Scanning the headlines of today’s business or tech press, you will quickly come across headlines touting the game-changing nature of artificial intelligence (“AI”) and machine learning (“ML”). As with any disruptive technology, there is the question of whether it will have real staying power in the years to come. Technology for technology’s sake isn’t enough; instead, technology must solve real-world problems for businesses and customers.
At least in the real estate sector, however, we are confident in stating that AI and ML are playing (and will continue to play) an extremely important role. Whether you are a real estate agent looking to leverage this technology or are a home buyer or seller who is looking to remove some of the friction in the sales process, AI and ML will make your life much easier.
The Role of AI and ML in Real Estate
At this time, AI and ML in real estate are primarily focused on helping bring more personalized information to consumers looking to buy or sell real estate. Essentially, they are, and will continue to be, vital forces in making the real estate market less complicated for the everyday consumer.
The earlier era of online home searching, for instance, was primarily centered on getting real estate listings online. Even better, prospective buyers could filter out properties based on things like location and price. But even with those filtering options, buyers would have to search through hundreds (or even thousands) of offerings. With AI and ML, however, digital real estate companies like Zillow can analyze a user’s search history, compare it to similar users, and present more relevant search results. AI and ML help users spend less time reviewing irrelevant listings and more time analyzing listings that will likely pique their interest. In the future, search algorithms will become even more advanced, pairing users with listings that are uniquely suited for them. Chatbots will connect with prospective buyers, answering basic questions about a property and referring certain questions to a human agent if they are unable to provide an answer. The process will be more seamless, quicker, and will create warmer leads for real estate agents.
Real Estate agents can use the myriad of tools that may soon become available to assist in making their jobs easier. For instance, Google’s Duplex – a human-voice-mimicking assistant that helps you call restaurants to assist you in making reservations – can eliminate countless hours spent in confirming and booking viewings for your clients; that is, if Google decides to go this route. Or, look at Revaluate, a tool that predicts how likely a lead is to move based on personal information.
Companies are aggressively using data to help consumers discover not only properties available for sale, but accurate estimates of the value of those properties. In the past, human emotions and bidding wars were key determinants in property value. Now, however, AI and ML can canvassan extremely large data set, evaluate all of that data, and release an accurate prediction of that property’s value. To put it another way, AI and ML make it much easier for prospective buyers to leverage data science to find the best properties at the fairest prices.
In the future, we expect AI and ML to generate even more accurate property values. The simple fact is that thousands of different factors can affect the value of a home. While today’s AI and ML algorithms do a good job settling on a fair price, we expect more advanced algorithms to bring even more fairness and objectivity to real estate prices. Not only that, but they will be able to predict the future value of homes – based on macro-economic factors and more – but to be taken with a grain of salt (nobody can truly predict the future).
Ultimately, errors and bad purchases caused by human omissions and errors will occur much less frequently. Instead, buyers, sellers, and real estate agents will be able to look at the same price, which has been objectively determined by AI and ML algorithms canvassing thousands of variables, including renovations, machine-vision assessed property images, stigmas, income generation and specialty properties.
At ChatVal, we are tremendously excited about the present and future of real estate technology. We use AI to predict the value of homes across the Greater Toronto Area. Our mission is to demystify the real estate process for the consumer by leveraging AI and ML. All of us at ChatVal believe the consumer has a right to know how much their home, often one’s biggest asset, is worth – as this can help make vital financial and lifestyle decisions for themselves and their families.
To help you get a more objective value for your home, we created a smart bot called Val. Val leverages data science and machine learning to help people in Ontario instantly see how much their home is worth. Rather than relying on real estate agents or waiting days for an answer, you can immediately find an objective valuation for your home.
We are working hard to make Val better, faster, and easier for all of our users. Ultimately, we are extremely excited to be at the forefront of real estate’s future. It is a future heavily reliant on AI and ML to make the buying and selling process easier for everyone involved. We can’t wait to see what happens next!