How Will Robots Work in Real Estate?
Real estate companies such as Zenplace have already begun using robots to show property in California. When a prospective buyer makes an appointment to see the property, he or she is greeted by a rolling robot with a tablet screen. The robot is able to answer many questions about the property.
Another real estate marketing platform, Rex, has begun using an Alexa-like box to answer prospective buyers’ questions about a property. In Rex’s case, a human agent is on site to handle any question the bot can’t answer. The Rex platform also relies heavily on AI in the marketing of its properties. Rex disrupts the real estate industry by removing agent commissions from the equation and by keeping its properties off the MLS system. This passes on significant cost savings to the buyer.
What is the Advantage to a Broker?
“It seems counterintuitive that a robot could actually benefit a real estate broker, but in fact, there is a clear benefit,” says Luis Enrique Coll, President of the Arco International Group. The wise broker is ready to adopt new technology which makes the home buying process easier and less expensive. A certain type of technology-aware client is attracted to the use of AI and robots, and there is a perception that brokers that use this technology may not be charging as much as others.
When a property is listed on the Internet, the REX AI system uses online data to target those who have clicked on the ad and tracks what they have in common. The system also uses purchases and retail data to target people who may be in the market for a home.
Robots and AI can streamline the process of getting a property listed online, and can help a broker deal with questions about their properties. An AI bot can chat with customers without having to involve a human. When it is determined that the buyer is serious, the bot conversation can be seamlessly passed to an actual broker.
Robots can automate the process of creating 3D video tours of homes, an otherwise expensive and time-consuming service. The robot is able to roll through the house on its own, taking photos and videos. 3D walkthroughs are an extremely attractive feature to the customer, providing a virtual experience of visiting the property.
How Do Robots Benefit the Client?
Having a robot give tours provides an appeal to technology-loving clients. If a client has a question at a time of day when the offices are not open, the AI may be able to answer. Robots and AI also cut down on the commission that a human agent might receive, lowering costs. Companies such as REX employ agents who are salaried, rather than working on commission. The companies that use robot automation are generally lowering the cost of their services to the client, but the companies themselves continue to be profitable.
What is the Place of Agents Versus Robots?
In the past, many technological innovations have disrupted the real estate industry. Recently, web sites such as Zillow, and before that, the MLS, democratized the process of looking for real estate. In each phase, real estate brokers became less of a gatekeeper to real estate information. However, customers still place their trust and loyalty in human brokers. The human real estate agent will never be completely replaced by a computer or a robot. Robots can help brokers and buyers alike, but the core of the real estate business will remain human, at least for the foreseeable future.
In Closing
Robot and AI applications are an exciting new facet of the real estate market. They have the potential to reduce costs for the buyer as well as for the broker. Features like property showings, online questions, and 3D walkthroughs are made much easier with the use of AI and robots. AI is capable of marketing properties directly to targeted users online, reducing the guesswork in placing online advertisements.
No matter how advanced AI and robot technologies become, they are missing the personal touch that an experienced broker brings to the table. For the time being, brokers do not need to worry that they will be completely replaced by a robot.