How technology is changing the real estate industry

The Online World
Over 70% of people who want to buy a house use the internet to find the right properties. There are many reasons to use the internet. One being, of course, comfort. Or they might be looking for a house online to remove the brokerage fees in between. If they can find the property directly, they will not have to pay the broker fee. In this way, they will get the desired home they are looking for as well as they will save some money. Either way, they are in huge benefit here.

People are always looking for apps and websites to find the best house. Gone are the days when the broker was the ONLY one who could suggest the best location and the area. Now, with the help of a simple Google search, people can find the best place for their needs.
Another way people found to remove the broker fees is by moving to smart contracts.

Smart Contracts
Smart contracts are automated contracts that are agreed between the buyer and the seller. When the contract’s terms are met, the payment is automatically released. Decreasing the chances of fraud and allow people to start to trust each other and do the deals.

this will also remove the transaction fee as well as the broker fee from between. When you are paying using blockchain or cryptocurrency, you cutout transaction charges. Therefore, people will save a lot of money here. When they are getting any property, the charges are a lot more than what you expect. Even a small percentage transaction fee will be a lot of money. So, removing the transaction fee is not a bad idea for the people. That’s why the use of smart contracts will likely increase in the future.

The Sharing Culture
In this world, people have understood that buying a huge home where they are going to be living alone is not the perfect choice.

There is a growing culture all about getting the sharing apartment instead of buying the entire apartment or house by themselves. People are sharing the cabs as well as they are sharing the homes now.

Many startups aim in providing a place for corporate use as well as for residential use. This will increase the popularity of using a shared place.

REITs and Tokenization
Real estate is not just about buying or selling houses and offices. Many people see it as an investment opportunity. They get the real estate for investment purposes. Well, they used to get it for investment purposes.
REIT stands for a Real estate investment trust. These are the companies that manage the investment of other people and invest it on their behalf.

Other than this, tokenization has increased. Tokenization is mostly used with the blockchain and cryptocurrency. It’s a process where the sellers can create a token for a part of their assent and sell that token. The buyer can buy it using cryptocurrency. Thereafter, they own the part. They can even trade it using the secondary market. This is surely not used widely as of now. However, after seeing the speed of blockchain growth, we can surely predict this will grow in the next few years

Virtual Reality
Virtual Reality is all about feeling the exact experience from anywhere. Usually, a VR box or a VR gear device is used to see it. The virtual tour will be the next big thing that people are expecting in the real estate industry.,

If someone wants to buy a house that is 5 hours away from the current location, they can simply use virtual reality and see the exact house. It’s not like seeing the photos but it’s like taking a virtual tour of the house.

Virtual tours on the website are already a thing. However, it will surely go one step further and soon there will be a virtual reality tour of the house or the property to give you the best feel.

AI
Marketing & sales: Companies could potentially use AI for lead management to display personalized promotions or messages to prospective buyers or lenders. AI could also be used for analyzing existing market data to recommend properties for brokers to buy or sell.

Data management: As companies grow, they have to deal with massive datasets of lease abstractions, property appraisal reports, etc. As the amount of data grows, AI can classify and store documents and even give an early alert when a new appraisal is due or a property grows in popularity,
A Machine-learning enabled search can help people quickly analyze the massive amount of search data that exists by pre-processing and tagging useful meta-data for all property-related documents in a company's repository.

Internet of Things
IoT doesn't directly affect the real estate industry but is changing the type of houses people are looking for. People now want homes where most of the things are automated. Things like smart bulbs are already common. It won’t take long that people will start finding homes where the majority of things are operating with automation.

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