How Technology Is Revolutionizing Real Estate
By NICOLE MURRAY
Technology has transformed every single industry on the planet. Real estate is no exception.
“Technology is making the home buying process smarter and more personalized. Our goal is to support agents with technology that streamlines their work, enhances their client relationships, and ultimately helps them grow their businesses,” said Cynthia Taylor, senior vice president of Agent Software and Advertising at Zillow.
How have the latest advances in tech benefited industry professionals and consumers? The Mortgage Note spoke with Taylor and others to find out.
Modern Listings
People aren’t turning to the real estate section in their newspaper anymore when it comes to finding a new place to live. Websites like Zillow, online multiple listing services, and social media allow listed homes to be plastered all over the internet.
Taylor said modern listings of homes for sale include 3D home tours and interactive floor plans. These allow users to get a feel for the home without having to physically be in the property.
“Not only are listings more readily available, but how homebuyers view listings has become more convenient,” Taylor said. “3D home tours and interactive floor plans let buyers virtually walk through a home, getting a real sense of the layout and space.”
Sellers are looking to use the newest technology when putting their homes on the market. Taylor said agents using Zillow Showcase are winning 30% more listings because active Showcase listings are getting 75% more page views, shares, and saves than similar listings.
Video
Using video in real estate listings is no longer a trend; it’s become a necessity in some markets.
“Seeing video within a property listing has become standard because it gives the viewer such a good feeling of what the house is like and whether or not it will work for their needs,” said Jules Zaphire, real estate professional at the Pantiga Group. He is licensed in New York and Connecticut.
There are different types of video that have become popular. Among the most noteworthy include self-promotion, open house events, and virtual tours of a home.
“The virtual walk-throughs are the best because you are able to see the home from top to bottom,” Zaphire explained. “The downside is that you cannot smell the home or hear the surrounding noises that could affect one’s decision to purchase or not.”
Virtual Staging
Virtually staging is when a photo of an empty room is enhanced with digital furniture and other decor to help a buyer visualize themselves in a home.
“Some people struggle to imagine how to set up an empty space. This tool does it for them,” Zaphire said. “In many cases, I’ve had positive reactions when the pictures are accurate to what the home looks like.”
“For agents and photographers, this tool helps to save time, boost efficiency, and make listings more appealing because it helps buyers visualize a home’s potential without having to visit in person,” Taylor added.
There is a downside to this technology. Zaphire said he has heard of instances where agents doctor photos to misrepresent a home’s size or condition. He offered advice on how agents should use virtual staging.
“I suggest showing the before and after photos so viewers get a sense that the picture is true to form. With ensured accuracy, a lot of people appreciate the inspiration virtual staging gives them,” Zaphire said.
Artificial Intelligence
Everyone is talking about artificial intelligence, no matter the industry. AI can be utilized for writing, media, marketing, photo selection, and editing videos.
“You can use AI to repurpose the listing description for a website, a newsletter, MLS, social media captions, and more, so it is suitable for different deliverables,” said Rob Jensen, owner/broker of the Rob Jensen Company in Las Vegas.
Jensen advises industry professionals to explore their capacities using AI but warns against relying on it completely.
“Join forces with artificial intelligence, don’t rely on it to do your job. The sooner you start learning it, the better,” said Jensen.
Mortgage Calculators
We’ve all seen them. Online mortgage calculators allow homebuyers to research homes they can afford and predict monthly costs. While they are a useful tool, Deric Zaphire, mortgage loan originator with RFA Capital, said there is a downside. He is based in Connecticut.
“The positive to all these tools and information being so readily available is that you have more knowledgeable buyers and sellers. The downside is that it can sometimes go a step too far where clients think they know better than you,” he said.
Interest Rates
Deric Zaphire said technology has also allowed for people to look up mortgage rates easily. As a matter of fact, rates are one of the most commonly researched pieces of information, he said.
“Buyers are able to research and find their rates online because the information is so readily available,” said Zaphire. “Just keep in mind that the rates you see online are the best case scenario and don’t take your credit, your loan, and all the other factors into consideration.”
He advises buyers to turn to mortgage professionals to guide them.
“You have to find someone you trust to work with so you have someone to guide you and sift through it all,” said Zaphire.
Social Media
The growing popularity of social media has allowed for real estate agents and loan officers to affordably market themselves. Buyers and sellers are also utilizing social media to get to know their agents and other industry professionals on a more personal level.
“We’ve seen firsthand how platforms like Facebook, Instagram, and YouTube enable agents to showcase listings through high-quality visuals and virtual tours, making properties stand out in a crowded market,” Taylor said.
Jensen advises industry professionals to boost their social media content because, well, what is the point of solid content if no one sees it?
“Anything you post needs to have ad money spent behind it,” said Jensen.
QR Codes
QR codes have become a very popular trend because they are easy and affordable. They can be placed on business cards, postcards, print publications, and can lead the scanner to a listing or a website for additional exposure.
“Keep in mind it needs to be mobile-friendly to be most effective because nine out of 10 times, these codes are being scanned using a smartphone,” said Jensen.
In Person Vs Remote
The vast majority of technology available in the real estate and mortgage industries has transformed how business is done on a day-to-day basis. Deric Zaphrie said that now, he rarely meets clients face to face, which was not the norm years ago.
“I barely see clients in person because everything can be done via Skype, phone, and documents can be signed online without ever stepping in the same room,” he said.
Zaphire adds that there are positives and negatives to this new setup for loan originators.
“The positive is that I can get things done in a quicker turnaround time, and usually from almost anywhere. The downside is that you do have to work harder at creating a connection with the client,” said Zaphire.
At the end of the day, like most industry professionals, he is willing to do whatever works, even if that means putting technology aside in favor of building a traditional in-person relationship.
“People do business with people, so the stronger the relationship, the better,” said Zaphire.