From virtual home walk-throughs that shorten the buying process to the ability to predict your home’s value from your smartphone, artificial intelligence – or AI – is becoming increasingly entwined with real estate. But does that mean real estate agents need to worry about artificial intelligence taking their jobs?
The short answer is no.
In fact, according to a recent article from CNBC, the advancement of AI in real estate may be a “game changer” for real estate agents, which is likely to lead to higher client satisfaction.
How AI Can Benefit Real Estate Agents
In the high-stakes world of real estate, keeping up with the latest technology is key to staying ahead of the curve. Here, we delve into six game-changing ways AI is revolutionizing the industry. From streamlining communication to up-leveling how agents can showcase properties, these AI-powered solutions empower agents to deliver exceptional service and drive success in a competitive market.
1. Organizing and finding real estate documents
Until very recently, finding real estate data like land records, title documents, purchase prices, and mortgage liens meant spending hours pouring through documents at local courthouses and offices. The process could take weeks or even months and was highly subject to human error.
Now?
Computer algorithms are able to search millions of documents with the push of a button — effectively completing those weeks or months of tedious work in just a few seconds. The result is less waiting time for the client and a higher level of accuracy. In other words, it’s a win-win.
2. Finding homes that are most likely to sell in the next 12 months
After a year of ultra-low inventory, it should be music to any real estate agent’s ears to know that door-knocking isn’t the only way to find out if a home is about to go up for sale.
In a CNBC article, chief technology officer Joseph Sirosh of Compass commented, “The traditional agent would go knock on the doors of a lot of homes. Now AI helps you find the homes that are most likely to sell in the next 12 months, and it does so by triangulating all the data associated with the home, like when the home last sold, how long the owner has occupied the home, [and] what rate the home sells at in that particular area.”
This data gives agents a 94% higher chance of winning a potential listing they target with AI than not and helps them to price the home more accurately.
3. Finding the perfect loan
With the help of AI, buyers can easily find the perfect loan type for their financial situation and even find the right investor for the loan. In CNBC’s article, Karl Jacob, CEO of LoanSnap, says the AI system takes all of the borrower’s financial information and forecasts it to look at “thousands and thousands and thousands of options.”
While we’re still a ways away from AI completely revamping the mortgage industry, the ability to use it during some steps of the data collection stage can seriously speed up the process for borrowers who are eager to get approved for a home loan.
4. Generating personalized responses for better customer engagement
Creating meaningful connections with clients is everything in real estate. Thanks to AI, agents can now create personalized responses that match individual needs. Whether it’s answering specific questions or guiding potential buyers, these AI tools make communication smoother, enhancing the overall customer experience and building lasting relationships.
By utilizing AI, agents can ensure that each interaction is tailored to the client’s preferences, leading to increased satisfaction, loyalty, and, hopefully, referrals. This personalized approach not only sets agents apart in a competitive market but also fosters trust and rapport with clients.
5. Creating virtual tours and 3D renderings
Captivating visuals are vital for attracting buyers in real estate. With AI technology, agents can showcase properties through immersive virtual tours and lifelike 3D renderings. They offer interactive experiences that let clients explore homes remotely, saving time and helping them make better decisions from the comfort of their homes.
These innovative tools enhance the buying experience and demonstrate an agent’s commitment to leveraging cutting-edge technology to provide the best possible service.
By embracing AI to showcase properties, agents can stand out in a crowded market and attract buyers seeking immersive, high-tech experiences.
6. Creating marketing collateral
AI tools are changing the marketing game by automating tasks and suggesting content ideas.
From crafting engaging listing descriptions to designing banners and newsletters, agents can efficiently create high-quality, eye-catching materials. This leaves them more time to focus on nurturing client relationships and growing their business.
With AI, agents can streamline their workflows and produce professional-grade materials that can effectively engage their target audience. Leaning into AI and helpful technology can enhance brand image and drive lead generation.
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Sources:
DianaOlick. “Artificial Intelligence Is Taking over Real Estate – Here’s What That Means for Homebuyers.” CNBC, September 17, 2021.
Kiderlin, Sophie. “Here Are the Biggest Reasons Jobs Could Disappear – and A.I. Isn’t One of Them.” CNBC, July 20, 2023.
