AI will change real estate. Should we embrace it or brace for impact? This seminal piece by David Bluhm addresses the implications of AI
AI will change real estate—should we embrace it or brace for impact?
This seminal piece by Plunk Co-founder and President David Bluhm addresses the major implications and challenges of AI within the real estate ecosystem.
Most of the recent excitement over Artificial Intelligence has centered on generative AI, or more specifically the ability of a chat bot to generate informed responses to complex inputs. While AI’s capabilities have an obvious potential for automatically generating property descriptions and marketing content, improving ad targeting, and managing customer service responses, AI will play a much broader role across the residential real estate ecosystem.
"The application of AI will bring about many new changes, efficiencies, and opportunities across the housing industry.”
Plunk and Milestones join forces to reveal trillions of dollars in untapped property value
Plunk and Milestones.ai have partnered to provide AI-driven remodel advice to homeowners. Milestones has integrated Plunk Remodel Value and Project Recommendations into their Homeowner Management System. Plunk Remodel Value determines the expected value of a home subsequent to a full-scale renovation. Project Recommendations categorize renovation projects according to the estimated value they can add to a particular home.
Now homeowners can easily gain access to real-time valuation and remodel analysis regarding their largest investment, especially critical in a period of continually rising rates and with an aging housing market—keeping would-be buyers and sellers in their current homes.
"With Plunk, we are able to empower homeowners with data-driven financial guidance to increase the values of their homes over time."
How market dynamics determine the impact of remodeling on home values
Plunk’s Chief Economist Vince O’Neill examines and analyzes the impact of bump-outs on real estate value in five key markets
While rising interest rates and low inventory continue to put the brakes on real estate sales volume, remodeling and renovation activity is strong. For a homeowner sitting on a 3% mortgage rate and substantial equity, it just makes more financial sense to upgrade their current home rather than move out to move up.While livability is usually the determining factor in a decision to remodel, most homeowners also want to know that the cost is justified by a corresponding increase in value.
Bigger is better, but it also depends…
Most would agree that bigger is better when it comes to houses, and that expanding a small house is likely to generate greater value increase in percentage terms than the same addition to a larger house. But what about at the market level?
"Plunk has developed a system for simulating projects on an individual property and generating an estimate of the value change from that project—taking into consideration the specific attributes of the home and local market conditions.”
If you own or manage a real estate brokerage, you're constantly looking for ways to differentiate your brand from the marketplace and researching the most innovative tools to attract and retain agents, generate viable leads, and build customer loyalty.
Get to know Plunk and gain insight into the many ways your company can unlock its market power with the help of AI-powered and real-time property and local market analytics. Join us for this insightful Plunk explainer for brokers with Plunk’s Head of Sales, Scott Feldman.
If you’d prefer to meet in person, we can always find time at the next industry gathering! We're headed to The MLS Summit and Gathering of Eagles next.
The MLS/CLAW Technical Director Santanu Barua with Plunk Co-founder and CEO Brian Lent—iOi Summit 2022
Plunk Insider is for informational and educational purposes only, and in no way is any of the data contained herein to be construed as financial, investment, or legal advice.
