Investing in real estate has always been as much about data as it is about trust. That’s because there are thousands of opportunities to choose from. The onus is on the investor to select the right ones.
Technology is reshaping the way property investors make decisions.
With the right tech stack, investors can sift through opportunities faster, identify top prospects quicker and evaluate deals with more information and accuracy. And when it comes to real estate, information is power.
In this article, we will look at…
- Why tech tools are a gamechanger for property investors.
- The best tech tools to use in 2022 and beyond.
- How data analytics is reshaping property investing.
- Practical steps to get started with investing tech.
- Mistakes to avoid when using technology in investing.
Why Property Investors Need Technology
Investing in property is a numbers game.
The investor with the most information available has a competitive edge. They can validate opportunities quicker, predict with more confidence, and evaluate options with more information.
Technology can supercharge this process.
The number of property technology tools and platforms available to investors has never been higher. They provide everything from valuation and data analytics to market research and virtual tours. And as the Fortune Business Insights industry report highlights, the global PropTech market size is predicted to grow from $40.19 billion in 2025 to $88.37 billion by 2032.
In practical terms, technology is a huge gamechanger for investors because it…
Levels the playing field. Smaller investors now have access to digital tools that were once only available to real estate professionals and institutions. Whether their first mortgage investments, are residential real estate or vehicles, technology can make them more competitive in their due diligence.
Speeds up the process. Evaluating an investment opportunity can take time. There are property details to validate and data points to crunch. The right technology can cut this time significantly.
Build a clearer picture. Investors need to look at market data and local information before buying. The best tech stacks draw on multiple data sources to create a comprehensive picture of opportunities. Rather than searching the web for information, this information is delivered in a dashboard.
Sharpen predictive capabilities. In the past, investors relied on market cycles and general trends. Technology crunches data and can identify emerging opportunities before they are obvious to the human eye.
Improves accuracy. Human nature makes it difficult to analyze the same numbers without bias. Technology can crunch vast datasets and produce impartial reports based on all available information.
Reduces risk. Analyzing investments is fraught with potential problems. When humans have to verify the details manually, it opens up the possibility of missing key details. Technology automates as much of this work as possible.
Eliminates guesswork. Investors need to use their instincts and gut reactions to make the final call. But they can use technology to arrive at an informed conclusion before stepping into subjective territory.
The Best Tech Tools for Property Investors
There are multiple categories of technology tools available to property investors.
AI-Powered Valuation Tools
The first category is AI-powered valuation tools.
Property investors can use these platforms to perform real-time property valuations with great accuracy. This is because they draw on thousands of data points including historical sales data, current market conditions, property features and location, and even broader neighborhood trends. The upshot is an instant and accurate evaluation that takes seconds rather than days to complete.
Predictive Analytics Platforms
Predictive analytics platforms are also powerful.
This technology uses machine learning to predict future market trends. Unlike traditional real estate analytics platforms that focus on historical data, these AI-powered tools are forward-looking. They can identify emerging property investment hotspots before prices start to rise.
As JLL Research notes, 90% of companies expect AI to underpin real estate activities in the next five years. The smart money is betting on this technology.
Market Research Platforms
Investors also need to understand the broader market in which they are operating. Market research platforms use data to provide investors with a clear picture of both local and national conditions. This includes information such as population growth patterns, employment statistics, infrastructure developments, and rental yield comparisons.
The benefit of these all-in-one platforms is that investors don’t need to perform this research themselves. Instead, they get a comprehensive market research report with all the information in one place. The upshot is that investors have far more time to do what they do best.
Virtual Property Tours
Virtual reality and 3D property tours are also a gamechanger.
This technology has made it easier for investors to evaluate properties from afar. High-quality video walkthroughs and virtual reality tours are so realistic they allow investors to conduct inspections remotely. They are able to accurately assess properties interstate or overseas without incurring the travel and time costs previously required.
Property Analytics Tools
Property analytics tools bring these multiple technologies together.
Tools like CoreLogic AVM combine market research, local data, predictive analytics, and property valuations in one dashboard. That means investors get all the necessary information delivered in one convenient place. It’s also worth noting that this technology is easily accessible to all property investors.
Wrapping Up
Data is the currency of property investment.
Those investors with the most information at their fingertips have a competitive advantage. They can evaluate more opportunities in a given timeframe, identify top prospects quicker, and know with more certainty if a deal is worth pursuing or not.
Technology tools aggregate data from multiple sources and present this in a structured way. This takes the time and effort out of information-gathering so investors can get on with the business of growing their portfolios.
In the past, property investors had to rely on a mix of experience, guesswork, and spreadsheets to make decisions. Today’s investors have access to advanced technology tools. The better they use them, the better the investment outcomes.
Now is the time to embrace these tools.
Start small by picking one category of technology and learn to use it well. Once it becomes a regular part of the decision-making process, then add new tools to the stack.
The PropTech revolution is already underway.
Investors who take the time to understand the right tools, how they can benefit and the nuances of their operation are the ones that will stay ahead.
