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How AI is Reshaping Real Estate: $180 Billion in Annual Impact

• David (Viacheslav) Davidenko • Season 4

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Imagine a world where buying a home is as effortless as selecting a movie online. This episode promises to unveil how cutting-edge AI is turning this dream into reality, revolutionizing the real estate landscape as we know it. We take a closer look at how companies like Opendoor are transforming property valuation with machine learning, obliterating uncertainties in pricing and negotiations. Plus, we shine a light on Vertigris’s innovative approach to making commercial spaces greener and more energy-efficient, thanks to AI-driven optimization of building systems. With AI’s predictive prowess, say goodbye to unexpected maintenance issues—property management is becoming more proactive than ever.

Join us on a futuristic journey as we explore how AI is not only reshaping the real estate experience but also democratizing it. Envision a future where AI-powered systems like Zillow’s recommendation engine personalize your home search, tailoring it to your unique tastes and needs. Imagine sustainable buildings that blend the best of nature and technology, creating living spaces that are both beautiful and functional. This episode is all about dreaming big and redefining the real estate market to be quicker, easier, and fairer for everyone involved. Tune in and let your imagination run wild as we explore the boundless possibilities AI holds for the industry's future.

📰 Read more about this topic in our latest article:  https://sunrisecapitalgroup.com/how-ai-is-reshaping-real-estate-180-billion-in-annual-impact/

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Speaker 1:

Hey everyone and welcome back. You guys gave us a ton of articles all about AI and real estate and, wow, this stuff is pretty wild. I'm guessing you're probably thinking about buying or selling a place sometime soon, maybe, or just fascinated by all the crazy new tech coming out. Or maybe you just want to you know sound super smart at your next dinner party. Either way, get this. We're talking AI that can predict what a house is worth, Even better than some experts in tech. That's helping buildings cut their energy use like in half.

Speaker 2:

Yeah, you know, it's amazing how AI is tackling these, like classic real estate problems, like trying to figure out what a house is really worth and making buildings more efficient. These problems have been around forever and AI is offering some real game changers.

Speaker 1:

For sure that's what I was thinking too. So, OK, let's start with this AI and property valuation thing. I mean, everyone wants to get a fair price right, but these old ways of doing things are so slow and they can be so subjective too and, honestly, sometimes it just feels like a total shot in the dark.

Speaker 2:

Yeah, you're right, and that's where AI comes in. You know, companies like Opendoor are using AI to analyze tons of data. When they're figuring out what a property is worth, it's not just about square footage anymore. They're using machine learning to look at like super local market trends, even things like how many building permits are being filed in the area or how good the schools are, all this stuff that human appraisers might totally miss. You know.

Speaker 1:

That's so smart. It's like they're seeing the whole picture Right. And I read somewhere that they give sellers a real offer based on data in just a couple of days. No more waiting weeks for appraisals or going back and forth forever with negotiations.

Speaker 2:

Exactly. It's like imagine that peace of mind you get from knowing you've got a fair, competitive offer that's actually based on real data. It just takes all the guesswork and stress out of it for everyone.

Speaker 1:

One article even said that properties bought through Opendoor's AI system saw their prices jump like 35% in just three months. That's crazy, but I also wonder like could that kind of fast price increase cause any problems in the?

Speaker 2:

market. Yeah, that's a good question. It's still pretty early, but we definitely need to keep an eye on how these AI valuations might shake things up in the long run.

Speaker 1:

Yeah, that makes sense. Okay, so we've got AI figuring out prices. Now let's talk about energy. I was shocked to read that commercial buildings use almost 40% of all the energy in America. That's a ton of power.

Speaker 2:

It really is a lot, and it's an area where AI can make a huge difference. There's this company called Vertigris and they've created an AI platform that's racked optimizing those HVAC and lighting systems in buildings, all in real time.

Speaker 1:

OK, so instead of those old methods that rely on, like, fixed schedules, vertigris' AI is actually adapting to how people are using the building.

Speaker 2:

Exactly. It's like having a super smart thermostat for the entire building. The sensors show that A conference room is empty. The AI will automatically adjust the temperature and the lights to save energy. That real-time adjustment is what makes it so powerful.

Speaker 1:

And they're getting some seriously impressive results too. They've helped companies like T-Mobile and NVIDIA cut their energy use by like 50%. That's amazing, not just for the planet, but for their bottom line too. You know, I'm really AI in real estate.

Speaker 2:

Oh, absolutely. And we haven't even talked about Zillow yet. This is where AI gets really personal.

Speaker 1:

You mean, like how Netflix will suggest shows based on what you've watched before? I was reading that Zillow is doing something like that, but with houses. Tell me more.

Speaker 2:

So it's all about creating a personalized experience.

Speaker 1:

Yeah.

Speaker 2:

You know, instead of showing you every single house On the market, zillow's AI looks at your behavior.

Speaker 1:

It sees what kinds of properties you're clicking on, what neighborhoods you're searching and then it uses all that data to suggest listings that it thinks you'll love. So it's like having your own personal real estate assistant who already knows exactly what you're looking for. That's pretty cool, and I read that it's working. Zillow saw a 33% increase in user engagement after they launched this new AI-powered recommendation system. I bet the agents love that too.

Speaker 2:

Oh, they do. It's not just about keeping people on the website longer. It's about making the whole house hunting process so much smoother by showing people properties they actually want to see. It helps Buyers find their dream homes faster, and that leads to better leads for the agents.

Speaker 1:

It's a win-win situation for sure. Yeah, I'm sensing a theme here AI is making real estate faster, more efficient and, honestly, just way less stressful. We've covered a lot in a pretty short time, but there's still so much more to talk about.

Speaker 2:

You know, one of the things that really stuck out to me in these articles is just how much AI is impacting real estate. Like We've been talking about buying, selling, energy use, but it goes even deeper than that.

Speaker 1:

Yeah, totally, I was reading about how AI is being used to like actually manage properties. Like imagine if AI could predict when something's going to break before it actually happens, and then it could just automatically schedule the repairs and even talk to the tenants.

Speaker 2:

It's not just imagination either. It's happening right now. Companies are using AI to look at all the data from sensors and those smart devices in buildings, trying to find patterns that might mean there's a problem coming up.

Speaker 1:

Oh, wow.

Speaker 2:

Like maybe a sensor picks up that the humidity is going up a little bit in an apartment, that could be an early sign of a leak, you know, and AI can tell the property manager to fix it right away before it turns into a huge mess.

Speaker 1:

That's pretty amazing. It would save property owners so much time and money and it's a way better experience. Yeah, for the renters too. I mean nobody wants to deal with a leaky roof or a broken appliance.

Speaker 2:

Right and think about this. It's good for the environment too. By taking care of maintenance issues Early on, we're preventing all that waste and lowering the impact buildings have on the planet.

Speaker 1:

Totally Okay. So AI is taking care of all the day-to-day stuff, but what about the big picture Like, can AI help us figure out what's going to happen in the market? That would be like having a crystal ball for real estate investors.

Speaker 2:

Well, it might not be a crystal ball exactly, but AI is getting a lot better at predicting how the market is going to move. Some companies are developing these algorithms that analyze mountains of data, economic indicators, demographic trends, even what people are saying on social media. They're trying to find patterns and see if they can predict how price is going to change in the future.

Speaker 1:

So you're saying AI could help me figure out which neighborhoods are going to be the next hotspots? That's incredible.

Speaker 2:

Well, it's not about knowing the future for sure, but it's about giving investors better information. Ai can help them spot new markets, figure out how risky things are and even decide when's the best time to buy or sell a property.

Speaker 1:

Wow, that's a total game changer. It can help anyone make smarter decisions, from individual investors to huge companies. But okay, if AI is getting so good at all of this stuff, what does that mean for real estate agents? Are they gonna be out of a job?

Speaker 2:

Yeah, a lot of people were asking that question. Some people think AI is gonna make real estate agents obsolete, but I don't think that's gonna happen at all.

Speaker 1:

I mean, buying or selling a home is such a personal and emotional thing.

Speaker 2:

Yeah, yeah, for sure. There's a human element to it that you just can't replace with technology. Right, and that's where human agents are always going to have the advantage. Ai can handle the data and the numbers and all the routine tasks, but it can't build relationships or understand people's emotions, and those things are so important in real estate.

Speaker 1:

So, instead of replacing agents, it sounds like AI is actually going to help them be even better at their job.

Speaker 2:

Exactly, ai will free up their time so they can focus on what they're really good at giving advice, guiding clients through the process and negotiating the best possible deals.

Speaker 1:

It's like a team effort AI does the heavy lifting and human agents bring the strategy and the emotional support. It's a pretty powerful combination. This is all so fascinating. You know we've talked about how AI is changing the way things are done now, but what about its potential to create totally new things in real estate?

Speaker 2:

Oh yeah, Now you're talking. The most exciting stuff is probably things we haven't even thought of yet, Like imagine AI-powered platforms that connect buyers and sellers directly without needing an agent at all.

Speaker 1:

Oh wow. Or AI that could design buildings that are super energy efficient, but also beautiful and comfortable.

Speaker 2:

Right. We can even see AI creating virtual reality tours that feel so real. It's like you're actually standing inside the property. The possibilities are kind of endless. It feels like we're at the inside the property. The possibilities are kind of endless. It feels like we're at the beginning of a whole new era of real estate.

Speaker 1:

I totally agree. This has been an incredible journey so far, exploring all this new tech, and I can't wait to see what happens next. What about you? What do you think the future holds for AI in real estate?

Speaker 2:

It's changing so fast, but we'll be here to help you understand it all every step of the way. But for now, I think it's time to just sit back and think about everything we've learned and maybe even dream a little about what could be possible.

Speaker 1:

Yeah, let your imagination go wild. What would your dream AI-powered real estate experience be like? Finding your perfect home without any stress, buildings that are totally in tune with nature and technology. Investing in real estate that's simple and fair for everyone.

Speaker 2:

Whatever you can imagine, one thing is for sure the future of real estate is going to be pretty amazing.

Speaker 1:

You know it's funny, as we've been talking about all this amazing AI stuff in real estate, I keep thinking about the human side of it, all you know.

Speaker 2:

Yeah, me too. We've talked a lot about how AI can make things faster and analyze all that data and even make predictions about the future, but at the end of the day, real estate is really about people.

Speaker 1:

Exactly. It's about finding the perfect home for a family or a place where businesses can grow, and creating those communities where people can connect with each other.

Speaker 2:

Yeah, and those are things that AI can't do by itself. It takes human understanding and creativity and empathy to really meet people's needs when it comes to something as important as where we live and work.

Speaker 1:

I love how you put that meeting people's needs. So even though AI is changing the real estate industry, I think its biggest impact is going to be giving us humans the power to do what we do best even better.

Speaker 2:

I think you're right. It's not about AI taking over our jobs or anything like that. It's about giving us the tools we need to make smarter decisions and create something even better.

Speaker 1:

Right. Like AI can look at market trends and tell us where to invest, but it's still a human who makes the final call.

Speaker 2:

Exactly, or think about it this way AI can design a building that's super energy efficient, but it's a human architect who makes it beautiful and gives it that special, something you know.

Speaker 1:

And even though AI can connect buyers and sellers online, it's still a human agent who builds that trust and helps people navigate all the complicated stuff and make sure everything goes smoothly.

Speaker 2:

It's really a partnership right the power of AI working together with human creativity and intuition that's where the real magic happens.

Speaker 1:

I totally agree. So, as we wrap up our deep dive into AI and real estate, I think the biggest takeaway is this AI is a powerful tool, but it's up to us humans to use it the right way.

Speaker 2:

Yeah, we have to be careful about how it's being used and make sure everything is fair and transparent, and we always have to remember that technology should be working for us, not the other way around.

Speaker 1:

That's a great point. It's been awesome exploring all these advancements with you, and I can't wait to see what happens next in the world of AI and real estate Me too.

Speaker 2:

It's a wild ride, for sure, and we'll be here to help you make sense of it all. But for now, I think it's time to just let all this sink in and maybe even daydream a little bit about what could be possible.

Speaker 1:

Absolutely. Let your imagination run free. What would your dream AI powered real estate experience look like? Finding your perfect home without any stress, buildings that are in harmony with nature and technology. Investing in real estate that's easy and fair for everyone.

Speaker 2:

Whatever you can dream up, one thing's for certain the future of real estates can be pretty incredible.

Speaker 1:

And that's a wrap on our deep dive into AI and real estate. Thanks for joining us on this adventure and we'll catch you on the next one.

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David (Viacheslav) Davidenko

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