As real estate experts, it’s important to look ahead and plan for the future of this industry. Artificial intelligence (AI) is gaining prominence in many facets of our lives – and it has the potential to transform real estate, as well. While we never know what the future holds, we can look at current trends and where they appear to be heading. Understanding the capabilities and possibilities of AI in real estate will set agents and property investors up for success in this changing economy.
There are ways to predict what property prices will do in a particular area. You can observe what businesses are moving in or out, local development plans and historical trends. However, research can be time consuming, and the number of data points our human minds can consider are limited. AI, on the other hand, can analyze millions of bits of data (news, crime stats, new businesses and more) to predict future market trends.
Investors with access to this kind of software have an advantage over those who don’t. AI uses gathered behavioral data, such as user reactions and engagements. Additional data collected includes social map data that connects the dots between users and their followers. Location data analyzing users’ homes and browsing history is also critical. Finally, time relativities exploring users’ changing locations, jobs, preferences and price points add multiple dimensions to the data sets.
With machine learning algorithms and analytics, AI in real estate can help agents personalize outreach, identify promising leads, connect with clients and optimize strategies. For example, using AI-powered lead scoring systems, agents can quickly identify and prioritize hot leads, increasing their chances of closing. AI also offers buyers and sellers a more seamless and personalized experience by analyzing vast amounts of data (everything from market trends to personal preferences). These tools can help them broaden their search to identify the best properties or locations for their needs and navigate the process of buying or selling a home.
AI improves the accuracy of pricing and valuation estimates, too. It can identify the best agents to close the deal based on experience and success rate. These capabilities help buyers and sellers to make more informed decisions and find the right agent to represent them. At the same time, AI can also give home owners and investors a competitive edge in the market by providing live insights into market conditions to identify hot spots and potential investment opportunities. This includes uncovering potential risks and offering advice on how to mitigate them, ensuring a more effective investment strategy.
We all know that utility bills can be shockingly high. Apart from actual use of resources, this can be due to people forgetting to switch off lights or heating when not at home. You can do many things to reduce these risks, such as activating motion sensors and using smart tech to control thermostats remotely. However, AI in real estate has the potential to take this to a whole new level. AI can learn exact patterns of tenants coming and going from the property and arrange functions accordingly. When no one is home, lights and TVs are switched off entirely. Features like heating are linked to the weather and the times tenants typically get up in the morning. When set up and managed correctly, this will equate to lower costs, a more environmentally friendly home and a more pleasant living experience.
Costs can add up when something goes wrong at a property you own. Having a property manager or team of reliable contractors and handymen at your disposal is a good solution. That said, there will always be some problems, especially if you own multiple properties. With AI in real estate, predicting when maintenance will be needed in advance is possible. By analyzing sensor data, AI is able to estimate exactly when care is required and even schedule the work itself. AI could also identify misuse of amenities and advise tenants to prevent the need for maintenance. This feature is particularly useful for landlords with several properties to manage.
Real estate requires clear and effective communication among all stakeholders. But when the industry is traditionally fragmented into disconnected niches, this can be tricky. Luckily, there are machine-learning interfaces. These include things like chatbots on websites, which act as virtual assistants for your clients, and are a great way to deliver personalized content directly to leads. AI-enabled chatbots also ask questions from a lead to collect information. This includes price range, property type and location of interest. Communication also fosters connection between users. Buyers, homeowners and sellers can effortlessly keep up with the latest real estate news and developments in their community and share their journey together.
What’s your take on AI in real estate? Have we touched on all the key points, or is there something we’re missing? Let us know your thoughts in the comments below!