Busting Top PropTech myths for faster growth 

10.03.23 12:16 AM Comment(s) By Assetsoft

One of the most underutilized strategies for gaining a competitive edge in real estate is technology adoption and software update. It's time to bust the most common PropTech myths to help this sector advance. The real estate industry has a historically slow adoption rate of new technology. As a result real estate lags behind on many innovations and upgrades. Even about a decade ago multi-family homes used to depend on intercom phone systems for communication. They were bulky, cumbersome, and lacked any upgraded features of a new-age smartphone.  

 

Some real estate businesses also feel that they do not have any need for technology selection in project management because they would rather meet clients directly. But NAR reports say that more than 97% of people look for properties online. But reports also say that only 69% of real estate companies in America have their own websites. This clearly indicates that the rest of the 31% are lagging behind. Not only are they missing out on business opportunities, but they are also slowly becoming irrelevant in the market.  

 

But PropTech adaptation has a lot of myths associated with it, which is why technology selection and implementation in this sector can be slow. As real estate industry experts, we are here to help you resolve those. Read this article to know more.  

5 PropTech myths that the real estate industry needs to bust  

There are many PropTech myths that play a part in this problem. We are here to bust the top 5 myths to give you a better understanding.  

  1. PropTech is very expensive  

PropTech or real estate SaaS is one of the cheapest and most affordable techs. These work on subscriptions, you can upscale or downscale them as per need, and you do not need to pay an in-house IT team to develop and maintain the software. Market reports have found that an in-house software developer costs no less than 100,000 to 200,000 dollars annually. That is why outsourced IT services can be much cheaper.  

 

Many real estate technology solutions have a speedy payback. Simply put, you'll see a quick return on investment from those PropTech technologies. This will also free up valuable time for your staff and help them focus on getting and retaining customers.  In the end, technology results in quicker lease-ups, faster rent collection, and managing multiple properties which helps your building quickly reach stabilization.  


  1. Real estate technology is here to replace people  

The fear of technology replacing people and employees is not new. Real estate was built on direct human interaction and agents directly selling a house to the customers. But with portfolio diversification, one agent or property manager can not realistically manage multiple properties. Using the right selection of technology in project management property managers and agents can actually help themselves and advance business. Reports actually say that real estate has one of the highest employee turnovers with or without technology implementation.  

 

That is why research on SaaS integration says that more than 73% of businesses are shifting all of their systems to SaaS. Proptech automates repetitive and mundane tasks, leaving staff more time and energy to provide high-touch services. That is why PropTech like RPA bots can send automated responses to generic everyday customer queries. This will make the customer feel valued and save time in answering the same question individually. There are many more such practical applications of PropTech.  


  1. PropTech is too complicated for non-technical people 


Many people strongly believe that PropTech is too complicated and can need days and months to integrate and install. This was true in the previous days when this technology was still in the development phase. At present with the advancement of tech, PropTech integration is only a matter of a few hours. Your system can be up and working within no time and you will see its benefits from the beginning.  

 

But this does not mean that your staff will need no training for the new tech. That is why third-party integration service providers like Assetsoft also offer staff training for all new techs. We make sure your staff grasps the new tech and adapts to it to help your technology investment worthwhile.

  

  1. It can lead to easy data breach incidents  

Despite the rise of PropTech, some real estate brokers prefer to conduct business in an old-fashioned manner. Every aspect of the real estate market, from selling a property to finalizing a deal with a client, needs complete attention and data protection. However, other people simply don't trust modern technologies because they worry about data breaches. 

 

The greatest approach to safeguard your vital information is actually through the use of technology, for as by keeping key files in the cloud. This new tech always backs up your data and uses multiple layers of cyber protection to ensure utmost security. This means that a data breach is hardly a possibility. Additionally, modern real estate transactions are accurate, secure, and quick thanks to technologies like Blockchain. 


  1. The real estate industry does not need technology  

Real estate, one of the largest sectors, frequently boasts about not requiring technology. But in the current digital era, technology is a must for every industry to remain relevant and competitive.  

 

The truth as we saw during the epidemic, technology saved us in a variety of fields, including real estate. For instance, technology has made it possible for many people to work from home, to enter buildings and make deliveries using contactless technology, and even to have health inspections before entering. Technology has made it possible to conduct virtual home tours, conduct inspections with aerial drones, and much more.  

Get the PropTech Implementation Help You Need!

Truth be told, this industry is still very much a pen-and-paper business, and many still shy away from new tech. But a market survey by NAR has found that many real estate businesses are thoroughly benefitting from their technology adaptation. According to them the next big techs that will positively impact their business are  

 

  • Cyber security (31%) 

  • 5G (30%) 

  • Drones (27%) 

  • Artificial intelligence (15%) 

  • Virtual reality (14%) 

 

So, when are you planning to upgrade your system and benefit from this new-age PropTech system? Our technology selection and technology implementation teams can help simplify the process for you. From software integration to staff training, troubleshooting, and constant support to smoothen the business process, we do it all. Get in touch with us to know more about our services. Talk soon!  

Assetsoft

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