From virtual home walk-throughs that shorten the buying process to the ability to predict your home’s value from your smartphone, AI is becoming increasingly more entwined with real estate. But does that mean real estate agents need to worry about artificial intelligence taking their jobs?
The short answer: no.
In fact, according to a recent article from CNBC, the advancement of AI in real estate may actually be a “game changer” for real estate agents, too — which is likely to lead to higher client satisfaction.
Here’s why:
Artificial Intelligence in Real Estate Speeds Up the Document Search
Until very recently, finding real estate data like land records, title documents, purchase price, and mortgage liens meant spending hours pouring through documents at local courthouses and offices. The process could take weeks or even months, and was highly subject to human error.
Now?
Computer algorithms are able to search millions of documents with the push of a button — effectively completing those weeks or months of tedious work in just a few seconds. The result: less waiting time for the client and a higher level of accuracy. In other words, it’s a win-win.
AI in Real Estate Can Help Find You Find Homes That Are Most Likely to Sell In the Next 12 Months
After a year of ultra-low inventory, it should be music to any real estate agent’s ears to know that door-knocking isn’t the only way to find out if a home is about to go up for sale.
In CNBC’s article, chief technology officer Joseph Sirosh of Compass commented, “The traditional agent would go knock on the doors of a lot of homes. Now AI helps you find the homes that are most likely to sell in the next 12 months, and it does so by triangulating all the data associated with the home, like when the home last sold, how long the owner has occupied the home, [and] what rate the home sells at in that particular area.”
He also adds that this gives agents a 94% higher chance of winning a potential listing they target with AI than not, and allows them to price the home more accurately.
Artificial Intelligence Can Quickly Help Borrowers Find the Perfect Loan
With the help of AI, buyers can easily find the perfect loan type for their financial situation, and even find the right investor for the loan. In CNBC’s article, Karl Jacob, CEO of LoanSnap, says the system takes all of the borrower’s financial information and forecasts it to look at “thousands and thousands and thousands of options.”
While we’re still a ways away from AI completely revamping the mortgage industry, the ability to use it during some steps of the data collection stage can seriously speed up the process for borrowers who are eager to get approved for a home loan.
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