How Machine Learning Will Affect Real Estate
Machine learning is set to disrupt many industries in the years to come, that’s if it hasn’t already. It’s allowing people to process information like never before, creating new opportunities for many business owners and companies. Though the concept isn’t at all new, it’s only been truly developed and used within the last decade. So, how will machine learning affect the real estate industry in particular?
What Is Machine Learning?
The definition of machine learning is the science of getting a computer to learn and act like humans do and improve their learning over time. It’s a field of artificial intelligence, using algorithms to comprehend and organise data, without being explicitly programmed. Though it’s still in its infancy, artificial intelligence has already made its mark across various industries. Healthcare, law and education have all taken to using AI in their everyday workflow to help make it more accurate and efficient.
Use In Other Industries
In healthcare, machine learning is being used for faster patient diagnosis, as well as to identify any predicted medical problems the patient may have. It can also scan moles to detect whether they are cancerous. On the other hand, in education, machine learning has been used to lessen the pressures on teachers. Computers can create algorithms to plan lessons and grade papers, saving the teachers hours of their time.
Finally, in law machine learning can be used for data processing. It has the ability to filter through large amounts of data in an impressively short amount of time. Much like in the education industry, it’s saving employees hours of work which can be used for other tasks. This improves productivity.
Use In The Real Estate Industry
Machine learning is changing the way the real industry operates, especially when it comes to the buying and selling process. However, real estate is actually quite far behind other industries who were earlier adopters of the innovative technology.
Currently, real estate uses AI in its building automation systems. This is where sensors are placed around the building to collect data that will help the building owner improve the energy efficiency. It monitors the lighting, heating, and other electrical appliances in the building. If this is rolled out on a larger scale, it has the ability to support the emerging market for predictive analytics. At present, it can only monitor what is happening, and it is unable to make predictions for the future.
Furthermore, machine learning is improving property management. There are, in fact, many iOS app development companies who are creating cross platforms with Amazon Echo in order to help the communication with tenants. This would change the conventional property management a lot and it is the reason why both machine learning and voice search are working closely. The entire matter will be heavily targeted by GDPR in the near future, but for now, the law is not covering voice search.
What It Can Bring To The Industry
Consumer-facing applications such as customer service chatbots are already in use in other industries. They could potentially revolutionise the way online real estate agents work. By users inputting their information including needs and requirements, chatbots have the capabilities to match them with properties.
There are also developments to be made in virtual reality. At the moment, computers can be used for 3D property virtualisation. However, there’s still potential for it to go a step further by realistically replicating the environment into something that feels like the real thing.
The Future Of Machine Learning In Real Estate
When the average person is looking for a property; they are searching for the best home in a prime location. Machine learning can create comparison tools that could help the decision process. In the years to come, real estate portals should be able to make recommendations based on more than just property characteristics and location. They will be able to match a property to a family’s personality traits and preferences. Machine learning will use algorithms to take in all the necessary data and output relevant information, useful to the customer.
In addition, there is a predicted change in the way that homes are priced, thanks to AI and machine learning. Currently, an assessor is the best way to value a home before it’s put on the property market. In the future, real estates could use a sophisticated system that analyses: the house size, age, floor plan, outdoor space, distance, road and state of repair. This should then go through a range of filters and variables to effectively calculate the cost of the property. Estate agents would then be able to price properties based on individuals, not the market.
If machine learning keeps improving the way it is now, there is every reason to believe it will be used widely across the real estate industry; as much as it is already in others. To truly break into the real estate world, the industry experts need to be prepared to embrace it. The possibilities are endless if machine learning is welcomed with open arms.
About the author: Paul Matthews is a Manchester based business writer who writes in order to better inform business owners on how to run a successful business. You can usually find him at the local library or browsing Forbes’ latest pieces.
Images in this blog post come from Unsplash.