How Technology Is Enhancing The Property Journey

We live in a digital age, where technology touches and enhances almost every facet of our lives, and the real estate market is no exception.

We delve into how technology has changed how we buy and sell property.

How technology enhances the property buying journey

Technology has been shaping the property buying experience for the past 20 years or more, with the gradual shift to online listings and ultra-professional property photography beginning with the advent of realestate.com.au and Domain in the 90s.

According to research conducted by realestate.com.au in late 2020, property buyers spend 28 weeks, on average, on the buying journey, and technology is playing a greater role than ever in that process. Buyers tend to spend the first 19 weeks of the journey exploring their property options, prioritising their search criteria and then searching for a property. The data suggests much of that time is spent using technology to conduct their own research.

What technology are property buyers using?

With 1 in 2 buyers relying more on their own research when making a decision than advice from others, technology’s role in the way we buy and sell property has never been more central. Realestate.com.au’s study reveals that no fewer than 95% of buyers use online resources, like websites, apps and social media, during their decision-making process. Of that vast majority, 88% use property websites or apps, including realestate.com.au, Domain and real estate agent’s websites in their house hunt. More than half of buyers look for information about estimates or metrics, or tips and advice, with female buyers more likely to search for information on affordability, young buyers looking for moving tips and advice, and first home buyers more likely to search for information about government grants and schemes.

But websites are not the only tech tool improving the property buying process. Buyers are also using borrowing power calculators and property market reports to aid them in decision-making. Property investors are using rental return calculators, while male buyers are more likely to use return on investment calculators for improvements and renovations.

And when buyers have found a property online that they’re interested in and are ready to get in touch with the real estate agent? Technology is still at play, with more than half opting to email, rather than call, the agent.

What role did COVID play in advancing real estate technology?

When COVID came along in 2020, the pace of technological change in the real estate market moved up a gear. Lockdowns and social distancing rules meant that traditional in-person open homes and auctions were off the cards, and technology provided the solutions.

Virtual inspections and technology like FaceTime allowed us to show buyers through properties in Sydney’s inner city and inner west throughout COVID, whether the buyers lived around the corner or overseas. Realestate.com.au’s research shows that virtual property tours were used by around 1 in 5 buyers in 2020, and they helped improve buyer confidence. Compared to listings that only featured photos, virtual inspections were most likely to improve buyer confidence in requesting an in-person inspection and valuing a property without visiting it. Male buyers, as well as those upsizing or downsizing, were especially likely to say virtual inspections had improved their confidence in putting in an offer.

COVID also saw the advent of virtual auctions, allowing buyers to bid on a property no matter their location. Thanks to these technological advances, during COVID, it wasn’t unheard of to sell a property to a buyer who had never set foot in it in person, such as interstate investors or ex-pat Australians who couldn’t return to the country due to border restrictions.

What about social media?

Social media is bigger in Australia than ever before. By the end of 2021, 82.7% of Australians were social media users. Time spent on social media had increased to almost two hours a day, making it our second most popular media activity behind watching television. Facebook is the most used platform in Australia, followed by Facebook Messenger and Instagram.

Given its popularity, it’s no surprise that social media is now playing a role in property buyers’ decision-making processes. According to realestate.com.au’s data, of the 95% of buyers who use online resources in their property buying journey, 22% use the social networking pages of friends and family, 19% use those of property sites and 12% use real estate agents’ social media accounts to aid their decision making.

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The takeaway?

No matter how you look at it, technology in real estate is here to stay. It’s helping buyers navigate the process by arming them with more information than ever before, making it easier and more convenient to find and purchase their dream home. And if it’s assisting buyers, it’s helping sellers, too.

Looking to buy or sell in Sydney’s inner-city or inner west? Get in touch today.