#RealEstate-WhyAutomationInRealEstateIsABlessing

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Real Estate - Why Automation In Real Estate Is A Blessing, Not A Curse

Real Estate - Why Automation In Real Estate Is A Blessing, Not A Curse

Real Estate - Why Automation In Real Estate Is A Blessing, Not A Curse

By Maureen Waters   Real Estate - As technology becomes an increasingly ubiquitous feature of real estate — and of modern life — most opposition to CRE tech has begun to dissipate. Just as Netflix’s value to consumers has eclipsed that of Blockbuster video stores and mobile GPS applications are superior to paper maps, the true benefits of technology are becoming abundantly clear to the real estate industry. One of the few lingering concerns is that increased adoption of technology will result in job losses. But at its core, automation is about helping industry professionals perform their jobs better and should be embraced, not feared. Here are some examples of how automation unlocks opportunities for commercial real estate brokers, buyers and sellers, and frees them to be more productive while reducing the amount of repetitive work in their jobs: Expanding Your Network Through Technology Today’s commercial real estate brokers typically market a property by first evaluating the asset and then curating a list of potential buyers in their network who they believe will be right for the deal. The broker then selects certain buyers based on things like location, previous buying experience and the existing relationship. But marketing properties solely based on personal networks can be limiting. One broker we recently partnered with captured it perfectly when he said, “You can’t pretend to know everyone.” If you’re only leveraging contacts in your immediate network, you could be leaving money on the table and missing out on many other serious and qualified buyers who extend beyond your traditional Rolodex. In contrast, moving the market online opens it up to more investors, often yielding a higher price for the asset. Automating portions of the marketing process allows brokers to expand their reach and can also be a strong pathway to building new relationships. Freeing Up Time For Value-Add Work Historically, brokers were tasked with the sizable job of gathering and organizing available property data. This time-consuming work is a distraction from focusing on what really matters: sourcing new opportunities and completing deals. The introduction of technology relegates much of the data dissemination to cloud-based software, allowing brokers to focus more attention on advising the seller, positioning a property or educating a buyer on an asset’s potential, essentially making the deal happen. With this saved time, a broker can leverage technology, analyze data and add their own local insight to provide thoughtful, holistically formed recommendations — the kind computers can’t make — to their clients. Harnessing Data For Effective Price Negotiation Valuations used to be based in part on a broker’s instinct -- they were supported by historical sales comps, but BOVs (broker’s opinion of value) were somewhat subjective. With sellers and brokers both bringing their views on pricing to the table, negotiating the sales price was often the trickiest aspect of commercial real estate deals. In many cases, there was an unbridgeable pricing gap between buyer and seller and/or protracted, heated negotiations between the different parties and their brokers. By harnessing computing power to generate comps that include pricing data from similar properties over many years, algorithm-driven pricing is more scientific than the traditional BOV and is subject to less debate. This is quickly becoming a powerful tool for helping buyers and sellers meet on common ground. Determining The Probability Of A Sale With traditional deal methods, it can be difficult to gauge the probability that a transaction will ultimately close and even more challenging to pinpoint the final price point. But technology is changing that. Building off the ability to better determine a property’s real value, data-driven algorithms are able to predict the probability that a given asset will sell and at what price. This gives the broker and seller the power to enter the market with eyes wide open. Armed with a better understanding of whether their property will find a buyer, the informed broker or seller is able to determine which strategy will yield the best results. Where Real Estate Is Headed Much like how Netflix and Amazon make suggestions based on your viewing and buying preferences, data science technology will begin to create the same kinds of recommendation tools in the commercial real estate space. Technology allows various platforms (ours included) to examine an investor’s past deals and suggest properties they might consider adding to their portfolios. Unlike most recommendations made via personal networks, these recommendations are not limited by geography. For example: If you bought an office building in downtown Pittsburgh, the predictive algorithms might identify you as a strong candidate to buy a similar office building in Memphis, Fort Lauderdale or Phoenix. The technology would note the various attributes of your past purchases (property type, size, price, cap rate, occupancy levels, etc.) to pinpoint the sorts of properties that you are most likely to purchase, presenting you with a greater number of investment opportunities. Undoubtedly, technology is continuing to transform real estate in a big way. While in the past automation was viewed as a potential threat, it’s my belief that many are beginning to embrace new tools and viewing automation as a real opportunity to create efficiencies in the industry. The tide is turning and forward-thinking professionals from all corners of real estate are realizing that automation is not the future of real estate — it’s the here and now. Read more https://global.goreds.today/real-estate-for-sale-diamond-by-the-sea-largs-north-sa-5016/   Read the full article