Whatever the specific role within the industry is, there is no doubt about the fact that real estate remains one of the most lucrative industries to get into. Generally the manner in which the different players of the industry go about their business has remained the same with very little changes to speak of. It is indeed a case of not wanting to try and fix what’s not broken and so all the key players are considerably justified in sticking to their tried and tested ways of doing things.
However, no industry is completely immune to change, especially the kind of change which comes in the form of tech disruptions. Change is coming to the real estate industry and because this particular industry hasn’t seen all that much by way of change for a considerable period of time, when the anticipated changes sweep through it they’re going to be colossal.
Disruptions in technology are not ordinarily aimed at the real estate industry specifically, but the real estate industry is not immune to them. The basic use of an online listings site for example has to a certain extent eliminated certain aspects of the traditional job of a real estate agent and that’s just due to the widespread adoption of the web application development featuring dynamic listing capabilities. Bigger tech disruptions are anticipated to hit the industry though – far bigger than online listings platforms.
The development of blockchain technology (a public ledger system of storing records which include transactions) targets the financial and legal industries amongst others, two sectors which form part of the core of real estate. Blockchain technology will probably only be fully integrated into the real estate industry once its development is viewed to be more standardised as opposed to its early development phase status it currently generally holds.
More tech disruptions to come include Artificial Intelligence, Augmented Reality and Virtual Reality, all of which are expected to make a huge impact and drive a mega paradigm shift.
Legal and Paralegal Services
Legal and paralegal services make up a big part of the real estate industry and many could quite rightfully argue that actually the entire real estate industry is just a branch of the legal industry. When a property’s ownership is transferred from the seller to the buyer, so much legal paperwork goes on both in the background and on the surface which extends beyond the core action of buying and selling. Things like homeowners insurance come into play as well and it’s all just legal field practice.
With the reintroduction of our mentioning of blackchain technology as an anticipated disruption to hit the real estate industry, the legal field which caters to the industry will perhaps be the most affected if not entirely eliminated in the form it exists today.
Blockchain tech is already being used in the legal industry to by-pass expensive lawyers and all the red-tape which has come to form a standard part of the field, so with this public ledger system one would think is only a matter of time until it gets implemented in the real estate industry to facilitate property ownership and transfer records.
Real Estate Agents
If the job of a traditional legal professional active in the real estate industry is under threat then one would expect that the job of a traditional real estate agent is also under threat. Not entirely though, unless you don’t begin to embrace the coming changes and align yourself with the incorporation of the tech disruptions set to hit the industry.
Some mortgage professionals already convert mortgage leads with videos as the first significant step taken to embrace the impending changes in the industry. It’s a simple matter of the traditional text-based leads follow up communication not quite cutting it any more. Prospects now want to be able to see a more visual representation of what they might be getting into by way of property investments, so videos that play in their emails are a precursor to an even bigger disruption to come.
As a result of the likes of Augmented Reality and Virtual Reality, very soon a prospective home buyer won’t need to arrange a physical viewing that is conducted by the estate agent handling the listing of the property in question. They’ll be able to see it in its entirety and as a life-like representation which is accurate in its presentation of everything to do with the property, such as structural integrity and major or minor damages if there are any. Add Artificial Intelligence into the mix and they’ll even be able to get insight into issues such as the market-related value of the property they’re viewing in relation to its listing price.
So the real estate industry is definitely set for some major changes, but if you align yourself with those changes then any role you play in the industry can be adapted to form part of the new face of the industry.