AI or Artificial Intelligence is on the surge in today’s modern era. AI is paving the way for success in the majority of sectors. When talking about its success, we should not keep the real estate industry behind. Being an unparalleled and interdisciplinary field of computer science, Artificial Intelligence is able to undergo the majority of tasks with little or no human input.
AI not only redefines the way we buy, sell, or invest in the property market but also catalyzes the paradigm shift in the landscape of rental living environments and property ownership. AI for the real estate industry has been flourishing the most in recent days and has unlocked the epoch of business transformation in the real estate services marketplace.
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What Is An Artificial Intelligence?
Artificial Intelligence or AI involves computers that are required to do things conventionally with the help of human intelligence. AI is able to process various data that humans are not able to process. The aim of AI is to be able to do various things like recognizing patterns, judging like humans, and making decisions.
At the midpoint of this concept, Artificial Intelligence is all about teaching computers so that they can program themselves make decisions and perform actions based on their original and existing knowledge. There are multiple examples of Artificial Intelligence that use Machine Learning. When it comes to learning about certain types of AI apps and tools that are developed manually, we should understand that an AI tool is a software application that uses AI algorithms to solve particular problems and perform specific tasks.
There are several tools in Artificial Intelligence that are able to be used in a variety of industries. From healthcare and finance to education, real estate and marketing, to analyzing data, automating tasks, and enhancing decision-making.
Benefits Of AI For Real Estate Industry
There are several benefits of AI in the real estate industry. Every year there are millions and billions of products using suitable properties that are being constructed and listed. As a result, the requirement of purchasing and selling property patterns by the people requires a huge number of data. In order to match the right buyers, it is necessary to optimize the data without any requirement of any intermediaries. There are certain significant ways by which AI provides several benefits to real estate businesses.
One of the most remarkable and worthy of attention is providing trustworthy leads, guiding them to filter out the targeted and capable buyers from casual window purchasers. In addition to this, it provides its users with complete details and information regarding the specific property and clears the way for better decision-making. However, it has become clear that AI or Artificial Intelligence development in the real estate market is the best and most valuable tool not only for several companies but also for multiple customers.
When talking about the benefits of Artificial Intelligence in the real estate industry, we should not keep behind some of its major advantages. AI in the real estate market benefits companies and customers with its 24/7 customer support/service, workflow automation, and error reduction.
The Existing Estimate of AI Implementation in Real Estate
The immeasurable usage of AI in the real estate industry happened back in 2018 to 2019 after the AI-powered real-estate deal was finalized. Although there are a number of artificial intelligence systems in real estate, Artificial Neural Networks (ANN) and Expert Systems (ES) are the ones that are currently applied for real estate valuation. ANNs usually have several layers. The first layer is called the input layer, and the last one is the output layer. The intermediate layers (if any) are called the hidden layers which can not be inspected from the outside.
The buildings were obtained with the help of AI algorithms which were known as “soon-to-market detection.” This came up after assessing innumerable data points in order to demonstrate whether the property had a market perspective. This includes:
» Most relevant financial value for the property.
» The features of the property and the key performance barometers.
» The probability of natural and reasonable catastrophes in the region.
» The accurate and faultless supply of the soon-to-be-released units.
» The current and existing status of the local property market.
ANNs are often used for statistical analysis and modelling, in which their role is sensed as an alternative to standard nonlinear reversion or cluster analysis techniques. Since real estate valuation is a forecasting methodology ANNs can be used for real estate valuation.
Deloitte also expects a scenario where big companies that have already adopted Artificial Intelligence in their daily usage will enjoy a good competitive advantage. However, those companies that haven’t adopted AI yet will not be able to move perfectly towards their advancement and will require more effort.
As per CRE (Commercial, Real Estate, and Innovation) Report 2020, around 49% of commercial real estate executives recognize the fact that AI can produce operational productivity and tremendous budget savings. Contrary to this, 43% of Earth’s population believes that AI will create enormous troubling effects.
Use Cases of AI for Real Estate
Just as AI and ML in real estate continuously evolving and making noteworthy and remarkable inroads. As a result, realtors use intelligent systems in different ways, and the inference is overpowering. Let’s understand some of its leading applications in real estate.
There are certain applications of AI in real estate but we have come up with one of the most essential and popular ones. These leading applications of AI for real estate are mentioned below:
1. Listing Description Generation
We all can agree that listing descriptions of too many products using suitable properties is a tedious task and is really herculean work and a monotonous process for a human to do. As a result, AI comes the way to help everyone and seamlessly automate this work without any hassle. No doubt, there are various neglected software that can work efficiently in creating property listings. However, you are able to create a customized listing from the beginning and incorporate an AI language model such as ChatGPT into your subsisting system.
To give an example, you are able to develop a personalized AI application for real estate and provide it with a relevant occasion that is related to the description of the property in order to create a template, and you will surely get the draft ready in just a few seconds. Now, you are able to use this template every single time whenever you want to list a description.
2. Virtual Tour
We all know what is a virtual tour but for those who don’t know what exactly this term means then we have elaborated below. “A virtual tour is a progression of comprehensive images that are gripped together in order to generate a virtual experience of any location. When it is generated once, then the viewer is able to experience how it feels like to be somewhere they are actually not present.”
As AR and VR services in the real estate industry have been rising at a faster pace potential and targeted customers are getting a realistic view of the property without even going on the site. Just this way, realtors provide an option of Virtual Tour to their targeted customers so that they can sense how the space looks and feels. For those who can find the product by using suitable properties that are still being constructed or located overseas, this innovation comes in handy.
In addition to this, it helps in maintaining norms of social distance and puts a stop to pre-booked viewings from disarranging a realtor’s calendar.
3. Lead Generation
For any business, lead generation is one of the most important requirements. This is also a necessary requirement in the real estate industry. It assists realtors in identifying possible leads from several sources like social media, landing pages, online listings, and website visits.
It permits sales representatives in order to infuse their efforts into the most certified leads which will most probably convert into sales. In due course, at the earliest possibility, it will make it effortless to close the deals. The real estate industries are able to achieve higher conversion rates and boosted sales only when you target efficient leads.
4. Property Management System (PMS)
The AI tools for the real estate industry assist in streamlining property management in several ways. For instance, it permits businesses to track property and rental listings, lease agreements, tenant applications, maintenance requests, and other crucial and necessary details and information.
The tracking aftermath can help realtors identify tenant preferences, price trends in various areas, maintenance issues, and seasonal availability. In addition to this, Artificial Intelligence is also able to scan all the property documents and identify all the common errors like empty fields, missing signatures, and other mistakes.
5. Detection of Scam And Compliance
As AI-generated images and content are rising at a faster rate and have become a trend in today’s modern world, there has come a major challenge for MLS providers to detect all the manipulated images and content. If there is any scam or fraud in the product description or images, then it can bring terrible outcomes for the MLS providers, administrators, and brokers.
The terrible consequences will surround them because there are penalties for listing inaccurate data. But Artificial Intelligence has turned up as a lifesaver here. Computer vision, AI and ML development services in the real estate industry can detect inaccuracy and manipulation in the listing smoothly and hassle-free.
6. Customer Care
The unlimited potentiality of Artificial Intelligence in Customer care has been hidden and unexplored by none. It has already transformed businesses or enterprises across industries. When real estate industries came to know about the capability of AI in customer service, they also started capitalising on it in their day-to-day service marketplace.
By way of illustration, Chatbots are a perfect example of responding to and providing all the answers to the queries of their customers in a timely manner. With an AI-powered customer support system, users do not have to wait for a longer duration in order to get the answer to their queries. As a result, the most appropriate reason behind the efficient customer support system in big businesses and enterprises is that they use AI-powered customer care strategies.
7. Automating Due Diligence
It is normal for humans to make mistakes. When you enter data into real estate, then you will make several mistakes for sure. This is where AI comes into the picture as a rescuer. AI is able to determine all the mistakes and inconsistencies and compare vast amounts of data. It can show you inaccuracies between several documents like loan applications, lease agreements, and several others. It is extremely important at the time of the loan approval process will help you detect dissimilar values that are listed on every document and will lessen the risk of scams in the sanction of loans.
8. Property Inspection
When investing in a property, many thoughts would have popped up into your mind. But most of the time you would have thought what is the right price to buy a property that can give you a good return on your investment. Isn’t it?
These factors include but are not restricted to transportation means, crime rates, schools, sound disturbance, hospitals, light sources, future development in the area, buying trends, and several others.
Managing the analysis of the property and validation of your future is an alarming job, and you must understand that calculating the correct price completely depends on multiple factors.
It not only does this but also examines the features of the properties such as home decor, size, age, number of rooms, and others, in order to make a decision on a feasible price range.
9. Property Research
There are multiple property-searching applications that are able to provide you with advanced search capabilities and filters. This enables the investors to select a property for buying just by setting up the preferences for cost, designs, locations, square footage, and others.
But when you find the product using suitable properties, it can still be a daunting task because of certain irrelevant factors. Even if these applications do not manifest true to the expectations of the investors, Artificial Intelligence in commercial real estate is able to efficiently address this problem.
To give an example, AI-based suggestion engines are able to narrow down all property searches quickly that are based on individual preferences, providing customized recommendations to practicable investors.
10. Intuitive Data Processing
Examining documents in the real estate industry is a complicated and time-consuming process.
Not being in accord with the templates makes the extraction of data from different sources and formats and organizing it pertinently even more difficult and complex.
AI or Artificial Intelligence is able to extract relevant information and details effortlessly from multiple different documents such as appraisal reports, lease agreements, and loan papers.
This will help anyone to complete any task in a few minutes which would otherwise have taken days when done by a human.
In addition to this, with the help of optical character recognition, i.e., OCR technology, even poorly handwritten documents that are scanned can be arranged with the highest accuracy.
Examples of AI for Real Estate Companies
The real estate industries have been imposing multiple technologies such as robotics, the Internet of Things, i.e., IoT services, AI and ML, i.e., Artificial Intelligence and Machine Learning, and more to activate a paradigm shift in the industry.
These companies especially Redfin Business Solutions Pvt Ltd make use of AI in the real estate industry in order to transform the selling, buying, and investing procedures in real estate properties. Let’s understand this with the top five examples of Artificial Intelligence in real estate. These examples are explained below:
1. Keyway
Keyway is a real estate company in New York that brings technologies like AL and ML (Artificial Intelligence and Machine Learning) to commercial real estate. With the help of this, they can make all the data-informed deals quickly and efficiently through its investment platform.
This company works with retailers or dealers in the healthcare sector that are private practice doctors, veterinarians, and dentists. Along with them, multifamily property owners provide them with service models such as rent-to-own and transition-out.
2. Silverwork Solutions
Silverwork Solutions is a real estate company in Chicago, Illinois uses Artificial Intelligence in order to construct “cognitive technologies” for the mortgage industry.
Their solutions include software robots that not only accompany the work of human employees but also authorize automation which will assist in dealing with tiresome tasks.
This company vocalizes that its technologies can assist mortgage industry customers to enhance their costs, consumer experience and cycle time.
3. Hyro
Hyro is a real estate company that is currently working in New York and develops conversational AI or Artificial Intelligence that can be utilized for the real estate industry. Both its AI chat and Voice interface are available to consumers when their agents are not available.
These AI chats and voice interfaces are capable and have the potential to match consumers with properties, arrange viewings, capture, and follow up on leads and respond to the queries of their customers that are consistently based on updated details and information.
4. Entera
Entera is another real estate company that has been running in New York for quite a long time. It brings its consumers a home-like real estate investing platform that uses AI in order to authorize automation and quick-witted analytics for finding, purchasing and operating single-family homes.
This company provides its services to more than dozens of US markets. Its platform sees upwards of more than 1,000 transactions per month.
5. Rex
Rex is another real estate company that is currently working in Austin, Texas. They own different real estate technological brands which include JobCall. JobCall is basically an AI assistant that helps its customers to enable communication between property maintenance teams and renters better.
The technology is competent in utilizing speech recognition in order to interpret maintenance classes and tag them for classification.
The Future of AI for the Real Estate Industry
By using machine learning, robotics, deep learning, big data, and several other algorithms, Artificial Intelligence has made several revolutionary changes in the real estate industry.
The applications and examples of AI for real estate that we have mentioned above provide us with a good glimpse of how this transformative technology has made the major impact of internet real estate sites is in some areas.
These areas include property estimates, predictive analytics, data visualization, workflow automation, and others. It exhibits the enormous potential of Artificial Intelligence in the real estate industry and infuses the paradigm shift in the service marketplace.
The below graph will help you to understand better how several CRE firms are automating processes and applying AI/ML in various functions perfectly.
With the escalating incorporation of Artificial Intelligence, we expect to perceive its more revolutionized evolution in the upcoming years. You must look at a broader aspect of AI and perceive how it has been widening its horizon in the real estate industry.
It has been anticipated that in no time, it can become a decision-making technology for various companies and enterprises who are looking forward to redefining their property management processes in today’s AI era.
Conclusion
The future of real estate greatly depends on AI and ML, i.e., Artificial Intelligence and Machine Learning. This is because businesses such as Redfin Business Solutions Pvt Ltd all around the world are comprehensively embracing AI development services for real estate solutions in order to keep swiftness with the revolutionized advancements and gain an ambitious and competitive edge.
Nevertheless, AI software development in real estate is definitely a daunting and time-consuming task. The essential and indispensable expertise of a predominant real estate app development company is able to create the best AI real estate solutions as per your business needs and requirements.
No doubt, AI has all the potential of making real estate depend completely on its solutions. This is what makes all property management systems efficient, customized, personalized, customer-centric, and highly valuable.
Read more: How will Quantum Computing affect Artificial Intelligence applications?
Frequently Asked Questions
Q1. What is an example of Artificial Intelligence in real estate?
Ans. Artificial Intelligence plays a crucial role in assisting managers in screening tenants, collecting rent, and scheduling maintenance. AI chatbots play a chief role in tenant screening, much like their users for customer care in all other industries.
Q2. How AI is being used in the real estate industry?
Ans. AI’s most comprehensively used and practical application in real estate is ‘Predictive Analytics.’ It is basically the foundation of every figure for a property’s value that you can perceive. Algorithms of AI were simply introduced in order to save customers from the nuisance of evaluating the market value of a property.
Q3. What are four powerful examples of Artificial Intelligence in use today?
Ans. There are several applications of Artificial Intelligence that are in use today. Some of them are mentioned below:
» Virtual Assistants like Siri and Alexa.
» Recommendation systems that are used in e-commerce platforms.
» Scam and fraud detection in financial institutions.
» Autonomous vehicles.
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