The Impact of Artificial Intelligence on Real Estate
Artificial intelligence has been used in Real Estate for the past two decades, primarily with the use of computer generated property valuations. Consumers have grown accustomed to looking at these valuations which in some cases are very accurate, but many times, they’re not. Now we’re seeing the use of AI increase by leaps and bounds, in ways that we never would have dreamed were possible.
The use of property descriptions written by AI started becoming common a couple of years ago. While it’s been nice to see descriptions that do not include typos, grammar and spelling errors, I’m not sure that we should call this progress. Why? A few of my recent “buyer” clients have commented to me that they don’t read the property descriptions anymore! They’ve shared that with so many real estate agents using AI to write for them, the descriptions all sound amazing…and very similar. After falling for the first few irresistible home descriptions, with a disappointing reality, they no longer trust the descriptions. In addition, some agents are not taking the time to fact check the descriptions! All too often, the AI writer makes attempts to create a more exciting description, by adding home features that don’t exist. I’ve gone to look at houses that supposedly had a swimming pool, a great view or a brand new kitchen…only to discover that these were errors and the features did not exist.
Misinformation can go even deeper. I’ve recently encountered several companies that sell tools to Realtors® to use in marketing their business, which heavily use AI to create the content, yet that fact is not disclosed. The result can be beautiful, very impressive looking websites, blogs or mailing pieces that are filled with bad data.
Please don’t misunderstand. There is a lot of value that can be obtained through the thoughtful and careful use of artificial intelligence. Using AI for note taking, statistical research (with verified sources) and formatting are just some of the ways that I’ve found to improve the services I offer to my clients. Proof reading and fact checking are essential to the responsible use of this technology. It’s a step that requires the time and attention of a human being who is experienced and knowledgeable on the subject matter.
In summary, Home Buyers and Sellers should question the real estate data that they read and verify that it is coming from a trusted source. Working with an experienced real estate agent who is knowledgeable about the market and able to spot AI discrepancies, is more valuable than ever. Do you have real estate questions? Please feel free to reach out to me at 925-964-5010 or via email at Lisa.Hopkins@Compass.com. Even if you’re not planning a move, I’m happy to help by providing you with relevant, accurate data, enabling you to make a well informed decision. It’s never too early to start planning for success.
