In the 21st century, the world we’re living in has changed forever. It used to be that several generations were using the same tools, media, and technologies. Now, computers become obsolete just a few years after being created, and technology changes and evolves faster than ever. Such inventions as smartphones and fast internet have changed our reality and every sphere of our lives, including business.
One of the most promising and rapidly developing technologies is artificial intelligence. Thanks to machine learning, computers can work with massive amounts of data, learning from their previous experience, and making complex decisions. AI is one of the most discussed topics in many industries, and real estate is no exception. Even though computers are still far from replacing people in this industry, they can already provide great support, making various time-consuming and complex tasks much simpler. In fact, modern AI is most effective when it works with humans, not instead of them.
Many people call AI a disruptive technology. Artificial intelligence can transform the real estate industry, offering countless unique benefits. In this article, we are going to consider the impact of AI on real estate in more detail.
What You Should Know About AI and Real Estate
“Artificial intelligence” is a term that describes computer systems that can perform tasks that used to require human intelligence. For example, these are such tasks as speech recognition, translation, decision-making, and visual perception. AI-driven software applications are based on machine learning technology. They can make logical decisions and process massive amounts of data.
One of the main areas of application for AI is automation. Thanks to AI, companies can deal with repetitive tasks much faster, with no need to hire additional employees who would work with data manually. Various automation solutions are already used in manufacturing, insurance, healthcare, marketing, the financial industry, and other areas. As for the real estate industry, there are many processes that can become much more efficient thanks to AI.
For example, AI can replace call center operators. Advanced chatbots can answer questions and offer solutions to common problems. AI can also analyze the real estate market and make predictions based on historical data. The ability to analyze lots of information also enables AI to help marketers create perfectly targeted marketing campaigns. Besides, AI can analyze the preferences and needs of your targeted audience, quickly finding a property that will fit their requirements.
How Artificial Intelligence Is Changing Real Estate
1. Property Search
Many people struggle to find a new home that will have the right location, number of rooms, and price. Most real estate sources offer an overwhelming number of options so that homebuyers have to analyze too much information and it becomes difficult to make a purchase decision.
AI can process your customers’ search history and online behavior, quickly offering properties that correspond to their character traits, preferences, and values. In the future, home buyers won’t need to compare hundreds of options. Instead, they will receive options that meet their needs and demands. In addition, real estate agents won’t need to send listings manually because AI can send them automatically based on trigger events, such as marriage, birth, or retirement.
One example of a tool that uses this kind of AI application to match properties to your clients is Mashboard. Check it out.
2. Market Analysis
There are various AI-based tools that can analyze market fluctuations and make predictions, offering investors the most beneficial solutions. Given that timing is especially important in the real estate industry, such tools can also suggest the right moments to sell or renovate a property.
3. 24/7 Assistance
Virtual assistants and chatbots can communicate with people in a conversational manner, collecting data from every interaction, and using this experience to offer better solutions. Potential customers don’t need to waste their time waiting for a response because chatbots can answer their questions in real-time. Investment firms and real estate agents can also use the collected data to generate more leads and increase sales.
Machine learning and natural language processing allow modern chatbots to pass the Turing test. Therefore, people can perceive such programs as humans, allowing companies to offer not only effective solutions but also natural user experience. However, according to statistics, 62% of consumers already prefer communicating with brands using chatbots because, in this case, they expect a quicker response.
4. Targeted Advertising
Not only can AI provide great customer service, but it can also be as effective, if not more effective at attracting clients, than human brokers. Given that AI can study behavioral patterns and preferences of your targeted audience, it can offer the right advertising materials to the right people, increasing the effectiveness of the marketing campaign significantly.
5. Improving the Buying Process
Purchasing a new home is always a stressful process but AI can make it much simpler for both the buyer and the agent. Computers can monitor the buying process and provide real-time notifications so that agents can inform homebuyers about the progress. Besides, machine learning can help agents provide faster closing times, entering the necessary data automatically and ensuring reliable compliance checks.
6. Finding the Best Property
Search engines have already made it much easier for investors to find prospects but AI takes this process to the next level, collecting and analyzing data from previous searches and using it to offer more relevant and accurate results. Analytic capabilities of AI allow investors who search for a specific type of property to find the best options. Moreover, AI-based solutions can predict options that will be available in the future. Some AI algorithms can determine a price before the purchase, leading to more accurate information and giving investors more time to prepare.
Artificial intelligence offers countless benefits for the real estate industry, just as it does with many other industries. This technology develops at a rapid pace. However, AI is still far from replacing real estate agents. Instead, it serves as an effective assistant that simplifies numerous repetitive and time-consuming tasks.
AI-based chatbots can interact with customers, providing 24/7 support. Various solutions based on machine learning can analyze the market and make predictions. They can work with massive amounts of user data, choosing a property that meets certain criteria and allowing marketers to run perfectly targeted campaigns. Besides, artificial intelligence learns all the time. Therefore, the more it works, the more effective it is.
This article has been contributed by Berta Melder.