{"id":1391,"date":"2021-05-05T09:00:35","date_gmt":"2021-05-05T13:00:35","guid":{"rendered":"https:\/\/www.deeds.com\/articles\/?p=1391"},"modified":"2024-04-25T23:20:01","modified_gmt":"2024-04-26T03:20:01","slug":"6-life-changing-ways-ai-is-converging-with-real-estate","status":"publish","type":"post","link":"https:\/\/www.deeds.com\/articles\/6-life-changing-ways-ai-is-converging-with-real-estate\/","title":{"rendered":"6 Life-Changing Ways AI Is Converging With Real Estate"},"content":{"rendered":"\n
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Artificial intelligence (AI) is here in a big way. It was\nalready moving into the real estate sphere when the pandemic hit in 2020, and sped\nthe uptake remarkably. <\/p>\n\n\n\n

It\u2019s all about technology that mimics human learning,\npredictions, and decision making. Machine learning, for example, is a form of\nAI that enables systems to consider patterns in large volumes of data, and respond\noptimally.<\/p>\n\n\n\n

Ready to check out 6+ ways this technology is changing real\nestate? Artificial intelligence is\u2026<\/p>\n\n\n\n\n\n\n\n

1.  \nEnhancing the Home Shopping Experience<\/h2>\n\n\n\n

AI helps buyers rev up their home searches. Trulia<\/a> is one of the companies deploying computer vision. The technology\u00a0can sense the types of interior design and construction visuals that tend to draw the attention of a specific home shopper. Picking up these cues, the platform makes sure similar homes jump to the top of search results. So do the homes that attract other people with similar tastes. <\/p>\n\n\n\n

In this way, AI can sort each shopper\u2019s listing based on a\ncomplex sense of likes and dislikes. This type of marketing is lightyears ahead\nof plain old filtering for location, prices, and number of rooms.<\/p>\n\n\n\n

Even more intriguing is the potential of AI to make sure\nmany more people are extended an opportunity to buy a home at all. Let\u2019s look\nat this now.<\/p>\n\n\n\n

2.  \nIncluding the Financially Excluded<\/h2>\n\n\n\n

A startup credit card company, Petal, is pioneering a method\npoised to change the way lenders think about younger customers, renters and\nothers who don\u2019t fit the traditional credit profile rules. And many don\u2019t. Tens\nof millions of people in the United States alone have little or no credit\ninformation. <\/p>\n\n\n\n

Whereas actuarial tables and FICO scores have long been proxies for a person\u2019s creditworthiness, there are plenty of people with low FICO scores who can handle a loan responsibly. Jason Gross, Petal\u2019s co-founder and CEO<\/a>, believes opening the doors to these potential borrowers is the future of real estate. Gross writes on Medium<\/em>:<\/p>\n\n\n\n

These consumers are largely shut\nout of the financial system, unable to finance a car, purchase a home, or\nsometimes even find an apartment or a job.<\/em><\/p>\n\n\n\n

Petal uses AI to consider the financial data these\napplicants do have. Mortgage lenders benefit from the technology, too. AI helps\nthem widen their pool of viable borrowers. <\/p>\n\n\n\n

Job displacements and the rise of the gig economy (and AI\nitself!) are creating many more nontraditional borrowers. Machine learning can\nhelp them. This is a trend to watch.<\/p>\n\n\n\n

3.  \nMaking Better Sense of Risk Financial Risks <\/h2>\n\n\n\n

AI also helps financial companies assess a property\u2019s\nlikelihood of appreciation. It can catch potential pitfalls and opportunities\nwith next-level precision. What outcomes could this bring?<\/p>\n\n\n\n