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Home evaluation has offered thousands of jobs to qualified assessors who spend time weighing the factors that combine to determine the overall value of a home or property. The use of Artificial Intelligence, also known as AI, could threaten the continuation of employment in this arena. AI is being implemented in multiple sectors of the real estate industry and it offers a more cost effective alternative for companies who have an eye on the bottom line for their businesses.
How AI is taking over home evaluation
The rationale for moving home evaluation to assess value in the real estate industry is two fold. Companies will save money by allowing programs to determine real estate values because it will decrease the number of staff required to do the job. After the initial cost of the software implementation, the programs will pay for themselves within the first year of use. There is a considerable amount of money flowing and and out of this business so there is a need for accurate prediction models in AI.
The parameters of these programs are manually input by operators so there will be the need to maintain staff for input and monitoring, but this process doesn’t take long so we’re looking at the ability to maximize the volume of home evaluations being done with less human intervention.
Value forecasting with AI
Conventional methods of home evaluation involve methods such as land and building, sales comparison, rental comparisons and the input of market data from similar real estate transactions. Also included are neighborhood characteristics, physical and economic characteristics, environment, location, branding, appraisal reports, tax assessments and other fees associated with the property.
These factors are constantly changing and advanced technology has the capacity through AI to compensate and incorporate changing trends into the overall programming scheme. All of these factors are usually analyzed by human workers. We now have the technology to complete all of these time consuming processes with the use of a single computer program. Corporations who implement AI technology use will realize an optimization in operational costs for greater productivity.
Advantages and disadvantages of AI in home evaluation
There is a strong likelihood that Artificial Intelligence networks will operate with higher precision levels in addition to the previously stated benefit of a higher workload capacity. The system has been designed for user friendliness so it is easy to operate and will require less training than some other more complicated software programs. A simple input of variables into pre-programmed systems will yield the desired information with details as great as users desire.
The major disadvantages associated with AI for home evaluation is that the complicated processes that occur within the program cannot be explained and they will be unknown by the people who use them. When a client asks for an explanation of the final figures, there is not likely to be an answer available for them. At least not one that can be verified through first hand knowledge of the operations.
The second disadvantage is that the systems are definitely going to replace humans in the work force. Jobs will be lost and in addition to this, AI is likely to spread to other sectors of the industry which may make human interaction with AI less important with more being done by the programs than by people. It could be good for the bottom line of the companies using them, but bad for the economy and the employment rate for the nation. Below is a listing of some of the new startup companies offering AI programs for the real estate industry.
1. PredictionIO
This company offers open source servers that allows software developer to create predictive futures. It is recommended for companies who prefer to use customized software to generate specific reports for real estate valuation.
2. ExactBid
This software program offers real estate companies with an automated means of generating appraisal reports with speed and accuracy. It works under the Narrative One platform and is highly adaptable to accommodate any brand and style that is required for individual companies. The program can be tailored to generate the scope of information about a property that is the most useful, and it performs the calculations internally to deliver reports in record time.
3. DataMaster
DataMaster is becoming popular as the top software choice for real estate appraisers in the nation. It offers rapid valuation reports with precision and accuracy. It not only saves time, it saves money. It directly imports public records data and calculates the data in accordance with the requested report types within seconds. Report types are fully customizable and the software is available to real estate professionals on a fourteen day free trial period prior to purchase so you can take it for a test run before you buy.
4. Datappraise
Datappraise software is portable and can be used practically anywhere. It is particularly useful when on site evaluation of property value would be beneficial. The system is cloud based and allows for fast access to computers and property information located anywhere on the web through remote access. All you need to use the software is an internet connection. This software is intended to reduce real estate and iT costs while allowing real estate professionals to more quickly and easily expand territories without losing contact with their teams.
Final thoughts
These are just a few of the new companies which are developing customizable software programs which are based on artificial intelligence. There is a long list of startups who want to get in on the action and the list of investors who are willing to take a chance on this new technology is even longer.
Professionals are viewing artificial intelligence as the coming wave of the future and with more and more systems becoming fully automated, we’re seeing the age of computers taking over and edging humans out of career positions that were once lucrative and helped to keep people in the workforce in greater numbers. Just as other industries are turning to automation to cut costs, we’re seeing the same trend occurring within the home evaluation segment of the real estate industry.
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