AI in Real Estate: What Buyers and Sellers Need to Know

| Buying

From finding the best Toronto real estate team to researching listings and finding information to convenient document e-signing, technology has drastically changed the real estate industry in a good way. Today, AI is the new kid on the tech block, further helping to simplify the process. But can it really?

Let’s look at how AI is changing real estate and what buyers and sellers need to know to avoid possible pitfalls.

Using AI to Buy a Home

First, let’s look at how buyers can use AI.

Streamlining Your Search

Algorithms have helped fine-tune property searches for a while now using basic information based on location, things like number of bedrooms and bathrooms, price, parking, etc. Today AI uses machine learning to drive search capabilities, collecting more and more details to improve the recommendations it makes. Machine learning allows AI to constantly improve its knowledge based on how users respond to results. As users refine search queries, AI quickly adapts and uses other sources such as search and browser history to become more informative and accurate with its answers.

Warning: AI also can’t tell when someone is messing with it, so it can sometimes be inaccurate and misleading. Use AI with a grain of salt and a touch of mistrust instead of taking it at its word!

Mortgages

Technology and AI have streamlined online mortgage applications, allowing buyers to assess whether they will qualify, calculate payments, and even receive instant approvals. Other ways AI helps in the mortgage process include:

  • 24/7 availability to answer questions
  • Notifications when mortgage rates change
  • Real-time rate comparisons across different lenders

Warning: The downside to online mortgages is not having solid advice and possibly missing out on available offers that might come up when dealing directly with your bank. There is also always the risk of fraudulent platforms stealing information, so proceed with caution.

Virtual Walkthroughs

Although virtual tour technology has been around for a while, AI has made advancements that allow viewers to test out things like rearranging furniture on floor plans or checking out how they might make renovations to improve the space to suit their needs. You can even use VR headsets to feel like you’re actually in the space.

Warning: Remember AI is also known for deep fakes, and any property can be made to look stellar, or worse, the property might not even exist. The technology is designed to help sellers make their homes look good but can also be used to mislead.

Get more home-buying advice with these posts next: 

Real Estate Investment

Many investors use AI to help track market trends and analyze historical data and indicators to advise on the best time to buy (or sell). Valuable insight on neighbourhood growth, supply and demand, interest rates, and rent helps reduce risks.

Warning: Again, trust is an issue, as you need to ensure the sources and platforms AI uses are legit. A trusted agent will always trump relying on AI investment advice to reduce risk and maximize ROI potential.

Neighbourhood Recommendations

AI can use voice queries to help you find the best neighbourhoods based on all your ideals and even factors in stuff like your plans to have kids to find the best schools. In theory, you can collect hyper-local information to find micro-neighbourhoods perfect for your needs, from crime rates right down to how dependable the TTC is based on your commute.

Warning: The data AI finds might not be up to date. Risky info tends to impact lesser-known areas, areas under development, or current issues such as rising crime, TTC construction, etc.

Using AI to Sell Your Home

AI can also help when selling your home, including the 3D tours mentioned above. Here’s what else you should know.

Price Modelling

Savvy real estate teams keep an eye on the market to ensure their clients list at the right price. AI-powered analytics use real-time pricing based on home features, recent sales, active listings, and market trends. AI can enhance pricing strategies, so homes sell faster for the maximum price.

Warning: Relying on AI price modelling without a real estate team can increase the risk of overvaluing or undervaluing a property and jeopardize your sale.

Do you have questions about selling your home? Check out these posts next:

Market Predictions

As with real estate investments, AI uses market data to predict the right time to sell. Information like inventory, buyer preference trends, interest rates, days on market, best prices, etc. helps predict peak buying times.

Warning: Again, the sources can be iffy, so use this tool with caution.

So there you have it. AI is changing the way both real estate agents and their clients mange the buying and selling process. Combining agent expertise with AI tools allows you to leverage the power of both.

When choosing who to work with when buying or selling, choose the one of the best real estate teams in Toronto. Get in touch with The Christine Cowern Team by calling us or emailing us directly today.