How AI is reshaping real estate

Artificial Intelligence has had a tremendous impact on industries like healthcare and finance, and real estate isn’t the exception. From automated valuation models to home showings, here are some ways AI is revolutionizing real estate.

Predictive analytics

AI can process and analyze vast amounts of data in a fraction of the time it would take a human.

This allows real estate agents to access valuable insights about current and future property trends, pricing, and market conditions.

For example, the tech-real estate company Zillow became popular due to its automated valuation models that take the criteria of a home and give its users an estimated property cost.

As the use of this app increases, there may be cases where clients wonder why the cost of a property significantly differs from the Zillow estimate. And that’s when the value of a REALTOR^® comes in. REALTORS^® have expertise in the market and can provide context to answer their clients’ burning questions.

Reduction of administrative tasks

Many agents spend their day-to-day answering e-mails, booking appointments, and managing different tasks.

Well, we have good news. There are AI apps that can serve as an assistant to increase efficiency and enhance customer experience through automated chatbots, AI calendar optimization tools, and more.

Take Maya, a chatbot created by New York real-estate firm Eklund Gomes Team, as an example.

Maya is responsible for answering all their home-buying questions for potential clients. While it provides helpful information, Maya’s knowledge is limited to properties in New York (for now) and is not always accurate. Therefore, Maya directs buyers to the firm’s agents for more complex inquiries.

Revamping showings

This shouldn’t be a surprise as virtual walk-throughs became popular when the industry had to pivot and adapt to life under COVID-19.

These virtual walk-throughs have become a success as young millennials and Gen Z enter the market and prefer to browse properties online and 3D virtual tours. With AI, the quality of these tours has increased significantly.

According to GeekWire, Zillow embraced the novel Apple Vision Pro mixed reality headset as the ultimate way to experience interactive home tours and has launched its Zillow Immerse experience in the App Store.

The company called Apple’s spatial computing headset “the next best thing to being there in person” for home shoppers who want to check out virtual walkthroughs and 3D floor plans.

The application was specifically designed to work for Vision Pro, utilizing Zillow’s AI-powered Listing Showcase listings, which feature scrolling “hero” images, room-by-room photo organization, interactive floor plans and 3D tours.

Instead of scrolling through two-dimensional pictures, the app drops users inside a for-sale home, giving them a panoramic 3D view of every room, from the ceiling to the floor. They can virtually walk down hallways and pop their heads into closets, all while using an AI-generated floor plan as a guide.

Marketing made easy

Creating content to support a marketing strategy or to enhance an online presence has gotten easier thanks to artificial intelligence.

Agents who use social media to promote their business can create content with support from AI apps that assist users in creating captions, photos, and videos for their channels in a short amount of time.

One of these apps is Kapwing, a modern video creation platform that reduces video editing time and supports the creation of short-form video content targeted towards Instagram Reels or TikTok.

When showcasing properties, Halo helps agents create compelling website landing pages, enhanced photos, and captivating walkthrough videos of residential and commercial real estate properties.

As technology revolutionizes the industry, the value of a real estate agent is stronger than ever because AI lacks human intuition, emotional intelligence, and the ability to understand nuanced situations that require human empathy.

Real estate transactions often involve complex negotiations, intricate details, and personal relationships that AI will struggle to navigate.

AI is also not proficient with the CREB^®Rules or the REALTOR^® Code, so any property descriptions, listing information, or public/private remarks AI gives may not be compliant.

Therefore, we strongly advise that when people use AI, they proofread any written content provided and speak directly with the appropriate governing bodies about potential concerns, in this case, the CREB^®Member Practice team at crebmp@creb.ca, and reference RECA’s Advertising Guidelines.

While AI cannot replace real estate professionals' human touch and unique skills, AI can be a valuable ally in optimizing efficiency, improving decision-making, and delivering exceptional service to clients.

Tagged: tech | Technology