Artificial intelligence in the real estate market?
Given the rising prices in today’s real estate market, as a result, a new player has entered the market. There is a new trend of companies that are now making cash offers to homeowners that want a quick and easy deal. These companies that are making cash offers to homeowners are using algorithms ( aka artificial intelligence) to present a sales price.
One of the key players is Zillow, one of the biggest real estate search sites. So, not only does Zillow provide their clients with home searches and evaluations, but also cash offers on properties. Ladies and gents, this is the future, artificial intelligence, now in every aspects of our lives!
Now, how good are their offers? Remember, this is all algorithm, which means, based on numbers only. There is no consideration of the energy the home brings, the aesthetics, etc. No emotions on these offers. Therefore, these offers may not be what you have in mind of a great deal, but it also depends on your priorities.
How will this benefit you?
If your priority is to get rid of your home or investment right away, then this may work out for you. Cash offers tend to be a quick and easy sale. Get your money and go!
What’s the draw back?
The downside to these offers, is you better get ready to give up a lot of your equity. Therefore, these offers will most likely come in at least 15% below the fair real estate market value. Even more so if the home needs repairs or if the condition of the home is no that great. Remember, its all a numbers game. No human emotion in the offer.
So, there you go, those are my 2 cents on this subject. I find it fascinating how artificial intelligence is becoming increasingly common in today’s world. Now computers are buying homes!
Categories: Real Estate Blog