Before the digital era, real estate agents just walked around and talked to people who wanted to sell, purchase, or rent out houses.
However, the way people buy and sell properties has changed. When searching for a home, 97% of buyers use the Internet and most often visit the house they found online.
In the meantime, 51% of people are sure that agents help find the right house to purchase. 88% of buyers bought their homes through a real estate agent.
Nowadays, real estate businesses provide more innovative products and services, implement new digital and automation tools to do their job, and better reach the new generation of tech-savvy clients.
This article will explore what digital transformation means, what leading technologies there are, and their impact on real estate agents.
As noted by Real Estate Outsourcing digital transformation is a process of creating value through leveraging digital technologies to develop new business models, products, services, and customer experiences.
The goal of digital transformation in real estate is to improve the competitiveness, efficiency, and effectiveness of a company and to adapt to the ever-changing digital environment quickly.
Digital transformation can be achieved through three main channels:
- customer experience;
- digital product development;
- organizational change.
Introducing new technologies and tools has made it easier for realtors to find and sell properties, advertise homes, and manage leads.
At the same time, the Internet allowed buyers and sellers to get in contact with real estate agents much easier. Also, real estate digital transformation has simplified the searching and listing processes and made it more convenient for clients to find homes online and schedule showings through online portals.
The real estate industry is one of the most dynamic industries in the world. It is constantly evolving to meet the demands of consumers and businesses. Below are the major technologies that are transforming this industry:
Artificial intelligence (AI) can be used for a number of functions within real estate solutions, including CRMs, lead generation tools, marketing, and customer service.
AI helps agents stay ahead and makes their lives easier by automating tasks, providing insights, and identifying new opportunities.
Real estate agents can better understand what potential customers look for in a home and how to market to them. It also allows realtors to create more personalized offers based on their preferences.
With AI, agents can spend time on more productive tasks, like working on their sales pitches or closing deals.
In recent years, property transactions have become more complex due to the increase in regulations and legalities involved in buying or selling a property.
With the introduction of smart contracts, this may change.
A smart contract is a computer protocol that can facilitate, verify, or enforce the negotiation or performance of an agreement. Smart contracts allow for peer-to-peer transactions without third parties.
Smart contracts are a new and revolutionary way of exchanging money, property, shares, or anything of value. When implemented, they lead to greater efficiency in real estate transactions by cutting down on paperwork and other overhead expenses. Plus, there is no need for an intermediary to act as a guarantor.
Chatbots are a new way of interacting with customers. They are becoming increasingly popular in real estate because they can save both time and money.
What’s more, 63% of customers are more likely to return to a site that offers 24/7 online chat support.
Chatbots can provide more personalized service while saving on labor costs. There are many ways how real estate agents use them. For example, chatbots can:
- chat with customers;
- schedule appointments;
- automate repetitive tasks;
- offer advice on the properties of interest;
- provide feedback on listings;
- generate leads;
- show houses.
Real estate is a very competitive industry, with many agents vying for the attention of potential buyers.
As of now, 88% of respondents use multiple Listing (MLS) websites, while 68% still put yard signs to sell houses.
However, there are ways to make your marketing efforts more effective.
Data-driven strategies and AI-powered marketing campaigns are the keys to success in today’s real estate market. There are two main reasons why they are essential:
1) Data helps you know where your audience lives and what they want.
Real estate is no longer about the number of properties on your website or how many billboards you can put up in a city. It is all about data-driven strategies and generating leads.
Real estate marketers should develop a data-driven strategy for their marketing efforts to stay on top. This ensures that they can find out what works and what doesn’t work for them.
Also, it is important to conduct research to deeply understand the target audience and create content that resonates with them.
2) AI-powered marketing campaigns allow realtors to generate personalized content for each potential client.
Real estate agents use AI to identify and segment audiences. Then, they analyze data to understand what types of ads work best for different demographics and target those groups with specific ads.
The blockchain is a public ledger that records transactions securely, verifiable, and permanently. This technology will change not only the way we buy and sell a property but also the way we invest in real estate.
The most common use cases for blockchain in real estate are:
- Buying and Selling Properties: Blockchain can replace traditional buying and selling processes. The technology provides buyers with access to information about properties and simplifies the process of transferring property ownership from one party to another.
- Title Ownership: With blockchain, you can store information about title ownership on a public ledger, making it easier to verify who owns a property at any given time.
Blockchain has been used to create digital currencies such as Bitcoin. However, realtors can also utilize this technology for storing other data, like contracts or property deeds.
Blockchain technology is applied to any type of document or transaction where there is a need for verification. The transparency that blockchain provides will help eliminate fraud and corruption in the industry.
The real estate industry is one of the most profitable industries in the world. And it is the most competitive one as well.
Given the rapid pace of change, real estate agents should either build a new digital business or fully revolutionize an existing one. Property businesses need to embrace digital transformation to succeed in the future and focus on what matters most to their customers.
Real estate digital transformation is critical for creating a better customer experience, increasing revenue, and retaining customers.