11+ Top Emerging Real Estate Fintech Trends
What is real estate fintech?
Real estate fintech refers to financial technology for the real estate sector.
Fintech describes the new technologies, products, and services used to streamline the delivery of financial services.
In other words, it’s using tech to make financial services more efficient, accessible, and user-friendly in the various ways possible.
While fintech covers a wide range of companies and products, real estate fintech specifically refers to the ways that technology is changing the real estate industry.
This can include anything from new platforms that make it easier to buy or sell property, to new financing options for real estate investors.
What are some of the best real estate fintech trends?
Here are a few of the most promising real estate fintech trends:
1. Virtual reality (VR) for property tours
2. Blockchain for real estate transactions
3. Online mortgage lenders
4. IoT for smart homes
5. Big data for real estate analytics
6. Chatbots for customer service
7. Augmented reality (AR) for home staging
8. Drones for external property inspections
9. 3D printing for homebuilding
10. Robo-advisors for real estate investing
11. Peer-to-peer (P2P) lending for investment properties
These are just a few examples of how fintech may be changing the real estate industry. Then it’s a matter of how far these new products and services penetrate the existing market.
As such, there are many new and exciting technologies that are making it easier and more efficient to buy, sell, or invest in property.
If you’re looking to stay ahead of the curve, it’s important to be aware of these trends and how they might impact your business and/or your trading or investing.
#1 Virtual reality (VR) for property tours
One of the most exciting real estate fintech trends is the use of virtual reality (VR) for property tours.
This technology allows potential buyers to take a virtual tour of a property from the comfort of their own home.
VR property tours are becoming increasingly popular, as they provide a convenient and immersive way to view a property.
The Covid-19 pandemic brought forward this trend, as many prospective buyers wanted to view properties while staying socially distanced.
Moreover, when monetary and fiscal stimulus improved consumer balance sheets at the time, many thought about moving out of their immediate area and found virtual reality as a convenient way to save on costs.
VR was already an emerging trend, but this accelerated the push.
If you’re a real estate agent, you can use VR to give your clients an immersive experience that will help them make informed decisions about properties.
You can also use VR to show properties to out-of-state or international buyers who might not be able to physically travel to see the property in person.
To get started with VR property tours, all you need is a VR headset and a 360-degree camera.
There are many different VR cameras on the market, so you’ll need to choose one that best suits your needs.
Once you have a camera, you can start creating VR property tours to showcase your listings.
If you’re not familiar with VR technology, there are plenty of resources available to help you get started. You can find tutorials, online courses, and even VR production companies that can help you create high-quality virtual tours.
#2 Blockchain for real estate transactions
Another promising real estate fintech trend is the use of blockchain for real estate transactions.
Blockchain is a distributed database that allows for secure, transparent, and tamper-proof transactions.
This makes it an ideal platform for handling real estate transactions, as it can help to streamline the process and reduce the risk of fraud.
There are many different ways that blockchain can be used in real estate.
For example, blockchain can be used to create digital contracts, track property ownership, or even facilitate payments.
Blockchain-based platforms are also being developed that allow for the buying and selling of fractional ownership interests in real estate.
This is meant to give smaller investors access to residential and commercial real estate investment opportunities that would otherwise only be available to larger investors.
If you’re interested in using blockchain for your real estate business, the normal process is that you’ll need to choose a platform or service provider that offers blockchain-based solutions.
There are many different providers out there, so it’s important to do your research and choose one that best suits your needs. Once you’ve chosen a provider, you’ll need to set up a wallet and create an account.
After you’ve created an account, you’ll be able to start using blockchain to buy, sell, or transfer property.
Blockchain-based platforms are still in their early stages, so it’s important to keep up with the latest developments in this space.
#3 Online mortgage lenders
Another real estate fintech trend that is gaining traction is the use of online mortgage lenders.
Online mortgage lenders are changing the way that home buyers finance their purchases.
These lenders offer a convenient and efficient way to apply for a mortgage and get pre-approved for financing.
One of the biggest advantages of using an online mortgage lender is the speed and convenience they offer.
Home buyers can apply for a mortgage online and get a decision in minutes. This is a stark contrast to the traditional mortgage process with commercial banks, which can often take weeks or even months.
Another advantage of online mortgage lenders is the competitive rates they offer.
Because these lenders are not tied to a single bank or credit union, they can potentially offer more competitive rates. This is particularly beneficial for home buyers who are looking to get the best possible deal on their mortgage.
Moreover, they can also offer loans on a wider range of properties that commercial banks may not be allowed to be involved in.
For example, in the United States, commercial banks are not allowed to finance condo-hotel (condotel) properties. Yet there is still demand from buyers to finance these properties.
This is where fintech lenders can potentially step in to provide financing solutions in addition to traditional non-qualifying mortgage (non-QM) lenders.
If you’re a home buyer and it makes sense for your situation, you could consider using a fintech mortgage lender.
These lenders can potentially offer you a convenient and efficient way to finance your home purchase.
You can also compare rates from multiple lenders to ensure you’re getting the best deal possible.
#4 Artificial intelligence (AI) for real estate
One of the most exciting real estate fintech trends is the use of artificial intelligence (AI) (and various forms of AI) for real estate.
Machine learning, for example, allows computers to learn from data and make predictions.
This technology is already being used in a number of industries, and it has the potential to change how the real estate industry does certain things.
There are many different ways that AI can be used in real estate.
For example, AI can be used to help identify potential property buyers, predict pricing trends, or even automate marketing tasks.
AI-based platforms are also being developed that allow home buyers to search for properties based on their specific needs and preferences.
As the use of AI in real estate continues to grow, it’s important to keep up with the latest developments in this space.
This technology has the potential to change the way we buy, sell, and invest in property.
#5 Big data for real estate analytics
Big data is another real estate fintech trend that is gaining traction.
Big data is a term used to describe a large volume of data that can be analyzed to reveal trends and patterns.
This data can come from a variety of sources, including social media, transaction records, and demographic data.
Big data analytics can be used for a variety of purposes, including market research, lead generation, and pricing analysis.
Real estate businesses can use big data to better understand the needs of their clients and target their marketing efforts more effectively.
If you want to use big data for your real estate business, you’ll need to choose a platform or service that offers big data solutions.
There are many different big data providers out there, so it’s important to find one that best suits your needs. Once you’ve chosen a big data provider or platform, you’ll need to set up an account and begin integrating big data into your business processes.
#6 Chatbots for customer service
Another real estate fintech trend that is gaining traction is the use of chatbots for customer service.
Chatbots are computer programs that can simulate human conversation. They are commonly used to provide customer service on websites and social media platforms.
There are many different ways that chatbots can be used in real estate.
For example, they can be used to answer common questions from customers, schedule appointments, or even provide advice on property purchases.
Chatbots can also be used to generate leads or market properties to potential buyers.
#7 Augmented reality (AR) for home staging
Augmented reality (AR) is another real estate fintech trend that is gaining traction.
AR is a technology that allows users to superimpose digital images on their view of the real world. This can be used for a variety of purposes, including home staging.
Home staging is the process of preparing a home for sale. It involves making the home look its best so that it will appeal to potential buyers.
AR can be used to create virtual home staging scenarios that allow potential buyers to see how a property would look with different furniture or decorations.
This can help them to make a more informed decision about whether or not to purchase the property.
#8 Drones for video tours and external property inspections
Drones are another real estate fintech trend that is gaining traction.
Drones are unmanned aerial vehicles (UAVs) that can be controlled remotely. They are commonly used for photography and videography, but they can also be used for video tours and property inspections.
Property inspections are a necessary part of the home buying and selling process. They help to ensure that the property is in good condition and that there are no hidden problems.
Drones can be used to inspect properties for a variety of different purposes, including roofing inspections, chimney inspections, and gutter inspections.
#9 3D printing for homebuilding
3D printing is another real estate fintech trend that is gaining traction. 3D printing is a process of making three-dimensional solid objects from a digital file.
It is commonly used for prototyping and manufacturing, but it can also be used for homebuilding.
3D printing can be used to build homes from scratch or to add custom features to existing homes.
For example, you could use 3D printing to add a custom staircase or fireplace to your home. You could also use it to build an entire home from scratch.
#10 Robo-advisors for real estate investing
Robo-advisors are another real estate fintech trend that is gaining traction.
Robo-advisors are computer programs that provide automated investment advice. They use algorithms to make recommendations based on your goals, risk tolerance, and investment portfolio.
There are many different robo-advisors out there, so it’s important to do your research and choose one that best suits your needs.
Once you’ve chosen a provider, you’ll need to set up an account and begin integrating robo-advisors into your business processes.
#11 Peer-to-peer (P2P) lending for investment properties
Peer-to-peer (P2P) lending is another real estate fintech trend that is gaining traction.
P2P lending is a type of loan in which borrowers and lenders are connected through an online platform. Lenders can be individuals, banks, or other financial institutions.
P2P lending platforms offer a variety of benefits, including lower interest rates, more flexible terms, and faster approval times.
If you’re interested in using P2P lending for your real estate business, you’ll need to choose a platform or service provider that offers P2P lending solutions.
There are many different P2P providers out there.
Once you’ve chosen a provider, you’ll need to set up an account and begin integrating P2P lending into your business processes.
The future of real estate fintech
Fintech is branching out from traditional banks and starting to reduce inefficiencies in the real estate market.
Fintech startups are focused on automating and digitizing the real estate transaction process to make it more efficient, transparent, and accessible to a wider audience of buyers and sellers.
By using technological solutions to streamline the real estate transaction process, fintech startups are able to reduce costs and speed up the process for everyone involved.
The future of real estate fintech looks promising, with new startups emerging and established companies continuing to innovate to keep or expand their market share.
We can expect to see even more fintech products and services that will make buying, selling, and investing in real estate easier than before.
Proptech
Proptech is a term used to describe the intersection of property and technology.
Proptech startups are using technology to solve problems in the real estate industry, from streamlining the buying and selling process to making it easier to find a place to live.
OpenDoor, Zillow, and HomeLight are examples of proptech companies.
Insuretech
Insuretech is a term used to describe the intersection of insurance and technology.
Insuretech startups are using technology to solve problems in the insurance industry, from making it easier to get a quote for insurance to helping you file a claim.
Lemonade, Policygenius, and Hippo are examples of insuretech companies.
Read more: The Value of Reinsurance in a Portfolio
Conclusion
Fintech is changing the way we buy, sell and invest in commercial and residential real estate by making it more efficient, transparent, and accessible to a wider range of participants in the real estate market.
Fintech is already having a big impact on the real estate industry, making it easier and potentially more affordable than ever to buy, sell, and invest in various types of property.
Fintech startups are focused on automating and digitizing the real estate transaction process.
By using technological solutions to streamline the real estate transaction process, fintech startups are able to reduce costs and speed up the process for everyone involved.
The future of real estate fintech looks promising, with new coming up to challenge established companies, which are continuing to innovate themselves to ward off challenges.
We can expect to see even more fintech products and services that make buying, selling, and investing in real estate easier than before.
Real Estate Fintech FAQ
What is crowdfunding in real estate?
Crowdfunding in real estate is a way for investors to pool their money together to invest in a property.
What is blockchain in real estate?
Blockchain is a distributed database that can be used to store information about a property, such as the ownership history, transaction history, and other relevant data.
What is proptech?
Proptech is a term used to describe the intersection of property and technology.
Proptech startups are using technology to solve problems in the real estate industry, from streamlining the buying and selling process to making it easier to find a place to live.
In what ways is fintech changing the real estate industry?
Fintech is changing the real estate industry by reducing friction and increasing transparency and accessibility to a wider range of buyers and sellers.
Fintech is having a notably impact on the real estate industry, making it easier and more affordable in certain respects to buy, sell, and invest in property.
What are some examples of fintech companies in the real estate industry?
OpenDoor, Zillow, and HomeLight are examples of proptech companies. Lemonade, Policygenius, and Hippo are examples of insuretech companies.