4 Emerging Trends in Real Estate Technology

Innovations in real estate technology have the potential to automate the business and sales process for real estate agents, freeing up time to spend on more high-value activities, said Jeff Turner, entrepreneur-in-residence at Second Century Ventures, a venture capital fund. focused on innovation in real estate technology. On Thursday, Turner presented four emerging technology trends that he sees as having a major impact on real estate during the Business Issues Policy Committee meeting at the virtual REALTORS® Legislative Sessions.

Venture capital is flowing into real estate technology at an unprecedented rate, Turner said, and one of the key areas of interest is technology automation. He estimated the potential US market for automation at $100 billion. Automation, he said, is the driver of what he sees as the four top trends in real estate technology.

Trend #1: Artificial Intelligence

AI is human intelligence displayed by a computer or a machine, Turner explained, adding that AI powers a device like a calculator or a smartphone. AI can automate tasks so that an agent does not need to be an expert in an activity to perform it at a high level. Turner pointed to a prime example in imviewer, a company that offers automated video creation of 3D 360-degree tours that can also build floor plans, and a member of NAR REACH’s Class of 2017. No design or architectural skills are not necessary “AI is going to act as an assistant for us,” Turner said. “Things that used to be very manual can now be automated – you don’t have to be a professional.”

Trend #2: Non-Slingable Signs

Recently, NFTs have created a lot of buzz — and confusion — Turner said. An NFT is a cryptographic token that represents something unique and digitally certifies ownership—for example, it allows digital artists to certify that a file they’ve created is the original, “real” version of the file rather than a copy is. “It’s like certifying a work of art,” Turner said. “An original Picasso is worth much more than a copy of a Picasso painting.” So what does this mean for real estate? Turner pointed to a company called Addy, which offers an innovative way to invest in real estate through NFTs. Addy acquires properties and then offers investment in them, issuing a limited number of tokens, which can cost as little as $1 – Addy’s website explains that a $500,000 event will be split into 500,000 tokens. Turner noted that these low-cost tokens allow anyone to invest. “NFTs will change how people buy property and how investments are made,” he said.

Trend #3: Virtualization

3D 360-degree tours offer a wealth of opportunities for real estate agents, Turner said, but few agents are taking advantage of the technology. A study conducted by Second Century Ventures two years ago found that 84% of consumers want to see virtual tours of homes – but only 5% of MLS listings have them. Turner pointed to Pillar to Post, a home inspection company that also offers 360-degree home tours, as an example of what can be done. A potential buyer can view an entire home from their smartphone, tablet or computer, share the tour with others, receive a floor plan with dimensions and view key findings from the inspection. “I believe the opportunities for this are tremendous,” Turner said. “Clients can view a home any time they want and revisit any room day or night without asking the agent for another tour.”

Trend #4: Natural Language Processing

Natural language processing is the branch of AI that deals with the ability of a computer to understand human language, Turner explained. It’s the technology that powers automatic closed captioning and Amazon’s virtual assistant Alexa. And Turner believes that the potential of natural language processing to help real estate agents is limitless. “This is the holy grail of AI,” he said.

Turner noted that there is currently a Google desktop program that can call a restaurant and make a reservation on behalf of an individual and that there is a program called Lyrebird that can synthesize and imitate an individual’s voice— and then the text in the voice of that person can read the same individual. Turner said this technology has great potential for real estate professionals: “Imagine a chatbot that can answer your calls in your own voice and interact with clients.”

Turner pointed to RAIYA, an AI text-based, automated inside sales agent created by Ylopo, a member of REACH’s Class of 2020, as an example of what the technology can do. RAIYA can reach out to potential leads and have a conversation, responding to specific questions and comments the leader mentions. The agent can also respond to incoming inquiries from leads.

Above all, Turner is on the lookout for new technology that supports and assists real estate agents in their work. “I am proud to work for a company that is looking for technology that will keep the REALTOR® at the center of the equation,” he said.

Follow all of REALTOR® Magazine’s coverage of the REALTORS® Legislative Sessions at magazine.realtor/live.