The arrival of the first computer in a real estate office years ago kicked off a revolution that gains momentum and takes a new face with each passing year. The impact of technology in the real estate is now so great that the efficiency of every sector cannot be complete without its involvement. Today, the control of the industry has literally been taken from brokers’ hands by a generation of tech-savvy consumers who use smartphones and tablets in almost every dealing.
Changing the Real Estate Finance Landscape
Public and private sources of data have inspired number crunching by potential investors in commercial real estate. Some of the most popular tools include credit risks algorithms which are a big benefit in the analysis of large amounts of data from both public and licensed private sources. Investors can then determine the risks scores of the regional real estate scene.
One example is the analysis of how well buildings have been constructed. In addition, potential investors can determine the renovation program of the building including when it was last put into effect. You can also establish the owner’s financial reliability including loans. All this is aimed at guiding investors in making an informed decision before making a commitment.
The Influence of the Internet
One of the greatest products of technological innovation is the internet. It encourages and facilitates the use of mobile devices including smartphones and tablets to access important information regardless of time and physical location of the user. The tools are especially important to real estate agents who are often moving from one place to another and, therefore, use them to drive sales. On the other hand, investors use them to make searches and get access to news on emerging investment opportunities.
The other important impact of the internet is the use of cloud-based tools for fast collaboration and sharing of information. They include enterprise software which is highly influential in the making of quick and efficient transactions between real estate agents and buyers. Combined with the use of mobile technology, these tools become some of the most important elements of a fast, efficient and clean real estate business.
Birth of Inbound Marketing
Thanks to technological advancements, real estate agents can promote their interests through inbound marketing. This simply means the use of social media platforms, blogs, e-newsletters, e-books, whitepapers and SEO and various other means of marketing. In the end, the agent achieves better customer attraction and improved sales volume.
Better Management of Buildings
The introduction of the Internet of Things (IoT) has had a great influence on how the management of buildings is conducted. For instance, sensors fitted on such equipment as air conditioners can tell when they are not in the best of conditions and prompt quick repair or replacement for the convenience of everyone. The end result is not only easier management with less wastage of time but also reduced costs.
The emergence of wearable devices technology is another big step towards transforming the real estate industry. While available with smartphones, the apps in wearable devices enable complete hands-free handling. For example, agents and investors can capture images of the property during physical surveys involving walking in and around it. In addition, they can get its title history as well any information on tax and other important material.
Improved Operation of the Real Estate Investment Trust (REIT) Industry
There has been a tremendous growth in the REIT industry with market capitalizations rising from $7 Billion to $700 Billion in 10 years from 1993. While there had been reluctance in embracing of technology in the industry, the emergence on online trading platforms such as CMC markets has opened up new horizons for the industry. The realization that it holds the potential for efficiency of operations and cost reduction has finally led to its adoption. In addition, it enables better risk management while bringing with it automated and centralized processes which include analysis, predictions and modeling of the financial structure.
Like it has done in most other industries, technology is fast gaining control of every sector in the real estate industry. The introduction of online market platforms has enabled easy, fast and cost-free interaction of borrowers and investors. They no longer have to go through slow and expensive processes involving banks and brokers. Investors and real estate professionals can, therefore, work together for quick starting of projects at greatly reduced costs.