Let’s face it, despite all its benefits, artificial intelligence (AI) is a pretty complex topic. However, while some may hate it and others love it, there is no denying the fact that it is currently transforming the real estate industry. Basically, artificial intelligence refers to a type of technology that is able to draw logical conclusions on its own using historical data and specific predictive analytics. This aspect of AI technology is of great importance to the real estate industry, as it is what can help investors not only search for property in the UK, but also carry out the valuations for those properties.
So, how is AI technology actually being utilised in the property market?
It has actually proved effective in lead generation – often, when an agent markets a property or lists the property on relevant platforms, of course, they are bound to receive plenty of responses, some of which are from individuals who aren’t serious. The agent going through all those proposals to separate the genuine ones from the rest is a pain-staking job. However, with the help of AI, these tasks can be managed more efficiently and effectively by qualifying leads accordingly based on their likelihoods for success as well as other criteria that may only be identified through AI’s sophisticated algorithm technology.
The AI is transforming the property search process in the UK – Houzen AI solutions came as a relief to property investors outside the UK, and especially those who are interested in buying UK-based property. A couple of years back, listings were only on property magazines and sometimes in newspapers, but ever since these listings were availed online and became searchable to anybody anywhere in the world, the home search process was certainly streamlined. However, this still didn’t quite do the trick as what it was doing was to narrow down the search based on a list of set criteria such as the number of bedrooms, or bathrooms, or even the location, but it still left the investors with too many options to choose from. Now, this is where the AI algorithm comes into play, where it uses the same search criteria to identify the user’s preferences and then select properties according to those findings. The AI can also offer alternative listings that might match your preferences and then list them on top of your search results.
It is simplifying the property valuation process – the most crucial importance of AI lies in its ability to ‘predict the future’, especially when it comes to assessing the property and rental values. For instance, Houzen’s AI valuation solution is a program that was launched to allow investors to come up with accurate valuations of properties in the UK before they buy. This solution was particularly focused on property investors based in India, Hong Kong, or China looking to assess properties in the UK. Basically, the Houzen’s AI valuation tool allows the investors to search for properties based on the deposit amount one has, as well as, the percentage mortgage. It picks crucial data on over 500 pre-set data points and then auto-calculates an accurate valuation of both the property and the rental yield in just a matter of seconds. This means that an investor won’t have to spend so much time trying to shortlist high-yield properties. Moreover, the algorithm is able to scan photos of a property, analyse it, then automatically compare it to other comparable properties that are nearby, giving you a valuation that’s even more accurate than a human-produced one. In essence, AI has proven to be a crucial tool for real estate agents. As an investor, if you are looking to add certain properties to your portfolio, you can rely on them to come up with an accurate valuation.
It is also used to streamline property transactions – the essence of artificial intelligence in the real estate industry is to ensure that everything flows as smoothly as it possibly can and that there is reliability and transparency so that a property investor can invest in confidence. The transaction bit of the investment is critical. Now, the AI makes it super easy for property investors to run their property business. Not only will it cut down the amount of time one spends in a compute trying to key in crucial data about the investment, but it also helps in reducing the number of errors.
How can you benefit from AI for your property investment?
Having looked at how artificial intelligence tools are being used in the real estate industry, let’s take a look at ways that you stand to benefit as a property investor:
You will be able to make much better and informed decisions – essentially, as we stated earlier, AI solutions use predictive analytics to inform you of the property’s current and future valuations. So, this information will be so invaluable to you, as you will be able to determine if a particular property meets your specific bottom line even before you make your offer. The AI will also estimate the amount you can receive should you decide to sell the property.
You will gain a competitive edge in the market – simply put, if the AI can get you a better estimation of the property’s valuation, it also means that it can help you figure out the amount to offer. And it is by making better and more educated offers that you will be able to get ahead in the competition, especially given the fact that there are often more offers on the table.
You will be able to automate the investing process – can you imagine that AI tools completely eliminate the need for property management tasks in your investment? This is particularly so if you are a buy-and-hold investor, as you are normally required to complete several property management tasks on a regular basis. An AI tool enables you to automate everything, from data entry to lease abstraction. You basically just need to type in a few details, and then the program will make the remaining part of the process super easy and manageable.
Artificial intelligence tools are continuously evolving and developing, leading to better innovations in the real estate industry. The best AI valuation solutions can help you determine fair market value for your properties in real-time and give an accurate representation of risk through comprehensive data analysis that would be too difficult or expensive with any other method. This is something that you need to take advantage of by using the AI valuation solutions if you want to get ahead of the competition!