Now Trending: AI's Emerging Role in Real Estate
Artificial intelligence (AI) is radically transforming a host of industries, and the residential real estate market is no exception. Kevin Van Eck, Executive Vice President of Innovation & Education at @properties, and Mabel Lam, Director of Marketing for @properties Development Group (@DG) share their insights on this fascinating intersection in a recent conversation.
AI's role in the real estate industry has expanded rapidly, especially in the last six months. Van Eck points to one major use: AI's evolution from basic tasks like photo labeling to complex tasks like assessing a room’s quality or renovation status. This sophisticated analysis can help determine a home’s value. He also mentions the future possibility of using AI models to examine property videos for a more detailed valuation. This new approach hints at a groundbreaking shift in property assessment methods driven by AI.
The potential for AI in the real estate sector is remarkable, but not without its challenges. Van Eck mentioned one particular issue: AI's proclivity to create 'hallucinations' — invented data in response to queries it doesn't have the information to answer. "If you ask it for something, and it doesn't know, it will make it up. So there's caution there," he said, explaining that fair housing laws and other specific compliance areas could present complications in the application of AI to real estate.
As for @DG and its strategy with AI, it's all about keeping an eye on the horizon and understanding how technology can enhance the experience for clients. Lam referenced this as avoiding the "shiny object syndrome." She said, "It's more like looking at what other industries are doing and where they are applying AI and these tools, and specifically when it comes to developers and independent contractors."
Lam also expresses enthusiasm about the prospect of agents and developers working with AI to analyze different data sources and generate unique content. Current tools also have the capability to create unique visualizations, offering fresh content to share with interested buyers. In one such case, @DG has utilized these tools to create a virtual staging for The Views at Geneva National.
However, one of the primary challenges of AI adoption lies in striking a balance between efficiency and personal touch. Van Eck notes the importance of giving AI quality information to get quality outcomes, emphasizing that every output from AI still requires human input. "The efficiency piece will be a good head start. And then you still have to add your flavor. It can't be a copy-paste situation directly from AI or GPT; there still requires some tweaking," he states.
Looking ahead, Van Eck anticipates that AI will continue to empower agents and developers alike, enabling them to offer a higher quality of service to clients. However, he was clear that technology would not replace the need for human agents. "Like with any new technology, it takes decades for people to get comfortable utilizing it, so AI isn't going to replace anyone anytime soon."
By offering tools for better analysis, customer personalization, and a higher quality of service, AI stands to bring about significant change in the real estate landscape. As we traverse this exciting new path, insights from industry leaders like Kevin Van Eck provide an invaluable perspective on harnessing the full potential of AI in real estate.