Artificial intelligence (AI) is paving the way for success in many sectors, and the real estate industry is no exception. It has unlocked a new era of business transformation in the real estate marketplace. With its unparalleled capabilities to redefine the way how we buy, sell, and invest in properties, AI is catalyzing a paradigm shift in the landscape of property ownership and rental living ecosystems.
Unsurprisingly, the future of real estate heavily relies on AI solutions. This intelligent system has made property management more efficient, streamlined, personalized, and customer-centric. From automating processes, enhancing customer experiences, and increasing productivity to providing valuable insights for better decision-making, AI is dramatically transforming how we interact with the real estate market. With several use cases, examples, and benefits of AI in the world of real estate, the industry is witnessing exciting advancements (more details in the coming sections).
According to JLL research, enterprise use cases for generative AI demonstrates a substantial opportunity for the real estate industry, with a projection to grow the market by $98.1 billion by 2026 at a CAGR of 32%. The research further shows that globally, there are more than 500 AI companies, and 37% of them are based in the US, offering AI-powered services to real estate businesses and delivering value in terms of cost-savings and improved efficiency.
What are the Benefits of AI in the Real Estate Industry?
The benefits of AI in real estate are numerous and significant. With millions of properties being constructed and listed every year, it helps acquire a huge amount of data about people’s buying and selling patterns. Further, it optimizes the data to match the right buyers to the right sellers without the need for any intermediaries.
One of the most significant ways AI benefits real estate businesses is by providing genuine leads, helping them filter out potential buyers from casual window shoppers. Also, it gives buyers complete information about a particular property, facilitating better decision-making. Unsurprisingly, AI in real estate is a valuable tool for both companies and customers.
24/7 customer support, workflow automation, and error reduction are some other remarkable benefits of using AI in real estate. However, it is just a small fragment of limitless capabilities. Let’s delve deeper to understand the various benefits, use cases, and examples of AI in real estate, catalyzing a paradigm shift in the industry.
Top 10 Use Cases of AI in Real Estate
The first of the many use cases of AI in the real estate market occurred in 2018, acquiring two properties in Philadelphia for $26 million. The multi-family buildings were picked using an AI algorithm called “soon-to-market detection.” And since then, AI and ML use cases in real estate have been growing exponentially, taking the industry to unprecedented heights. As AI and ML in real estate continue to make significant inroads, realtors use these intelligent systems in multiple ways, and the implications are profound. Let’s discover the most remarkable use cases of AI in real estate.
Listing Descriptions Generation
AI can seamlessly automate the tedious and time-consuming task of listing descriptions. While there are many off-the-shelf software that can effectively create property listings, you can always build a custom one from scratch or integrate an AI language model like ChatGPT into your existing system. For instance, you can build a custom AI application for real estate and give it a relevant prompt related to the property description to generate a template, and you will get the draft ready in seconds. Now, you can use this template every time you need to create a listing description.
With the rise of AR and VR in real estate, potential investors can get a realistic view of the property without even stepping foot on the site. Realtors can offer virtual tours to the buyers that give a true sense of how the space looks and feels. This innovation comes in handy, particularly for properties that are still being constructed or located abroad. Also, it helps maintain social distancing norms and prevents pre-booked viewings from cluttering a realtor’s calendar.
Lead flow is the lifeblood of any business, and real estate is no exception. AI helps realtors identify potential leads from a variety of sources, such as social media, landing pages, website visits, and online listings. It allows sales representatives to invest their efforts in the most qualified leads, which will likely convert into sales. Eventually, it makes it easier to close deals at the earliest possibility. By targeting efficient leads, real estate businesses can achieve higher conversion rates and increased sales.
AI tools for real estate can help streamline property management in various ways. For instance, it enables businesses to track rental and property listings, tenant applications, lease agreements, maintenance requests, and other essential information. This tracking outcome can assist realtors in identifying tenant preferences, maintenance issues, price trends in certain areas, and seasonal availability. Furthermore, AI can also scan property documents for common errors like missing signatures, empty fields, and so on.
Fraud and Compliance Detection
With the rising trend of AI-generated images and content, there has been a major challenge for MLS providers to detect manipulated images and deceptive descriptions. Any fraudulence in product descriptions or pictures can bring dire consequences for MLS administrators and brokers alike, as there are many penalties for inaccurate listing data. AI emerges as a rescue here. Computer vision, AI and ML in real estate can seamlessly detect listing manipulation and even help flag potential compliance issues against the Fair Housing Act, enabling realtors to ensure accurate and compliant listings.
There are many house searching applications that provide advanced search filters, enabling investors to choose a property for purchase by setting their preferences for price, design, square footage, locations, etc. But, finding suitable properties still can still be a challenging task due to the various irrelevant filters. Even if these apps don’t prove true to investors’ expectations, AI in commercial real estate can effectively address this issue. For instance, AI-powered suggestion engines can quickly narrow down property searches based on individual preferences, providing personalized recommendations to feasible investors. Trulia can be a great example of property search application that leverages AI-driven personalization to deliver tailored property recommendations.
Automating Due Diligence
“To err is human,” and with all the manual processes of data entry in real estate, there is a lot of room for error. It is where AI comes as a rescue, comparing vast amounts of data and identifying inconsistencies or inaccuracies between documents like lease agreements, loan applications, etc. It is highly crucial during the loan approval process, helping detect mismatched values listed on each document and reduce the risk of fraud in the loan sanction.
What is the right price to purchase a property that can give a good return tomorrow? It is a question that lingers in everyone’s mind when investing in a property. Conducting the property analysis and future validation is an intimidating job, as calculating the right price depends on several factors. These factors include but are not limited to crime rates, transportation means, sound disturbance, schools, hospitals, light sources, purchasing trends, future development in the area, and so on.
A common realtor can’t evaluate all the small details and visualize the right price. It is where AI for real estate comes in handy. AI applications in real estate can help businesses provide correct information about a home. For instance, AI can evaluate the seasonal light disparities and verify realtors’ adverts for ‘sunny’ homes. It also evaluates the property features like home décor, age, size, number of rooms, etc., to decide on a viable price range.
The limitless capabilities of AI in customer support are hidden from none; it has already revolutionized businesses across industries. Seeing the growing potential of AI in customer service, now companies in real estate are also capitalizing on AI-powered solutions. For instance, AI chatbots are now increasingly used to respond to customers’ queries in a timely manner. With AI-powered real estate, users need not wait for long periods to get answers to their queries, leading to enhanced customer experience.
Intelligent Data Processing
Analyzing documents in real estate can be a complex and time-consuming task. Inconsistent templates make extracting data from different formats and organizing it relevantly even more challenging. AI can easily extract relevant information from different documents like appraisals, lease agreements, and loan papers and can complete the task in minutes which would otherwise take days when done manually. Moreover, with optical character recognition (OCR) technology, even handwritten or poorly scanned documents can be organized with high accuracy. Further, this data can be operated in the existing workflows, which everyone in the company can access with a simple search.
AI in real estate is transforming the industry by automating workflow, reducing errors, and driving operational efficiency. The use cases of AI in real estate mentioned here are just the initial phase of automation and advancements. On a broader scale, AI for real estate demonstrates the immense potential to bring revolutionary changes in the industry.
What are Some Examples of AI in Real Estate
The real estate companies have been leveraging different technologies like robotics, the Internet of Things (IoT), artificial intelligence, machine learning, and more to catalyze a paradigm shift in the industry. These companies use AI in real estate to revolutionize the buying, selling, and investing process in property. Here are the top five examples of real estate companies that use AI and ML in real estate to attract more investors.
Keyway is an AI-powered real estate investment manager that leverages AI, data science, and other technology to make better decisions and achieve greater results. The company partners with multifamily property owners and private practice doctors, veterinarians, dentists, and other medical professionals in the healthcare sector to offer them service models like rent-to-own and transition-out.
Headquarters: New York
Foundation Year: 2020
Zillow, a trusted name in the real estate industry, leverages AI to analyze digital photos and other relevant metrics to generate free property value estimates (Zestimates). This technology harnesses the power of a neural network, which is trained on vast datasets comprising millions of photos and corresponding home values. The neural network “reads” the photos in new property listings to extract relevant information. The AI-driven estimates project property value with a national median error rate of 2.4%, contributing to highly accurate predictions.
Headquarters: Seattle, Washington
Foundation Year: 2006
Redfin is a technology-powered real estate broker, lender, instant home-buyer (iBuyer), title insurer, and renovations company that uses AI to provide automated property valuations. They combine AI-driven data analysis with human expertise to offer accurate valuations to realtors.
Headquarters: Seattle, WA
Foundation Year: 2006
Trulia is a prominent real estate marketplace that utilizes AI to provide personalized property recommendations and enhance user experience. By analyzing user behavior, search history, and preferences, this AI-powered platform offers tailored property suggestions matching individual preferences and interests.
Headquarters: San Francisco, California
Foundation Year: 2005
Entera, one of the leading examples of AI in business, operating in the real estate industry, offers a residential real estate investing platform that leverages AI to provide automated processes and intelligent analytics for discovering, purchasing, and managing single-family homes. The company operates across the US markets, and its platform handles 1,000+ transactions per month.
Headquarters: New York
Foundation Year: 2018
The Future of AI in Real Estate
AI in real estate has already made some transformative changes in the industry by using robotics, machine learning, deep learning, big data, and other algorithms. The above-mentioned use cases and examples of AI in real estate give a good glimpse of how this revolutionary technology has made a significant impact in areas like predictive analytics, workflow automation, data visualization, property estimates, and others. It demonstrates the immense potential of AI in real estate, catalyzing a paradigm shift in the marketplace.
With the ever-increasing integration of AI in the real estate market, we can expect to see its more transformative evolution in the coming years. As AI continues to widen its horizon in the real estate landscape, it is more likely to become a game-changing technology for companies looking to redefine their property management process.
Develop Custom AI Real Estate Solutions with Appinventiv
The future of real estate heavily relies on artificial intelligence and machine learning. It is why businesses across the globe are massively embracing AI real estate solutions to keep pace with transformative advancements and gain competitive advantages. However, real estate AI software development is quite a challenging and time-consuming task. It requires the expertise of a proficient real estate app development company like Appinventiv that can create a custom AI solution as per your business needs.
Being a leading AI development company, we have a team of 1200+ experienced tech professionals who can build cutting-edge AI solutions with advanced capabilities, helping your business with data analysis, business intelligence, brand identification, and more. So, if you want to power your business with AI, don’t hesitate to leverage the benefits of our artificial intelligence real estate services.
In our 8+ years of experience, we have delivered countless successful AI projects for many reputed clients like YouComm, Vyrb, JobGet, etc., helping them automate their processes and expand their digital footprints.
Discuss your project requirements with our efficient tech support team and we will be glad to assist you.
Q. What does AI mean in real estate?
A. AI in real estate refers to the application of machine earning, deep learning, robotics, and other computer algorithms to analyze vast amounts of data and automate processes. AI-powered real estate enables accurate property valuations, personalized property recommendations, efficient lead generation, smart property management, data-driven decision-making, and so on. It helps redefines the way real estate businesses buy, sell, and invest in properties.
Q. How to use AI in real estate?
A. AI in real estate can be used in various ways, enhancing user experience and driving competitive advantages. Here are some of the most common use cases of AI in real estate:
- It can analyze use behavior and future market trends to organize valuable data.
- AI-powered chatbots help enhance customer support.
- Generative AI in real estate can help create a wide variety of product listings and marketing content.
- AI can generate personalized property recommendations as per the users’ interests and preferences.
- Workflow automation is one of the most crucial use cases of AI in real estate.
Q. How to adopt AI real estate?
A. For a seamless and successful AI adoption in your real estate business, you need to follow a strategic step-by-step process. Here are some easy steps to adopt AI real estate solutions the right way:
- Identify pain points and areas where AI custom solutions can bring value to your business.
- Partner with a reputed AI development company that aligns with the specific needs of your project.
- Discuss your project requirements briefly with the selected real estate app development company.
- Train your team to embrace AI real estate solutions and integrate them into existing workflows.
- Evaluate the performance of your custom AI solution and make essential modifications to ensure the successful adoption of AI your real estate business.