Real estate has historically been slow to modernize, but AI is changing that. The integration of artificial intelligence is changing the way in which buyers and sellers interact with agents, fundamentally changing the competitive dynamics within the industry.
As AI reshapes an actual estate agent's day-to-day operations by automating tasks – from creating property listings to conducting neighborhood evaluation – the agent's focus will shift to day-to-day activities.
Ryan Serhant, CEO of Serhant and reality TV star of “Owning Manhattan,” says AI is already less about access to information and more in regards to the broker constructing deeper relationships. He predicts a shift in considering is coming as agents embrace AI while being forced to seek out latest ways to distinguish themselves in an increasingly competitive market. “If we all use AI and have the same level of expertise, who wins? It’s the game of attention,” Serhant said last week on the CNBC Evolve AI Opportunity Summit in New York City.
Buying a house is the only largest investment most Americans make of their lives, making real estate a business where greater success will be achieved through a more personal touch from the agent. Serhant says that the massive advantage he sees in using AI is that the actual estate agent has more time to personally deal with his customers.
“The product in sales is no longer just the capability,” Serhant said. “It’s attention to skills.”
His own company, Serhant, has developed a sales force automation service called Simple to handle day-to-day customer relationship management tasks that typically take up over 60% of agents' time.
AI tools are used to optimize lead generation, automate marketing campaigns, and supply predictive analytics to discover opportunities. However, this doesn’t replace the crucial role of the agent in delivering excellence. Serhant says AI won't virtualize relationships, but for real estate agents who embrace the AI revolution — which he says is a vital step — it’ll strengthen their relationships.
When access to real-time market data and sales insights is less burdensome, small boutique firm brokers may give you the chance to compete on a more equal footing with larger real estate firms. “There is a trust factor in sales. … It’s not about who is the biggest, but who has the most power,” Serhant said.
Serhant said this will even profit home buyers and sellers as there will probably be a greater alternative of suitable agents with improved personalized services and a greater concentrate on the shopper.
The real estate industry continues to be within the early stages of adopting AI and understanding amongst real estate professionals continues to be low, however the interest is there. According to JLL Technologies' 2023 Global Real Estate Technology Survey, generative AI was ranked among the many three technologies expected to have the best impact on real estate in the subsequent three years. However, the survey also found that real estate professionals have little or no understanding of AI in comparison with other technologies.
According to Serhant, agents who understand how AI can empower their businesses could have great opportunities to achieve significant market share in the subsequent 20 years.
No technological innovation is without risks and wire fraud stays a serious challenge for the actual estate industry, exacerbated by AI. The FBI reported a pointy year-over-year increase in cybercrime losses from wire fraud in 2023, driven largely by real estate transactions. Improved artificial intelligence technology makes it easier for real estate fraudsters.
Fraud can't be ignored, Serhant said, but he believes real estate will adapt to the risks related to latest technologies in the identical way the business has up to now, comparable to with digital offerings. “With every advancement in technology, stricter rules are being introduced that can help stop these counterfeits,” he said.
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