A growing hunger for everything to be connected to the web is having unexpected consequences for a range of industries. The real estate industry is no exception. Known as the Internet of Things (IoT), this is the phrase that heralds the next wave of technology. It’s not just a physical change, though, it’s a mind-set. It’s the idea that anyone and everyone should be connected to the web at all times.
Over the next decade, technological interfaces will be woven into practically everything. Computers will no longer be separate things, which is something the next generation is going to see as the norm.
How does this apply to real estate, you ask?
The truth is that it has yet to gain any significant traction in real estate. But IoT is at an early stage and the potential for disruption is huge. Real estate is set to change, and it could happen in both good ways and bad.
How it Works
First of all, it’s important to understand just how IoT works. It’s the idea that ordinary home devices will use the Internet in order to carry out their functions. Smart home devices, such as those that operate temperature and security, are already here.
Beacon technology is one area of the IoT. These are small devices that emit Bluetooth signals. They can be mounted anywhere and transmit information to Internet receptors. These can be used for tracking and adjusting a localised environment based on who that individual is.
IoT Making Home Buying Smarter
The area of beacon technology is what the real estate industry have their eyes on. House hunting could become easier than ever before as a result of it. Buyers could be looking at real-time listings in a brokerage, but the difference is the window is Internet-enabled. They can view videos of specific properties literally by communicating with the window in front of them.
It could create a personalized buying experience for real estate brokers, and they could use this technology to only show customers what they actually want to see. Not only do people in the real estate business get more targeted content but customers get only what they want.
Another interesting niche of beacon technology is the option to tour a home virtually. Imagine a world where your broker sends you a video tour of your chosen home and you can view it from the comfort of your own sofa. This isn’t a static video, either, it’s a full 360-tour that you have control over.
Customers can easily access detailed information about each room, such as energy efficiency ratings and floor plans.
The Effect on Marketing
To succeed in the world of real estate, marketing is everything. According to a recent report by Gloria Nilson in Princeton, external sources of data, such as information harvested from the local municipality, can enhance the whole experience of searching for a home. Using external sensors, home buyers could find out things about the local neighborhood and weather conditions.
For example, a buyer could see a home and they could find out not just about the property but about the local air quality and the weather conditions throughout the year. Not only do buyers have the capacity to find out about homes but they have the capacity to discover important contextual information.
Also, various software now exist for customer support solutions, making it easier for sellers to create truly enriching experiences for clients and giving buyers more power than they ever had before. It’s also making the home buying experience more self-sufficient. It no longer has to be driven by you. Potential buyers will explore by themselves, which makes your job easier.
And the Impact On Sellers
Sellers also have a significant advantage. Remember all those claims that sellers like to use in order to make their home seem more attractive? These claims are no longer relevant. Now you can back up everything you are saying. If your home is more energy efficient, your Internet-enabled sensors can now prove it.
In many ways, this could make the real estate industry more honest, and subsequently buyers are going to be more trusting, which is a benefit for everyone.
The IoT is set to change the real estate industry for the better. From personalized buying experiences to having more data at your disposal, these next few years could see the entire trade change for the better.
What do you think are the most exciting changes?