. However, change in consumer behavior and technology has forced real estate agencies and brokers to embrace several new technologies to keep up with the industry’s growing demands.
But the COVID-19 pandemic has accelerated the process of digital transformation in the real estate industry since they don’t have much of a choice to cope with the challenges that the new post-pandemic world offers. This article will discuss the importance of digital transformation in the real estate sector and the latest trends that will dominate the market soon.
Importance of Digital Transformation in the Real Estate Industry
Change In Consumer Behavior
Nowadays, buyers and sellers prefer to meet real estate agents online rather than in person. Moreover, they conduct initial research online to find the best realtors for their needs. The digital world provides them with all the information they need, including reviews, feedback, and other relevant data to choose the ideal real estate agency.
This change in consumer behavior and expectations means that companies in the real estate sector need to invest heavily in their digital presence; otherwise, they might lose their chance to connect with potential sellers and buyers.
Change in Technology
Consumers have embraced the new digital world and the ease of services that they offer. Even though the real estate industry was a latecomer to the world of technology, now it’s time to shift from their traditional working model into a digital one.
Online real-estate websites and applications are becoming popular due to the outstanding features that they provide. From providing relevant home search to virtual walk-through, these platforms have the power to enhance the customer experience to the next level and offer a competitive edge.
Digital Transformation Trends in Real Estate Industry
Augmented Reality (AR)/ Virtual Reality (VR)
Augmented reality has opened an endless array of opportunities for realtors in providing a unique buying experience for their customers. Using AR, potential buyers can do a virtual tour of the apartment or property in 3D before traveling to the actual location. Augmented reality empowers consumers to go on a virtual walk-through of their new backyard or basement from the comfort of their sofa.
Building Information Modelling (BIM)
The construction industry is already making substantial amounts of savings with Building Information Modeling (BIM). It is a process where the entire project team shares all the data regarding a project, including graphical 3D models and non-graphical data, which is then all linked together to form a 3D model with BIM.
This 3D model allows users to access information such as what material it’s made of, who created it, how much it will cost, how much time it will take to complete it, and more advanced information with just a click of their mouse. Combining BIM with augmented reality, real estate companies can provide an in-depth analysis of the property that has never been seen before.
If you are still using an Excel spreadsheet to organize your data, then it’s time to move on to the most significant asset that top realtors use to stay organized and close sales on properties. A CRM plays an integral part in a customer-agent relationship.
A CRM software helps real estate business interact with new leads, prospects, and even existing customers while keeping all the information about them from buying history, communications to email trails on a file. A CRM automates repetitive tasks and enhances processes such as data import, real estate property and its features, transaction management across sales funnels, and real-time reporting.
Artificial Intelligence (AI) and Machine Learning (ML)
Artificial intelligence and machine learning have revolutionized the real estate industry, from enhancing processes such as relevant home search to refining transaction processes. Artificial intelligence can help real estate agents in identifying quality leads that visit their website. ML algorithm saves time by identifying those leads with the most potential in becoming a genuine buyer.
By combining CRM and marketplace data, AI can help real estate agents and brokers predict the future value of a property in a specific market. This way, AI can give you a competitive edge in the real estate market without remitting extra costs on your company’s infrastructure or resources.
One of the most useful blockchain applications in the real estate market is the use of smart contacts. This solution can eliminate the time-consuming process of paperwork. Blockchain allows a deal to be done via smart contracts, which would enable transactions to be carried out among indistinguishable parties without the need for a middleman to settle down disputes.
Real estate agencies can use blockchain to streamline transactions by removing intermediaries and affiliate costs such as brokerage fees, lender charges, closing costs, and legal fees.
Since real estate agents are always on the move, accessing essential files and data from their mobile devices is vital. Cloud computing allows you to access your files from any device, no matter where you are. Cloud technology gives companies in the real estate market to store and access all business data and documentation in one place.
Around 80 percent of the top real estate performers already use various cloud services for marketing, sales, property management, and customer relationship management. Moreover, all the processes and data stored in the cloud can be accessed and modified much more quickly and efficiently, making business growth considerably effortless.
As we all know, the COVID-19 pandemic is not going anywhere shortly, and it will keep changing consumer behavior worldwide. Customers are getting addicted to the latest technology by the day. Real estate businesses that adopt digital transformation will see a significant boost in their business growth and have a competitive advantage. At the same time, realtors that don’t adapt to the new changes will go through an arduous journey to survive in this highly competitive industry.