Use of Technology in Real Estate

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Case Studies - Real Estate Companies Using AI and/or Machine Learning Tech

In this research we have provided three case study of US real estate company that are using artificial intelligence in its operations. For each case study, we have described how the companies are using AI or machine learning or smart technology. We have also provided the expected or current outcomes/results that the companies are hoping to achieve, or have achieved, by using this technology.

Zillow

  • Zillow AI factors digital photos into free property value estimates, or “Zestimates.” The technology relies specifically on a neural network, trained on millions of photos and home values to “read” photos in new listings for relevant information.

Expected outcome

  • According to Zillow, the resulting estimates — also informed by metrics like square footage — predict property value with a median error rate of two percent.
  • Zillow AI targets first-time home buyers with a focus on budget.
  • The use of AI by Zillow helps the brand to "boost the accuracy of its home-valuation software".
  • Zillow's Zestimates on about 1.6 million homes listed for sale across the country, including over 17,300 on the market in the Twin Cities region. Across all those home listings, it gets within 5% of the sales price nearly 84% of the time and within 10% better than 95% of the time.

Localize

  • Localize is available only for properties in New York (so far). Localize uses AI to fact-check apartment listings. The app can calculate everything from how much heavy bass shakes a building to, most impressively, how much light a unit really gets.
  • Though real estate agents often advertise “sunny” properties, Localize's proprietary AI drills into subtleties like seasonal light variations and the time of day when the apartment catches the most sun. Its property listings also feature data on park proximity, the efficiency of snow plowing and more.
  • Localize prioritizes listings that suit your life, based on commute times, great schools and check listings against city data so you get the facts and not the fluff.

Expected Outcome

  • Localize's AI software helps to suggest plots or building sites based on city zoning, trends in the industry, home that currently available for sale as well as future local infrastructure.
  • The AI software calculates seasonal light variations, crime rates in an area, or commute times for different means of transportation thus help in determining good and bad points about rentals

REX

  • Thanks to AI technology, this brokerage firm charges only a two percent commission on homes sold—less than half what a traditional broker charges. Rex’s algorithms place property ads on social media, search engines and digital real estate marketplaces, targeting users based on metrics like their recent purchase history.
  • These self-refining algorithms update their targeting criteria in real time, too, as users click (or don’t) on ads.
  • Rex has enhanced its human real estate agents with AI, too. They staff open houses accompanied by a robot programmed to answer nitty-gritty questions.

Expected Outcome

  • Rex's AI software has helped the homesellers to cuts its costs because they pay 2% commission to the artificial intelligence-driven service run by REX Real Estate Exchange instead of the typical 5 to 6% paid to a human agents who would find buyers for them.
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