Data science isn’t something that can be relegated to any one industry in today’s modern world. From custom tailoring target advertisements to machine learning and beyond, every industry is utilizing data to some degree. Some may think the real estate market is an unlikely candidate for data analysis and integration. However, Redfin begs to differ with its most recent announcement.
This week, the real estate giant announced findings from its survey conducted by independent research firm SSRS. Through evaluating over 5,000 homes, SSRS found Redfin to be head and shoulders above its competition, Zillow and Homes.com. Research showed that, through using Redfin Estimate, 64 percent of homes sold within 3 percent of the predicted Redfin price, whereas Zillow saw 29 percent and Homes.com saw 16 percent.
The software in question helping Redfin to predict home prices is its very own in-house tool, Redfin Estimate. This tool uses artificial intelligence to help pinpoint home prices prior to the sale date. Redfin’s data science executive, Adam Wiener, shared his thoughts on what sets its estimate tool apart and how artificial intelligence plays a role in it.
“Artificial intelligence is now being applied to the most fundamental questions in commerce, government and society, to make startlingly accurate predictions about global temperatures, stock-market prices, political movements and, for individual Americans, the value of their homes. And this is not like earlier victories for artificial intelligence, like beating a chess champion or winning at Jeopardy; it has supreme practical value for someone trying to make big decisions about what she can afford and where to live. What’s most compelling about these predictions is not just their practical value, but that they can be proven right or wrong. When Redfin or another application says a listing is worth $325,000, we don’t have to argue about who was right. We just have to wait for the final sale.”