As with any trend, companies are racing to establish a presence in the PropTech industry. The future of real estate is changing quickly due to innovations in technology. Consumers are demanding simplicity and immediacy and companies are taking note. The following 5 are promising businesses to watch in 2020.
Top PropTech Companies in 2020
Based in San Francisco, Opendoor simplifies the homeowner process to allow users to purchase or sell a home on their app. The company pays for the houses in cash, closing in less than two months, and then resells them to customers. If an individual isn’t satisfied, they have a 90-day buy back option.
By utilizing technology to simplify the process, Opendoor aims to help people move on to their life through their housing choices. Customers have the ability to get an instant offer on their home from the company. After reviewing options, the customer then has complete choice in whether they sell their home to the site or decide to list it, where the seller will be given support from industry experts. Opendoor’s goal is to eliminate stress from the listing situation through a safe and reliable home selling service.
HOVER is focused on providing customers an accurate representation of the space they could be living in. Using 3D technology, the company creates interactive models of all houses listed. The idea of homeowners visualizing themselves in a space, rather than looking at photos of a property, strengthens the selling potential of the listings. HOVER strives to redefine the homeowner experience by offering as much truth and transparency about each house as possible, catering to the 70% of buyers using real estate technology to look online for home.
Besides recorded measurements being used to decide on if the home is the right size for a family, individuals can also use the measurements to decide on design elements for their home. Various products and materials can even be purchased directly through the app. It is also possible for customers to use 3D technology to visualize what a certain feature, such as a new roof or windows, could look like on a house.
Proportunity is a financial tech company. The company continues to grow and recently raised a large investment to strengthen its analytics and lending platform. These things use AI to sort through data and loans to offer to buyers. This London based startup labels itself as one of the only “Help to Buy” businesses available. The company makes money on its equity loans which are linked to a home’s appreciation, meaning everyone makes money when the value increases.
The company helps buyers with lower deposits and more favorable interest rates. Customers only need to put down 5% instead of the traditional 20%. The technology sifts through market listings to find the best deals for customers, often looking at which homes have been discounted significantly since they were first listed. Additionally, Proportunity introduces buyers to independent mortgage brokers who can offer honest advice.
Saurabh Saxena, the founder of Houzen, intended to build something similar to a stock exchange. The technology would allow for supply and demand to be updated constantly and deals close quickly. Similar to how new building technology is improving systems and sustainability, Houzen’s technology aims for efficiency.
Houzen is designed to match tenants with landlords. The system uses an algorithm to find the right tenants through data-driven analysis, such as a consumer’s willingness to pay. Houzen’s goal is to optimize revenue. Landlords have the ability to rent properties in real time, similar to how airline tickets are sold, which allows for no accidental overlap or empty spots.
Think of Compass as an overview of everything you could possibly need to know about the house you are looking to buy. This PropTech company is an end-to-end platform that offers support throughout the entire buying and selling process. Compass operates in 10 regions across the country, from New York City to Los Angeles.
The website offers detailed information about the neighborhood a customer chooses. For example, attributes like pricey or great weather are listed as well as information on the neighbors, what to expect, and the lifestyle. Compass even includes commute times to major cities from the selected neighborhood. All of this information is compiled in an easy to read list with pictures of the area.