How is Artificial Intelligence in Real Estate Going to Look Like?

How is artificial intelligence in real estate going to look like? What we need to do is look at how it will change how we buy and sell homes in the real estate industry. Is it going to eliminate the use of a real estate professional or will it be done online? There are many questions, but we need to see how artificial intelligence will shape our industry for years to come. What does the future look like with AI, how quickly will it transform us, and what should I prepare for?

The real estate sector is about to face one of its biggest disrupters with artificial intelligence. This is not something that we should be scared of because these changes are going to happen, so it's better to embrace them and see how they can affect your business. Real estate companies and real estate agents need to focus their real estate business on machine learning. It might take a while before AI has the ability to completely eliminate realtors in this industry, but you can expect your role as an agent to drastically change within just the next few years.

Here is one example that I have been reading about with AI technology that this technology will be able to predict future sellers can be found. We know that the real estate industry is all about being able to predict what's going to happen, so this type of technology can take your business to a whole new level.

Suppose you are working with an investor who wants to buy properties in certain neighborhoods or cities. You would be able to find out which areas have a higher level of sellers and be able to target that area.

The future of the real estate industry is going to change with AI

The advantages of using AI as a real estate agent is going to eliminate your day to day challenges, but let's take a look at some of these changes:

AI is a Game Changer for Marketing

Artificial intelligence and real estate marketing are going to change how agents market their listings. There are some new types of marketing that will be able to target specific home buyers based on the data that is collected about them and their preferences, which can help you sell more homes faster than ever before. For example, you can create a targeted ad via social media that is more targeted to the buyer and provide information about different homes or properties that might be of interest. You will also have the ability to measure how effective your marketing efforts are so you know what's working and what isn't.

It will also measure the motivation of the potential buyer or seller is. This will be a great way to maximize your advertising efforts and never have wasted time on buyers who aren't interested in what you are offering. The real estate industry understands that there is a lot of marketing noise out there and to stand out from other agents you need to use artificial intelligence in real estate.

Lead Generation Zero's in on Potential Clients

In today's competitive real estate market, many agents still receive plenty of website visitors and potential leads who aren't serious. But instead of having to sift through all their lead generation prospects one by one in order to identify those with the most potential for becoming a seller soon - AI can now do it automatically! Through algorithms programmed to understand which are likely sellers, you can get a list of potential prospects who have already expressed interest in selling their properties. With the click of a button, agents will be able to easily connect with these users and set up sales meetings that much faster!

Home Evaluations with AI is our New Calculator

The challenge with real estate agents in the time consuming of doing property values for homes. With artificial intelligence, it can do a home evaluation for your clients in just minutes and then it will be able to recommend the valuation of that home.

We will also start to see innovative and disruptive real estate websites that will push out the real estate agent doing this and direct potential clients to the website. This will push agents further away from being able to have a direct connection with their clients.

In the next few years, we will start seeing more and more how AI is going to change real estate for us as an agent or brokers. What you need to do now is prepare yourself for these changes, stay up-to-date on education about AI technologies in our industry

Transactional Process will become Simplified

Artificial intelligence is going to take away the heavy lifting of putting the offer together. The AI will be able to create the real estate transaction and put the clauses/conditions in the offer.

It will be able to tell you the best clauses for that particular offer. To give another example, AI can review contracts and determine whether or not it's a good deal in just minutes! Or even review dozens of offers and categorize them to your client's wants whether its price, conditions, etc. So agents no longer need to spend hours analyzing thousands of different contract lines and instead, they're empowered with more time to focus on closing deals.

The negotiation Process will be Redefined

It will even coach you on the negotiation process. It'll even listen in to the conversation, review text messages, read emails from the other agent and generate responses for you to negotiate for the best interests of your client. It'll be able to recommend different negotiation strategies based on market conditions too.

What's even more powerful, it'll coach you on what to say and what not to say during the negotiation process. This will make you look like a seasoned veteran in front of your client, so you can close the deal with ease.

Working with Buyers will Change BIG TIME!

The biggest challenge in the real estate business is working with buyers with such low real estate inventory levels. They are frustrated with the lack of inventory and so many buyers jumping into bidding wars and pushing so many buyers out.

AI can recommend what type of property they are looking for, how much to offer and when/where to buy these properties. It'll be able to build a real estate guide for your buyer's risk tolerance level (low, medium, or high). It'll be able to recommend the different properties that they can buy based on their risk tolerance.

When an agent uses AI it will help buyers get into property faster and close better deals quicker! You won't need to spend months looking at homes with no guarantees of getting your client's dream home, AI will find the right home match for you in days or even hours.

Quickly Approving Mortgages via Blockchain Technology

As we move closer to blockchain technology within our banking sectors this will allow more transparency and up-to-the-minute eligibility amounts for mortgages when dealing with clients.

This will help agents close deals faster and get more properties on the market. The mortgage process is already a stressful one for many buyers. With AI, it'll be able to detect if someone qualifies or not within seconds of filling out their basic information! This means in the future that the clause for financing will not need. I did write on a previous blog about blockchain and how it is going to change the process.

AI, Real Estate Transactions and Blockchain will be Integrated

In the next decade, the real estate sector will see the amalgamation of AI, real estate transactions, and blockchain comes together to make it more secure and make the transaction faster. In an article I wrote back in 2016 I showed the potential of using blockchain in real estate technology.

Once bank accounts, mortgages, the land registry office, MLS data, and real estate transactions end up on one blockchain system and by the time the confirmation of acceptance is accepted within seconds 3 things will happen in the transaction:

1. The mortgage will move from pre-approved before the offer to approved once the confirmation is accepted, rejected, or sent for review.

2. The deposits will be automatically transferred into the trust account of the listing brokerage.

3. The confirmation that the sellers are the title owners of the property.

4. A review of the Title Search of the property to see if there are any outstanding issues with the property.

What was listed above is only the tip of the iceberg because as natural language processing (NLP) gets better the sky is not the limit AI and machine learning.

Is AI already here in Real Estate?

The answer is YES! REX real estate is already using an AI tool that helps their sellers find bidders for their homes but not through the traditional way of putting it on multiple MLS platforms.

Instead, computers were crunching over a hundred thousand data points in order to identify thousands of likely buyers and target them with ads on websites and social media.

The technology behind AI has been around for decades, but it's only recently that real estate businesses are starting to shift their practice over towards using these more advanced services instead of hiring someone human in order to sell properties on behalf of clients who may not want or need an agent involved at all times during negotiations and closing paperwork.

REMEMBER: Consumer Experience is Paramount for Longevity!

As powerful as artificial intelligence is to the real estate world. We can't forget about the customer service experience that your clients have with you. They are looking for an agent that can provide them with a personalized experience, wants to be their confidence and help guide them through this important decision with their biggest investment.

If you want to up your game, you need to get feedback from your client's experience. So many real estate agents and brokerage are afraid to get feedback. Feedback will help you improve your service and give you an idea of what their needs are.

So many more advanced brokerages are able to find out if their clients were satisfied with the process or not for each offer. They receive feedback from clients for every failed or accepted offer. This provides feedback in real-time, so agents can see if there is an issue with their offer or not.

Also where there is room for improvement on providing a better experience. If clients were dissatisfied, it'll identify why so that

AI cannot replace your client's needs or expectations of doing business together! Real estate agents and real estate brokers need to know that the consumer experience and artificial technology work hand in hand. AI just give the upper hand to real estate agents that use it.

Conclusion:

Remember, for over 1000's of years we bought our homes by seeing them. Today, we buy a Tesla online without even seeing it. For the past five years, clients are now buying homes online via real estate websites which is very new to everyone. In the future, we will be buying homes from our living room without needing to step foot into a showroom. This is just the beginning of artificial intelligence and real estate agents should embrace it as part of their strategy today!

I will have a big impact conclusion, AI is going to change the way we work as a real estate professional. It's going to be able to simplify our jobs and take away some of those tedious tasks that just waste time from clients and agents alike.

AI is going to change real estate, but what you should know now is how this AI technology will impact your business.