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This article has been translated from our Spanish edition using AI technologies. Errors can occur due to this process.
The opinions expressed by the entrepreneur's contributors are their own.
Did you envision how technology could revolutionize the real estate industry just as it did the banking industry to create fintech and education to generate edtech? Two young Argentinians are answering this question to improve property acquisitions and boost the proptech sector in the region.
Franco Forte and Lucas Díaz founded Mudafy, a real estate acquisition platform that aims to simplify and streamline the entire process of buying and selling a property. The aim is to make transactions easier, more reliable and more transparent. All thanks to the contribution that technology makes in every part of the process.
“It was a bit of knowing each other and getting some experience in the real estate world and when two companies went Mudafy one of the companies was a real estate management system and the other was a real estate portal. The challenge we saw was the experience of end customers and the introduction of technology in this sector. There it was a challenge to unite both parties to improve this experience and create Mudafy, ”says Franco in an interview with Entrepreneur en Español.
This Argentine proptech is present in two Latin American countries and uses CRM, ie its own system for customer management. It mixes the online environment with the offline environment and offers a team of specialized consultants who balance technology and the human factor.
The main goal of Mudafy is to improve the experience of buying and selling a property across Latin America. To do this, they are not only adding technology, but also redefining real estate operating processes.
“As a tech company, some of the characteristics we by definition have in the way we work are almost a requirement in the real estate sector right now, and some of them may be taking a virtual tour. Nowadays, and especially because of the pandemic, it is highly valued not to be exposed to the virus, ”explains Franco.
Image: Mudafy via Instagram
What do you think the real estate market will look like after the pandemic?
"This is super interesting, you might think that what happened in other sectors was going backwards, but we saw that it didn't and that's because the real estate industry has a real need People have to move People have a child, they still need a room, people are getting divorced and maybe each of them needs a new home, ”says Lucas.
The market will be activated after the quarantine, but the key for them was virtual tours.
"We're doing the first part with the virtual tours. At the end of the day, before making the decision, the person wants to go to the property and see what the pressure is on the walls. Check if they are real because this transaction is so is nominally important silver and emotions have to make sure there is no risk, so we observe that there were two months after the quarantine that it slowed down a lot and now everything is reactivating, especially in Mexico, says Lucas.
It is mentioned that interest rates now have an important effect. Lucas says they are at all-time lows so the market is getting a lot of liquidity and that doesn't even have the impact it may have economically.
“Mexico is the second largest country in all of Latin America. Obviously this makes it extremely attractive and again the real estate market has been too active. So it was the ideal place to open Mudafy, ”says Franco.
Currently, Franco and Lucas are observing that the real estate sector is very active. It stopped for a short time when social distancing began and when the pandemic began. Today, however, they are fairly actively watching it and indeed there are demand values for property searches, either for sale or for purchase.
“Today, the demand for search queries on Google or on the Internet is higher than before the quarantine. We see him as very active in the market, but I make it clear that interest rates have a lot to do with it, ”explains Franco.
In cooperation with several real estate companies in the country, Mudafy starts operations in Mexico City. There are 5 mayor's offices in the catalog: Miguel Hidalgo, Benito Juárez, Álvaro Obregón, Cuauhtémoc and Cuajimalpa. They were based on demand and density within the colonies. On average, they chose to work with these alliances, a key point for their landing on the CDMX.
“In terms of alliances with more than 200 real estate agencies, in which there are all kinds, whether reputable but also small and medium-sized, in order to reach more public, we are the perfect ally because we have a lot of access to the people who are When looking for real estate, we work together to find a home for that person, "adds Franco.
The differentiator of this platform is that its value proposition is to provide a better experience for users. That way, any interaction doesn't cause complications for customers, as they understand that transactions generate a lot of emotions. From the first moment they try to understand that not only can they consult a property if they like it, but also see what their real need is, to cover them through their search, to give more options and to advise them which ones The best investment is first and foremost considering their resources and interests.
“Technology helps make the process a lot more efficient as virtual tours mean you don't have to walk straight to the property and spend half an hour or 40 minutes in traffic. They allow you to discard the ones you don't have. " By watching it online there are many solutions that can be added to it. They can offer advice on mortgages, taxes, construction insurance, and a whole real estate ecosystem, ”says Lucas.
Franco exemplified that when you search the internet, there is a 50% chance they'll answer you and a 50% chance they won't answer, and you might have to call again the next day to find the person who knows this trait and with that in mind, make sure they contact you and analyze what you are looking for and investigate traits that match them in less than 10 minutes within the hours that it catches your attention your interests are similar. It is an immediate and effective experience, in a very easy way for them.
"Today we are in both CDMX and Buenos Aires. In the second part there is all of the technology part, the vast majority of our team, and then everything that would be the commercial part of CDMX," says Lucas.
Compared to the traditional real estate experience, however, this is so that each consultant works in parallel and provides services from the acquisition of the contract to the completion of the transaction. It is similar to a production line where a person specializes in that first contact to outline and understand the customer's needs.
“It may be a person who specializes in giving the visit, showing the property properly, explaining the positive features to you and with whom you need to be careful and know how to negotiate to get the price. In addition, we have the legal advisor who is the closing of the deal and the most administrative part, which is one of the most critical parts of buying a property, ”explains Lucas.
There are very important elements to knowing how to choose the right property for you. One of the properties is water pressure. To check if it comes out right, there are endless options on social networks where tips that may seem basic, but they are really important when buying a property. They stress that often the information is not that accessible, and this is the time when a real estate advisor should take action to recommend the transactions or steps to follow in order to distinguish the good opportunities and get the most out of them.
"We are very focused on continuing to grow in Mexico. I believe the next step is to continue growing around it and eventually cover all of Latin America. So we will evaluate all of these countries to achieve the goal," concludes Franco.