If you are interested in how AI can be used in real estate, you can sign up for my newsletter, and I will send you a complimentary guide to AI and Real Estate.
In the meantime, let’s take a look at some of the ways AI is already being used in the real estate industry.
- Automate Real Estate Pricing and Valuation
If you are a real estate agent, you are probably familiar with the tedious and time-consuming process of value pricing your listings.
This process is typically done manually, and involves crunching a lot of data from various sources and using a complex formula to determine a list price.
And while this can be done in a very accurate way, it is a time-consuming process that involves a lot of manual work.
If you are an agent that has 10 listings, you could be spending hours and hours on this tedious process, and that is time that could be spent on other things, like getting more listings.
One way to make this process simpler and more efficient is to use AI to automate this process.
This is already being done in some real estate companies.
One of the most popular companies that is using this technology is Redfin. They have created a pricing engine that automatically determines the list price for a home.
This engine leverages various data points, such as the zip code, the condition of the property, the number of bedrooms and bathrooms, and other similar properties that are currently listed for sale in the area.
Using this data, the engine determines the right price for the property, and this is the price that is listed.
This allows Redfin agents to spend more time on other things, like getting more business, and getting their clients more buyers.
They can even use the Redfin chatbot to answer questions about pricing and more.
This technology is used by Redfin agents in the US, UK, and Canada, and is expected to expand to other markets in the coming years.
- Integrate AI into Real Estate Sites
Some real estate companies have started integrating AI technology into their websites.
For example, one of my favorite real estate sites, Zillow, has introduced a new smart search feature, which uses AI to automatically filter listings based on what the user is looking for.
This new feature is called Zillow Smart Search, and it can be used to filter listings based on the size of the home, the number of bedrooms and bathrooms, and the school district.
The search results are automatically filtered, and only the listings that match the search criteria are shown.
This feature is still in beta, and the company is still working to improve it, but it is already quite impressive.
- Integrate AI into The Real Estate Brokerage Process
Some real estate companies are already using AI in their brokerage process.
For example, one of the largest real estate companies in Canada, Royal LePage, is using AI to help their agents sell more homes.
This technology is used in their sales office, and it tracks the level of activity and progress of each listing.
The AI system then assigns a level to a listing, which starts with a level 1. This level is assigned when the listing is first entered, and it moves up as the listing progresses through the sales cycle.
The system also tracks the number of showings that have been requested, and the level of activity for each listing.
The AI system then uses this data to determine the best time to market the listing to potential buyers.
This allows the company to market the property at the right time, and avoid over-marketing the listing. This can result in a faster sale, and a higher price.
This technology is also used in Royal LePage’s website, where it helps the agents sell more homes.
The software automatically determines the price of a listing, based on the market data, and the type of home.
The AI technology is used to create a price estimate, and it also tracks the number of showings for each listing.
This helps the agents understand if the listing is being marketed correctly, or if the price needs to be adjusted.
- Use AI to Analyze Real Estate Data
Another way that AI is being used in real estate is to analyze data that has been collected from previous homes sales.
This data can be used to determine the best time to sell a home, and the best price to list a home for sale.
This data can also be used to determine the best possible price for a home, and how much it should be marketed for.
One of the most popular companies that is using AI to analyze this data is Zillow.
They have created their own algorithm that is used to analyze the home price and the home value of homes that have sold in the past.
Using this data, the company can determine the best possible price for a home, and the best time to list it for sale.
This helps the company market the home at the right time, and at the right price, which can result in a faster sale, and a higher price.
You can learn more about this technology by reading my in-depth article about Zillow’s algorithm.
What About the Future of AI in Real Estate?
The technology that is being used in the real estate industry today is still very basic, but it is already being used in a really powerful way.
We are still in the early stages of AI technology in real estate, and the future is looking very bright.
As we move forward, we should expect to see more AI technology come into the real estate industry.
The results will be more accurate home valuation estimates, better pricing, and a more efficient and effective sales process.
There are a lot of challenges that need to be solved before AI can be used in all aspects of real estate, but I expect this technology to continue to grow in the near future.