AI enters the real estate landscape
It should come as no surprise to anyone who has bought or sold (or even dreamed of) a home in recent years that technology is playing an increasingly important role in the industry. From initial online research to contract and closing, technology touches every aspect of the real estate transaction. Some feared that this reliance on technology would supplant the need for real estate professionals, but the exact opposite is true: Home buyers and sellers are using the skills and advice of professionals. real estate at record levels. Instead of replacing real estate professionals, technology has enabled them to be more efficient and competent at their jobs and to serve clients at an even higher level.
Artificial intelligence, or AI, is an area that is receiving a lot of attention in the tech space. The explosive growth in computing power combined with innovation has spawned a new era in the technological revolution with the birth and proliferation of AI in almost every aspect of our lives. Real estate is no exception, with companies committing significant resources to implementing AI technology to improve both the productivity of the real estate professional and the overall client experience.
One of these innovative companies, Re / Max, has recently made huge commitments in the field of AI. Two strategic acquisitions over the past 18 months have positioned Re / Max and its global network of real estate professionals at the forefront of AI adoption and implementation by the real estate industry. The first acquisition was for a North Carolina-based tech company called First.Io which uses AI to identify clients within a Re / Max agent’s sphere of influence who are most likely to put their home. on sale over the next 12 months. A more recent acquisition is a local data intelligence company called Gadberry Group – a company with information on over 200 million properties in the United States. This combination of innovative technology combined with a wealth of data is already yielding impressive results.
Here’s an interesting statistic: Just over seven years ago, there were 4.5 million real estate leads created from internet searches. Compare that to last year when over 100 million real estate leads were generated, but only five to six million homes close in a typical year. Common sense dictates that a large portion of online prospects are not serious buyers in the market. This is where AI gives real estate professionals an advantage to declutter and sift through the data to determine which leads are most likely to result in active buyers and sellers.
The aforementioned First.Io app is a great example of AI at work. The app first aggregates data from an agent’s existing database, email contacts, and cell phone contacts, and then uses publicly available information to fill in the missing information in the database. data (updated property addresses, birthdays, etc.). Now the agent has a more complete database of contacts who are not complete strangers to the agent. Then the AI ââkicks in by analyzing those contacts against over 700 different data points that are publicly available. Information such as how much equity a person has in their home, how many years has they lived in the home, just had a child, or maybe children have gone at University. The proprietary algorithm created by First.Io then provides the agent with an organized list of potential sellers who are more likely than the rest of those in their database to list their home in the next 12 months. This is invaluable for an agent to identify who to market his expertise to help with the potential sale of the house.
Obviously, the benefits of AI have their limits, but it’s hard to argue that they don’t offer any benefits, whether in real estate or any other industry. It is a trend that will only grow and strengthen. Will the real estate industry adopt it? It’s already done.
Peter Crowley is the President of Re / Max Alliance Group.