With technology being the driving force for a majority of industries these days, it has become crucial to leverage AI and other advanced technologies to enhance customer experiences.
One such example of integration of advanced AI technologies and big data analytics can be observed in the property industry, particularly within the mortgage valuation process. Before the introduction of these technologies, this real estate valuation process used to be a time-consuming process which was also influenced by various external factors. Hence, its credibility was questioned at times.
However, with introduction of these AI technologies, it became simpler for the real estate valuers to carry out these real estate valuation processes and get accurate valuations. Further, here in this article we are going to discuss in detail about the impact and importance of these advanced technologies in real estate valuation.
Complexity of Real Estate Valuation
In real estate valuation, there has always been ambiguity and uncertainty. The process is delicate and can be easily influenced by various factors hence it was necessary to come up with a stable and accurate real estate valuation process.
Along with the introduction of advanced technologies in the process of real estate valuation, the process has been modified and developed in such a way that it provides accurate valuation without any biases, and influence of any other external factors.
How AI is Enhancing the Process?
We have already established the fact that AI is one of the most required and trending technologies that is being integrated in the property industry for different reasons. One main reason or benefit of this integration being the effective real estate valuation.
There has always been a confusion in the real estate industry about the correct price or value of the property. It is unimaginable for a person to be attentive enough and consider all the contributing factors and provide an accurate value for the property. Even if all the factors are considered, the deflection in the market trends cannot possibly be integrated.
To overcome this lack, AI technology and AI-driven platforms have been introduced in the industry. These platforms are designed in such a way that they can consider all the contributing factors and provide an accurate real estate valuation which is uninfluenced and non-biassed.
These platforms are designed to consider the seasonal light disparities, home decor, age of the property, its size, number of rooms, etc and provide you a final value based on the current market trend.
Role of Big Data in Real Estate Valuation
There is a huge amount of data available, which is to be processed in order to get the final real estate valuation. However, this huge pile of data cannot be processed easily hence the need of integrating advanced technologies such as Big Data. This can help to process this data and provide you with all the information & insights.
Additionally, leveraging Big Data, industry trends and other related data can be processed which can further help to have a better understanding of the market and predict the upcoming trends as well.
Benefits of AI and Big Data in Real Estate Valuation
Having discussed how AI and Big Data are being integrated into the real estate industry, here are some of the major benefits that can be observed in the industry.
Predictive Analytics
Integration of AI and Big data will help the real estate industry to better understand the huge piles of data and transform that data into information. This information can be further used to make predictions about the future trends in the real estate industry.
Predictive Analytics allows real estate to make predictions based on the data and trends in terms of real estate valuation, demands, and other factors.
Data Visualisation
Better data visualisation leads to better understanding. With Big Data you get a better understanding of all the data that you possess and helps you have a clear vision of it. For the real estate industry it is often said that 90% of decisions are influenced by data. This requires better data visualisation in order to make better decisions.
Easy Property Categorisation
Another benefit of integrating these technologies is that it helps you to categorise the property based on different data and filters that you put together. It also provides AI-enabled real time updates to the user that provides them real-time data access. This consists of live location tracking, 3D-visualisation, nearby places and others. These factors together help you to categorise the property into different segments.
Revenue Optimisation
Big data enabled AI analytics tools allows the real estate industry to spend less time in optimising the revenue for an organisation. These tools offer better functionality in different areas of real estate and help to achieve greater revenue goals.
Reduced Financial Risk
With the help of Big data analytics and other AI-tools, predictive analytics helps in predicting the future trends in the industry. It substantially reduces the financial risks and allows you to make safe, and better financial investment decisions.
Data-Driven Decision Making
Another benefit is that these tools help you to analyse the huge piles of data and convert them into actionable insights. These insights are further leveraged to make data-driven decisions with low risk factors.
Pattern Recognition
AI-enabled data analysis tools further allow you to study the data and market trends, and identify patterns if any. This allows you to make smart choices. This further enhances the appraisal process and adds a precision level to it that conventional methods cannot.
Real-time Modifications
Traditional methods often run out of the capacity to incorporate new data and trends to make better decisions. However, with AI-enabled tools real time data can be integrated in the decision making process. This allows consideration of real-time changes in the industry for a precise and fair real estate valuation to be given to both lenders and buyers.
Final Thoughts
With the introduction of AI and Big Data, a lot of new trends are coming in the real estate industry which is helping to redefine certain processes of the industry as well. Not only has this introduced efficiency to the processes but also enabled the lenders, and buyers to leverage these trends.
This has further allowed both lenders and buyers to switch to AI-driven platforms such as Valocity that can help them with an accurate real estate valuation process. These platforms are trending and are being used for elevating the real estate industry.
Additionally, these platforms are proving the necessity of AI and big data analytics in different segments of the real estate industry, especially in the real estate valuation process for precise valuation process.
