Artificial Intelligence (AI) is changing the way most industries work and operate. It’s nowadays hard to come across an industry that isn’t already utilizing AI and Machine Learning to streamline their processes.
The real estate industry has historically been a bit conservative in embracing technology and other trailblazing changes. However, this has been different with AI. AI companies have been helping real estate investors achieve their goals even as the market shifts. AI also provides analytics and data tools that help investors maximize their profit potential.
Here are five ways in which AI is helping real estate investors buy and sell more;
AI and machine learning help automate the entire real estate purchasing and management processes. For instance, it has helped eliminate geographic limitations. A landlord can monitor their property from any location. This means that you don’t have to stop your daily work activities to visit your property.
If you’re selling the property, you can avoid time-consuming showings by taking your potential clients on virtual tours. You only get to visit the property with a client who’s sure about the deal.
As a real estate investor, you understand that your profit margin decreases when your property stays in the market for a long time. Artificial intelligence can help you counter this problem. AI developers are coming up with algorithms that can help you list your property on real estate platforms automatically. You’ll soon be able to list your property and all features, including the number of rooms and kitchen size, by just clicking a button.
On the other hand, customers can find properties that suit their tastes faster. Online real estate platforms have made it possible to narrow down and filter property searches by location, number of rooms, and even price. Machine learning then analyzes a person’s search patterns and presents more accurate options.
With AI, you’re able to work smarter, not harder.
2. Virtual Assistance
Ecommerce businesses are already benefiting from AI tools by collecting customers’ data and improving lead generation. For example, many are already using chatbots. These are virtual assistants that simulate how a normal person would text or chat. They can be used to collect and analyze data, which a real estate firm can leverage to improve lead generation and marketing efforts.
AI can also help you qualify leads instead of using your time and resources to screen potential clients who might not be genuinely interested manually. For instance, if you’re targeting a certain age group for your marketing, you can use a chat window to collect real-time answers. You can then connect with the qualified leads immediately.
One of the most vital advantages of AI is availability. They can carry out these functions all-around the clock.
3. Risk Assessment
No real estate investor wants to lose their investment because of an unforeseen event. That’s why you should always avoid guesswork and making uninformed investment decisions.
AI can help assess a property by analyzing its information and give a detailed risk report. You can also know how much profit or income to expect from the said property.
If you have borrowed money for your real estate investment, AI can help you foresee loan defaults. This would help you avoid more risky investments and stick with investments that will give you enough profit to pay back the money.
4. Data Analytics
Due to its ability to process and handle copious amounts of data, AI is making it possible to predict your property’s future market value. For example, AI can combine current data from property management platforms and combine it with public information, such as government projects in your area.
Any human can’t handle the kind of data used to come up with such projections. AI even breaks down this data further and gives you the variables used to develop the projection. You can then use it for financial accounting and target marketing.
Also, AI helps eliminate any bias humans may have to certain markets. The deep analysis in the market shows where current demand is strongest and expected growth. Real estate investors can then confidently move into those areas.
5. Advanced Property Analysis
AI gives real estate investors and agents a leeway to provide their clients with accurate and in-depth information. It gives comprehensive information, such as;
- Availability and ratings of local amenities, such as schools
- Amount of sunlight the property receives during specific periods of the year
- Entertainment spots within the locality and any upcoming openings
- Insights on the local transportation system
- Availability and size of parking spaces
The main goal of real estate selling is to provide a seamless and trouble-free experience to the clients. This feature equips investors and agents with as much information as possible. Clients love comprehensive information, and this can fasten the buying process. You can also get positive reviews and referrals from this.