realestatebusiness logo
Home of the REB Top 100 Agents

Does AI actually improve property sales?

By Orana Durney-Benson
17 November 2023 | 1 minute read
Angus Raine Christian Overaa REB zr3rll

Six years after one major network launched Australia’s first AI-powered property marketing tool, the group crunched the numbers to see whether it has actually made a difference.

In recent months, artificial intelligence (AI) has been seeing a surge of interest in the property world. Just in November alone, Propic unveiled an AI-powered communication platform called Claire, while RMG launched an AI-driven search engine.

But with 2.2 million Australians found to be “terrified” of AI and data security worries on the rise, it’s important that real estate groups make sure that AI is worth it before they take the plunge.

Recently, Raine & Horne revealed new data about the effectiveness of their AI sales technology, Amplify. Launched in 2017, Raine & Horne claimed that Amplify made them “the first real estate group in Australia to implement AI technology to sell and lease property”.

The platform works by sourcing data from Google, Facebook and Instagram to connect properties with the specific location and interests of potential audiences. It generates over 100 versions of the same property advertisement in order to tailor messages and images to specific demographics.

As an add-on tool, Raine & Horne customers pay a premium to market their property with Amplify. But does the data suggest that customers are getting bang for their buck?

In good news for tech enthusiasts, Raine & Horne reported that their AI technology has shown to markedly improve sale price and time on market.

Recently, the group analysed 6,900 residential property sales that occurred from January 2022 to December 2022. According to Raine & Horne’s findings, properties that were marketed with Amplify sold on average for $36,980 more than properties that opted out.

Time on market was nine days shorter on average for vendors who used Amplify, and sale success rate was 10 per cent higher, with 73.5 per cent of Amplify campaigns ending with a sale versus 63.5 per cent without it.

“The success of Amplify speaks for itself,” said network chairman Angus Raine. “We have seen firsthand how this technology has transformed the way we market properties, and we are excited to continue pushing the boundaries in the real estate industry.”

According to Mr Raine, the power of AI lies in its ability to personalise property listings for specific audience demographics. He explained: “By using AI, we can match properties with the right potential buyers by displaying geo-targeted advertisements while they’re searching online or scrolling on social media.

“Amplify takes the guesswork out of property marketing,” he concluded.

Does AI actually improve property sales?
Angus Raine Christian Overaa REB zr3rll
lawyersweekly logo
You need to be a member to post comments. Become a member for free today!

Comments powered by CComment

Do you have an industry update?