Chat GPT has taken the world by storm, and for good reason. AI has the potential to disrupt various industries so naturally, you may be wondering whether it will disrupt the largest asset class in the world – real estate.
While it’s unlikely that AI will completely replace real estate agents, it can certainly augment their roles and change the way they work. Here are a few ways AI may impact the real estate industry:
Data analysis
AI algorithms can analyze vast amounts of real estate data, including property listings, market trends, and historical sales data. Ever heard of the Zillow Estimate – Zestimate? While it has been known to be completely off, it can give homeowners a general idea of what their property is potentially worth.
These estimates are based on comps and are automated and calculated by machines. You don’t actually think that Zillow knows that you updated your kitchen and bathrooms or that your basement is full of mold, do you?
That’s why it’s important to add the human touch of a real estate agent to help you properly determine what your home may be worth.
In Person property search and matching
AI-powered platforms, like Zillow or Realtor.com, can assist buyers in finding suitable properties based on their preferences and requirements. By leveraging machine learning algorithms, these platforms can learn from user interactions and provide personalized recommendations.
Let’s be honest, many buyers see the home they like before the agent does. But setting up the showing, getting a feel for the neighborhood, the listing agent, seller etc…Requires a human touch.
Virtual property tours
Virtual reality (VR) and augmented reality (AR) technologies can enable immersive property tours from the comfort of one’s home. This can save time for both buyers and agents, allowing them to narrow down options before visiting properties physically.
Customer service and chatbots
AI-powered chatbots can handle routine inquiries, provide property information, and answer frequently asked questions. They can offer 24/7 availability and assist multiple clients simultaneously, enhancing customer service because, honestly, most agents don’t have time to answer every single question a first time buyer may ask.
Last Word
However, real estate transactions involve complex negotiations, legal considerations, and personal interactions, which may require human expertise and judgment. Real estate agents provide value through their market knowledge, negotiation skills, and guidance throughout the buying or selling process.
While AI can enhance their efficiency and effectiveness, it is more likely to act as a tool to support real estate professionals rather than replace them entirely.
AI won’t know that the house you just saw has 5 other offers above asking price so you’re unlikely to be able to submit an offer below listing price. Conversely, AI doesn’t know that the listing agent and seller are desperate to sell their home and will very likely accept an offer below asking price.
Humans and technology go hand in hand and AI is no different. It is meant to assist us, not replace us. Yet :)