Artificial Intelligence (AI) fully reaches the real estate sector as an enabler of the transformation of your business. Increased productivity, sales and improved service quality are effects associated with the introduction of artificial intelligence in companies and the real estate sector is no exception. The consulting firm AIS Group explains some of the keys to how Artificial Intelligence can help sell a flat.
According to Nausica Trias, general director of the AIS Group consultancy , “the real estate market cannot be oblivious to social and economic transformation. It is a sector with a high impact on the progress of the national economy and, therefore, it is important that it incorporates the advantages that technology and advanced methodologies can bring to your business”
There are five essential elements that AI brings to the real estate sector.
Automatic appraisal models
AI makes it possible to develop AVM ( Automated Valuation Models ) models capable of performing remote appraisals for entire portfolios of real estate. This entails a considerable reduction in costs by not having to carry out a face-to-face appraisal until the moment of sale, but at the same time it allows for an appraisal for the entire portfolio.
These models are adapted to the information available on the property to be valued, from a simple postal address to its detailed characteristics. The objective of these techniques is not to replace the expert, but to complement him by saving him, for example, the simplest decisions.
Conservation status from image processing
AVM models are highly efficient, although they do not take into account some factors that influence the exact appraisal of homes. Information that is obtained thanks to AI techniques associated with image processing, both to identify rooms from photos of the home, and to determine its state of conservation or its qualities. Again, the advantage is being able to carry out this process for the entire portfolio of a real estate agency automatically and recurringly. Once this information is captured, the new data can be incorporated into the automatic valuation models to obtain an appraisal that is more adjusted to the reality of each property.
Price Trend Prediction
AI is a good ally to discern the evolution of the prices of both homes, commercial premises or land according to different macroeconomic scenarios. The interest of artificial intelligence techniques versus other more traditional methodologies is that AI has greater predictive power, so the results are much more precise.
Calculation of the optimal rental or sale price
With artificial intelligence it is possible to calculate the optimal price at which to sell or rent each property to obtain that desired minimum return. Similarly, you can focus on the price-time relationship to make decisions regarding the sale . This means answering questions such as how much time is saved on the sale if the price is lowered or: if the market release of a given property is postponed for six months, how much will it appreciate in value?
If you want to sell your California rental with tenants still in it, this guide will help solve all your doubts and queries.
Rental Scoring
The correct estimation of the profile and ability to pay of tenants for rental flats is an aspect that has a high impact on the real estate business. However, it is not as common to do it, as it happens with mortgages. There is the possibility of generating models similar to mortgage scorings aimed at determining the profile of the payer and their ability to pay. Generating them through the application of artificial intelligence techniques, which increase the prediction and discrimination power of the models, allows a more precise evaluation of the candidates to achieve the best results, reducing the risk of the operation.