AI in Real Estate : Current Landscape
Welcome to the world of AI. One of the biggest new technologies of the 21st century is artificial intelligence, the process by which computers are imbued with the ability to “think” like an intelligent being.
Artificial intelligence and real estate might not seem like a decent fit at first, but think about it. If a piece of AI software can beat some of the most intelligent human minds on the planet, it could pose a serious threat to the average realtor.
If you work in real estate, then, you need to be aware of AI even if it’s just as a potential threat. The good news is that AI is actually at its most effective when it’s working alongside humans instead of replacing them, and the most successful real estate companies are likely to be the ones which accept this and which embrace AI and use it to revolutionize the way they do business.
AI can increase the relevance of recommendations
Getting to know your clients will still require talented salespeople who are able to talk to them, to interpret their pain points and to find out exactly what they’re looking for. They’ll also need to be able to convert what they learn into data that an algorithm can understand.If an AI-based algorithm can help to surface the perfect properties for each different viewer, you’ll quickly become the go-to realtor in your area and beyond. It’s all about finding smart ways to help AI to help you to do what you’re already doing – but at a much more effective level.
AI can help you to better sell to people
Another of the advantages of AI is that it never sleeps. That means you can use AI-based bots to provide 24/7 coverage to customers who visit your website or your social networking profiles. They can “chat” with customers on your behalf and help you to make money even when you’re asleep, and the office is closed.
Long-term relationship building
People don’t just use a real estate company at one specific time in their life. Circumstances change and people need to sell their properties and move on or even decide to purchase second and third properties as investments or to rent them out. But despite that, realtors have historically focused on the here and now without thinking about the future. It seems like an inefficient use of time when there are sales to chase.
More AI can do
So it’s clear, then, that AI and the field of real estate are a match made in heaven, and we shouldn’t be surprised as they continue to grow closer and closer together in the months and years to come. A new company called “REX” is attempting to disrupt the real estate industry, and perhaps more importantly, displace the real estate agent. Or possibly even put them out of business for good.
The message is clear – real estate agents make large commissions and may not have your best interests in mind. Instead, REX argues that agents will do what is in their best interest to get paid and move on to the next buyer or seller. REX is a real estate brokerage. But a discount one that only charges 2%. Similar to the YHD which had tried this approach earlier. It is still not clear what the outcome would be as the previous attempt was not successful. The question is have the times changed and will there be traction this time based on data and AI.
SetSchedule is a real estate data analytics and marketing firm. It recently announced its launch of a service called SetValue, which the company describes as a “tool that is the first of its kind to combine data analytics and artificial intelligence and deliver accurate property valuation and real-time connection with qualified real estate professionals.”
SetValue represents the “artificial intelligence-powered data arm” of SetSchedule, and “compiles estimated values from at least six sources.” The tool factors in ancillary data such as school districts, tax records, crime rates and other neighborhood characteristics.
“SetValue aggregates data from a variety of sources, using a blend of public websites, data connections, direct engagement and proprietary algorithms that take into account things like market trends and consumer behavior,” said SetSchedule CEO Roy Dekel. “All of this information goes into the creation of the predictive analysis of home value.”
“We benefit as a company by creating a symbiotic ecosystem that services our customers and professionals, such as investors, agents and brokers, who utilize our software to connect,” Dekel said when asked how his company intends to make money from SetValue.
Finding a Home With the Help of AI
While the real estate industry has managed to stay mostly unaffected by recent tech disruptions, artificial intelligence tools are increasingly finding their way into the real estate business, bringing with them massive potential.
For real estate agents and marketers, AI can help streamline data from renters, buyers, property owners, and potential clients to boost their marketing efforts and increase sales.
To sell a home, REX computers disseminate an initial batch of ads based on a hypothesis about where and whom the likely buyers are.
Of the people who clicked on the ad, “the computer in real time, like right now, can figure out what those 500 people have in common,” Ryan said. “Let’s go find more people who look just like those 500 people who clicked on the ad.”
If someone clicks on an ad, the computer will tailor future ads for that individual based on what their behavior on the website demonstrated about their interests.
REX also identifies potential home buyers and sellers by gathering data from retailers and businesses that show changes in people’s purchasing behavior. It’s common practice for businesses to sell data about consumers’ purchases to third parties and advertisers, privacy experts say.
Tech startup First.io utilizes artificial intelligence to help real estate agents connect with prospective home sellers ahead of their competition, according to the company.
Real Estate Robots
Artificial intelligence within the real estate industry has largely manifested as predictive analytics, proprietary algorithms or chat bots that can vet and convert homebuyer and seller leads. Now, the industry is closer than ever to taking the next step in AI: real-life robots.
Juwai.com, a Chinese international real estate website, is partnering with Singou Technology of Macau to roll out a line of Mandarin-speaking robots called “Butler 1” that can be used by real estate agents and developers to assist in office interactions. The partnership will meld Singou’s AI engine and Juwai.com’s data analytics. Their exact role? That’s yet to be determined, but expectations are high.
“We are taking it one step at a time,” says Carrie Law, CEO of Juwai.com. “In the future, it’s easy to imagine that agents will have such powerful technical tools that they will seem like superheroes, but that day is still quite some time off.”
Currently, Juwai.com is focused on building out this project in the form of a pilot program, which will gather data for the AI engine with the goal of increasing the robots’ AI capacity and developing the product for mass release.
Some companies working in real estate field with the help of AI:
- Redfin: Redfin is Using Recommendation system and relevent ads.Redfin uses analytics graph to Know exactly when buyer interest is spiking.Redfin’s business model is based on sellers paying Redfin a small fee, in the 3.5% to 4% range.
- Zillow:Real estate market reports,Neighborhood Boundary Maps (GIS Data),Zestimate i.e Zillow determines an estimate (“Zestimate,” pronounced “ZEST-imate”) for a home based on a range of publicly available information, including public data and sales of comparable houses in a neighborhood. According to Zillow, the Zestimate is a starting point in determining a home’s value.
- Opendoor: Opendoor uses recommendation systems after analysing given Data and provide a best option according to the customers needs.
- Trulia: Trulia is a home and neighborhood site for buyers and renters to find homes and neighborhoods across the United States through recommendations, local insights, and map overlays that offer details on commute, reported crime, schools, and nearby businesses.
- Homesnap: At Homesnap you can Explore real-time data,Homesnap Pro Ads,Recommendation system according to desired location or city.
- Realtor.com: Realtor.com provides Local Mortgage Lenders tool,Refinance tool, recommendations according to locations and ads.
- Neighborhood scout: NeighborhoodScout is a website and online database of U.S. neighborhood analytics;NeighborhoodScout provides the most comprehensive database of hyper-local real estate data available today. The platform is owned and operated by Location, Inc., builders of location-based Big Data and intelligence for the Fortune 1000 and beyond.
- Ten-X: It’s the only real estate platform that allows buyers, sellers, and real estate professionals to search, list and transact properties completely online.
- AlphaFlow: AlphaFlow is the first and fastest-growing automated real estate investment service. AlphaFlow is starting to transform real estate investment and brokerage much like passive investment funds.
- Vts Real Estate: VTS is leading Leasing & Asset Management Platform for Commercial Real Estate.New Tool Gives VTS Clients Real-Time Commercial Real Estate Market Analytics.
- CrediFi: With data on over 5.0M properties, 2.8M CRE loans, 46B sq ft and $13T in financing, CrediFi’s mission is to bring information transparency to the Commercial Real Estate industry; an industry that historically relies on manual data gathering methods to compile, digest, and share crucial data for vital investment decisions.
- Reonomy: Reonomy is leveraging the power of data and technology to transform the world’s largest asset class – commercial real estate. By structuring the world of property, people and company data we’re able to deliver actionable insights to our customers.
- CompStak: Compstak data is used by institutional owners to compare properties, hedge funds to make investments, and provides meaningful data for brokers, investors, appraisers, asset managers, economists and more.
- Cape Analytics: Seamlessly integrate data into your existing workflow; populate data across multiple environments: underwriting systems, broker portals, insured portals.
- Setschedule: SetSchedule combines the latest innovation in data and artificial intelligence to gather information and turn it into qualified real estate leads delivered directly to real estate pros.
- REX: REX is on a mission to improve home buying and selling by using technology to make the process easier, more transparent and with lower fees. By using machine learning and AI, REX goes around the MLS to reach buyers directly using the latest ad-tech, while licensed agents deliver full service…saving buyers and sellers thousands in agent fees.
- Reali: Reali Buyers receive a cash back refund of the entire Buyer’s agent commission, typically 2.5-3%, minus a flat fee.Save thousands in seller agent commissions! Reali Sellers save on the standard 2-3% in seller’s agent fees. With Reali, you only pay a flat seller’s fee based on the listing price of your home.Basic idea is cash back for Buyers and zero commissions for Sellers.
- truss.co: truss.co helps small and medium businesses lease amazing space.Their do-it-yourself online platform makes it easy to quickly sift through everything on the market and find spaces that best suit your team and needs.You’ll also get matched with a dedicated truss broker who acts as your point person all the way to lease signing.
- Mynd.co: Mynd is building a company that delivers better service to residents and owners.Residents can make service requests, submit payment, and contact us easily via the Mynd App, their online portal or via phone.All owners have access to real-time data and easy-to-read reports.
- Zenplace: Zenplace uses experienced professionals, data-driven insights, and innovative technology to provide industry-leading leasing and property management services.Owners get up-to-date property information, tenant placement updates, rental income, maintenance and prompt communication.
- Roofstock:Earn passive income by purchasing rental homes with tenants from Roofstock.Use custom filters to tailor your search by list price, desired return, location and more.Review details and learn more about the property.Interactive tools for visualizing return and cost estimates.
- Ojo Labs is being backed by some of large mortgage and brokerage players to provide intelligent chatbots. The idea is to reduce the workload of the agents by trying to answer customer questions. The service is available 24 x 7 and can connect buyers to agents.