Disruptive Technology In Real Estate: Four Lessons To Learn

What is Disruptive Technology?

Disruptive technology is an innovation that significantly alters the way that consumers, industries, or businesses operate. Disruptive technology sweeps away the systems or habits it replaces because it has attributes that are recognizably superior.

Recent disruptive technology examples include e-commerce, online news sites, ride-sharing apps, and GPS systems. In their own times, cars, electricity service, and television were disruptive technologies.

Important Key Understandings:

  • A disruptive technology supersedes an older process, product, or habit.
  • It usually has superior attributes that are immediately obvious, at least to early adopters.
  • Upstarts rather than established companies are the usual source of disruptive technologies.

Similar to many other industries, real estate has been disrupted by technological advancements in major ways over the past couple of decades. As always, in this very competitive business, the accelerated adoption of technology is not all black and white.

If you plan to succeed in the real estate industry, there are four important lessons to be learned in order to be competitive.
  • Adopt Technology to Compete with More Experienced Agents: There is no reasonable way to deny the role that big data, automation, and AI play in real estate. Technology has become an integral part of real estate investments.
  • Don’t Forget the Human Aspect of Real Estate Investing: There is no doubt new disruptive technologies have given newbies access to previously untapped resources and accelerated the rate at which agents can find and close profitable deals. However, what we are seeing amid the technological disruption of the industry is that real estate is and remains a largely people’s business. To make profitable investments and see success, you need to stay in tune with the human side of the business.
  • Use Tech to Diversify Your Portfolio: Different agents come with different levels of risk tolerance. Nevertheless, a smart industry professional minimizes risk by diversifying their portfolio across various strategies, property types, and markets.
  • Know Your End Goal: Technology has opened up new opportunities in the industry, such as fractional investing and metaverse real estate, but it does not answer the question of what strategy and approach is best for every individual agent.

Are you ready to join the conversation on disruptive technology?

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