How tech is changing real estate
PropTech is much more than an industry buzz word, it’s a billion-dollar industry. Here’s what agents need to know about how PropTech can help improve their businesses and make their lives easier.
What is PropTech
PropTech, short for Property Technology, is a coverall term for digital and technological changes to the real estate industry. PropTech can take various forms: from new products to innovative ways of doing old things. It even includes new digital-focused business models.
Examples of PropTech include initiatives from new startups in our industry, such as low cost, flat fee property management companies, as well as apps or CRMs powered by digital data or artificial intelligence. Another example you’re probably already very familiar with is ratings websites such as ratemyagent.com.au.
Why do agents need to know about PropTech?
Agents need to know about PropTech because it has already disrupted and transformed the real estate industry. More importantly, the pace of change is likely to get faster still.
If you don’t believe us, consider this: figures from the US show that in 2008, PropTech startups attracted US$20 million in investment; in 2018 the amount of US-based investment in PropTech had grown to US$4 billion – a rise of 2,000%!
More importantly, Australia is also well and truly a player in the PropTech sector. According to 2019 data from Unissu, Australia has over 265 PropTech companies, and 61% of these companies operate within the residential space.
Of these residential focused PropTech companies, 32% focus on the management phase of the property lifecycle, 24% focus on buying and 20% on selling.
The PropTech revolution is well and truly upon us.
This revolution may not ever displace the fact that real estate is ultimately a people business that is won or lost with a meeting between agent and homeowner around the kitchen table. But what PropTech can already do is help agents generate more opportunities and communicate with more people in less time, giving them the opportunity to focus on what they do best: building relationships and selling property.
We see that this alone could help real estate agents potentially double or triple their income.
Beyond that, PropTech also has the potential to create new efficiencies, enhancing and personalising the customer experience and allowing allow agents to do their work in much less time so they have some chance of achieving that elusive work-life balance.
Examples of PropTech you’re probably already using
If you’re like most agents, you’re probably already using PropTech in a number of ways
For instance, online property portals – in which Australia was an early adopter and world leader – were one of the first ways PropTech affected our industry. Now we’re seeing it in other areas: from the use of augmented and virtual reality, to live internet auctions, drones and social media marketing applications.
At the very core of almost all PropTech solutions is data, which means very few agents can survive without a good CRM, which is also where real estate software available from Agentbox comes into the picture.
Agentbox goes far beyond a standard CRM by having several integration partners – most of which classify as PropTech companies. From property portals such as Domain and realestate.com.au, to campaigntrack, CoreLogic, spinify, Real Insights and homepass.
Agentbox also allows you to get the most from your data by integrating with specialist providers such as artificial intelligence PropTech company AIRE who offer the breakthrough Digital Employee platform, Rita.
How Agentbox is using PropTech to transform agents’ lives
Feedback from users of Agentbox shows how PropTech can truly transform the day-to-day life of an agent.
Tara Torkkola from First National Byron Bay told us that Agentbox has increased communication between sales staff and made their lives easier day today. She describes the App that lets them take their admin on the road like a second brain that enhances both the client experience and the agent experience.
Ruma Mundi from First National Real Estate North Western told us that when she spent over a year deciding on which CRM to invest in, the training, openness and integration with other PropTech innovators set Agentbox apart.
Meanwhile, Tom Hector from Harris Real Estate said the Prospector function has been invaluable in allowing him to focus on his geographic area and be more targeted in his marketing. The live data feeds from CoreLogic to ensure he has the most up-to-date info at his fingertips when prospecting and generating appraisals.
While PropTech has certainly disrupted the real estate industry, most of the change is for good – using innovative technology to help agents win more work, and do their job better.