So what is AI in real estate?
AI, or Artificial Intelligence, is one of the 21st century’s biggest technologies. By 2025, AI is expected to generate $36.8 billion in revenue. Many industries are integrating the work of AI, and real estate is no different. Most recently, the real estate industry has seen a surge in AI technology and its applications in real estate.
The question remains, is it revolutionizing the industry?
What Is AI in Real Estate?
AI in real estate is a relatively new technology that helps “machines” or platforms think, analyze, and make decisions similar to those of humans’. It is argued that AI can be most effective when added to human knowledge rather than replacing it. Real estate investors deal with a tremendous amount of data. AI in real estate helps investors manage data, customize property investments, as well as obtain data-driven insights to make savvy investment decisions.
AI, in general, is still in infancy, but the real estate industry is slowly but surely catching up on the AI trends. So how is AI in real estate disrupting or transforming the industry? There are several ways AI is changing and affecting the real estate industry. As with most technologies, it’s making things easier. What does AI in real estate mean for investors?
AI can help with customization
Today’s age is all about customization, and real estate investors can no longer do with generic choices. With the help of AI in real estate, investors can find better matches to meet their specific needs. Investors no longer have to guess.
With today’s technologies, a real estate investor can find out information like expected rental income and CoC return for a specific property, and also compare these figures for different properties in different locations. AI’s ability to arrange and manipulate data using specific algorithms also means that it can help investors find custom investments. That is, it can help investors find the ideal investment property for their specific kind of investment needs and specific investment strategy.
AI in real estate can help with data collection and data management, and predictive analysis
Prior to AI, real estate investors had to manually find and sort out data from the market on their own in order to identify real estate market trends based on their deductions. Investors also had to heavily rely on their gut-feeling when making investment decisions.
AI has helped real estate investors obtain rich and relevant data for their research. Today, data crunching has become much easier with AI. AI introduced time-saving, effective, and relevant data sources and means to analyze the data. It can identify patterns and make predictions based on the numbers/data available. This makes the real estate investing process much simpler.
As mentioned above, AI not only helps you obtain data, but it also helps with computing it and turning it into meaningful information. Platforms like Mashvisor use aspects of AI, such as data collection and computing, to give real estate investors valuable advice. Mashvisor offers real estate investment tools like the rental property calculator and the heat map to conduct a predictive analysis of investment opportunities. Our intelligent search functions allow investors to make smart and profitable decisions. Do you have questions about Mashvisor? Read our FAQs and learn about our tools.
To start looking for and analyzing the best investment properties in your city and neighborhood of choice with the power of AI, click here.
Related: Using Predictive Analytics Makes Real Estate Investors Rich
AI can aid with property management
Property management is quite a daunting task. Real estate investors, especially ones renting out more than one property, have a lot on their plates. Between marketing their investment properties, screening and selecting tenants, tending to tenant needs, maintaining and renovating the property, things can be overwhelming.
The prospects of AI in real estate and machine learning can prove quite helpful with property management. And according to inc.com, “AI can even be used in the field of property management to monitor vital metrics and to predict when maintenance will be required or when errors might occur. It can even be used to monitor specific geographic areas and long-term trends in crime rates, property prices, and more.”
One example of AI in property management is Levtech’s “Property 365” which helps property managers with finding tenants and vendors. It’s also said to be able to give recommendations about property maintenance, among other things. The future really is here!
AI can give the real estate investor a competitive edge
AI in real estate can also help reduce your costs and improve your efficiency. If you’re an investor selling properties, AI can give you a competitive edge over your competition. It can help you better acquire, analyze, and use data to buy an investment property and then offer it for sale at a competitive price that you can still profit from.
It would only make sense that an investor with the right AI tools gains a competitive advantage over an investor who doesn’t have access to such tools. So make sure to keep up with the latest AI in real estate trends to gain and maintain an advantage.
So is AI really transforming the real estate industry?
To sum up, AI in real estate can analyze data to identify and interpret trends in real estate, predict future trends, and mimic human-made real estate decisions. It wouldn’t be a surprise to see AI grow further in the real estate industry. As time passes, and as AI becomes more integrated within the works of real estate, it may become a necessity rather than just a competitive edge.
Does this mean trouble for real estate investors? Not if they capitalize on AI early on and take advantage of the new technologies presented. So start your 7-day free trial with Mashvisor and subscribe to our services with a 20% discount after to benefit from Mashvisor’s AI in real estate.
Related: How to Be a Successful Real Estate Investor with Mashvisor
How do you think AI will change real estate? Do you think facets of these new technologies are already becoming a major part of investing?