Ever tried to estimate the price of a house? If you have, you'd know it's no easy feat. With so many factors at play, from the age of the property, its location, to the current market trends, property valuation can be a complex and tedious task. But what if I told you there's a game-changer in town that's ready to shake things up? That's right! Artificial intelligence (AI) is stepping into the realm of property valuation, and it's making the process quicker, more accurate, and efficient than ever.

The Magic of AI in Property Valuation

Imagine a machine that could learn and improve over time, similar to how we humans do. That's precisely what machine learning, a subset of AI, does. Now, apply this concept to property valuation. We feed these smart machines with a banquet of data - historical real estate sales, property characteristics, location-specific information, you name it. Then, these machine learning models analyze all these factors simultaneously and predict property values with a high degree of accuracy. The more data they consume, the more they learn, and the better they get at their predictions.

Perks of AI-Driven Property Valuations

So, why should we care about AI doing the heavy lifting in property valuation? Here are a few reasons:

1. Speed and Efficiency: Ever waited days for a property valuation to come through? With AI, you'll only be waiting seconds. Now, that's a significant time-saver!
2. Accuracy: Picture this - an AI model sifting through mountains of data to provide property valuations. It can potentially offer more precise valuations than ever before, which is a real boon for investors who rely heavily on accurate valuations to make their investment decisions.
3. Objectivity: Let's face it, we humans are a bit biased. But AI? Not a chance. AI-driven property valuations are purely data-based, removing human bias from the equation.

A Real-World Example: Altum AI

Enough with the theory, let's see AI in action! Altum AI, a company specializing in real estate data solutions, has been making waves with its Automated Valuation Model (AVM). Their AVM estimates property value based on a wide range of factors, from the age of the house to market trends and even neighborhood characteristics.

What's exciting about Altum AI's solution is that it supports various industries in automating valuations and managing risks. It uses machine learning to make predictions, without being explicitly programmed on how to do so. This approach helps eliminate human bias, finds both linear and non-linear correlations, generates insights into underlying drivers, and does all this much faster than traditional methods.

Currently, Altum AI's solution is one of the most advanced for business clients in the Dutch market. With years of experience in the real estate industry, the creators of Altum AI have ensured their algorithms leverage the most useful data related to property valuation​1​.

Another Innovative Player: Entera

While we're on the topic of AI in real estate, it would be amiss not to mention another major player: Entera. Often likened to the Bloomberg Terminal of Real Estate, Entera's platform utilizes AI to redefine the way we invest in single-family homes.

Entera's platform is an all-encompassing solution that provides access to hundreds of thousands of on and off-market homes all in one place. It allows users to build, refine, and validate their investment ideas using real-time market data and analytics. Moreover, it can match users with target properties around the clock, leveraging powerful analytics tools and a dedicated team to identify and offer on ideal properties. And the cherry on top? All this can be done at the click of a button!

But that's not all. Entera's AI-driven technology helps investors make informed decisions by understanding resident demand and identifying the best opportunities. This leads to more predictable returns for investors. Entera also provides a team of centralized and local real estate professionals with over $10 billion of experience to ensure investors buy and sell the best properties. This team serves as trusted advisors, supporting investors in starting, expanding, or optimizing their operations.

Impressive numbers back Entera's success. With over a $3 billion annual transaction rate and serving 29 markets in the U.S., Entera is transforming the residential real estate investing industry at a rapid pace. They handle over 1000 transactions per month and offer access to over 350,000 daily properties.

Entera's technology is trusted by the largest single-family rental firms to buy, sell, and operate single-family homes while maximizing returns across the U.S. It's also helping real estate agents sell their on and off-market listings to the largest buyers of residential real estate​1​.

Other Case Studies

In addition to Altum AI and Entera, there are a number of other companies that are developing AI-driven property valuation platforms. These companies include:

• CoreLogic
• Zillow
• Black Knight
• Opendoor
• OJO Labs

These companies are all working to develop AI-driven property valuation platforms that are more accurate, efficient, and consistent than traditional appraisals. As these platforms continue to develop, we can expect to see even more widespread adoption of AI in the real estate industry.

Conclusion

AI's impact on real estate, particularly in property valuation, is undeniable. Companies like Altum AI and Entera are leading the way, demonstrating the transformative power of AI in making property valuation more efficient, accurate, and unbiased.

Yet, the human element in real estate remains crucial. AI can provide data-driven insights and automate processes, but it's still the people behind the algorithms and the users of these platforms who make the final calls. The blend of AI and human judgment, therefore, is what truly constitutes the future of real estate valuation.

So, whether you're a real estate professional or an investor, it's time to embrace the power of AI. It's not just about keeping up with the times - it's about unlocking new opportunities in the exciting world of real estate.

That's it for this blog post. I hope it provides a good overview of how AI is revolutionizing property valuations. We'll explore more fascinating intersections of real estate and AI in the next posts of this series. Stay tuned!