The real estate market is in the midst of an unprecedented transformation because of artificial intelligence (AI) and machine learning. The adoption rate for this technology has been steadily growing since its introduction. Here are ways in which artificial intelligence will influence the real estate market:
Real estate agents can use AI to give customers access to more data about real estate. They can use AI to help customers find the right home.
Is it an urban environment or a rural one? Are they interested in living near the beach or in a quiet suburb? Once agents know this information, they can focus on matching customers with homes that fit their needs and desires.
AI will help home sellers price their homes more accurately. They can use AI to quickly determine the value of homes based on factors such as their location, size, features and current market conditions. This can help find the right buyer for the home. AI can also help find the right agent to sell a home.
Real estate agents can provide more accurate information and help buyers and sellers make better decisions. They can use AI to market their business, too.
A title company might use AI to predict when properties will go up or down in value, depending on historical data. Investors looking to buy properties at a discount can use this data. Or it could help people plan where they want to retire --or even decide if they want to move.
Investors, lenders and developers will be better able to predict the future. They'll also be able to use big data to understand how people make decisions and interact with each other, their environment and their communities.
This can help them develop more efficient real estate projects aligned with consumer needs. AI will let these groups get much more granular in their analysis of real estate tech. They'll be able to see where there is demand for housing (or retail space) in specific price ranges or within specific locations.
The real estate market is still far from fully automated. However, artificial intelligence has already made its way into the appraisal industry, as it can help appraisers with valuing homes.
Appraisers will no longer have to spend hours researching and manually checking data points for each house they evaluate. Instead, they can use real estate tech with pre-built algorithms that automatically collect information about a home. It can provide its estimate for worth based on this data analysis (i.e., number of bedrooms or square footage).
Artificial intelligence will change the real estate market in big ways. AI can help home buyers find the perfect home and sell it for the highest price. It helps real estate agents be more efficient and effective at their jobs. Title and escrow companies can reduce their costs with AI.