Artificial intelligence (AI) and virtual reality (VR) technologies have revolutionized the residential real estate market, bringing significant benefits to REALTORS®. These advanced technologies have transformed how properties are marketed, virtual tours are conducted, and the overall homebuying and selling process is streamlined.
Artificial intelligence and virtual reality have burst on the scene in recent years. AI can be used to analyze large amounts of data, such as property listings, sales data, and demographic information, to identify potential buyers and sellers. Meanwhile, VR can be used to create immersive 3D virtual tours of properties, allowing buyers to explore homes from anywhere in the world.
In today’s market, we are seeing AI being used in real estate in a number of ways, including the following:
- Predictive analytics: AI can be used to analyze data on consumer behavior, demographics, and preferences to identify potential buyers and sellers. AI can provide suggestions, or “predict”, who will be most likely to want to move within a specific geographic area. Companies such as SmartZip, Offrs, and nSkope have been using predictive analytics to identify potential leads that would be most likely to move in the coming months. According to their website, SmartZip predicted 72% of the listings in the past year. With this information, personalized marketing campaigns can be created that are more likely to reach the right people.
- Pricing: AI can be used to analyze historical sales data, local market trends, and property features to price homes more accurately. This can help REALTORS® avoid overpricing or underpricing properties when making recommendations to their clients.
- Due diligence: AI can be used to analyze property records, financial statements, and other documents to perform due diligence on potential investments. This could help investors make more informed decisions about where to invest their money.
When we look to how VR is being used in real estate, a few highlights include the following:
- Virtual tours: VR can be used to create immersive 3D virtual tours of properties. This allows buyers to explore homes from anywhere in the world without having to physically visit them. This can be especially helpful for buyers who are relocating or who are unable to travel to see properties in person.
- Staging: VR can be used to virtually stage properties. Using augmented reality (AR), which is a technology that superimposes a computer-generated image on a user's view of the real world, combined with VR, can help buyers visualize how a property would look with different furniture and décor. This can be especially helpful for buyers who are looking for a fixer-upper or who want to see how a property would look after it has been renovated.
AI and VR are still emerging technologies, but they have the potential to have a significant impact on the real estate industry. As these technologies continue to develop, they are likely to become even more integrated into the industry. REALTORS® who understand and embrace these technologies will be better positioned to provide greater value to their clients and stay competitive in the marketplace.