9 Digital Trends for Real Estate

What are digital trends for real estate? Does real estate become a magnet for innovations? Well, not exactly. One of the National Association of Realtors' researches states an interesting fact. 45% of brokers report that “keeping up with technology” holds terror for their agents.

But, this industry is taking over technologies for two reasons. First, to improve internal operations and second to adopt a customer-driven approach. It has been speeding up these days. Partly because it improves performance and results, partly because of pandemic pressure. Either way, if you are considering building apps for this industry, you should be in the know of the real estate technology trends.

Digital Transformation in Real Estate: Why Do You Need it?

Digital transformation often feels like it comes out of nowhere, but it doesn't. This process keeps taking over the world economy. And it is going to get more important as you progress.

Digital transformation is a change that occurs within an industry due to the introduction of digital technology.

Why does digital transformation matter for the real estate industry?

1. Customer access. Today's customers expect quick and easy access to your efficient service. This happens despite the stage of the customer lifecycle. Search engines help you to appeal to your potential clients. But you shouldn't rely on the page rank of your real estate website. This is rather a short-term goal. Why so? Because the voice recognition devices will replace the manually typed requests.
   
   
2. Customer engagement. The diving force of long-term active relationships with customers is content. But its scope, variety, and types are changing. bombarding customers with messages doesn't work with savvy customers these days. The content should bring real value to attract attention to your service or product.
   
   
3. Competition. The relationships with direct or indirect competitors may change. Sometimes, the companies that chased the same audience become partners. Here also appears asymmetrical competition. The latest example is the Amazon and Realogy partnership: Amazon offers the incentive to its customers to buy homes with Realogy agents for up to $5K worth of Amazon products. The real estate agency gets exposure on the biggest e-commerce platforms. Amazon engages more visitors and subscribers for Prime services. Could you ever think about Amazon as your competitor in the real estate niche?
   
   
4. Data. It is a vital part that drives business decisions. Traditionally, a company database consists of operations, sales, marketing, surveys, and so on. But these days, the business doesn't generate this information. Conversations, interactions, internal and external processes, social media, mobile apps bring piles of unstructured data. Here is where Big Data, predictive analytics, and CRM come to the rescue. Those technologies help to reveal new patterns, predictions, values, and improve business decisions.

Recap: Today, many real estate companies are adopting big data, blockchain, CRM, predictive analytics, and AI software to advance operational processes. Mobile apps for real estate agents and apps for home buyers, websites, and virtual tours upgrade customer interactions, refresh marketing, and boost revenue.

Check out more information on how real estate companies implement AI nowadays. 

 

Top 9 Digital Trends for Real Estate

Digital disruption is already here. Many businesses are already innovating with technologies in the real estate industry. That's why it is so important to identify the trends and your go-tos. Let's dive into those technology tendencies in more detail.

1. Big Data

What is it?

Big Data is a technology that automates the analysis of huge amounts of information from many sources. In practice, it helps to optimize financial resources, time, and deliver a more accurate result deprived of the human factor.

For the real estate industry, big data works as a multipurpose solution. Let's say, you want to rent or buy an apartment and have a couple of options. Big Data technology will help you to compare those real estate objects by several parameters and choose the best suitable one(s). It saves your time in the search for a new home.

Benefits:

• Big Data in real estate helps to reduce financial risks. It analyzes the owner’s information, condition of the object, renovations, and reconstructions done before. Then, a real estate agent gets the estimation of this property and gives the customer all the information and recommendations.
• The realtor can offer the customer the most suitable houses or apartments. Big Data algorithms collect the list of suitable options to the set parameters.
• Big Data comes in handy for social media marketing. It can get information from social media about customers. Then it runs data through algorithms. The result is perfect timing for customers reaching out with an offer.

Examples in real estate niche

Some companies have already contributed to the real estate industry and offer Big Data apps. One of such is Zillow Rental Manager. It is a real estate and rental marketplace. It estimates the real object value and defines the average market price in different regions.

2. CRM Software or Custom CRM Development

What is it?

CRM software performs two basic tasks: maintains companies, realtors, customers, tenants’ data. And it helps to manage relationships with those customers. 25% This is how many CRM buyers use this technology in their business.

 

Source: https://www.softwareadvice.com/resources/crm-trends-2019/

The thing is that the definition of "real estate CRM" includes two types: dedicated software and industry-friendly app for real estate operations.

Benefits

CRM enhances such processes

• Data import. Despite the information sources, it will be automated
• Real estate property and its features
• An automated drip and sales campaigns
• Transaction management across all stages of the sales funnel
• Reporting and dashboard for quick access 
• Workflows with the options to tailor them to your specific business processes
• Role-based access to company data to avoid any leakage
• Third-party services integration to exclude switching between different apps

Examples in real estate niche

Among the dedicated CRMs, you will find Market Leader, Total Brokerage, Wise Agent, Rethink, LeadSquared, LionDesk. The list of industry-friendly CRMs is far too long to enlist.

Note: the real estate deal comes out more complex than a see-like-buy transaction. Here the realtor has both a buyer and a seller as customers. These customers need different follow-ups, meetings, and negotiations. The pre-built CRM may have too many features or lack some options that impact your business. And here the custom CRM development turns out to be a good option. You can get a tailored CRM solution for your specific processes and workflows.

3. AI and Machine Learning

What is it?

AI helps machines to perform complex and sophisticated tasks. This goes from evaluation, problem-solving, decision making to pattern recognition, and comprehension. Often, machine learning comes as the core approach used by AI. This type of software automates repetitive and time-consuming tasks. It delivers intelligent recommendations and performs many other tasks.

Benefits

AI and machine learning improve your business performance. 

• AI can be used to streamline data management in real estate.
• The algorithm in recommendation apps identifies the customer’s preferences and suggests objects based on its findings. 
• AI enhances the advertising campaign by scanning data and identifying the most popular or demanded types of real estate objects.
• AI deals with large property management.
• Machine learning-based software can recognize patterns in the data and generate actionable insights.
• Machine learning has paved the way for chatbots. Those apps become the primary mode of communication for customer service inquiries.

Examples in real estate niche

The example of real estate property management, a good example is Gridium. This tool specializes in saving energy and property resource optimization. The algorithms analyze weather and detect spikes in energy use patterns to warn building operators. Once the property managers react to such issues on time, they can decrease operational costs.

As for the recommendation software, check out Trulia. This app employs computer vision to get relevant information from the customer’s photos. That can be the preferred type of floors, color palettes, and construction materials. Then the algorithm suggests the most suitable offers on its marketplace.

Source: https://www.trulia.com/

4. Predictive Analytics

What is it?

Predictive analytics uses Big Data (i.e., a combination of historical data, behavioral analytics, and real-time data) and machine learning algorithms to evaluate and forecast market trends.

Benefits

• Improve lead generation by understanding the buyer's journey over time. So real estate managers can spot the customers who are interested in the purchase or renting. And then, reach those qualified leads out with the right message.
• Find the perfect investment property. The heatmap analysis detects the most suitable area on several parameters: property value, rental income, and occupancy rate.
• Value of object renovations. Predictive analytics can analyze the property improvements. It identifies the expected condition and what price buyers are willing to pay. If a realtor shares this information with property owners, they can make necessary improvements.

Examples in real estate niche

Compass is an app based on AI algorithms and helps to find and sell properties across US cities. The solution performs in two ways. It uses the customer's previous searches and interests for generating personalized offers. And the integrated CRM helps real estate managers to track customer behavior. Whether they are active on the platform or other resources.

Skyline AI is an investment calculator. It collects the data about the deals made during the last 50 years and compares it to information from other resources. The app predicts market trends and ROI. Plus, these algorithms can predict rental costs, find high-reward opportunities, and forecast market anomalies.

HouseCanary is another example of the price estimation app. The app analyzes data during the past 40 years. It calculates and forecasts a property price at the given moment and the nearest future.

Source: https://www.housecanary.com/

5. Blockchain

What is it?

The buying, selling, and estimating real estate is rather vague and fragmented. Blockchain technology can enhance this process, increase its transparency, remove paper-work, and exclude the involvement of the numerous third-parties. 

Don't be sidetracked by the misconception that blockchain is only about cryptocurrencies. Blockchain handles two tasks: store data and serves as a digital registry for transactions and contracts. 

The decentralized registry consists of open transaction blocks. Those blocks are chronologically connected in a chain by cryptographic encryption. Each block is connected with the previous one and contains a certain set of records. When the registry is updated with a new block, it can't be changed.

Benefits

Blockchain is one of the digital trends for real estate because it makes the transactions automated, accelerated, accessible, and traced. Here are the advantages it brings:

• The transaction process is more efficient. Plus, real estate agents, appraisers, and notaries are cut out of the process.
• Data transparency of documents and events during the purchase of a property can be tracked, contracts become readable, and registries cannot be changed afterward.
• Due diligence process before the purchase is facilitated as customers can access the actual value of properties.
• Real estate investments become more accessible. Customers or companies can buy or trade only fractions of a property. Blockchain also makes the transactions of ownership fast. 

Examples in real estate niche

Ubitquity is an enterprise blockchain-secured platform for real estate and title recordkeeping. It offers secure recording, tracking, and transferring deeds. The financial institutions, title, and mortgage companies benefit from a reduced title search time, increased confidence, and transparency. Ubitquity's blockchain-based software creates a customizable system for recording every pertinent step of a real estate transaction through a simple, secure portal.

Source: https://www.ubitquity.io/

6. Cloud Computing

What is it?

Cloud computing is calculations done in the cloud. The SaaS apps and services work and store data in the cloud which makes it easy and fast access. 80% of top real estate performers use cloud services for marketing, sales, customer relationship management, property management, shared storage, data-mining, and so on.

Benefits

• Remote databases with files to enhance realtors’ performance.
• Improved customer relationships and quick response to queries and requests.
• Reduced IT maintenance costs on servers hosting.
• Real estate companies get more scalability without adding extra infrastructure.
• Continuing service despite the unexpected disasters for a physical office.

Examples in real estate niche

The list includes CRM, BI, MLS, marketing and sales automation tools, and so on.

7. Virtual Tours

What is it?

People already use their phones to order lunch, do their banking, and crown reality-show winners from the comfort of their couches. Why not extend this convenience to virtual tours before renting or buying a property? Photos can be misleading. Virtual tours help customers to get a more accurate impression of your property. In the pandemic time, it is even more preferred to in-person tours.

So, a virtual tour is a 3D walkthrough that helps potential buyers to see a for-sale apartment or house. Like in Street View on Google Maps, the potential buyer controls which part and from which angle they want to look at.

Benefits

• More attractive listing appeals to more people and potentially can get more offers.
• Saves time and minimizes in-person property showing to actually interested customers.
• Virtual tours are more appealing to out-of-town customers or international buyers.

Examples in real estate niche

LiveTour helps realtors to create professional 360-degree VR tours on mobile devices. With their VR Maker app, you take pictures with your mobile device. Then link together those panoramas with a VR tour builder. Afterward, integrate this virtual tour with your platform.

Another example is EYESPY360. This app creates 3D models, floor plans, or 360 Virtual tours. The real estate agents just sign up on the platform. Then, they upload 360-degree images taken beforehand. And, they wait until the virtual tour will be ready for download.

Source: https://www.eyespy360.com/

8. Website

What is it?

The good old website is like a name card for a business or an app. What's more, the average customer uses a mobile device to search for properties online. They looked at websites with photos, home listings, and information about the home buying process.

Basically, a website for a real estate company can include:

• property listing
• integrated mapping
• search option with customized filters
• high-quality images
• buy and rent cost calculators
• built-in or integrated CRM system
• blog

Benefits

• The reviews and feedback create more transparency. Customers can leave reviews and that will improve their reputation.
• Get qualified leads.
• Additional advertising resources like SEO optimization, PPC, affiliate, or content marketing.
• Improved marketing campaigns. Growing brand's own subscribers list for a weekly or monthly newsletter.

Examples in real estate niche

Here are a couple of websites that present the basic features listed above: ABODO, Zillow, Redfin, RadPad, CityRealty.

Source: https://www.abodo.com/

9. Real Estate Mobile Apps

The digital disruption is setting off its way in real estate. No wonder that a lot of tech companies and startups are interested in real estate mobile app development. They are truly eager to help bring real estate into the smartphone era. If you have decided to join the mobile app market, then this industry is a promising starting point.

How to create a real estate app?

First, come up with the idea of your app. Do you have a specific service to advance business operations in mind? Or maybe you want to create a clone of the existing ones - something like Zillow or Trulia. 

Second, do market research. So you can define the niche apps and tools, audience's pain points, and track the popularity of particular digital trends for real estate. Distill your initial idea and reframe it to potential customers and their needs.

Third, wireframe your business plan, branding, monetization, and sources for gaining databases of customers, realtors, properties.

And fourth, look for a tech company to reshape your idea into an app. Think about the non-standard places for hiring app developers. It has already become a good practice to partner with outsourced agencies.

Real Estate Digital Trends: Over to You

Digital trends for real estate are various and slowly adopted. Like in any other industry that has started its digital disruption route. So if you want to join the real estate industry and create an app - drop us a line. We will help you to reshape your idea into a real estate app.