There was a time Artificial Intelligence was limited to technology and large corporations only. Now, it is has proven to be a valuable asset in finance, e-commerce, medicine and a number of other industries. Real estate is not far behind as well. The impact of AI on real estate is set to increase. Some even say it’s going to be disruptive.

Rise of AI Investment in Real Estate

Currently, the market size of the real estate industry is $480 million and it will expand over the years. As AI investment is poured into the industry, several new innovations will release into the market.

Companies such as Skyline are investing in AI-powered real estate tools heavily. The innovative machine learning powered platform developed by the company taps a proprietary dataset of more than 130 sources. It can go back to almost the last 50 years. It can make real estate predictions within seconds. Other than Skyline, Jointer.io is also using AI and blockchain technology for powering its primary securities market for commercial property.

As more and more funds are poured into technologies powered by AI, it could change the entire structure of the real estate market.

Ways AI is Disrupting the Real Estate Industry

Finding Homes

The traditional way of looking for homes was visiting the property in person. Real estate agents used to struggle to find clients. Now, the Internet has made it easier to find homes as well as buyers.

In fact, the process of buying homes is now being taken to a new level. Buyers just have to go online and log into different real estate sites to find a house in their desired city.

Reduced Transaction Costs

If you have ever been involved in a real estate purchase, the cost of buying or selling is a real bummer. It can literally cost you thousands of dollars just to sell a house. The fee is no doubt ridiculous. Good news is Artificial Intelligence can reduce the fee along with improving the process of buying a home.

Most of the time, the fee associated with a real estate transaction comes from an agent. They usually charge 3% of the selling price of the home. Now, you can eliminate a real estate agent from your transaction. You can put the house on the market by yourself. This decision can save you thousands. At the same time, you will have more flexibility when it comes to listing your property.

Investment Made Easy

Many people are interested in building wealth by investing in real estate property. If you were a newbie, it was extremely difficult to get started. Now that virtual bookkeeping services are available, things have become more manageable. This service helps keep track of the monthly rents and other finances.

You will find a number of websites that can provide great resources when it comes to real estate investing. They have price information as well as rent estimating tools. An investor can model his home purchase and see if the property he is planning to buy is going to be profitable or not.

Taxes

Artificial Intelligence is helping the real estate industry through tax preparation. A number of individuals are already using automation for filing their tax returns. From a tax perspective, buying and selling a property is complicated. Fortunately, you don’t have to spend time in understanding tax implications. All you have to do is use tax software and let it handle all your taxes.

Automated Valuation

It’s always challenging to determine the value of a property. The appraisal techniques in use are often based on the previous sales price. This fails to take into account other factors such as infrastructure improvements, transportation, local neighborhood, etc. These factors also have an impact on the value of a property. AI-based software can significantly help determine the best possible price taking all these factors into account.

This is not just beneficial for the buyers, but the brokers, too. They don’t lose an opportunity by telling them a higher or too low price of the property.

Better Deals

An interesting tool that is improving the real estate market is the use of chatbots. Machine learning functionality is being used for analyzing information. Data from different sources is analyzed to estimate the value of the property. Chatbots can actually help you find better deals without involving an agent.

A real estate publication named Inman created a challenge called Broker vs. Bot. A real estate journalist was asked to play a buyer and choose 3 homes he liked from the property listing. 3 separate real estate brokers were asked to compete against the bot. When the buyer was asked which recommendation he preferred, it was the one presented by the bot.

Will AI Replace Professionals in the Real Estate?

This is a question raised in every industry where AI is invading. Everyone wants to know if technology will replace humans. Relax, technology will not be stealing the job of a broker. AI will simply take over repetitive tasks. It will also help professionals focus on complicated tasks and even generate new jobs in the industry.

The Future Outlook

AI in real estate is not as popular as it’s in healthcare and finance but it is emerging slowly. It will help the real estate business in functioning effectively and become profitable. It’s not just limited to helping people in buying, selling or renting properties.