Are you a buyer planning to buy a home 20 years from now? You are obviously curious about what will happen to the real estate market. A recent Oxford report on Artificial Intelligence(AI) predicts there is a 97-99% probability that AI will make the work of real estate agents redundant. It's no secret that real estate will be a technology-driven industry in the next decade. Either we can cry over the huge change or we can adapt to the new technologies. No one’s crying that smartphones made landline telephones obsolete-technology made communication around the world much easier.

We have seen how uber has revolutionized the personal transportation industry, how Airbnb has impacted the hospitality industry, what Delivery Hero did to the food industry. Similarly, Real Estate is no longer plodding on its 20th-century working model. Technology and innovation have started to disrupt this industry and in 20 years you will be able to see the change. Here are a few things you need to be ready for.

Technology-driven industry:

Trends were constantly shifting to e-commerce but thanks to the Covid-19 pandemic which accelerated the shift by 5 years. We never imagined that a lifelong investment would be on a click of a button. 

The next change expected is, Agents will have a minimized role mainly centered around paperwork and a revolutionary business model will be created that completely redefines the acquisition and management of the real estate from the ground up. Driven by technical developments in logistics, AI, and data science, it would be possible to scale boots-on-the-ground operations in real estate with comprehensive back-office systems.

It is also predicted that the agents might be able to survive this disruption. Above 70% of the millennial still consider hiring a real estate professional a wise decision. They expect them to be their trusted advisors. Also, there is a purposeful proliferation of the traditional ways of working in the market to intercept the exiting of agents.

Agents out of business:

The agent-client relationship that all are aware of will be gone. His value would be simply his experience, market knowledge, and connections worth sharing in Facebook groups that truly serve as a mentor. There will be no hassle of market research, visiting one home to another, and stressing over the loan approvals. Homebuyers with credible history will be receiving mortgage approvals over their smartphones. The stats show that 84% of all the homes sold between 2014-2015 were sold with a reduced commission. The agent’s income has seemed to drop by 15% and they are expected to drop further making agents disappear. A study at Oxford University did a study on how would the future turn out for different careers and it showed that realtors have a 97% chance of elimination within the next 10 years. 78% of all the agents are already out of business in the last 5 years. The future of real estate agents is expected to become a niche profession similar to that of the travel agents.

Virtual Reality:

Virtual reality(VR) has built the gaming experience with interactive real-world elements creating an aspect of attraction for the gamers. That element would be applied to the Real Estate industry. It would be much easier to see homes than it is now, with the opportunity to see the whole house, every corner, without having to see it physically. VR can go much further than ""walk through"" a home, open closets, and cupboards, etc. interactively. It will let customers see what the light looks like at various times of day and year, and by superimposing furniture, sculpture, or even home repairs.

Auctions:

For all sorts of the auction, whether it’s a rent auction or a house auction, a platform will be created where the landlords and homeowners will upload their property details and tenants will bid on the price or rent. The resulting rent will be the final market rent rather than the landlord’s demand. The collection of rentals will also be fully automated. Platforms like Spark Rental, are about to introduce a program for high-risk tenants that directly deduct the rent from the renter's paycheck. They will be providing a platform for low-risk renters where renters can pay their rent by credit card or bank transfer, and set up automatic monthly payments. They will also report to the credit bureaus the rent payments.

Blockchain technology:

Blockchain is a relatively new database type that has become the trendy solution for more secure storage of digital information. Simply defined as a technology that records the provenance of the digital asset. The concept is that it can monitor transaction history safely and transparently. It's the best solution for public documents, such as real estate transactions. Even lease history could be tracked, with more privacy just to keep accurate records for landlords. The main purpose is to check the documenting history nothing else. A recent survey by Brickvest, which showed that about 56% of real estate investors are expecting blockchain a dominant tool for monitoring and tracking real estate transactions including payments and title history.

Technology is halfway there, just as it did to others, to transform the real estate industry. Be prepared to adapt to the change. Your work today may not be there in 10 years and your work now might not be available in 10 years. Visit Dealty if you are searching for an advanced real estate website. Not only can it assist you in locating the listings in your desired neighborhood, but also you can schedule the house's virtual visit.