If you are a real estate agent who likes to stay on top of all the news or usually go to events in the real estate sector (see Conecta Imobi 2019), it is likely that you have noticed an increase in the use of the word “Proptech “. If you never heard or did not have time to do thorough research we are here to explain everything you ever wanted to know!
The term proptech is much more than a buzzword, it is a segment that moves billions annually and has existed since the 1980s having gained a lot of attention recently.
What is Proptech
As stated earlier, the term proptech is not exactly new, as we are already moving towards proptech 3.0.
PropTech, short for Property Technology, is a comprehensive term for digital and technological changes in the real estate sector. The PropTechs have many faces: the new products to new ways of doing old things. It even includes new business models with digital focus. Examples of PropTech include real estate startups, business management and intermediation companies, as well as applications or CRMs.
In short, with the low cost of computing in the 1980s, the first computer-aided design (CAD) software and database tools emerged, which were used extensively by companies linked to the real estate segment. We call this time of Proptech 1.0.
Today we are experiencing PropTech 2.0, a new explosive wave of innovation, investment and business activity. With unprecedented advances in technology, cloud computing, agile programming, mobile devices, sensors and much lower costs. In addition to ubiquitous connectivity driven by broadband, Wi-Fi and 4G telephony.
In the same way that the personal computer and later the Internet facilitated the growth of PropTech 1.0, PropTech 2.0 was launched by electronic commerce, social networks, open-source software and the multiplatform world.
What is important to know about PropTech?
Real estate agents and brokers need to know that PropTechs have revolutionized and transformed the real estate sector. Most importantly, the pace of change tends to get even faster. So be aware of the subtle changes in the sector and connected to new technologies.
The sale of real estate has gone from the famous easel or leafleting at the door of supermarkets to a global e-commerce platform that uses customer feedback and reception to optimize campaigns. One of these tools are social networks and search engines, in particular Facebook and Google, which have created a network system that has scale and reach far beyond the capacity of any individual realtor.
Combine all this with a modern website that acts as a support for all business processes and vital data of your business. When you use a website that offers CRM tools, integration with portals, models accessible on any device and smart tools to impact customers. Congratulations you will be using a Proptech.
Technology never stops, especially in a market with a turnover of 3.5 trillion dollars worldwide, as is the case in the real estate market. Below we will list the main categories and trends in the proptech market that real estate brokers and investors need to know.
The search for the property went from something painful that took several days and countless comings and goings to real estate to something as simple as a Google search.
That is why it values a website with a modern system like the ones offered by ImobiBrasil. In this category there are also search portals such as Viva Real, Zap Imóveis, and OLX among others. Ad on social networks and remarketing campaigns.
The digitization of real estate documents, such as property declarations, vacancy reports, tenant profiles, property maintenance and inspections, contracts, financing and title paperwork reduces the likelihood of errors and speeds up the entire due diligence process by eliminating intermediaries.
Real estate management
Proptech focused on real estate management is used to provide an integrated system from start to finish, with security and transparency. For example, the landlord and tenant digitally sign a smart rental agreement that includes the amount of the rent and the frequency of payment. The smart contract then automatically initiates and collects monthly rent payments, pays operating expenses, and distributes profits to the owner.
Financing and payment systems
It takes 30 to 90 days for a purchase to complete (this is after the customer has reached the bottom of the sales funnel), sometimes even longer for international transactions or larger business deals. The digitization and insertion of artificial intelligence in the financing and payment systems streamlines and accelerates the acquisition and financing process, reducing the time spent on credit analysis and loan documentation.
Brazilian Proptech Scenario
In Brazil, proptechs have greatly helped the development of the real estate market, adding new disruptive technologies and reinventing old business models.
A quick Google search and you will find numerous consolidated companies and startups that offer services and tools for the real estate sector.
The ImobiBrasil , for example, works more than 10 years believing that technology is an ally of brokers and continues to invest in the success of real estate and all its constituents.
Have your own website for brokers and real estate agents at an affordable price
We could not end this article without talking about the ImobiBrasil system. A complete suite of solutions designed and used daily by brokers and real estate agents across the country for almost a decade.
At ImobiBrasil we seek to facilitate the management of your website to assist the success of online brokers and real estate agents. We also offer support via phone, chat and WhatsApp to make getting started even easier.
Check out the list of benefits you will have choosing ImobiBrasil:
- More than 30 website templates for real estate and brokers
- CRM with customer registration
- Sales funnel
- Integration with Portals (Zap, VivaReal, MercadoLivre, OLX among others)
- No loyalty contract
- No minimum length of stay
- And much more!