Since the time of the pyramids, real estate has been a constant economic factor. However, because of its venerable nature, it can be slow to adapt to changing times.
The pandemic created a one-of-a-kind push that catapulted the real estate industry into the twenty-first century.
Here are a few lessons that maybe other business sectors can learn from, like how the real estate industry has adapted to the modern world in recent years, ranging from tokenization to remote technology and beyond!
Tokenized Real Estate Investments
Real estate has always had a high entry barrier. Individual home buyers must commit to long-term 30-year mortgages. The cost of purchasing, repairing, and maintaining investment properties is high.
Commercial real estate is not only costly. It is accompanied by substantial additional environmental, appraisal, survey, and loan origination fees.
For a long time, the cost of initial real estate investments has been a concern for smaller investors. However, because of tokenized real estate, the walls have begun to fall.
Companies such as RedSwan have developed digital real estate alternatives, effectively creating a real estate blockchain.
This allows investors to purchase direct shares of commercial real estate while maintaining ownership of the property.
Virtual Home Tours
The introduction of virtual home tours was one of the most basic yet profound changes in the real estate industry. It can be time-consuming and difficult to physically visit a property.
If someone wishes to view a listing that is too far away, they must frequently rely on pictures and images, which can be misleading.
Virtual home tours allow potential buyers to look at a piece of property no matter where in the world it’s located. As long as they have an internet connection, they can access interactive video formats that help them investigate a house or building in intimate 3-D detail.
In the pandemic era, companies must demonstrate that they care about consumer safety. One important way the real estate industry is accomplishing this is by encouraging contactless interactions.
This begins with virtual tours and has spread to other aspects of the property buying process.
For example, many red-tape activities, such as setting up insurance and escrow services, can be completed entirely online. Mercury Insurance’s collaboration with the A.I. brand Flyreel is one example of this.
The two companies collaborated to develop a contactless home inspection app. This reduces health risks by eliminating the need for unnecessary in-person home visits during the purchase process.
The real estate industry is undergoing a long-overdue transformation. Other industries should sit up and take notice as it adapts to the times.
Modern technology provides numerous benefits to every industry. Waiting until you are forced to adopt them will only put you further behind the competition!