Which Real Estate Tech Trends Will Dominate in 2020?

Which Real Estate Tech Trends Will Dominate in 2020?

Technology drives massive change in almost every industry or profession, including real estate. We’ve moved beyond information-based websites and apps that help sellers connect with interested buyers. From smart homes to big data, what new technological innovations can we expect in the coming year? Here are the top five real estate tech trends that will dominate in 2020.

iBuying

HomeLight's top agent insights survey from Q4 asked what tech trend would have the most significant impact on real estate in 2020. Over 25% of those agents who responded chose iBuying as the top trend.

iBuying is a real estate tech trend that’s actually a service. It connects homeowners who want to sell their property fast with well-capitalized real estate investment startups. The purchase is handled in cash, and typically, the tradeoff for the homeowner is a lower selling price. However, for owners who need to sell quickly for any reason — such as a new job in a different city or an unexpected financial crisis — it’s a tradeoff they’re willing to accept in exchange for the faster and simpler cash deal.

Examples of iBuyers include programs such as Knock, Redfin Now, and Zillow Instant Offers. These investment startups rely on automated valuation models (AVMs) to put together their offers quickly, with closings taking place just days after acceptance. Then these real estate investment businesses turn around and sell the home at a profit.

The lower selling price means that not every seller will want to explore these offers. However, for those who need to sell quickly, it’s a viable option that can provide relief from the pressure to sell. iBuying’s integration of AVM and other competitive technology means that it’s probably going to continue to grow as a tech trend for the foreseeable future.

The Internet of Thing and smart homes

As the Internet of Things (or IoT) becomes more ubiquitous, homeowners will increasingly take advantage of technology developments to create ever “smarter” homes. A network of devices, apps, and appliances that address concerns such as home security, lights, temperature, and even such critical systems as fire, smoke and CO detection appeals to owners and buyers.

Increasingly, these networked devices and appliances come with mobile apps that help owners monitor performance, safety, and other functions even when they’re not at home. It’s the ultimate in owner convenience.

Additionally, top real estate agents are more frequently using smart-home IoT-enabled technology as a selling point for on-the-market homes.

Big data for real estate

Business intelligence (BI) and analysis, fueled by an ever-increasing stream of data, is one of the most significant technological advances of the last few years. BI has become a common tech asset for companies in most fields and professions, and real estate is no exception.

The insights that BI software can cull from real-time data analysis can help real estate agencies and management companies alike optimize their operations and apps for better control and awareness of user decisions. Whether you want to better predict what your user will do next after viewing a listing on your app or improve your closing rate by figuring out why prospective buyers aren’t making offers, data and BI software can probably help. As the data stream continues to grow and BI dashboards continue to refine and improve their processes, more and more real estate operations will be impacted by big data and data analysis.

Closing sales online

Closing a home purchase takes a lot of time, as anyone who has ever participated in a closing can attest. The nearly endless series of printed legal documents and forms can intimidate even experienced real estate purchasers. Moreover, each of those forms and documents takes time to create, proofread, print and put together in the closing package, which takes time as well.

A digital closing platform can save time and trees. It reduces the paperwork and frustration inherent in traditional home closings. Integrating cloud technology anddigital security tools help increase the reliability of the platform, meaning that digital closing platforms will likely continue to be adopted across the country.