The Impact Of AI On The Real Estate Market

Many years ago, the internet had a huge impact on the real estate market, changing the way real estate was viewed and transacted. With the advent of AI (artificial intelligence) now permeating all aspects of our society, expect the home buying and selling process to see huge changes and perhaps, challenges.

Because a real estate transaction doesn’t happen frequently in a person’s life and involves a large sum of money, the power of AI can bring the homebuyer closer to the emotional and physical process of purchasing a home.

How AI can influence the real estate market:

Virtual viewing and staging
All homes on the market have an online presence whereby the potential buyer can view all aspects of the home from a convenient location, without having to physically visit. With AI the opportunity for innovation is endless, and there will be an increase in the interactive tools a buyer can utilize to view the home and its various aspects.

Using virtual staging with enhanced 3D modeling, clients will have the ability to use their imagination to view their home with their own preferences – bring their current furniture, or other additions into the home to see how it would look in the rooms.

Predictive market analytics
Predicting how property prices will fare in a particular area is an important area for developers and the real estate industry as a whole. It requires many hours of research using historical trends, redevelopment plans, and many other data points that have limitations to the human mind. AI can look at millions of data points such as news, business registrations, crime stats and thousands of other factors and predict future market trends in just minutes.

Finding potential development sites.
Historically, sites were found by driving around a town or city, using Google searches and zoning maps from the local municipality. AI can be very useful for developers to analyze sites and properties that would otherwise not be considered as potential development sites.

Predictive maintenance
Property managers face huge costs when something goes wrong in their property, especially those who do not have in house maintenance staff. AI software will have the ability to analyze thousands of data points and estimate when and where care may be required, and in some cases, even schedule the maintenance, thereby reducing the tendency for large breakdowns. Aspects of the property that are not being handled properly could be identified, thus preventing further problems down the future.

Cost management through automation
Utility bills for tenants can be high as many forget to switch of lights, appliances, adjust heating when not at home. AI can learn the exact patterns of tenants’ movements and habits and arrange things accordingly. Heating can be linked to the weather and wake up times, appliances like tvs can be put on standby mode or switched off completely when the tenant is not home. All these actions can bring about lower costs and better efficiency.

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