Some experts think that artificial intelligence (AI) will eventually eliminate the need for real estate agents altogether. It’s a compelling argument; artificial intelligence (AI) has proved itself adept in scanning listings and data, predictive analytics, virtual staging, virtual tours, customer relationship management, valuation models, and creating legal documentation.
But all real estate professionals know that the journey from lead generation to popping champagne when a deal is closed is rarely smooth. When buyers and sellers act predictably and rationally, data and algorithms can run the show. Until then, human oversight is required. In fact, the combination of AI technology and human savvy makes the perfect partnership.
Here’s a look at some of the components of real estate business best left to AI and some that only a body with a pulse can handle.
AI In a Perfect World
Data collectors and data providers provide seemingly limitless insights into consumer preferences, properties, locations, and economics. These data sets help real estate professionals meet the needs of clients and help to close deals. A report from the National Association of Homebuilders, “What Home Buyers Really Want” is an illustrative example of data available on homeowner preferences.
According to the report, 32 percent of homebuyers prefer a traditional home while 14 percent prefer a modern home, 85 percent of homebuyers want an open arrangement between the kitchen and the dining room, and 63 percent of buyers think the washer and dryer belong on the first floor.
From opinions on wine cellars to pet washing stations to data on local weather, schools, crime, and employment, the information available from data providers is growing exponentially. And that’s just the data. The AI-driven solutions that parse this data, analyze it, and create reports and analytics are constantly being created. AI is advancing so fast that it’s not a stretch to see real estate platforms automatically generating mortgage, insurance, finance, and legal documents so that the whole property buying process occurs online.
But it is a stretch to think that AI can run the show from start to finish without human intervention. The theory overlooks one important element: the human condition. The human condition dictates that humans rarely act predictably and rationally, and rationality and predictability are what AI relies on.
Buyer Motivation in the Real World
All buyers have their likes and dislikes when it comes to property. The problem is that they often don’t know what these are, and an AI bot certainly will not be able to discern it for them.
Sources show that a buyer’s motivation to buy a home is linked closely to their aspirations. The buyer often has a set idea in their head of the lifestyle they want to live, and the home they ultimately choose must fit that nebulous concept. Also, when a human decision involves money, it often becomes emotional and irrational, just ask any day trader. Buying a home, however you look at it, is a life-changing event.
Sean Hess is the owner and principal real estate investment consultant for SA Realty in St. Augustine, Florida. On Quora, he describes some of the hurdles he faces when dealing with prospective clients and where only human intuition can steer the path toward a successful deal.
“The first thing almost every buyer asks when they sign a purchase agreement for a home is, “How do I get my money back if…”
When these words are uttered, Sean knows that a buyer is highly likely to back out of the agreement before they’ve even made the offer. Knowing this can help Sean either get stronger commitment from the buyer or not waste everyone’s time pursuing a deal that will go nowhere.
ChatGPT, on the other hand, doesn’t see this nuance. According to the AI wizard,
“If a buyer signs a purchase agreement for a home and asks, ‘How do I get my money back if…” they are likely seeking clarification on the conditions under which they can recover their earnest money deposit.”
Here’s another situation described by Sean that might be a problem for AI.
“At a home inspection one of my partners attended, he opened the door to find a man with a gun drawn. The seller hadn’t bothered to inform the tenant (with the gun) that people were coming over that morning, and the tenant, thinking someone was breaking in, grabbed his gun.”
Now, AI can parse neighborhood crime data to determine how dangerous an area is. The point here is that the home-selling process rarely advances smoothly with one-size-fits-all solutions, and AI is not equipped to figure out the foibles of the human condition.
That said, AI is perfectly adept at other, more systematic tasks. These, when combined with the real estate professional’s unique patience and understanding of human irrationality, create the perfect real estate partnership.
AI-Powered Real Estate Tools that Create the Perfect Partnership
For savvy real estate professionals, a vast array of AI-powered solutions and tools can help them up their property game. For example, AI-driven lead generation, parsing data, predictive analytics, virtual staging, virtual tours, CRM, valuation models, and website chatbots are all ways to improve the customer experience and boost business.
Here’s a sampling of AI tools that do just that.
- Beautiful.AI
Beautiful.AI is the perfect tool for creating presentations or any type of report, from sales proposals to competitor analyses. It makes Microsoft PowerPoint seem positively pedestrian and archaic. This tool offers extensive templates to which you can add the notes and content that you recorded using Presence Copilot, for example (see number 5). The tool will design your content for you for maximum impact.
- ChatGPT
Despite our earlier maligning of this advanced source of information and data, ChatGPT is a perfect tool real estate professionals can use to craft marketing content, draft emails, and help with strategic thinking or market research.
- Descript
If you aren’t confident in your narration skills, Descript will step in and do voiceovers for your virtual tours, listing videos, or other marketing content. It learns the sound of your voice and speaking style and creates professional voiceovers consistent with your brand and personality.
- Opus
Video content is a must for property marketing. This tool will take your videos and transform them into bite-sized clips for social media. Use the voiceovers from Descript, and you’re good to go! This tool also has built-in search engine optimization (SEO) to improve your chances of being found by search engines. It will add professionalism to your posts, build your brand, and boost your visibility.
- Presence CopilotTM
Although not live yet, in a sneak preview, Presence Copilot promises to perform as your virtual personal assistant reminding you of client appointments, managing your contacts and calendar, recording and transcribing voice notes in seconds, and providing listing summaries and AI-sourced answers to client questions.
- Virtual Staging AI
This amazing tool allows real estate professionals to stage properties virtually. But it also allows them to change the staging based on the buyer’s preferences. Instantly change the look of a property to show its potential and how it can fit into your client’s dream lifestyle.
Other AI tools ideal for real estate professionals include Canva, which creates compelling brochures, social media posts, and property listings and Dall-E-2, which creates images based on text and functions as a graphic designer to show a neighborhood map or a simple sketch of a house.
Data Technology and the Human Element – The Perfect Partnership
Most of these AI tools focus on the marketing component of real estate business. That’s not a mistake because it’s where AI’s core competency lies. AI can help real estate agents find leads, quickly and easily produce professional reports and documents, and optimize their time management, but only live agents have the skills to understand the client’s emotional needs and ultimately close deals.
ATTOM data can power your technology with the most up-to-date data and AI-ready data solutions. Talk to an expert today and find out what this data warehouse and platform can do for your real estate business.
