Brick and mortar real estate may seem like the only tangible thing in an increasingly virtual world, but it’s also being supported by artificial intelligence.
Some of the biggest names in the business, such as Compass, Zillow, and LoanSnap, are now using AI to help buyers find the right mortgage and home. And for real estate agents, this can already be a game-changer.
Most real estate data is public, from land records to title deeds, purchase prices and even mortgage liens. The problem was that going to the local offices to get all the information was a tedious process. Not anymore. Computer algorithms can now scan millions of documents in seconds, examining property values, debt levels, home renovations, and even some personal information of a landlord.
At LoanSnap, a San Francisco-based mortgage lender, AI is used at different stages of the mortgage process, from finding the right type of loan for a borrower to finding the right investor for the loan.
First, the borrower’s financial information is entered. Then the system “takes all of that information, predicts it into the future, and examines thousands and thousands and thousands of options,” said Carl Jacob, CEO of LoneSnap. “It’s different ways of paying off debt, different lending options, and it’s the first time AI has been turned into something that helps consumers avoid harming consumers.”
And for refinancing, he said, “we build a financial model for someone, and show them how much money they’re losing on a monthly and yearly basis, and then show them they’re potentially going to lose that money.” . “How to fix the problem and save money. In the future. Again, in seconds.
Jacob acknowledged that almost all companies now claim to use AI in some way, but said not all are implementing it to its full potential.
“75% is rhetoric, isn’t it? It’s a popular term. People pay attention to this stuff and say, “Oh yeah, we use AI too.” AI is actually machine thinking and / or sees possibilities that may not have been seen before. “
So AI can come in handy for borrowers, but it sounds like the holy grail for real estate agents looking for listings in today’s hyper-competitive housing market. The supply of homes for sale has reached several record highs since the start of the pandemic, when demand from buyers suddenly came to a halt. Agents are desperate for new announcements, and AI is providing a newcomer.
“The traditional agent knocked on the doors of many houses. Now, AI is helping you find the homes most likely to sell over the next 12 months, and it does so by triangulating all the data associated with the home, such as when the home he occupied the house when it was last sold, at what rate the house is selling in that particular area, ”said Joseph Sirosh, chief technology officer at Compass, a real estate brokerage firm.
The AI ”triangulates all of this information to predict which home is likely to be listed, so the agent can now contact that owner, offer their services and more.” Chances are.
Sirosh said Compass Agents have a 94% higher chance of winning potential targeted ads with AI. Supposedly, agents can price the house more accurately and target marketing more specifically.
For homebuyers, all the data available can help them find exactly what they’re looking for instead of going door-to-door.
Using Compass AI, they can price their property against other properties on the market, search for specific house types in highly specified locations, enter the desired square footage of interior spaces, and exterior. then receive immediate alerts when something happens. hits the market.
Zillow recently improved the price of its popular home “Zestimate, ”claiming that it now uses neural networks, or machine learning, in relation to how the brain works.
“In the case of the Zestimate algorithm, the neural network model correlates facts, location, housing market trends and house values. As a result of this update, Zestimate can now react more quickly to dynamic market conditions, allowing owners to provide more accurate estimates. [prediction] of a home’s current value, ”according to a Zillow release.
The company is now incorporating this new learning into its direct cash offer home buying business, Zillow Offers.
Currently, Zestimate is an introductory cash offering to approximately 900,000 eligible households in 23 markets.
According to the statement, “With this latest update and the improved accuracy of zestimate, the number of homes eligible for the cash offer is likely to increase by 30%.”
AI doesn’t do something traditional research can’t, but it dramatically speeds up the process, which is vital for these companies in a rapidly growing and hyper-competitive market.
“AI makes it possible to move to the dimension of self-driving, by outsourcing the bulk of the AI work associated with a real estate transaction: complex data, compliance, paperwork, home searches, negotiations, offers. I do it. Transactions actually seem much faster. It’s simpler, and it’s often cheaper, ”Sirosh said.
With this momentum, he said, artificial intelligence can overcome the most human component of any real estate transaction: stress.