Within the property industry, many renowned companies have failed to incorporate new technologies into their workflow. However, those who have made technology a vital part of their model, business is thriving. For Frog portfolio company McMakler – Germany’s most well-known and fastest growing online estate agent – true digital innovation in the real estate industry translates to integrated technology innovation, machine learning and in-house developed digital tools. In their recent opinion piece, McMakler advocate that this innovation does not mean the end of face to face contact but instead ensures a superior quality of work and higher customer satisfaction.
The property industry already utilises online platforms, but many are used only when renting and are disregarded when it comes to buying or selling, since owners and buyers tend to opt for an in-person service. McMakler believe that established real estate companies are missing opportunities to offer greater service and precision by using digital technologies. Their solution, in comparison to a classic agent, is to combine digital opportunities with on-site real estate agents to ensure the best possible service for buyers and sellers.
McMakler also advocate that AI presents a large opportunity for the real estate sector. In their own case, they use proprietary algorithms and machine learning technologies to continuously expand their expertise and improve their efficiency. The self-developed algorithm has been trained and applied on numerous sold properties enabling McMakler to automatically value any real estate, better known as short valuation. The McMakler Valuation Team also uses this algorithm as a reference for manual real estate valuations to ensure more precision.
Finally, McMakler maintain that estate agents will also be needed in the property industry, since an in-person experience is something that no software will ever be able to replace. This is why McMakler operate with a hybrid business model – Gathered Data and Machine Learning are paired with the expertise and local knowledge of brokers. According to the McMakler team, “what makes the real estate industry’s Proptech scene so interesting is the combination of modern technology and traditional human expertise… As the real estate sector digitalises, it needs visionaries who will work towards a comprehensive digital infrastructure and to also further educate the wider public on what real Proptech means. It goes far beyond the usage of 3D printers or excel spreadsheets. It is the consequent innovation, collecting and analysis of billions of data points, and the strategic utilisation that will ensure maximum precision and accuracy within the real estate business.”
You can read McMakler’s full article here.