Remember when a “high-tech” real estate professional was armed with a pager? Over the last decade, technology has exploded in all areas and it is now permeating the real estate industry and is altering the course of how business is done.
The real estate industry today isn’t all that different from any other industry when it comes to technology. It is embracing new innovations that can be that are both exciting and course-altering.
We also are seeing real estate companies embracing technology in simpler ways, such as using project management tools and marketing automation.
Technology also is empowering investors today. They are able to research their options and review potential investments online.
According to Entrepreneur, there are three key trends that are helping to bring new investors to the space, including data-driven investing, short-term rentals and untapped potential.
When it comes to data-driven investing, big data and predictive analytics can help personalize investing, even when it comes to real estate.
Real estate professionals are often protecting of big data, fearing if it is available to the public it will lessen the value of their expert knowledge and overall value.
According to Entrepreneur, data-driven investing should not replace real estate professionals, it should help them become more specialized. Armed with this plethora of data, Realtors can spend less time conducting research and more time doing what they love – selling.
Short-term rentals are attracting new investors, particularly millennials. Apps like Airbnb and VBRO have caught their attention. These on-demand rental reservation websites had helped to drive growth in the short-term rental market.
There are challenges and some industry experts are skeptical of short-term rental properties as investments. The short-term rental issue pits long-time and year-round residents against investors and their renters
Some areas also may take a range of approaches to regulate the issue. Some have placed restrictions on the length of time for rentals, requiring that they be no shorter than 30 or 60 days, for example. Others have prohibited or outlawed short-term rentals altogether.
Lastly, demonstrating untapped potential can fuel investments. The industry can grow if it takes advantage of technology to attract new consumers.
The technology also can be utilized to ensure that investors are minimizing their risk by using data to avoid purchasing a property that may not turn a profit.
Access to data is opening doors, allowing more Americans to enter the real estate fray. This can only help drive growth in the long run.