What is AI?
- Complete tasks
- Create content
- Drive cars,
- Play chess
- Comb through data
- Analyze information and much more!
How will the use of AI in real estate be?
How will it affect transactions?
What other areas of real estate will it impact?
- Property Maintenance & Management: AI can be used to plan better when properties will need maintenance based on running data and respond to maintenance requests from tenants
- Property Valuation: AI is useful in valuing a property by compiling all relevant information on a site
- Customer Service: Some agencies will use AI chatbots and response services for replying to common inquiries
- Marketing & Lead Generation: Many will turn to AI for graphic design or content creation and chatbots for interacting with potential clients
- Using AI to Build a Dream Home: Use it to visualize a space before actually building it.
Are there problems with its use in real estate?
- Any candidate who went to a women’s college
- Downgraded resumes that contained the word women’s
- Privileged resumes that used more verbs that men tend to use
Application to real estate: Mortgage lending
Mortgage lenders already use software to run applications for a mortgage – called Classic FICO to determine whether an applicant meets the standards to be considered for a conventional loan. This algorithm was created 15 years ago with data from the 90’s and many consider it to be harmful to people of color. This is because it relies heavily on traditional credit, which statistically they have less access to. It also doesn’t consider on-time payments, but late payments will be regarded as harmful and punish people for previous medical debt even after it has been paid. Besides this standard, institutions may also run applicants through their own programs, which are often considered secret and the specific algorithm not public information.
Will it replace real estate agents?
- The process of buying a home is a complex and emotional process
- Personalized service is an aspect of the industry
- Humans are adaptable
- There is value beyond transactions, like advice on property investment or assistance with property management