Investors in real estate use different strategies. Every investor has his or her way of going about the real estate business. While some opt for technology, others prefer personal relationships. For a smart investment property professional, it is essential to figure out how to utilize both strategies, that is, focusing on creating personal relationships and adopting technologies. Combining the two methods will create a successful investment property business venture.
For many professionals venturing into the real estate business, their primary focus is on how they can advance the use of technologies. However, there are many leading investment property companies, young entrepreneurs, and gurus in this business who view the use of technology as just another method or tool. Therefore, the question lingers on the best strategy to be used, especially to be successful in the next decade. Should technology be the primary strategy? Should investors put more effort in the creation of customer relationships? Perhaps the best way is a combination of the two approaches.
Technology is increasingly becoming a part of the real estate industry. There are several advancements in technology that have been incorporated in this industry.
Drones, though controversial, have become part of the mainstream property investment applications. Some of the areas in which they have been used include: conducting virtual tours, producing high-quality photography work, and being part of property management.
Big data is a critical aspect of the digital world. Investors are looking for information in the real estate industry, for example, special warranty deeds, financing options, foreclosures, must sell, and general investment opportunities. Big data is useful for targeted marketing and how to generate profits better.
Curation helps in refining information, which is critical in the real estate industry. It is a popular trend, though facing challenges as a result of the existence of more significant trends and the aspect of originality.
Crowd-funding is a method of financing so that real estate investors can buy and sell investment properties. This method has helped break the traditional way of lending for homeownership and has removed reliance on banks.
One of the aspects that have not benefited a lot from the technology is home search. Most of the portals have not revolutionized much, and therefore, a lot of real estate start-ups have not found home search engines useful. Data shows that websites than home searches mostly serve investors looking to own homes, buy and sell properties.
A website remains a go-to internet page when real estate investors are looking for information, for example, traditional financing, foreclosure, short-sale, distressed properties, and cash buyers. The websites have changed over time, especially in the areas of functionality and aesthetics. One of the related technologies in the website is HTML 5, which is not only highly responsive but focuses on quality content.
Another relevant technological component in the real estate industry is augmented reality (AR). Together with the use of interactive ads, AR has become an attractive technology in outdoor and print advertising. Also, Google Glass is used by real estate companies on the streets as forms of coaching team members and agents in real-time. Additionally, technology has helped improve and create green building efforts.
From the foregoing discussion, technology cannot be ignored in the investment property industry, mainly because it has made the business aspect of the industry good and easier for the investors, the companies, and the agents. If technology is used properly, it can help facilitate the growth of business in real estate. However, much as technology is seemingly a must use in this industry, the idea of personal connections and offline relationships remains critical.
An investment property company and an agent must decide what is good for the business. Importantly, the decision must be based on what the participants in this industry value most.
Critically, while the use of technology enhances efficiency and improves the work of home buyers and sellers, and help in driving profits and return on investment up, it should not replace personal relationships or connections with customers. This is especially when the nature of business is long-term; an investor has to create a network of customers for future business growth. For example, referrals are essential drivers of the real estate industry and can only be enhanced through real interactions.
The building of relationships in the property investment industry can be understood from the concept of a new form of ‘brick and mortar storefront.’ Traditionally, this concept involved face-to-face interactions that happen when a customer comes to a store. The new form of this concept is when the building of customer relationships takes time. Overall, in any method used, the focus is on improving the business and taking care of the needs of customers so that they can be maintained and attracted to come again. This can include the use of technological forms, for example, building a website where customers can sample properties so that they can buy and sell their homes.
The new forms of technology have bridged the gap between online and offline businesses. From such an understanding, technology can be seen as a new form of creating personal relationships with customers. Therefore, for the real estate industry, the use of the latest forms of technology could perhaps be the best direction that participants in this industry should adopt. This will take the way of meeting customers and clients in their particular locations and interacting with them through multiple methods or channels. The outcome will be high-quality products and services and efficiency.