How Technology is Transforming the Real Estate Sector

People often joke that one day, robots will replace us all and our jobs will become obsolete. But is this the truth? Yes, it is likely that robots and artificial intelligence software will replace many current roles, but it is unlikely humans will become completely useless in the working world.

How Technology is Transforming the Real Estate Sector
How Technology is Transforming the Real Estate Sector

How Technology is Transforming the Real Estate Sector

At the moment, we’re seeing technology enhance and streamline processes across numerous sectors. It’s clear that there’s a synergy between human staff and their technological resources. One example of where technology is redefining an industry is within the real estate sector.

Estate Agents

Everyone has a story to tell about estate agents, whether good or bad, as they’re an unavoidable part of the buying process. With boundless enthusiasm, they show you a selection of properties (many of which may not fit your criteria) and encourage you to view them all. They show you around, using lots of arm gestures and adjectives, eager to close the deal.

The average person will see around 15 properties before picking the right one for them. This can be time-consuming and lead to buyers even missing out on the perfect property.

This is why many are turning to online real estate search engines to help them find exactly what they are looking for. Statista states that 90% of those looking for property used such sites as a part of their search.

These sites contain millions of listings and can be filtered with minute detail per the buyer’s criteria. Everything can be specified from size, amount of work needed, location, facilities and type of building.

This can cut the search time significantly, allowing potential buyers only to see properties likely to be of interest to them. While it may not cut the need for estate agents completely, it can somewhat reduce the need for their services.

Mortgages and Finance

The money side of buying a house is incredibly stressful and can involve a lot of communication with mortgage brokers, banks, and other financial actors. Even the process of researching and applying for a loan takes its toll on buyers.

It’s perhaps no surprise, then, that online mortgage advisers such as Trussle have become increasingly popular. These sites allow buyers to input their budget and deposit as well as other key data, the platform then searches a range of providers and thousands of deals to find the best ones available.

Customers are contacted within a few days of submitting a query or applying for a mortgage in principle, which significantly reduces the time for the clients and provides a more streamlined and efficient process.

Many buyers also find this process much easier to navigate and tend to have more trust in the digital realm for having the best value deals. If trends like this continue, we could expect to see the decline of mortgage advisers as the first port of call in banks or conventional in-person and non-digital brokers.

How Technology is Transforming the Real Estate Sector
How Technology is Transforming the Real Estate Sector

Lawyers and Notaries

Depending on where you are buying property, you will need to have either a lawyer or a notary involved in the buying process. These service providers often come with steep fees, and it can be a potluck as to whether you end up with a good one or not.

Too often, there are stories of overburdened, non-responsible, or even just plain slow lawyers, holding up the buying process.

But this issue can now be somewhat mitigated, and it is expected to continue developing in the future. The use of blockchain, in particular, has been highlighted as a way of streamlining the buying process.

Smart contracts, self-executing contracts that progress after certain steps and criteria are filled, are just one of the tools being used in real estate, as noted by Forbes.

For example, a smart contract for a sale could be created involving the buyer, seller, bank, lender, notary, and surveyor. It details each step of the process, including signing contracts, depositing money, transferring deeds and more. In short, it can automate much of the process as long as everyone involved does their bit.

While it will never ultimately make up for human nature, it can cut the role and, therefore, the costs of intermediaries and make the process a lot more efficient.

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