The future of real estate (RE) is without a doubt online. As an agent in various cities across Texas (Houston + Bryan + College-Station), I have had real-world experience with how these factors affect the whole supply chain of RE. I believe that almost every aspect of RE is in the crosshairs of drastic change. I will break it down into several categories and a corresponding public company with ventures in the sub-sector.
- Real Estate Tours
- It is obvious why this practice was revolutionized during the COVID-19 pandemic. However, I believe that this trend will be one that sticks with us for the rest of time. The savings created in terms of time, travel, and other resources provides an immediate economic surplus. This is particularly true if you are moving from another state or country. Additionally, the universality of smartphones allows you to tour pretty much any property from the luxury of essentials anywhere.
- $RDFN – Redfin Corporation
- It is obvious why this practice was revolutionized during the COVID-19 pandemic. However, I believe that this trend will be one that sticks with us for the rest of time. The savings created in terms of time, travel, and other resources provides an immediate economic surplus. This is particularly true if you are moving from another state or country. Additionally, the universality of smartphones allows you to tour pretty much any property from the luxury of essentials anywhere.
- Digital Document Signing
- This should be the 8th wonder of the world. The ability to sign from anywhere is a luxury that the human race desperately needed. It enhances accessibility, speed of transaction, and paper reduction. Which all happen to be good for the environment. It’s a yes from me, dawg!
- $DOCU
- This should be the 8th wonder of the world. The ability to sign from anywhere is a luxury that the human race desperately needed. It enhances accessibility, speed of transaction, and paper reduction. Which all happen to be good for the environment. It’s a yes from me, dawg!
- Photography/Staging
- One of the newest development in RE is immersive virtual tours and virtual staging. Both are huge developments with serious cost savings and arguably better results. Virtual tours are perfect examples of ‘a picture is worth 1000 words’. Staging is a huge development because it takes the hassle and money out of physically moving furniture, decor, etc into AND out of an unoccupied home. A huge benefit for all parties.
- $MTTR – Matterport
- One of the newest development in RE is immersive virtual tours and virtual staging. Both are huge developments with serious cost savings and arguably better results. Virtual tours are perfect examples of ‘a picture is worth 1000 words’. Staging is a huge development because it takes the hassle and money out of physically moving furniture, decor, etc into AND out of an unoccupied home. A huge benefit for all parties.
- House Pricing
- Pricing a home is one of the hardest things for a realtor. There are a lot of variables that you must take into account and the margin of error can be quite significant. So, why not use technology which is infinitely better at math than the greatest mathematician? Pricing mechanisms like Zillow’s Zestimate use AI and variables about a home to instantly price any property.
- $Z – Zillow Group Inc.
- Pricing a home is one of the hardest things for a realtor. There are a lot of variables that you must take into account and the margin of error can be quite significant. So, why not use technology which is infinitely better at math than the greatest mathematician? Pricing mechanisms like Zillow’s Zestimate use AI and variables about a home to instantly price any property.
- Wholesaling
- One of the most profitable industries in RE is wholesaling. What is wholesaling? Just like any wholesaler, they buy products at a discount and then sell them at a larger markup. Think Walmart or Amazon but for all kinds of RE. These entities find distressed or unwanted properties and find a corresponding buyer for a premium. Economically speaking, anytime you take out the middleman more profit is shared between the counterparties, the same applies in this scenario.
- $OPEN – Open Door Technologies
- One of the most profitable industries in RE is wholesaling. What is wholesaling? Just like any wholesaler, they buy products at a discount and then sell them at a larger markup. Think Walmart or Amazon but for all kinds of RE. These entities find distressed or unwanted properties and find a corresponding buyer for a premium. Economically speaking, anytime you take out the middleman more profit is shared between the counterparties, the same applies in this scenario.
- Property Management
- Property management is exactly what it sounds like, boring right? The management of property whether that property is a 1-bed house or a 1000-unit apartment property management companies manage these properties. They are in charge of getting the property leased, performing maintenance, settling customer services disputes, and everything in between. Yet, for the most part, property managers are antiquated and use little technology. With AI and automation, we are on the verge of a management revolution.
- I am unaware of a good company in the space. Any suggestions?
- Property management is exactly what it sounds like, boring right? The management of property whether that property is a 1-bed house or a 1000-unit apartment property management companies manage these properties. They are in charge of getting the property leased, performing maintenance, settling customer services disputes, and everything in between. Yet, for the most part, property managers are antiquated and use little technology. With AI and automation, we are on the verge of a management revolution.
In summation, each of the categories is distinct in its own way and each of these categories is vital for the RE complex as a whole. As the industry continues to evolve these processes will still be required in the business. The manner in which the business is conducted, however, is positioned to be disrupted in a massive way. We are in a RE renaissance.
This article was written by u/MoneyManDann.
