Prop Tech …. What Does It All Mean?Background, General, Guest Posts
Guest post provided by Property Division
If you’re not already familiar with the term property tech, you soon will be. It’s shaking up the property industry, and whether traditional estate agents like it or not, it looks like it’s here to stay.
Pimlico estate agent, Kubie Gold explains. “The whole idea behind property tech, or proptech as it’s know within the industry, is to give buyers the freedom to climb the property ladder themselves without having to pay additional agency fees.”
Here are some of the movers and shakers in prop tech – some names may already be familiar to you whilst others are comfortably sitting under the radar for the time being.
AirBnB was one of the first companies that really started people thinking about how to book properties. According to Proskips, “Although Air BnB relates to the holiday market rather than house purchases, the idea is very similar to other proptech ventures – all the information you need is there online, all you need to do is click and you’re done.”
This company has developed a strong marketing campaign over the past couple of years, and their adverts are a regular feature during prime time telly.
The idea of Purple Bricks is simple – they use local advisor to show people around properties and liase with vendors and buyers, but they don’t have physical offices on the high street. Because most of the work is online and they don’t have overheads, they’re able to complete the entire process without charging commission.
The company also offers a fully managed letting service, taking care of inventories, check ins/outs and refurbishments on behalf of landlords.
This hasn’t gone public yet, but soon will. The company claims to save buyers an average of £4,000 by working online and advertising properties across all major platforms. Sellers or landlords pay the team a standard fee, and then they go out to take all the photos, inventories and draw up a floor plan which is uploaded online.
Exclusive to London, Nested makes a promise to homeowners that they’ll be able to make a sale within 90 days – if not they’ll give you the money for an interest free purchase on your next property. The company managed the whole process from photographs and inventories to floorplans and decoration, and uses a clever algorithm to help people find their perfect property quickly and easily.
Another one you may have started to hear about, Move Bubble is focussed on the rental market and aims to put the tenant first. The company offers an app that enables potential renters to search for available properties a lot like Air BnB, booking and liaising with agents online.
Although these changes have made some people uncomfortable, You Choose Windows says that prop tech doesn’t have to mean the end of traditional estate agency. “People still like to be able to visit bricks and mortar offices and talk to a real person, not have to do everything online. We’re confident that there’s room for both, so we will certainly be staying where we are for the time being!”
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