Artificial Intelligence is a Game-Changer for the Real Estate Industry

Written by Posted On Wednesday, 29 May 2019 09:33

No matter how an individual responds to technology, there's no denying the transformation it has had upon the almost every industry in the world. As artificial intelligence descends upon those in the real estate industry, professionals may want to consider expanding the tools at their disposal to service both their clients and their own business. It's slowly changing how we see and what we expect from residential, commercial, investment, and even construction. AI can even make it easier to branch into other specialties of real estate that agents may have had their eye on. 

Analytics 

Big data might be on the lips of practically everyone in business, but the evolution of analytics has been slow when it comes to optimizing the information to everyone's advantage. But the field continues to improve upon how it uses numbers to tell a bigger story. Those who pay attention to the customer and industry data have a better chance of finding the right marketing strategy or of developing a budget strategy that doesn't waste funds on unnecessary ventures. Investors can also use analytics to help them meet financial goals by letting an intelligent robot assess risk factors for investors based on their criteria. From space to loan parameters, the bot is programmed to select criteria that specifically match their needs.  

Management and Maintenance

One of the most time-consuming parts of being a landlord is ensuring the building is both safe and efficient for all inhabitants. There are now artificial intelligence tools that can help a property owner keep track of systems in need of maintenance or repairs — before there's a catastrophe in the building. Many of these tools may in fact sync well with existing energy-efficient systems within the property.

There are also property management tools that can also give an investor insight as to whether or not they should (or can) expand their holdings. If there are major factors likely to impact rental prices and profits, artificial intelligence will bring these matters to an investor’s attention before they choose to sink more money into any given project.

Robot Agents

Most traditional AI includes chatbots, which help an agent respond to basic questions that first-time property owners are likely to ask. Cutting down on both time and money spent on traditional customer service, most platforms and brokerages have some version of a chatbot already employed on their website. But this technology is dated compared to other services now on the market. Some home buyers are choosing to use robot agents as opposed to either selling on their own or hiring a traditional agent.

Charging only a 2% commission, these robots have been gaining in popularity over time. By taking advantage of social media ads, they're attracting buyers who want a streamlined buying process without paying several percentage points more to an agent. While this technology is still somewhat in its infancy, it's seen interest especially in expensive markets, such as New York and California.

Matching Services

In an experiment conducted in 2016, pretend homebuyers presented a list of wants to both a human and an artificial intelligence robot. After everything was said and done, they far preferred the homes selected by the robot than they did those of the actual human agent. When most home buyers start their home search online, these types of matching services are perfect for those who might not quite be ready to take a more official step. The better the recommendations get, the more likely it is the data analytics behind these services will be perfected to truly narrow down a person's search to a small handful of homes that would be perfect for them.

Commercial & Construction

With less emotion and fewer stakes involved in commercial real estate, advanced chatbots are really starting to see a lot of use for smaller office spaces. Not only can these chatbots answer standard questions about square footage and building amenities, these tools can also make it easier to register for open houses and negotiate lease terms.

This type of advanced AI technology will eventually make its way to residential real estate, but for now, it's mainly being used for commercial spaces. There have also been several new advancements made in the construction industry, decision-makers now have a chance to automate purchasing from the most economical supplier for their needs. They can even use brick-laying robots to speed up their rate of production.

Real estate is only going to continue to change as these tools are upgraded and improved upon. And though not every development is positive for professionals, those in the industry may want to learn more about the available technology before they fear the more direct competitors to their business. Real estate agents can still help guide buyers and investors through this journey and give them tips to maximize (and analyze) a robot's recommendations.

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John Quinn

John Quinn is the #1 RE/MAX agent in the mid-south - for over 10 years. The John Quinn Home Selling Team is your best resource when it comes to real estate in Memphis and the surrounding area.

 

https://www.johnquinnrealestate.com

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