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What You Need to Know About Real Estate Tech in 2021

Real Estate Back Office

2020 was a crazy year dominated by the pandemic and a record hot real estate market. Despite the record year, though, if you’re like most, you’re probably happy 2020 is over.

But, what is 2021 bringing? More of the same—or a whole new challenge?

Likely, 2021 will see the continuation and expansion of key real estate tech trends seen in 2020—like consolidation, modernization, increased efficiency, and more cloud-based tech. Want to learn more about the top real estate tech trends for 2021? Here are four you need to know to have a great year.

1. Modernization

businessman hand working with modern technology and digital layer effect as business strategy conceptOne of the biggest tech trends in real estate for 2021 will be modernization. While real estate has lagged behind other industries in terms of tech adoption, 2020 saw dramatically increased tech adoption in both commercial and residential real estate. Those brokerages who adopted technology were better able to adapt to the challenges of the pandemic.

It’s never been a better time to evaluate what systems you can put in place to streamline things.—Jonathan Peterson, T360

And, the increased tech adoption isn’t likely to go away once the pandemic ends. Andrew Chishchevoy, Co-Founder and CEO of Brokermint, says “the biggest mistake brokerages can make at this point in time is to think when the pandemic is over that it’s automatically going to shift things back to the way real estate used to do business.”

In 2021, real estate will see continued modernization through greater tech adoption. However, not all tech will help your brokerage modernize to keep up with and surpass your competition. You need the most updated technology to compete.

That’s why Jonathan Peterson, VP Broker Tech at T3 Sixty, recommends, “doing an annual assessment of what your technologies are. There’s so much innovation happening and so many interesting technologies out there in the marketplace that can make things so much easier. It’s never been a better time to evaluate what systems you can put in place to streamline things.”

With so much innovation in the real estate technology space, new solutions are created all the time. If you want to be competitive in 2021, you need to adopt not just modern technology, but technology that has already grown up a little. Look for systems that have started to take hold in the industry. You don't want to jump on board a start up that folds in another year.

2. Consolidation

Portrait of a cheerful businesswoman sitting at the table in office and looking at cameraAlong with modernization, 2021 will also see increasing consolidation of your brokerage tech stack. Instead of having seven different tech solutions to manage the back office, the most successful brokerages have one consolidated system doing it all.

Having multiple solutions instead of one consolidated option not only costs more, it also makes it difficult for your team to get the job done. So, instead of capitalizing on the booming real estate market, your team will be fighting your seemingly endless tech systems.

Andrew Chishchevoy adds that “technology to run your business is a bare minimum for 2021. Ideally, you should have a consolidated setup because that consolidation allows you to unlock growth. That’s where scalability comes in.”

When you consolidate your technology, everything in your brokerage runs more smoothly. So, you and your team can focus on growing your brokerage. And, not only matching your competition but exceeding them. To be successful in 2021, you need to consolidate your tech stack.

3. Increased Efficiency

Portrait of a smiling customer service representative with an afro at the computer using headsetAlong with modernization and consolidation, another real estate tech trend for 2021 is increased efficiency. In 2020, brokerages did more transactions than ever before. However, trying to do more with the same staff and tools hindered many brokerages and exposed inefficiencies.

According to Andrew Chishchevoy, “2021 is going to help brokerages realize the next level of operational efficiency. And, these tech-enabled brokerages will outcompete other brokerages because of that. They’re going to have a better setup and a better way of running their business” because they adopted tech that will increase efficiency.

So, fixing these inefficiencies and increasing how many transactions brokerages can do will be a tech trend in 2021. Some ways technology can solve inefficiencies is with a streamlined transaction management system, automated commission calculation, and integrated accounting tools.

Those brokerages that adopt technology to increase efficiency in 2021 will rise to the top, while those who don’t have this tech advantage will struggle this year and beyond.

4. Cloud Technology

Man using a laptop while having cup of coffee in cafeThe fourth real estate tech trend for 2021 is the increased importance of cloud-based technology. While it is the standard for personal things like photo and music storage, real estate technology is only now adopting the cloud. Many solutions still use desktop-based tech that limits what you can achieve.

While real estate has always been a mobile job, the rise of widespread work from home has increased the need for solutions that can go anywhere. Your agents likely do little of their work at their desks. So, you need tech that can keep up with them, wherever they are.

Andrew Chishchevoy sees “the opportunity in 2021 is having a complete cloud-based solution you can access and utilize from anywhere you have an internet connection.” So, in 2021, it doesn’t matter where you work, you should be able to access your tech on any device in any location with internet.

Adopting cloud-based technology can put you ahead in the fast-paced world of real estate. Those who don’t won’t be able to be productive in the new normal, causing them to fall behind other brokerages. If you want to get ahead in 2021, having a cloud-enabled tech stack is a must.

Wrapping It Up

2021 is already seeing a continuation and acceleration of 2020. While the pandemic will hopefully be under better control this year, the real estate market is showing no signs of slowing down. So, you and your team need to be prepared to meet the demand in 2021.

2021 is going to help brokerages realize the next level of operational efficiency. And, these tech-enabled brokerages will outcompete other brokerages because of that.—Andrew Chishchevoy, Brokermint

The best way to make 2021 your most successful year is to adopt real estate technology. This year’s technology trends revolve around modernization, consolidation, increased efficiency, and cloud technology. If your tech stack meets all these trends, you’re in a good place to surpass your competition.

While many brokerages have updated to a more modern and consolidated front office tech stack, your back office tech likely lags behind. Having a large, disorganized back office tech stack can make it impossible to be on top in 2021.

So, you need a modern, consolidated, and cloud-based back office solution that increases efficiency, like Brokermint. An easy-to-use, complete cloud-based solution for the residential back office, Brokermint has everything you need to set your back office up for success. With 5 modules – transaction management, commission automation, accounting, agent management, and reporting and analytics – and integration options, Brokermint can meet all your back office needs with one platform.