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Artificial Intelligence in the Real Estate Industry
AI holds the power to change the way things work. How can AI aid people working in the real estate industry, is a question to ponder over. Research has shown that by the year 2030, AI-based innovation will result in 11.3% growth in German GDP, not sparing the real estate industry of course. Due to lack of data management, most real estate owners end up taking a wrong decision, which leads to millions going down the drain. This is where AI will prove to be helpful for them, by using innovative software algorithms and voice recognition systems, data management will become easier and concise, ultimately leading to better decision making.
AI and Real Estate
Real estate is an industry that works on numbers and concise, updated data. Even a mistake of a single digit can lead to uncountable losses and hence, people working in this field need to remain alert all the time.
Being humans, there is always a probability of errors, and so to make process and procedures of real estate smoother and error-free, AI can come in handy. Artificial Intelligence holds the potential to revolutionize and optimize working in the real estate world by speeding up complex processes. This not only helps the buyers involved but also the sellers, brokers, and investors by smoothing out every step of the process.
In short, in future it is believed that by helping to organize and analyzing data in real estate, AI will aid in effective and efficient completion of procedures, cutting down cuts by huge margins.
How the Real Estate industry can benefit from AI?
Searching for potential clients, conducting market research and managing data can be one of the most difficult of tasks to carry out as a broker. Not only are these things time consuming, but also require a lot of energy and cost.
How can Artificial Intelligence come in handy for a broker? This innovative technology will not only allow easy management, organization, and analysis of data but also speed up the whole process from market research to get in touch with the buyers, without the broker having to move a leg.
When it comes down to the commercial property, manually sifting throw data and conducting transactions become risky and time-consuming. With the support of AI, the entire process speeds up and the risk factor decreases largely, leaving the broker more time on hand to spend with the client and discuss other important aspects of their deal.
Even after a detailed discussion with the client, finding the right property for them often becomes a BIG DEAL. With a huge data to sift throw, finding the right match can prove to be time-consuming, slowing down the deal.
As for AI, they could easily collect data using the client’s conversation with the broker; using algorithms transform it into readable data and present it with accurate results, using minimum time and least efforts.
2. 24x7 availability
Whereas people may need rest and sleep in the hours of the night, the unavailability of the broker can sometimes ruin a potential deal.Chatbots are automated program that are 24x7 available to assist clients, helping them engage in general conversations as well as finding the right property solutions by using complex algorithms.
3. Future predictions and assumptions
Sometimes one must task risk and AI can definitely help people take calculated risks that benefit them in the end. For sellers, brokers and investors, dealing in real estate is all about gaining maximum profits. AI uses its data, algorithms and understands to predict future ups and downs, prices and trends in the industry, helping clients and brokers seal the right deal. Even the transaction of money becomes easier, reducing the risks of fraud and scam to a huge extent.
4. Automated scanning and verification
As realtors, one has to skim throw many documents, scan and verify them accordingly which can take up a lot of time and effort. However, with the help of AI, all such process when automated makes things smooth, convenient and faster.
Real Estate AI startups
# The Sky’s the Limit
With a well-established office in one of New York’s most expensive streets, a new Israeli startup Skyline has claimed of using AI in their work processes and gaining benefits from it. How? The startup says that the AI technology it uses can use data from 140 different sources, going back in time as much as 50 years ago, digging and collecting the most relevant data to satisfy the client.
The AI has helped them earn profits by speeding up the process of data collection, management, and verification, which can otherwise be costly and time-consuming.
# Location, Location, Location
The startup’s AI platform - Proportunity works by collecting and analyzing historical data of a certain location and predicts the price of the property using factors like cost of transportation, crime rate, number schools in the vicinity, etc.
Factors like these have a huge impact on the prices of property and AI uses various algorithms to make predictions that are correct and beneficial for the brokers, sellers, and investors.
# It’s All About the Amenities
In the end, a Chicago based company by the name of Enodo earned $2.3 million in profits using AI only. The algorithms are designed to search and identify attractive investment points and properties with the potential to become expensive in the future.
The machine and technology that Enodo’s use can calculate future market rents, rental impact on amenity package and compare properties for other purposes.
In the recent past, there has been a challenge by the name of “Broker Vs. Bot” to find out who amongst the two can find the perfect match for the clients and of course, the bot won every time. There is no denying that AI has always helped in smoothing out even the most complicated processes but still, not everyone is comfortable in using it.
Said that, with AI being merged with real estate, things and processes can definitely speed up with greater results that are both satisfying and quick, saving time and cost of both the parties in general.