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A decade ago, if you had told the average realtor that they would be using artificial intelligence in their daily work, they would have probably laughed. In many ways, AI and real estate are an unlikely marriage. The industry has an earned reputation for being low-tech and resistant to change. And AI is on the bleeding edge of technological innovation.
But once you sit down and analyze the many practical benefits that AI has on the data-rich industry, the marriage starts to make a lot more sense. Below, let’s explore how the real estate industry uses AI.
Matchmaking Algorithms
Perhaps the most exciting AI application is in the “digital marketplace.” The first real estate digital marketplace, Nobul, was founded in 2017 by Regan McGee; an innovator with real estate and tech credentials to his name.
Essentially, the platform leverages a proprietary AI-driven algorithm to comb through data on real estate agents, offering consumers a relevant list of agents that match their entered criteria. It’s proving disruptive for an industry that typically deals with client-side operations in opaque ways since it transfers power and choice to the consumer.
“Anytime you bring innovative technology to the table that can make the process easier,” McGee told Superb Crew, “it will be viewed as disruptive.” He’s spot on.
Chatbots and Virtual Assistants
Consumers aren’t the only ones benefiting from artificial intelligence in real estate tech. Agents are increasingly using AI-powered chatbots to nurture leads and manage frustrations.
Several chatbot companies (Intercom and Hyro being two of the bigger ones) have recently emerged, offering agents virtual assistants to help support clients 24/7. These bots use AI and natural language processing to simulate genuine conversations. They can help agents reach out to clients, answer questions, qualify leads, book appointments and distribute relevant listing information. Basically, they do most things a quality assistant does – for a fraction of the cost.
Near-Instant Property Valuation
Predicting property values used to be an arduous and time-consuming task. But because artificial intelligence can interpret and analyze reams of data instantaneously, the home valuation process is now lightning-quick.
You’ll find several informal AI-powered property valuation tools online. More notably, professional appraisal companies are now increasingly using AI to support their process.
Automated Property Management
AI has applications beyond real estate transactions; it’s rearing its head in the property management sector too.
The role of a property manager used to be multi-pronged and manual. A property manager had to juggle maintenance, HVAC settings, payments, tenant screenings and more. Now, a property manager can outsource many of these tasks to artificial intelligence through automated screening/pre-qualification, smart thermostats, AI-powered bookkeeping, predictive maintenance and more.
The list goes on, including AI-supported mortgage brokering, property analysis and development scouting. As real estate sheds its earlier reputation for being technophobic, the industry is moving to embrace emerging technologies like AI with verve and creativity. Soon, the entire industry might look a little more automated, which should benefit consumers, practitioners and property managers alike.