How Will Artificial Intelligence Change the Real Estate Industry?
AI may seem like the solution for most, but its effects could also be dangerously disruptive to our everyday lives. AI could replace human workers in mundane and repetitive roles with computers instead, leading to job losses as people's roles are replaced with computers instead.
AI can have an enormous influence on how people use and engage with the internet; for instance, AI-powered recommendation engines can assist consumers in finding properties relevant to them.
How AI Will Help Home Buyers
Modern home buyers can often struggle to locate their first property. Thanks to AI, however, these processes have become much smoother and faster than before.
As a result, new homeowners are more likely to locate their dream homes and make purchases they're pleased with.
AI-powered tools can also offer home recommendations and virtual property tours to prospective buyers, giving them an easy way to quickly see which homes are within their price range and location.
Jeff Lobb, the founder, and CEO of SparkTank Media, notes that artificial intelligence (AI) will only benefit home buyers when combined with appropriate real estate agent skills. According to him, AI "can be helpful but cannot replace good agents," as reported in a Lifewire phone interview.
How AI Will Help Home Sellers
As AI advances, it will become capable of making predictions about what aspiring homeowners desire in their new homes and helping them select furniture and decor items tailored specifically to them. This ensures they experience ownership from day one!
AI can assist real estate professionals in conducting faster and more accurate property inspections and assessments by analyzing images to detect key features without the need to visit each property in person.
How AI Will Help Homeowners
AI technology is already helping homeowners reduce costs by automating routines and tasks, such as voice-controlled digital assistants such as Amazon Echo Dot and intelligent thermostats that turn themselves on or off automatically, or lights that switch on/off automatically.
These systems not only save consumers money but can also assist in conserving energy and helping to protect the environment by monitoring energy consumption patterns and suggesting ways for improvement.
Currant, for instance, is an advanced smart plug that utilizes AI technology to detect when devices are drawing power and switch them off when no longer necessary.
Homeowners can utilize AI-powered home security systems to monitor their homes and detect intruders, yet there remain concerns over how these systems will function if there are power outages or network disruptions.
How AI Will Help Lenders
At present, only about a quarter of lenders have employed AI/ML technology. Most often it has been implemented to either improve operational efficiencies or enhance consumer/borrower experiences.
AI/ML technologies in lending can help lenders lower labor costs, automate processes, and remove human error by basing decisions solely on data. They also can assist financial institutions in meeting the needs of minority groups more inclusively.
Lenders utilize AI-powered credit scoring to analyze borrowers' income and credit history in order to assess whether they qualify for loans. By offering customers more tailored products based on risk assessment than just credit scores alone, lenders can better offer loans.
How AI Will Help Real Estate Agents
Real estate agents can take advantage of AI-powered marketing tools, allowing them to customize their outreach and connect with prospective clients more easily. Furthermore, this technology helps real estate agents identify promising leads while optimizing sales strategies to close more deals.
AI can assist agents in selling more homes and increasing revenue. Furthermore, it can streamline workflows while improving customer service for potential buyers.
Agents can leverage AI-powered appraisal solutions like HouseCanary to perform faster and more accurate home appraisals. Machine learning algorithms use property valuation based on its condition.
AI seems to be the wave of the future. If you plan to buy a home, sell a home, or you’re a real estate agent or lender, expect to see more AI technology coming into the industry.