The property market is divided. There are those in favour of change as technology develops, and there are those that prefer the traditional paperwork, pen, and paper. Neither outlook is wrong, as the future remains uncertain. After all, everyone needs a home.
For this post, I wanted to try something different in order to spark discussion on my Twitter page. To achieve this, I gathered opinions on “The future of real estate” that have been expressed by experts. These are based on advances in technology. I will refute or agree with their statements giving my own opinion. I encourage you to do the same!
Steve Brant, Founder and CEO Offer1 & Brant Regency
“Real estate is slow to adopt technology. Faxing was the way most agents submitted offers just a few years ago. The only major technological advance that has truly changed real estate in the last 30 years are digital photos/online access, electronic signatures and email. VR will be a fun gadget and perhaps a good tool for investors but humans will still want to connect with their home in person.”
What I think: It’s true, the property market is often believed to be “untouched” by the technological advances taking over similar industries. I also consider digital photos and online access as he mentions it to be the most prominent technological advance. These are a prominent feature of websites like Right Move and Zoopla. However, I think this is due to the cost and job sacrifices incorporating other technologies would involve. However, I disagree with what he says about virtual reality. The aim of this technology is to establish a bond between the person and the space without having to visit it. This is done by picturing themselves and their furniture in the new property. Additionally, viewings are not the only purpose of virtual reality in the property market. To find out more, click here.
Sissy Lappin, Founder, Lappin Properties, ListingDoor.com
“The real estate market has made a remarkable shift from “inefficient” market to the current “efficient” market. Real estate agents are no longer the only one’s privy to the market information. Homebuyers& sellers in today’s world have access to a wealth of information and can determine an unbiased estimate of the true value of a home with a few clicks. Innovation doesn’t care about the real estate commission or its own consequences. With so many homeowners facing retirement, they want the commission dollars.”
What I think: I completely agree. Innovation does NOT care about the real estate commission. I believe this is partially why the property market isn’t fastly warming up to new technologies like The Blockchain. Logically, it does not benefit those who work in it if they refuse to adapt. However, online estate agents are thriving, as so are online tools regarding property. Some people argue the estimates provided by these tools are not accurate, and this might be true. Considering this, I believe that as the property market immerses itself in technology, all the necessary data will be stored online. This will allow more accurate numbers to be given digitally. To find out more, click here.
Dan Daugherty, CEO, RentBits
“Buy and Sell Side Companies like opendoor.com will enable real estate to be so transactional that buyers will be able to liquidate their assets in real-time just like they do with stocks today. Closing The closing process will be done virtually and online at a cost significantly less than today. There will absolutely be no need for traditional Title Companies.”
What I think: Buyers and sellers will hold immense power and responsibility when they are able to liquidate their assets. It will be as easy as the click of the button to sell a portion of a property. This is done through the use of cryptocurrencies and The Blockchain. Yes, once the system is implemented it will cost significantly less for the buyer, as there will be no intermediary. However, it will cost the industry a lot of money to make up for the jobs being lost. These jobs include lawyers, bankers, and surveyors. While I do not disagree that this is a good idea, I think a sudden switch to online transactions will cause uprisings from workers. However, I add that online transactions would also make the process less prone to fraud. To find out more, click here.
Nathan Miller, Founder, Rentec Direct
“Smart homes will be a requirement for renters and only the cheapest properties will not have full automation including robotic cleaning systems (think Roomba on steroids), electronic access, and fully connected appliances.”
What I think: In a world where en-suites, fitted wardrobes, utility rooms, and open-plan kitchens are now the norm, sellers need to find new ways of how to increase their home value. When something becomes popular, it stops being special. I agree. As soon as homeowners increase home automation features, renters will make it a requirement. The hotel industry plays a factor in this, as customers look in awe to the features they wish to add to their homes. To find out more, click here.
These opinions are my own, but I would like to know what you think! I think that some people fear technological advances in the thought that they might lose their job or not be able to understand it. However, keeping yourself updated with technology will also create new opportunities for yourself, and remember technology is only here to simplify things! I recognise a lot of the technology currently impacting the property market is very new and undeveloped, but I believe the potential they have will inevitably be unleashed.