ARTIFICIAL INTELLIGENCE IN REAL ESTATE – The NEAR future

During our Luxury Real Estate event on January 17, our CEO Philip Weiser presented the integration of Artificial Intelligence in the luxury real estate market.

Discover the highlights of his presentation in his exclusive keynote. Immerse yourself in the experience of this event by watching the video here.

With advancements in AI and related technologies, we’re seeing a growing trend where buyers and sellers can access much of the information and tools they need online. Here are some key points to consider in this context:

1. Direct Access to Information: AI-powered platforms can provide detailed property information, market analysis, and even virtual property tours, reducing the need for intermediaries for information gathering.
2. Automated Valuation Models (AVMs): These tools use AI to assess property values based on extensive data, potentially reducing the need for real estate agents to perform valuations.
3. Digital Platforms for Buying/Selling: Online marketplaces and platforms are making it easier for buyers and sellers to connect directly, conduct virtual tours, and even complete transactions without the traditional involvement of real estate agents.
4. Increased Efficiency in Transactions: AI can streamline the buying and selling process, handling tasks like scheduling viewings, answering basic inquiries, and even assisting with paperwork, making transactions more efficient for both parties.
5. Impact on Traditional Agencies: As more buyers and sellers move towards these automated and digital platforms, traditional real estate agencies may see a decline in demand for their services. This could result in a reduction of traditional agency roles, or a shift in their focus towards providing more specialized, value-added services that cannot be easily replicated by AI.
6. Changing Role of Real Estate Professionals: Real estate agents may need to adapt by offering more consultative, personalized services that leverage their deep market knowledge, negotiation skills, and human empathy – aspects that are currently beyond the scope of AI.

In conclusion, the increasing capability of AI to facilitate real estate transactions directly between buyers and sellers could indeed reduce the reliance on intermediaries. This shift may lead to a transformation in the role of real estate agencies and professionals, emphasizing the need for them to adapt and find new ways to provide value in the real estate process.

SO :

AI may reduce the number of broker-mediated transactions, it won’t eliminate the need for real estate professionals entirely. Instead, it may shift the nature of their roles and the types of services they provide. What will be the nature of the roles and the types of services the agents will provide?

The advent of AI in the real estate sector is likely to transform the roles and services provided by real estate professionals, rather than rendering them obsolete.

Here are some ways in which their roles and services might evolve:

1. Consultative and Advisory Services: Agents may shift more towards a consultative role, providing expertise that AI cannot, such as offering personalized advice based on deep market knowledge, experience, and understanding of local real estate laws and regulations.
2. Negotiation and Mediation: AI can handle data and transactions, but the human element is crucial in negotiations. Agents can focus on negotiating deals, mediating between parties, and providing guidance on complex matters, leveraging their interpersonal skills and experience.
3. Specialization in Niche Markets: Agents might specialize in certain types of real estate (like luxury properties, commercial real estate, or specific geographical areas) where in-depth knowledge and personalized service are highly valued and less replicable by AI.
4. Property Management and Post-Sale Services: The focus might shift to services that are needed after a sale is completed, such as property management, renovations, or navigating local regulations for property changes.
5. Building Relationships and Networks: Real estate agents can concentrate on building and maintaining relationships with clients and within their professional networks, offering value through connections and personal interactions.
6. Technology Integration Expertise: Agents could become experts in utilizing AI tools and technologies to enhance the buying or selling experience for their clients, acting as a bridge between technology and the human aspects of real estate transactions.
7. Market Analysis and Insights: While AI can process vast amounts of data to provide market insights, real estate professionals can interpret this data in meaningful ways, providing context and nuanced market analysis that only comes with experience.
8. Customized Client Experience: Focusing on providing a tailored experience to clients, understanding their unique needs, preferences, and concerns, something that AI cannot fully replicate.
9. Educational Role: Educating clients about the market, the process of buying or selling, and what to expect in transactions, especially as AI and other technologies make certain aspects of the process more complex.
10. Ethical and Legal Guidance: Providing guidance on ethical considerations and legal compliance in real estate transactions, which is especially important in more complicated deals.

In summary, the integration of AI in real estate is likely to see agents and brokers moving towards roles that require more complex decision-making, emotional intelligence, personal interaction, and specialized expertise, which are areas where AI currently cannot compete with human capabilities.