8 Applications of AI in Real Estate The Motley Fool

AirDNA is a data analytics company specializing in the short-term rental market, focusing on providing insights for properties listed on platforms like Airbnb and VRBO. AirDNA leverages a wealth of information, including rental rates, occupancy rates and seasonal trends, to offer detailed analysis and forecasts. Their tools and reports aim to empower users with actionable intelligence to maximize their returns in the dynamic short-term rental space.

Machine learning, one of the most common applications of AI, involves training machines with large amounts of data to recognize patterns, analyze data, and run forecasts and algorithms. Even generative AI now plays a role, creating 3D models of properties so potential buyers can use any connected device, such as a smartphone or tablet, to get a sense of how the properties look. The technology took off during the COVID-19 pandemic, when sellers were reluctant to have buyers enter their homes, and it’s continued to grow.

Will AI change the world of real estate?

AI is also gaining popularity in underwriting to evaluate credit scores or employment history. In April 2024, it launched Rocket Logic, an AI-driven platform designed to simplify the mortgage application process for homebuyers and deliver approvals faster. AI is generally understood as the ability of computers and machines to handle tasks that require human intelligence.

Cox agreed, saying that AI and data will allow real estate agents to better comply with their fiduciary duties to clients. Supporting real estate agents in becoming more productive is even more relevant in the context of changes to the commission structure. “For example, agents can organize properties of interest into Collections for online collaboration, create tour sheets that help make it easy for clients to visit properties, and use AI-powered search and recommendations.

What is AI in real estate?

AI relies on this information to generate insights, but without proper security frameworks, this data can be exposed to cyber threats, unauthorized changes, or even internal misuse. Are there specific areas of your business where AI could bring significant improvements? Reflecting on these questions can help you identify strategic opportunities to integrate AI into your operations, positioning your business for success in a technology-driven future. With AI we can now automate the leasing process and optimize response time for prospective renters. It uses a sophisticated tool that provides immediate, intelligent answers about unit availability, attributes and pricing by extracting up-to-date information directly from our property management software system.

Each contact will be assigned a lead score so you know who to prioritize as a potential and probable seller. Other tools include email and direct mail marketing, segmentation tools and custom landing pages. The beauty of Fello is that it works your existing database to make sure no one is falling through the cracks.

Personalized property recommendations

Luxury, after all, denotes customization and exclusivity, which do not necessarily blend well with technology intended to simplify and streamline the larger industry. Now, earning the “guest favorite” badge will show which properties are in the top 25% of listings and also the top 1%. Those badges will become the goal of every provider, especially those offering high-end luxury stays that claim to be the best a traveler can expect.

• Trust and integrity are vitally important when marketing what may be the most important purchase of their customers’ lives, so professionals in this space must always prioritize ethics, transparency and accountability.
• Cost efficiency is another factor that drives many real estate companies to invest in AI solutions.
• AirDNA leverages a wealth of information, including rental rates, occupancy rates and seasonal trends, to offer detailed analysis and forecasts.
• AI is also gaining popularity in underwriting to evaluate credit scores or employment history.
• Reflecting on these questions can help you identify strategic opportunities to integrate AI into your operations, positioning your business for success in a technology-driven future.

Even the traditional virtual staging solutions take days to turnaround, while today’s buyers make decisions to attend an open house online—often in seconds. AI is revolutionizing how investors, lenders, and property managers operate, but security must remain a top priority. Without proper safeguards, AI-driven platforms could expose firms to cyber threats, compliance violations, and data breaches. “Keyway is leading the way in AI security innovation, integrating end-to-end encryption, secure deployment options, and advanced compliance tracking across KeyComps and KeyDocs. By embedding security into every stage of AI development and deployment, Keyway enables real estate teams to adopt AI without compromising data protection,” Recchia said. Automated analysis and decision-making can save time and reduce errors, leading to better investment outcomes.

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This means that it’s inevitable that the roles of professionals will change as they adopt new working practices and learn to augment their abilities with new, generative tools. With this in mind, lets take a look at some of the changes that we can expect to see. With AI, buyers can search for properties by describing their dream home using ChatGPT or sharing images, rather than using traditional filters on platforms such as number of bedrooms and bathrooms, McLaughlin says. It could also identify neighborhoods or properties that buyers may not have discovered otherwise. Sellers can use AI to help compare the cost and estimated return of presale renovation projects. And some brokerages are utilizing it to review agents’ past transactions and see what steps they took that generated more sales or higher profits, McLaughlin says.

And Sotheby’s are already using Collov AI’s Visual Agent to transform their marketing and simplify their work flow. Collov AI’s Virtual Real estate professionals don’t have time to learn complex new tools. Collov AI leverages proprietary model training to develop its AI agent, enabling it to understand architectural context, interior design principles, and staging best practices tailored specifically for real estate applications.

These measures significantly reduce the risk of cyberattacks and unauthorized data exposure, helping property managers and investors use AI without compromising security. Shoppers are able view photos, videos and floor plans of new homes and can add what they like to their collection. Co-buyers can also collaborate with each other and find out where their opinions overlap. To find a listing, you can put in your credentials, including credit score, income and information about a guarantor and extra savings.

• ” This is paired with housing market data from “multiple trusted sources” to predict homes’ current value with superior accuracy.
• Among the biggest issues with AI-generated text is that it may not comply with the Fair Housing Act, which is meant to prevent discrimination.
• Proptech focuses on devices that enable landlords and homeowners to monitor properties remotely.
• The Sterling company JK Moving, for example, uses an AI app that virtually surveys the size and volume of rooms, furniture, and appliances for moving estimates.

Only 15% have progressed to late-stage VC rounds, highlighting that the sector is still young and has immense potential for growth. Artificial intelligence is also gaining increasing adoption in financing, including mortgages. In underwriting, AI is used to analyze borrower information, including credit scores, income, and employment history, to evaluate the borrower’s risk profile and find the best rate to charge. Join leaders from Block, GSK, and SAP for an exclusive look at how autonomous agents are reshaping enterprise workflows – from real-time decision-making to end-to-end automation.