In the foreseeable future technology will be having a significant impact on real estate transactions by using artificial intelligence and machine learning. There will be new tools and processes to improve the industry in the future. Following are few ways where the processes may be improved:
Marketing dollars – Realtors and brokers need to use analytics to determine where they are going spend their marketing dollars. They don’t want to blanket an entire area, but use their market dollars in a smart way targeting the best prospects. Analytics will help determine the right way to target buyers and sellers. For example, need to differentiate a move-up buyer from a buyer who is downsizing. Each requires a different message and approach. Finally, some people are predicting algorithms will help consumers locate their new home using prescriptive analytics and recommendation technology.
Avoid next mortgage crash - Since the last lending slowdown, there has been an increased in the amount of time to get mortgage and has become costlier. Also, it takes a larger staff to process the same number of loans due to new requirements. It is now time to avoid adding addition processes but allow online programs and algorithms to enter and verify data. Doing this will reduce manual intervention and speed up the process. This makes the process smoother for agents and consumers, lending fairer and less likely for human error and fraud. The result would open up the possibility of expanding credit to new groups of people.
Marketing home data – Homeowners in the past who have made updates to their home and not able to recaptured a larger percent of their expenses when selling. One thing that needs to be done, multiple listing agencies (MLS) needs to capture more data. The thinking here is, features that are added, but not mention in listing presentation, causes the public to assume they do not exist. As a result, the homeowner does not get credit for added new features. In addition, there is a movement to integrate a service that links home buyers with user manuals and maintenance material into the MLS for their homes. This would allow sellers to brag about their fancy and expensive appliances when listing their property.
Communication – Real estate professional are finding it more difficult to communicate with prospects due to time constraints of both parties. One suggestion, create more videos and do face-to-face connections using cameras through internet connection to reduce the severity of the problem.