How AI is Affecting the Real Estate Sales Process: What to Know

Although some people may not necessarily wish to embrace AI, everyone can agree that AI is here to stay.  The role of Artificial Intelligence in both residential and commercial real estate in South Florida, and throughout the country for that matter, is ever evolving, creating efficiencies and uncovering predictive market trends.  How?  By providing technology to expedite working systems, such as lead generation and internal processes, AI is currently giving insight into operational and market analysis that we simply have not contemplated.

Will the Role of a Real Estate Agent and Broker Change?

AI is still developing in the real estate space.  Traditionally, as we all know, the role of a real estate agent has been direct interaction with a seller or buyer.  Many times, a prospective buyer will know a Realtor from the community.  As with most AI, we are still at a stage where the AI does not pick up on social cues, and therefore the technology is still developing.  Specifically, the AI must learn, through its own tools, human social interactions— buyers and sellers, real estate agents and their clients— before the technology is perfected.  Arguably, the traditional role of a real estate agent and broker will become stronger as more data is culled by AI to determine what the prospective purchaser actually wants.

How Does AI Apply to Both Commercial and Residential Real Estate?

Aside from the traditional real estate relationship, AI has been used to make home estimates more accurate.  Zillow’s Zestimate, for instance, uses an AI feature called computer vision.  This tool analyzes pixels in listing photos to determine the quality of a home, which according to Zillow, has made the Zestimate 15% more accurate.  Computer vision can identify property features, such as pools or gardens, through images and videos which provide buyers with a more comprehensive view of prospective properties.

As discussed in an earlier blog, AI is also used to virtually stage a home or property.  Imagine decluttering a property by deleting objects in a home or accentuating the exterior of a home or commercial property.  It is incumbent upon the proposed buyer to perform due diligence pursuant to the real estate contract and to physically tour the property.

Generative AI, such as ChatGPT, is another AI tool that is being used in real estate to provide automated processes for tasks such as listing descriptions, property searches, and marketing content.  This, in turn, enables Realtors to focus on selling by the AI automating these types of tasks.

Further use of AI would provide real estate professionals with quicker, more efficient predictive analytics to evaluate market conditions, evaluate property values, and identify investment.  As a result, both residential and commercial buyers and sellers would have more knowledge to make decisions and potentially mitigate risks.

AI has other real estate uses.  In the mortgage industry, Rocket Mortgage uses AI to scan documents and extract relevant information, speeding approvals.  AI also has been used to prevent mortgage fraud by flagging suspicious transactions.

What Does This All Mean?

AI is here to stay.  While some are concerned that there will be a displacement of jobs due to AI,  perhaps we should view AI differently.  By having the speed and efficiency of AI, AI is revolutionizing the real estate market by making mundane internal processes more efficient and by allowing real estate professionals tools to be able to guide and predict purchases and sales.  Increased sales will result as AI’s advanced features can assist in a more personalized property search based upon specific preferences.

Should you have any questions or need assistance with a real estate purchase or sale, our title company, Weston Title & Escrow, Inc. is able to help you and can be reached at 954-384-6168. Should you have any legal questions about a potential purchase or sale or another legal matter, our team at Oppenheim Law can be reached at 954-384-6114.