The Future of Real Estate
It’s a laughable understatement to say we live in a disrupted world.
From the way we consume information to the way we consume food, it seems almost every facet of our lives has been touched by and changed by technology and the internet. Real estate is no exception.
In fact, it is set to become one of the most disrupted industries in Australia and New Zealand, with over 80% of real estate jobs at risk of digital disruption by 2032 compared to under 45% of Australian jobs at risk in general. So what does this mean for the buyer, vendor, or even the renter of a property? Well, let’s dive in and find out…
More Informed Buyers and Vendors
Long gone are the days of almost zero transparency between real estate agents, buyers and vendors. Thanks to technology and the internet, buyers and vendors of properties, just like you, have a world of data and information at their fingertips to use to their advantage.
For buyers, the use of real estate apps and online property portals means they can search for properties that fit their specific needs and budgets all on their own. Without an agent, they can be informed on the potential sale price of a home, the price trends in the area, the sale/rental history of a property, and so much more. What this means for the overall industry is buyers are becoming more aware (and therefore, more realistic) on what kinds of properties their budgets allow. Additionally, once their research is complete, buyers can even shortlist the homes they’d like to see and schedule inspections all from the comfort of their smartphones.
For you, the vendor, the accessibility of this data means you’re more attuned to what your property is worth. On top of having your property professionally valued, you can leverage the price trends of your suburb to your advantage. Having this information in your arsenal only makes it easier for you to sell your own property. With smartphones with built-in cameras that can rival professional photography equipment, and writing apps like Grammarly that help make anyone sound like a professional copywriter, creating an enticing and attractive listing comes down to just a click of a button.
With the consistent meteoric rise of Virtual Reality (VR) in both personal and commercial arenas, it comes as no surprise that the real estate industry is beginning to adopt this technology. The most common use of VR in the real estate space is virtual property inspections. Buyers were once expected to spend time (and money) visiting each and every house on their list before making their final decision, but thanks to VR, buyers can now virtually visit dozens of properties without ever leaving their homes. Offering more than just stagnant photographs, VR allows buyers to experience immersive, three-dimensional walkthroughs of properties, almost as if they were there in person.
Besides basically giving buyers the ability to teleport from property to property, VR accelerates the buying decision by eliminating the need to travel, helping buyers visualise their lives in each property from anywhere in the world.
Agents Be Gone
Born out of the need for economy and autonomy, an increasing number of homeowners across the world are opting for private sale real estate options, much like buyMyplace. The latest reports from the US show that a whopping 25% of vendors sold their homes independently or with minimal help from an agent.
With the average Australian real estate commission rate hovering at 2.41%, it comes as no surprise that Australian homeowners are following suit in an effort to regain control of their properties and cash in on agent commissions. With online platforms like buyMyplace, Australian vendors selling a property valued at $600,000 are looking at an average savings of over $18,000 (if they were to use buyMyplace’s Basic Campaign costing only $695).
Besides the obvious monetary benefit of selling their own homes, vendors feel that the motivations behind some real estate agent sales may not be in their best interest. With some agents pushing for the quickest sale possible, vendors who go at it alone are incentivised solely by trying to get the best price for their properties. Add that to the fact that they know their homes better than anyone else, why would they pay a premium when they can be their own real estate agent?
Before you barricade yourself in your home with scenes of iRobot flashing before your eyes, you need to know that Artificial Intelligence (AI) is already everywhere, including in real estate.
While AI may not seem to be a good fit for real estate at first glance, when you take into account the amount of data being collected by real estate sites and agents on a daily basis, AI starts to make more sense in this space. In real estate, making a sale means finding buyers exactly what they are looking for, AI makes this process a lot easier. By sifting through information at a rate unimaginable to the human mind, AI increases the relevance of property recommendations and searches, thus fast-tracking the entire buying process.
On top of that, there are already AI chat bots being used in this space to help with 24/7 customer support. AI bots have been used by many property portals to answer a myriad of ‘frequently asked questions’ without the need for human interaction. This means that buyers and vendors can have their enquiries answered in a matter of minutes at any time of the day.
The myth of millennials preferring avo toast over owning their own homes can finally be put to bed, as more and more of them enter the housing market. With even the youngest of this generation reaching their mid-twenties, it’s no surprise they’re getting ready to embark on the journey to buying their first homes.
This is great news for property vendors and investors like you, as this younger segment of home-buyers are more likely to opt for less expensive fixer uppers, and are more inclined to purchase properties in up-and-coming neighbourhoods.
Plus, as younger millennials are making the move into their first homes, older millennials are beginning to size up; selling their starter homes for bigger properties, as they begin to expand their families.
With so many millennials already in the property market, it comes as no surprise that they are turning to technology to both buy and sell real estate. From searching for property on websites like Realestate.com.au and Domain.com.au, to selling their homes using online players like buyMyplace, current millennial habits could be painting a picture of the what real estate is destined to become.