- Olivia Eriksen
AI in real-estate
How artificial intelligence can aid the real-estate sector.
The possibilities that artificial intelligence (AI) offers are huge. More and more sectors are integrating AI technology into their work models, and the real-estate sector is one of them. AI can help both realtors and buyers or renters throughout almost any property process. From indicating trends in markets and areas, to making money matters run more smoothly, artificial intelligence has every corner covered.
It’s not possible to predict the future with absolute certainty, however AI is as close as we can get to this. Being able to predict and forecast monetary trends is a hugely valuable aspect of artificial intelligence technology, and it proves particularly useful for property valuations.
AI software can track variations in rent and purchase values for an area, it can determine the ideal time to buy or sell based on the local market trends, it can interpret an area’s crime statistics, transport links, school ratings, and more to propose a property’s value at any given time.
The main advantage to using AI for property valuations is speed. The software can take millions of sets of data and sort through it in seconds to generate a valuation. This is significantly faster than if a human were to execute the task. Ultimately, it’s a more efficient model for carrying out valuations.
The traditional mortgage process is time consuming and labor intensive. It involves scouring an individual’s financial records and associated paperwork before coming to a decision, which is no small task.
However, by utilizing artificial intelligence technology, the process can be sped up dramatically, and made significantly more efficient. Because AI can process and analyze huge volumes of data in seconds, a summary of a mortgage candidate can land on a broker’s desk in record speed. From there, all that the broker needs to do is evaluate this summary and decide what mortgage – if any – the candidate would be suitable for.
AI doesn’t entirely replace humans in this aspect of real-estate transactions, but it is well suited to working side-by-side with brokers to optimize the lending process.
DETECTING AREA CHANGES
In much the same way that artificial intelligence can predict property valuation changes, it can also predict physical area changes. The technology can track and monitor gentrification trends, crime statistics, developments both present and upcoming, and more. This information is then collated to report on likely changes that an area will experience in coming months or years.
This is especially useful for prospective home buyers, as they can review as accurate a forecast as possible for an area they are looking to buy in, and make an informed decision as to whether or not the area is for them.
PERSONALIZED LISTING RECOMMENDATIONS
With self-learning AI algorithms, the customer experience could be made more personal. Searches and filters could be monitored to form a pattern of preferences, and from there the algorithms could generate listing recommendations within these individual preferences. Overall, the use of these algorithms could result in a more bespoke search experience.
This concept works in a similar way to cookies on websites, wherein user history and behavior is tracked in order to produce a personalized user experience. Implementing this form of AI will set a company apart from the rest of the market.
AI technology in real-estate allows the industry to move more smoothly, and more efficiently. Algorithms can process and sort through millions of documents at a time, at a rapid pace, and AI programmes such as machine learning can help us understand and interpret the most likely future outcomes. It’s quite remarkable how much artificial intelligence can contribute to such an interactive and personable industry.
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