The world around us is constantly evolving thanks to technology. Instead of working in offices, many people can now work from the comfort of their homes thanks to internet programs like Zoom. Instead of battling crowds at the mall to buy the latest trends, we can buy whatever we want with the click of a button. Anything from dinner to a car thanks to streamlining technology into our everyday necessities to now home buying has joined this technology revolution, and we are all here for it.
Millennials and Gen-Z are quickly becoming the main players in real estate transactions, meaning that the real estate industry’s use of technology will likely be shaken up. The entire process of buying a home, from the way we search for homes for sale to how we pay for them, could change thanks to modern technology. Let’s look at some of the modern technology that can impact the future of the housing market.
Real Estate Tech Will Make Showings Easier
The most recent data shows that 97% of homebuyers begin their home search online in one way or another. According to the NAR “Younger Boomers and all of those younger place the highest value on Photos, while Older Boomers and the Silent Generation valued detailed info about properties for sale the most.” Photos and virtual tours into features of most value when house hunting. Homebuyers did not have this ability 10-15 years ago, and it has changed the way real estate is conducted.
Now, with growing attention in the market, there is not always time to coordinate showings. Having an agent does a virtual showing is a way to allow buyers to decide on putting in an offer on a home when there is not a lot of time to spare. A virtual showing can be easily done via facetime or zoom and is the next best thing to seeing a home in person. The client is able to ask questions in real-time and get an idea of the layout and feel of the home while watching on their phone or computer anywhere in the world. Realtors are already reporting that they have been helping more and more clients purchase homes sight unseen thanks to virtual showings and virtual open houses. Many professionals assume that this will become even more prevalent as real estate tech improves.
Listing agents are taking the virtual showing into their own hands and have begun putting together 3-D virtual tours. The real estate agent will use a type of real estate tech called 3-D technology to allow the house hunters to “walk through” the house on their mobile devices. The listing agent can post this on their website and other real estate listing sites like Zillow or Redfin. This is a really convenient way for potential buyers to search for a home, and also a great marketing tool for the listing agent. Homebuyers could decide to purchase a home based on what the 3-D tour shows them, potentially putting the listing agent in a situation where they represent both the buyer and seller. Technology has recently been an efficient factor in easing real estate transactions by saving time money, but the technology within the properties introducing Smart Homes is also a form of technology and real estate mixing.
Technology Will Be At Top Of A Buyer’s Wish List
Smartphone, smart car, and now smart home?? Yes! about 65% of home buyers have indicated that they are willing to spend more money on a home with modern technology features. This is important to take note of in case the housing market shifts and sellers need to be able to set themselves apart from each other to get their homes sold. In 2021 the global smart home was at $90.59 billion and expected to be $175.83 billion by 2026 having a CAGR of 14.11% according to Businesswire. In other words, let's get smart!
Even now, in this overwhelming seller’s market, one of the biggest real estate trends at the moment is the smart home. Real estate agents have noticed that buyers want homes with upgraded technology. Buyers want features that will make their homes safer and make their life easier. Buyers want a move-in ready home with smart appliances in the kitchen and laundry room. They are also looking for a smart security system, like Ring, that can be controlled through an app and accessed anywhere. Most importantly, they already want all of this installed when they move in so that they don’t have to do it themselves.
Modern Technology Can Increase The Home’s Value
In the past, real estate agents have recommended sellers upgrade home features like kitchen countertops or add a fresh coat of paint to make a home more desirable and increase its home value. Now, upgrading to smart technology is recommended since it can increase a home’s value by at least 5%. As smart systems become more commonly used, that number will likely increase.
In the end… tech stays
In the past few years, we have seen the venture of technology and real estate more and more relevant. Not only have we thought made our homes safer and connected to fit our needs, but we have rethought the whole home landscape. We can use connected tools and other devices to incorporate to update the functionality of a home in today's age. We have seen that the smart home market is growing and so will the options of different tech features being included in our homes. As house buying and the housing standard are shifting to technology it is crucial to always keep an eye out for new products to help make our lives easier and more convenient.