In today’s world, there are a lot of zero-sum games – winners and losers; those that benefit, and those that miss out.
Thankfully for those of us working in the world of PropTech (and I say thankfully because I personally prefer a situation in which everyone wins), the technology solutions coming out of this industry bring tangible benefits to all stakeholders in the real estate market – buyers, investors, developers, agents, and property managers alike.
If you fall into one (or more) of those categories, chances are there’s a PropTech service that can make your job more profitable and more productive.
For years, the world of development has been much like the worlds of finance and business -- longevity was all it took to lead the field. And while there is no doubt that experience is still an essential element for success, it's also true that, in present day, it is the developers who can leverage the massive amounts of information and real-time data to make more purposeful decisions who will come out on top. Companies must combine knowledge with nimbleness for a more robust approach.
PropTech enables access to software and platforms that make it possible to extract enormous amounts of data, manage the construction process with greater control, and create well-maintained and more energy-efficient buildings. The end result? A higher return on investment.
PropTech Solutions for Developers
Leveraging a variety of technologies including AI, 3D printing, robotics, and more, construction management software is the single-most influential PropTech solution available to developers today. Companies like Buildertrend, Procore, and RedTeam are dramatically accelerating the construction process, making it easier than ever to coordinate teams, manage equipment and materials, stay on budget, and ensure quality, all for a better final product and more efficient process throughout.
Brokers and Agents
Looking at the other side of the industry, let's examine the stakeholders selling real estate -- the brokers and agents that move millions, even billions of dollars of product each year. Digital PropTech solutions help to expedite the day-to-day work of this group, meaning brokers and agents can now work faster and more efficiently than ever before, reaching a bigger market and helping more purchasers achieve their dream of home ownership.
Technology has enormous potential in the world of brokers and agents, where automation can help streamline the multiple operations (lead generation, email marketing, negotiations, market analysis, contract execution, etc.) required to successfully sell a product or project. According to tech company Uptech, 35% of real estate agencies are considering automation, while 61% already rely on automation in their daily work. Time saving, improved organization, and higher levels of customer satisfaction are just some of the results.
PropTech Solutions for Brokers and Agents
The number of digital solutions aimed at brokers and agents can be dizzying, but some of the ones rising to the top are Dotloop and Brokermint (both of which streamline real estate transactions) and Pipedrive, Zillow Premier Agent CRM, Monday, and Zoho (which offer tech-focused solutions to CRM).
These PropTech offerings are the difference between good agents and great agents – between generally satisfied customers, and customers that will be raving about their amazing experience to their network. PropTech lays the foundation for a better, more trusting relationship, helping brokers and agents close more deals than ever before.
When FinTech and PropTech collide, the possibilities are endless. Financial services have traditionally been resistant to change, relying on outdated solutions that compromise efficiency for "the way it's always been done." But the introduction of FinTech makes financial decisions in real estate smarter, faster and more profitable than ever before. Processes become more transparent. Data is managed more efficiently. Decision-making is empowered. The result is reduced friction in the transactions of real estate assets -- in other words, better and easier sales.
PropTech Solutions for Lenders
One obvious example of a PropTech solution for lenders is FinTech software that allows a quick analysis of a borrower’s creditworthiness, empowering faster mortgages and loans. A process that would typically take weeks (for application, underwriting, and closing) can be moved online -- using credit reporting platforms, loan origination systems, and automated underwriting systems -- reducing the time to approve a home loan to under an hour. Conversely, buyers can also leverage big data and AI through iBuyer platforms like Opendoor and Offerpad, which use automated valuation models that take hundreds of different factors into account, allowing them to make a quick and well-informed offer on a property – in a matter of seconds.
In the end, PropTech sets up the entire real estate industry for a win-win – great news, no matter what side of the table you’re on.
This article was produced in partnership with STOREYS Custom Studio.