Artificial intelligence (AI) is disrupting industries from marketing to manufacturing, and real estate is no different. AI offers a level of data analysis and scalability that a human team simply cannot match, and is poised to reshape the real estate business in the coming years. Here’s how.
1. Comprehensive, up-to-date property valuations
Real estate appraisal has always been more of an art than a science, as many subjective and constantly shifting elements comprise the value of a property. Today, AI brings science back to the equation, powering digital applications that can parse millions of data points and update them in real time, factoring in life events and systematic machine learning to deliver actionable data. Using this technology, agents and consumers can instantly access trustworthy, accurate property valuations that can be used in the negotiation process.
2. DIY deals
DIY isn’t just for home remodeling anymore; it’s also becoming a trend in home buying and selling. While some homeowners choose to circumvent real estate agents to save money, many often find that they see higher profits with the aid of a professional, even though they pay that professional’s fee. But AI can harness the experience and expertise of a real estate professional and combine it with real time data to empower buyers and sellers to negotiate their own real estate transactions.
Homeowner-derived data is already being utilized in online marketplaces like Zillow and iBuy, and there are even platforms where you can buy and flip properties entirely online. The convenience and accessibility makes these attractive options for the more industrious home shopper.
That said, don’t look for AI apps to replace real estate professionals. The human element is still necessary to understand the nuance involved in such an emotional process as buying and selling property. In fact…
3. Real estate pros will have to adapt to compete
While no one is expecting AI to replace real estate agents, it is absolutely going to spur on competition in a new way. Plenty of players in the real estate game are happy to do things the way they’ve always been done, but AI is changing the rules, and professionals are going to have to adapt or be outdone by their peers.
Look for real estate companies to tout not just their real estate experience but their technological capabilities as well. When you go to have surgery, you want modern, state-of-the-art facilities and equipment and a surgical team that knows how to use them. The same is true when seeking out an agent. Don’t you want a representative who can utilize the advanced tools available to provide trustworthy, data-driven counsel?
Agents and realtors are going to have to learn to work with AI, not push back against it, and those who do will gain a significant competitive advantage.
4. Changing company structures and practices
AI will change how real estate companies do business and how they approach everything from staffing to marketing. For instance, agents can leverage the predictive capabilities of AI to determine properties likely to go on the market soon, and begin building the necessary relationships to capitalize on those opportunities, instead of waiting to react to developments in the market.
They’ll also need to hire support staff to manage and maintain their AI, software and devices and to train agents to use it. Again, employees who don’t adapt to and leverage technology and all its promises are going to find themselves outpaced by their peers, and possibly obsolete within their organization.
Dating apps for real estate?
No, we’re not talking about you taking your realtor out to dinner and a movie. But your relationship with your agent should be given the same consideration, especially when it comes to the choosing. When you seek out a real estate professional to assist in the buying or selling of your property, what kinds of things are you looking for? Years of experience? Expertise in your particular area? Connections? Number of homes sold? Average selling price?
These factors are all important but, as we mentioned, real estate transactions are complex and emotional, and your agent should align with your emotional and psychological needs as well. AI is powering technology that can conduct true psychoanalysis to determine what makes a better relationship between the professional and the consumer.
Using surveys and algorithms, AI can automatically predict good matches between agents and consumers, the same way dating apps do. The stronger the connection between consumers and agents, the greater the likelihood of a successful transaction and a long term working relationship. AI can create an ecosystem that facilitates these deep connections.
Artificial intelligence is presenting exciting new opportunities for both real estate professionals and consumers. Far from removing the humanity from real estate transactions, AI can actually enhance it by empowering all parties with accurate, trustworthy insight. That insight leads to better decision making from choosing your professional partners to getting the best values for your property investment.
To learn more about how real estate professionals can leverage this valuable technology and SetSchedule’s AI-powered predictive data, visit www.setschedule.com.