Genesis NGN developed an AI-based system for a real estate company that significantly improved inventory turnover, reduced costs, and increased profitability.
The Client
Our client is a US-based real estate company. The company specializes in buying, renovating, and selling residential properties. They have a portfolio of properties that they manage and maintain. In order to expand their portfolio, they are always searching for properties in good locations at reasonable prices.
The Challenge
Inventory turnover was one of the biggest challenges they were facing. Due to slow sales, the company was spending money on renovations and other expenses on properties that were taking a long time to sell. Tied-up capital in unsold properties reduces the company’s ability to invest and purchase new properties. The slow turnover of inventory also negatively impacts their profitability. This slow turnover of inventory was caused by a lack of data-driven insights into the local real estate market and the time taken in identifying potential buyers.
Solution
To improve the inventory turnover of the company, the Genesis NGN team developed a system that is backed by AI and uses machine learning algorithms to analyze data and generate valuable insights. By using APIs, the AI system collects data related to property from different websites and also from the company’s own database. The system analyzes a property listing, previous sales records, location, recent sales records of properties nearby, renovation costs, vacancy rate, neighborhood, staging effort, miscellaneous costs, owner details, etc. to provide them with detailed information about properties.
With the help of the system, the company is able to gain valuable insight into the local real estate market. The system also helps them identify the best properties that are likely to sell and do not require too much effort or investment in staging or marketing.
The system also comes with a potential buyer identification module that scouts through the existing database of the company to identify buyers who have purchased similar properties in the past. This greatly helped them reach out to potential buyers quickly.
Results
- Inventory turnover improved significantly
- Properties sold more quickly
- The profitability of the company increased
- Improved decision-making in property purchase
- Improved capital flow and a reduction in capital lock-up
