Buying a home is usually the biggest financial transaction of a person’s life. It almost seems like it’s supposed to be a time-consuming, complex process, given how much money is at stake. But the complicated web of paperwork and people involved in every real estate transaction add significantly to the costs. New technology means that it doesn’t have to be that way.
Automation in real estate is about making the transaction process less stressful, more efficient, and more affordable. There are a number of areas where automation can improve things, including:
- Mortgage applications and the approval process;
- Buyers’ search for properties;
- Property price estimations;
- Contracts involved throughout the transaction.
New technology solutions are automating many of the repetitive, unnecessary tasks involved in real estate, and they’re saving time and money for buyers, sellers, agents, and investors.
Real Estate Contracts
Contracts and paperwork take a lot of time in any real estate transaction. Blockchain technology has created an opening for automated smart contracts that can reduce disputes and expedite the closing process. That means time and cost savings for everyone involved without sacrificing peace of mind.
Real estate technology platform Nobul has recently integrated smart contracts into its open digital marketplace. For now, the platform is focused on contracts between the buyer/seller and real estate agents, but it aims to develop events-based contracts that can automate more of the closing process.
According to Founder and CEO Regan McGee, automating these processes means that, “If you’re a homebuyer or seller, you can pay lower fees, get better service. In an interview with BNN Bloomberg, he explains that “ it’s all done with the accountability of a tech company that’s designed to be consumer-centric right from the beginning.”
The size and scope of the real estate industry make data collection and analysis a major part of the business. There are so many properties out there that buyers and agents rely on AI-supported technology to sift through all of that information and find the right matches.
Real estate has an abundance of data, and analyzing it all is a process that needs to be automated.
Price Estimations for Properties
A major part of selling a home is getting the price for a property right. If sellers list a property too high, it may sit on the market for weeks, and that can create skepticism among buyers. On the buyer’s side, agents want to be able to confidently tell their clients whether a property is priced fairly for the market or not.
With AI-supported data analysis, agents can make more accurate price projections, giving buyers, sellers, developers, and investors better information in less time.
The same technology can also be used by property appraisers and mortgage lenders to evaluate the prospects of a neighborhood. Better automation technology can handle more information from the wealth of big data available in real estate.
The mortgage process is another one that can be both time-consuming and frustrating. That said, financial institutions are increasingly turning to automation systems to speed up application processing while continuing to ensure privacy, accuracy, and regulatory compliance.
Automation can significantly enhance the mortgage approval process and cut costs along the way.