How Artificial Intelligence and Virtual Reality will Disrupt the Real Estate Industry
If you’ve ever shopped for a new house or apartment, you know how frustrating it can be. Salesy real estate agents, spending hours reviewing listings, missing open house events and wasting Sunday afternoons can make for a distasteful and stressful task. All of this is about to change as artificial intelligence, virtual reality and augmented reality become integrated into the way consumers buy real estate.
In the future, real estate shopping will look very different. Most, if not all, of your shopping experience will be done from the comfort of your own home, in virtual reality, wearing virtual headgear. You will be able to tour a home at any time, day or night, 24/7. And you will be able to view real estate anywhere in the world. You can ask a virtual agent to give you a guided tour of the house and property and can tell you the history of the house and its features.
In the future an intelligent algorithm will follow you around and learn your likes and dislikes and recommend other properties to visit. You will be able to access a virtual reality program that can show you what the exterior or an interior of the house would look like with a different color of paint or with your furniture in it. It will take all of your existing furniture, electronics, clothes and decorations and virtually place them in the house you are considering to see how things will fit. You will be able to virtually design landscaping elements, add a pool, make any alterations or remodel the property virtually, in real time.
Virtual reality real estate platforms of the future will allow potential buyers to explore properties that are for sale and determine the best property based on their needs. They will even be able to get estimated bids and turnaround times from contractors in the area to have a sense of the cost and timeline for desired projects.
Once you have made your decision, artificial intelligence will be able to help you write your contract, contact your bank to disburse funds and move forward with your offer.
Virtual reality, artificial intelligence that is able to learn and augmented reality are all technologies that will be coming to the market within the next two to five years. Companies such as Facebook Oculus VR, Microsoft Hololens, Google Magic leap, High Fidelity and others are spending billions of dollars to develop these types of disruptive applications.
Smaller firms, such as Rubicon Media and Studio Vieweet are developing artificial intelligence and virtual reality applications specifically for the real estate industry. These applications are able to capture and render models, images and videos of properties for clients and investors to view.
Recommendation algorithms are already in use by many companies, such as Netflix and Facebook) and are presently being designed for the real estate industry.
Machine learning applications are being designed by major real estate companies like Zillow, Trulia, Move, Redfin, ZipRealty and more. These applications will be able to make the search process, valuation, consulting and property management easier to manage.
The technology revolution is bringing exciting changes to the real estate industry. Real estate professionals that are able to anticipate and modify their business model to incorporate these changes will be the ones to thrive in the new technology-based environment. Consider ways you can streamline your job and make it easier to deliver the services that matter the most. Professionals in the real estate industry who learn about artificial intelligence, virtual and augmented reality and other new technologies and find ways to leverage them will thrive in their chosen profession.
Marsh & McLennan Agency (MMA) and its local partners are experts in the real estate industry. Whether you are an owner, property manger or other real estate professional, MMA has the industry knowledge and dedicated personnel to develop customized risk management programs that address your specific challenges. Contact us today to learn more about our innovative programs designed for the real estate industry.