There is one thing trending in the real estate market. If you observe closely, the way investors, buyers, and sellers used to engage with the real estate market has changed. This is primarily due to the convergence of fintech and real estate.
Earlier it was quite a tedious job for the person who was responsible for drawn-out procedures, mountains of paperwork, and frequently difficult approvals. Now, the future of real estate has a lot to do with fintech. If you are new to this term, well, financial technology, or fintech is the one that provides streamlined, accessible, and effective data, and much more,
But the question still remains unanswered as to how fintech helps the real estate industry thrive. Moreover, how does fintech streamline real estate financing, and increase proptech transparency?
Well, let this article be your guide; read below –
The intricacy of real estate transactions has long been infamous. However, fintech is doing a significant job in financing real estate through revolutionizing other industries.
In fact, it has already performed top level over the past years, and here is the truth—At a compound annual growth rate of roughly 25.18%, the fintech sector is expected to rise from its estimated $194 billion in 2023 to $492 billion by 2028. Surely, fintech is the futuristic resource in the real estate sector.
One must also note that fintech platforms and proptech technologies are working together to make real estate finance easier, quicker, and more accessible for everybody.
Hence, it is becoming impossible to overlook fintech’s influence on real estate, particularly in the area of financing, as it develops further.
Now, below are some major examples of how fintech stands as a powerful tool –
The resources of fintech have the ability to streamline loan approval and payment processes. This is one of its greatest benefits which the real estate industry has been dreaming of!
Remember the time when getting a loan for a home required a number of procedures? In fact, people relied on third parties to avoid the load of paperwork, and occasionally weeks of waiting for approval. But fintech has made this process digital.
Today, you have digital loan applications that can be submitted and authorised in a matter of days, sometimes even hours! Moreover, lenders can use automated algorithms that use AI and big data to determine a borrower’s creditworthiness.
You see, by reducing manual errors and speeding up approval processes, this efficiency benefits eventually both lenders and borrowers.
For instance, sites like Better Mortgage are made for fintech services. This site can expedite the mortgage approval procedure and drastically cut down on waiting times. Hence, to alleviate stress and uncertainty, borrowers can now obtain loan offers and complete mortgages fully online.
Talking about real estate investments, the first thing that comes to mind is, ‘real estate investments are meant for wealthy people or organisations’. In reality, real estate investing is becoming more accessible to the general public. With access to fintech, anybody can buy their share!
Here is how fintech can do it —Fintech-powered proptech platforms have made it possible for people to invest small amounts of money in real estate. This means, one can easily purchase shares in real estate developments through crowdfunding platforms like Fundrise and RealtyMogul, giving them access to a historically elite market.
With such a strategy, more people can take use of real estate as an investment route and the entry hurdle is gone!
Another factor about fintech that makes it more demanding is its use of blockchain. But do not worry, if you are tense about the data risk.
Fintech is using blockchain technology to increase security and transparency in real estate deals. In fact, by integrating blockchain technology with real estate, fintech makes title verification easier and reduces the risk of fraud and disputes.
For instance, Propy, a blockchain-based platform lets buyers and sellers conduct safe online transactions. As a result, this brings customers confidence in the validity of their transaction and does away with the necessity for middlemen.
Earlier, terms like ‘data’ or ‘analytics’ felt overwhelming. Now, with fintech, you can easily use big data and analytics in real estate financing. As a result, this gives buyers and sellers the information they need to make wiser choices.
Moreover, you can get precise analysis of real estate prices, market trends, and consumer behaviour is now possible, guaranteeing more intelligent purchases and investments.
By analysing historical data, patterns in property values, and even the possibility for neighbourhood growth, you can now make better decisions in less time as well!
For this, platforms like Zillow can help buyers and sellers make informed financial decisions by providing up-to-date information on property values using data analytics driven by artificial intelligence.
Fintech has expanded into property management in addition to financing. Digital contracts, automated payment systems, and even AI-powered maintenance tools are transforming the way landlords and property managers do business.
Fintech solutions handle maintenance requests, streamline rent collection, and even forecast costs associated with real estate. Property managers may concentrate on enhancing tenant relations and expanding their portfolios because this automation saves them time and money.
For example, the fintech-powered property management platform Buildium streamlines important processes like tracking expenses and collecting rent. Property managers can improve tenant services and streamline operations by implementing such solutions.
Fintech resources will be your go to tool the next time you are stuck with any property finance work. Hence, it’s time to explore the trending tools and make the best use of it!
Are you looking for a different approach to sell your home? Opendoor can do it for you. It’s an online platform that allows homeowners to get an offer in minutes and sell their property in a matter of days.
One cannot deny that trying to get the best offer for your house is stressful. But, with Opendoor, sellers can record a virtual viewing for potential purchasers and avoid the long queue of viewings. What more? Sellers can select their closing date to prevent double-mortgages and double-moves, and Opendoor will even take care of any unfinished repairs.
Everybody wishes to study a property hundred times before investing. But how to make access easy? Well that’s the goal of Roofstock.
Yes, Roofstock makes real estate investing more accessible. With over 16 million single-family rental (SFR) homes in the US and an estimated 13 million new rental households by the end of the decade, its online marketplace is the top platform for investing in this segment of the market.
The platform offers customers a simple method to maintain or sell their portfolio and facilitates large-scale investing for institutional and high-volume clients.
Looking for an alternate loan option digitally? Well, you can access your home equity with Hometap, an alternate loan option. The best part is, you do not have to take on debt or sell your property.
The Boston-based company gives debtors the freedom to settle at any point throughout the ten-year period and gives homeowners a cash infusion in return for a portion of the home’s future value.
Furthermore, Hometap eliminates interest and monthly payments because it is not a loan product. According to the organisation, it all comes down to making homeownership more approachable and less stressful.
From democratising real estate investments to automating loan approvals, fintech has surely made real estate finance easier. It’s obvious that real estate financing will continue to develop, becoming quicker, safer, and easier to access, as fintech breakthroughs like blockchain, data analytics, and artificial intelligence propel the sector forward.
Moreover, the integration of fintech with proptech is transforming the real estate industry. Ultimately, it facilitates participation for all parties, including investors, sellers, and buyers. Hence, one can surely say, fintech has a lot to offer and make real estate investment accessible to all!
The term ‘Fintech’ in real estate refers basically to the use of financial technology. This technology helps to streamline and enhance processes such as loan approvals, property transactions, investments, and property management.
Fintech helps to simplify real estate financing. For example, it automates processes to reduce paperwork, and speed up loan approvals. It also democratizes access to investments through crowdfunding platforms.
Yes, fintech is best known for its accessibility. For instance, it enables real estate crowdfunding and fractional ownership; as a result, allowing more people to invest in real estate with smaller amounts of capital.
Blockchain enhances transparency and security in real estate transactions by creating an immutable ledger of ownership and transaction history, preventing fraud and simplifying the process.
By Proptechbuzz
By Ravi Kumar
