The journey of transforming a piece of land into a profit-making asset is a time and resource-consuming one. Lucky for you, the implementation of artificial intelligence in real estate has optimized multiple sluggish aspects of the industry. From efficient construction to optimal property listing and even brokerage assistance AI has been a lifesaver. Details ahead!
With millions of properties being constructed and listed every year. The need for artificial intelligence in real estate is rising as well. AI can help you optimize your real estate needs in multiple ways. According to market.us, The Artificial Intelligence Market is projected to grow exponentially over the next decade, and it is expected to grow around USD 2,967.42 billion by 2032 from USD 94.5 billion in 2021 at a 36.8% CAGR.
AI can assist you to design an efficient blueprint for your property to help you sell the finished building on the marketplace without the assistance of a broker. Even as a buyer, you can take advantage of AI to find the perfect property that aligns with your requirements. Artificial intelligence services may also help you manage multiple properties that you own.
The use cases for AI in real estate have been growing drastically. With more and more properties being listed it is really difficult to keep track of such a large number of properties by manual efforts. AI has been helping the end customers as well as the agents who broker deals to multiple clients in optimizing their part of the process. Let’s discuss this further in the coming sections!
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With a spike in the number of listings every hour by thousands, AI in the real estate industry is gaining a lot of data about people’s buying and selling patterns. This is further optimizing the AI engines to match the right homeowners to the right investors, and you know the best part? In most cases, this is achieved without the need for any middlemen.
Although the agents have been taking advantage of AI in their own ways. Many have been using AI to gain leads about customers and to filter out genuine buyers from casual window shoppers. AI also helps them to provide buyers with a larger domain of options. This makes the implementation of AI favorable for the agents as well as the customers. However, this is just a small fragment of all the use cases AI has in the real estate jungle. Let's dive into an in-depth discussion of AI in the real estate industry with Analytics and Machine Learning in the next section.
At first glance, it may seem that AI has only a limited number of use cases in the real estate industry. But you’re gonna be surprised with what it has to offer. The use cases for artificial intelligence in real estate reach the far ends of the industry's integral functions. Let’s discuss them!
Now, we know it’s hard to differentiate between a potential buyer and a “casually checking out the prices for later” person. Real estate agents struggle with this problem almost every day. They sometimes spend hours understanding the intentions of the person they are talking to. This is because having a direct approach to asking: “whether they want to buy or not” seems like an aggressive approach. And it most certainly ends with a negative response.
This is where AI can come in handy. It allows the agents to create listings of the properties with detailed specifications. These are accessible to both genuine buyers and window shoppers. So everyone has access to a detailed description of what the property has to offer without bothering the agent. Pretty cool right? This is just the beginning. Let’s see what more AI has to offer.
When it comes to capitalizing on the content the customers willingly provide us, there is nothing as good as AI. Whenever an individual is searching for a property or let’s say discussing their needs with an AI-based chatbot on a specific listing website, they are providing us with the data about what they need. AI can analyze this data and make a list of properties that will align with the customer’s needs. These properties can then be displayed as personalized ads to increase customer engagement, with the eventual goal of leading to a successful purchase. This will benefit the customer as they can directly get the property according to their niche with minimal effort. And pretty evidently, the happier the customer, the better the business reputation.
Now as an individual who is trying to sell a property the most difficult situation comes around when trying to decide on a price tag for your property. What if it’s too low? You will regret that you could have gained more from it. What if it is too high? No one will be buying it off your hands. What if the price suddenly spikes in the coming years? You may want to hold on to that property for a bit longer. The issue is that the market is dynamic and the prices are constantly changing as well. What is the seller supposed to do in this situation? Yep. AI got you covered. With the implementation of Data Analytics which we previously discussed. We can perform short and long-term predictive analysis with reliable accuracy. It can give the seller an estimate of what could be the correct price range by analyzing the current market state. It may also suggest whether it would be wise to hold on to the property for a bit longer or not.
Now let’s say the seller has listed the property at an appropriate price with the help of AI. Now what? The process is just halfway done. Finding the right property is just as challenging as selling one considering that there were over 750,000 active listings in the US alone during November 2022.
It’s overwhelming to see so many options. But the issue with normal listing is that it is limited to a few filters. Looking into the niche details of the property is only something an AI solution can do effectively. With AI you can go into very specific details like “a property with a hospital and a school nearby”. And the AI solutions will show you the results accordingly. This is just a small example of how being specific about your needs, you can go further into details and AI will show you results accordingly. Now we know what you are thinking. “I am going to try and search for real estate properties near Brad Pitt”. Won’t work, we’ve tried. (‘:
We know augmented reality links digital information with real-life objects which makes it super useful for AI and real estate. AR can be used to generate virtual tours of a real estate property with pieces of information about specific features or appliances that the buyers can get with the property. For example, wooden flooring, contour kitchen, access to thermostats, and others. This allows the buyers to have an in-depth tour of the property remotely with the most appealing features highlighted.
When dealing with multiple properties managing the paperwork for each one of them, tracking the finances, and maintaining an organized system for everything can be a hassle. Thanks to AI, all of this work can be done with little to no effort. The AI can automatically push scheduled notices or reminders for the payment of the lease or mortgage or any such established agreement between the tenants and the landlords. With the help of image recognition, AI can easily detect if there are some missing fields in the paperwork that needs to be filled. Artificial intelligence can also help to store all of the paperwork in an organized and secure way for future reference.
We discussed mortgages in the previous section, right? AI can help in automating the paperwork with predefined templates every month. People take loans for various reasons in the real estate industry. It can be for construction, purchase, maintenance, or something else. Using artificial intelligence in real estate money lending can be useful to track the loanee’s credit score and overall digital footprint. By implementing machine learning for real estate tracking the lender can make sure that the loanee has no suspicious market activity that may lead to a fraud attempt. The lender can further use ML to analyze everything to change the terms of the loan to secure their returns.
The use of Artificial Intelligence in real estate can help investors automate multiple aspects of the investment process. By analyzing market trends to find changes in real estate prices AI can help investors decide which real estate may give them the highest ROI. Perform background checks on the sellers using machine learning to confirm that the people you are dealing with are legitimately linked to the property. You can also use AI-powered systems like CMS to contact property leads efficiently.
Okay, we have finished the difficult part of purchasing a suitable property to live in. But now there is another problem, the electricity bill is way too high. With the proper implementation of IoT-based devices and machine learning applications, the property owner can get a detailed report about the entire power consumption. There it can be easily pointed out what parts need to be taken care of to maintain a normal bill. By using artificial intelligence in real estate you can get insights into irregular trends in power consumption patterns based on multiple physical factors.
Now that everything is settled let’s ask AI for one last help and that is improving our quality of life. AI got this covered as well. The IoTs we mentioned can do a lot more than just give us our power consumption reports. AI in real estate can do wonders from home automation to automated medical alerts. It can be so useful for a better and easy life. With the help of natural language processing, the AI can turn your property into a part of your family that can understand your needs and helps you in case of emergencies.
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If we look at the real estate industry now and compare it to what it was a couple of decades ago, we would find out that AI has been the pivotal factor. With the entire process being automated the buyers and sellers have access to more options and exposure respectively. However, some people may argue that the increasing use of AI in real estate or any sector is leading to increased rates of unemployment. Although this is a situation that needs to be addressed, it can never be a good enough reason to discard AI completely. The main factor we need to keep in mind is that AI is doing monotonous and repetitive jobs. This gives the human race an opportunity to use its creative side and contribute towards evolving the real estate industry.
Let’s address the situation of the real estate market and the agents being unemployed in the next section.
The short and direct answer to this question is, no. No doubt artificial intelligence in the real estate industry has been making some drastic changes in the efficiency aspect using machine learning, big data, deep learning, and other algorithms. However, they will always need a supervisor or agent to physically assess the entire property.
The correct approach would be that the agents should take advantage of these AI technologies to provide their customers with a better-than-ever experience of the real estate market instead of looking at it as a competition. Algorithms like the Zillow estimate and others have made it way easier for real estate agents to analyze multiple properties’ values to make sure that the customers can get exactly what they are looking for. Curious about this new Zillow estimate you just heard? Let’s talk about it!
Zillow estimate, commonly termed Zestimate, has been around since 2006. Zillow offers a service that gives you a rough estimation of the value of your property. It does this based on previously made transactions or tax filings of the property. It has been popular amongst people because the idea of getting the valuation of your property sounds like a fascinating idea to many people.
However, considering it a game-changer would be wrong. The way this algorithm works has many ifs and buts towards its accuracy. We can think of it as a rough estimate at best as numerous factors decide the value of a property that is not considered while filing these taxes or was non-existent while the property was bought. Let's take an example. Consider you bought a property in a suburban area, 5 years ago and you have been paying its taxes ever since. Last year you renovated your entire property. Let’s say there is an identical house across the road that did not do any such renovations. According to the Zestimate, both properties will have equal values which is not accurate as the buyer would value your property more than the one across the street.
Although the company does not claim to be 100% accurate, many people take their estimates as a standard value for their property which in reality does not provide them with a smooth experience in the entire transaction process. However, there are other resources to use while evaluating and operating in the real estate market. Who knows maybe you can get someone to make one customized just for you. (Hint: We are very good at it! )
Excited to build your own AI solution for real estate? Can’t be as excited as we are to help you! Here’s how!
Use our state-of-the-art AI real estate solutions to filter through millions of listings to find the property that serves your exact needs. Account for factors like budget, location, ROI, and features down to the customer’s very specific needs with the use of our multiple AI filtering and predictive analytics solutions.
Our developers do not just create random filters. We try to put ourselves in the shoes of the customers and think about real-life scenarios to create well-thought-out solutions that can actually cater to the customer's every need.
Find the right customers and offer them the right value for your property with our cutting-edge predictive models. List your property with dynamic price listing to stay on par with your competitive listings in this ever-changing value market.
Our developers also help you make properties stand out. Create V-tours, and install IoT-enabled equipment to boost the value of your property. Use our AI solutions to know when is the right time to list your property on the market and when to hold onto it. This is achieved by modern analytics tools which scan through previous market trends and compare them to the present-day market situation to help you make the right decision.
When we discussed that you can boost the value of your property, this is what we were talking about. You can use AI-based technologies to improve your quality of life. Install automated sensors to ease up your basic day-to-day tasks. For example, AI-based home appliances. Wouldn’t it be great if you entered your house and the temperature was already regulated to the most comfortable setting? Or if the Food you left in for yourself was already heated and ready to be eaten.
Our developers help you install AI solutions that can help a property do all that and much more with minimal configurations. Imagine selling a real estate property with all that. It will yield the customers a good price for sure and it will be sold in no time.
Now you are an expert in implementing AI solutions for real estate as well! However, let’s walk through the key takeaways one last time.
Implementing AI while doing your research for buying a real estate property is always a smart move. It will save you some valuable time that you would otherwise spend researching every listing one by one. You can just mention the specifications, set up a budget, filter the locations, and voila! A list of just the perfect properties is right in front of you. Even as an agent, you can take advantage of AI:
As we discussed, AI-based services have a bunch of use cases in the real estate industry. It can benefit both the buyers and sellers to connect with each other. Some of the important services are
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