Around 50% of adults use virtual tours when researching and making decisions, and they spend up to 10 times longer on websites with virtual tours. Considering the fact that real estate is a major investment (and for many, their largest investment), it is only logical that the property sector should rely on this technology, which is just one of many that is making buying and selling a home speedier, more efficient, and more practical. Of course, technology is reaching far beyond virtual views, with AI, blockchain, and digital lending all doing their share to whiz the real estate industry into the future.
AI In Real Estate
Most real estates allow homebuyers to narrow their searches down via criteria such as the size of the home and the number of bedrooms, but AI takes it a step further by identifying a buyer’s preference and presenting them with properties that match what they’re looking for. AI can also help agents identify serious buyers (as opposed to those who are casually checking out ‘dream homes’), with some systems utilising Natural Language Processing to differentiate high-value from low-value touchpoints. Finally, AI can be used to predict market values and sales prices, as well as to identify future trends by comparing thousands of property attributes and creating a refined list of what clients are likely to be searching for in the near future.
The mortgage market in Australia was traditionally dominated by the Big 4 Banks, but recently, digital lenders began competing with banks, offering all their services through a digital, mobile-optimised, intuitive platform that includes apps instead of physical offices. The reason for the rise in popularity of digital loans is the ease, clarity and speed they offer. Approval times are shorter, the application process is quicker, and customers can avoid unintentional penalisation for being bundled into products with customers with less attractive credit scores. Finally, digital lenders charge fewer or no fees, and often offer competitive home loan rates.
Blockchain For Real Estate
Blockchain is being used in the real estate sector in various ways – including the creation of transparent records (to eliminate the possibility of criminal activity), tokenisation of the value of real estate assets (which allows them to be traded on the blockchain as any other token would), conversions into fungible tokens (to boost liquidity without increasing volatility), and smart contracts for payments (these contracts can be chained into systems that automate various payments – including taxes, agents’ fees, and the like).
Technology is shaking up the real estate sector in various ways, beginning with virtual tours. Around half of consumers enjoy taking virtual tours prior to making a purchase, especially when it comes to big investments such as real estate. Other technologies that are boosting efficiency include digital lending (which reduces the time and effort spent on paperwork and loan approvals) and blockchain – used for everything from record transparency right through to smart contracts for payments.