Proptech refers to the many new apps and platforms that serve the real estate industry. Technology is transforming how properties are sold and marketed, but many individual buyers are unaware of these changes. From the outside, it still looks like an agent puts up a sign, conducts open houses, and waits for offers. If we look under the hood, there is much more going on.
1. AI and Predictive Analytics: Advanced algorithms personalize property recommendations based on your search history, lifestyle, and budget. If you search for a property and use social media platforms, you can expect comparative options to pop up in your feed.
2. Immersive Experiences: Virtual and augmented reality are transforming property searches. 3D home tours and VR walkthroughs are at an early stage. Future buyers will explore properties remotely, which will help cut down on search time.
3. Comparative Market Analysis (CMA): The CMA was once solely the domain of the listing agent. Now, buyers themselves can control automated tools to provide comparisons of similar properties to ensure they don’t overpay.
4. Geo-Mapping Tools: Interactive maps show property locations along with data and locations on nearby schools, public transport, hospitals, and other amenities.
5. Smart Homes: Properties equipped with IoT-enabled devices (Internet of Things) like smart thermostats, locks, and lighting are increasingly popular and will soon be commonplace. On your afternoon commute, would you like to dial into your IoT, run the bath, preheat the oven and feed the cat?
6. Smart Contracts: Contract exchange used to involve a physical exchange of bulky paperwork between two lawyers. Now, it is an online push of a button with technology from Australian company PEXA, which is making inroads overseas.
7. Tech-Enabled Brokerages: Fintech, the precursor to Proptech, loves your data. Banks and funding companies are integrating technology to streamline loan applications and to make bank switching easier.
8. Investment Analysis: Investors can download tools to calculate ROI, rental yields, or potential appreciation and depreciation for buyers considering investment properties.
9. GreenTech: Houses in the future will be rated on their energy usage and sustainability. In Australia, the Green Star system will become more critical to buyers of houses equipped with sustainable, cost-saving technology.
Will it Take Over?
I doubt that Proptech tools will ever take over completely, making real estate agents redundant. The DIY property listing websites have not become as ubiquitous as first thought. The subtle art of negotiation is something that a bot or android will never master. The good agents I work with are skilled at maximising the sale price without alienating buyers.
In the same way, an experienced buyer’s agent has human perceptions beyond the scope of the most advanced Proptech innovations. Deep local knowledge of a neighbourhood and community, understanding and appreciation of aspect, character, design, weather, privacy, amenity, livability, and all the other things that make one house a home and another a lemon are not going to be mastered by machine learning. My job is safe from AI – for now, anyway!