How Are FinTech And PropTech Changing The Real Estate Industry In 2018?

Buying a home in 2018 is much different than, say, 15-20 years ago. The antiquated ways of the real estate market have paved the way for proptechand its experience-based applications. It is now possible for a buyer to purchase a home without ever leaving their couch by using a wide array of online tools to view and assess the property of their dreams in one sitting.

Adding to the accessibility is the use of fintech on the finance side to push home loans through and make it easier than ever for a buyer to get financing and interface with their lender. The two technologies are making the process of buying a home more intuitive and convenient.

To see how these technologies will weave their way into the real estate market, 10 members of Forbes Real Estate Council share their own views on how FinTech and PropTech developments are altering the way you do business this year.

1. Endless Implications And Possibilities

The most interesting part of fintech and proptech are the endless possibilities of what can be done with data to improve building operations. The implications of this potential are still at the earliest stages of being formed, but once everything in the workplace becomes measured and controllable, all aspects of the user experience will eventually be personalized and optimized. - Christopher Kelly, Convene

2. Ability To Reach New Investors Online

The ability to raise capital online and reach new accredited investors through online portals is still in its infancy. We'll explore ways to use fintech in 2018 to supplement traditional means of fundraising and to further differentiate ourselves in a crowded space. Those groups who embrace non-traditional means of operating and gathering data will be rewarded in due time. - Brian Milovich, Calvera Partners

3. Blockchain Implementation And Big Data

The biggest thing in fintech is blockchain. Real estate is a notoriously and annoyingly imperfect market. Transaction costs are too high, they take too long and it's only a matter of time before blockchain will be the next step. The biggest story in proptech is data. Internet of things and big data have reached real estate and owners with big portfolios are ready, willing and able to take advantage. - Michael Harris, CREModels

4. Efficiencies For Generating Comps

Utilizing new technologies, commercial real estate professionals can automatically obtain the most relevant comparable properties based on their percent similarity to the subject property factoring for year built, number of units, amenities and proximity. This saves hours and hours of tedious work calling individual properties. - Susan Tjarksen, KIG CRE LLC

5. Data Analysis To Drive Investment Decisions

Really use data analysis to drive your investment decisions, don’t just look at the headlines. Too many people read things like “25 Cities Where Millennials Are Moving” and formulate investment hypotheses based on broad generalizations. Utilize big data and predictive analytics to dig into what is responsible for the migration of renters, and what those renters are seeking in their new apartment. - Marc Rutzen, Enodo Inc

6. Greater Efficiency And Alignment

A truly transformative proptech movement is underway. Smart buildings are a huge driver in this movement. With the development of blockchain technology, real estate is quickly evolving into a more liquid asset class which will have a huge impact on the way we develop and invest in real estate. - Garratt Hasenstab, The Mountain Life Companies™

7. Reduced Friction In Buying, Owning And Selling

We are constantly pushing to incorporate or develop technologies to improve our business and customer experience by reducing cost, friction and time, as well as improve transparency and security. Some of these we develop ourselves, like application of machine learning and AI to develop a national neighborhood rating system. Others we adopt, like animated 3D visualization software. - Gary Beasley, Roofstock

8. Adaptability To New Technologies

The evolution of PropTech is creating powerful conversations, forcing us to focus on the unique value and competitive advantages we offer. It's pushing us to strengthen our commitment to our partners and real estate advisers so that they can create unforgettable experiences for their clients. As for FinTech , it's all about educating our network. Cryptocurrency is impacting real estate and we have to adapt. - Anthony Hitt, Engel & Völkers Americas

9. A More Accessible Real Estate Market

FinTech and PropTech are making real estate faster and more accessible. AI and data-driven recommendations are turning real estate investing more similar to investing in stocks. In PropTech, data and automation are now built into the operational parts of real estate. It’s easier than ever to make a buying decision and monitor your investment’s performance, all from the comfort of your couch. Chuck Hattemer, Onerent

10. Streamlined Processes

As the world of FinTech and PropTech developments continues to grow, I see the increased ability for streamlining what were previously time-consuming processes and becoming more efficient. I also see the ability to utilise less outside help, as tech begins to replace the need for a lot of costly labor. -Sarnen Steinbarth, TurboTenant

Original Article by: Forbes Real Estate Council

Read the full article:
https://www.forbes.com/sites/forbesrealestatecouncil/2018/02/28/how-are-fintech-and-proptech-changing-the-real-estate-industry-in-2018/#4d736e6a6617