Since the development of artificial intelligence (AI), including large language models like ChatGPT, every sector in the global economy has been rocked by its transformative power. The real estate industry is no exception, as AI is facilitating the marketing, sale and maintenance of properties while revolutionizing the decision-making process.
In this article, we explore the remarkable improvements AI has introduced to the world of real estate and dive into how buyers and sellers can benefit from these cutting-edge tools.
1. AI tools help real estate sales teams
As forecasted by Fannie Mae, home sales are likely to remain anemic in the near future, regardless of whether the Fed can stave off a mild recession. In this uncertain economic climate, even small advancements in evaluating properties can provide real estate professionals with an edge over their competitors.
The brilliance of large language models like ChatGPT is that they can serve as a one-stop shop for evaluating properties while decreasing a company’s overhead. What used to take a team of real estate experts now takes one individual trained on how to use these algorithms, as evidenced in Des Moines, where the city is using AI to assess the condition of homes, thereby saving hundreds of hours in staff time.
Jeffrey Maganis, co-founder of Crowdcreate, a tech-focused marketing agency awarded “best growth agency” by Forbes, elaborated on this topic, “It’s more necessary than ever for people to start upskilling their sales performance using AI. The top consulting firms around the world are recommending both Fortune 1000 companies and small-to-medium businesses to start training their employees on the use of AI tools.”
Maganis is currently working with the team behind Ryan Serhant, real estate broker, author, and star of Bravo’s television series Million Dollar Listing New York, on training their team using a new platform, AI Unlock, which provides real estate clients with ChatGPT prompt engineering training to improve workflows and 10x their output. As Maganis explained, AI tools can research, rewrite, and craft emails, reducing writing time “by up to 70%” while also automating the need for constant follow-ups.
2. Virtual and augmented reality streamline property tours
AI technologies are not only maximizing productivity on the research, analysis, and marketing fronts but also reinventing the concept of property tours. What used to take both buyers and sellers countless hours with in-person visits can now be replaced by AI-assisted virtual reality (VR) and augmented reality (AR) experiences.
This saves sellers the hassle of commuting to and from properties only to meet with buyers who could easily have ruled out a property after a virtual tour. VR and AR tours enable buyers to accurately assess a property’s dimensions, layout, and design from the comfort of their living rooms.
In the most competitive markets, buyers don’t always have the luxury of seeing a property before needing to make an offer, so virtual tours give sellers an edge over those who fail to offer them. That’s why these AI-assisted tours are significant time-savers, because they restrict the pool of buyers that sellers should meet in person to those that are seriously interested in a given property.
3. AI tools automate property management
AI tools reduce operation costs for landlords and property owners by automating routine tasks, such as rent collection, tenant screening, maintenance requests, and lease management. AI writing tools, such as ChatGPT, optimize communication with tenants by helping landlords write properly worded notices, or in a matter of seconds translate such notices for tenants who might not speak the language.
AI algorithms can also predict maintenance issues and identify patterns in tenant behavior, helping landlords discover potential problems before they arise.
4. Virtual assistants improve communication time
Chatbots and virtual assistants are growing more sophisticated, becoming capable of fielding inquiries and even carrying out monetary transactions. For sellers, these AI tools can also schedule property viewings and offer 24/7 availability to prospective buyers. By allowing them to delegate routine requests for information, virtual assistants give real estate agents the freedom to step away from their phones knowing that potential clients will still be able to get the information they require.
Unlike real estate agents who might have a jam-packed schedule, virtual assistants are available to immediately answer buyer questions, and they can even troubleshoot these on their own, taking the conversation far enough for a human agent to step in at the last minute only if and when needed.
5. AI tools help with compliance and fraud prevention
The real estate industry is fraught with complex regulations, and rightfully so, given the number of fraudulent activities taking place on a regular basis. For example, the U.S. government recently enacted a new ruling to prevent anonymous luxury home purchases, as these can be made by criminals to shelter financial gains.
That’s why the advent of AI tools is pivotal, because these tools can identify potential cases of money laundering, non-compliance with legal requirements, and fraudulent transactions. AI tools can also assist in bringing properties up to compliance, safeguarding the interests of property owners and potential investors.
The importance of embracing AI tools
AI tools are revolutionizing the world of real estate, reducing simple but resource-intensive tasks so that real estate professionals can deal with more complex issues and focus on the kind of personalized service that artificial intelligence cannot yet provide.
As buyers continue to grow familiar with and adopt these tools, AI will continue to transform the real estate market. Real estate firms should embrace these machine learning advancements to avoid getting left behind by their tech-savvy competitors.