As residential real estate prices continue to soar, it's becoming increasingly difficult for people looking to buy their first home. But there is hope: the rise of Proptech is providing a much-needed solution. Learn more about what Proptech could mean for your future below!
What is Proptech?
Proptech, which stands for property technology, refers to the intersection of real estate and advanced technology. Real estate and technological innovation go hand in hand — with the advancement of everything from IoT devices like Nest Thermostats to mobile apps like Zillow that allow you to view listings easily on your phone anywhere, anytime – properties are being reimagined so they incorporate cutting edge technology in order to stay competitive.
Proptech is already making a big difference in the world of real estate. It's a game-changer – Proptech is shaping the future of home buying and owning. Keep reading for more information on just how Proptech is changing the industry!
Proptech Examples in Real Life
In today's digital age, most people prefer to shop online or even download music, so it makes sense that all different types of industries are adopting new technologies to stay relevant and provide a premium experience to their customers. But few real estate companies are as innovative as Zillow. For the past few years, the app has been transforming how people and real estate agents view homes. Today, Zillow is the #1 online real estate resource; it's available on devices like the iPhone and Android and provides listings from various sources including MLSs (multiple listing services). Before Zillow, this information was hard to come by because many of these listings were only available once a week in print publications – which explains why they were limited in scope.
Another prime example of Proptech involving real estate is smart agreements in the mortgage industry. The software company Rocket Lawyer offers free legal templates for people looking to buy a home. The company understands the pressures that exist for today's homebuyers and wants to help them by providing these free contracts. Mortgage companies have already adopted smart contracts, which are digital agreements that automate some of the time-consuming aspects of buying a house – everything from automating loan pre-qualification processes to streamlining insurance and tax payments.
In addition, many real estate companies are implementing VR technology as a solution to help potential buyers view properties before purchasing them. Zillow is one of the top companies offering this service, and it also allows buyers to see virtual tours of homes using VR headsets.
How Proptech is Changing the Real Estate Industry
Proptech is already changing the way real estate firms operate in many ways. For instance, a lot of these technologies make accessing information easier and faster. But even more important, they are making it possible for current real estate firms to overcome their current shortcomings — which means that more people are able to buy their first house in the near future.
Proptech has also made it possible for people to sell their homes in a far more efficient way. As technology continues to develop, the ability to sell your home has never been better. Popular companies like Realtor.com offer smart tools that help you manage your listing. These tools include real estate market data as well as real estate agent profiles that allow you to communicate with interested parties on a more level playing field.
The same goes for mortgages – financing has never been easier. You can access information on the web, and today, you can even use a smartphone app like Zillow to take care of many of the little details associated with buying or refinancing a home loan.
Proptech also makes it easier for people to rent their homes and look for tenants. Tenant screening is much more streamlined these days — platforms like RadPad allow you to quickly and easily find a tenant. This is a huge benefit not only to homeowners but also to tenants who find it difficult (or expensive) to obtain credit reports from traditional services like Experian or TransUnion. Not only does this save time, but it allows you to verify information in an instant rather than waiting several days for the report to arrive via mail.
While Proptech is changing the overall real estate industry, it's important that you keep up with new trends if you want your business to thrive in the future.
Evolution of Proptech in real estate
Proptech is making a big impact in the real estate industry. But that doesn't necessarily mean that you will see virtual reality, self-driving cars, and moving holograms in real estate anytime soon — although it's not entirely impossible. So what does the future of Proptech look like? Let's take a look at some examples of trends that have already taken shape.
Big Data Analysis in Real Estate
When it comes to real estate, there are plenty of statistics to analyze – such as housing costs, property taxes, employment rates, and even crime rates. Big data analysis helps companies better understand their customers and how they interact with others (and this can be used to build better products). For instance, technology has helped Zillow create an extensive database of information related to housing. The company is able to provide actionable data such as comparative home prices, rent, and value that are matched up with user's search data.
The benefits of big data analytics for real estate go far beyond the obvious. The company recently partnered with the city of Seattle to help identify homes that are most likely to be sold in neighborhoods where they are likely to stay long-term. This saves time and money for everyone involved, and it helps protect our city's assets.
The platform also incorporates data that identifies areas that are experiencing a lot of homebuyer demand. This can help real estate agents better understand their client's needs, and it can also help potential buyers to get into the market sooner rather than later.
For more information, you can visit Calculate investment property return without a spreadsheet.
