The Dangers of Technology in Real Estate

Working with technology is inevitable in the real estate business. You need technology to get in contact with clients and industry professionals, keep track of market trends, source business, and also for record keeping. Technology is the base from which your business blooms. However, as much as technology is beneficial, there are many tradeoffs that accompany it.

  1. Building personal relationships.
    Social media is a great tool for reaching out to current and prospective clients; however, it should not be the foundation for in-person conversations with them. If you rely only on social media to communicate with your clients, you lose the opportunity to build a personal relationship with them. A personal relationship always gives you a higher chance of closing a deal. So, make sure to use a combination of both social media and in-person contact to foster great relationships with your clients.
     
  2. Technology can be expensive.
    Real estate technology can be very helpful in conducting business. Applications that allow you to organize your work and keep track of information can lighten your workload with their efficiency, speed, and overall user-friendly nature. However, this technology can also be expensive, costing hundreds to thousands of dollars to purchase and then maintain the technology. While it is undebatable that you’ll need to use technology for business, make sure to research your options thoroughly and use the most affordable options you can find.
     
  3. Zillow is not as accurate as you think.
    Zillow is one of the most popular real estate databases online. Established in 2006, it gives access to a plethora of homes available for sale and rent across the United States. The database is also versatile and allows you to filter specific information like square footage, amenities, and home types. However, Zillow’s function, Zestimate, can be unreliable. Because Zestimate figures are entered and computed independently, you can be prone to misinformation about specific pricing. According to Zillow, “The vast majority of Zestimates are within 10% of the selling price of the home.” This can usher in overwhelming or underwhelming pricing situations for your clients. Err on the side of thorough, multi-source research rather than only relying on Zillow.

Technology is both a blessing and a curse in real estate. It makes information processing faster and efficient with close to optimal accuracy; however, it can hinder smooth business functioning because of maintenance costs and possible misinformation encounters. All in all, use technology wisely to best serve your company.

If you’re interested in staying safe with client information, check out Chuck’s letter regarding cyberfraud.

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