Already, Artificial Intelligence is enhancing the way brokers and agents meet their clients’ home-buying needs. Computer algorithms today are capable of screening millions of documents within seconds for everything from property values and debt levels to renovations and improvements, along with bits of a homeowner’s personal information. It can also predict which off-market homes might have owners that are willing to sell, based on publicly available data. Machine learning engineers continue to transform the real estate industry for the better, acting as an agent’s right hand to do many of the back-end work that once took hours.
While a computer isn’t going to see the expression on a client’s face while doing a walk-through or pick up on non-verbal or emotional nuances the way a broker can, together, human and machine can exponentially improve the home-buying experience for everyone involved. Looking to the future, imagine sitting down and engaging with a computer algorithm and a real estate broker simultaneously. Both ask you the same questions: “Where do you want to live?” “How much can you afford?” “How many bedrooms?” The list goes on. You provide enough information for each to begin a personalized property search.
A real estate agent might start research with a platform such as Zillow, which has algorithms that incorporate neural networks for its proprietary home valuation estimate. Another valuable source is the Multiple Listing Service (MLS), where the agent enters all desired search filters. The rudimentary AI that most MLS and search algorithms use will essentially apply these filters and provide results based on properties that try to meet all of your criteria. These would be the homes that you think you want. Make no mistake, agents work very hard to refine the right questions to ask to deliver their clients the best results. But, the results are always based upon those initial filters.
Conversely, well-built AI would only use those filters to start your search. They would rapidly show you homes that meet your criteria, but in the background every nuance of your user behavior is being monitored. Unlike an agent, who would primarily only follow your instructions, the learning algorithm would be watching and annotating, such as: How long you looked at a property, whether you clicked through to see the listing information, properties that you scrolled past, and those you saved. All of this data would go into your profile.
In the speed that only AI can provide, properties would be ranked not only on your initial search filters, but based upon your user behavior. The more data acquired, the more accurately the algorithm will map your profile and your preferences. This feedback loop would allow the AI to start loading properties that exhibited features that would suit preferences that you may not have initially articulated. Pretty soon, your results feed would only be full of that beautiful, canary yellow craftsman-style home that you didn’t even realize you liked. Instead of searching for the perfect home, the perfect home found you.
Similar to social media’s algorithms, this refined AI is programmed to increase engagement and to captivate your valuable attention. Attention is the currency of today, and companies are willing to pay excessive amounts to acquire it. The only way we can get to the holy grail of any marketing effort – a conversion – is to first get your attention. This kind of AI is an incredibly valuable tool for anyone selling. It allows us to start connecting with clients emotionally. The reason this is important is because, when it comes to real estate, purchasing a home is a very emotionally driven decision. Many buyers’ agents would agree that most people don’t really know what they want until they walk into that one house that just feels right.
One day, maybe not long from now, AI might just make the leap from understanding what we are thinking to beginning to understand how we are feeling. As far as the viability of this tech to improve engagement, look no further than TikTok. Nothing will replace having a broker by your side for the in-real-life process of walking through your ideal home, advocating for you throughout the buying (or selling) process, and enjoying a relationship for years to come; with the refinements of AI, however, the search and transactional processes just become more streamlined and intuitive. There’s a home for both under one roof.
