I just spent an hour watching a video about how real estate agents can leverage Artificial Intelligence (AI) to help them better serve their clients. The speaker compared where we are with AI today to where we were with computers in 1995. I wasn’t selling real estate in 1995, but I was using computers and the internet, and I can’t imagine selling real estate without either one.
Online portals like Zillow and Redfin haven’t replaced real estate agents (although they tried), and I’m not worried about AI taking over my business. I look forward to using AI to help streamline some back-office tasks so I can spend more time with clients, the satisfying part of selling real estate. Here are 5 reasons why AI won’t replace real estate agents. (I should add that this post was written with the help of AI.)
1. Real Estate Is Personal and AI Can’t Replace Human Connection
Buying or selling a home isn’t just a transaction. It involves emotions, negotiations, and decisions that impact our clients’ lifestyle, finances, and family. Whether our clients are downsizing, relocating, or buying a vacation home in the mountains, they want someone who will listen, understand their goals, and guide them with empathy.
AI can answer questions and will become more accurate with time. However, it can’t solve the types of issues in real estate requiring a human touch. That might mean leveraging a relationship with another agent during a multiple offer situation to get my client’s offer accepted, or understanding which repairs to request following a home inspection.
2. Local Expertise Is Everything
You can ask AI about Park City real estate, and it might give you a factual overview. But it won’t know what it feels like to live in a specific neighborhood, like which grocery stores and restaurants are the best. Seasoned agents understand proposed developments that will impact neighborhoods, which HOAs are struggling, and the vibe of each area. This is experiential knowledge gained through an understanding of living in the area we are selling and talking to people about on a daily basis.
3. You Can’t Automate Strategy and Negotiation
Pricing a home right is part science and part art. The same goes for staging, timing, and crafting offers that get accepted.
An experienced agent doesn’t just pull data. We understand the particulars of each home that influence value. For example, that home the sellers “gave” away? They tried to sell it three times, and the accepted price was the real market value. And when it comes to negotiating? AI can’t leverage a professional reputation, sense when to push, or craft a counteroffer that protects our clients’ interests.
4. Buying and Selling Is a Process, Not a Click
AI might tell you what documents you need to buy a house. It might even fill in a few blanks on a form. But what happens when there is a snag in the process?
For example, what if you’re mid transaction and the appraisal comes in low? Or the home inspection finds something unexpected? Or the buyer wants to renegotiate right before closing? A chatbot is not a problem solver. Just last week, we had a closing where a broken window was found during the final walk-through. The other agent and I worked together to solve the problem in minutes, allowing the transaction to close on time.
5. Marketing Still Needs a Human Touch
AI can generate listing descriptions, but did you know ChatGPT has a voice? Its listing descriptions are generic and it uses the same adjectives over and over. Experienced agents can predict which buyers will be attracted to a particular listing and design a listing description and marketing plan to reach and attract that buyer. Good agents strategically position and expose a property to obtain the best possible sale price.
The Bottom Line on AI “Real Estate Agents”
AI is a powerful tool, and we use it behind the scenes to help our clients make smarter decisions. But tools don’t replace experience, intuition, relationships, and local knowledge. That’s what great real estate agents bring to the table.
Who you work with matters. AI has the potential to save agents time on paperwork and back-office tasks, allowing us to spend more time serving our clients. I’m not worried about AI taking over my business.