Friend or foe - Are PropTechs challenging the real estate industry?

Yes, we are! By supporting real estate agents.

Posted on: 20.07.2021

Kristof Konstantin

Digitalization is not only changing the world we live in rapidly, but also creating completely new realities. This change creates something new - an unstoppable process of progress and innovation. As a result, our everyday life is changing. This process is resulting in exponential developments – positive and negative consequences of digitalization will lead to challenging changes in our societies. Entire industries are changing. Entire professional groups are changing. The real estate industry is changing.

There is talk of disruption in many areas. Just as you asked yourself a few years ago what place Challenger banks will take in the financial sector next to banking institutions that are a few hundred years old, one wonders nowadays more and more what position PropTechs have in the real estate industry. Die Facetten der Digitalisierung in der Immobilienbranche sind sehr weit. The topic of digitization in the real estate industry is, of course, huge. But when you look at handling a real estate transaction, we have a very clear stance.

While some PropTechs claim to want to replace various actors and tasks in the real estate industry with computer programs, we are convinced that real estate agents will continue to have a crucial and essential role in a real estate transaction in the future. Our goal is to simplify real estate transactions through digital solutions. And we don't think technology will replace real estate agents. We believe that real estate agents with the best technology will replace agents with bad technology.

The real estate agent of the future works digitally with software for administrative and organizational activities and has much more time for customer development and customer loyalty, in a hybrid way - digital & Face2Face. Automatic solutions will be used as far as possible, especially when obtaining and sharing information. However, the increasing possibilities with software and artificial intelligence will not replace the core business of real estate agents.

The real estate agents of the future thus remain the experts in their region (“local hero”) at the side of their clients. Real estate agents will be the human point of contact in the individual problem-solving process & the empathic advisory process to provide their customers with the best possible basis for decision-making through their service and support. For their target groups, this fact is a question of security, which they expect in this service. Security can only be created through trust - therefore, in addition to a fast-moving comparison economy (properties, brokers, etc ...), personal branding, ratings, and feedback will increase. Parameters that primarily begin online in lead generation and are consolidated during the process into a real customer relationship through to handover. The role of legal advice and legal assistance will remain unchanged in terms of relevance for buyers and sellers.

The full extent of the transformation and the extent of the digital work steps of the real estate agents of the future depends above all on the increase in standardized work steps/processes and the digitization of their environment. Like bank advisor, who were able to take many steps in their everyday business more efficient, more productive, and more transparent through significant process standardization

While private customers expect high digital demands in their "customer journey," it can be that many other actors (e.g., authorities, property managers, etc ...) do not meet this demand, which in turn affects the image of the real estate agent.

In the race for the no. 1 real estate agent of the future, it will be decisive which actors respond adaptively to customer needs and at the same time shape this "customer journey" through a leading function in the real estate industry on their own initiative.

Lower emotional and financial barriers on the customer side and technological possibilities on the market side will mean that the rental business can be mapped more and more digitally, or the real estate agent’s role in the purchase business will change step by step. But hey, we are not a futurology institute. And again - The new digital generation of customers will decide. Welcome to the digital world!

Register now for our newsletter and get the latest updates on our product.