Innovation in the real estate market has really started to take off. Technology investors and venture capitalist are now pouring money into all kinds of different startups that are transforming the real estate industry. Tech innovations have transformed all aspects of the industry so it is important for everyone to know and understand what the up and coming trends are.
Whether you are involved in sourcing deals, managing properties, fundraising or just a tenant, there is something new out there that makes your life easier. Even the language in the real estate industry has changed with terms like coliving, smart homes, coworking and microunits. It is clear that innovation in the real estate market is only going to continue to grow.
Most new startups in real estate are built to optimize operations. Following suit with other industries they focus on performance improvements, cost savings and increased revenue from their optimized operations. Below is just a small fraction of startups that are already transforming the real estate industry.
Four Startups Transforming The Real Estate Industry
- Faira – This startup removes the need of hiring a real estate agent and dishing out that 5-6% commission. The company claims to save the average seller using their free service about $20,000. After a seller signs up on their website the startup will conduct inspections, take photos, create a listing and hold open houses for no charge. Interested buyers then go to the website to place bids on the property and the highest bidder wins the deal. Once the deal is done the seller pays 3% commission to the buyer’s agent and Faira collects 0.5% from the buyer. Everyone wins with this new startup idea and there are a lot more just like this that take advantage of technology to save people money.
- Meridio – This new idea has completely revolutionized the investment portion of the real estate industry. Using the company’s app or website somebody could invest as little as $20 into a property. Staying up-to-date with the latest technology currency, all transactions are done with blockchain technology to keep costs down. Investors get to benefit from low transaction costs and liquid real estate assets. Owners get to benefit from more capital, more investors and streamlined transactions.
- WeSmartPark – This app/website is basically Airbnb to rent parking spots at people’s houses. People living near areas with commercial businesses or limited parking can open up their driveway for public use and earn money. Some drivers even use this option over public parking for the increase in security they get by parking at somebody’s residence.
- Rhino – Getting rid of the move-in security deposits required from renters is the idea behind this startup. Instead of forking over a deposit the renter will pay a premium to Rhino for insurance incase of damage during their lease agreement. A typical house renting for $2000 will cost about $15 for monthly insurance. Landlords also benefit from this company by having free advertisements on their website and enticing tenants to move-in to their deposit-free properties.
Future Real Estate Technology
More and more companies are introducing technologies to the real estate industry that benefit property owners, potential buyers and even renters. Since everyone involved in the housing market will start to use these new services it is expected that newer and better ones will emerge.
The real estate industry is transforming. While the changes might not be as obvious right now on the ground, transformative changes are happening in the background. New real estate solutions will be developed, uncovered and monetized using blockchain, virtualization and artificial intelligence. Real estate professionals must stay ahead of the market and take advantage of these emerging technologies in order to remain relevant.
What Are Some Startups You Feel Are Transforming The Real Estate Industry?