Recently, it has been almost impossible to go without reading or hearing about ChatGPT, an artificial intelligence chatbot. Moreover, there is an abundance of news coverage focusing on the ways in which artificial intelligence is affecting various industries and the way businesses operate. So, how has artificial intelligence (AI) been impacting the real estate industry? Read on to learn more.

1. Marketing and customer support

Real estate professionals, brokers, and lenders can use AI to automate initial marketing calls as well as customer support. For instance, Big Purple Dot, a mortgage CRM company, recently announced that it has incorporated ChatGPT into its systems to support its marketing platform. Furthermore, AI can also generate reliable leads that can help real estate professionals connect with individuals looking to buy or sell a home.

2. Personalized recommendations

Algorithms based on artificial intelligence can help match buyers with properties that are best suited for them. These algorithms can take various preferences into consideration such as location, budget, and layout. They can even assist with the mortgage application process and help potential buyers find the perfect loan type to match their needs and situation. AI-based platforms such as Zillow have already made considerable headway in this space.

3. Market analysis

Most information about individual properties, neighborhoods, and wider geographies is publicly accessible. However, going through thousands of documents to understand property values, debt levels, and ownership history is a tedious endeavor. AI tools can go through these records quite efficiently. They can provide price estimates for properties, as well as predict future price trends, all while incorporating changing market conditions. Moreover, investors, lenders, and developers can use such data to guide their business decisions and allocate resources appropriately.

4. Virtual tours

The Covid-19 pandemic popularized virtual property tours like nothing before.  Through AI-powered tools, interested buyers, renters, can investors can tour a property and get a feel for the floor plans from the comfort of their own homes, sometimes even with 3-D features. This removes any locational barriers and/or scheduling hassles of touring a property in person.

5. Property management

AI can be used to automate many aspects of property management. This includes predicting maintenance needs, streamlining communications with tenants, and rent collection. Property managers can also utilize AI capabilities to strengthen the security measures for the buildings or properties they manage.

Artificial intelligence can be very useful and its integration into the process of buying and selling homes is all but inevitable at this point. But, at the end of the day, AI tools cannot replicate human connection. By relying on artificial intelligence to cover time-consuming and repetitive tasks, as REALTORS^®, you can free up time to build stronger relationships with clients and close more deals. Take the time to acquaint yourself with the capabilities of artificial intelligence tools and determine how they can best support and help grow your business.

For more information on housing, demographic and economic trends in Virginia, be sure to check out Virginia REALTORS^®‘ other economic insights blogs and our data page.