How Artificial Intelligence Will Transform Real Estate
The artificial intelligence (AI) revolution will transform the real estate industry, as well as all other industries. Whether you’re looking to buy or sell a home, AI will serve both to streamline and ease your efforts while offering greater accuracy.
Buyers of a fixer-upper, for example, will get estimates in seconds, complete with the reputation of the contractor, and the contact information. Further, you will be able to see the rooms of the home you are thinking of buying laid bare; then you can virtually change colors of walls, types of flooring, and furniture choices to see how it all holds together – all with prices and alternatives generated when AI knows what you have in mind. AI will, therefore, limit the stress of making mistakes which can be costly.
“REimagineHome” is an AI powered interior design tool that can help buyers reimagine what a home could look like when redesigned to your specifications (furnishings, colors, etc.).
We already use DocuSign or similar companies which offer e-signing legal documents. This technology has streamlined what was until recently a tedious, cumbersome process – this technology has helped us escape from ink signed documents and then overnighting them to the buyer/seller. Further, we can now send large sums of money by auto-filling our initials and signing on our smart phones. Yet all of this is AI at its infancy.
Negotiations, submitting an offer, waiting for a counter will soon be an AI endeavor. Technology is evolving that could eliminate financing delays. Currently, it generally takes 45 to 60 days to close on a home. In the near term that time span will likely be shortened substantially through AI.
Also, if you see an item on your screen for sale in a home which you like, you will soon be able to click on it and buy it.
For the exterior of homes, a company called “Hover” will allow you to reconfigure the outside look and offer costs and even alternatives.
What about when your search for a home begins? AI, using human-type language, can answer questions (written or verbal). AI will be able to estimate what a fair price is for a given home by researching the market, factoring in multiple data points, and give an answer within seconds.
But as in all technologies, old and new, there are risks/downsides. Scammers will seek to master and take advantage of AI tools. For example, a con man can deceive you into thinking he is somebody he is not. They might be able to mimic a voice you are familiar with. You may well still need to rely on old-tech and dial the phone number of the person you are doing business with – to be sure you are speaking to the right person.
With all this said, it will still be important to have a competent and experienced broker, adding the human touch to help you navigate the complex process of buying or selling a property. Your chosen broker will need fluency in AI tools to enhance his other abilities.
For those interested in AI and its impact on other aspects of the real estate industry, see entrepreneur.