The growth of artificial intelligence in business has been quick and only looks poised to accelerate. AI is changing how professions and industries work, and it’s more widespread than you might think. In 2019, Gartner reported that 37% of firms had adopted AI in some form or capacity, and as talent and labor shortages continue, it’s likely that the rate will climb even higher.
The real estate industry has a wealth of public data, as documents like land records, titles, and purchase prices are all made public. While it was once a lengthy process to obtain all of this information, AI-bots can now sift through troves of data in seconds, making all of it more accessible and useful to agents, homebuyers, sellers, and mortgage lenders.
As artificial intelligence is increasingly used to analyze and interpret all of this data, these are some of the ways the real estate industry is changing.
1. Property Matching
The job of a real estate agent has changed dramatically, and AI is in part responsible. AI support can match properties to homebuyers much faster than an agent could, manually combing through listings on their own.
Property matching software is a tool that real estate agents can use to get better answers in less time. According to disruptor and industry maverick Regan McGee, founder of the startup company Nobul, “For so long, the real estate industry has been in the dark ages.”
He shared with DigitalConnectMag that “Finally, we’re stepping into the light and seeing that business can be conducted much faster and better using these digital tools and techniques that are commonplace in other industries.”
2. Property Valuation
Making the right offer can be challenging in a seller’s market. The listing price may not reflect what the sellers are truly hoping to see or what kind of offers competing buyers feel are reasonable. Property valuation software is another tool real estate agents can use to guide their clients, providing insights into price predictions for a specific home.
3. Advanced Listing Analysis
AI-supported software is giving buyers more detailed information about listings than ever before. Programs exist now that can provide buyers with information such as:
- Reviews of local schools
- Transportation system information
- Hours of sunlight a property gets per month
- Availability of parking space
- Noise disturbance information
With more information at their fingertips, buyers can make better decisions about their purchases.
4. Market Predictions
Is now the right time to buy? That’s one of the most common questions in the real estate industry, especially among first-time homebuyers who are balancing a red-hot real estate market with rising interest rates.
AI is being used to analyze patterns found in price data to make more informed predictions about future value. Increasingly advanced AI programs can account for marketplace data and situational information such as schools, crime rates, transportation networks, etc.
5. Lending Approvals
Mortgage approvals are data-intensive, requiring bank statements, credit history, documents that verify income, and more. Potential buyers have a lot of information they need to share with the lender. They’re increasingly using AI to streamline the process and automate the lending process.