If you haven’t heard the term “Proptech” pop up in conversation over the last 12 months, you’ve likely been living under a rock. Short for “property technology”, the term has entered the industry’s lexicon as a short-hand reference for all technological and digital innovations relating to property.
New solutions and products are arriving on the market almost daily and each brings something new for business leaders to think about. Today’s profits must be measured against tomorrow’s potential, and best practices that have served agencies well for years must be analysed, questioned and improved.
So it seems inevitable that as the influence of Proptech continues to grow, misconceptions arise. Let’s set the record straight on three of the most common misconceptions about Proptech.
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It’s expensive
When talking about Proptech, many immediately jump to the conclusion that it’s super expensive. Of course, the development of technology can be a costly endeavour. But new Proptech solutions are entering a competitive marketplace, so cost will come down to how much end users are willing to pay.
And don’t forget, cost is relative – and before committing to any Proptech solution, you’ll need to do a cost/benefit analysis. Will the solution result in efficiencies? Will productivity improve? Will it provide revenue opportunities? It may well be that a particular Proptech solution will drive your business forward.
Together, savings and optimised use of an agency’s time and resources can combine to raise bottom line profitability. Can you afford not to implement it?
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It’s a fad
Just a few years ago, the number of Proptech companies was estimated to be in the low hundreds. Fast forward to today and the number has exploded to more than 6000 – and this number continues to rise as innovators seize the opportunity to revolutionise the real estate space.
Does that sound like a passing fad to you? Now that technology has and will continue to infiltrate the real estate industry and change how business is conducted, there’s no turning back. With the greater use of technology, more opportunities can be grasped, scalability can happen more readily and the more attractive the industry will be as a career for the younger generation.
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It steals jobs
The rate of change when it comes to technology has been rapid and will only continue to accelerate. Real estate businesses need to adapt or be left behind. But will technology ever completely replace agents? Absolutely not.
Proptech is created to serve a purpose, solve a problem and to make processes simpler. Often it’s the case this technology aides an agent’s role, rather than completely taking it over. It allows tasks to be completed more quickly and efficiently, freeing up time and resources to focus on high value-add tasks.
Proptech isn’t threatening. It’s not something agents should be fearful off. It’s a tool that can help agents respond to their clients’ needs.
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