Real Estate Artificial Intelligence
Artificial intelligence now plays a key role in many industries, including real estate. Statista says the global market for AI was USD 321.5 billion in 2021. It will reach more than USD 500 billion by 2024. AI, which is the ability of machines to behave like the human mind, can be particularly valuable to real estate agents and their clients.
What are the benefits of AI in the real estate industry?
AI can be very helpful to real estate businesses and investors if set up correctly. These businesses will find AI valuable for several reasons, including
- Helping to manage rental properties, including managing arrears more efficiently.
- Using algorithms to determine which properties are most likely to come up for sale within the next few months.
- Providing virtual property tours without an agent needing to be present.
- Using algorithms to predict property values, determine the rent that can be charged, and project trends for a property. The algorithms consider historical data, the image and age of the house, the neighborhood, and market trends.
- Helping agents to more accurately find the best target market for a property or hone in on the best property for a particular buyer.
- Improving the customer service experience through refining the transaction process or answering website questions through a chatbox
- Providing an accurate report on each property, thus keeping bias out of the offer process,
- Using an algorithm and specific information on sunlight, parking, sound disturbance, and plowing to do a smart property analysis.
- Suggesting the best location for property development.
- Having access to the information underwriters will have when deciding whether to provide financing or not. Many underwriters and mortgage banks use AI.
- Preventing budget overruns on property construction and renovation projects by capturing 3D images and turning them into insights that the project manager can respond to quickly.
What may be the challenges of using AI in a real estate business?
While AI can help real estate businesses in several ways, it has some challenges — real or imagined. Some people believe that AI will eliminate jobs. However, AI does manual and routine tasks that most employees dislike. Having these tasks completed by AI can free up these employees to do more creative tasks that energize them and produce more for the business.
Another challenge is that AI must be set up properly to yield the benefits. It requires that companies accurately set up new software and hardware. It also requires a storage solution to allow it the necessary space to work. Businesses seeking to implement AI benefits will need new equipment and a specialist to set it up properly.
How does a business implement AI?
First, determine what you want AI to do for you. Discuss the opportunities with your team to develop a priority list. For example, is helping to manage rental properties a priority? Or creating a better customer experience? Or are you implementing AI to give you better analytics for lead generation, pricing, and target marketing? Once you decide your priorities, you can select or custom design the appropriate hardware and software.
Assure your staff that you are implementing AI to make their jobs more accessible and not to take away their jobs. Give them concrete examples of how AI will improve their work life. Staff support will be necessary for a successful AI launch.
You’ll need an IT specialist or someone with specialized IT knowledge to choose and design the best AI software and hardware for your needs. Most real estate businesses do not have an IT specialist on staff. They typically use a team member with some computer knowledge to set up the office computers. An AI assignment may be beyond their capabilities.
You could recruit a freelance IT specialist to set up AI for you. If you choose to go this route, you’d ask around for recommendations or run an advertisement. Once you find the right person, you will agree on a specific price, and the specialist will begin work. One advantage of this approach is that the chosen person will have a strong knowledge of computer systems and AI. However, they may not necessarily understand real estate as well as they understand computers. Their lack of real estate understanding could mean you don’t obtain all the AI capabilities you’d hoped for.
You could also contract with a real estate staffing solutions firm to build your AI system. A real estate virtual assistant will review your needs and create a program that meets those needs. By working with a staffing solutions firm, you avoid having to recruit an assistant yourself. The firm will find suitable candidates for you to interview and choose from. The real estate virtual assistant you choose will understand coding, programming, and the real estate industry. Their multifaceted understanding will help you take full advantage of real estate artificial intelligence and move your business forward.
Author bio: Stephen Atcheler is an entrepreneur in the Real Estate space. He has grown multiple businesses, including a Real Estate Agency, and an online Real Estate Adverting business, and is currently the founder and driver of the fastest-growing Real Estate BPO in the Philippines. If you would like to connect or get in touch with Stephen, he is very active on LinkedIn and always happy for a new connection.