Are you interested in finding off-market properties? Brokers and investors have their own particular methods for finding properties. But, all real estate businesses can benefit from the use of artificial intelligence (AI) and predictive analytics. The applications of AI in real estate are becoming more commonplace and an essential part of the real estate business.
AI technology can help buyers, real estate agents, and real estate investors in many facets of the industry. AI is able to collect and analyze huge sets of data like never before. As a result, complex algorithms and machine learning, which are the basis of AI, create predictive analytics to more accurately “predict” the future based on past or current data aggregation. With AI, old data can be utilized to help correlate new relationships between data points. The data can be scrubbed and organized into untapped insights as never before possible.
Better Property Value Predictions
One such application of the technology in real estate is the ability of AI to “predict” outcomes. For instance, AI technology in real estate can predict fluctuations in the sale prices of properties. It can also predict the rental value of properties. This is achieved by analyzing hundreds, if not thousands, of data points gathered from a variety of informational databases. Some of the data used in this type of AI-driven predictive analytics is gained from real estate agents across locales. The data goes beyond the scope of the traditional types of data sets.
One way AI in real estate predicts property prices is by considering data related to the underlying or emotional reasons why a buyer might purchase a given property. AI can find the hidden relationships among property details that are not readily or intuitively known, except by complex analytics that only AI is capable of detecting. For instance, AI can analyze photos of properties to discern that the property has granite countertops or a renovated and updated bathroom. AI may even consider how many four-star hotels are in the area or the number of gas stations close by. A discovered trend might be that a given property has a higher valuation if there are two grocery stores in proximity versus more than four.
These data correlations rely on proven statistical analytics of massive amounts of data points to predict price fluctuations. AI tools can continually learn from the data aggregated and take some of the guesswork out of property valuations in the real estate market.
Source of Good Leads
Real estate agents can use the power of AI to help distinguish between buyers having an actual intention to buy or just being curious and browsing properties. Predictive analytics in real estate can go beyond just buyer search histories with AI. Ads in the real estate space are highly targeted because AI creates a more accurate picture of what the buyer wants and what stage of the buying process they are in.
AI can even analyze the types of ads potential home buyers interacted with. This offers very personalized recommendations of properties, similar to recommendations found on Amazon or eBay. AI in real estate can also easily find the perfect property for a buyer and base those recommendations on many data points, by considering the preferences of similar buyers the AI has learned from. Computer vision technology common to AI can even help to extract color palettes from photos, floor styles, or the type of construction materials used.
Investors can also benefit tremendously from the predictive analysis derived by AI in real estate. It can help make the decision process easier to understand for investors seeking a competitive edge in the real estate market. AI can be used to predict which neighborhoods are up and coming and which are seeing a downturn. This can help investors make better-informed decisions on many levels. Decisions such as when to renovate a property or when to implement their exit strategy on their investments. Using the power of AI, property owners can more accurately derive optimal rental pricing strategies, based on many data points.
AI can help real estate investors not only calculate market rental valuations. It can also give them insight into the best locations for development. An example of this might be AI finding trends of increasing property values where near Starbucks locations. With AI, real estate investors can calculate the return on their investments. They can figure out the optimal renovating costs that could increase the rent or sale prices of their properties. The predictive analysis that AI brings to investors also can help them determine which properties would be good vacation rentals. This happens from the collection of data aggregated from troves of information. Data comes from platforms such as Airbnb, VRBO, and other niche vacation rental platforms.
The use of AI in real estate is a trend that is not going away soon. In-depth predictive analytics afforded by artificial intelligence has transformed the real estate market. And will continue to do so in the future. AI provides valuable predictive analytics to every aspect of real estate transactions. From calculating market rents, to finding the ideal buyers, to discovering lucrative investment properties, AI helps formulate better decision-making for everyone.
ProspectNow also enables better decision-making. We provide a reliable, affordable source of the real estate data you need to close more deals and make more money. ProspectNow is a vital tool for your business success in real estate.