Artificial intelligent (AI) has already transformed several sectors of our society, and the real estate market is no exception. It may even redefine how owners buy or sell their homes over the next few years as well as streamline each part of the process for brokers.
AI tools are evolving at lightning speed, so much so that they may completely alter every aspect of the real estate transaction experience.
Property Valuation
Platforms such as Zillow or Redfin already utilizes machine learning algorithms to generate appraisals based on recent sales, house characteristics and thousands of additional data points. However, errors still occur, and this service isn’t available in every country, let alone every region. In fact, Québec residents who download the app quickly realize how few, if any, local properties are listed.
In the future, this type of application shall certainly provide far more accurate property valuations as well as being employed worldwide. These algorithms will grow in sophistication, integrating factors like demographic shifts and local economic trends, allowing homeowners and brokers to obtain appraisals in real time.
Real Estate Marketing Customization
Real estate marketing may become ultra-personalized thanks to AI. Real estate brokers will have the ability to create fine-tuned marketing campaigns targeting specific buyers, based on their internet search patterns, neighbourhood preferences and budget. For example, a home might be automatically promoted to young families looking for a neighbourhood with good schools, or to retirees who want a quiet place to live. As a result, buyers browsing online for, let’s say, a downtown condo in Montréal might see ads for this type of property on their news feed.
Ultra Realistic Virtual Viewings
While virtual viewings are already a reality, they will offer an even more immersive experience in coming years. Visiting without having to drive around from one place to another may even become the norm, with the ability to see a large number of properties in a single day. Prospective buyers will get the opportunity to explore houses online in such detail that they’ll feel like they’re really there. Some experts believe that it may actually be possible to move furniture and open drawers. One of the advantages this technology should provide is reducing the uncertainty of purchasing a home abroad without having set foot in it!
Automated Transactions?
Experts are also trying to develop tools to simplify and automate the entire transaction process. By analyzing contracts, AI could go over legal documents in real time, anticipate potential errors and even fast-track sale closing procedures. Some foresee the possibility for homeowners to complete a sale directly through digital platforms, without lengthy negotiations or complex dealings with intermediaries.
More Ecological and Economical Homes
AI may likewise play a pivotal role in the development of more eco-friendly homes. It will be capable of suggesting improvements that reduce energy consumption, such as adding energy-efficient windows, optimizing heating and cooling systems, or using sustainable decor materials. By integrating these components, a property’s aesthetic appeal won’t be the only reason it stands out, so will its energy performance, an increasingly important consideration for buyers.
AI’s Limits: The Added Value of the Human Touch
Despite the impressive breath of possibilities AI has to offer, when it comes to real estate, there are just some things only humans can do:
Lack of Depth
AI lacks the know-how to establish an accurate picture of the seller’s reality. A broker wants to understand why their client is selling their property or looking for a new residence to guide them effectively. They typically pay close attention to their client’s needs.
An Incomplete First Impression
Ultra-realistic virtual viewings simply can’t offer potential buyers the true experience: one that will allow them to find out if they’re comfortable in the home, or to get a feel for the neighbourhood.
Potential Mistakes
While AI expertise isn’t necessary to use the technology, some people may find it difficult. Especially as computer glitches may bring the entire process to a halt.
Third-Party Management
Selling or buying a property includes dealing with several third parties, from managing the visit schedule to answering sensitive questions to conducting negotiations. A lot of human interaction—impossible with AI—is involved. Have you ever had to haggle with someone with a shady attitude? A broker is used to it!
Partnership
What else is artificial intelligence no substitute for? The client-broker relationship. When things get stressful (as they often do when selling or buying a home) having this professional by your side is essential!
There’s no doubt about it: real estate is going to be smarter, more streamlined and more customer focused. Real estate brokers shall have valuable tools at their fingertips to support them in their work, all to their clients’ advantage.