The use of technology in the property industry has lately become a cutting-edge topic, as the real estate sector has been accused of being slow in adopting tech tools, and most transactions still occur through agents and property brokers. However, as technology has advanced, it has equipped property professionals with sharper tools to assist their trading. AI has implications for commercial and residential real estate, and while it may pose a threat to the traditional approach of estate agents, it also opens up new opportunities for those who can adapt.
Will buyers and sellers still need the services of an estate agent when they have everything they need online or digitally to purchase a home? Will a prompt bot be able to find buyers their dream home and negotiate the transaction?
According to Grant Smee, CEO of Proptech agency Leadhome, the trick is finding the sweet spot. "We anticipate a strong leaning towards AI-type property transactions, especially amongst the younger generation, but the consumer will find out that although technology adds a dynamic, streamlined 'you are in control' aspect to buying or selling a home or property, a professional real-life person assisting you along the way is just something that cannot be replaced. According to Smee, AI-based algorithms or machine learning should help agents and their clients in valuations, creating forecasts, applying for finance, and screening buyers or tenants.
Thus Leadhome, recently acquired by Only Realty Holdings, was, according to Smee, an exceptionally attractive investment, as his team realised that buying trends were shifting significantly. Smee explains that through online interactions, Leadhome clients experience a new-found way of buying or selling a property. “Clients like the upfront clarity provided by the fixed fee and disentangled concept, which means that they appreciate the transparency and simplicity of the process. They also like WhatsApp conversations, online listing, intelligent search and sell (using AI to match buyers with suitable properties), access to information, and quick turnaround times.” Smee says that he has noted strong favour from the market for agents who are embracing tech and stepping away from traditional tactics.
Those in the property market can, via these tools, eliminate many unnecessary and superfluous stages of the process. Smee comments that the agents who will survive will be the long-term vision individuals who embrace and use the intelligence coming their way. "We mustn't forget that the customer is no fool", he added, "As professional service providers, we must be completely in-tune with our clients and decipher their preferred way of doing things. The new generation, for instance, will certainly not answer a phone call, may take a few days to get back to your WhatsApp message (blue tick and all) and will sign the document, where permissible, via their phone. On the flip side, Generation X will be happy leaving you a 5-minute voice note and come into your office, expecting a cappuccino while they sign the document."
Rental agents will also feel the threat as AI is adopted in the property management space. Chatbots screening tenants, automated scheduled property maintenance, rent collection systems, and tools will reduce the work previously required by human hands. But as Smee indicates, this should be viewed as a major benefit of the manager or managing company, "There are really smart tools out there to assist the industry, alleviate tedious tasks and create space for driven individuals to spend time on growth and improvements or on more creative tasks.
The bottom line… expect and embrace AI as it becomes a reality; enhancing the real estate sector.
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