Artificial Intelligence Revolution
Artificial intelligence (AI) has revolutionized numerous industries in recent years, and the real estate sector is no exception. With the help of AI technology, real estate professionals can automate and streamline many processes, making their work more efficient and effective.
Check out some helpful AI tools below!
1. Predictive Analytics
Predictive analytics is one of the most significant applications of AI technology in real estate. It involves analyzing data to identify patterns and trends, which can then be used to make predictions about future events. In the real estate sector, predictive analytics can help brokers identify potential buyers or sellers, predict market trends, and provide more accurate property valuations. For example, by analyzing data such as mortgage payments, home equity, the age of a property, and how long the owner has lived there, brokers can predict when someone might be ready to sell. Such predictive analytics can give actionable insights into trends that point to property potential and higher-quality leads. For example, Smartzip’s proprietary algorithms claim they can predict with up to 75% accuracy the homes that will sell in a particular neighborhood in the upcoming 12 to 18 months. A bold promise, but thus far, one they’re delivering on. Additionally, AirDNA is an innovative (and affordable) tool that gives brokers and investors a powerful way to measure income potential for any property by analyzing the demand, current booking levels, and other factors, as well as predicting estimated rental rates, occupancy, cash flow, and more.
2. Property Search
AI technology can also be used to help buyers and renters find their ideal properties. With AI-powered search engines, users can search for properties based on specific criteria, such as location, price, and property type. AI algorithms can also recommend properties based on a user’s search history and preferences, making the process more personalized and efficient. Some companies are implementing AI tools in their search engines to find the most specfiic properties for each buyer. You can enter data about location, home size, and features like yard size, garage, pool, or anything else you need to narrow your search. Sites like Zillow, REALTOR.com, and even AirBnB are using this advanced technology.
Chatbots are another AI technology that can be helpful in the real estate sector. They can be used to answer basic questions from buyers and renters, provide information about properties, and even schedule property tours. By using chatbots, real estate professionals can save time and streamline their operations while still providing excellent customer service. Many websites have chatbots built in that will send messages to your phone or email, and social media platforms offer services like automatic replies, and ads that are targeted at social inboxes.
4. Virtual Tours
Virtual tours have become increasingly popular in recent years, and AI technology has made them even more immersive and engaging. With the help of AI algorithms, virtual tours can now provide more accurate and detailed representations of properties. This can be especially helpful for buyers and renters who are unable to physically visit a property. Room Plan, an app for IOS and Android can even take a 3D scan of a floor plan and property, to showcase and even make design changes that will be visible in the app. Also, in 2021 Zillow rolled out a new feature for its virtual tour experience that uses machine learning to pull together various media content with an interactive floor plan. The idea is to make it easier for homebuyers to get a feel for a property without actually visiting in person.
5. Fraud Detection
Real estate fraud is a significant problem, and AI technology can help prevent it. By analyzing data, AI algorithms can detect patterns that are indicative of fraudulent activities. This can help real estate professionals identify and prevent fraud before it occurs, protecting themselves and their clients. When trained with mortgage fraud data, AI programs like Darktrace or Monzo, can detect current fraud attempts by matching patterns of changes in the documents. For instance, income fraud is a type of mortgage fraud where borrowers overstate their income to qualify for a higher loan. AI can compare income details with bank statements of the borrower. And then match the patterns with previous data to detect frauds. AI can then alert higher authorities and bank administrators who can validate the borrower application before processing loans. Thus, AI can help the real estate industry to detect and prevent mortgage fraud.
6. Price Optimization
Pricing a property correctly is essential for selling it quickly and at the best price possible. AI algorithms can help real estate professionals determine the optimal price for a property by analyzing data on similar properties, market trends, and other factors. This can help sellers maximize their profits and buyers get a fair price. AI Superior is a company that has established a data-collection pipeline to analyze over one million real estate items and trained a deep learning model on that data, which allows them to Predict market movement, capture temporal dynamics, and notify in case of a significant change.
Despite some of the reservations people have with this technology, AI can be incredibly helpful in the real estate sector. By automating and streamlining many processes, real estate professionals can save time, increase efficiency, and provide better customer service. As AI technology continues to evolve, we can expect to see even more innovative applications in the real estate sector in the future.
Please note, Washington REALTORS® is not endorsing any specific Artificial Intelligence resource or tool. As with any new technology, Washington REALTORS® recommends that you discuss the usage of AI and any possible legal ramifications with your Designated Broker and legal counsel for best practices.
About Jenn Prevost
Jenn Prevost is a Digital Content Specialist for Washington REALTORS®