Real Estate Software: What AI Tools help property developers?

Artificial Intelligence (AI) has been around for years but such tools as ChatGPT or MidJourney have made AI more approachable for “mere mortal users.” AI technology caused as much excitement (because this simplifies a lot of tasks) as fear (because it might take away or dramatically change a lot of jobs people did.)

But, fear or no fear, this technology will change our digital world. The annual growth of AI is expected to have a rate of 37.3% from 2023 to 2030, according to Grand View Research. As a result, it’s important to start adapting the business models and processes for the upcoming AI features to stay in business. It’s always easier to do something gradually than to have to completely revamp one’s business.

In this article, we’ll focus on the real estate industry and how it can benefit from AI implementation. According to research, 48% of business owners in real estate say AI helps them to cut operational costs and 63% said artificial intelligence solutions helped to increase revenue. 

How can you do that for your business? Well, we’ve got 6 possible solutions. 

Virtual Property Tours

Photos don’t always give a sense of the space and it’s an important factor when it comes to purchasing real estate. It’s always best to physically visit the location and see the property with your own eyes. 

But what to do when the physical visit isn’t an option? Stitching and scene reconstruction technologies become helpful, especially when empowered with artificial intelligence. 

• Stitching: get a 360-degree video or photo of the property (can be done with any camera, including smartphones) and AI can help to stitch them together to create a seamless panoramic view that enables an immersive and realistic virtual tour.
• Scene Reconstruction: this technology uses floor plans and images to generate a 3D model of the property by mapping the images onto the blueprints. As a result, you get the virtual environment of the property as if you were there. 

Read more about 3D visualization platforms and their role in property sales.

Predictive Analytics for Market Analysis

Market analysis is incredibly important in every industry and usually, it involves digging through a ton of data. AI algorithms can analyze large volumes of structured and unstructured data, including property sales data, demographic information, economic indicators, and online listings. By processing and analyzing this data, AI can identify patterns and correlations that might not be apparent to humans, providing insights into market trends, demand patterns, and pricing dynamics.

Forecasting is a very powerful tool for real estate because it helps to evaluate the land and the neighborhood in a much more efficient way. Predictive analytics are also used for other real-estate-related things, such as: 

1. Risk assessment
2. Site selection
3. Targeted marketing
4. Project optimization

There are already startups that operate in predictive analytics, including for the real estate industry. Here are 6 most popular ones:

AlphaSense: AlphaSense is an AI-powered market intelligence platform that leverages natural language processing (NLP) and machine learning algorithms to analyze vast amounts of financial data and provide market insights and predictions.

DataRobot: DataRobot is a machine learning platform that automates the end-to-end process of building and deploying predictive models. It can be used for market predictions by analyzing historical data, identifying patterns, and generating accurate forecasts.

EidoSearch: EidoSearch is a financial analytics platform that employs AI and machine learning algorithms to analyze historical market data and identify patterns. It helps users make informed investment decisions and predict future market movements.

Kensho: Kensho, now owned by S&P Global, is an analytics platform that combines NLP, machine learning, and data visualization to generate market predictions and insights. It can analyze large datasets and provide actionable intelligence to investors and financial professionals.

Sentieo: Sentieo is a financial research platform that uses AI and machine learning algorithms to analyze financial data, news, and corporate filings. It provides market predictions, and investment insights, and helps users discover trends and opportunities in the market.

Thinknum: Thinknum is a data analytics platform that uses AI and machine learning algorithms to extract and analyze alternative data from various sources, including social media, web scraping, and financial data. It provides predictive analytics and market insights for investors and analysts.

Personalized Property Recommendations

We’re used to personalized recommendations all around us - Google’s and Meta’s AI tools are just the tip of the iceberg yet they teach us to get used to all kinds of information to be related to our likes and dislikes - so much that it’s sometimes scary. Yet, we all like to be known. 

When it comes to real estate and property, personalized recommendations can make all the difference. Gone are the days of sifting through countless listings, hoping to stumble upon your dream home. Thanks to AI technology, personalized recommendations have become a game-changer in the industry.

With AI, individuals can receive tailored suggestions to streamline their property search process. Whether it's finding the perfect rental or the ideal home for purchase, AI's ability to provide customized recommendations proves invaluable. By leveraging AI technology, individuals can make more informed decisions about their real estate needs and find the property that best suits their preferences.

Imagine having an AI-powered assistant that understands your unique preferences and requirements. It can analyze your previous searches, location preferences, budget constraints, and even your lifestyle choices to deliver tailored recommendations that match your needs perfectly.

These AI-driven recommendation systems take into account various factors such as property type, location, amenities, price range, and more. They save you time and effort by presenting you with a curated list of properties that are most likely to align with your preferences.

Whether you're a first-time buyer or an experienced investor, personalized recommendations powered by AI can help you find the ideal property without the hassle. So say goodbye to endless scrolling and hello to a more efficient and effective way of discovering your dream real estate.

The best thing is that AI algorithms can analyze your preferences as a customer and match them with suitable properties based on your data and machine learning techniques.

We recently created a prototype of a mobile application for property listings that focuses on providing a good user experience to everyone involved. Read more about it here. 

Automated Lead Generation

Being a property developer in the real estate industry can be quite challenging, especially when it comes to lead generation. Generating high-quality leads is crucial for the success of any property development project. However, there are several obstacles that property developers often face in this process.

One of the main challenges is identifying and targeting the right audience. With so many potential buyers or investors out there, it can be difficult to narrow down your focus and reach those who are genuinely interested in your properties. This is where AI technology can come into play.

AI-powered tools can help property developers streamline their lead generation efforts by analyzing vast amounts of data and identifying potential buyers or investors who match specific criteria. These tools can also provide valuable insights into consumer behavior and preferences, allowing developers to tailor their marketing strategies accordingly.

This automation reduces the operational costs associated with lead generation because less human time is spent performing routine procedures. Granted, it’s always better to double-check and use a personalized approach to each lead once they are in your “net”, but it’s much easier to do when you don’t spend half of the time looking for the “fish.”

Also, natural language processing (NLP) and AI help with lead qualification because you can train your AI to answer basic questions about the properties and the conversation doesn’t have to feel like talking to a robot, but instead provide a pleasant experience. 

Another challenge in lead generation for property developers is staying ahead of the competition. The real estate market is highly competitive, and standing out from the crowd requires innovative approaches. AI technology can assist in this aspect as well.

AI algorithms can analyze market trends, competitor strategies, and customer feedback to provide valuable recommendations on how to differentiate your properties from others in the market. By leveraging AI insights, property developers can make more informed decisions about pricing, amenities, and marketing tactics that will attract potential leads.

Intelligent Pricing Strategies

Money. 

This is the main challenge for everyone involved in real estate.

Sellers want to make more.

Buyers want to spend less.

Everyone wants a fair price.

How to combine those two wishes in such a way that satisfies both buyers and sellers? AI algorithms come in handy here as well.

When it comes to real estate, AI algorithms can consider various factors such as 

• Location
• Property size
• Amenities
• Recent sales data
• Market trends
• Economic indicators

They can identify correlations between these factors and property prices to determine an optimal pricing strategy. For example, the algorithm may identify that properties with certain amenities or located in specific neighborhoods tend to sell at higher prices. It can also consider market conditions, such as supply and demand dynamics, to assess whether it's a buyer's or seller's market and adjust pricing recommendations accordingly.

Furthermore, AI algorithms can continuously learn and adapt based on new data and market trends, allowing them to refine pricing strategies over time. They can take into account both historical and real-time data to provide up-to-date and accurate pricing recommendations.

There are several AI tools and platforms available that offer intelligent pricing recommendations based on historical data and market trends. These tools leverage machine learning and advanced analytics techniques to analyze vast amounts of data and provide pricing insights. Here are a few examples:

• PriceIntelligence: PriceIntelligence is an AI-powered pricing optimization platform that helps businesses set optimal prices for their products or services. It uses machine learning algorithms to analyze historical sales data, market trends, competitor pricing, and other relevant factors to recommend pricing strategies that maximize revenue and profit.
• PROS Pricing Solutions: PROS is a software company that offers pricing solutions powered by AI and machine learning. Their pricing software uses historical and real-time data to identify demand patterns, customer preferences, market trends, and competitor behavior. It provides dynamic pricing recommendations to help businesses optimize their pricing strategies.
• BlackCurve: BlackCurve is an AI-powered pricing optimization platform designed for e-commerce and retail businesses. It uses historical sales data, customer behavior analysis, competitor pricing data, and other variables to generate pricing recommendations. The platform also allows businesses to perform "what-if" scenarios and simulate the impact of price changes.
• Vistaar: Vistaar is a pricing and revenue management software provider that utilizes AI and analytics to optimize pricing strategies. Their solutions analyze historical data, market trends, customer segmentation, and other variables to generate pricing recommendations. The platform also provides tools for price optimization, deal management, and price guidance.
• Revionics: Revionics, now part of Aptos, offers AI-powered pricing solutions for retail businesses. Their software analyzes historical sales data, market conditions, competitive dynamics, and other factors to deliver intelligent pricing recommendations. The platform also provides capabilities for promotional pricing optimization and markdown optimization.

Enhanced Customer Support and Communication

Finally, one of the most spoken-about AI tools lately: chatbots.

Effective customer support and communication are extremely important in real estate sales processes. People usually have a lot of questions about the properties they are interested in and if you can optimize that process in such a way that would be a win-win situation for all - why not?

AI-powered customer support solutions are revolutionizing the way real estate professionals communicate with their clients. These intelligent systems are designed to understand and respond to inquiries related to properties, pricing, availability, and more. They can provide instant responses, 24/7 availability, and accurate information to potential buyers or tenants.

By leveraging AI technology, real estate companies can streamline their customer support processes and enhance communication efficiency. Whether it's answering frequently asked questions or providing personalized property recommendations based on user preferences, AI-powered customer support is changing the game.

Moreover, these AI systems can also analyze data from previous interactions to improve future responses and provide valuable insights for real estate businesses. This helps them better understand their customers' needs and preferences, ultimately leading to more successful sales transactions.

AI in Real Estate: Conclusion

As you can see, artificial intelligence is a great tool that can give you a vast competitive advantage over other players in the real estate market while reducing your operating costs (i.e. increasing your profit margin.)

If you’re interested in any of the abovementioned solutions, feel free to talk to us about implementing, integrating, or developing such for your business. As a recap, here are the 6 areas we’re covered briefly:

1. Virtual property tours
2. Personalized property recommendations
3. Predictive analytics
4. Automated lead generation
5. Intelligent pricing strategies
6. Enhanced customer support. 

Are you ready to leverage AI technologies for more effective real estate sales?