Tech advancements that will change real estate
There are various technological developments that are changing the real estate paradigm and the way tenants, landlords and potential homeowners do business. From virtual reality (VR) property viewings, to purchasing or leasing a home through a new transactional currency like blockchain. Property tech continues to benefit the relevant stakeholders by providing an easier and smoother experience, along with an innovative and trustworthy ledgering system. Property owner association companies are also beginning to leverage technological advancements to give residents a smoother living experience.
If you’re not familiar with it, blockchain is also known as a Distributed Ledger Technology (DLT) where transactions are recorded securely, preventing any digital attacks such as hacking, duplicating or changing the ledgering system. The centralized network automatically updates every registered user when a transaction occurs.
You may be wondering, how is blockchain affecting real estate?
The DLT provides trust and transparency to all stakeholders involved in the leasing or purchasing of a property. It also expedites contracts processes, saves time and increases efficiency by reducing costs. Real estate is an industry where properties accumulate a plethora of transactions that happen rapidly. Blockchain’s ledgering system provides a centralized database where agents and brokers can view the transaction history of a property.
Blockchain can also help real estate agencies acquire more investors by tokenizing a property. But what does this mean, exactly? A digital asset represents real world assets, the advantage lies in the tokenization concept. Meaning that once acquired; it can be divided into granular pieces and distributed amongst various stakeholders, increasing investment and acquiring more capital.
Like blockchain, VR is changing the real estate paradigm. During the lockdown, propitiated by the Covid19 pandemic, marketing a property without viewings became difficult. VR technology allowed potential homeowners to experience a viewing from the comfort of their home. All that was required was a VR headset to enjoy an immersive three dimensional property viewing experience.
VR does not only benefit the customer, selling off plan properties can also be tricky. It allows interested buyers to experience an architectural design and fully grasp the property design before it is even constructed.
The use of AI transforms unactionable data into insights that can be applied, making it simpler for all stakeholders to locate, examine, sell, or buy properties. Artificial intelligence has significantly enhanced user experience by making the decision-making process associated with the property search simpler. Users are more likely to engage with properties when they are recommended to them by AI-powered software based on their interests, such as location, current trends, value, etc. Additionally, the use of AI-powered chatbots helps real estate salespeople respond quickly to the questions of their potential clients.
Even though the majority of real estate data is public, it can be difficult to search through public property records to uncover title documents, purchase prices, or even mortgage liens. Records seekers frequently need to make trips to nearby locations to physically search through filing cabinets. Artificial intelligence, in the opinion of many real estate firms, simplifies the property purchase process.
Computer algorithms that can process millions of records in a matter of seconds have streamlined this laborious procedure.
Digital optimization in property owner association companies
Tech advancements are also impacting the way a property is administered. With companies such as StrataGlobal centralizing their customers database in an email software, invoicing service charges and sending outstanding balance notices. Property owner association companies must leverage technology to give owners and residents alike a pleasurable living experience and easing their community management services.
Where are emerging technologies leading the real estate industry and property owner associations?
With new technological advancements being implemented within the industry, there’s no doubt that the paradigm will continue to evolve, automating processes and making real estate transactions more efficient, stable and secure. Like real estate, property owner association companies must also begin to seek how they can involve these technological advancements within their companies to attract new stakeholders. Perhaps, administrating digital properties is the future.