Want to Make More Money in Real Estate Development? Use AI.
Tech-savvy real estate CEOs are aggressively adopting technology-driven strategies to gain a comparative advantage.
Opinions expressed by Entrepreneur contributors are their own.
Technology is rapidly changing the way we do business. Across industries, the transformative effect of disruptive technology is driving change towards a more immersive, data-driven approach in various aspects of business in most organizations.
Machine Learning (ML) and Artificial Intelligence (AI) are helping businesses across various industries harness the present and forge a determined future for themselves and their consumers, and the real estate industry is no exception.
While the adoption of tech in real estate might seem slow, significant progress has been made in defining use cases for tech and particularly, Artificial Intelligence in the industry. Tech-savvy real estate CEOs are aggressively adopting technology-driven strategies and are using the same to gain a comparative advantage.
Roy Dekel, CEO of SetSchedule, shares his view on the adoption of technology and the emergence of Artificial Intelligence in the real estate industry.
Technology in the real estate industry
Unlike similar industries, the process of technology adoption has been deemed slow in the real estate industry. But, we cannot discount the efforts of several players who are taking bold leaps and by so doing changing the narrative of the working processes of the industry. "There is a strong shift going on right now with regards to the adoption of technology in what used to be a strictly brick and mortar industry," said Dekel, "and such moves are yielding unprecedented results by way of easing the process of doing business in the industry."
Related: Making Smarter Homes and Comfortable Lives - Real Estate and Advanced Technology
The Impact of Artificial Intelligence (AI) on the business processes of the industry
Artificial Intelligence has made a strong incursion into the real estate industry, and it is already playing a significant role. Recently, most home buying and selling processes have become more digital than they were a decade ago, thanks to Artificial Intelligence. AI is also exerting firm pressure in the area of virtual tours. "Virtual open house tours are fast becoming the standard; in fact, an increasing number of new homeowners expect to attend a virtual tour as a prerequisite of visiting a prospective home," Dekel said.
Related: How Visual AI Will Empower Real Estate Industry
This shift towards virtualization and remote appraisals has improved the home buying process for agents and home buyers.
AI is also playing a useful role in servicing and advancing online leads. "While all leads are worth pursuing, AI can immediately help to further advance communications with potential clients and offer customer support on-demand, any time of day," Dekel said. "By actively harnessing the power of AI you set the stage to start the sales cycle."
The real estate industry has benefited and continues to benefit from the impact of Artificial Intelligence in the areas of marketing, lead generation and communication.
The advantages of AI for the industry
"It's a win-win situation for everybody," Dekel said. For the client, the broker, for everyone.
Nothing is easy but Artificial intelligence helps you take a few steps in the sales cycle. For agents, AI can nurture and identify valuable opportunities. This way, they are able to focus attention on leads that are realistic and close deals much quicker.
AI is also leading a new wave of decision making for the client. Dekel says that "almost everything is virtual from staging to tours, and even document signing. Much of this tech has made the process of buying or selling a home easier than ever and will be here to stay long term."
The emergence of the coronavirus pandemic has shown that technology can play an increasingly beneficial role in the industry and can be a driving force for change and dynamism for all players. "It makes perfect sense for real estate businesses to look to technology to meet the current demands," Dekel said.
Related: The Switch From Physical to Digital: Technology Transforming the Real Estate Industry
Limitations to the implementation of technology in the real estate industry
There has never been a business better than its people. The same is true for the real estate industry. The people are the most important factor in the proliferation of technology in the industry but unfortunately, they are the most potent deterrents. "If you take an in-depth look into the industry, you would discover that there is this penchant for wanting to stick to old ways," Dekel said.
Many of the old heads feel that technology would obscure the true essence of the business. However, expanding knowledge can help to reverse the trend and make for an even adoption of tech in the industry.