You came to the right place if you have wondered how AI can benefit your real estate marketing efforts.
New AI tools you can use are currently popping up by the day. However, using AI just for the sake of using it is not the best idea, as you will later read toward the end of today’s article.
Much depends on how well you implement them into your real estate marketing business processes.
So in today’s article, I will discuss…
- What to expect from AI in real estate marketing (the benefits)
- Using AI to present the “product” (property) you sell to attract buyers and satisfy sellers
- Leveraging AI to find the sweet spot in property pricing
- AI for real estate lead generation (promotion)
- How to implement AI tools for your real estate marketing
What to Expect from AI in Real Estate Marketing: The Benefits
Before I discuss what you can expect from AI in real estate marketing, we first need to get on one page regarding the different real estate marketing areas.
Because based on the knowledge about the different areas, we can better categorize the areas of real estate marketing where AI can be used.
Many see marketing as a synonym for “promotion.” However, in the evergreen and classical sense, that’s plain wrong.
The classic four areas of marketing are the so-called “4 Ps of marketing,” no matter what industry you are in.
It is Product, Price, Place, and Promotion and goes back to the 1960s, first introduced by E. Jerome McCarthy.
There are also extended variations of the classical marketing mix with 7 Ps or even 8Ps. But for the sake of simplicity, let’s stay with the classical four.
“Product” in real estate marketing are the properties you want to market (e.g., single-family homes, apartments, etc.). It’s the question of how you want to present the property you sell so that it attracts buyers and satisfies the sellers.
“Price” in real estate marketing is self-explanatory. It refers to the right price for the property you have to determine (e.g., doing accurate property valuations, etc.).
“Promotion” in real estate marketing is where many focus on and include all types of real estate lead generation tactics), such as direct mail, content marketing, etc.
It’s also the question about your marketing message and communication (e.g., sales copy and message market fit)
And finally, “Place” in real estate marketing involves using the proper marketing channels to distribute your message to your target audience ( buyers or sellers).
But it not only refers to where the property is marketed (the marketing channels) but also where it is distributed (e.g., the neighborhood, location)
Getting back to what you can expect from AI in real estate marketing.
Machine learning is already applied in all four areas. There is AI that can enhance your product (the property), such as with AI-generated 3D virtual tours or virtual staging.
Regarding price, there are AI solutions on the market helping you make accurate and quicker property valuations.
Regarding promotion, AI-powered chatbots, and virtual assistants can handle simple inquiries.
And in the real estate marketing area of “place,” you can use AI solutions to better analyze market trends and behavior patterns to, on the one hand, make better decisions regarding where you market or which marketing channel to use to reach your ideal clients, but also analyzing local market data about neighborhoods.
Using AI to Present The “Product” (Property) You Sell to Attract Buyers and Satisfy Sellers
AI can support the workflow from your first property visit to producing offline and online marketing materials, such as property listing pages, brochures, and flyers.
For instance, using the proper prompts in Chat GPT, AI can generate persuasive property listing descriptions in a few minutes.
To different degrees, drones taking photos from above already use artificial intelligence for navigation (source).
You can have AI generate a 3D virtual tour from photos you take of the property’s interior.
Or you can enhance them with various AI tools, such as Midjourney.
And if the seller can’t or doesn’t want to do home staging, you can do it virtually with, for example, this software.
If you recorded videos from the interior, you can edit them faster with the AI integrated into Adobe Premiere Pro.
As you can see, for many, if not almost all, of the different workflow steps of presenting a property you want to sell to attract buyers and satisfy sellers, you can already find support from various AI solutions.
Leveraging AI to Find the Sweet Spot in Property Pricing
This section refers to the “Price” in the four Ps of (real estate marketing) and how you can leverage AI to optimize property pricing.
When AI is used in this area, it often uses one of several of the following models:
- Automated valuation models (AVMs)
- Dynamic pricing
- Predictive analysis
- Price optimization
- Competitive pricing analysis
The automated valuation models combine data analytics with machine learning algorithms to estimate a property’s value.
It uses several factors: comparable sales, property characteristics, and market trends.
The next model used for AI for property valuations is dynamic pricing, which can adjust property prices in real-time.
It does this by finding changes in market demand, supply, and other factors such as time of year and property condition.
Predictive analytics is another model used.
They can analyze historical data and identify patterns affecting property pricing: interest rates, seasonal trends, and economic indicators.
Then we have price optimization.
An AI-powered price optimization tool can analyze many different data points (e.g., location, property features, market trends) and, based on that, recommend the optimal price point for a particular property.
And finally, there is a competitive pricing analysis.
AI tools can use this model to analyze your competitors’ pricing strategies (more relevant for developers), identify market gaps, and adjust pricing strategies based on this information.
These are six platforms using AI for property valuations:
AI for Real Estate Lead Generation (Promotion)
I have to disappoint you. I haven’t found an AI solution yet, where you can click one button, and then high-quality leads come dripping in.
However, various AI providers offer solutions for some real estate lead generation elements. So it’s AI specialized in one or a handful of tasks.
First, AI-powered advertising platforms use machine learning algorithms to target the right audience and optimize ad campaigns to generate the best results. You may already be using them without knowing they are using AI.
In the current ad platform market, it’s almost standard to use AI to offer decent audience targeting options to their users.
Then we have AI-powered chatbots you can use to engage with potential sellers and buyers and answer questions about a particular property or your services.
Some can also schedule viewings and follow up with interested seller or buyer prospects.
If you are an attentive reader, you may notice that I already mentioned this in the section about where AI can help with the “product” part of the 3Ps of real estate marketing.
It’s because there is an overlap. On the one hand, it helps, of course, to improve the product (the property) presentation. Still, on the other hand, it also helps to generate leads.
Because being able to enhance the presentation of the property for sale will likely increase lead conversion rates.
It helps potential buyers visualize themselves living in the space and increase interest in the property.
The following fields of AI in real estate lead generation fall more into the segment of conversion optimization, which significantly ties into lead generation.
Why? Because for real estate lead generation to happen, two things must fall together: eyeballs on what you offer (traffic) and eyeballs taking action (conversion).
Earlier, you learned about AI-powered predictive analytics in “Pricing” The same model can also be applied to behavior.
So, for instance, these AI models can analyze buyer behavior, preferences, and demographics data and predict which properties are most likely to sell and at what price.
One such provider using predictive analytics is SmartZip.
You can also use it to improve your message market fit and create personalized marketing messages.
Receptivity, for example, is an AI-powered software that can analyze people’s language and gain insights into their psychology, personality, and emotions.
Finally, another real estate lead generation area where AI can help you is in real estate content marketing, especially in content ideation and creation.
Many AI tools can assist you in producing articles (blog posts), videos, and images, such as:
- Wordsmith (text)
- Articoolo (text)
- Copy.ai (text)
- Writesonic (text)
- Shortly.ai (text)
- OpenAI’s Chat GPT (text)
- Hotpot.ai (image)
- Canva’s Image Generator (image)
- DALLE-E2 (image)
- Midjourney (image)
- Pictory (video)
- Deepbrain AI (video)
- Synthesia (video)
- Synthesys (video)
How to Implement AI Tools for Your Real Estate Marketing
A while back, I wrote an article about how you can automate your real estate business.
And there is little difference in how you implement AI tools for your real estate marketing and the question about how you automate your real estate business.
The principles are basically the same.
To implement AI tools in your real estate marketing, it’s important to first identify your business processes in this area.
Mind maps can be a helpful tool for listing them all out and categorizing them.
Once you’ve done that, identify which processes can be automated using software or tools.
Time consumption is a good indicator; you could order these tasks and business processes you identify based on that.
Next, research and find the most suitable AI tools or software to automate these processes.
Many AI tools are available for real estate marketing, so research is important to find the right one for your goals.
Look for tools designed specifically for the real estate industry with features that align with your goals.
Once you find some “candidates,” you want to test and implement these tools gradually, improving the processes as you go along.
For those real estate marketing tasks where AI is not viable, consider whether they can be delegated to a human.
In addition to some AI tools not covering a use case, you have to deal with a different constraint: your budget.
So you also want to select the tools fitting within your budget.
In this context, it also helps to prioritize from important to less important AI tools.
What do I mean by that?
You may identify a pretty time-consuming real estate marketing task or business process, so the AI tool that can help you with that and save you the most time would be the most important one.
By prioritizing, you can use a limited budget to only select one tool (the one that saves you the most time).
Once you have identified one or more AI real estate marketing tools, you want to train yourself or your team on them and implement them into your real estate business processes.
You must also monitor the results you may get with the AI tool and adjust as needed.
So you want to keep an eye on your key performance indicators, measure how much time the particular AI tool is really saving you, but also the quality of the results (e.g., if you only get crappy articles with hallucinated facts and you spend more time editing than writing them yourself).
For the real estate marketing tasks that only can be delegated because there is no viable AI tool available, you want to create an operations manual for each process you delegate and gradually find and test employees or freelancers for handling the tasks you defined in the manual.
Finally, identify any remaining business operations that can’t be automated or delegated and tackle them yourself.
This article has been reviewed by our editorial team. It has been approved for publication in accordance with our editorial policy.
- Real Estate Leads Pay at Closing vs. Relocation Deals - October 7, 2023
- Pay at Closing Real Estate Leads vs. Upfront Payments - October 6, 2023
- Real Estate Leads Pay at Closing vs. Partnerships - October 5, 2023