10.06.2019

Three technological trends to sell real estate

With creative models based on technology and applications, some startups are venturing to revolutionize the forms of real estate commercialization, both for the final customer and for the sales agents.

With creative models based on technology and applications, some startups are venturing to revolutionize the forms of real estate commercialization, both for the final customer and for the sales agents.

 

In this article, we will see some trends that incorporate technology in these processes and that begin to appear in the vanguard markets.

 

 

Hyper-local Approach

 

In real estate, it is very important to find the differentiator of the products and then exploit it in front of its target segment. The “hyper-localize” approach is interesting just because it avoids the generic in order to highlight, instead, the specific and precise advantages of the property and its location.

 

Liveby is a service that collects relevant data from the surrounding area of a property. Its system automatically curates and organizes information that helps the seller to position the properties on their websites, with better SEO content and interactive map functionalities with which the prospects can review the surrounding properties, as well as events, shops and schools in area.

 

Winner of an Inman Innovator Award in the field of technology applied to real estate, Kelle is a virtual assistant, similar to Siri but specialized in the sector, who facilitates the tasks of real estate agents, providing focused information on the neighborhood of properties of their portfolio, in addition to helping to follow up with their clients.

 

 

iBuyers: a Model Oriented to the Facility

 

The iBuying is an alternative that seeks to alleviate the headache that represents the commercialization of a real estate. If a seller wants to save the process of valuing, advertising and showing their property, you can use an iBuyer, like Opendoor, to obtain a valuation and an almost immediate offer, which can be accepted or rejected in a matter of days.

 

In general, the innovation of this model is that the seller receives a fair proposal according to the conditions and location of the property, while the iBuyer assumes the risk and wins thanks to the margin of commission in the purchase and its subsequent sale.

 

However, these systems are also not battling with the traditional side of the business. Some of them complement the information thrown by their algorithms with that of people familiar with the markets. In addition, they also offer special commissions for purchase and sale to real estate agents, which encourages them to collaborate and to take advantage of the benefits of the tool instead of feeling threatened by it. After all, according to data from the National Association of Realtors in the United States, 87 percent of people make real estate purchases with an agent or broker.

 

 

Accessible Housing

 

One of the biggest impediments to the sale is the limitations of the market, especially when it comes to a generational trend such as that of the millennials, whose purchasing power, levels of debt and consumption habits represent a challenge for the industry.

 

Given this scenario, small companies have created models to lower housing costs and offer more accessible alternatives to this segment.

 

For example, with a mix of contractors and machine learning, and with the slogan “As simple as renting. As powerful as owning”, Divvy helps prospects make their monthly installments payment for a future purchase, instead of payments for a simple income. Unlike a traditional lease or a mortgage, Divvy offers its clients more flexibility, with the power to choose any house for sale, obtain the exclusive right to buy it and even pay the down payment.

 

Others attack the problem of costs right from the construction moment. Katerra is a one-stop shop that seeks to lower costs by offering all services to build commercial and housing units, from design to construction and purchase of materials. It appeals to three differentiators: access to a global supply chain, manufacturing and transportation of panels and the use of technology to reimagine the entire construction process.

 

Finally, Factory OS is a California company that has learned from the difficulties of access to housing in the San Francisco Bay area to try to offer a solution to the high costs both in the locality and in the rest of the country. In Factory OS, they ensure that they build 40 percent faster and 20 percent cheaper multi-family homes, thanks to their model of completely manufacturing large modules from their facilities, then transporting and assembling them in their final place.

 

Whether increasing the relevance of the goods in their local markets, offering flexible schemes for the purchase, or addressing the problem of high costs, these proposals are the beginning of a fruitful relationship between technology and real estate that will result in a great benefit for the consumers and the different players in the industry.

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