Real Estate Document Automation

Introduction

Real estate is by far the largest asset class in the world. But it has been slow to adopt new technology. Now it is quickly catching up and is rapidly transforming. The future of real estate will be driven by digitization. As we move towards a world where everything is connected, automated processes will become the norm.

Real estate transactions involve a lot of documents. A significant amount of information is exchanged between parties during the transaction, including contracts, purchase & sale agreements, leases, mortgages, appraisals, and other documents. This information needs to be accurate and complete so that all parties understand what they are signing and agreeing to. Thus, automating documents has become increasingly important. Automation helps streamline the processes by reducing errors and increasing efficiency.

An “Age of Enlightenment”

The increased adoption of technology in real estate is reflected in the explosion of investment in real estate tech companies over the last few years. In 2021 $32 billion was invested, which, despite the pandemic, was the most of any year in history. ( Source ) Brendan Wallace, Co-Founder and Managing Partner of Fifth Wall Capital, is one of the most prominent investors in real estate tech. He explained why investment is flooding into the space: “I would characterize the last five years as being an ‘Age of Enlightenment’ for major real estate owners, operators, and developers: [Chief Information Officers] were hired for the first time, large IT budgets have been allocated and are growing, and almost every major real estate owner now recognizes that adoption of new technology is existentially critical to their future strategy.”

Digitization in Practice

Real estate companies are digitizing in countless ways. Construction firms are using new platforms to produce 3D digital blueprints. Brokers are creating virtual visit experiences that rival in-person visits. Through online marketplaces like Zillow and Redfin, buyers can bid on properties in seconds. Property managers are using apps to manage units and tenants and AI to find ways to boost revenue and cut costs. Deals are being closed by smart contracts on the blockchain. Although it took some time, technology is becoming ubiquitous in real estate.

Working From Home is Driving Digitization

The pandemic has only accelerated the digitization of real estate. If they are to be able to work from home successfully, employees at real estate companies need their work to become digital-centric instead of relying upon in-person processes. As more employees in all sectors work from home, demand for residential properties only continues to grow. The residential real estate market is red hot and agents and brokers cannot afford to miss a deal because they’re moving too slowly. The pandemic has caused occupancy in offices to sharply drop, especially in cities where many people not only shifted to working from home but moved out of the city altogether. Real estate firms are no longer only competing against one another; they’re competing against workers’ homes. The extra competition means that the experience of leasing and occupying space will need to be better than ever.

The Digitization of Documents

Improvements in document organization and processing are one of the major ways real estate has been digitizing. No matter the subsector you look at – single-family, multifamily, office, commercial – paperwork is an enormous part of the work in real estate. There are offers and counteroffers, contracts, invoices, lease agreements, statements of work – the list goes on. All of this paperwork is starting to be digitized, and people are embracing it. According to a study by the National Association of Realtors (NAR), the vast majority of buyers and sellers are willing to conduct the entirety of a deal, including all paperwork, digitally. ( Source ) Contract lifecycle management (CLM) platforms are replacing filing cabinets as the main organization system in a real estate company.

Automating Document Creation

However, technologies like e-signatures and CLM platforms are only useful if the documents already exist. Real estate firms continue to overlook the huge gains they can attain by improving their document creation processes through document automation. With a tool like EDocGen, firms can quickly and reliably generate the documents they need for their business. Users can create templates in a number of document formats, including Word and PowerPoint. Then with just a few clicks, the system will generate the individual documents by pulling the relevant data from forms, Excel, databases, or other enterprise apps where the data may live. A multifamily developer, for example, could use the system to generate all the monthly invoices that need to go out to their various contractors who are constructing a new property. Once the property is finished and leased up, the property management company could use the system to create the monthly lease statements for each tenant.

The Benefits of Document Automation

1. Speed : Thanks to EDocGen’s easy-to-use interface, templates and documents can be created with just a few clicks.
2. Quality : The more that is automated, the less room there is for human error.
3. Consistency : The use of templates ensures that each document will be designed and formatted identically, which reduces confusion and ensures brand professionalism. The system’s authorization mechanism allows you to grant only certain employees permission to edit a template, which is yet another means to ensure consistency.
4. Gives employees back valuable time : Although real estate is digitizing, this does not mean that it can lose the human-to-human connection. The majority of buyers and sellers still highly value the services of a realtor, and the vast majority prefer to meet in person or use video chat services to communicate with their realtor. Automating document creation gives your employees time to do what only they can do: Provide the human touch.

Conclusion

It is still early in the digital transformation of the real estate sector. Firms that make investments in technology now can gain a competitive edge. Firms that don’t risk being left behind. The good news is that thanks to products like EDocGen, it is easier than ever to upgrade your company’s tech stack. To learn more about how you can leverage the benefits of document automation, book a demo or reach out to us at sales(@)edocgen.com.