Technological growth has affected almost every industrial sector we could think of, and the commercial real estate sector isn’t any exception. Technology is gradually becoming the spine of the real estate sector with new advancements that have made real estate transactions super feasible and fast! Along with the budding startups, businesses, and renowned firms, brokers too are at a great advantage due to this. Due to the rise in property technology, i.e Proptech, a traditional form of brokerage is getting replaced by data-driven, systematic processes that are maintaining stability in the industry.
Proptech at a glance
- Proptech is a leading-edge approach to real estate in which technology optimizes the strategy of discovering, renting, buying, selling, and managing an asset through blockchain.
- Proptech is a cross-industry technology that aims to benefit all parties involved in the real estate sector.
- Proptech start-ups like PropReturns are attempting to create a better, more efficient, and transparent space for both investors and brokers.
Pain points of traditional realty
For many years, brokers had the authority over your data and personal documentation. Real estate brokers have been an integral part of the real estate sector. However, as a result of an uninformed approach to technology in every process, there were many risks prevailing for investors. Neglecting these factors led to many fraudulent situations like-- data getting misplaced/stolen, illegal documentation, fraud deals, etc. Traditional real estate has not overcome this backdrop. Let’s look into the pain points of traditional real estate processes-
Traditional real estate suffers from various pain points such as:
• Unaffordability (supply-constrained due to very less knowledge about the financial metrics of a property, the property with very less capital appreciation is still sold at a high price. Hence, a platform like PropReturns uses financial algorithms to detect accurate capital gain on the property and show its investors financial metrics for a clear understanding of the property’s potential.
• Manual, mind-numbing leasing, and transaction process. Complexity in transaction processing still exists! Property leasing needs a deep analysis, right from the quality of your tenants, to the lease terms of property, everything needs to be managed with deep attention. These all aspects are not available in traditional real estate processes.
• Lack of flexibility and exposure- Real estate investments need flexibility and exposure both. Flexibility with regards to finding out the apt property in terms of connectivity, basic facilities, and amenities. And exposure in terms of finding out new market trends, comparing the property potent, etc. In modern real estate processes, these factors are possible to analyze at ease. But in traditional real estate processes, you have to spend a lot of resources to do the same.
Why is it necessary for brokers?
- Selling assets demands brokers to be responsive and reduce turnaround for supplying critical information or sharing important documents. Realty brokers who want to compete with the market can now employ tech to assist them to upgrade their business and close deals on the go.
- Clients today expect a brisk and seamless experience from beginning to end along with having augmented search capabilities, crystal brokerage process, and flexibility at each stage. With the increase in demands, brokers are always on the look for reliable real estate technology that enhances their tool stacks and helps them to cater to those kinds of clients.
- Successful real estate brokers spend considerable time away from their office, and they require tools that would help them stay connected with their business together with being more productive.
- An adequate prop-tech platform will allow them to work not only efficiently and effectively, but also will enable a much greater association with their client base.
- Along with the ability to analyze proposal documents, record site visits, track property inquiries, view analytics, automate tasks, and assist through the whole lease cycle. It should also provide access to raw market data, track deals, and automate countless processes, which result would minimize errors, optimizing resources, reduce costs, and helping to create better client relationships.
The Bottom line
Technology should automate processes a person or organization already uses. Speed and efficiency are critical in today’s world, and to achieve a grip in this competitive environment one needs to keep adapting to new trends and technologies.