Artificial intelligence is impacting just about every industry at the moment. But while much of the talk centres around how AI will take our jobs, it’s also important to consider how it could impact whole industries for the better. In this article, we’re going to take a look at how AI could be used in the real estate world to transform the process of buying and selling property.
Smart Search
One way that AI is transforming the world is through computer-powered algorithms, the type that we are seeing used by popular AI chatbots like ChatGPT and Gemini. As these algorithms become more advanced, they’re able to assist us with more complex tasks.
The process of buying a property at the moment is very human-driven, whether that’s identifying a property ourselves or working with estate agents. AI could revolutionise this process by offering tailored suggestions based on our behaviour, preferences and budget.
How exactly this impacts estate agents remains to be seen, but it’s definitely something for estate agents to be aware of.
AI-Powered Property Valuation
AVMs have made the process of finding a property more efficient, providing people with instant access to data. But as technology evolves, these tech-based models are arguably not offering enough accuracy.
AI offers a solution to this in the form of AI-powered valuations that work similarly to traditional desktop valuations, but using more up-to-date data and more accurately analysing historical trends to offer more precise estimates.
Validate Property has already taken a step into this world by combining the speed of an online valuation with the experience of a RICS surveyor in the form of their Desktop+ Valuation service.
Predictive Analysis
It can currently feel overwhelming when buying a property, not least knowing when to time your entry in the market, and that applies to both buyers and sellers. With AI advancing at such an alarming rate, it could arm both buyers and sellers with more accurate predictions around market forecasts, as well as help investors spot underpriced real estate assets.
The result should mean that individuals avoid losing out on increases/decreases in average prices and mortgage rates. Experts will argue that a human advisor is always better placed to make predictions around these types of issues, so this topic remains up for debate.
Streamlining the Buying Process
We’ve already seen virtual tours improve the real estate industry, but AI has the potential to take this to the next level. With generative AI models capable of turning static images into interactive videos, allowing virtual tours to exist without any human involvement, once property photographs have been taken.
AI could also be used in the documentation process. It goes without saying that buying or selling a property involves huge amounts of paperwork, all of which needs checking. AI could speed up this process and remove the chance of human error, subsequently streamlining the process.
Final Thoughts
Like most industries, it remains to be seen how AI will transform the real estate world. From the perspective of buyers and sellers, it’s definitely worth keeping on top of the different ways in which AI is being used. For businesses in the real estate industry, it’s crucial that they are protecting themselves against AI-shaped threats that could eat into their profit margins.
