It can pass the bar exam, write your kid’s college essays, and have a close personal relationship with a New York Times journalist. Across industries, some are wondering if they can be replaced by AI. The real estate business is no exception.
What is AI?
Artificial intelligence (AI) creates mechanisms that can analyze and process data, find patterns, and make decisions based on what those mechanisms learn. While there is still much dispute about how close AI can come to simulating human intelligence, learning, and decision-making, it’s a rapidly evolving technology with the potential to upend how almost everything is bought and sold.
Faster, More Efficient
The upside of AI is, principally, speed. For buyers, sellers, and real estate professionals, it involves a quicker way to analyze market trends, see property listings in target markets, and get comparable prices. Real estate professionals can use the consolidation of vast amounts of data for marketing purposes, negotiating deals, and providing their clients with personalized advice.
The Home Buying and Selling Process is a Meaningful Experience
Technology can be a tremendous tool for real estate agents and professionals to serve their clients, but buying a house is much more than a mere transaction. A home represents so much: Shelter, safety, comfort. It’s a deeply personal choice involving your preferences and financial situation. A relationship with a great real estate agent, as well as with other real estate professionals, helps buyers and sellers in a way that can only be done by a live person - one with knowledge, passion, and integrity.
The Emotional Component
Buying a home is, for most people, the most significant financial decision they make. It can be an incredibly stressful experience with several components:
- Risks. For most people, buying a home is a huge commitment. Just starting the process of saving, getting a loan, and searching for a home can be daunting. And then there are many questions involved. What is the neighborhood like in terms of crime, school district, and resale? How do you know if you are making the right choice? How will you feel about this house in ten years? Can it be easily renovated? Why did the last deal fall through? How can you ask the sellers to fix something before the sale? Real estate agents have extensive knowledge of the local market and their expertise can’t be matched by AI.
- Finances. This is a highly personal topic. What you want may greatly differ from what you can afford. An algorithm can turn you down, but a person who knows the market and the best lender for you can steer you in the right direction. If you are selling, a professional can provide valuable advice on what your property is worth and how to move it through the market.
- Handling the unexpected. This is a big one. The home buying and selling process can be full of unexpected challenges and delays. You may have your heart set on a property, only to be beaten out by another buyer. A professional, unlike AI, can talk you through disappointment and help you get off the mat to look at more properties. More than likely, your real estate agent has dealt with many scenarios and can help you bounce back – likely with an even better deal.
- What you really want and need. Yes, you think you know. But a seasoned real estate agent can talk to you about where you are in life and the best decision for you. For example, the two-story house you have your eye on seems perfect, but is the old, steep staircase a safe bet if your mother-in-law has to move in next year? AI can’t give you a hug when you’re at a crossroads or help you work through your real priorities.
The Bottom Line: AI Is a Tool, Not a Professional
While AI can speed up the real estate transaction process and provide valuable data, it can’t replace the human element in the huge decision to purchase or sell a home. A trusted real estate professional can make the process easier and more successful.
If you are a buyer or seller, or if you need any assistance with any type of real estate legal transaction, Attorney’s Title Group can help. To learn about the real estate title and closing services we provide in Arkansas, Tennessee, and Mississippi, visit: https://youratg.com/services or click here to meet our team and get in touch today.