How Artificial Intelligence Changed the Real Estate Industry
Since the beginning of the industrial revolution, the world has seen skills change in a way that resulted in automated jobs and newer skills required to keep up with emerging technologies. Based on McKinsey, these new technologies will result in "GDP growth, new prosperity, improved corporate performance, but hey will change the skills needed for human workers."
The real estate industry is in a great position to utilize automation and A.I. to minimize errors, reduce costs, and increase productivity. The number of workers who are in manual tasks that require basic cognitive skills will decline. And the amount of management and experts will grow as creative and social skills will increase dramatically.
Investor Analysis
Real estate investors can create growth and income goals that are monitored by an A.I. robot. The robot can measure and conduct risk analysis based on the investor's parameters and make adjustments needed so the investors can meet their financial goals.
Chat Bots
ChatBots is the most obvious way that A.I. is transforming the real estate industry. A wide range of real estate companies, from real estate crowdfunding platforms to brokerages, are using chatbots on their websites. Chatbots allow companies to optimize time spent helping customers and answering questions by allowing virtual assistance to answer simple questions that don't change from customer to customer.
Sales and Marketing
Real estate companies can use A.I. for lead management to display personalized messages or promotions to prospective lenders or buyers. Also, A.I. can be used to analyze market data to recommend properties for brokers to buy/sell, based on their previous sales and intent.
Natural Language Processing algorithms can be used to understand customer’s needs based on zip code, and unique information about a house from listings. Analyzing customer interactions through the house-buying or lending phase is great for customer service analysis.
AI-powered chatbots can be used to quickly answer any question from potential buyers and make personalized offerings based on the user's preferences. With artificial intelligence, this is done without an agent's need, thus automating the real estate process.
Property Management
Artificial intelligence can be used for property management to monitor, and determine which critical maintenance systems are needed for repair. A.I. technology is also useful in keeping track of rental trends in different geographical areas and automatically increasing tenants' rents when leases expire.
Other property management functions such as expansion analysis and building automation can be performed to determine returns based on critical inputs such as profits, expenses, and rents in rental housing.
Selecting the Right Property
Reducing the time it takes to buy and sell properties leads to increased profitability. Search engines made it easier for investors to flip-and-fix properties. With artificial intelligence, A.I. robots can collect data from previous house searches to find better results.
A.I.'s analytic approach helps investors find a specific property option and predict sites that will be available in the future. Companies like Opendoor use AI-powered algorithms to determine a price before purchasing a property.
In addition, real estate consumers use advanced search engines like Trulia and Zillow to find real estate properties they're interested in. Imagine future possibilities when artificial intelligence not only responds to users' desires but also predicts them and responds proactively.
In fact, this action is similar to how some search engines provide results in a sidebar, which is done to show the user more possibilities without disrupting their attention in the process. While it's still a predecessor at the moment, it's still a significant step in that direction.
Finding Opportunities
Finding the right opportunities in real estate is a persistent issue. This is because there is a lot of information out there that it can be a severe challenge for real estate agents to process all the existing possibilities.
However, it should be noted that matching real estate properties to the people that want them is neither straightforward nor simple, which is why real estate agents need experience and education to deliver consistent results from their clients. Fortunately, artificial intelligence can match real estate properties, making it easier to find new housing opportunities.
Data Management
As a real estate company grows, it has to deal with massive property appraisal reports, lease abstractions, zoning regulations, legal papers, tax reports, etc. As the amount of data grows, artificial intelligence is used to classify documents and give alerts when a property increases in popularity or when a new appraisal is due. For instance, machine learning can help people analyze a large amount of search data that exists by tagging all the useful data within a company's repository.
How Can Companies Adapt?
Whether you have a growing real estate business or have years in the industry, there are ways to adapt your business practices with A.I. technology. Here are some ways how:
Plan and strategize: Examine the benefits and effects of adopting technologies to your workforce, operations, and growth strategy. Next, develop a plan for your company’s digital transformation.
Access customer data analytics: Utilize operations and customer satisfaction to help improve growth and efficiency.
Explore partnerships: Explore the technological partnerships and integrations that can help your organization grow.
Customer Feedback: Focus on customer feedback and interaction that would help you understand the trends that are shaping demand. This enables you to create an environment that uses innovative thinking.
Conclusion
Why is real estate using artificial intelligence? Because there is a lot of information within the industry that needs to be quickly sorted out. While this can be done by hand, its time consuming and can result in human error. That’s why businesses are adopting real estate methods to make their lives easier.
To conclude, artificial intelligence is going to be a staple within the real estate industry. It allows real estate investors to evaluate multiple housing options and make recommendations based on large data sets. By doing so, they can increase productivity, make better analysis, and potentially increase profits.
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