SharePublished in The Morning Call (Allentown, PA)
Buying a home in the physical world today typically starts in the virtual world.
Home shoppers can use their smartphones to set digital filters on price, location, number of bedrooms and baths and more. They can instantly scroll through multiple images of a home's interior and exterior. They can map out the commute from a new home down to the minute. And they can arrange pre-approval for financing in just a few taps.
Sellers have never had better information on setting an asking price for their home. Details about comparable properties are more accessible, as are projections about the value of features such as proximity to parks, transportation, dining and shopping.
In other words, technology has transformed home buying and selling from a quintessentially tangible transaction into one that largely happens in the realm of ones and zeros. And according to a recent National Association of Realtors survey, we're just scratching the surface of what's possible.
Last year, the tools transforming real estate were relatively modest: eSignature technology, digital lockboxes and transaction management systems. These innovations streamlined processes and reduced paperwork.
But the real showstoppers are waiting in the wings: supercomputers that can process huge amounts of data, artificial intelligence, even drones.
Consider advancements in data-processing speed, which enable truly immersive virtual home tours. Potential buyers can now "walk through" properties from anywhere in the world. This technology is a game-changer for out-of-state or international buyers, making long-distance home purchases more feasible and reducing the need for multiple in-person visits.
Want to know which furniture to take with you - and which to leave behind? Light detection and ranging imaging technology can show you how your current sofa and accent chairs will fit in your new living room.
Meanwhile, drones can go where no home inspector has gone before. Equipped with thermal and other imaging cameras, they can detect energy inefficiencies in homes and help buyers understand potential renovation needs before making an offer. In rural areas, drones can survey large parcels of land quickly and efficiently, providing detailed information about property boundaries, topography, soil quality and runoff.
Perhaps the most intriguing development is the growing role of artificial intelligence in real estate. The aforementioned National Association of Realtors survey reveals that 28% of Realtors are already using AI and machine learning. These technologies can analyze vast amounts of data to predict market trends, estimate home values with increasing accuracy and even suggest the best times to buy or sell in a particular area.
Buyers can take advantage of personalized property recommendations and insights into market trends that were previously accessible only to industry insiders. Soon, your AI assistant may be able to analyze your financial situation, lifestyle preferences, and long-term goals to suggest not just which homes you might like but which ones represent the best investment for your future.
Like all tech-based revolutions, of course, this one brings new risk as well. As transactions move online, the industry has become a prime target for cybercriminals. More than 13,000 people were victims of wire fraud in the rental and real estate sector in 2020, according to the FBI.
The consequences can be dire. In 2022, the average loss per wire fraud case soared to $106,557 - often a homebuyer's entire life savings.
Data privacy concerns loom large, too. The digital divide threatens to widen as the pace of change quickens. Algorithmic bias could skew home valuations and lending decisions.
Indeed, the American dream of homeownership needs safeguarding from malicious clicks. That's where real-life real estate agents come in: part tech guru, part data analyst, part mission planner, part security pro.
Nearly half of Realtors are interested in upskilling in current tech tools; one-third are interested in delving into emerging technologies. They're no longer gatekeepers of information but skilled interpreters of complex data landscapes.
In the new world of real estate, the American dream has gotten a digital upgrade. Technology isn't replacing but rather enhancing the human touch - and ensuring that the path to homeownership is clearer, smoother and more accessible than ever before.
Dan Weisman is director of innovation strategy within the Strategic Business, Innovation & Technology group at the National Association of REALTORS.
