AI has transformed real estate in fundamental ways, changing the way appraisers, lenders, and developers work.
For instance, Zillow, a real estate company in Seattle, uses AI to come up with property value estimates from digital images. This technology relies on deep neural networks trained on millions of images and property valuations to read images in new listings for relevant information. According to the company, the resulting metrics, which are also informed by other metrics like square footage, predict the value of a property with a 2% median error rate.
AI in the CRM platform at Compass, a real estate company based in New York, nudges real estate agents to contact clients who are most excited to make a purchase. The platform sends agents heads-ups when clients are especially active on some websites and auto drafts emails to clients to expedite the outreach process. Redfin, a real estate company based in Seattle has used AI to automate the property recommendation process with an AI matchmaking tool. In this company, AI essentially augments human agents and handles some labor-intensive elements of the human role. Through ML and AI, the company lets the system automate the tasks of agents like scheduling of tours, answering consumer inquiries, and also captures the customer interaction data points. This makes the dream house come true with a minimal physical effort from the agent.
Although it can be argued AI adoption is lagging behind compared to other industries, this does not reduce its impact. The digitalization of the industry makes it simpler than ever to purchase or sell property and is here for the long term. AI also plays a role in generating leads, communication and marketing. Real estate firms that use AI will clearly become more competitive compares to those that do not.