5 Trends in Real Estate Technology

The role that digital technology plays in our professional and personal lives is only increasing each year, and the real estate industry is no different.

5 Trends in Real Estate Technology

The role that digital technology plays in our professional and personal lives is only increasing each year, and the real estate industry is no different.

Written by:

Tyler Adams

Read time:

4 minutes

Category:

Real Estate

From a rise in virtual tours connecting parties from miles away and artificial intelligence (AI) to help buyers find the right properties faster to new tools that help real estate professionals better serve and guide their clients, real estate technology is rapidly evolving.

But with so much change, it can be hard to keep up. That’s why the team at CertifID wanted to pull together a listing of the top five real estate technology trends that we are watching that should also be on your radar.

1. The number of millennial buyers will continue to rise.

In 2020, millennials accounted for the biggest generational percentage of home buyers, accounting for 37 percent of all homes sold that year.

With this generational shift, real estate professionals and services have had to adjust their customer service approach too. For example, millennials are comfortable using digital platforms to find properties and using email and text messaging to coordinate and communicate on elements of the sale.

Some of the other notable digitally influenced changes in the real estate industry include:

  • 76 percent of potential buyers used their mobile device or tablet to search for properties in 2021.
  • 43 percent of new homeowners said the first step they took during the process was to look at properties for sale online.
  • 93 percent of real estate agents are comfortable with or prefer communicating with clients via text messaging.

2. AI and ML will enhance customer experience.

Without even realizing it, many customers have already been exposed to the role that artificial intelligence and machine learning (ML) can play in the real estate industry. Case in point: Zillow’s Zestimate tool or The Redfin Estimate, which pull together recent home valuation data to predict home prices within 2 percent accuracy.

Building on these use cases, real estate companies are expanding the use of AI and ML with other customer-facing tasks, such as:

  • Content and listing personalization
  • Property recommendations based on search history
  • Chatbots to drive interaction and answer basic questions
  • Tracking client emails, organizing leads, and aiding contract workflow

3. Virtual tours and nonlocal buying will grow.

Real estate companies are also working to integrate new ways for buyers to view and learn about potential properties no matter where they are.

This has spurred a growth in virtual tours and 3D virtual tours to allow customers to explore properties from afar. In fact, according to one study, homes with virtual tours sold about 6 percent faster and sold for 3 percent more compared to similar listings without virtual tours. 

The same 2020 study also revealed that agents who hosted more online virtual tours and open houses sold more properties than those who did not use those tools.

4. Wire fraud security platform use will increase.

While the increased use of digital technologies to handle key elements of real estate transactions has made coordination and communication easier, cybercriminals are taking advantage of vulnerabilities in these media. In particular, criminals are targeting the wire transfer process to attempt to profit potentially hundreds of thousands of dollars from manipulating the payoff process.

Fortunately, the industry has responded with the introduction of platforms that provide customers with the security and peace of mind they need during the data collection phase. Industry-leading platforms, for example, validate user identities and then use end-to-end encryption to securely collect and share key wire transfer account information.

5. The use of cryptocurrency in real estate transactions will rise.

The final trend we’re watching is the rise in the use of cryptocurrency to facilitate real estate transactions.

Once a niche payment mechanism, cryptocurrency has risen to be a big financial tool as more and more users adopt its use. As the use of cryptocurrency gains more traction and becomes more mainstream, it will be important to watch for how blockchain technology influences the closing, payment, and sale processes.

Bring technology and real estate together.

While the real estate industry will continue to be driven by the power of trust, customer connections, and individual relationships, the real estate technology that facilitates the buying process will only continue to evolve and dramatically alter how each element of the transaction will look in the future.

That’s why we believe that the real estate professionals that are able to keep pace with customer expectations for a more digital experience while also balancing the need for their customer’s security and privacy will maintain their competitive edge for years to come.

Tyler Adams

Co-founder & CEO

Tyler brings a decade of leadership experience developing and launching technology businesses. Before co-founding CertifID, Tyler led new product development at BCG Digital Ventures for Mercedes-Benz, First American Financial, Boston Scientific, and Aflac.

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