In 2022, a study revealed that over 50% of home buyers found their homes through online searches, with 80% finalising the purchase after only a virtual tour. These statistics suggest that the real estate industry in Canada and globally is entering a new phase of property buying and selling, known as PropTech.
But what exactly is this buzz word, and how is it transforming the Canadian real estate industry? Is this change necessary, and what benefits does it bring to buyers and sellers alike?
These are the questions that this blog aims to answer today. So hold tight as we delve into the world of PropTech and its impact on the Canadian real estate industry, discussing its benefits and prospects.
What is PropTech?
The term "Property Technology," or "PropTech" for short, describes how modern technology is being applied to the traditional real estate business. Software, hardware, and other technological solutions are created and implemented to facilitate and improve real estate administration, sales, leasing, rentals, and building.
The term refers to various tools, such as real estate investment platforms, innovative home technology, virtual and augmented reality tours of properties, blockchain-based property transactions, and more. In recent years, PropTech has emerged as a rapidly growing industry with significant investment and entrepreneurial activity. As the world becomes more digitised, PropTech is expected to play an increasingly important role in shaping the future of the real estate industry.
Some functioning examples of PropTech
1. The Canadian Home
The Canadian Home is gaining popularity in the Canadian real estate market due to the wide variety of services and systems it offers to its customers in order to improve the overall house buying and selling experience for them. For instance, you can use their built-in chat feature to have ad hoc conversations with estate professionals, they store data on properties for as long as 20 years, and their digital calculators make it simpler to figure out things like mortgage payments and property values.
2. Zillow
Zillow is an online real estate marketplace that provides buyers, sellers, and renters with a wealth of data and information about properties. The platform uses machine learning algorithms to provide automated property valuations and also offers tools for virtual home tours.
3. Opendoor
OpenDoor is an online real estate platform that allows homeowners to sell their homes quickly and easily without going through the traditional process of listing their homes with a real estate agent. OpenDoor uses machine learning algorithms to provide sellers with an instant offer on their homes and offers tools for virtual home tours and online transactions.
PropTech for buyers
1. Increased transparency
Buyers can access a plethora of property-related data and information via PropTech platforms. This includes, but is not limited to, property histories, pricing trends, and area statistics. Buyers benefit from this increased openness because they can make more educated choices about the properties they are considering.
2. Better efficiency
Buyers who don't have the time or money to travel to different properties can still find the information they need on PropTech sites, which increases accessibility. With the help of virtual visits and digital transactions, out-of-town buyers may find it simpler to acquire real estate.
3. Personalisation
With the help of data analytics and machine learning algorithms, PropTech platforms can tailor their suggestions to each buyer's tastes, financial constraints, and desired geographic area. Buyers can benefit from this as they narrow down their search for a home by identifying features that are important to them.
Proptech for sellers
1. Increased exposure
To attract a broader range of prospective buyers, PropTech platforms offer several digital advertising tools for real estate agents and homeowners. Property listings are made more widely accessible through these platforms because they are posted on online marketplaces. In addition, they provide sophisticated data analytics that can be used to zero in on ideal customers and fine-tune advertising efforts. By doing so, real estate agents and homeowners can increase the number of serious prospects interested in their properties and shorten the time it takes to close a transaction. Buyers can take virtual walks of properties without leaving the comfort of their homes, thanks to these platforms.
2. Better communication
PropTech has revolutionised how sellers communicate and connect with their agents and potential buyers. With the help of advanced tools such as instant messaging, video conferencing, and document exchange, communication has become easier and more efficient than ever before. This streamlined approach ensures that all parties are well-informed and on the same page throughout the process, enabling sellers to stay up-to-date with every step of the transaction.
3. Cost reductions
These platforms can help sellers save money by eliminating some of the costs associated with conventional real estate transactions, such as commission fees and marketing expenses. The sellers can realise these savings in the form of lower overall transaction costs. Because of this, sellers have a better opportunity to maximise their profits and get the most out of their expenditures.
The future of PropTech
Exciting times lie ahead for the real estate business thanks to PropTech's promising future. As more real estate firms embrace technology and more investors pour money into the field, this industry is anticipated to continue its rapid growth. It is anticipated that the use of AI and ML in PropTech will increase as businesses seek to better assist buyers and sellers in valuing and purchasing real estate and streamline and personalise the administration of these assets.
Virtual and augmented reality has already begun to be integrated into PropTech by some real estate companies, allowing prospective buyers to explore and even modify homes in fully immersive digital worlds. We also have PropTech, which combines blockchain technology, which is quickly becoming the standard, with the potential to revolutionise the real estate industry by simplifying property transactions, lowering fraud rates, and boosting transparency.
The future is looking better than ever, as technology is expected to play an ever-increasing role in making the real estate business more efficient, accessible, and sustainable.
Conclusion
By improving transparency, streamlining deals, and maximising results, PropTech is revolutionising the real estate market. Real estate's prospects look brighter with PropTech's help as technology advances, and more businesses adopt innovation. Increased efficiency, openness, and accessibility are just a few of the many ways PropTech can help homebuyers, sellers, and investors. By adopting these innovative platforms, we can liberate real estate's full potential and make it more environmentally friendly, socially just, and convenient.
