Real estate is following the financial market in adopting artificial intelligence (AI). While AI affects stocks and bonds, challenging individual and institutional investors, agents and homebuyers will be able to benefit in the real estate market.
CNBC reported on the 17th (local time) that an algorithm that analyzes millions of documents in seconds, including property values, warranty levels, home improvements, and even homeowners’ personal information, is gaining traction in the real estate market.
While offline businesses, like large discount stores to clothing chains to department stores, kept knelting before online ones, the real estate market is quickly being absorbed by the AI-driven online market.
Artificial intelligence offers real estate brokers the opportunity to be more productive by eliminating tedious tasks like visiting house after house to close a sale.
A real estate agent’s business relied on “fishing management” because of their close relationship with homeowners, but with the help of artificial intelligence, it has become increasingly important to provide personalized services.
With the help of artificial intelligence, software companies such as Compass, Jillo, and Loan Snap have transformed the real estate mortgage (mortgage loan) market by offering individualized services that are significantly improved over what clients had been able to get before.
Data on real estate is open to the public for the most part – Registration records, purchase prices, mortgage liens, and almost everything else can be found on the public record.
There are many local government offices that do not have the resources to collect, analyze, and file such a large amount of data and keep each piece of data separately. Artificial intelligence, however, has solved this dilemma with one stroke.
Using computer algorithms, millions of files can now be analyzed in seconds, including property valuations and personal information.
San Francisco-based Lone Snap uses artificial intelligence to accelerate the mortgage process, from finding the right type of loan for a buyer to finding the right investor.
Carl Jacob, CEO of Lone Snap, said that after entering real estate buyer’s financial details, the algorithm “gathers all the information and predicts the future, considering countless options.”
“It covers a lot of loan repayment methods, loan options, etc.,” Jacob said.
According to Compass’ chief technology officer (CTO) and real estate agent, Joseph Sirosh, brokers looking for new listings have now found a new world using artificial intelligence.
“Brokers used to visit many homes one by one and ask whether they were willing to sell, but now AI helps them.”
By focusing on homes with potential, they make contact with them rather than going door-to-door, reducing the broker’s workload.
In addition, the AI provides data such as when the house was last sold, how long the current owner has lived there, and the market price of houses nearby.
Real estate agents could save a great deal of time and energy if AI was used to analyze large amounts of data in an instant, according to Sirosh.