{"id":16803,"date":"2022-08-11T06:50:00","date_gmt":"2022-08-11T11:50:00","guid":{"rendered":"https:\/\/theamericangenius.com\/housing\/?p=16803"},"modified":"2022-08-11T01:20:11","modified_gmt":"2022-08-11T06:20:11","slug":"realtors-should-be-using-ai","status":"publish","type":"post","link":"https:\/\/theamericangenius.com\/housing\/real-estate-tech\/realtors-should-be-using-ai\/","title":{"rendered":"Why you should be using AI as a real estate agent or brokerage"},"content":{"rendered":"

Artificial intelligence is everywhere, but it\u2019s more than just for real estate \u2013 it\u2019s poised to reshape the entire industry<\/a>. To stay relevant, Realtors, brokerages, and agents need to know how to use AI to their advantage and understand how it\u2019s empowering consumers.<\/p>\n

So, let\u2019s break it down. What, exactly, can AI do for real estate pros?<\/em><\/p>\n

\u201cAI can be a complete game changer and give you an edge against your competition,\u201d David Conroy, director of Emerging Technology for the National Association of Realtors, said at November\u2019s 2020 REALTORS Conference & Expo<\/a>.<\/p>\n

That competitive edge can come from using Big Data to work smarter: being more efficient + closing transactions more quickly + cutting costs + marketing more strategically = more happy clients and more money for agents.<\/p>\n

The term \u201cBig Data\u201d can be intimidating to non-techies, but don\u2019t worry. No one needs to add \u201cdata scientist\u201d to their LinkedIn profile. But even as venture capital is pouring into proptech startups, the real estate industry as a whole still seems to be lagging.<\/p>\n

Actual data scientist Julianne Heller of NAR says some companies think it will be too costly and take too much work. They don\u2019t understand or trust it. There\u2019s also a fear that AI could replace people and cut jobs.<\/p>\n

\u201cAI does not equate to replacement, but it supports human work and makes our lives easier,\u201d Heller said at the National Association of Realtors\u2019 conference<\/a>. \u201cAI can improve the buyer and seller experience.\u201d<\/p><\/blockquote>\n

What AI is<\/strong><\/p>\n

To put it simply, artificial intelligence<\/a> is what lets Amazon\u2019s Alexa talk to you and cars drive themselves. Its algorithms use data to mimic human intelligence, including learning and reasoning. Then there\u2019s machine learning<\/a>, where algorithms analyze enormous amounts of data to make predictions and assist with decision making. We\u2019re putting them both under the same AI umbrella.<\/p>\n

What AI can do<\/strong><\/p>\n

As AI continues to learn and evolve, the benefits for real estate professionals and consumers are getting easier to see.<\/p>\n

Access to data lets consumers feel more in control.<\/strong> Researching properties on sites like Zillow<\/a> and Trulia<\/a> lets consumers feel like they can make smarter decisions. Now marketplace sites are using AI to better understand consumer preferences to improve their search experience. On sites like HomeLight<\/a>, AI lets buyers and sellers find agents with specific experience who are likely to make them or save them the most money.<\/p>\n

More nuanced pricing is more accurate.<\/strong> The incredible number of data points lets agents go beyond pulling the usual three comps from MLS. By analyzing past data, AI can put a value on things like proximity to Starbucks, local Yelp reviews, and what buyers with similar preferences have paid for similar properties. It\u2019s AI that lets Zillow\u2019s Zestimates “read” listing photos<\/a>, identify features like granite countertops and adjust pricing based on the value they add.<\/p>\n

Buyers get better matches with potential homes.<\/strong> AI can go beyond the usual filters and tap preferences of similar buyers to narrow potential candidates or expand the search area. Zeroing in on the closest-to-perfect properties saves time and money and lowers clients\u2019 stress as transactions close more quickly.<\/p>\n

Chatbots offer 24\/7 communication between clients and agents.<\/strong> A client who just thought of a quick question before bedtime might be able to get an answer while her agent is sleeping peacefully. Consumers can also get answers to common questions about topics like property tax valuations\u2019 relationship to market values. (Pro tip: Agents can also take advantage of useful communication and other proptech tools<\/a>.)<\/p>\n

Prospecting and connecting with past clients get more efficient.<\/strong> Some examples: Re\/Max\u2019s First app<\/a> analyzes an agent\u2019s contacts to predict who might be ready to sell soon, leading to well-timed \u201cjust checking in\u201d calls. Homesnap Pro\u2019s<\/a> Likelihood to List feature predicts which homeowners might sell in the next year.<\/p>\n

Marketing budgets work harder when they\u2019re data-driven.<\/strong> AI can show who\u2019s buying, where they \u201clive\u201d online, including their social media, and what digital and offline marketing channels are the best way to reach them with paid ads or organic strategies.<\/p>\n

Trends big and small stand out.<\/strong> Not only can AI forecast the future for cities and neighborhoods, but it can also predict future property values<\/a> or the best time to sell a particular house on a particular street.<\/p>\n

What it can\u2019t do<\/strong><\/p>\n

For all of the amazing things AI can do in real estate, there are a few things it\u2019s not great at.<\/p>\n

Pocket listings don\u2019t pop up.<\/strong> It doesn\u2019t have access to private listings that agents hear about through various grapevines. (Although NAR and local Realtor boards have banned them as unfair, pocket listings seem unlikely to disappear in fiercely competitive markets<\/a>.)<\/p>\n

Chatbots aren\u2019t all that smart \u2013 yet<\/a>.<\/strong> They can answer basic questions or get newsletter sign ups, but \u201cSorry, I don\u2019t understand\u201d can add frustration.<\/p>\n

Bias can be baked-in.<\/strong> When AI output is based on data that reflects systemic housing discrimination \u2013 such as redlining and higher mortgage interest rates for minority groups<\/a> \u2013 it can perpetuate those issues. (Pro tip #2: Agents, NAR\u2019s new Fairhaven training simulations<\/a> are a great way to make sure you aren\u2019t part of the problem.)<\/p>\n

What only humans can do<\/strong><\/p>\n

AI\u2019s data powers can put agents in front of the right buyers and sellers at the right time, but it will always be up to humans to close deals.<\/p>\n

There\u2019s no substitute for personal relationships.<\/strong> Chatbots can\u2019t negotiate. A C-3PO can\u2019t show houses. Data can\u2019t intuit anything from the look on a client\u2019s face when she first walks into a house. Sellers and buyers want to work with agents they trust to advise them.<\/p>\n

Only people know the stories.<\/strong> Agents with hyperlocal expertise know the history of the neighborhood or maybe the story behind the local mom-and-pop grocery store that\u2019s been there for 50 years. Storytelling skills can close deals<\/a>.<\/p>\n

What\u2019s next<\/strong><\/p>\n

As advanced as AI is, it\u2019s still in its infancy. The amount of data will grow. Chatbots will become smarter and answer more complex questions. Projects like the IBM Policy Lab<\/a> will focus on how public policy should make sure AI helps, not hinders, the common good.<\/p>\n

Most importantly, innovation in AI will continue to sprint ahead. If real estate pros want to stay in the game<\/a>, they need to bring both Big Data and personal expertise to the table.<\/p>\n","protected":false},"excerpt":{"rendered":"

Artificial intelligence is everywhere, but it\u2019s more than just for real estate \u2013 it\u2019s poised to reshape the entire industry. To stay relevant, Realtors, brokerages, and agents need to know how to use AI to their advantage and understand how it\u2019s empowering consumers. So, let\u2019s break it down. What, exactly, can AI do for real […]<\/p>\n","protected":false},"author":337832,"featured_media":19259,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"wds_primary_category":0,"footnotes":"","jetpack_post_was_ever_published":false,"_links_to":"","_links_to_target":""},"categories":[93],"tags":[975,928,1234,324],"class_list":["post-16803","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate-tech","tag-ai","tag-artificial-intelligence","tag-real-estate-news","tag-technology"],"jetpack_featured_media_url":"https:\/\/theamericangenius.com\/housing\/wp-content\/uploads\/sites\/2\/2022\/08\/working-desk-leads-marketing.jpg","jetpack_sharing_enabled":true,"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/posts\/16803","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/users\/337832"}],"replies":[{"embeddable":true,"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/comments?post=16803"}],"version-history":[{"count":4,"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/posts\/16803\/revisions"}],"predecessor-version":[{"id":19328,"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/posts\/16803\/revisions\/19328"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/media\/19259"}],"wp:attachment":[{"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/media?parent=16803"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/categories?post=16803"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/tags?post=16803"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}