From big data to virtual reality, technology continues to make huge strides in the real estate space year after year. But, if you’ve ever worried that these advancements will make your brokerage services obsolete, never fear. I’m here to put your mind at ease.
The National Association of REALTORS®’ 2016 Profile of Home Buyers and Sellers survey found that 87 percent of buyers used an agent last year compared to only 81 percent in 1981. You read that right. As technology and internet connectivity have increased, more consumers are turning to agents, rather than fewer.
But that doesn’t mean you should become complacent. We must remain the experts in all things real estate and continue to offer irreplaceable value in our marketing and negotiation skills. That includes incorporating tech trends that will help buyers and sellers achieve their goals.
“Aside from internalizing technology on an everyday basis to run your real estate business … there are some very huge tech trends that literally can change everything as we know it,” said Niraj Ranjan Rout, cofounder and CEO of Hiver, which publishes the Gmail app of the same name, in an email interview about the biggest tech trends of 2017.
Here are a few such trends:
Consumers have long been enjoying virtual realty in the gaming industry. Now, many — especially millennial buyers and sellers — have come to expect the VR and 3-D video experiences. Even in my own household, it’s unheard of to go see a movie like “Star Trek” without seeing it in 3-D. VR has seeped into our society’s collective expectations, and that doesn’t turn off when it’s time to house-hunt.
“VR is most certainly one of the most exciting and course-altering tech trends for real estate,” said Rout, who notes many different real estate firms are experimenting with VR headsets such as Oculus Rift and Samsung Gear.
Sotheby’s International Realty, in partnership with Matterport, recently introduced 3-D and VR tours online. John Passerini, the brand’s global vice president of interactive marketing, was recently quoted on Sotheby’s blog as saying, “Distance can present a challenge when looking to buy a home, and virtual reality has provided a provocative solution. This technology is allowing buyers to purchase homes without having to physically travel to view them, which is especially relevant to the global clientele we serve.”
Indeed, as VR continues to grow, it will completely change the real estate customer’s experience by providing buyers the ability to experiment with different home styling options, navigate floor plans, and get a full 360-degree view of the house. Imagine the day when “a prospect can take a slow walk around the garden of the house, experience the wine cellar, [and] stretch their arms to see if the kitchen is spacious enough,” said Rout.
You may not be immediately attracted to Facebook posts from friends checking in at restaurants and post about their lunch, but all that data can actually be useful for your business. Well, maybe not exactly the lunch specials, but geographical check-ins and other types of information being shared may help direct you and your agents to the people who will soon be buying and selling.
Facebook and other companies are collecting all that data in order to tailor advertising and digital marketing. “It allows you to access detailed information about a customer and analyze their past behaviors,” said Rout. “Even simple factors such as the life stage of the prospect, their employment status, marital status, number of kids, and demographics can be included to generate a list of rich targets for whom you have the information to provide rich customer experience.”
There are various ways to retrieve such data, including Facebook ads. With more than 1 billion people logging in daily and sharing bits and pieces about their lives, Facebook is a gold mine of data for real estate professionals to help connect with people when they are gearing up for a move. In fact, Facebook allows advertisers to target consumers by categories such as “likely to move” and “For Sale by Owner.” The days of arbitrarily mailing postcards to people who may not be in the market to buy or sell are long over. Now you and your agents can use big data to directly find the ideal client. And it’s affordable — an ad can cost as little as $1 to $5 per day.
If you’ve ever caught an episode of the old cartoon “The Jetsons,” then you’ve likely fantasized about your own smart or fully automated home. Well, what was once reserved for luxury properties is now available to the mass market. Technology such as smart lighting, automated door locks, temperature controls, and more are increasingly in demand among all home buyers. It’s improving energy efficiency, quality of life, home functionality, and more, said Rout.
Are your agents ready to market smart-home features or advise buyers on the technology that’s available? Do they know the price points and the best local vendors? Do they know what smart-home upgrades can help a home sell faster? “Dismissing technology as some overrated unnecessary luxury can be a not-so-smart thing to do, and so is being a late adopter of new tech trends,” Rout said.
Technology is changing, and it’s enhancing our ability to market to and connect with prospects. Start embracing these trends at your brokerage now to keep your business in tune with what buyers and sellers want, while ensuring that your services continue to be irreplaceable.
Lee Davenport is a real estate broker and business doctoral candidate who trains real estate agents and brokerages on how to work smarter in real estate. Join Lee’s free RE Tech Insider’s Club at LearnWithLee.REALTOR for tips and tools to help your business thrive.