How Is Artificial Intelligence Used in Real Estate?

It’s helping agents with lead generation

Most agents know they’re bound to receive plenty of website visitors and potential leads who aren’t serious. After all, at this point, it’s a common pastime to visit a site like Zillow (NASDAQ: Z) (NASDAQ: ZG) and dream of owning a multimillion-dollar property. However, instead of the agent having to sift through all their leads to identify those with the most potential of becoming a real buyer in the near future, deep learning allows artificial intelligence to be able to qualify leads accordingly.

It’s transforming the home search process

Ever since listings first became searchable online, technology has played a role in helping buyers streamline their home search. While nearly every home search tool allows real estate agents and prospective buyers to narrow a home search by a list of criteria like the number of bedrooms and bathrooms or location, often, this method still leaves everyone with too many options to choose from.

It’s streamlining transactions

On the back end of the transaction, artificial intelligence can also make it easier for the Realtor to run their real estate business. For instance, many customer relationship management (CRM) systems utilize machine learning for things like auto-fillable data and generating automatic reports.

It’s making property valuation easier

Additionally, one of the major features of AI that real estate agents are coming to rely on is its ability to “predict” the future. Namely, this comes in handy when trying to assess property values and rental values. In this instance, an AI application’s automated valuation model might gather data about public records, transportation options, area crime rate statistics, and school district ratings in order to generate an analysis of a particular property’s value.

It’s changing the way we approach lending

Lastly, machine learning has also had an impact on the mortgage industry. As any real estate agent or investor knows, the underwriting process involves pouring over any collected paperwork to determine whether to lend to the prospective borrower.

Gain a competitive edge

At the end of the day, however, having predictive analytics on your side won’t just help your wallet. It will also help give you an edge over the competition. Put simply, if an AI tool can help you get a truer sense of a property’s valuation, it can also help you determine what to offer.

The best AI tools for real estate investors

After reviewing more about how AI works and its benefits, the next step is to learn about some recommendations. With that in mind, we’ve curated a list of some of the best AI programs available to you as a real estate investor to give you a sense of which ones might be the best fit for you and your business

Skyline AI

For those in the commercial real estate industry, Skyline AI collects data points from a variety of sources and analyzes past transactions to help you get a sense of which neighborhoods are up-and-coming and which are heading for a potential downturn. By analyzing property owner behavior, this tool can also help commercial real estate investors find distressed properties, off-market deals, and opportunities for value creation.

Proportunity

Proportunity offers a similar service for those in the residential real estate industry. Operating in 50 markets, this tool gathers property value data, crime rates, transportation data, and school district ratings to fuel its automated valuation model and predict which properties and neighborhoods will give you the highest returns.

Enodo

Those in the multifamily market should turn to Enodo. Its machine learning capabilities can help you calculate market rents, find comparable properties, and identify lucrative investment opportunities. For those considering doing renovations, it can also help you estimate the future value of any added amenities.

Beyond Pricing

Meanwhile, those within the vacation rental industry may benefit from using Beyond Pricing. This tool compares data from a variety of sources, including Airbnb and VRBO, to help you find the best pricing for your vacation rental.

Lofty AI

Like Proportunity, Lofty AI claims to help you identify the best investment opportunities in 40-plus markets. This tool is geared toward out-of-state investors and uses deep learning as well as alternative data points to predict early signs of gentrification.