How to Use AI in the Real Estate Industry?
Artificial Intelligence (AI) has been the top business automation technology for several years now. Perhaps, the intensity of its growth started in 2018. Since then, AI has changed every industry for the better. Which industries exactly? Let’s see:
With such an industry penetration, in 2021, the global AI market size was $327.5 billion. And, it has no intentions to stop. Today, you can see a forecast of AI growth up to 2027. But, by 2024 alone, the global AI market will reach a size of over half a trillion U.S. dollars.
What is Artificial technology about if it is that popular now? Mainly, it encompasses the trained algorithms that gather user data. This is done to be able to learn from the data obtained. And make better offers for customers in future. Sounds super convenient!
As our topic includes the Real Estate industry, the main question here is what are the examples of artificial intelligence in Real Estate? Its use and benefits in the chosen sector. Let’s find out!
The Role of AI in Real Estate
In 2021, the global revenue of Real Estate companies was about $9.5 billion. Statista predicts its major increase at a CAGR of 4.8% up to 2030. So, by 2030, the size of the Real Estate market is going to be at least $14.6 billion if not more.
What factors would impact the market’s development to such an extent? Probably:
- the saturation of the residential Real Estate market
- if governments will increase spending on infrastructure development
And, also, with such technology as AI in the Real Estate industry, the market will not stay still. It is reported that 9 out of 10 businesses invest in AI technologies. Gartner surveyed companies and it turned out that 37% of them used AI daily. The thing is, Artificial Intelligence brings automation to a business. And, it can automate solutions for Real Estate. Here, most of the manual work becomes unneeded. Thus, employees carrying out this work are left behind. The World Economic Forum believes that by 2025 AI will be responsible for 85 million jobs that will stop existing and 97 million ones that will be created.
Would it also touch Real Estate agents? We don’t think so. Perhaps, AI smart solutions will enhance the work of company agents, brokers, and other Real Estate representatives. The Artificial Intelligence approach allows learning from the data that is there. It cannot substitute a person, who meets with people, gives documents to sign, and interacts all the time in case of need. So, the role of AI in Real Estate is to enhance and advance the industry.
How is Artificial Intelligence Used in the Real Estate Business?
The use of Artificial Intelligence in Real Estate is extensive. There are many ways AI can automate processes these days. The most crucial of them are:
Automated valuation models
The models are designed specifically to predict market values taking into account lots of factors. Of course, the algorithms do the work. What data do they use? Mainly, a combination of all the possible data sources to make the AI in Real Estate valuation of:
- historical data
- age of a home
- images of a house
- market value
- market trends
This type of evaluation can be also made by a Real Estate agent. But, AI can be several times more accurate.
Smart property analysis
This task is usually done by a Real Estate agent. And, still, the work will be considered objective. But, if you substitute this manual task with an AI for Real Estate agents, the work will be done faster, in a more accurate way, etc. For instance, AI can show you
- a detailed annual sunlight amount
- the time of best light during the day
- any sound disturbance
- parking space availability
AI can extract information that even agents will not be able to obtain or observe.
Aid in property development
Do you need to analyze a specific area to build something there? That would be a great chance for AI in Real Estate investment. If you input accurate datasets, AI-powered apps can suggest places for the building based on:
- city zoning
- trends in the industry
- currently available locations
- future local infrastructure
Calculating a mortgage is rather a complex task. But, with AI in the Real Estate business agents can do it faster and easier. Algorithms are smart enough to find errors while screening mortgages. And even more, with AI you can:
- calculate income
- analyze key documents
- check income sources
Insert customer preferences such as location, price, number of rooms, etc., and receive a property recommendation from algorithms that learn on their own. These can be on MLS websites or built into a CRM system. With their help any customer can be approached individually, providing customized suggestions and recommendations. The power of AI is really exciting!
Customer relationship management (CRM)
A CRM system is a perfect solution to help agents form long-lasting relationships with their clients. If a Real Estate buyer made one purchase, this shouldn’t be taken as an end of the relationship. A CRM system will include basic customer info and suggestions to aid during moving houses, renting apartments or offices, selling property, or buying another one.
Benefits of AI for Real Estate also include the possibility to have a website chatbot. Why do you need a chatbot in Real Estate? For instance, to:
- relieve agents of the questions consumers tend to ask
- collect leads
- give virtual home tours
In a nutshell, chatbots greatly help Real Estate agents as they take on a significant part of their job. And carry out it perfectly fine 24/7.
Automation of Manual Tasks
The Real Estate industry is full of transactions. Documents are being sent here and there as well as new ones are created. I.e. different reports, legal papers, zoning regulations, requests for proposals, various analyses, agreements, etc. The advantages of AI for Real Estate include tools that review these documents and scan them for mistakes. Some AI apps are even designed to create flawless documents automatically.
Management Software Solutions
Among the other uses, one can notice Multiple Listings Services, HOA Management Software, and IDX Software that in one way or the other require the use of AI technology in Real Estate.
And we provide services for all of these Real Estate solutions. Get to see what we can do by clicking the links above.
What Benefits Can You Get from Using AI Technology for Real Estate Business?
The use of AI in Real Estate has proven to be a positive thing. With the automation of business processes and better market analysis it became possible to define the following pros of AI technology in Real Estate:
+ Error reduction
Humans have always been prone to error. But, smart algorithms have no such thing as an error. They cannot exhaust themselves or overlook details like humans. So, with the right AI model training, you can get almost any information you want concerning Real Estate.
+ Great analytics
To produce a construction project or show potential clients some homes a lot of research is required. To present your stakeholders with solid research, you need to conduct it first. And, not every piece of information can be disclosed easily and quickly. But, that is not the case with AI in Real Estate. With the help of smart algorithms, it is possible to figure out the best location to build houses, what your key users are searching for, and provide better recommendation services. Agents will only benefit from the analytics here. What’s more:
- AI automates a lot of manual work
- AI designs better security and fire safety systems
- AI predicts the property market value
- AI creates buildings 100% more appealing to buyers
+ Easy transactions
AI spots errors in any type of Real Estate documentation. And, agents work with these documents daily. That’s why it is important to use AI here. The results are more accurate and more key consumers may be involved. Besides, the Real Estate industry has lots of data to deal with every day. So, AI can make the process safer and better to the maximum extent.
+ 24/7 operations
Unlike humans, AI can work every time: during days and nights without a need to stop. And, that’s its main benefit. You cannot insist on the Real Estate agent’s help out of his/her working hours. But you can turn to AI. Give algorithms a task and they will perform it and learn from the data they obtain. That’s how you can save money and time and please your potential consumers.
What May be the Challenges of AI in Real Estate?
The benefits of AI for the Real Estate industry are pretty clear. But, have you wondered whether AI can have a negative impact on Real Estate? What if there is nothing good about AI technologies for Real Estate? For instance,
- People can lose jobs
If AI automates everything, what will happen to people, who carry out manual work? They can lose their jobs and struggle to find new ones. However, experts say, that is fully impossible. AI is a helpful tool for Real Estate agents and sector representatives. Unless your company finds a way to make AI work for you not against you, there will be a slight chance that the automatization of work might cause global unemployment. But, so far, AI did not cause any negative impact. It only boosts the industry and its processes. And, becomes a great partner in analyzing user data as well as searching for particular homes to sell, rent, buy, etc.
- The cost of AI is too high
Being a new and popular technology on the market makes AI quite costly. And, not only the software but the hardware for its running and maintenance as well. Also, AI requires a great storage solution as it needs space to focus on analysis. So, you might find it expensive, especially if you’re a startup. But, don’t worry. Inoxofts has an app development calculator for that matter. And our experts can consult you on the costs you invest and the costs you get in return. Don’t make hasty decisions — always ask a professional for a second thought!
- Algorithms cannot be creative
By implementing AI technology for Real Estate you can always be sure, that your automated system will work with lots of data and extract valuable insights. But, it will never give out results as to how to design the buildings. It just can’t. To ensure this factor, AI has to be trained and monitored by a human. And, still, AI won’t work alone and cannot design a building. So, designers have a chance to prosper in the industry. And, they never have to fear AI will substitute for them. At this point, such a technological breakthrough isn’t going to happen. Designers will still have their jobs in Real Estate.
Consider Inoxoft Team to Modernize Your Real Estate Business
Inoxoft is popular among clients for its custom Real Estate development services. That’s because we are monitoring the Real Estate market all the time and learning all the newest tendencies. Our team also provides excellent AI and ML development services. And, which is pretty clear, we are used to offering great AI for Real Estate companies with RETS standards for the Real Estate project.
Today, having AI applications in Real Estate allows not only to build a high-profitable business but to earn consumer trust. AI software for Real Estate makes every manual process automated, advanced, faster, and more flexible. Users admire the MLS, HOA, IDX, and Property management software. All of them use AI for Real Estate in one way or the other. If you want to know what these types of management software are visit our industry-based services. Do to receive a valuable consultation. Ask our experts all the questions you have and get all the needed answers. Have a look at one of our case studies in the industry below.
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Originally published at https://inoxoft.com on June 14, 2022.