Artificial Intelligence: Squarefeet.AI Is Setting Real Estate Prices In Montreal
Squarefeet.ai, a Montreal startup, uses artificial intelligence for pricing of residential property.
Squarefeet.ai uses artificial intelligence (AI) to optimize the unit pricing of new residential condo or rental projects, ensuring developers obtain the highest potential revenue. Its algorithm-based platform enables property developers and brokers to price properties on a rational basis rather than using “gut-feel” and “experience.” (Montreal Gazette)
Down-the-line, after the initial pricing, developers will benefit from the platform’s real-time demand analytics. The algorithm will take into account incoming data and recommend price adjustments. All this helps the developers to maximize their revenue and profitability.
The platform can manage several properties for clients simultaneously.
Squarefeet.ai – market research and pricing
Brothers Mark and Jordan Owen, and their friends Sean Tasse and Benoit Thibeault hit upon the idea to create a more reliable way to price properties coming on the market for sale or rental. The Owens knew from their experience in real estate that property market participants mostly relied on instinct to set prices.
“It was never systematic,” said Mark Own to the Gazette. “It was really what we could call a gut feeling or experience-based pricing.”
“We found that it was hard to make sure you were getting full value for each unit.”
The brothers decided to address the “huge inefficiencies” in the market as well as the pain to manually set pricing and then monitor the price lists.
The platform has already attracted a dozen clients since its launch in September. It now covers about 5,000 units in Quebec.
Past project analysis
Squarefeet.ai also analyzes past projects to determine for clients:
- What design attributes appealed most to buyers
- Insight on how the sales team set the prices
- Feedback on what design attributes should have been included
Jordan Owen says their idea met with an appreciative response and was easy to sell. “It’s a pretty easy foot in the door because we add value day one, and it’s not very expensive for people to get on board.”
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