Many industries are rapidly evolving with the use of new technologies, and real estate is no exception. This McKinsey article estimates that AI could help generate $110 to $180 billion or more in value for the real estate industry.
However, in order to see this value, the industry has to grow and change alongside this technology. AI, VR, AR—what do all these terms mean, and how will they shape the real estate industry as technology moves forward?
Artificial Intelligence (AI) in Real Estate
By this point, it’s almost impossible that you haven’t heard of artificial intelligence. Chances are that you’ve heard that AI is innovative, helpful, and that it presents endless opportunities for the future—but also that it raises ethical questions and is harmful to many industries.
The term “artificial intelligence” is very broad. What does AI look like in real estate, and how will it affect the industry going forward?
Artificial intelligence uses machine learning to perform tasks, recognize patterns, and understand complex concepts. AI learns and adapts itself based on new experiences, much like a person would. The difference is that AI can learn at lightning speed and has access to a wealth of information.
Within the AI umbrella is something called generative AI. As the name suggests, this is AI that generates new content and solutions.
- Gathering data: With generative AI, you can analyze market trends, comparables, and property values. Agents and buyers alike can use this information to make more informed decisions. You may have some of these tools before, such as Zillow’s “Zestimate” tool.
- Customer relationship management (CRM): For agents, AI can help manage communications from clients.
- Generate imagery: Generative AI can be used to generate or edit images. You may have already come across some “virtually staged” photos in real estate; these images were made by populating a photo of an empty room with virtual furniture that can be moved around in the space.
- Compile and scan information: When dealing with a large number of documents, it can be time consuming to sift through them looking for specific information. AI can help scan and even pull specific information using certain parameters.
- Chatbots: If you run a company, chatbots can help users with general inquiries on your website.
Virtual Reality (VR) in Real Estate
Virtual reality transports the user into a completely virtual space through the use of a virtual headset.
- Virtual reality tours: With virtual reality, viewing properties can be made easy. Instead of physically going to a showing, prospective buyers can pop on a VR headset and be transported inside a home in seconds. This could prove useful for those looking to relocate somewhere, as they won’t have to travel to view the home.
- Virtual reality design: If you’ve ever wondered what your home would look like with a different wall colour or new furniture, virtual reality can help. Repainting and reimagining spaces with different decor is all a couple clicks away, and can be seen with stunning accuracy in real time.
Augmented Reality (AR) in Real Estate
Augmented reality is also making strides in the world of real estate. It differs from virtual reality in that it augments the environment you are currently in. For example, adding digital elements to your surroundings via a cellphone camera.
- Augmented floor plans: View your floor plans in the real world with augmented reality. You can rotate, zoom, and experience a plan in more detail than with in 2D on a piece of paper.
- Augmented design: Much like VR, AR can be used to reimagine your home. Unlike VR, you only need a smartphone to utilize AR technology. If you’re furniture shopping and want to view something in your home in real time, hold up your phone and augmented reality can show you the rest!
Using Artificial Intelligence Effectively
Though AI will take over some job positions or tasks done in certain roles, when used effectively it will free up time for agents, brokers, and marketers to spend their time doing more strategic responsibilities. Those who use artificial intelligence as a way to enhance their work and adapt their strategies around AI as a tool will find more success than those who don’t.Things to Consider
Of course, there are many things to be cautious about and consider when using AI technology. For example, there may be laws and regulations preventing the use of AI in certain instances. Agents and brokers should be considerate of breaching local laws and regulations when using generative AI.When using data pulled from AI, it’s important to avoid dangers that can be caused by biased data. After all, AI learns from humans, and humans are naturally biased. It’s also imperative that clients consent to the use of certain generative AI and any personal data that’s collected is protected.
When AI has been used to generate imagery, say in virtual staging, it must be made apparent that what is being shown is AI generated. Transparency when using AI generated imagery in marketing is key.
This new technology is both exciting and important for industries everywhere, and real estate will be no exception. As AI technology continues to evolve, those in the real estate industry will have more access to even more powerful tools to enhance their business.
