5 Ways AI Is About to Change the Real Estate Industry

These are some of the biggest AI disruptions we can look forward to in the real estate industry.

The real estate industry has enjoyed some of the benefits modern technology has afforded us. For example, most real estate agents now take advantage of online listings for homes (especially on sites like Realtor, Zillow, and Trulia), and may even have custom-built private showcases of homes online that fit their client profiles.

But as you can imagine, real estate professionals are eager to see the next wave of advanced technology develop to help them and their clients sell better homes. Artificial intelligence (AI) software is already starting to emerge to boost profitability and efficiency in the industry, and it’s only going to accelerate from here.

Changes to Watch For

These are some of the biggest AI disruptions we can look forward to in the near future:

1. Better market timing.

Most of the advice for timing your home sale, while practical, is also general and based on averages. For example, according to Green Residential, homes sold in spring sell about a month faster and for one percent more than homes in other months. With AI, real estate agents will be able to process much more specific, detailed data about the trends of home sales, down to individual areas and neighborhoods, as well as specific features of properties. This will help not only with the timing process, but will allow agents to calculate and set more effective prices that accomplish their respective homeowners’ goals.

2. Personalized listing showcases.

Every prospective homeowner looks for different things. They’ll have different priorities, with “must have” features, “nice to have” features and other requirements. Some will be incredibly picky, while others will just want the best possible deal. Historically, real estate agent have had to use this information to manually select handfuls of homes to showcase (either digitally or in person). Most search engines have attempted to digitize the process, but are limited to only a few fields. With AI, agents will be able to intuitively and quickly assemble complete suites of home offerings that fulfill all their clients’ criteria.

3. Automated communication.

Communication is one of the biggest barriers for real estate agents to overcome. You need to build a bond with your clients, and communicate with them both proactively and responsively, addressing their questions and concerns as quickly as possible while maintaining the rest of your schedule. AI systems could feasibly automate much of this process, giving clients alerts when prices have changed, when offers have been accepted, and other notifications.

4. Digitizing and automating the sales process.

According to the Balance, it can take between 30 and 45 days to close on a home. The final sales and closing process is long and often complicated, and historically, it’s involved signing lots of documents. With AI in place, real estate agents can digitize and automate much of this process. After scanning various documents, AI would be able to highlight the important components, explain them to prospective homeowners, and collect signatures to complete the process. They may even be able to expedite the filing process, getting homeowners in their new houses even faster.

5. Validating and enriching lead data.

Finally, real estate agents need to process and filter leads like any other salespeople. AI would allow them to go through this process more efficiently. After analyzing historical lead data and gathering more information on current prospects, AI lead management and CRM software could feasibly validate client information and hand-pick the best clients to pursue. This could make agents more efficient, thorough, and ultimately, more profitable.

The Timeline

When can we expect to see these AI trends develop? In some ways, they’re already here. Lead and customer management platforms like Conversica, Infer, and Growbots are already harnessing AI and predictive analytics to improve lead pools and help salespeople better understand their performance and target demographics. The pace of technological development is as fast as it’s ever been, and as new competitors emerge to improve the real estate industry, that pace is only going to escalate further. We estimate within the next five years, the majority of real estate agents in the country will be using at least some AI tools to improve their customer service, profitability, or overall capabilities.

More Stories By Larry Alton

Larry Alton is an independent business consultant specializing in social media trends, business, and entrepreneurship. Follow him on Twitter and LinkedIn.

Latest Stories
DevOps at Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to w...
DevOps is under attack because developers don’t want to mess with infrastructure. They will happily own their code into production, but want to use platforms instead of raw automation. That’s changing the landscape that we understand as DevOps with both architecture concepts (CloudNative) and process redefinition (SRE). Rob Hirschfeld’s recent work in Kubernetes operations has led to the conclusion that containers and related platforms have changed the way we should be thinking about DevOps and...
Is advanced scheduling in Kubernetes achievable? Yes, however, how do you properly accommodate every real-life scenario that a Kubernetes user might encounter? How do you leverage advanced scheduling techniques to shape and describe each scenario in easy-to-use rules and configurations? In his session at @DevOpsSummit at 21st Cloud Expo, Oleg Chunikhin, CTO at Kublr, will answer these questions and demonstrate techniques for implementing advanced scheduling. For example, using spot instances ...
SYS-CON Events announced today that Taica will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Taica manufacturers Alpha-GEL brand silicone components and materials, which maintain outstanding performance over a wide temperature range -40C to +200C. For more information, visit http://www.taica.co.jp/english/.
When it comes to cloud computing, the ability to turn massive amounts of compute cores on and off on demand sounds attractive to IT staff, who need to manage peaks and valleys in user activity. With cloud bursting, the majority of the data can stay on premises while tapping into compute from public cloud providers, reducing risk and minimizing need to move large files. In his session at 18th Cloud Expo, Scott Jeschonek, Director of Product Management at Avere Systems, discussed the IT and busine...
SYS-CON Events announced today that SourceForge has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. SourceForge is the largest, most trusted destination for Open Source Software development, collaboration, discovery and download on the web serving over 32 million viewers, 150 million downloads and over 460,000 active development projects each and every month.
Enterprises have taken advantage of IoT to achieve important revenue and cost advantages. What is less apparent is how incumbent enterprises operating at scale have, following success with IoT, built analytic, operations management and software development capabilities – ranging from autonomous vehicles to manageable robotics installations. They have embraced these capabilities as if they were Silicon Valley startups. As a result, many firms employ new business models that place enormous impor...
SYS-CON Events announced today that TidalScale will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. TidalScale is the leading provider of Software-Defined Servers that bring flexibility to modern data centers by right-sizing servers on the fly to fit any data set or workload. TidalScale’s award-winning inverse hypervisor technology combines multiple commodity servers (including their ass...
As popularity of the smart home is growing and continues to go mainstream, technological factors play a greater role. The IoT protocol houses the interoperability battery consumption, security, and configuration of a smart home device, and it can be difficult for companies to choose the right kind for their product. For both DIY and professionally installed smart homes, developers need to consider each of these elements for their product to be successful in the market and current smart homes.
In his general session at 21st Cloud Expo, Greg Dumas, Calligo’s Vice President and G.M. of US operations, will go over the new Global Data Protection Regulation and how Calligo can help business stay compliant in digitally globalized world. Greg Dumas is Calligo's Vice President and G.M. of US operations. Calligo is an established service provider that provides an innovative platform for trusted cloud solutions. Calligo’s customers are typically most concerned about GDPR compliance, applicatio...
SYS-CON Events announced today that MIRAI Inc. will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MIRAI Inc. are IT consultants from the public sector whose mission is to solve social issues by technology and innovation and to create a meaningful future for people.
Companies are harnessing data in ways we once associated with science fiction. Analysts have access to a plethora of visualization and reporting tools, but considering the vast amount of data businesses collect and limitations of CPUs, end users are forced to design their structures and systems with limitations. Until now. As the cloud toolkit to analyze data has evolved, GPUs have stepped in to massively parallel SQL, visualization and machine learning.
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, will lead you through the exciting evolution of the cloud. He'll look at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering ...
As hybrid cloud becomes the de-facto standard mode of operation for most enterprises, new challenges arise on how to efficiently and economically share data across environments. In his session at 21st Cloud Expo, Dr. Allon Cohen, VP of Product at Elastifile, will explore new techniques and best practices that help enterprise IT benefit from the advantages of hybrid cloud environments by enabling data availability for both legacy enterprise and cloud-native mission critical applications. By rev...
SYS-CON Events announced today that NetApp has been named “Bronze Sponsor” of SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. NetApp is the data authority for hybrid cloud. NetApp provides a full range of hybrid cloud data services that simplify management of applications and data across cloud and on-premises environments to accelerate digital transformation. Together with their partners, NetApp emp...