Artificial Intelligence and Real Estate – What You Need to Know

Once upon a time, game-changing innovations would appear once in a lifetime. For example, over 500 years passed between Gutenberg's invention of the printing press and the first digital printer. Not so long ago, generation after generation was adequately working with the same tools and technologies as the generation before them. However, times are changing.

With the rapid deployment of the internet and social media, the world is connected in ways previous generations could only have imagined. Changes, developments, and innovations that once occurred over several generations can now develop in a few years. These rapid developments in technology are reshaping world commerce, and the real estate industry is no exception.

One of the most prominent new technologies of the 21st century is artificial intelligence (AI). AI is the process by which computers are programmed with the capacity to "think" like an intelligent being.

Benefits of AI to the Real Estate Industry

Perhaps the biggest fear of any new technology is whether or not it will replace human employees. However, real estate agents and brokers can rest assured, they will not become obsolete in the age of technology.

In fact, AI is most effective when it's working alongside humans instead of replacing them. The most successful real estate companies are embracing AI and leveraging these new technologies to revolutionize their agencies, generate more leads, and increase sales. There are several benefits of AI to the real estate industry, to include in the areas of property management, data analytics, risk management, and intelligent search platforms.

- Property Management - AI has the ability to help streamline property management. Thanks to its ability to monitor and predict when a home’s maintenance systems need to be replaced, AI can help agents maintain their properties with greater ease. The technology can also keep tabs on geographical rental trends, allowing landlords to raise tenant rates based on current data for their various properties.

- Data Analytics - Software developers are helping agents and brokers use AI algorithms to analyze data to improve various aspects of their business, such as targeted financial, marketing, and appraisals. Additionally, AI technology can set growth and sales goals through an intelligent robot, which can make improvements as data changes to help agents exceed their financial targets.

This will be particularly important when it comes to searching and browsing websites. When combined with AI-based search algorithms, agents will be able to offer their clients broader access to potential listings to meet their needs. AI data allows agents to personalize every customer interaction, connecting your marketing campaign with accurate data and figures that will work best for your potential client at every touchpoint. For example, AI can customize messaging and the imagery it uses based on what's worked well for other, similar clients.

- Predicting Risk Assessment - With AI, real estate investors can eliminate much of the risk associated with property investments. Intelligent AI robots can evaluate a property and perform a comprehensive risk analysis report on it, while simultaneously predicting potential ROI. AI bots can use algorithms to predict loan defaults with the intention of boosting the efficiency of the risk assessment process.

- Intelligent Search Platforms - Given the fact that approximately 51% of homebuyers start their home-buying process online, AI provides an intelligent search platform designed to benefit everyone both agent and client. In the past, real estate investors, agents, property buyers, and sellers had a limited amount of information at their disposal, such as the location and price of a property.

Over the past few years, there has been a shift to AI for most major search engines, such as Google. With AI, potential investors and home buyers can gain access to ROI, neighborhoods, schools, tax/sale history, and other essential details to aid in their home search.

Agents & AI – The Best of Both Worlds

When it comes to the real estate industry, the best chance to secure a sale is to provide clients with a property that's perfect for them. And while AI is helping both agent and buyer/seller gain access to more information, there will never be anything better than a human connection. Even in the world of AI, getting to know your clients will still require talented agents who take the time to talk to clients, interpret their needs, and to find out exactly what they're looking for.

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