How does the real estate business change under the impact of AI?
Artificial intelligence has provided many industries with beneficial solutions but does it have any influence on the real estate business? Undoubtedly, the majority of experienced realtors have already incorporated data pipelines and algorithms in the process of making decisions, but the most popular application of AI in this sphere is information management. How does it work and in what way does AI and machine learning alter the real estate sphere? Let’s find out in this article.
Property price prediction
One of the AI applications operating for the benefit of real estate agents helps to estimate the property market value and how its price will change in the future. Machine learning applications take into consideration not only the market data available at the moment but also other important metrics such as crime rate, the presence of facilities, educational institutions, etc. It allows them to calculate a more accurate price for new properties.
AI apps are based on the regression algorithm that analyzes the features of the property offered for sale. It focuses on the area, room number, how old this property is, characteristics of its quality, etc. All this is required to find out the most accurate price range.
It is enough to remember Zillow, the largest real estate marketplace that takes advantage of this technology. It extracts insights from huge databases and makes conclusions on the basis of different data points for every individual home. Other companies that benefit from this innovative solution are RENTestimate that determines the value of rental properties and Airbnb that predicts the probability of booking on the basis of different data.
Most popular apps
All the applications that make use of modern technology do that with the goal to collect information about customers, generate leads for agencies and make marketing campaigns more powerful. The majority of real estate websites add chatbots that can not only assist clients in many ways but also deliver content to them.
There are different tools that help real estate agents in their work. Appfolio collects critical data that allows attracting and retaining potential tenants. The application by Buildium allows managing a property portfolio including lots of different details, while Zenplace Inc has introduced a chatbot to provide responses to users’ questions and make it possible to pay utility bills with its help.
Apps to analyze and recommend properties
Applications powered by AI make it possible for businesses to provide clients with more clear and detailed information about estates. The app has an integrated algorithm that makes property recommendations to clients on the basis of data analyzed.
AI can also be used to check listings for facts. The app analyzes different aspects including transport, educational institutions, facilities located in this area to make listings more informative. It can also verify the existing ads for their genuinity and even the position of the sun during the day to get an understanding of when it catches the most of the sun.
There are also ML apps that help realtors to detect the most successful deals by analyzing lots of parameters.
AI implementation in the Indian real estate industry
AI can also help to cope with different problems including how safe property is upon construction. One of the Indian companies uses technology-powered apps to take care of the environment and the safety of the building process. This app allows identifying risky objects on construction and adding red indicators to them.
The Indian government also uses information technology and artificial intelligence to track land records and make this process modernized. However, small companies also introduce this approach as well. One of the rental platforms uses AI-powered apps to make recommendations of the best properties, while another brokerage company takes advantage of AI tools to connect people looking for a rental property with landlords offering it.
There are lots of beneficial cases of AI use but the most important advantage for the real estate industry provided by it is the possibility to offer potential buyers and tenants virtual tours. Modern customers can see the home for sale without the necessity to turn up there thanks to 3D tours created by realtors. This approach has become a real finding for luxurious properties located abroad or in a big distance from the property for sale. Users can zoom in to get a closer look at some details, switch on the panorama view, make oral notes, and get lots of other benefits. It has also simplified the work of realtors who can save time on showings and use this cost-effective way to offer properties for rent even without the necessity to meet landlords in person.
The importance and endless possibilities of AI and ML have contributed to the work of real estate agents and realtors. The last ones can distribute a great load of their responsibilities between different apps and have more free time for interaction with clients and building brand awareness.