It’s everywhere you turn these days.
From marketing circles, to the customer support line when you call your bank, artificial intelligence has been making its way into every industry possible.
Including real estate.
But is it all just massive hype? Or is there a big great hope to the current AI trend?
In this guide, we’re going to break down exactly how it’s being used in the real estate industry, how you can use it, and where the limits of AI really are right now.
By the time you’re done reading, you’ll be able to see through the hype — and see the big great hope in AI.
How AI Is Changing The Industry
While real estate is typically one of the slowest industries to adopt new trends, AI is being embraced in the bigger picture to help make the industry more efficient.
For instance, AI is already being used and you may not actually see it in motion.
Large investment companies use AI to run predictive analysis on properties, run 3D modeling for virtual showings, use it to manage their properties and forecast potential issues, and even to issue mortgages.
Smaller real estate investment companies are using AI, too, probably without even realizing it.
Take a look at all those smart devices you’re plugging into properties as you rehab and flip them.
Those smart home devices are filled with artificial intelligence algorithms to help make your tenant’s or client’s day-to-day lives even easier and more efficient.
So while the real estate industry may typically be slow to change, AI is advancing quickly and, with it, more and more profitable opportunities are being uncovered.
Will AI Replace Real Estate Agents?
Since AI is changing the industry so quickly, one of the biggest concerns is whether or not it’s actually capable of replacing real estate agents.
If you fall into the marketing hype, you’re probably one of the agents who think their job is on the line.
As it stands right now, real estate is still a personal transaction industry requiring buyers to connect with sellers while having someone in between, translating the deal and getting it finalized.
That may not always be the case, though.
With chatbots, cloned voices, 3D avatars, and automatically generated home descriptions, there may come a day when agents aren’t needed.
For now, agents can rest assured that the technology just isn’t at the level required for the general public to trust AI with one of the biggest purchases of their lives.
AI In Real Estate – 5 Use Cases
While the technology is advancing, real estate agents CAN take full advantage of it to make their lives more efficient, more effective and (ultimately) more profitable.
To give you an example, AI can be used to ramp up the effectiveness and creativity in your marketing campaigns. You can use chatbots to help clients find their perfect home and qualify your leads.
You can also use AI to help predict market competition and property values as the markets shift. AI software can take current data and extrapolate it out to predict how the market will change.
AI is great at analysis, making analyzing an area one of the best uses of the technology. It can be used to assess potential natural disasters, crime rates, school stats, entertainment options, and more.
You can even use it to detect an area’s sunlight exposure and noise levels.
With access to all of this information, AI can be used to help personalize your client’s experience while working with you to ensure you’re giving them exactly what they’re looking for.
Finally, for property managers, AI can be utilized to manage property listings, track maintenance reports and requests, track rental applications, and more.
10 Must-Have AI Tools For Real Estate
As AI advances, more and more AI real estate tools are making their way to the forefront of our lives.
While “AI real estate” may be a massive buzzword at the moment, there are a few must-have tools you’ll want to at least be aware of if you take growing your business seriously.
Below are 11 must-have AI tools for real estate.
#1 – 3D Virtual Home Tours
For interior design, Zillow has released a 3D Home Tour app that makes it easy for you to showcase your properties in their best light — while your clients browse from the comfort of their own home.
The 3D Home tour app can use artificial intelligence to generate virtual home tours for your clients, helping you promote and sell your properties.
Commercial real estate investors are using the app to generate large amounts of virtual tours across their entire portfolio, quickly and cheaply.
If you’re interested in giving the app a try and seeing how far AI has come, click here to give Zillow’s 3D Home Tour app a test drive.
#2 – Virtual Staging Solutions
If you want to turn a higher profit from each flip you do, using a virtual staging solution like Virtual House Flip is a great way to hit your goals.
When it comes to helping buyers see the potential in your property, you would typically need to physically stage the home yourself.
With a virtual staging solution, though, you’re able to transform those vacant properties into a fully-furnished home, changing the style to suit your buyer’s wants and needs.
These assets can help you boost your sales and increase the value of the properties you’re selling without sinking 10’s of thousands of dollars into staging them.
#3 – Content Marketing Automation
Consistently turning out new creative ideas for your marketing campaigns can be a struggle sometimes.
Then you add in planning out the campaigns, your strategic approach, channels, and everything else that goes into developing a high-converting marketing plan, it can be overwhelming.
That’s where a service like Xara comes in.
Services like Xara can help automate your content marketing automation by letting you import your website and generating new creative ideas based on the copy and content already on your site.
You can also use the built-in text generator and repurposing feature to take existing content and tailor it to separate marketing channels and platforms, such as Facebook, Instagram, TikTok, and more.
#4 – Chatbots
AI-powered chatbots can help add a new level of interactivity to your marketing campaigns, making it easy to answer your prospect’s questions and warm them up to a conversation with you.
Tools like Tidio have helped real estate agents, brokers, and even investors grow their business and provide customer support without the added payroll costs.
AI chatbots can engage with prospects and potential buyers, answer the most common questions they’ll have, schedule property tours and even make personalized recommendations based on their interactions.
Chatbots are able to remember past interactions with your prospects, making it easier to follow up with leads with a more personal touch.
#5 – Predictive Analysis
Being able to predict what markets will do can be nearly impossible.
These tools can take a massive amount of data from your area and produce in-depth reports around market trends, historical sales and property features to determine how your house will perform and how you should price it in order to optimize your profit margins.
They keep you from having to sift through mountains of data yourself and get more accurate property valuations either before you purchase the investment property — or before you go to sell it.
#6 – Customer Relationship Management
Artificial intelligence can also help real estate companies establish stronger relationships with their customers and clients.
A good CRM, like REsimpli, can use complex algorithms to help make personalized property recommendations, help manage customer sentiment, and help you make intelligent customer interactions.
It can help you optimize your marketing campaigns, from timing to creative, keep prospects moving through your pipeline with automated followup campaigns, and help optimize your business operations.
If you aren’t already using a CRM, or you want one that’s advanced enough to help you grow your business using automations and artificial intelligence, REsimpli should be the foundation you build from.
#7 – Predictive Maintenance
If you manage and maintain multiple properties or you run a property management company, AI tools like Honeywell Forge can be incredibly invaluable.
It can help analyze data from smart sensors inside of your properties to alert you to issues before they become major problems — or before your tenants have a chance to report them to you.
This helps you ensure that your properties are staying in market-ready condition while minimizing unexpected expenses and repairs.
With tools like this, you can keep your tenants happy while improving your property’s performance by dealing with maintenance and upkeep issues instead of finding out the issues turned into major problems when it comes time to put a new tenant in place.
#8 – Lead Generation
Platforms like BoldLeads are taking AI and putting it to use in your lead generation campaigns.
They use evolving algorithms to help identify and then target potential prospects for your deals.
By analyzing a combination of demographics and online behaviors, these algorithms make finding the right prospects for your deals even easier.
You can also use these tools for real estate farming, which helps homeowners find the best real estate professionals in your area — using factors like success rates, local area knowledge, and accreditations.
That means you’ll want to focus some energy on becoming a known authority in your area so you’re able to capitalize on the AI you’re not actually using yourself.
#9 – Personal Assistant
When your business starts growing, you’re going to get too busy to stay ahead of everything — and stuff will start falling through the cracks.
Typically, that translates to you missing calls from prospects, forgetting to call prospects back, losing track of where deals are in your pipeline, and costing yourself big money as things pile up.
That’s where tools like Deal Machine’s Alma AI help out.
You can use these AI-driven personal assistants to help streamline tasks, arrange meetings, send reminders, amplify your cold email and direct mail campaigns, enhance customer interactions, provide insight into your business performance, and knock things off your to-do list.
#10 – Workflow & Management
For commercial real estate developers and investors, tools like IBM TRIRIGA are gaining steam by helping you intelligently manage your assets and build integrated workplaces.
These tools use a combination of AI algorithms and pre-fed data to help meet the needs of modern facilities, manage buildings, develop workplaces, and optimize facility operations.
With IBM TRIRIGA, you can schedule preventative maintenance, enhance energy management, improve business operations, streamline leasing and administration, and obtain real-time insights for space planning and service requests.
AI Shouldn’t Be Used Everywhere, Though…
While AI can be incredibly powerful, you don’t want to rely on it for everything in your business.
For instance, when it comes to building high-converting marketing campaigns, nothing beats sending out AI-generated direct mail postcards using personalized messaging and approaches.
And while AI can answer the phone for you, when a prospect calls you want to make sure they’re given the personal touch that you’ve built your business on.
AI-based call answering services just aren’t there yet, which is why we recommend using a service like CallPorter to answer your incoming calls, nurture your prospects, and ensure you’re able to get more potential deals to the kitchen table.
CallPorter can answer the phone for you so you’re able to speak with more highly-qualified prospects, work ON your business, and enjoy your life — while avoiding talking to the tire kickers & time wasters.