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Artificial intelligence (AI) is easily one of the most anticipated upcoming technologies. Understanding the impact that a piece of technology will have on your business will not only allow you to prepare for any adverse impacts, but it will also allow you to adapt your business to assimilate the technology to optimize your business.
Despite being one of the older industries, the real estate sector is one that has been gradually adapting to emerging technologies. While it may seem like artificial intelligence is still a long way from being implemented into the industry, it has been used in the real estate industry since 2018.
The first AI transaction took place in Philadelphia, where two buildings were purchased for a sum of $26 million based on a "soon to market" algorithm. This algorithm was used to analyze large sums of data that included potential economic value, KPIs, property characteristics, and risk factors. The algorithm referenced all these factors as a basis for determining whether a property had profit potential.
The algorithm was used to make another purchase in 2020 with promising results.
Anything that can more or less guarantee high-profit margins is something that decision-makers are going to adopt into their business. Even when that alone is a compelling reason to integrate AI into your real estate business there are many other benefits that make AI a great addition to your toolkit.
AI-driven apps, chatbots, and smartphones are all potent tools at improving lead generation and content marketing by determining which people are most likely to convert into a sale. This also allows businesses to pour their efforts into the marketing strategy that yields the best results. AI-driven chatbots also enable businesses to answer FAQs on demand. This also allows them to push content to their prospective clients automatically.
Since artificial intelligence is able to analyze large amounts of data, it can also be used to make accurate predictions of a property's future market value by referencing current market data, neighborhood characteristics, and property attributes.
This data can then be used to pinpoint properties that will appreciate high-value properties in the future. This allows real estate investors to acquire properties before they appreciate in value, thus maximizing profit margins in a way that no human data analyst can foresee.
Before making a sale on a property, it's important to provide clients with accurate information that will allow them to determine if the property you're selling is what they're looking for.
Artificial intelligence will allow businesses to go beyond basic information and will allow them to include information on extraneous factors that affect the quality of life of property residents. Some examples of these factors are:
– Number of sunlight hours in a month
– Quality of local transportation
– Quality of local schools
– Parking availability
– Noise levels
This not only establishes your business as one that makes sure that your customers get the property that they need, but it also drastically improves the customer experience.
Another potential benefit of utilizing artificial intelligence in a real estate business is that it allows businesses that own several properties to recommend properties that customers are most likely to buy based on customer preferences. This not only means that you drastically increase the chances of making a sale, but it also helps with customer satisfaction.
This is achievable by leveraging the ability of artificial intelligence to gather and process copious amounts of customer data to determine which properties specific customers are most likely to purchase. Customer data such as purchase history, properties viewed, and search filters used are only some of the most basic data that can be used as a basis for a customer's preference and for determining the best approach to a customer's needs.
This can also help you get in touch with companies like Nexus Homebuyers, to enable you to sell your properties much quicker.
Property management is a tedious task, especially when dealing with multiple properties. The sheer amount of data that property managers need to track will only increase as more properties are acquired by the business.
Leveraging artificial intelligence will help property managers keep track of maintenance requests and rental applications. This data will help managers identify the most prevalent maintenance issues and when they occur, as well as tenant characteristics that can help determine whether a tenant is ideal or risky.
This data can also enable property managers to automate tasks. For example, when a maintenance request is received, the system can automatically contact maintenance staff to rectify the problem, and it will also be able to log the request and organize the data accordingly so that reports are much easier to make.
These are only the most basic applications of artificial intelligence in the real estate industry. As the technology develops, more applications for it will be discovered. If you haven't laid down plans to integrate artificial intelligence into your real estate business, you might want to consider doing so in the near future.
