How artificial intelligence can accelerate the growth of your real estate business
Artificial intelligence (AI) is easily one of the most anticipated technologies of the future. Understanding the impact that technology will have on your business will not only allow you to prepare for any negative impact, but will also allow you to adapt your business to assimilate technology to optimize your business.
Despite being one of the oldest industries, the real estate sector is one that has gradually adapted to emerging technologies. Although it may seem that artificial intelligence is still far from being implemented in the industry, it has been used in the real estate sector since 2018.
The first real estate transaction assisted by AI
The first AI transaction took place in Philadelphia, where two buildings were purchased for $ 26 million based on a “coming soon” algorithm. This algorithm was used to analyze large amounts of data that included potential economic value, KPIs, property characteristics and risk factors. The algorithm referred to all of these factors as the basis for determining whether a property had profit potential.
The algorithm was used to make another purchase in 2020 with promising results.
Anything that can more or less guarantee high profit margins is something that decision-makers will embrace in their business. Even when that alone is a compelling reason to incorporate AI into your real estate business, there are plenty of other benefits that make AI a great addition to your toolkit.
Improved lead generation and target marketing
AI-powered apps, chatbots, and smartphones are all powerful tools for improving lead generation and content marketing by determining which people are most likely to convert to sales. It also allows companies to focus their efforts on the marketing strategy that gives the best results. AI-driven chatbots also allow businesses to answer FAQs on demand. It also allows them to automatically deliver content to their potential customers.
Prognosis of the market value of the property
Since artificial intelligence is capable of analyzing large amounts of data, it can also be used to make accurate predictions about the future of a property. market value by referencing current market data, neighborhood characteristics and property attributes.
This data can then be used to identify properties that will appreciate high value properties in the future. This allows real estate investors to acquire properties before they rise in value, thereby maximizing profit margins in a way that no human data analyst can predict.
In-depth property analysis
Before selling a property, it is important to provide customers with accurate information that will allow them to determine if the property you are selling is what they are looking for.
Artificial intelligence will allow businesses to go beyond basic information and allow them to include information on external factors that affect the quality of life of building residents. Here are some examples of these factors:
– Number of hours of sunshine per month
– Quality of local transport
– Quality of local schools
– Parking availability
– Noise levels
This not only makes your business a business that makes sure your customers get the property they need, but also dramatically improves the customer experience.
Custom property recommendations
Another potential benefit of using artificial intelligence in a real estate business is that it allows businesses that own multiple properties to recommend properties that customers are most likely to purchase based on customer preferences. This not only means that you greatly increase the chances of making a sale, but it also contributes to customer satisfaction.
This is achievable by leveraging the ability of artificial intelligence to bring together and process large amounts of customer data to determine which properties specific customers are most likely to purchase. Customer data such as purchase history, properties viewed, and search filters used are just some of the most basic data that can be used as customer preference basis and to determine the best approach to a client’s needs.
It can also help you get in touch with companies like Nexus Buyers, to allow you to sell your goods much faster.
Transparent property management
Property management is a tedious task, especially when it comes to multiple properties. The amount of data that property managers have to track will only increase as the business acquires more and more properties.
The use of artificial intelligence will help property managers track maintenance requests and rental requests. This data will help managers identify the most common maintenance issues and when they occur, as well as tenant characteristics that can help determine if a tenant is ideal or risky.
This data can also allow property managers to automate tasks. For example, when a maintenance request is received, the system can automatically contact the maintenance personnel to rectify the problem, and it can also record the request and organize the data accordingly so that reporting is much easier to do.
These are just the most basic applications of artificial intelligence in the real estate industry. As technology evolves, more applications for this will be discovered. If you haven’t planned to incorporate artificial intelligence into your real estate business, you might want to consider doing so in the near future.
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