Real estate agents, in small businesses or nationally known agencies, are integrating artificial intelligence into their standard operations.
No, this isn’t about outsourcing everything to robots. Communicating the values and personality of a business needs the human touch. But generative AI models can certainly get work done for you.
A recent article in The Real Deal points to a Compass agent in Florida, for example, who’s been experimenting with OpenAI’s chatbot since early 2023. Turns out ChatGPT is a great marketing copywriter for the office.
It’s Great for Writing Listings, Right?
Generative AI — the application of artificial intelligence to produce content — is famously useful in the real estate world for writing listings, estimating market values, and helping web visitors run natural-language searches. But businesses are finding AI technology helpful for a much broader range of tasks, including:
- Budget creation and event planning.
- Developing design and marketing materials.
- Evolving from e-newsletters and brochures to video content.
- Reviewing legal documents and customizing contracts.
In some cases, AI is helping small businesses manage their work on tight budgets and limited staffs.
If you’re not sure where to start, you’re not alone. Generative AI is new to most everybody. But an online search for tutorial videos will offer guidance with AI basics.
Can AI Help Me Sell or Buy a Home?
Maybe so. One way it could help is by setting a potential buyer up with a lender — promptly.
The lending tech company Upstart is reportedly about to jump into the mortgage market. This could make quite a splash as AI crunches numbers in a way that understands the gig economy and people who have so far only rented. For even further appeal to up-and-coming generations, it also has a loan application app.
The mortgage market is valued at $2.7 trillion and counting. To date, it’s a market filled with bottlenecks and gatekeepers. No wonder the average home loan takes more than a month to issue. This can frustrate agents and lenders along with their prospective clients.
But using the company’s own AI model, Upstart could give the mortgage applicant an approval in 10 minutes, and issue a loan within the week.
Are Big, AI-Focused Real Estate Companies Doing Well?
Real estate tech companies are dealing with prospective buyers’ frustrations. Consider Opendoor Technologies and Redfin. Both could be considered AI-focused. And both saw their stock fall by 10% or more in early August 2023, after forecasts for weak profits ahead.
As an iBuyer, Opendoor flips houses. Now, with mortgage rates going up, it’s a tough environment out there. Opendoor bet heavily on AI, but the technology was not able to help the company cope with interest rate hikes.
Seattle-based Redfin has faced declining revenues in 2023. The company has decided to wind down its own flipping business, RedfinNow.
When interest rates go down, companies like these could start to rally. More buyers will be around. And we’d see selling by some of those people who’ve been avoiding the higher mortgage rates by holding onto their homes.
If a rally materializes, the real estate tech companies should be well positioned to benefit from the evolution of AI by that time.
Could AI Help Me Get Into the Real Estate Business?
AI platforms could turn out to be great launchpads for real estate careers. They could equip new agents with information and insights that give them a boost.
Imagine a virtual assistant that helps agents distribute their advertising to promising audiences, and finds ideal buyers. Imagine the platform zeroing in on the right marketing channels. Imagine it coaching the agent to close on homes with optimal prices and terms. For an example of a front-runner in this niche, check out Profet.ai, part of PropMix.
Please note that Deeds.com has no affiliate marketing relationships with any businesses we mention. This article is offered for general knowledge and the joy of exploring what’s new, interesting, and maybe even useful out there.
Supporting References
Kate Hinsche and Adam Farence for TheRealDeal (The Real DealTM, Korangy Publishing Inc., New York, NY): South Florida Resi Agents Lean Into AI From Writing Listings to Reviewing Documents and Generating Marketing Campaigns, the Technology is Proving to Be a Game Changer (Jul. 26, 2023).
Pat Crawley for NASDAQ.com: MarketBeat – It’s Do or Die for Opendoor: Can It Survive a Real Estate Slump? (Mar. 2, 2023).
Tae Kim for Barron’s: Opendoor, Redfin Stocks Tumble on Weak Outlooks (Aug. 3, 2023).
And as linked.
More on topics: Artificial intelligence, Real estate tech
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