If you ask any real estate investor, they’ll tell you the real estate market is one of the most resistant to technological adoption.
Apparently, not if the technological adoption is AI. Few other industries are likely to resist the overtures of artificial intelligence.
AI confers several advantages to any real estate investor. You’re losing out if you’re yet to jump onto the bandwagon.
I have outlined seven artificial intelligence use cases that will change your approach to the real estate market.
Let’s dive in
1. Market Analysis
Give data to an AI algorithm, which will yield incredible results. One way Ai has changed the real estate market is through market analysis.
Since Covid changed the real estate market, investors have become more cautious. One way to be careful but not miss out on good deals is to use AI to analyze real estate market trends.
One such application is the Scenario and Sensitivity Analysis. This application allows an investor to know the operational and financial potential of the property before purchase.
The investor can then make a more informed decision to buy or not buy. It’s like having all the right chips in a poker game.
The cumulative effect of this analysis is better investment opportunities and more efficient market decisions. If you ask any investor, that could be the difference between crushing losses and a tidy profit.
2. Making Sense of Property Valuations
Automated valuation tools will help any real estate investor in their quest to understand why specific property valuations.
Most real estate brokers have these tools to help clients make better investment decisions. It’s also possible for these tools to alert you whenever a property you would be interested in is on the market.
How nice is that?
3. Property Analysis
AI systems feel at home in the world of data. Their predictive models devour data like no one’s business. That’s why one of the use cases of Ai in real estate is property analysis.
How this works is that Ai systems critically analyze the property in the market to determine if they would be a good fit for a customer.
For instance, AI algorithms can analyze the property and determine the available social amenities and how far they are. They can also explore the amount of sunshine available in the house and how often it gets to the place.
Additionally, Ai can also analyze the property’s resilience to noise, besides the suitability of the public transportation system to a potential buyer. If you can exploit that, you’ll make more informed choices in your sales or buys.
4. Target Property Recommendations
This is a direct steal from your Netflix recommendations list. Yes, that’s also possible in real estate, thanks to AI. Algorithms will analyze different properties and draw up a list of recommendations that best suit your needs.
AI can work on real estate websites to ensure that buyers only get listings they want to see or those they like. Here, the Ai algorithms will use real-time and historical behavioral data to predict customer patterns.
Since Ai is highly predictive, it will only improve at recommending properties a particular customer will love.
5. Prediction of Loan Defaults Before They Happen
Wouldn’t it be great if you could tell if someone will default on a loan before you even lend them?
Credit history can tell you how much of a risk someone is. But it can’t be as near faultless as artificial intelligence analysis will be.
Crowdfunding platforms will use AI to determine the risks of payment defaults and thus help you to make better real estate investment decisions.
6. Property Management
Property management can be a hectic affair. You never feel you’re on top of everything. If you don’t know the secret, I’ll shout it out to you- AI will change how you manage properties.
AI can analyze the property and tell when you need to make critical structural or maintenance changes. Besides that, you can also know the right time to add the rental charges thanks to AI.
Property management companies can use Ai to analyze the rent trends in a specific geographical region and then automatically raise the rent on the lapse of a lease.
7. Dealing With Boring Repetitive Tasks
Every investor wants to invest their time in tasks that do matter. However, there are some tasks most would find boring thanks to their repetitiveness. Repetitiveness breeds predictability, and that’s where AI excels.
Assigning AI predictable tasks like sending client messages frees time to deal with more practical activities. In that way, Ai acts like some personal assistant.
The Bottom Line
Like in other fields, real estate artificial intelligence also makes work easier for industry players. If you want to maximize profits, avoid wrong investment decisions or stay on top of things, it’s time you gave AI a chance.
It might only be in its infancy, but AI will soon cause massive disruption in the real estate industry. If you want to explore the possibilities of Ai in real estate, talk to our real estate technology expert and start making more intelligent business decisions.
Contact us today.