AI & Real Esate

by

Greater Tampa REALTORS®

From lead generation to automatically creating listing descriptions, Artificial Intelligence (AI) has rapidly taken over the real estate industry in recent months. AI is making automation easier for REALTORS® and allowing them to focus on the human side of business.

How can REALTORS® use AI in their business?

Analyzing Market Trends and Forecasting

Artificial Intelligence has the ability to look at millions of data streams at once, unlike humans. REALTORS® can get an analysis done on future market trends for the upcoming homebuying season or possible investments in the area. Tools like this would give a REALTOR® and their brokerage a huge competitive advantage as they are noticing opportunities in the market that might otherwise get overlooked. It is important to note these AI tools don’t have access to the databases that MLS, associations or brokerages have, but it is still a great way to stay ahead.

Automated Copy for Listings

Chat bots are a great way to engage with a machine and have them answer questions and create decisive responses the way a human would. By using tools like ChatGPT, agents can ask AI to create descriptions for their listings. All agents need to do is provide the AI with a short description of the house and they will receive a humanlike description they can use for their listing that is sure to grab a buyer’s attention.

Improving Marketing Strategies

Similarly, to chat bot’s creating copy for your listings, it can do the same for your marketing strategies. Whether you need help with blogs, email, website assistance or social media, AI can help you create effective and persuasive copy. AI software can assist you by writing content, creating content ideas, or simply expanding on content you already have.

Lead Generation

In today’s market, the most popular way to find clients is digitally. AI makes this easy to all REALTORS® and is efficient for both parties. For clients, AI can generate what houses it thinks clients would be interested in and the agents they might want to work with based on their algorithm.

With

AI becoming widely popular and accepted, how will it affect the real estate industry?

Cybersecurity

Artificial intelligence tools often collect and store large amounts of personal data from you and/or potential clients. This is a good and bad thing. There is a chance that this AI could be involved in a data leak of some kind. Thankfully, these tools have high security systems in place to lower the chances of this happening. AI systems also tend to flag and alert the users of a potential security breach ahead of time, so it isn’t an issue anyone has to be constantly worried about.

Job Security

There is a large concern that AI-powered tools may replace the need for human agents altogether, resulting in job loss and decreased job security. In addition to this, there is a small possibility of a court’s ruling decision that would end the 1099 exemption affecting the brokerages and individual agents, but not so much for large companies like Zillow or Redfin. These are aspects all agents and brokerages should be aware of as it affects everyone.

Spread of False Information

There is always the possibility for AI tools to make errors or misinterpret data, which could result in incorrect property valuations, inaccurate market analyses, and other issues that have the potential to spread false information to a larger audience. As easy as it is to create new and unique information using AI, one can as easily create false information regarding a listing or an identity as well. These falsified pieces of information are likely to mislead buyers or sellers. To protect yourself and clients from this make sure you are trained on how to catch fake information and be sure to use AI ethically and responsibly

What is Artificial Intelligence?

Artificial intelligence is a term used for machine technologies that perform tasks that would otherwise require human intelligence. Artificial Intelligence aims to react the same ways a human would. Whether it is analyzing patterns or making judgements. Put simply, AI is the computers' ability to think and learn like us. There are many AI tools to learn about and pick from as a REALTOR®, but some ways REALTORS® are using AI in their ever day business include virtual reality for listings, automated copy for listings, lead generation and analyzing market trends/forecasting.

Artificial Intelligence is not Here to Replace You

Creating genuine connections with your clients is one thing AI can’t do. REALTORS® help clients picture their lives in the homes they are being shown. AI can virtually show a house and give you numbers and data, but it can’t make the client feel like the house is their home. A REALTOR® can also effectively analyze and reciprocate emotions with their client. AI can’t manage the human emotion behind real estate transactions. That is what makes the professional behind the process so important. A real estate pro who uses AI in combination with their own abilities is irreplaceable.

Being Aware of Risks Associated with Artificial Intelligence

To mitigate these risks, REALTORS® should stay informed about the latest AI developments and be cautious about relying too heavily on AI-powered tools. They should also prioritize ethical and responsible use of AI and work to ensure that AI tools are transparent, accountable and free from bias. Nonetheless, artificial intelligence is a great way to work smarter, not harder.

Remaining Ethical When Using Artificial Intelligence

Whether a REALTOR® uses AI to create copy for their listings or to generate leads, it is a sure way to ease the process. Remember that when using AI, it is important, crucial even, to adhere to the NAR Code of Ethics and Standards of Practice. Being sure not to mislead clients with incorrect information and preserving confidential information are very important. REALTORS® are encouraged to take the free Code of Ethics training provided on the National Association of REALTORS® website.