Will AI Transform Residential Real Estate?
The main benefit expected from artificial intelligence (AI) is speed. A home valuation, for example, could arrive in minutes. Other routine tasks are already faster.
NEW YORK – Supporters of artificial intelligence (AI) in the real estate sector anticipate that machine learning tools will create prompt and precise valuations of homes in real time.
Existing AI tools already do that. They’re accelerating routine tasks, such as finalizing property listings and paperwork.
They expect more investment in the space later this year, in part because startups highlight any AI-linked feature they offer, according to Dan Wenhold, a partner at real estate-focused venture capital firm Fifth Wall.
But there seems to be more caution around AI, says Jeffrey Berman, a principal at real estate venture capital firm Camber Creek. “We are not getting overly excited about AI, much in the same way that we didn’t get overly excited about blockchain and tokenization startups,” he says.
Milestones.AI, an Austin-based startup developing a home management system, believes it can feed data-heavy profiles of residential property into generative AI to guide users about when to sell, the right time to call a repairman and help connect agents with suitable leads. But this concept requires not just great programming but also extensive data entry.
“It’s going to take us 10 years to get to the place where we’re really smart,” says Milestones’ CEO and co-founder Dustin Gray. Part of the solution is working with title companies that close millions of transactions a year to start building the database. So far, the firm has gained 200,000 users and raised $15.4 million in venture capital.
Source: The Real Deal (02/22/23) Sisson, Patrick
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