Artificial intelligence has grown in magnitude since the first program was written in 1951. Modern iterations of AI are what allow things like social media monitoring, self-driving cars, and smart assistants to function. The same technology that makes those possible also benefits the real estate industry.
The utilization of artificial intelligence in real estate allows for better sales, quicker lead generation, and much more. It's also integrated into technology that the industry uses, such as augmented reality.
But what does the future hold for AI and real estate? What are some of the trends to keep an eye out for?
First and foremost, it's important to know what artificial intelligence is and what it isn't.
Artificial intelligence refers to the simulation of human intelligence in machines. Ideally, this would look a lot like the robots people see depicted in movies and television. However, the reality is much more complicated and less fantastical.
Most computer programs work off a case of the conditional statement "if this, then that." In other words, if a certain thing is present, then the program does something in turn. A good example of this is double-clicking something on your computer's desktop which in turn opens that program.
In contrast, artificial intelligence is meant to work by itself by analyzing information and executing a string of tasks in response. Taking this further, machine learning involves these computer programs learning and adapting to new data.
Artificial intelligence is about more than queueing up tasks to avoid busy work. It can bring a lot of power and streamline the real estate industry, both for the agents and their clients.
One of the benefits of artificial intelligence has to do with the customer side of the process. Most people looking for homes to buy generally know what they want but have difficulty finding something in their area.
Maybe the house is a match, but the yard is way too small. Or perhaps the building is in dire need of extensive renovation or repairs. There's also the chance that the perfect house is out there, but the owners have yet to put it up for sale.
Artificial intelligence can queue up a list of properties for clients based on their preferences and previous viewings. This can help save time they would otherwise spend searching manually.
Another aspect AI can help with in real estate is in lead generation. Too often, your website will receive dead leads or visitors shopping around for realtors in their area. Some people will even visit real estate marketplaces to browse around with zero intention to buy.
Deep learning algorithms can help agents sift through the masses and find people who are actually interested in purchasing a home. For example, AI Chatbots can gather information from customers, such as their price range and what types of properties they want.
In addition, fully-automated social media management tools can attract more leads and create a more substantial presence on social media.
The real estate industry relies heavily on mortgage lending to function. Artificial intelligence offers numerous ways to speed up that process and get more people approved to purchase homes.
Certain programs can help banks sort through and check all the necessary paperwork before a person can get approved for a loan. They can make sure that there aren't any mistakes with this data.
Not much human interference would be necessary. That means banks can save money on extra staff and save time overall for everyone involved.
Anyone that owns or deals in real estate can benefit from better management using AI technology.
For example, a property owner can analyze the latest rental trends in their area, changes in demographic, and whether or not they're making the most of their property. Your program can verify any concerns you have about gentrification or if you need to change your rent prices to match your competition.
One of the biggest strengths of artificial intelligence is its ability to track small changes in the market and predict patterns. In real estate, it's important to anticipate market fluctuations and adjust for them.
Normally, you can assess a property's value based on factors you know. These may include the cost of nearby properties, added value due to renovations, and more.
Artificial intelligence can do all this much faster and for multiple properties at a time. The right software can save realtors a lot of time.
Developers are constantly making changes and upgrades to how AI works and what it is capable of. In particular, machine learning is expected to allow AI to do things like analyze human behavior, discover complex relationships and patterns, and improve the industries utilizing it.
Currently, AI can triangulate information to predict homes likely to go for sale. Real estate agents can use that insight to stake out listings ahead of their competition.
Zillow is one company already making use of AI through its "Zestimate" tool. They claim it uses neural networks that work similarly to how the human brain works.
Augmented reality is another way both realtors and consumers can tailor their home-buying experience. Using your phone, you can scan a room, get dimensions, place furniture, and even redecorate the walls. It's the perfect virtual experience for potential buyers.
It isn't enough these days to make use of old, but reliable technology. The use of artificial intelligence is almost a necessity if you work in a highly competitive area. It's equally important to stay on top of new developments specific to the real estate industry.
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