The real estate landscape is being shaped by rapid advancements in artificial intelligence (AI). For agents, this brings a mix of excitement and apprehension. AI has become an integral part of real estate practices, and its impact will only continue to grow in 2024.
In this ever-changing environment, our Chief Technology Officer, Jesse Pedersen, serves as a guiding light. Through his expertise, we’ll explore the most promising AI advancements and potential disruptors for agents. Join us in this editorial to get a sneak peek into the future of real estate and ensure you’re prepared and ready to thrive.
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AI predictions for the real estate industry
We started with some basics, wanting to know Jesse’s top-level thoughts on AI as it makes its way into real estate. Here’s what he had to say:
What’s the biggest impact you expect to see from AI in real estate in the next 12 months?
Most likely the biggest AI impact will be felt thanks to a dramatic acceleration in the use of virtual assistants, like those from OpenAI. For instance, (OpenAI) will allow people (or other companies) to take tools like ChatGTP and fine-tune them. As a result, I expect to see them being tweaked to improve effectiveness in specific use cases, and a lot of applications for this tech will roll out into real estate.
Can you give us a specific example of how these virtual assistants might make an impact?
Virtual assistants will unlock more personalization when it comes to customer relationship management. In a highly competitive market like real estate, agents will have to adopt AI-based solutions to keep up with these trends.
I also expect mortgage rates to ease and create a surge in demand this year. For agents to keep up, they’ll need to leverage AI tools to avoid sacrificing personalization in client relationships.
Anything else we should be on the lookout for?
Definitely. I am bullish about the use of VR and AR when it comes to home tours. Apple has just released its VisionPro Headset, which will reignite competitive fury when it comes to these technologies.
It’s not hard to picture agents being able to host multiple virtual tours without even leaving their offices. We might also see agents using these immersive VR experiences to help clients visualize home modifications, revealing a property’s hidden potential and engaging buyers even more.
Real estate AI tools and tech predictions
If anyone has access to a crystal ball, it’s likely Jesse. In this section, we wanted to really understand his predictions not on the type of technology we’ll see, but how it will be used.
Can you highlight some AI tools and technologies that real estate agents should be particularly excited about this year and how these developments will enhance their daily operations?
In short, website chatbots, AI lead nurturing, and AI analytics will be game changers.
2024 is going to be a year of changing market conditions and rising demand. It’s going to be important for agents to spend their time on the most qualified leads possible. I believe there’s an opportunity for agents to hand off top-of-funnel opportunities so they can spend their limited hours with those who are most serious.
Website chatbots? Really?
Definitely. We’re not talking about the chatbots from five years ago. The AI-powered versions of these are amazing. The right ones will make it easy to capture traffic, start conversations, gauge a lead’s interest levels, and determine if they’re ready to jump into the home-buying process. They will also filter out leads who aren’t serious, saving agents a lot of time.
Any specific tools in this space you’re interested in?
Well, naturally, I’m very excited about lead nurturing tools like Luxury Presence’s AI Lead Nurture (AILN) tool. The real value of these tools in general, and specifically AI Lead Nurture is their ability to vet interested leads by asking about their purchase timeframe, mortgage pre-approval status, property preferences, and other key info. By doing so, they ensure that when agents interact with a lead personally, it’ll be a more productive conversation.
Is Luxury Presence working on any other AI-powered tools?
Absolutely. I also predict that AI-powered trend analysis tools like the ones in Presence Copilot will be essential for success. These systems gather market data, from demographics to emerging trends, and provide actionable insights. With changing market conditions ahead, implementing AI analysis tools will significantly benefit agents. Remember, data will be moving faster, and agents will need to keep up.
AI red flags
Jesse made it clear that AI disruption isn’t all good. He identified some clear reasons to be thoughtful about what the coming changes will mean for professionals and how they can prepare.
What are some AI developments on the horizon that agents should be cautious about?
The overuse of AI when it comes to contracts. Of course, AI can be a wonderful tool when drafting contracts or offers. However, we’ve seen multiple examples where AI will make a mistake in a legal case, such as making up facts. It’s important as an agent to proofread what comes from an AI, as mistakes here can damage a relationship.
Any thoughts on AI and data security?
It’s a concern, and real estate agents should be cautious. I’ve seen advancements in AI used to target tech vendors in real estate. Just last year, First American, a major player in real estate tech, fell victim to a cyber attack. This highlights the need for password managers like 1Password to protect you and your client’s credentials.
Also, regarding security and fraud, it’s worth educating yourself about video-driven avatar animation and generative AI text-to-speech APIs. While these tools can have a positive impact, they can also be misused to impersonate people in a very realistic way.
In your opinion, how can agents prepare for what’s coming and best adapt so any new technologies don’t catch them off guard?
It’s paramount for agents to do their research on this one. I don’t think this is something you can just let come to you. You have to go out and do your research, even just a quick Google search once a week to keep up with where the industry is going.
If you want to be as prepared as possible, I’d recommend subscribing to AI-focused newsletters, following industry channels on YouTube, and adding AI-related news to your RSS feed.
To truly grasp these innovations, agents should embrace hands-on experience. Many AI tools, like ChatGTP, offer free trials or affordable subscriptions, making it easy to explore functionalities, understand benefits, and strategize about how they could be used in businesses. If you ask me, every agent should have a ChatGTP subscription, at the very least.
Harness the power of AI in 2024 with Luxury Presence
In 2024, agents should monitor AI advancements in predictive analytics and automated customer service. These tools can revolutionize client engagement and market analysis. Prioritizing ethical AI use and data security will also be crucial for maintaining client trust. If you want to harness the power of AI with our tools, Presence Copilot and AI Lead Nurture, contact us to learn more.