Does AI have the potential to revamp property search?

Question

I'm viewing this question from purely a data standpoint. The way we search for properties today is based on value, calculating cap rate, looking at AVMs and mortgage rates, etc. But what if you can also now search for properties by walkability, distance to good schools and universities, and other characteristics of value? I was trying to explore some of these ideas when I dived into the history of property search in a blog post I published, but I'm curious to hear more thoughts from the community here.

Roshan Srinivasan · Answer

Great Carlos! Happy to chat. If anyone else is also open to chatting with feedback or to also just talk more about this field, happy to set up some time!

Carlos, to answer your question, the focus of our chat filter is right now on filtering listings, but I can see the value add of the question, "If I purchase all Single Family with DOM > 45 days in December 2022 in Alameda county, what's my approximate return in November 2023 using Redfin Estimate Value?"

This will definitely be something we look to add in the future as we make our search product more robust!

Shiyu Zhao · Answer

Purely from a data standpoint, big-data itself is already revamping property search. Most online platform already expose some form of walkability/school quality, etc. There are also online tools like https://www.frutainvest.com/msa that can help visualize neighborhood demographics info to help with broader area selections.

For things like interior condition of specific property, AI is coming up short a little bit at the moment. But the traffic pattern and overall customer interest that a listing received can be used as a very good proxy to distinguish between a "turn key luxury unit" and a "fixer upper" too (I bet redfin/zillow is already incorporating that into their models as a signal). None of these will overtake the role of an investor completely, but they will slowly help competent investors become more and more effective.

Nicholas L. · Answer

One key thing that can't be put into any system is the interior condition - because no one knows it, especially in older markets.  Sometimes not even the owners =)

Nicholas L. · Answer

On market - sure

Off market - much, much tougher

Roshan Srinivasan · Answer

Thanks Carlos for the feedback! I'll look into disclosures.io and see if we can pull similar data and expose it in some capacity. Out of curiosity to better understand your case as an investor, why would you want to ask these three questions?"Please find me probate houseplease find me house that has termite issue and costing more than 20K to repairplease find me house that was burnt after fire."

Carlos Ptriawan · Answer

Yes, if AI can do two or three level search that would be the best. Someone also mentioned there's way to do this.Also Roshan, so in every MLS listing, usually there's termite documents and property inspection report. Those docs are usually being kept at disclosure (disclosure.io to be exact).Now. If you can entangle those MLS database, property inspection AND also deed record, you would have no competition on search engine. Oh I just gave you one million idea.If you can do that, I can query like this :Please find me probate houseplease find me house that has termite issue and costing more than 20K to repairplease find me house that was burnt after fire.

:-) there's software that can do this by now (it's the closest to AI), and the way they do is by reading deed record.

Carlos Ptriawan · Answer

Roshad I'll add you in linkedin.I use your ai to query like this "show me SF properties in san jose for less than $2M, with DOM more than 30 days", the result is decent.Also Roshan, can you do two depth AI search for something like this "If I purchase all Single Family with DOM > 45 days in December 2022 in Alameda county, what's my approximate return in November 2023 using Redfin Estimate Value ?"So overhere you have to search all SF sold in Dec 2022 in Alameda county with DOM > 35 days, and run ZHI or Redfin estimate for today's value".

Carlos Ptriawan · Answer

One thing that AI really can do, lets say we take 3D video of a house with Matterport. Then AI from matterport can cross analysis the internal cost of material, so if they use LVP this or that, the bathroom type, they can quickly scan the price point at Homedepot. The same can be used in design house as well (usually taken by insurance company) where this process is all being done manually currently. I agree AI now is only entering Netscape phase with still so much potential.

Carlos Ptriawan · Answer

There would be more impact of AI into commercial building as it worthed the dollar value.One thing that I always cross in my mind right, lets say I see a Milk tea store in front me. I want to ask ChatGPT, hey how much is this guy paying for the space rent ? how much is the PSF value , or even, how much profitablity is he making if he is selling 500 green tea per day :)So things like that. I can take picture of a house and dozen information comes to me without opening zillow LOL

Does AI have the potential to revamp property search?

Most Popular Reply