Artificial intelligence (AI) is a term for machines that can process information independently and learn how to solve problems. Most people probably think about AI in the context of high-tech industries. However, artificial intelligence capabilities have a much wider range of applications. Today, one industry on the verge of an AI-based revolution is residential real estate. Agents who work in real estate can benefit significantly by utilizing this advancing technology.
What Are Disruptive Real Estate Technologies Doing With AI?
Artificial intelligence has the potential to disrupt some of the real estate industry’s most cherished and long-standing practices. This is especially true in the area of information-gathering. Under the current operating model, agents hold vital information about market conditions. So, to access this knowledge, anyone who wants to buy a property must rely on these agents’ services.
With the advent of AI, the agent-buyer relationship can change drastically. That’s because machines, with the ability to learn, can take over many of the functions once reserved for agents. Instead of seeking help from a single person, buyers can turn to Internet- and cloud-based resources. Understandably, this can seem frightening to real estate professionals. However, in reality, agents can benefit from the new technological shifts just as much as their clientele.
What Do Residential Real Estate Agents Need to Know About AI?
So, what do residential real estate agents need to know about artificial intelligence? First, they should understand that access to AI can enhance and improve their available information. As previously noted, agents are the information brokers in the industry’s current business model. However, this doesn’t mean that it’s easy to use that knowledge promptly. In fact, essential insights can get lost under a cascade of facts and figures. With access to AI-driven systems, agents can increase their ability to target relevant data. In turn, an improved focus can boost their ability to pass critical information to their clients.
Also, the use of artificial intelligence can help residential real estate agents build their relationships. That’s because access to targeted information can improve their understanding of trends in their community. In turn, improved knowledge can lead to a greater ability to serve clients’ unique needs. Inevitably, this kind of service upgrade will support stronger bonds and promote greater trust.
There’s also another aspect to improved agent-buyer relationships. Today, agents must spend much of their time trying to collate mountains of data. When smart machines perform this work, industry professionals have more time to interact with their clientele.
How Do Agents Need to Respond to AI?
To benefit the most from advances in artificial intelligence, how should real estate agents respond? Perhaps the most important thing is to remain calm in the face of change. While AI may seem like a threat at first glance, it can actually provide advantages for agents and buyers alike. It also helps to understand that the use of AI can enhance the industry’s privacy standards, not dilute them. Under the new model, buyers can conduct their own information searches through secure platforms. This means that security gets built-in at multiple levels, not just one.
Despite the benefits of AI, real estate agents might not necessarily want to be early adopters. After all, even the most useful technological advances have their flaws and growing pains. As artificial intelligence emerges onto the scene, it may be wise to observe the initial round of developments. However, the technology will almost certainly make progress over time. This means that agents who don’t adopt the new paradigm soon may eventually face a competitive disadvantage.
Understand the Challenges Ahead
It helps to know that many developers of artificial intelligence for residential real estate understand what’s on the horizon. Instead of rushing to bring new AI platforms to market, they’re taking the time to develop wise strategies. After all, disruption functions as a two-edged sword. Used with skill, it can break through outdated thinking and methods. On the other hand, wielded unwisely, it can add to the technological chaos we sometimes feel in modern life. The ultimate goal is to create something that’s equally useful for agents and the clients they serve.
There’s no doubt that artificial intelligence will alter business as usual in the real estate world. However, rather than fear what’s coming, savvy agents can pay attention and prepare themselves. This forward-thinking approach can make it far easier to adapt to changing ways. It can also make it easier to enjoy the benefits of inevitable changes. Also, optimistic caution will simplify the process of creating reliable systems for all parties concerned.
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The most important thing you can do is get out there and meet the people… By people, of course, I mean the builders and the sales agents. An agent should go to the sales office and establish a relationship with a builder. Keep Reading.