AI is revolutionizing real estate making it easier than ever to identify, value, acquire, and sell brick and mortar properties. But land development is a unique niche.
Learn more about the state of AI in this category and the need to develop human-driven skills when identifying raw land with development potential.
The world of real estate is rapidly evolving, and outdated methods like yard signs and billboards are no longer enough to keep up with the competition and effectively scale your business. As in all sectors, technology is playing a pivotal role in transforming the industry. One of the most significant technological advancements for individual real estate investors is the use of Artificial Intelligence (AI) to identify and value prospective properties. But this is not true for individual investors in all subsectors of real estate.
In this blog, we will look at AI’s capabilities for brick and mortar real estate sectors and discuss why, in land development, human-driven prospecting is still the dominant “technology.”
AI in (Most) Real Estate: A Game-Changer
AI has revolutionized the real estate sector in numerous ways, offering a plethora of benefits to both buyers and sellers of brick and mortar structures, whether they be residential, commercial, or industrial. These benefits include increased speed and accuracy in the following areas:
AI algorithms analyze vast amounts of data to predict real estate market trends, providing valuable insights for investors, buyers, and sellers. This predictive analytics helps in making informed decisions, reducing risks, and maximizing returns on investments.
AI-driven tools can accurately estimate property values, factoring in a wide range of variables such as location, market demand, property features, and historical data. This ensures fair and competitive pricing for both buyers and sellers.
Virtual Tours and 3D Visualization
Virtual reality (VR) and AI-powered 3D visualization tools allow potential buyers to take virtual tours of properties, saving time and effort for all parties involved. It provides a realistic experience without the need for physical visits.
Chatbots and Virtual Assistants
AI-driven chatbots and virtual assistants are becoming increasingly common in the real estate sector. They handle inquiries, schedule viewings, and provide valuable information to potential clients, enhancing the overall customer experience.
AI systems can provide real-time market insights, helping real estate professionals stay updated on changing market conditions and opportunities.
AI algorithms make property searching more efficient by understanding user preferences and presenting the most relevant listings. This simplifies the buying process and ensures a better match between properties and buyers.
AI tools can evaluate the risks associated with real estate investments, such as potential property issues, legal matters, and market volatility. This helps investors make informed decisions to mitigate risks.
Yet, despite all these benefits and in contrast to other real estate sectors, AI is not a prevalent tool in land development. Why? In short, the companies that develop AI platforms see limited demand from individual consumers. While B2C versions are rolling out (Reonomy, LandVision, Property Radar), tech companies see no scale in the niche market of individual prospectors, so-called “dirt dogs.” While this may be a disappointing current reality, it speaks to the incredible low-competition, high rewards niche that raw land development represents, especially in this unprecedented housing crisis.
In time, the current B2C AI technology will be made available to individual users. In the meantime, learning the human-driven skills for identifying land will prepare such people to exploit AI once it is rolled out.
The Human Touch: Prospecting for Raw Land Potential
Here are five critical approaches for prospecting raw land that we teach in our VestRight course:
Scan Zoning Maps
Zoning maps provide essential information about the permissible land uses in a particular area. We teach you how to thoroughly examine these maps to understand the zoning regulations and potential for development. Zoning codes vary from one location to another, and it's crucial to navigate through them effectively.
Farming with Title Company Data
Title company data contains valuable information about property ownership, liens, and other legal details. We teach you how to “farm” this data, which means systematically collecting and analyzing it to identify landowners, assess property histories, and gauge potential opportunities for development.
Scanning Aerials on Google Satellite View
Aerial imagery available through platforms like Google Satellite View can reveal topographical features, neighboring developments, and potential land characteristics that might not be evident from ground-level data. We’ll teach you how to tap their value.
Following Projects in Action by Other Developers
Following the progress of similar projects in the same region can help prospectors understand market demand, local dynamics, and development opportunities. We’ll teach you how to watch the market.
Following City Newsletters and Attending City Meetings
Sounds boring, but these data points provide information on upcoming zoning changes, land development plans, and other crucial updates. We’ll show you how to informed about local government decisions and regulations that can significantly impact the development potential of land.
While AI can’t help you initially identify off-market raw land with potential, we’ve developed a tool that can help you quantify a lot’s potential value, our Raw Land Profit Calculator. You won’t find this proprietary tool anywhere else, so check it out now and discover how you can earn six- and seven-figure paydays.