From self-driving cars to advanced medical diagnosis, artificial intelligence (AI) has transformed our lives. Even in the entertainment industry, we have already seen preference-based AI algorithms be hugely successful like in Netflix and Amazon.
A growing number of real estate companies are already incorporating artificial intelligence into the buying, selling, and mortgage processes to make real estate more efficient. Artificial intelligence is being used by companies like Zillow, and LoanSnap to assist buyers in finding the right mortgage and house.
Here are 5 ways AI can help home buyers find their dream home:
While home buyers can do an online search for homes by selecting attributes like location, price, square footage and number of bedrooms, the search results would still yield hundreds — or even thousands! — of homes to consider.
AI can further narrow down and simplify the search experience through analyzing a person’s search patterns and creating a more accurate picture of what they really want. For example, in the same way that Netflix recommends a movie or series a customer may like to watch, real estate marketplaces (like Zillow) are able to pull data from a potential buyer and compare it with that of similar buyers to produce a list of properties they actively searched, while presenting them with other properties that match closely their needs.
Another use of AI in real estate is advanced property analysis. As home buyers, the perfect house is more than a “two-bedroom with garage” because there are also many other considerations. With these, there are AI applications designed to offer interactive customer service in real estate websites where home buyers can ask questions like “does the house have a pool?” and “how many cars fit in the garage?”
AI can use image detection and computer vision software to analyze photos of properties in real estate websites to detect key details in photographs such as new kitchens and bathrooms, natural light and window placement, and functioning fireplaces.
Using AI, potential home buyers can evaluate the price of the property they are eyeing in comparison with other properties in the market.
Last year, Zillow upgraded its popular home price ″Zestimate,” with its new algorithm that “imitates how the human brain works.” This incorporates a deeper history of property data such as sales transactions, tax assessments and public records, in addition to home details such as square footage and location. As a result, homeowners can get a more accurate estimate of the property's current value as the Zestimate can also quickly react to changing market conditions.
San Francisco-based LoanSnap uses artificial intelligence throughout the mortgage process, from choosing the right loan type for a borrower to finding a suitable investor. Upon entering basic information, LoanSnap's AI system scans the borrower’s finances and recommends a "smart" loan, which bundles all those payments together so that users can improve their financial health by paying their monthly mortgage.
LoanSnap CEO Karl Jacob says that while the software seeks to close loans within 15 days with AI technology, it also aims to leave consumers in a better financial situation than when they began. The company currently issues loans for mortgages, refinances, and home equity lines of credit.
New home buyers typically view their purchase as an investment, so a more reliable forecast of its future value can boost their confidence in their purchase. Marketplace data can also be used by AI technology to predict the future value of a home based on local information from diverse sources, including crime, transportation and schools.
Understanding the applications of AI in real estate will give home buyers a better sense of the purchase opportunities for them, particularly for those searching for their dream house. AI enables both the agents and home buyers to get a seamless transaction in a win-win situation.