REX is pioneering the use of AI, machine learning, and big data in the real estate industry. This cutting edge technology was featured recently in Boulder County Home + Garden. Below is an excerpt from the article written by Lori DeBoer. You can check out the full article here.
AI will even change the way people purchase houses, predicts Jack Ryan, the CEO of Rex Real Estate Exchange, which opened a Denver office in April. Ryan’s company is currently the only real estate firm using AI to better match home buyers with homes and sellers with buyers.
“There are so many applications for robots and AI in residential real estate,” says Ryan, who was inspired by his own home-buying experience to introduce more efficiency into the process. During his 20 years at Goldman Sachs, he saw trades previously handled by humans done by supercomputers. The efficiencies introduced by automation drove down the price of trading.
AI will not eliminate the human experience, however. “There are some things you still need emotional intelligence for, and buying and selling a home is still an emotional experience,” Ryan says. “People still want to meet a person before they list their home; it’s not just some crazy sci-fi where computers take over the world.”His 3-year-old company is driving down home-buying real estate fees from 6 to 2 percent, he says, because AI can make a better prediction about who is going to be a buyer of a house by looking at numerous data points and other information. For example, if a home is in the $500,000 to $800,000 price range, AI can predict that 80 percent of the buyers will already live within a 14-mile radius of the house. Homes in the $1-to-$2-million range are more likely to attract national and international buyers.
AI will introduce humans into the home-buying process when it’s convenient for the buyer, Ryan says. Today’s buyers “only want to see a house if it’s a good fit for them, and increasingly narrow their choices online before going to look at an actual property.”