Artificial intelligence is taking over real estate

[Danny Lambert]

Artificial intelligence is taking over real estate

• - Real estate companies are increasingly using artificial intelligence in every aspect of buying, selling and home financing.
• - Algorithms can now go through millions of documents in seconds, looking through property values, debt levels, home renovations, and even some of a homeowner’s personal information.
• - “The traditional agent would go knock on the doors of a lot of homes. Now AI helps you find the homes that are most likely to sell in the next 12 months,” said Compass’ chief technology officer.

[Bill F.]

@Danny Lambert

Appreciate you posting that article; interesting read, but not for the titled reason

I by no means am an expert in this field, but I do have some background and this author does what most do and conflate AI, Machine Learning, Big Data ect, while they are all different in important ways. 

This isn't AI in the sense of robots making decisions. Its a Machine Learning algorithm that uses vast amounts of historical data to come up with a model that can say what a buyer will do based off of past actions. The main issue with models like those are that they are only good for 12-18 months before they have to get re-done with new data due to the fact that we live in a complex adaptive society and all the participants can make different decisions based on what changes in their environment. 

Another draw back with neural networks is that while they will have a high degree of predictive power while they are live, they are like a black box that gives the user next to zero insight into they "why" behind the market actions, which is arguably more useful than a simple: this will sell for that. 

For me the big take away is: 

I know this is a hot topic for agents and I don't have a dog in the fight, but I can't see how, at least on the margins, this won't impact the traditional agent model.