New Technology Changes the Face of Real Estate

Web 2.0 - The New Real Estate
Marketing Landscape

The technological innovations and advancements that have been made over the last two decades are amazing.  The Internet has become accessible to most Americans.  In fact, access to the Internet is growing across the globe.  Social media sites like Facebook and YouTube are playing a role in how crucial events are unfolding.  The protest movements going on right now in the Middle East are a good example.  In addition, powerful computing is getting smaller and smaller all the time.  Phones, netbooks, and tablets are rapidly replacing heavy and cumbersome laptops with little to no loss in computing power.  In addition, texting is replacing, to a large degree, the need for email.  The real estate industry is adapting to these new technologies like QR codes and cloud computing.  According to a Bloomberg BusinessWeek article, the projected market for cloud computing in 2014 is $149b.  Companies such as Netflix and Zynga currently utilize the cloud to manage high volumes of Internet traffic.  Also, the same article from Bloomberg Business Week suggests that Amazon's Web Services, which rents out computing power for pennies an hour, will level the playing field for small business owners, giving them access to the same kind of world class access to computing power as very large companies. 

This type of innovation is very exciting.  It means that small to medium size companies will be able to compete more efficiently in a consolidating business climate where a smaller and smaller number of companies are gaining control over industries such as banking and finance.  Although real estate professionals have historically been slow to embrace new technology, most now acknowledge that there's no turning back.  Both commercial and residential real estate are adopting the Internet, video, and social media like never before.  Residential is leading the charge by using smart phone apps, virtual tours, IDX, and social media.  However, commercial brokerages are beginning to embrace these opportunities as well.  Static websites are no longer enough to keep you on the cutting edge.  Everything is moving toward an interactive experience on the web.  Customers are demanding it. 

QR Code

Change is inevitable but it's important to keep in mind that technological advancement and its application are generally positive but negative consequences exist as well. The main one being a loss of interaction between business providers and their customers.  Some companies, such as Zappos, have managed to provide a great online customer service experience.  Many companies, however, have yet to achieve the right formula in the real estate world and beyond.  Figuring out the right formula is more challenging than might be expected.  Those companies that figure out the right blend of personal and online customer interaction will be the most successful businesses in the future.