We are in a time where artificial intelligence (AI) is rapidly advancing. We use digital assistants for online searches and scheduling, chatbots for customer service, and in the near future, AI may even play a role in more personal interactions, such as therapy.
The question arises: could AI-powered robots and algorithms eventually take the place of real estate agents?
A Future With AI Real Estate Agents
There are compelling arguments in favor of AI in this context. Currently, human agents are using AI to identify better deals, negotiate more suitable price points, and even assemble a superior selection of properties for potential buyers.
AI would have various advantages over real estate agents:
- Data processing. Machine learning algorithms are more efficient at processing large volumes of data than humans. Real estate agents often require years of experience and numerous transactions to establish an understanding of industry norms. In contrast, an algorithm could potentially gain that experience in a matter of days by analyzing sale prices, home values, and data from decades of transactions. Additionally, AI bots can use customer preferences to create customized property showcases tailored to individual needs.
- Cost efficiency. Automation is replacing many human jobs due to its cost-effectiveness. While developing machine learning algorithms capable of analyzing thousands of data points is not quick or easy, once established, it has the potential to be more cost-efficient than a human agent. Given the choice, most home sellers would prefer to pay a smaller commission to a machine if it means selling the house for the best possible price in the shortest amount of time.
- Objectivity. AI algorithms are advantageous for making objective decisions. When a machine identifies a property as a good deal, it is based on calculated data rather than intuition or self-interest, which may influence human agents.
The Obstacles
Nevertheless, there is no guarantee that AI could completely replace human agents. There are still several obstacles to overcome:
- Property preparation. For the foreseeable future, homebuyers will likely want to personally visit properties before making a purchase, requiring human intervention to ensure a positive first impression. While robots may provide suggestions, the physical work is best suited for humans, allowing real estate agents to combine these recommendations with their own experience to create an inviting atmosphere for potential buyers.
- Intuition and personalized negotiation. While AI systems are lauded for their objectivity, they may lack the intuition critical in negotiating deals between two human parties. Human real estate agents excel at reading emotions and subtle cues, enabling them to make more astute offers and close deals more efficiently.
- The personal experience. For many prospective homebuyers, the homebuying process is personal and emotional. They seek to share the excitement of touring homes and negotiating with someone who understands and can engage in genuine dialogue. Human agents are better positioned to deliver a superior personal experience compared to machine learning algorithms, making them challenging to replace.
So, can AI potentially replace human real estate agents? In some ways, it already can, but there are still significant strides to be made before it completely revolutionizes the profession. Instead, we will likely witness an increase in real estate agents working alongside AI to assist buyers and sellers in navigating the complex world of real estate.
