Artificial intelligence, which is predicted to grow to an $89.8 billion industry by 2025, is already having a profound effect on consumers—but it will also significantly impact real estate professionals. From chatbots that handle clients’ needs to smarter ad campaigns that produce high-quality leads, AI is changing the way agents work.
Here’s how the technology will impact the buying and selling process for agents and brokers.
Provide accurate property valuations.
Determining property value can be challenging. You must evaluate as many factors as possible to give a fair price. However, the assessment no longer has to be done manually.
Automated valuation models, or AVMs, use regression analysis to estimate the market value of a property accurately by looking at similar properties that recently sold in the market. You can leverage machine learning software to analyze vital information, such as changes in the local neighborhood, schools, public transportation, and other factors, to assess property values. This enables you to dig deeper beyond the previous sale price to provide a more precise property value.
AI software can also streamline the negotiation process by predicting where a price compromise is likely to happen. You can prevent business losses that may result from giving a property price that’s too low or too high. With AI, you can be assured that an initial offer is well within the market price and that you have the data to back it up.
Create better ad campaigns for lead generation.
AI is improving how ads target consumers so you can get in front of more people. Instead of spending time and resources to set up an ad campaign manually, you can let AI do the hard work for you.
From ad creation and targeting to custom video listings, AI is a powerful tool that can help increase lead generation. AI-based software can automatically generate suggested ad campaigns by detecting your new listings and upcoming open houses in the MLS. With every new lead, the system then notifies you via a text message and email. You’ll also be able to access detailed reporting that shows ad performance and specific insights about who the ad has reached. This helps you save time to focus on other meaningful business tasks.
Engage clients and increase lead conversions.
You aren’t available to speak to potential clients around the clock. However, chatbots are ready to interact 24/7 with online leads that come to you via your website. Sixty-nine percent of consumers prefer chatbots for quick communication with brands, according to The 2018 State of Chatbots Report.
Chatbots can prompt customers to ask questions and instantly respond to queries about a property, such as those related to square footage, lot size, number of bedrooms, and any other details. Using machine learning, you can discover more about a client’s home search and preferences and then respond to more complex questions over time. Chatbots can also make personalized offerings based on a specific user’s preferences.
While chatbots will not replace you entirely, they make it easier for you to qualify online leads and increase transactions. Many agents have managed to increase property closings by using chatbots and personal assistants.
Streamline data management.
You deal with massive amounts of data involving legal papers, appraisal reports, zoning regulations, and other crucial documents. Although documents have become digital, humans must still sift through all of the data. However, AI makes it possible to manage data faster and more thoroughly without the human eye.
AI-based tools can spot inaccuracies in data by continually analyzing it. These tools can send notifications to you in the event of any inconsistencies, such as empty MLS fields, missing signatures, legal mistakes, and invalid characters.
You can use AI-powered software to conduct demographic market research and financial and environmental analysis. Software that uses machine learning can recognize patterns in the data to generate actionable insights. For example, with enough relevant data, AI can predict when a particular type of property will increase in popularity.
Much of AI has yet to enter the real estate industry. However, it’s gaining traction quickly. Agents that are prepared to embrace AI-based technologies will take their business to new heights and remain competitive in a changing landscape.