The Role of Technology in Real Estate: From Virtual Tours to Smart Homes
Technology is changing the way people buy, sell, and live in homes. From virtual tours that let buyers explore properties online to smart home devices that make daily life easier, technology is making real estate more efficient and accessible.
Instead of relying on in-person visits, buyers can now view multiple homes from their phones or laptops. Sellers can market properties to a larger audience, while homeowners enjoy the convenience of smart thermostats, locks, and security systems.
So, let’s figure out the key technologies shaping the future of real estate.
Key Technologies Shaping the Real Estate Industry
Here are the technologies shaping the real estate industry.
Virtual Tours and 3D Walkthroughs
Virtual tours have changed the way people view homes. Instead of visiting multiple properties in person, buyers can now explore them online.
Dan Close, Founder and CEO at We Buy Houses in Kentucky, shares, “With 360-degree walkthroughs and interactive 3D models, potential buyers can “walk” through a home and get a feel for its layout, design, and space — all from their phones or computers. This gives them a more complete view of the property than just looking at photos.”
To create a virtual tour, real estate agents use 3D cameras to capture detailed images of the property. These images are stitched together to create an interactive experience. Buyers can click through different rooms, view them from different angles, and even zoom in on specific features. The experience is so immersive that it feels like being inside the home.
Virtual tours save time for both buyers and sellers. Buyers can tour multiple properties online without leaving their homes. This makes it easier for out-of-town buyers who can’t travel for home visits.
Sellers also benefit because they don’t have to schedule as many in-person showings, which reduces the hassle of cleaning and preparing their homes for tours. Noam Friedman, CMO of Tradeit, mentions, “Virtual tours have become an essential tool in real estate — especially after the COVID-19 pandemic, when in-person visits were restricted.”
Smart Homes and IoT (Internet of Things) Technology
Smart homes are no longer a luxury — they’re becoming the new standard. A smart home is equipped with devices that can be controlled remotely using a phone, app, or voice command. Smart technology makes homes more convenient, secure, and energy-efficient. Homeowners can control their lights, thermostats, and security systems from anywhere in the world.
Some of the most common smart home devices include smart thermostats, security cameras, smart locks, and voice-activated assistants. Smart thermostats learn your daily habits and adjust the temperature to save energy.
Smart locks allow homeowners to lock and unlock their doors remotely, while security cameras let them check on their property in real-time. Devices like smart speakers can control other smart devices with simple voice commands.
Also, commercial window tinting is becoming a popular addition to smart homes. It helps regulate indoor temperatures by blocking UV rays, reducing the load on smart thermostats, and enhancing privacy. This integration of commercial window tinting with smart home systems allows homeowners to maintain a more energy-efficient and secure living space.
Khashayar Shahnazari, Chief Executive Officer at FinlyWealth, advises, “For buyers, smart homes are more attractive. A home with smart devices is seen as modern, safe, and energy-efficient. Buyers are willing to pay more for a home with built-in smart features, which increases its resale value.”
Sellers can also boost their property’s appeal by adding smart home upgrades before putting it on the market. Real estate agents often highlight these features in property listings, knowing that smart home technology is a selling point for modern buyers.
AI and Machine Learning in Real Estate
AI is making real estate smarter. By analyzing large amounts of data, AI can predict trends, make recommendations, and automate parts of the home-buying process.
For example, AI can help buyers find properties that match their needs by learning from their search habits. Instead of scrolling through hundreds of listings, buyers see only the most relevant options.
David Martinez, VP Enterprise & OEM Accounts at Cybernet Manufacturing, adds, “AI chatbots assist buyers and sellers in real time. These virtual assistants answer common questions, schedule property viewings, and provide instant updates. For real estate companies, AI reduces the need for human customer support, allowing buyers and sellers to get help 24/7.”
Another important use of AI is in property valuation. Traditional appraisals can be slow and inconsistent, but AI can analyze market trends, home features, and location data to give a more accurate price estimate. Buyers, sellers, and agents use these estimates to make smarter decisions. AI can also detect unusual activity in property transactions, reducing the risk of fraud.
AI has had a big impact on the real estate industry. Buyers can make faster decisions with personalized recommendations, while sellers benefit from smarter pricing strategies. Martin Seeley, Senior Sleep Expert of Mattress Company, shares, “Real estate agents have access to better tools for finding buyers and closing deals. AI has become a behind-the-scenes powerhouse that’s changing the way people buy and sell homes.”
Big Data and Predictive Analytics
Big data is transforming how real estate decisions are made. Every time someone searches for a home, requests a price estimate, or schedules a showing, that information is collected as data. Real estate companies use this data to understand buyer behavior, predict market trends, and make smarter investment decisions.
David Loo, Owner of Xpro Auto Glass, mentions, “Predictive analytics is one of the most important applications of big data. It allows real estate companies to predict which neighborhoods will see price increases, which properties will sell fastest, and which buyers are ready to make a purchase.”
By analyzing patterns from large datasets, companies can make better forecasts and target the right buyers with personalized recommendations.
For buyers, big data makes it easier to find properties that match their needs. Real estate apps and platforms use predictive analytics to show buyers properties they’re most likely to be interested in.
Instead of browsing endless listings, buyers are shown homes that fit their preferences. For investors, big data reveals which neighborhoods are likely to appreciate in value, allowing them to make smarter investments.
Big data has given real estate professionals a major competitive edge. Agents can provide buyers with more personalized options, while investors can avoid risky deals. Honghao Deng, CEO of Butlr, says, “Companies that embrace big data are able to make better predictions, attract more buyers, and improve their marketing strategies.”
Blockchain Technology and Smart Contracts
Blockchain is bringing security and transparency to real estate transactions. Traditionally, buying a home involves a lot of paperwork and middlemen, like agents, lawyers, and banks.
Blockchain technology simplifies this process by creating “smart contracts” — digital contracts that automatically execute once certain conditions are met. This reduces the need for paper contracts and human oversight.
Tiffany Parra, Owner of FirePitSurplus.com, says, “A blockchain is a secure, tamper-proof ledger that records every transaction. This means every change, payment, and signature is tracked in real time. Because the system is transparent, all parties involved can see what’s happening at every step. This makes it much harder for fraud to occur.”
Smart contracts are one of the biggest innovations in blockchain real estate. These contracts automatically execute actions, like releasing payment or transferring ownership, as soon as specific conditions are met. This speeds up the buying process and reduces the need for lawyers, brokers, and banks. Buyers and sellers save time and money, and there’s less risk of human error.
Blockchain also opens the door to fractional property ownership. This means people can buy “shares” of a property instead of the whole home. This could make real estate investment more accessible to people who can’t afford to buy a house outright.
Blockchain has the potential to completely change how real estate transactions are done. By removing third parties, reducing paperwork, and providing greater security, blockchain makes real estate transactions faster, cheaper, and more transparent.
Challenges of Technology in Real Estate
While technology has brought efficiency and innovation to the real estate industry, it’s not without its challenges. Here are these challenges.
High Cost of Technology Implementation
One of the biggest challenges of using technology in real estate is the cost of implementation. For real estate agents, brokers, and developers, adopting new technology like 3D cameras, virtual tour software, and AI-based tools comes with a hefty price tag. Smaller agencies and independent realtors may struggle to compete with larger companies that have the budget to invest in these tools.
For example, creating 3D virtual tours requires special equipment, professional editing software, and skilled staff to produce high-quality results. Similarly, integrating AI-powered customer support or predictive analytics requires access to expensive software subscriptions. These costs can be too high for smaller firms, pushing them to rely on older, manual methods.
For property developers, smart home features like connected thermostats, voice-controlled devices, and security systems are becoming essential selling points. But installing these smart features in every home increases construction costs. While larger companies can absorb these costs, smaller builders may struggle to stay competitive. As a result, smaller firms are often forced to delay technology adoption, which can leave them behind in a rapidly evolving industry.
Privacy and Data Security Concerns
With the rise of smart homes and connected devices, privacy and data security have become major concerns. Bryan Dornan, Mortgage Lending Expert & Founder at RefiGuide.org, reveals, “Smart home devices like security cameras, smart speakers, and connected thermostats collect large amounts of personal data from homeowners. If this data isn’t properly secured, it becomes vulnerable to hacking and data breaches.”
For real estate companies, the use of AI-powered tools and predictive analytics requires collecting user data, such as search history, preferences, and property interests. While this data helps provide better recommendations, it also raises questions about how much personal information is being stored and who has access to it. If the platform gets hacked, user data could be leaked or misused.
To address these issues, real estate companies and smart device manufacturers must invest in data encryption, cybersecurity measures, and user privacy protections. Buyers are also encouraged to check for privacy policies when purchasing smart home devices to ensure their information is secure.
Over-Reliance on Technology
Another challenge of using technology in real estate is the growing dependence on it. While technology can make the buying and selling process more efficient, relying on it too much can cause problems. Buyers and sellers may become too dependent on AI algorithms, predictive analytics, and virtual tours, sometimes leading to poor decision-making.
For example, buyers may skip in-person visits after relying too much on virtual tours. While virtual tours give a good overview of the property, they can’t always capture small details like odors, sounds, or the true feel of a neighborhood. Buyers who rely solely on these tours may end up with homes that don’t meet their expectations.
Similarly, AI-powered pricing tools can miscalculate property values based on outdated or incomplete data. If a seller relies solely on these AI-driven price estimates, they might overprice or underprice their property, which can lead to missed opportunities or financial loss.
To avoid over-reliance on technology, buyers and sellers should use a balanced approach. While AI, virtual tours, and predictive pricing tools are valuable resources, they should be used as tools — not as replacements for in-person visits or professional advice.
Final Thoughts
Technology is making real estate better for everyone. Buyers can explore homes online with virtual tours, sellers can reach more people, and smart home features make living easier and safer.
AI and big data help people make smarter choices, while blockchain makes deals more secure. These changes are making the buying and selling process faster, easier, and more transparent.
As technology grows, real estate will continue to improve, giving buyers, sellers, and agents a simpler and smoother experience.
