If you read any of the top-flight publications that covers business, such as Bloomberg, Forbes or The Economist, then you cannot help but see numerous articles about emerging technologies, such as AI (artificial intelligence), big data, blockchain and IoT (Internet of Things).
What do all of these new technologies have in common? Simply put, they are transforming the way that business and business processes are being completed. The real estate sector is no exception. At first glance, it may be difficult to understand how something like AI or blockchain could influence the traditional business of buying and selling property assets — however, it’s happening right now.
For example, consider big data. Big data is defined as the availability of larger and more variegated data sets, especially those which are generated by novel sources. How does access to a huge amount of data and new kinds of data help the real estate professional do his or her job better?
Big data is a way to reduce financial risks. It can be used to analyze an owner’s property information, the condition of the asset, renovations and prior condition of the property. The agent then uses this data to get an estimation of the property in a highly precise way. The agent can then give customers a much clearer picture of what they are considering. The agent also gains a superior ability to suggest a suitable home or apartment based on the unique needs and position of the client.
That’s just one instance of how big data can help in real estate. Let’s move on to another emerging technology — AI for real estate application.
AI helps computers and other “machines” perform complicated and sophisticated tasks, such as data evaluation and problem-solving. AI, and its subprocess of machine learning, leverage a superior ability to recognize patterns and glean insights from big data. AI can also automate repetitive tasks that once burned up the time of busy real estate professionals.
AI can significantly improve the business performance of a real estate firm. For example, it can streamline data management for real estate purposes. AI uses algorithms to make recommendations after identifying critical points of customer preferences. AI can even help with real estate advertising by scanning big data and ferreting out the most popular types of real estate or specific real estate assets.