By Alex Radosevic
I am constantly asked about how technology affects the real estate industry, a topic that I often speak about at various conferences and events throughout the country. The general answer is that technology impacts the real estate industry greatly, and in a myriad of ways.
Real estate and all aspects of it are not exempt from the inevitable forward march of technological advancement. Because real estate has traditionally been a people-centric business, many have wondered how the industry would adapt to change. Some have feared it while others have embraced it, with most people falling somewhere in the middle. It is also a truism that many people involved in real estate transactions do not fully understand how technology can be helpful to them with regard to buying, selling or investing in property, be it residential or commercial.
My opinion is that those who embrace technological change relative to real estate transactions will most certainly have a leg up throughout the transaction process. Since change is coming anyway, the prudent thing for all to do would be to gain an understanding of these changes and to capitalize on them whenever possible. This would allow many of the changes permeating the real estate industry to serve as effective tools in the arsenal, rather than be seen as something to fear or worse still, be adversarial to parties within a transaction.
How is technology changing the face of real estate? Let me count the ways! Most are exciting in one way or another, if not universally welcomed.
One overriding aspect of technology — which essentially serves as the backdrop and cornerstone to all others — has been the advent of the internet, allowing access to information for anyone who knows how to use a computer, cellphone or other connected device. This includes a plethora of DIY platforms featuring access to basic real estate information, with content based upon the premise of each individual website. Perhaps the best example is Zillow, which is now one of the most visited websites on the internet. In addition, there are sites catering to crowdfunding for individuals who want to invest in real estate, a purview that was once considered available only to the wealthy. Individual and even small investors can now buy into projects and properties, pooling their money with a much larger group. This is analogous in some ways to the more familiar concept of investing in partial shares of stock, bonds or mutual funds.
Perhaps most exciting are changes within the artificial intelligence (AI) realm. While many tools and techniques related to AI are complex, there are those that provide even the most casual observer or participant with a glimpse of how technology is changing the face of the real estate industry. This includes everything from pop-up chat boxes on brokerage websites to technology that allows for virtual tours of properties far and wide. This kind of advancement presents an obvious advantage to all involved in a transaction, including brokers, sellers and of course prospective buyers.
For those investors in higher income brackets such as family offices and other high-net-worth individuals, the beauty of technology is the ability to gain access to information and pertinent, relevant data instantaneously, regardless of time zone. Along with this information comes finely tuned analytics tools that can, among other things, project the long-term growth and valuation of property, with precision and well into the future. This is one reason why my wealthy clients welcome and embrace the technology that we use. Information that aids in the decision-making process has become an invaluable tool.
Real estate has always been a people-driven business, and the good news is that it still is. While technology most certainly presents opportunity and puts a bag full of new and valued tools into the hands of those who know how to use them, it is important to remember that it takes humans to properly interpret data, provide expert advice, build trusting relationships and complete transactions. No machine or technological advancement will replace solid, honest and trusted human advice. This means that we can all be confident that technology and human interaction within the real estate industry can be coupled together effectively, representing a perfect marriage.
Media Contact: Karen Norris – Karen@CanonProperties.com