Is PropTech the Future of Buying and Selling Real Estate?

Technology has revolutionized the ways in which we live our lives. From socialization to transportation, everything has become more streamlined as it has become more advanced.

Some industries have taken a bit longer to fully embrace the advent of tech. Real estate, for example, is far more complicated and carries much higher stakes than buying or selling a TV.

However, even these exceptions are gradually giving way to the rule. PropTech, or technology that contributes to the digital transformation of the real estate industry, has reached a point where it is no longer a novelty, but a commonly accepted norm.

Some PropTech has been in use for quite some time and contributed heavily to the shifting landscape of home buying and selling. Tools such as drone footage, virtual tours, augmented reality, and online listings have played major roles in changing the way in which we approach and think about real estate.

Now, the next step — the final piece of the puzzle is gaining legitimate traction. More and more, the buying and selling of real estate are occurring entirely online.

To understand how this is possible, we must first dive into the resources that make it a realistic alternative to traditional buying and selling, then take a closer look at the platforms responsible for bringing this method of real estate transaction to the mainstream.

How is it Possible?

The tools mentioned above, specifically those that make finding, touring, and otherwise searching for a home possible even from afar, are obvious facilitators of the future of tech-centric real estate. Without those resources, people would be left to buy homes based solely on description, or sight-unseen.

Those resources are integral to the process, of course, but without the more technical structures in place — hosting sites, online document signing, financial transactions, and so on — they would be worth very little.

In other words, PropTech involves two distinct parts that function together harmoniously as a whole. Right now, we want to focus on the newer technology — the more technical details that facilitate the actual real estate transactions.

Tools such as listing sites, e-signing services, and investor pooling are helping completely digitize the home buying and selling processes. This creates opportunities for buyers and sellers alike to approach the process with confidence themselves or employ the help of an agent or similar service.

To summarize, the primary PropTech resources involved in transitioning real estate transactions to the digital world are:

• Visualization technologies, such as drone footage, virtual tools, and augmented reality
• Hosting sites that allow both buyers and sellers to access the entire market without the need for clunky (and expensive) traditional methods
• Online services that facilitate the signing of documents and transfer of funds
• Resource pooling that provides investors with more opportunities to generate the necessary funds (much like crowdsourcing)

The possibilities are leveling the playing field, making real estate more accessible, and reducing the headaches associated with real estate transactions by streamlining all of the processes into a convenient online experience.

Platforms to Know

With the boom of PropTech in full swing with no signs of slowing down, a number of innovative platforms have popped up to aid in and capitalize on the transition of real estate to a more digital age.

Many of these platforms are probably familiar to you, especially listing sites such as Realtor.com, Trulia, and Zillow. Others, such as Knock — which offers what they call a Home Swap — and Opendoor — which provides instant offers — have taken different approaches to revolutionizing the industry.

Then, there are platforms dedicated to facilitating the seamless exchange of information, including contracts, legal documents, and mortgage paperwork. DocuSign, Notarize, and Rocket Mortgage are fantastic examples of industry leaders in these specializations.

There are, of course, a number of other PropTechs that are actively facilitating this transformation of real estate. It’s an exciting time to be in both real estate and technology fields, as the trends that have led to this point are projected to continue paving the way to new and better ways of approaching home buying and selling.