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How AI is disrupting the real estate industry
Artificial Intelligence (AI) has the potential to touch every part of our lives—including the ways in which we shop for, buy, and sell homes. In fact, your local real estate broker may already be using AI as you work together listing your home, finding your next investment property, or looking at comparable property data.
Why is this important? From property valuation to customer service, AI promises to make it easier to buy and sell properties, and faster than ever before. Similar to the introduction of the Internet and websites like Zillow, the AI revolution is moving forward quickly and with great potential. It’s smart to understand how the technology works, and what it can and can’t do for us.
The future of home shopping includes enhanced online experiences
From virtual staging and viewing to property valuation, AI is helping both buyers and sellers. You may not realize it, but you may already be benefitting from AI as many real estate apps have already integrated some AI tools and algorithms. For instance, did you know, AI can help you fine-tune your search results on a much more micro level than ever before? Instead of searching for a wide range of 3-bedroom homes, you can limit your search based on nearby schools or how much sunlight enters the home at certain hours of the day.
AI also has the potential to assist buyers and sellers to save time and money through enhanced capabilities for virtual staging and touring. According to the Association of Realtors (NAR), 97 percent of home buyers have used the Internet to search for homes. AI can make this web browsing activity more comprehensive and immersive through special 3D modeling, which is a step up from Matterport-like online tours with the ability to drill down to minute details and more life-like experiences prior to touring the home in person. For the seller, AI can also help to stage these homes virtually which may increase the value of the home. What seller wouldn’t want that?
Tools to analyze data for the most precise property valuations
While nothing can replace the experience and market knowledge of your real estate broker, AI is helping us find and analyze complex data sets including historical sales data, market trends, comparable properties, and even factors like neighborhood developments and infrastructure. As Bend grows and changes, the ability to quickly adapt value with the consideration of new developments, revitalizations and school boundaries is more important than ever. AI doesn’t take over the home valuation process, rather, it helps us analyze various influencing factors that might not yet be fully understood or easily overlooked. By leveraging AI for property valuation, sellers can gain a competitive edge in the market, optimize their listing prices, and attract potential buyers more effectively.
AI can’t replace expertise and personal consultation
Many people worry the power of AI could replace humans and their jobs, but real estate brokers will remain necessary even with the new technology. While AI can be helpful and it has decreased the need for physical open houses and in-person meetings, real estate brokers still hold incredible value especially when it comes to negotiation and representation. As well, they add a personal touch and consultation that AI is not capable of.
Mitch Robinson, President of Real Estate News, said in an episode of RealtyHack about How to Stay Relevant in Today’s Real Estate that there are no signs real estate agents are going away. “They’re the most important local businessperson you have in your community.“
As AI continues to evolve, its role in real estate will only become more pivotal, making the process of selling properties smoother and more efficient than ever before. While no one can know what the future holds, we can look at current trends and where they might be heading. Understanding these possibilities will set landlords, real estate agents and investors up for success in this ever-changing landscape.