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Customizable Solutions Preferred

Developing technology internally can be extremely costly and always requires a lot of effort.

When it comes to the types of proptech tools that organizations prefer, 33 percent of respondents said they prefer customizable solutions. Another 27 percent say they prefer off the shelf solutions and 14 percent are going at alone by developing technology and proptech tools internally. A quarter of respondents aren’t sure what kind of proptech tools they prefer, if any.

For real estate firms embarking on a proptech journey or for those that may be evaluating new tools, Roseman’s advice is simple, regardless of the size of the firm: Don’t build it yourself! He recommends that firms find best-in-class tools that solve the top five problems they’re facing and make sure they all can “play nice with one-another and tie them together”.

Developing technology internally can be extremely costly and always requires a lot of effort, according to MetaProp’s Block. Even more concerning, it can distract organizations from their core business.

“If you’re not doing it right, the road is fraught with potholes,” Block cautions.

However, Block also acknowledges that many real estate experts increasingly feel that developing proprietary technology is core to the investment management business. “Ultimately, I think the folks who don’t do will be left behind,” he predicts. “Just because it’s hard doesn’t mean you shouldn’t do it.”

Completely integrating various types of proptech is also hard to do. That’s why only 15 percent of survey respondents say their tech tools are fully integrated. The findings support the idea that most organizations have achieved minimal integration—28 percent say they’re partially integrated and another 19 percent say they’re slightly integrated.

Integration may be the ultimate goal for proptech providers and users, but it’s “really tough to do, especially since technology is constantly changing,” Wilcox says.

Similar to the roadblocks to technology adoption—fears of choosing poorly or something b better coming along—real estate organizations are hesitant to commit to the resources necessary to integrate various tools.