The Digitalization of the Real Estate Industry: Is Tech Taking Over?By Liz Dominguez
The world of real estate is shifting. Is technology taking hold of an industry that was traditionally all about in-person interactions?
Relative to other occupations, real estate careers are low on the list of digitalization. According to a new report from the Brookings Institution, Digitalization and the American Workforce, real estate, including the rental and leasing segments, scored a 45 mean digital score in 2016. Scores range between 0 and 100, with those over 60 considered high digital occupations. But since 2002, the industry has made strides, with its score increasing by 19 points, up from 26. While clients are still at the heart of the transaction for the majority of brokerages, other segments of the business have dramatically changed from just a few years ago. The digitalization of the industry is slowly progressing, and brokers and agents have different things to say about the benefits, challenges, opportunities and how to best adapt to a world run by tech. RISMedia spoke to two industry experts to gauge what their experience has been thus far, and where they see real estate tech going in the future. Human at Heart While viewpoints are mixed, they all share one similarity: Real estate will always need the human touch. "Tech-savvy people are still choosing to work with REALTORS® and even pay a traditional commission amount," says Dustin Cheatham, a REALTOR® based in Chico, Calif. "The No. 1 reason is because this job is so complex. Homeowners' lives are too busy to try to do a REALTORS®' job better and more successfully and save a commission." Cheatham says agents can save clients from being taken advantage of and "save them from a failed transaction," and that's why they're worth the commission. Cheryl Eidinger-Taylor, a brokerage executive in Massachusetts, has seen a huge focus on the digital in recent years. Some of these tech-driven tasks include:
"There are still many things that the consumer wishes to do in person, so while digitalization has streamlined many aspects of the process, it has not taken away the decision-making pieces that remain, for most consumers, a personal experience," says Eidinger-Taylor. "For the typical home-buying consumer, viewing homes would be one of those things that is still preferably done live and in person." Is Digital the New Way? All of this doesn't mean that other parts of the business haven't benefitted from a technology takeover, however. Eidinger-Taylor says she's seen a shift toward the digital approach, especially to keep up with the busy lifestyles of today's consumers. "One example of this is the signing of an offer or the initialing of the changes in a negotiated offer," she says. "This no longer requires a sit-down in person, or two people driving to meet by the side of the road for initials." Cheatham's brokerage has also embraced the digital. He says his brokerage has "fully integrated into the digital space." "We're on social media, consumer websites, follow-up campaigns with clients," says Cheatham. But he maintains that clients need a lot of non-digital help too. "All the tech is wonderful when it saves time and we love that!" says Cheatham. But when it comes to things like consultations, he says actions like "looking with our eyes, doing things with our hands like changing out a door handle, rearranging some furniture for better service," and more, is done "in an efficient way with human power." Liz Dominguez is RISMedia's associate content editor. Email her your real estate news ideas at ldominguez@rismedia.com. |
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