Based on recent events and trends, it appears that artificial intelligence (AI) may play a
role in the real estate market. Over the recent months and years, to stay ahead of savvy
consumers and disruptive real estate startup companies, the field’s established actors have begun
to use adaptive AI technology to maintain their advantage. Specifically, direct-to-consumer real
estate companies like Zillow, Redfin, and Trulia have been using AI technology to create rapid
real estate marketing material, including the sale tendencies of owners (i.e. – whether they are
more or less likely to sell property in a particular market), and a real estate agent’s/agency’s
changing relationships with clientele (i.e. – whether an owner has recently changed real estate
agents).
These efforts have been received differently, but proponents of AI view it as a faster,
more efficient, and cost-effective way to accomplish tasks and achieve results than before.
Below, we briefly examine the current impacts that AI has had on the real estate industry as a
whole, as well as some predictions as to how this technology will impact the consumer market.
Turning first to AI’s impact on the real estate market as a whole, despite the “gold rush”
mentality that has permeated the real estate industry, many industry stakeholders are slightly
bearish on its proclivity for lasting positive impacts. Indeed, there are some instances of AI
producing less-than-stellar results. One notable example is Zillow’s failed 2018 “Zillow Offers”
program, a direct cash-offer home-buying business, through which Zillow bought homes in cash,
managed any repairs or renovations and then sold the home(s) for a profit. The AI technology
that it relied upon, however, predicted that the housing demand would last for longer than it did,
leading Zillow to end the program in 2021 with a glut of houses. These errors produce industry-
wide, AI-specific skepticism.
Turning next to AI’s possible impact on real estate consumers, industry experts predict a
mixed bag. As to benefits, consumers will likely enjoy AI’s convenience, specifically allowing
potential buyers to virtually tour prospective homes in a more thorough and in-depth way than
ever before, all from the comfort of a couch. Drawbacks exist as well, particularly when
consumers become overconfident regarding their real estate knowledge and skills, which could
lead to subpar decision-making, against which a human real estate agent or advisor would have
advised. Compass Real Estate has incorporated AI technology into its toolkit, with the
hope of creating opportunities and productively recovering from its losses sustained in 2021 and 2022.
Undoubtedly, AI’s impact on the real estate market will not be fully measured for at least a few more years to come. With over 30 years of experience, my team stands by to offer any information /ideas/perspectives to you, your friends and your family as needed.
This 3 bedrooms 2 bathrooms extensively remodeled home with pool and mountain views is offered at $794,500 in Cathedral Canyon Cove
