Artificial intelligence has a lot of valuable jobs these days. And now, it's going to be working in real estate.
The popular real estate site Zillow is employing an artificial intelligence network to improve their home value estimates, according to WIRED. They have updated their current algorithm that gives out automatic cash offers to buy homes according to a price estimate. With the update to their AI algorithm, Zillow believes they have improved the accuracy of price estimates, allowing them to buy more properties.
Before, owners of around 900,000 properties were the only ones eligible for cash offers. But the upgraded artificial intelligence network, Zillow states that the aforementioned market has been improved by as much as 30 percent. Furthermore, company representatives also claimed that the company can close an entire sale in as little as a single week, which is proof of the efficiency increase.
This artificial intelligence network upgrade is one of the largest that Zillow has gotten through the years. One may remember that the real estate company's "Zestimate" program (which launched almost two years ago after undergoing a major rework) was its most recent big attempt at AI-powered real estate valuation, as reported by GeekWire.
Zillow says that their upgraded neural network has led to an 11.5 percent decrease in price estimate errors covering 30 regions all across the US. Phoenix experienced the greatest error decline, with San Antonio, Tampa, and Houston following close behind.
Zillow's artificial intelligence escapades aren't really the first time that the real estate industry has tapped the services of AI. Last year, there were clamors for a lot more realtors to use artificial intelligence to generate better leads, which illustrates the massive value of neural networks in this type of business.
Artificial Intelligence: Not Really a Technological Boogeyman
AI has a bit of a bad reputation that it really doesn't deserve. While there are potential security threats that may arise from rushing to commercialize AI as a whole, a lot of people fail to realize just how incredibly useful artificial intelligence really is. And Zillow is taking full advantage of the processing power it affords.
Real estate is an industry that deals with a TON of data, even more so than others. It's crazy how much information is being processed in this industry alone: various pricing estimates, trends, buyer information, the whole shebang. Merely relying on human capabilities isn't going to keep most deals afloat, let alone make them more efficient.
With the power of AI, realtors and buyers will be able to go through their deals with as little hassle as possible. And this is always a welcome reality because purchasing a home can be an extremely stressful endeavor, especially for first-time buyers. This is where the age-old adage "you need all the help you can get" applies--even if the "helper" is a machine.
This article is owned by Tech Times
Written by RJ Pierce