How Cloud Computing is Transforming Real Estate Transactions

November 6, 2023
How Cloud Computing Is Transforming Real Estate Transactions

The real estate industry, known for being heavily paper-based and reliant on in-person interactions, is undergoing a major digital transformation. The disruptive force behind this change? Cloud computing. 

Cloud-based tools and services are revolutionizing how real estate professionals market properties, manage transactions, leverage data, and conduct business across the board. The anytime, anywhere accessibility of the cloud is driving productivity while cutting costs and paperwork. 

As more real estate companies integrate cloud computing, transactions are becoming streamlined for better efficiency and experiences on both the agent and consumer side. This article will examine some of the ways the cloud is changing real estate.

Virtual tours increase exposure

One of the biggest impacts of the cloud can be seen in real estate marketing. 

High-definition, interactive 3D tours of homes can now be easily created using cloud-based software and other hardware, like cameras and more. Agents then showcase these virtual tours on MLS listings and websites.

Allowing potential buyers to digitally ‘walk through’ and experience homes ahead of time increases visibility and the likelihood of selling at the highest price. It also reduces the number of in-person showings required. 

Cloud-powered virtual tours are a major upgrade from traditional still photos or pre-recorded video walkthroughs. They give real estate sellers the engaging, immersive marketing edge needed to compete in today’s market at an affordable cost.

Streamlined transaction management

How Cloud Computing Is Transforming Real Estate Transactions
Real estate concept business, home insurance and real estate protection. Buy and sell houses and online commercial enterprises, residential realty assets.on a virtual screen

From listing to closing, cloud solutions are making formally complex transaction processes more efficient. Cloud-based productivity tools like e-signature services, online document-sharing platforms, and automated forms streamline the completion and exchange of paperwork. 

Rather than printing reams of contracts, disclosure forms, offers, and reports for mailing, faxing, or couriering back and forth, documents can be shared and signed digitally with ease. Transaction checklists, deadlines, and reminders can also be centralized on intuitive cloud-based platforms. This consolidation boosts organization and collaboration when many parties are involved.

Cloud services additionally enable remote accessibility to files for agents, title officers, lenders, and lawyers when working across locations or outside the office. Some real estate brokers use cloud server environments to house all office files and software in one virtual hub accessible to staff anywhere. This flexibility ultimately speeds up transactions and reduces errors.

Big data analytics

One of the cloud’s prime advantages is the ability to aggregate massive amounts of data from diverse sources into one location for easy access and analysis. MLS databases, assessment rolls, comparable sales reports, demographic information—vast amounts of intel that used to take hours or days to gather can now be obtained almost instantly with the cloud. 

Powerful cloud-based analytics tools help real estate professionals quickly parse data like pricing trends, market inventory levels, and buyer/seller behaviours to price listings competitively and guide clients. Cloud computing provides the computing power to process data faster. Data that once only large brokerages could tap into is now democratized.

Economical access to IT resources

How Cloud Computing Is Transforming Real Estate Transactions

On an individual business level, the cloud has opened the door for real estate companies to access premium IT capabilities on an as-needed and affordable basis, enabling smaller brokerages or solo agents to punch above their weight. 

Cloud solutions are subscription-based and scalable, so businesses are not bogged down by the costs of owning and maintaining servers or software licenses. IT resources like data storage, email, voicemail, security tools, phone service, and CRM systems can all be obtained on-demand via the cloud. This ‘pay as you go’ flexibility provides cost efficiency. 

The inherent accessibility of cloud platforms also drives collaboration across companies. Agents can share and synchronize contacts, files, and calendars with other parties through linked cloud services.

Automating tasks with AI

Cloud-powered artificial intelligence (AI) lends itself well to the real estate industry, where many repetitive administrative tasks can be automated. AI tools built and hosted in the cloud are transforming how agents qualify leads, market listings, and conduct transactions. 

Chatbots field buyer and seller inquiries to pre-qualify and schedule showings 24/7. Predictive analytics assess making an offer on a listing against sold comps. Image recognition scans for issues and staging needs in home photos. 

Contract review software flags areas needing verification. These AI capabilities increase conversions and free up real estate professionals to focus on high-level pursuits.

Secure document storage

Document management is one of the more cumbersome aspects of real estate deals. The cloud is creating digital solutions for tracking and storing the enormous number of contracts and records involved with transactions in a centralized and secure manner. 

Title companies and brokers are shifting from physical filing rooms full of paper documents and relying more on cloud databases for archiving files. This allows agents and staff to safely access and share records from anywhere while working remotely. Document organization is also improved with quick search capabilities in the cloud. 

Some companies offer digital transaction management platforms for processing files, building libraries, and managing workflows in the cloud—a major improvement over mailing stacks of paper. Storing sensitive information in encrypted cloud environments provides necessary data security as well.

Better property management

How Cloud Computing Is Transforming Real Estate Transactions
house on virtual screen in man hand

Landlords and rental property managers are tapping the cloud to simplify maintenance requests, track lease agreements, collect rent payments, market vacancies, and screen applicants. Cloud-based property management systems centralize information and tasks like work orders, payments, and legal forms to one convenient hub. 

Owners can remotely monitor things like maintenance schedules and occupancy rates across properties while seamlessly communicating with tenants. Applicants can apply online through integrated rental listing sites and complete background checks through these centralized property management platforms. 

This automation yields significant time savings for managers handling hundreds of properties and tenants.

Improving appraisal process

Home appraisals currently face many inefficiencies—from time delays to inadequate data and lack of transparency. Cloud platforms like appraisal management software streamline the fragmented process at every stage. 

Appraisers can quickly collect nearby comps, builders can order and track appraisal timelines, lenders can get status updates, and borrowers can gain insight. All documentation is digitized and shared through the centralized cloud system. This automation reduces turnaround times from nearly two weeks down to just a few days in some instances—benefitting all stakeholders with on-time closings.

Enhanced market forecasting

Data analytics has transformed from a luxury for major brokerages to an accessible and essential tool for brokers of any size, thanks to the cloud. Agents can now leverage the computing power of the cloud to process market data and derive insights at scale using AI-enhanced real estate reporting platforms. 

Comprehensive market analytics—from pricing predictions and trends to buying behaviours—can help agents recommend appropriate listing prices, gauge seller competitiveness, and develop business plans using predictive modelling. Cloud-based market analytics are more accurate and affordable than ever.

The evolving blockchain opportunity

Blockchain—the technology underlying cryptocurrency transactions—shows great promise to transform real estate by replacing antiquated title records and transaction processes with more secure, transparent, and efficient systems. Blockchain has the potential to reduce title insurance costs and ownership transfer times dramatically. 

Several startups are working on blockchain solutions for tracking property deeds, securing vendor payments, and automating rental contracts. The cloud will provide the foundational infrastructure to build and launch these disruptive blockchain platforms that could upend legacy systems. 

Tech giants are now launching blockchain cloud services. While still in its infancy for real estate, blockchain is worth watching as an emerging cloud-dependent technology trend.

The takeaway

The real estate industry is undergoing a major digital transformation powered by cloud computing. Cloud-based tools are making transactions more efficient, marketing more engaging, and data more accessible. 

Looking ahead, the cloud will provide the infrastructure for emerging technologies like blockchain and augmented reality to disrupt real estate further. While change is afoot, the human touch remains essential in real estate dealings. 

In the end, expanded cloud adoption will empower agents to deliver faster, safer, and more informed service—translating into a smoother experience for home buyers and sellers alike.

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Our AI match engine will match you with over 150,000+ properties and you can swipe away or shortlist easily. Making your home buying journey faster and easier.