News and Views
Technology and Real Estate Negotiation: Tools At Your Disposal
The manner of real estate negotiation has evolved significantly over the years, and the digital age has transformed the way property transactions are negotiated. Technology can be an integral part of the negotiation process, and its impact is evident in every step of a real estate transaction.
The Role of Technology in Real Estate Negotiation
- Streamlining Communication and Managing Information
Communication is at the heart of any real estate negotiation. Real estate professionals, including agents, negotiators, property developers, buyers, and sellers, rely on efficient communication to share information and negotiate effectively. Email, messaging apps, and specialised communication platforms have become essential tools. They enable quick and secure communication, ensuring that all parties involved in a transaction are on the same page.
A Customer Relationship Management (CRM). It enables real estate professionals to manage contacts, track communication, and nurture relationships effectively. The benefits of using a CRM for real estate professionals include improved organisation, enhanced communication, and the ability to personalise interactions based on client preferences. It facilitates task management, manages leads, automates processes, and ultimately boosts efficiency. For those on a budget, several free CRM software options can cater to the needs of real estate professionals. These platforms offer essential features such as contact management, email integration, and task tracking, providing a cost-effective solution for to optimise their client relationships and streamline their business processes. Examples include HubSpot or Zoho CRM.
Additionally, secure document sharing and electronic signatures have become more common in real estate negotiations. While legal documents still require physical signatures, other forms of documents can be signed digitally. Digital signing not only save time but also reduce the need for physical paperwork, making the process more efficient and environmentally friendly. Some real estate agencies in Malaysia have their own form of Enterprise Resource Planning (ERP) software that may incorporate digital signing of forms.
An ERP is a comprehensive software solution that integrates various business processes and functions within a real estate agency into a unified platform. The benefits of deploying an ERP system in a real estate agency are significant. It streamlines operations by consolidating tasks such as property management, client relationship management, financial tracking, and human resources into a single, cohesive system. This integration enhances efficiency, reduces manual errors, and provides real-time insights into the agency's overall performance as well as that of individual agents and negotiators.
ERP systems also facilitate smoother communication between different employees, ensuring seamless coordination in real estate transactions. From managing property listings to tracking financial transactions and streamlining communication with clients, an ERP system becomes a centralised hub that optimises workflow and decision-making processes within a real estate agency.
- Data Analysis and Market Research Tools
Successful real estate negotiation can depend on having access to accurate and up-to-date information. Advancements in data analytics and greater access to information now mean real estate professionals have access to a wealth of data and market research tools at their fingertips.
DataSense by PropertyGuruForBusiness (formerly known as Vantage+) is the premier tool in real estate data analytics for real estate professionals. The platform pairs publicly available transaction data with proprietary data from Malaysia’s leading property portal (PropertyGuru.com) to provide actionable insights.
Users can access real-time market data, pricing trends, demographics and geospatial information. These can help real estate professionals identify new opportunities based on changing buyer preferences, narrow down target markets based on buyer data as well as maximise return on investment over ad spend. Furthermore, the frequency and pricing of transactions within a specific neighbourhood or area point serve as a better indication towards the chances of success at securing a subsale transaction or as a guide for an ideal price point.
These insights are crucial for making informed decisions during negotiations, whether it's pricing a property accurately for sale or evaluating its investment potential. Transaction data can serve as a differentiating factor for real estate professionals in a saturated environment. Actual transaction data can also be used to convince sellers to revise their pricing and is more indicative of real value as opposed to marketplace listings that carry false listings or may be overpriced.
- Virtual Tours and 3D Modeling
One of the most exciting advancements in real estate technology is the ability to provide virtual property tours. 3D modelling and virtual tours allow potential buyers to explore properties in great detail without setting foot inside them.
These tools have become invaluable for remote negotiations, especially when in-person visits are not possible or convenient. They enhance the property presentation and the overall buyer experience or provide a differentiation factor for realtors and developers in a competitive market.
Creating virtual walkthroughs of properties used to be costly and needed specialised equipment. Today these equipment and the hosting platforms are significantly cheaper and affordable, with some platforms also allowing for the use of mobile phones to capture the 3D walkthrough. A common but pricier platform for real estate walkthroughs is Matterport which allows for recording via a 3D camera, a 360° spherical camera, or iPhone. Another decent alternative is Ricoh360 Tour.
Leverage on Technology for Success
In summary, technology has significantly transformed real estate negotiation by enhancing communication, streamlining processes, and providing valuable insights. From CRM systems and secure document sharing to ERP solutions, the digital tools available have optimised workflow within real estate agencies. Data analytics tools like DataSense offer real-time market insights, aiding professionals in strategic decision-making. Virtual tours and 3D modeling have revolutionised property presentations, especially in remote negotiations. As technology advances, its transformative role in real estate transactions continues to evolve, equipping agents, negotiators and property developers with powerful tools for navigating this changing landscape.
If you are keen to overcome business challenges with our property insight tool that leverages Big Data to enable impactful decisions, click the link here to contact our team.
Get started with PropertyGuru For Business
