AI for Real Estate in 2023: Benefits, Use Cases, and Examples
The real estate industry is no stranger to the Artificial Intelligence (AI) revolution. In fact, the market for AI for real estate is expected to reach $1335.89 billion by 2029, with a huge compound annual growth rate (CAGR) of 35%.
Offering a bunch of benefits, AI is changing the way commercial properties are bought, sold, and invested in. This blog explores all the good things AI does for real estate, along with its innovative use cases and inspiring examples.
What are the Benefits of AI for Real Estate?
Using AI for business makes it more profitable for everyone involved in the real estate industry. Let’s explore the fantastic benefits it brings to the market:
Real estate companies employ AI-driven solutions for putting houses up for sale, dealing with all the paperwork, and ensuring transactions are correctly done. Automated data entry, document management, and communication lead to reduced room for error, more efficiency, and less hassle.
24/7 Customer Support
From property information to general queries, an AI chatbot assistant or virtual assistant can answer all your questions, and they do it right away! This improves customer satisfaction and engagement. This real-time support gives a smooth experience for potential buyers or renters, no matter what time or season it is.
Improved Home Search
When you’re house hunting, you usually search online for places based on location, price, and size, right? It’s convenient and easy. But sometimes, you have too many options, and you might miss out on some great homes. AI studies how you search and determines what you want to make your search more precise. This way, AI makes the home search less daunting and thus improves the home-buying experience.
With an efficient purchase strategy and regular asset management, AI-powered intelligent CRM (Customer Relationship Management) systems assist property agents in reducing errors and making asset investments smarter. It helps them automate entering data and predict how much rent they can get, easing various aspects of property management and investment. So, it makes managing properties and investments way easier.
Better Client Lead Identification
An AI assistant could be a real estate agent’s partner in finding ideal clients. Well, take Zillow, for instance. It uses data analysis to distinguish serious buyers from window shoppers. Natural Language Processing (NLP) separates high-value interactions, helping hyper-local experts in niche client selection. Machine learning solutions, like Zillow’s Premium Broker Flex, accurately identify clients looking for an agent and charge upon when closing the deal.
Improved Transaction Process
AI brings quick closing times, innovative mobile apps, thorough compliance checks, and detailed reporting. With auto-fillable data fields, there are fewer data entry errors, making the whole process smooth for the users. AI’s smart and detailed reports help brokers and teams to evaluate and improve their performance.
What are the Use Cases of AI in Real Estate?
Here are the top use cases of AI in real estate:
Property Search and Pricing
Machine learning algorithms analyze vast datasets, including property details, where it’s located, what’s trending in the market, and old buying and selling histories. With all that info, AI-powered platforms can tell you the exact value of a property. It helps buyers and sellers know what they’re dealing with. For instance, Zillow’s Zestimate employs AI for business to estimate property values, giving users a reliable starting point for property transactions.
Virtual Property Tours
AI in business has changed how we check out houses for sale. Immersive 3D tours offer prospective buyers a realistic experience without leaving their homes. AI cameras capture and stitch together images, resulting in a navigable virtual tour. It’s a big time-saver for everyone and means fewer in-person visits.
Fraud Detection and Prevention
Real estate deals sometimes fall victim to fraud, leading to financial losses and legal complications. AI helps identify and prevent fraudulent activities by monitoring transactions and identifying anomalies. Machine learning algorithms can detect irregularities in financial transactions, verify identities, and track unusual patterns, reducing the risk of fraud in real estate deals. This way, AI adds an extra layer of protection, especially since real estate deals often involve big sums of money.
Listing Descriptions Generation
An AI assistant for business, like GPT-3.5 and GPT-4, can write up detailed and convincing property descriptions independently. They look at everything about a property, the neighborhood, and what’s happening in the market, and then they put together listings that capture the essence of a property. This not only saves time for real estate agents but also ensures consistency and quality in property descriptions.
Predictive analytics models assess data such as online behavior, demographic information, and previous interactions with real estate platforms. Using AI for business can also automate lead nurturing by sending personalized messages and content to potential buyers, increasing the chances of conversion. This saves time for real estate professionals. Plus, you get consistent and top-notch property descriptions every time.
Top 3 Examples of AI for Real Estate
Real estate companies have been utilizing AI in business to improve how they function. Let’s find out how these industry giants do it:
Zillow’s AI-powered Natural Language Search
“Beyond easy-to-filter criteria like bedrooms and bathrooms, buyers are considering many other specific features that match their unique lifestyle,” said Jenny Arden, Zillow’s chief design officer. “This new tool is a game changer for home shopping, because it helps shorten the sometimes long and stressful house-hunting process by creating an easy, more modern way to search, and it delivers relevant search results in a simple, uncluttered way.”
Zillow offers an AI feature that simplifies home searching. You can now just type in questions like, “Show me houses in Los Angeles with a backyard for under $1000K,” into the search bar. Zillow’s AI scans millions of listings to provide relevant results while refining its responses to natural language queries. You can also save your searches and get notifications for new listings.
Matterport’s Virtual Tour Platforms
Matterport’s Genesis uses generative AI learned from many real-world spaces. With it, you can play around with scanned rooms, move furniture, and even change the floor plan, all while keeping everything accurate in 3D. Moreover, it can help in energy conservation, maintenance prediction, security assessments, and diverse interior design applications.
Chatbots and AI Assistants in Real Estate Apps
Zillow’s alpha-phase ChatGPT plugin allows users to search for real estate listings through conversation with OpenAI’s chatbot assistant. OpenAI has implemented safeguards to reduce inaccuracies and prevent inappropriate responses. This innovative tool shows the future potential of using AI for business based on real estate.
With many real estate players investing in AI, like Zillow’s natural language search, Matterport’s Genesis, and ChatGPT’s real estate plugin, AI’s impact on real estate is palpable.
From automating workflows to offering 24/7 customer support, AI is making it easier to find the perfect home and find potential buyers. It also makes transactions easier and detects fraud while generating precise listing descriptions. To stay competitive, real estate professionals must embrace AI as it reshapes the industry’s future. Here’s how we can help you with end-to-end AI solutions for your real estate business.