Last Updated on March 10, 2023 by ahmadaftab
Gone are the days when real estate Companies and property owners would engage in traditional methods of dealing. Now technology has taken over the world, and real estate is no exception. The sheer volume of data the realtors have to deal with in the present era anyways makes it impossible for them to do their job without any technological assistance. Besides, personalization and accessibility offered by the latest technologies like AI (Artificial Intelligence) have raised expectations for customers as well.
As per a report by MMR, the market of AI in real estate Companies is expected to grow up to $733 billion by 2027. From round-the-clock availability through live chatbots to market evaluation through predictive analytics, real estate companies have found the most robust and reliable technology in AI to make the industry lucrative again with the least effort. Indeed, the future of real estate software solutions is hard to imagine without artificial intelligence. Here are nine of the most popular AI solutions for real estate that are transforming the industry as we know it.
Predicting Market Value
Machine Learning, a sub-domain of AI, is highly used by businesses from various verticals to create models and perform predictive analytics. The capability of analyzing patterns over large amounts of data on seemingly unrelated variables makes AI extremely useful for real estate businesses. They can now analyze and make predictions for the future value of a property.
The historical data and current market data can be combined to create models on hyper-localized levels to help realtors decide the ideal market value of a property and make better investments. The data such a model can consider include the vicinity to the major public buildings, transportation facilities, crime rates of the locality, and availability of consumer products.
Since the entire business model of real estate businesses depends on making the right investment decisions, such AI applications in real estate companies can prove to be a game changers. By deciding the price for the rent and sale of a property based on data, realtors will have the competitive advantage of meeting the right price balance for the customers.
For property businesses that are involved in the aggregation and listing of multiple properties, AI can revolutionize the way and the number of leads they generate. Most such aggregators consider each visit on the website that has shown even the slightest interest in a property to be a lead. But since not every such user is there to buy or rent a property, or especially the one they’ve interacted with, the conversion rates on such efforts remain minimal.
However, by implementing simple AI algorithms that can track user behavior and grade them against the user behavior of successful leads, things can be altered for better results. There is definitely a pattern that distinguishes serious buyers from regular website visitors. However, tracking all the variables that, too, in mass and in real-time, is not a job that can be done manually. As such, AI in commercial real estate has a lot of potential to bring the most business among the competition listing the same or similar properties.
A custom AI solution for the real estate business can easily narrow down the audience for various categories, including the ones for renting studio apartments or buying luxury villas. Such well-labeled audiences can then be retargeted with more specific marketing campaigns for improved lead conversion rates.
Property analysis is one of the most crucial yet tedious tasks in a property business. The task is more labor-intensive than the ROI it can generate. This is why AI-based software for property analysis can prove to be one of the most important enterprise solutions for a real estate business.
The software can be used to collect information from various sources, including but not limited to maps, hard copies of property documents, administrative records of the locality, and the public spaces in the vicinity. Collecting all this information manually can take a lot of time. Besides, the task can quickly become quite monotonous and error-prone. AI resolves all these problems through the creation of data pipelines for ETL and filtering through for accurate information.
Using data of properties around the subject property, AI can also quickly analyze and organize comparative data, helping customers in making the right decision and, in turn, earn their trust for future businesses.
Improve Customer Experience
Companies in real estate and property management are investing in AI solutions like recommendation engines, personalization across devices, chatbots, and smart searches to improve the customer experience with their brand.
The purpose here is to make house searching extremely easy through custom real estate software development services to enable prospects to find their exact requirements for a house. Smart filters like budget, number of rooms, size, and the location of the building can be combined together to find out the best property for prospects. And while the normal filters work just as fine to search houses with the required features, what AI does is save those preferences for future searches.
For example, suppose a customer searches for a property with a swimming pool but does not find one. In that case, the next searches could automatically improve suggestions for a bigger empty space in the backyard where they can build the swimming pool instead if they want. Such a level of personalization cannot be achieved even by human support teams. It requires a constant understanding of the customers’ preferences, which is hard to do when the team is engaging with multiple prospects in a day. This is why for the future of real estate business and customer experience, AI is inevitable.
The most popular AI applications in real estate are chatbots. These are also among the simplest AI tools to embed in a traditional real estate business, with incredible ROI attached. With AI-powered chatbots available on websites, businesses will have the opportunity to interact and acquire new customers around the clock without investing in any more resources.
Conversational AI has been known to help businesses across various verticals, and real estate is among the most beneficial ones. This is because, for a serious prospect, competition is the major reason why a company would lose business. As such timely response and real-time engagement with a touch of personalization will prove to be a game changer in retaining prospects and eventually converting them.
These chatbots can further be made more advanced through AI development services NLP, yet another sub-domain of artificial intelligence. A support solution embedded with NLP will allow good prospects to talk about their requirements rather than make deliberate efforts on a website to find what they are interested in. Conversational chatbots can then filter the right choices to help close the deal sooner. While this is in no way a replacement for human support staff, Chatbots’ capabilities of providing unbiased information through 24*7 accessibility make them a great asset in the arsenal of any real estate business.
If you’re a realtor looking to expand your business, you must know already that documentation and paperwork create the most affecting bottlenecks in the scaling of processes. The registration process involves so much documentation that organizing it and retrieving the required information alone can become a monumental task for the team. Moreover, there exists no such software that can help with the entire process of documentation-related tasks in real estate.
This is where custom AI software development enters the picture. Depending on the local governing laws, customers’ preferences in the area, and the type of properties the companies deal in, a custom solution can be created to checklist the required documents, verify their legitimacy and accuracy, fetch information from scanned documents, and more.
Property Management and Maintenance
Thanks to the involvement of many manual tasks, property management, and maintenance are one of the most inefficient tasks for businesses in real estate. Be it a hotel property, an apartment for rent, or a huge mansion, the maintenance task alone can prove to be really expensive for companies, which eventually affects their net income.
However, with AI applications like predictive maintenance, many of these tasks can be optimized to optimal levels. To better understand how predictive analytics, a sub-domain of AI, can help with maintenance tasks, it is important to understand the various kinds of maintenance there are. Usually, maintenance processes can be categorized into three kinds, reactive, recurrent, and predictive, the latest being an application of AI.
In reactive maintenance, repairs or replacements are done once a component has been through enough wear and tear to function anymore. In recurrent maintenance, these components are regularly checked and services to improve their longevity. Both these processes involve overhead expenses, which predictive maintenance dodges by simply raising alerts for repairs when required, not too early or too late. This saves companies’ fortunes by keeping the properties well-maintained without any avoidable expense.
Mortgage lending is one of the biggest parts of real estate Companies, which requires the processing of humongous amounts of data. Any transaction that involves a mortgage requires data evaluation of the client’s credit history, FICO score, property documents, ownership history, conflict resolution, if any, and the bank statement of the client. Clearly, the evaluation of so much information can be very time-consuming. Besides, there always remains the risk of inaccurate and biased audits along with planned fraud.
Earlier, companies used to deal with this problem through the OCR technique, which uses Optimal Character Recognition to verify the veracity of multiple documents. The big limitation of this technique is that it requires documents to be in a certain format. Besides, it cannot be used to validate all kinds of documents. This is why most future-oriented real estate businesses are asking their respective real estate software development company to develop custom AI software to help them deal with all the data and have it integrated into their existing workflows.
Such a solution can easily read, analyze, and organize the important data points automatically or through minimal human involvement, ascertaining better productivity and accuracy in the process. Other than optimizing the process in itself, the software also saves companies fortunes by eliminating tons of manual work, which would require a lot of staff, their remuneration, and other expenses associated with creating a workspace for them.
Artificial Intelligence (AI) is transforming the real estate industry by helping companies to automate processes, make better decisions, and improve customer experiences. Here are eight top AI solutions that are making an impact on real estate companies:
- Predictive analytics: Real estate companies use AI-powered predictive analytics to forecast market trends, identify profitable investment opportunities, and optimize property values.
- Virtual assistants: AI-powered virtual assistants help real estate companies automate customer interactions, including booking appointments, answering inquiries, and providing property information.
- Image recognition: AI-powered image recognition technology is used to analyze property images and videos, enabling real estate companies to identify features, such as the number of rooms, type of flooring, and other property details.
- Chatbots: AI-powered tools help real estate companies handle customer inquiries and provide instant responses. They can answer questions about property features, pricing, and availability and schedule property viewings.
- Smart home technology: AI-powered smart home technology is transforming the real estate industry by allowing companies to offer features such as smart thermostats, security systems, and lighting controls, which are becoming increasingly popular with buyers and renters.
- Natural language processing (NLP): NLP is used to analyze and understand customer conversations, providing real estate companies with insights into customer preferences, complaints, and feedback.
- Personalized marketing: AI-powered marketing tools help real estate companies to target specific audiences with personalized marketing campaigns based on their preferences, behavior, and interests.
- Property management: AI-powered property management systems are used to automate maintenance requests, manage tenant communications, and optimize rental yields.
Real estate has always remained among the slowest sectors when it comes to adopting new technologies. The data and process-intensive tasks make it difficult for them to transform their work models to include any disrupting technology. However, things are changing now. The ever-growing competition and the struggle to remain relevant have made it necessary for realtors to come out of their comfort zone and embrace technology to sustain themselves in the future, and without a doubt, the technology that has convinced them the most in accepting this change is AI.
Applications like predictive analytics, natural language processing, and simple analytical capabilities of AI have resolved many of the time-honored challenges faced by the industry. Now thanks to applications like predictive maintenance, property evaluation, chatbots, and more, the industry is quickly becoming more and more lucrative and engaging for customers. And while there are amazing AI-based real estates apps like Doxel, Houzen, and Localize. City, what companies today require is a custom solution. As such, hiring an enterprise software development company that deals in AI remain the best solution for them. A trustworthy IT partner with relevant experience and expertise in AI can transform the business overnight to improve lead generation, conversion optimization, and overall brand value.
Apart from this, if you are interested to know about Ignoring These Top 9 Real Estate Companies in New Jersey Will Cost You Dearly then visit our Real Estate category.