What Does AI Mean for The Real Estate Industry? Find Out Here.
AI is making waves in all industries, and the real estate industry is no exception – it is here to stay. Here are the ways in which AI will transform how we do business and how it will affect you.
Key changes
AI has been around for a few years, and its impact is not only being felt but is now becoming more visible. Some of the changes we are already seeing include:
· AI-generated property listings: Many of the property descriptions you now see being advertised online are generated by AI tools. However, these descriptions may sometimes use generic euphemisms that don’t accurately reflect the property’s condition.
· Predictive analytics: Property Investors can now use AI to analyse historical and real-time data to forecast market trends, property values, and up-and-coming suburbs.
· Automated transactions: transactions are faster and more efficient due to AI streamlined processes such as property valuation, contract management and the settlement process
AI affects everyone involved in the industry in many ways, for example:
· Buyers—AI search tools provide personalised property recommendations based on preferences, budget, and location. Predictive analytics also helps buyers make informed decisions by understanding market trends. This can be seen more commonly on the two biggest real estate websites, Realestate.com.au and Domain, which provide potential buyers with analytics on market trends.
· Sellers—AI optimised advertisements and pricing strategies help sellers get the best price for their properties and can even predict the best time to sell to make the most of the market conditions.
· Renters—AI tools can conduct virtual tours, automate lease applications and assist with matching renters to their ideal property.
· Landlords—AI tools can automate rental collection, predict maintenance needs and screen potential tenants. It can also analyse market trends regarding the best areas to buy to increase profitability.
AI has limitations
While AI can streamline and enhance the selling and buying experience for sellers, landlords, buyers and real estate professionals, technology's downside is mainly the lack of “human touch” or the human element.
Buying and selling real estate often involves high emotions; after all, we are dealing with a fundamental human right – a roof over our heads. Naturally, buying, selling, and the decision to invest or rent involve a lot of emotions – and money! – and these are things that AI has yet to master.
Human expertise, sensitivity, and empathy are still needed to assist you in making the right decisions about your property and what type of property to buy and rent. Purchasing a property is a substantial financial commitment and can be heavily regulated in Australia. Human expertise is essential to navigate these complex transactions. AI has also been found to “hallucinate” factual information, so in a legal landscape like Australia’s real estate industry, you can’t afford to get the regulations wrong.
This is where a good real estate agent comes in. A professional real estate agent can:
· Market your property to the right audience because they understand your property’s true value.
· Negotiate the price and terms of the sale to prospective buyers and guide you through the whole process – no generic predictive analytic tools that only give you data, and not expertise tailored to your needs.
· Help you find the right property based on their deep market knowledge and connections with their network.
· Screen potential tenants for you and find the right tenant for your property type.
· Provide the right financial advice on owning a property, and help you navigate the confusing legal landscape.
· Facilitate a smooth tenancy and handle all communications between tenants and landlords, providing a human element to transactions and mediating when situations arise.
At RPN Global Sales, we have more than twenty years of experience in:
· helping sellers get the best price for their property,
· helping buyers find the best property for their needs,
· helping landlords manage their property, navigate the legal landscape and get the most out of their investment, and
· assisting investors in making an informed property purchase.
Contact us and let’s talk about how we can help you.
