Technologies like AI are being seen as game-changers in the industry, especially during the pandemic that has led to increased adoption of technologies & the embracing of innovation by the industry. Most of the high-end realtors are now incorporating data pipelines and algorithms into their decision-making process, and the results are telling.
AI is a very complicated topic. That might be one of the reasons why the real estate business is one of the last sectors to adopt it. Morgan Stanley states that real estate is the 2nd least digitized sector globally. However, now just like many other businesses, AI is transforming the landscape of the real estate industry. Additionally, according to the Forbes report, AI is estimated to add a staggering 15.7 trillion US dollars to the world economy by the end of 2030.
There are many different ways in how AI is already helping the real estate business. For eg., real estate agents utilize the power of machine learning to respond to their clients more efficiently. Moreover, it also assists brokerages in precisely marketing their listings and enables marketplaces to provide people with accurate data with the least median error.
One of such most significant examples is more accurate Zestimates by Zillow with only 1.9 percent of the average median error rate. Machine learning algorithms allow real estate businesses to analyze and classify the bulk amount of unstructured and uncategorized data. This way, the leading real estate marketplaces become able to offer precise and more detailed values for the property. Bots with machine learning algorithms utilize the power of AI to determine everything from the paint color to home prices that customers are seeking. Analyzing hundreds of thousands of relevant yet unstructured data points with the help of AI allows for:
-KPIs and property characteristics
-Probable economic value for a certain property
-The current standing of the local real estate industry
-The probability of misfortunes in the area, such as natural disasters
-The units supply which is about to be released
By far, the most useful and interesting factor for the real estate industry is property KPIs which allows real estate agents to answer the following:
-How is the property currently being operated?
-How is it being controlled?
-Is the property working the way it is supposed to?
Conclusion:
AI in real estate and its various techniques are becoming smarter day after day. While it’s not possible to predict the exact future, it’s safe to say that it’s going to make things a lot easier for real estate agents, brokers, and investors. With that said, using AI for your real estate business is surely a wise idea that will help you to take your business to the next level.