As technology drives our push towards advancements in many aspects of our lives, it is beyond doubt that these changes will also be felt in real estate. In 2018, we will continue to experience many changes in how real estate firms deal with buyers and sellers, with proptech and fintech major forces integral to how we deal with the process of buying and selling homes.
It is conceivable that a radical overhaul in the real estate business could lead to the traditional means of purchasing property being completely phased out. The requirement to even leave our existing homes to search for another could one day be a thing of the past. Those looking for real estate in Edmonton, for example, can already do so from the comfort of their couch, but completing the entire process without even getting dressed is the exciting future we may have at our fingertips.
But how, is the question.
The most basic way in which fintech and proptech can improve the real estate industry is in the advantages the use of intricate data can have for the future of how we “do” property. From market predictions and analytics, we may get a greater sense of where trends will lead us as a whole. By integrating behaviors into projections which can be used to model a more efficient way for individuals to interact with suitable buyer and sellers, we can also cut the time a typical house sale takes from sale agreement to completion.
Therefore, we can generally approach a new way to understand what drives migration of those who look to rent, and the social-economic reasons which are behind the patterns and behaviors of individuals who fall into particular demographics.
As fintech continues to influence how we operate as businesses, expect the emergence of new platforms which can also, in turn, direct the way business is done. With advancements in how we fund new businesses also likely to contribute to the emergence of fresh ideas, there may be more control for the average seller.
Additionally, we may see the impact of blockchain on real estate. The influence of big data on the real estate industry could revolutionize how we pay for transactions, and create scope to introduce new methods which could promote both competition and an evolved way of dealing with the process of purchasing a home. As big data becomes more useful to property owners and moguls, there is also scope to radicalize our expectations in real estate sales.
Additionally, the use of blockchain in real estate could have extensive benefits to the combatting of fraud and money laundering in the industry. This alone is among the chief reasons why real estate will embrace this technology, give that 27% of all real-estate cybercrimes were attributed to wire fraud. Given these problems, we can expect fintech to play a significant role in the re-development of the real estate industry as the next few years play out.