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Real Estate

What is Proptech and how does it help me sell a flat?

So that you can be informed about the news in the proptech world and the process of selling a flat with these tools, here you will find a summary of the most important topics during the month of December 2020:

The coronavirus crisis boosts the proptech business in Spain

Some representatives of important proptech companies in the country such as Blue World city Islamabadhave stressed that the situation of the pandemic may cause start-ups in the sector to accelerate their growth and that traditional companies are forced to bet on digitization . In addition, According to Carlos Blanco, a well-known business angel in the sector, estimates that the country’s proptech will recover in a V shape thanks to technology.

What is proptech?

The term proptech comes from the union of the words “property” and “technology” in English and refers to the use of technological advances in the real estate sector . It is a word with an etymology similar to fintech, which comes from the union of “finance” and “technology”.

But, in a more concrete way, what is a proptech? are companies that use technology to offer services in any of the areas related to housing. These range from the use of new materials, the way to build homes (using 3D printers, for example) or the way we buy or sell a house.

Map proptech what type of companies exist in 2020?

  • Real estate brokers
  • Real estate portals
  • Contact websites between individuals
  • Virtual tours and 360º
  • Real estate online
  • iBuyers
  • Smart homes
  • Real estate software

 

Thanks to proptech, nowadays selling our house online is not something unreasonable . But this does not end there, since it is considered that most aspects of the real estate sector are susceptible to being improved by the digitization of the stages of the processes.

From the technology necessary to create smart homes to the possibility of selling our house online . In the following map we show you the areas where proptech has been applied the most , according to the data provided in the first quarter of 2020 by Finnovating.

Who is who in the proptech world?

Within this sector we can find different companies that make our life easier in the world of real estate:

  • Finance : mortgage brokers such as property newswith which you can compare both mortgages and traditional real estate and online in just one click.
  • Marketplaces , also known as real estate portals, are the web pages that allow us to know the real estate market with ad listings. Here we would find companies such as Idealista, Fotocasa or Habitaclia.
  • Peer to Peer (P2P) , are companies that put individuals in contact with other individuals for different purposes. For example, for housing rental we have Badi and for the sharing economy we find Airbnb.
  • Visual StartUp : these tools are very useful to help us differentiate our ads when selling. These types of companies specialize in virtual tours and 360º photos.
  • Property management, here we find the well-known online real estate agencies that will allow us to sell our apartment with a process practically entirely through the Internet. Housell or Housfy are some of the best known proptech .
  • Investment : in this proptech sector we can find ibuyers , which are real estate startups that help us sell our property very quickly, such as Tiko or companies to invest in housing such as Housers.
  • SmartHome : in this section we would find everything related to smart homes: opening and closing windows through an app , video surveillance or temperature control, among others.
  • Software : here we will find companies that create new portfolio, visitor or customer management programs. They tend to be more focused on digital solutions for professionals in the real estate sector.

How does proptech help you  sell your home?

 

 

The proptech in the sector of the sale of housing is applied in several key respects. And it is that digital applications can be used in practically all the steps of selling a home, whether we sell the apartment from private individual to private or if we do it with the help of a professional.

Real estate portals : on the one hand, we have the well-known real estate portals. These pages receive millions of visits per month and offer free ads to those who sell as individuals. Therefore, they are the ideal option to promote a flat.
Online real estate : now we also have online real estate agencies, which have revolutionized the market the most. These are real estate agencies that use technology to carry out the entire sale process over the Internet. They charge fixed fees for their services and offer plans tailored to the seller’s needs.
Online home appraisal: there are multiple tools on the web that use big data to appraise our home. These are mostly free and very easy to use.
Documentation Management – This is technically not a purely proptech solution  . Many administrations now also allow you to  process the necessary documents for the sale of an apartment remotely. For example, we can request the simple note directly on the website of the College of Registrars.
Virtual visits : videos, 360º tours, virtual reality visits … the tools that allow you to see what a house is like from a screen increase every day and many portals, companies or agencies offer this service to announce the sale of our apartment. This type of action can be very helpful to sell our apartment to foreigners  or potential buyers who cannot visit the house in person.
Digital signatures: nowadays it is also possible to sign a contract without leaving home. The electronic signature has become popular, especially during the coronavirus pandemic. For example, we can sign a deposit contract either with a digital certificate or through specialized companies. These have the same validity as if we did it in person.
iBuyers : these are proptech companies   that directly buy our home in a few days and are in charge of managing all the documentation of the sale. Of course,  selling our apartment quickly  with some of these companies will mean doing it at a lower price than if it were a conventional sale.
Apps to draw the plans:  including the plans of our home in the ads can help those interested to get a more concise idea of ​​the layout of the property. If we don’t have them available, we can draw them ourselves with apps like HomeStyler, Planner 5D and FloorPlanner without the need to move from home.
Virtual reforms : if we are thinking of doing works before selling or even selling to reform, making the changes virtually can help ourselves and buyers to see the possibilities offered by the property. Apps like HomeByMe allow us to add elements and even remove walls to buildings in 3D mode before investing in physical works.

As they are procedures that require less human labor and that allow to automate many of the steps that until recently were done manually, the costs of these processes will be cheaper and their times will be more agile.

What advantages does proptech have in the sale of homes?

The proptech brings a considerable range of options considerably facilitate the process of selling a home . In addition, in general, we can say that prop tech is impacting the market in the following ways:

Improving the seller’s experience in the home sale process, as many tasks can be done online.

Reduction of travel or face-to-face meetings. For example, if we sell the apartment with an online real estate agency we do not have to go to the office to hire it or if we show our house through 360º videos we can avoid unnecessary visits.

Lowering the costs of services. Online real estate, for example, thanks to technology can allow us to charge less money for their services than a traditional one.

Use of cutting-edge technology such as blockchain or big data that, for example, allows housing to be valued and estimates quickly compared. We can appraise our house as many times as we want and have the results immediately.

Greater efficiency, simplicity and speed in each of the sales phases. For example, the bureaucratic procedures that can be done online are no longer so cumbersome: requesting a simple note at the Property Registry can take us less than 10 minutes and we can have it in just 24 hours.

Accessibility that allows a person to decide with agility what to buy, how to sell and to be able to do it from the place and at the time they want.

In short, without technology the process of selling a home can be slower and more cumbersome . On the other hand, with the use of all the different platforms that exist, we can easily put the property up for sale and even achieve the sale faster and for less money.

Online real estate: how to sell your apartment with a proptech?

Online agencies offer various service packages to sell an apartment

Service plans can be paid at startup or with the sale of the house

They charge fixed rates according to the chosen package

Additionally, we can contract extra services not included in the packages

 

Proptech real estate companies have revolutionized the housing sector, since they offer all the solutions of a traditional real estate, but at a lower cost . These companies generally offer two types of plans to sell an apartment: a basic one, to which additional services can be added, and a premium one .

Basic proptech plans Additional or premium services from proptech agencies
  • Home appraisal
  • Ads on real estate portals
  • Marketing plan: photos or plans of the house
  • Buyers filter
  • Drafting of the deposit contract
  • Advice from an agent
  • Visits
  • Energy certificate management
  • Issuance of the certificate of occupancy

As we can see, in order to lower costs, the basic plans of online real estate companies imply that some phases of the process we have to do ourselves. However, since not everyone has the time or wants to take care of the sale of their apartment, proptechcompanies  offer premium plans that involve a more comprehensive management of the sale . Although also, in some cases, they allow us to opt for some additional services that we can contract separately to complement the chosen package.

Of course, as in any sector, the services that an online real estate agency can offer will vary according to each company. For this reason, it is important to know all the steps to sell a home and thus decide what are the procedures that we would be willing to do on our own.

How much does a proptech real estate charge to sell a flat?

It is one of the many expenses of selling an apartment that we must take into account. This is one of the most important and differentiating points between online and traditional real estate agencies, since as it is a highly digitized service, prices are significantly reduced.

In addition, they tend to have fixed costs, not percentage, which helps us save much more. These, at the moment, range between 1,000 dollars and 5,000 dollars , depending on the chosen service plan.