PropTech company Reali is transforming the home-buying and selling process by releasing a new AI-powered tool that predicts the probability of placing a winning offer on a property. Dubbed the PricePredictor, it reduces the amount of guessing required to determine a home's selling price and provides buyers the estimated probability of what a home will sell for from a range of bids.
One of the biggest frustrations buyers face is determining the true selling price of a home. Reali's PricePredictor goes a step further than existing tools that estimate a home's value to predict its actual selling price. For example, homes in the Bay Area are often intentionally underpriced to spark bidding wars and buyers are often outbid even when placing offers over the asking price. It's a painful process and many home buyers have placed multiple offers without success. In these cases, the PricePredictor helps predict the true selling price of the home and shows buyers how much over the asking price they should offer. Outside the Bay Area, where pricing is more transparent, the PricePredictor helps buyers save money by showing them how close to the listing price they could get without overbidding.
The PricePredictor picks up where competitor estimator tools leave off. Reali's AI team designed the tool to give buyers an intelligent way of looking at a home's ultimate selling price where traditional estimators focus on leveraging information for sellers and offer one static number. It's also an interactive experience. Buyers launch the feature from within the Reali app and use the percent slider to see a range of suggested offer prices based on their willingness to assume risk above or below a home's listing price.
"We want our customers to maximize their chances of a successful offer," said Amit Haller, Reali CEO. "The more you know about the home's predicted selling price, the better off you'll be in making an optimized offer. There are many apps and tools for home discovery or to determine the value of a home. But with the Reali app, buyers get AI-powered price predictions backed up with licensed Reali Experts to boost their efficiency and chances of a successful home-buying journey."
Though in its early stages the PricePredictor has already seen successful outcomes. Recently, a Reali buyer in San Jose made an offer on a home listed for $949,000. The buyer's offer won at the 98% PricePredicted price of $1,080,000.
The PricePredictor is the first of many AI-powered tools Reali's global data science team is building to help home buyers and sellers time and money. The Reali AI team of 10 developers, data scientists, and product managers developed the machine-learning based model that offers up probabilities of winning a home at various offer prices via the Reali app earlier this year. The same way a weather forecaster might tell you there's a 20% chance of rain tomorrow, the PricePredictor model might estimate you have a 95% chance of winning this home if you offer $1,100,000. The machine will continuously re-evaluate and update the models and gets smarter over time. The PricePredictor takes into account over 200 attributes of a home pulled from the MLS, historical data, and human insight from Reali Experts, and gets smarter over time.
A fourth of Reali users have already tried out the PricePredictor which had been secretly launched in the Bay Area first to collect user behavior data. The amount is expected to rise as the tool is officially launched in cities where Reali operations, including the Bay Area, Sacramento, and San Diego. PricePredictor is shown on listings on the Reali app and appears when the model predicts the accuracy to be over the 90% threshold.
Edited by V. Haviland
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