New Year, New Tools: How PropTech Is Redefining Real Estate Opportunities
PropTech is revolutionizing the real estate industry from simplifying property valuation to adding efficiency and transparency.
Jan. 15 2025, Published 2:24 p.m. ET
As we settle into 2025, it's safe to say that PropTech (or "Property Technology") is revolutionizing the real estate industry. Almost daily, it offers new tools and technologies emerge that change not only how properties across the country are bought and sold but also how they're managed.
People think buying or selling a home is as simple as making any other transaction, but it really isn't. Especially for investment purposes, there are massive volumes of data to wade through. There are serious decisions to be made carefully and at the right moment.
You can devote a tremendous amount of brain power to getting it correct in even one instance — to say nothing about doing it over the long term.
But imagine if you could take even a fraction of that time and attention and devote it to more important matters. Imagine if you could automate huge chunks of your day so that you could focus on the tasks that truly need you. That's what PropTech is poised to do, and it's pulling it off in a wide range of different ways, all of which are worth a closer look.
Simplifying Property Valuation
One of the most impactful ways PropTech is poised to alter the real estate market is by integrating artificial intelligence. This new technology is dramatically changing property valuation.
Think about all the data that goes into determining the value of even a single modest property in an area with a relatively stable market. Traditionally, a real estate professional would have to wade through historical data about the entire ownership history of that house. Everything going on in the surrounding area matters. There is also the future potential of the area and what that might do to property values. All this will impact how much that property is worth in a very real way.
This was all manual, that is, until now. PropTech platforms are integrating with OpenAI and other AI tech in droves. Not only can artificial intelligence quickly help make sense of the data required to determine property values in a way that humans could not, but predictive analytics can also help uncover insights into future market trends that may have otherwise gone undiscovered.
Artificial intelligence is also a major benefit to tasks like risk assessment, strategy optimization, property management, and more.
Uncovering Off-Market Opportunities
Paired with the integration of AI, advanced data platforms are equipping investors and real estate professionals to access deals that would otherwise be unavailable.
DealMachine, for example, is a PropTech company that offers mobile and web applications to help investors find and become informed about off-market real estate opportunities. It streamlines the real estate wholesaling process by allowing investors to quickly find and analyze off-market properties to make more informed decisions.
DealMachine notably has an unlimited skip tracing feature, which allows investors to quickly locate property owners and access valuable market data before their competitors can.
DealMachine notably has an unlimited skip tracing feature, which allows investors to quickly locate property owners and access valuable market data before their competitors can.
After a drive around the area, you notice that several properties are exactly what you're looking for, but they don't appear to be on the market. This is where skip tracing comes into play.
By using a combination of public records, court records, social media information, and more, you can determine who owns the property in question. This is true even if it is heavily distressed or outright abandoned. Those are actually the best types of properties to look at, as their owners tend to have a major incentive to relieve themselves of the burden.
At that point, you can contact the owners directly and make an offer, likely snapping up the property before anyone else even realizes it is there.
Adding Efficiency and Transparency
PropTech’s major impact on real estate can be viewed through two key lenses. First, it empowers seasoned professionals to do more with the resources they already have, thus increasing the overall lifetime value they can generate.
However, perhaps more significantly, PropTech is making real estate more accessible and transparent to the everyday person. By leveraging tools like artificial intelligence and data analytics, platforms like Zillow, known for providing comprehensive property listings and market insights, are offering enhanced transparency and helping buyers and sellers make informed decisions.
This accessibility allows individuals to better understand pricing trends, neighborhood data, and property histories. As a result, new opportunities for growth and profitability are being made available to new and seasoned investors alike.
PropTech is Here to Stay
As the months march on and 2025 settles in, you'll continue to see the industry embrace these technologies. This will be true not because of what something like artificial intelligence can do today — but of the potential of what it can do tomorrow. You'll start to see the potential of PropTech to transform traditional real estate opportunities into modern, tech-driven investments.
You'll see people enter the field in greater numbers than ever before.
Make no mistake: we are at a turning point. Those who understand this and see the impending level of disruption as the opportunity it is will do well. Those who fear change and try to hold onto their "old school" ways of doing things will quickly find themselves left behind by their savvier competitors. Truly, it doesn't get much more straightforward than that.
Disclaimer:
This article is for informational purposes only and should not be considered financial or investment advice. Real estate investing involves risks, including potential loss of capital. Readers are encouraged to perform their own research or consult with a qualified financial professional before making any investment decisions.