5 Ways Artificial Intelligence is Impacting Real Estate

Whether you like it or not, we’re living in a digital world, and while the concept of Artificial Intelligence (AI) may seem like something only major tech companies use or a concept from Sci-Fi movies, the truth is many of us are already using AI in our everyday lives.

So it makes sense that AI would now be making itself present in the real estate market. Our society has an ever-evolving toolbox of digital resources, and the real estate market is no exception. Curious what AI really is and how you may see it in the real estate arena? We’ll break it down here.

What exactly is AI?

With time and advancements in technology, the concept of AI itself has evolved. However, at its core, artificial intelligence is simply “a field, which combines computer science and robust datasets, to enable problem-solving,” as described by technology giant IBM.

Many people don’t even realize that most of us are using AI in our everyday lives. Things like unlocking your phone with Face ID, using a digital voice assistant, performing a Google search, watching Netflix, or even sending an email are all actions that utilize AI. Now that you have a better idea of what AI is— how has it entered real estate?

AI and real estate

AI is a technology that can make logical conclusions on its own, and through sophisticated algorithms, analytics, and robust data sets, it can make educated guesses about future behavior. Here are five ways that artificial intelligence is already being utilized in real estate and where you can expect to see more influence:

Agents use AI to qualify leads:

Browsing through multimillion-dollar homes on Zillow that we could never purchase is a favorite pastime of many, but AI allows agents to sift through leads and connect with real potential buyers.

Property development:

The advanced analytical tools from AI can be helpful in automating work throughout the design stages to ensure a property is as sustainable as possible, meets design requirements, create better security systems, and even predict the property market.

Makes for easier transactions:

Realtors are utilizing CRM systems that use machine learning to auto-fill data and generate reports which can reduce the number of errors and cut down on time in closing deals.

Improve the home search process:

Consumers can more accurately search for homes that fit their needs and requirements by using filters that organize properties by locations, square footage, price, number of bedrooms, etc. However, AI takes it a step further by analyzing your search patterns and offering more accurate results that are more likely to fit your needs.

Impact lending and mortgages:

At its core, underwriting is all about data, and the use of AI technology in this process has sped up the process and reduced the potential for human error. Additionally, AI can detect any errors early on, which can save both parties time from lengthy corrections later on in the purchasing process.

AI in the real estate sector is making processes easier for sellers, investors, and agents alike. Whether you realize it or not, you’ve likely already been using many AI functions. Have you utilized AI in your land buying or selling experiences?

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Continues with Mission to Help Land Sellers

For immediate release

Oct. 1, 2020, Tucson, Ariz.: LandHub, a leading player in the online real estate marketing space, has partnered with Fabrica, the technology leader for real estate transactions.

Fabrica is a San Francisco-based startup that is transforming the way land transactions are closed by providing secure online payments, instant property transfers and automated seller financing.

“Our clients can simply add a ‘Buy it Now’ button to the land listings on our website that allows buyers to close land sales quickly and efficiently using Fabrica’s state-of-the-art closing system,” said Kevin May, president and CEO of LandHub. “Fabrica is truly changing the way real estate transactions are closed by providing an alternative to an old and antiquated system.”

“With Fabrica the closing happens in a few easy steps online. Transactions settle effortlessly in minutes, instead of weeks. Sellers get paid seamlessly while buyers can enjoy a modern and secure closing experience,” said Federico Pomi, CEO of Fabrica.

About LandHub
LandHub is an Arizona-based website connecting land buyers and sellers. LandHub was established in 2016 to help people easily find and list land for sale by providing an easy to use website, thousands of property listings, and the latest technology to connect buyers and sellers.  Properties are marketed on Facebook, Instagram, Twitter, Google, LinkedIn, YouTube and Craigslist.  LandHub also publishes a weekly newsletter called the Sunday Land News.

About Fabrica
Fabrica’s mission is to power real estate transactions with software. At Fabrica we envision a new era where buying a home, refinancing a mortgage or running a real estate business will be powered by technology instead of paperwork and rubber stamps.

For more information, or to arrange an interview, please contact:

Kevin May, President – LandHub.com
844-452-6348
KMay@Landhub.com
www.LandHub.com

Federico Pomi, CEO – Fabrica
415-322-8656
fede@fabrica.land
www.fabrica.land

 

by Mark  Bingaman

The integration of drone photography with real estate marketing has been a significant point of conversation recently due to the Federal Aviation Administration’s summer 2016 release of rules governing commercial use of drone technology. We wrote about it here in two separate pieces, one called  “Using Drones to Buy and Sell Real Estate: Is it Legal?” and the other titled “FAA Issues Rules for Drone Photography of Real Estate.”

The most recent article sparked a comment on our blog by Philadelphia’s Karen Follis Mraz, a Land Acquisition Team Manager for the Westrum Development Company.

She replied “Interesting timing when all the online imagery start-ups and ever-developing companies are selling drone captures from coast to coast. Clearly there is a value, but I agree: people (and) privacy; it’s a valid point.”

Her comment made us wonder: Who are the companies most actively involved in selling drone photography services to real estate interests?

Here’s what we found:

Pictometry

Pictometry is a patented technology created and owned by Pictometry International, a company that merged with EagleView in 2013 to form EagleView Pictometry and continues to sell an aerial image capture process that produces imagery showing the fronts and sides of buildings and locations on the ground.

A big difference between pictometry technology and drone photography is the fact that, at least up until now, Pictometry has utilized airplanes to gather their shots. According to their website:

“Pictometry Intelligent Images are captured by a fleet of 73 planes outfitted with USGS-certified camera systems flying year-round. Image processing is completed using patented technologies that deliver amazing clarity and detail for a precise view of every feature. Because every pixel in the image is georeferenced the images become actionable, allowing for measurements and data extraction.”

Although EagleView Pictometry focuses on several different industries, real estate imagery is among the technology’s chief uses, providing for quick property searches by address and viewing of each property from multiple directions including a north, south, east and west view.

While the technology and company was built primarily on aerial photography via airplanes, EagleView Pictometry is now implementing drone photography into its offerings.
http://www.eagleview.com/Industries/Commercial/RealEstateFinancial.aspx

Drone Photography for Large-Scale, Commercial Real Estate

Providers of drone photography services for real estate can be broken down  into a couple of other categories. There are entities like The Drone Co., a national operation focused more on commercial real estate drone photography, including that of large-scale properties, developments, and buildings. A quick Google search will show a number of companies operating in this realm.

Local Real Estate Drone Photographers

If you’re a local real estate broker, Realtor, or smaller property owner, you probably neither need nor want the larger, more expensive operations profiled above. In that case, you’ll want to contact a local drone photographer in your area. Given that the business is burgeoning, you should have no trouble finding such a provider. In fact, many of the companies you already use for still photography or marketing videos are likely implementing drone photography into their service offerings.

Just MAKE SURE they are FAA Compliant and following the rules and liability issues spelled out in our previous blog post here.

Resources:

FAA: Drone rules

by Mark Bingaman

We recently wrote a post on the legalities of utilizing drone technology in the sale or purchase of land called “Utilizing Drones to Buy and Sell Real Estate: Is it Legal?”

At the time (January of 2016) rules in the United States allowed for hobbyists to fly drones that weighed less than 55 pounds, but guidelines for commercial usage had not yet been established.

However, in late June of 2016, the FAA finalized operational rules for small unmanned aircraft systems (UAS) being used for commercial ventures, including the photography and survey of real estate. The safety regulations mandate that commercial drones weigh less than 55 pounds and require operators to maintain a consistent line of sight with the drone. In other words, it is not permissible for a pilot on the ground to operate the UAS out of his range of vision and the drone in the air must be clearly visible to the naked eye of the controller. Additionally, even if the aircraft is within view of the pilot, it is illegal to fly the drone over any gathering of unprotected people who are not in some way taking part in the drone flight.

For example, you may utilize the drone to photograph land for sale or view a property, house, structure, or neighborhood from high above, but you must be able to see the drone – from the ground – at all times. If there are people nearby who are not involved in the drone flight (perhaps a park is a few hundred feet from the property you’re photographing or a busy city street is close by) you must avoid flying the drone over those people. Operation of a drone for commercial purposes is only allowed during daylight, although twilight flight is legal provided the aircraft has anti-collision lighting. No drone may fly above a threshold of 400 feet in the air.

Training and Licensing

Not just anyone can grab a drone and start photographing land for sale. Drone operators must be at least 16 years old and have a remote pilot certificate with a small UAS rating, or be directly supervised by someone with that rating. To qualify for a remote pilot certificate, an individual must either pass an initial aeronautical knowledge test at an FAA-approved knowledge testing center or have an existing non-student Part 61 pilot certificate. Those with existing certificates must have completed a flight review within the past two years and also must take an online drone operation course via the FAA.

Security background checks via the Transportation Safety Administration (TSA) will also be conducted before a license is issued. Interestingly, the FAA rules currently require no minimum insurance coverage for potential damage to persons or property.

State Laws and Privacy

The FAA also has issued no declarations on privacy concerns. In other words, is it legal for an operator to fly a drone over the property of another person without their permission? Currently, the answer appears to be “yes.” A number of states are currently beginning to address these concerns in their individual legislatures, so the legalities of drone flights over the property of others may vary from state-to-state until it’s addressed on a federal level.

The new rules for commercial drone operation go into effect in late August of 2016.

Source: https://www.faa.gov/uas/media/Part_107_Summary.pdf

More Info (Video):

http://nbc4i.com/2016/06/21/owners-can-now-fly-small-drones-without-special-permission-from-faa/

by Mark Bingaman

Imagine the day when you can sit at your computer in Tennessee or Vermont or Montana or wherever and search for available farmland for sale. What? You can do that now, you say?

Well what if you could also access imagery that provides a view of that land from a couple of miles in the sky but also zooms in to see the seeds adorning a single plant? And what if that imagery was accompanied by a good amount of extrapolated data that would allow you to estimate the past and future productivity of those fields? Sort of makes you want to go buy some farmland for sale right now, doesn’t it?

A new type of super-high-flying drone technology will soon enable farmers to make better decisions on land and crop management, and provide anyone searching for U.S. farmland for sale reams of new data upon which to base a purchase decision.

The technology should help farmers of all types realize more crop productivity and potentially make an investment in farmland more economical and lucrative for land buyers and producers.

The drone, which will test precision agriculture methods, made its first flight in May of 2016 above North Dakota, and is slated to spend all summer testing procedures and photographing farmland in that state. Officials intend to learn whether this type of drone photography provides better results than satellite imagery or that from other forms or aerial photography.

Manufactured in Israel, the Elbit Systems Hermes 450 aircraft is 20-feet long with a wingspan of 35 feet, can fly for 20 hours, snaps pictures from an altitude as high as 8,000 feet, and can capture images of a swath of farmland ranging from 4 miles wide to 40 miles long. But that doesn’t stop it from also taking intensely close photographs of small parcels of land. According to a story by the Associated Press, officials also expect it to show them images of things as small as seeds, a feature that will allow both agriculture officials, farmers, and landowners to get a precise feel for things like how plant growth is progressing through the season and make more informed business decisions based on multiple data points.

While this sort of information is valuable from that standpoint, it should also eventually trickle down to a number of uses, including allowing anyone interested in buying farmland a wide-ranging (both far away and up-close) view of the land they’re interested in purchasing.

North Dakota was chosen to host this test based on the fact that it leads the nation in production of 10 types of farm commodities and is also the only stated qualified by the Federal Aviation Administration to allow drone flights above 200 feet, the standard limit imposed on the rest of the United States.

The summer of 2016 project is expected to cost in excess of $700,000 and is being funded by the North Dakota State Chamber of Commerce and the manufacturer of the drone aircraft. The Israeli company intends to sell the photographs and data to farm groups and producers.

North Dakota State University Podcast: Sound Ag Advice 027

The agricultural uses of unmanned aerial vehicles (UAVs) looks bright, says John Nowatzki, NDSU Agricultural Machine Systems Specialist.

Source: Associated Press: High-flying drone makes 1st flight to test farmland photos

According to a year-end 2014 report from the Federal Reserve, the U.S. real estate market is worth an estimated $40 trillion. Of that, residential real estate represents about $23 million, or more than half. Even more telling, new home mortgages were up 15 percent in Q2, 2015, compared to a year ago (according to Black Knight Financial Services). Eighty (80%) percent of 2015 buyers had credit scores above 700.

That is a lot of serious money in one sector, and a lot of obvious wealth-building material. In spite of which, real estate has historically been one of the last sectors to use technology to improve its ability to offer the right property to the right buyer at the right time.

But all that is changing. With the U.S. economy – and especially the real estate vertical – improving, the potential for even more sales is huge. There is in fact so much promise in the real estate market that some experts are predicting $1 trillion in sales by 2030. That is only 15 years away!

The challenges are evident, and they can make or break not merely the industry but each individual realtor. These challenges are represented by higher and higher values and more complicated titles. Titles now passing through numerous financial institutions with more entities (brokers, lenders, builders, appraisers, inspectors) involved. As well as a great deal more data per transaction as the entities submit their various and often very complex reports.

The days of the handshake are long gone. Now, it is more than a single individual can handle to simply remember all the listings, let alone all the potential lending opportunities for buyers. Gone, along with that handshake, are hours spent traveling from house to house, and phoning ahead to make sure each house is available for viewing. A common and a thankless task that produced about one sale for every 30-45 hours spent selling. If the agent was lucky.

Today technology is here to help, and mobile technology is becoming the bright star of real estate. There are virtual tours, even virtual signage thanks to Apple’s iBeacon. If an agent’s territory is large, the homes for sale spread across miles. Now there are drones to take aerial photographs. There is even the instant availability of “mailing lists”, or blanket e-mail/text announcements, not to mention social media, which can spread the message of a new listing far and wide – instantly!

Perhaps more important, at least from the real estate firm’s point-of-view, technology cuts costs. Where a blanket mailing once cost $50 or more, the same can be achieved by keying in a few numbers on an iPhone or other mobile device. That can deliver a social media blast across at least a dozen different forums.

house_for_saleThis leaves time, and more importantly money, for real estate firms to move into the “how-to” side of home ownership. For example, a new homeowner wants to install a garbage disposal or dishwasher, but doesn’t want the expense of hiring a plumber. How convenient if the site from which they selected the home also has advice on these homeowner-related concerns? Moreover, how many sales might this kind of service insure in the future?

Want to try the most technologically advanced land website for free?  Click here for free trial: www.LandHub.com/Landing

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