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Why the Adoption of New Tech in Real Estate Is Slow

Why the Adoption of New Tech in Real Estate is Slow

You cannot deny the impact that technology has had on our daily lives. Companies like Amazon, Netflix, and Uber have made the already simple tasks of shopping, watching movies, and getting a taxi multiple times easier. However, not all industries are feeling the same effects. Real estate, for example, seems to be stuck in time and immune to the far-reaching impact of technology. Contrary to popular belief, however, it is not the tech that is to blame; instead, we should take a look at our own psychological issues.

Technology Is Not Enough; Real Estate Has a Psychology Problem

Inventions alone are not enough to solve any problem. Sometimes, there is a more complex issue at hand that prevents new advances from having an impact. In real estate, some people have psychological problems related to loss aversion; sometimes, a person prefers avoiding a loss over acquiring an equivalent gain. Loss-averse consumers may not want to risk their money on high-value transactions.

Why It Is Hard for Technology to Penetrate the Real Estate Industry

Renting a taxi, hotel room, or movie are all low-risk, high-frequency transactions. People are willing to try new apps like Uber not only because Uber is a cool technology but also because people do not exceedingly fear the risk of something going wrong with an Uber ride. In the worst-case scenarios, new app users will lose small amounts of money.

Real estate, on the other hand, tends to be a low-frequency, high-value transaction. Most people do not buy real estate more than a few times in their lives. Hence, their psychology pushes them to pursue “safe routes” with their transactions. Paying the extra money to an agent who walks one through every step of the way can still be preferred to using a modern, convenient, and tech-focused alternative. That being said, new real estate tech advances can still achieve mass adoption.

Can Propy Overcome the Psychological Fear of Risk in Real Estate?

While there is a risk that comes with buying and selling properties, Propy’s Transaction Management Platform is different from many digital real estate alternatives. Through the use of smart contracts, Propy can automate the entire transaction process in just a few clicks. The platform is easy-to-use and clear enough to make the buyer and seller feel like the transaction will complete in a safe, smart, and automated fashion. Furthermore, the addition of blockchain technology adds a layer of security to the process.

Propy’s platform provides added security, increased convenience, and a more affordable cost of operation. With the Propy Transaction Management Platform, all documents related to the real estate transaction are far more transparent and secure than with a traditional real estate broker. Documents are stored on the blockchain and can never be hacked or altered in any way. To the naked eye, the new platform seems like an obvious choice to use over the traditional method.

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