AI in Real Estate: Tech-Proofing Your Business Model

From ChatGPT to 3-D floor plans, it’s clear that artificial intelligence (AI) is taking the real estate industry by storm. In fact, AI and generative AI are two of the top three technologies experts think will impact the industry. These new tools make finding properties online, selling properties FSBO (for sale, by owner), and getting real estate information faster and easier than ever.

So, how can agents proactively protect their businesses from potential AI competition? We have some valuable suggestions for you in this article. But first, let’s answer a question on many agents’ minds regarding real estate AI.

Will Real Estate AI Put Agents Out of Business?

The short answer is no.

Real estate AI currently can’t—and most likely never will—replace human agents. Despite its astonishing abilities, generative AI is limited by the data it’s fed. Meanwhile, agents bring a unique set of skills, knowledge, and emotional intelligence that clients desperately need as they navigate the challenging process of buying or selling a home.

How to Use AI in Real Estate

Although AI can’t replace you, it can help you streamline business operations and enhance the quality of your services. Here are some AI-powered tools to consider using:

• Intelligent real estate data (like PropStream Intelligence™) to ensure the most detailed and updated information.

• 3-D floorplans and video walk-throughs to enhance the appeal of your listings

• Virtual staging to make listing photos stand out

• Grammar checks and proofreading to ensure all your marketing materials are error-free

• 24/7 chatbots to answer basic questions and capture leads outside of business hours

• Social media content creation and management to save some time on marketing

• Document summaries to quickly assess complicated contracts and other documents before diving deeper.

Pro tip: Since AI isn’t foolproof, double-checking everything it generates for accuracy is always a good idea.

AI is nowhere near advanced enough to do everything a professional agent can. But that doesn’t mean you shouldn’t take its progress into account. Below, you’ll find ways to ensure your future career can withstand any tech-driven obstacle or competition.

6 Strategies to Tech-Proof Your Real Estate Business

1. Showcase Your Local Expertise

AI can dictate facts and data—and even some helpful analyses—but it doesn’t know your city and its neighborhoods like you do.

Since 77% of buyers think it’s essential for an agent to have in-depth knowledge of their local area, consider showcasing that knowledge by sharing hyper-local trends, neighborhood insights, and insider information about schools and local amenities that AI tools wouldn’t know.

Cultivating local relationships is another skill AI can’t replicate. Lean into your connections with local business owners, charitable organizations, and service providers. Not only does this help strengthen your position as a local expert, but it may also lead to a steady source of referrals.

2. Build a Strong Personal Brand

Technology can’t compete with an established professional whom buyers and sellers know, like, and trust. Focus on cultivating a brand that positions you as a knowledgeable and trustworthy advisor.

Here are some ways to start building your brand:

• Hire a photographer to take high-quality headshots and photos of you in action (e.g., working with clients, volunteering with local charities, giving presentations, etc.)

• Get active on social media by publishing interesting real estate content.

• Create a professional website to highlight your expertise (and your team’s, if you have one), your listings, and perhaps a blog.

• Participate in online and in-person events and forums, offering helpful real estate advice and recommendations for local service providers.

• Print attractive business cards and keep several on hand in case you encounter interested prospects.

• Start an agent newsletter featuring a personal note from you, some interesting local news, buyer and seller tips, and a few eye-catching listings.

3. Lean Into Emotional Intelligence

Since AI learns from human responses, it does a decent job of feigning emotion but can’t offer authentic empathy. You can understand clients’ feelings and respond in a compassionate yet professional way that a machine can’t quite replicate.

For example, during emotionally charged transactions—such as a foreclosure or a home sale after the death of a parent or divorce—focus on offering empathy and reassurance.

Let your clients know that whatever they’re feeling is normal and that you’re here to guide them through any obstacles that arise. This will allow you to position yourself as a trusted advisor during frustrating or complicated situations. When the transaction is complete, consider sending a thoughtful gift (like a gift basket with their favorite treats or a gift card to their favorite restaurant) with a handwritten note. Plus, check in periodically to show them you care about them, even when there is nothing to gain financially from them.

This will not only tech-proof your business plan but also keep you on their radar should they decide to repurchase or sell in the future.

4. Refine Your Negotiation Skills

Yet another way to tech-proof your business is by strengthening your ability to negotiate favorable terms for your clients. Of course, no two situations are identical, which means you need to learn how to adapt your offers and counteroffers based on variables AI can’t account for, like location-specific details and each party’s emotions and motivations.

Once again, emotional intelligence comes into play here, as does an ability to read various personalities and develop creative solutions that leave everyone happy.

5. Focus on Stellar Customer Service

Do you want repeat business? Try to ensure clients feel valued and cared for, not like a mere number on your roster. Offer the best, smoothest experience possible by prioritizing the following:

• Responsive communication: Responsiveness is a top-valued agent characteristic for 94% of buyers. Don’t let days or weeks pass without touching base with a client. And if they reach out with a question, it’s wise to follow up immediately—or at least within a few hours.

• Personalize your advice and services: Drawing clients out about their goals, aspirations, and lifestyle preferences will help you tailor your real estate advice and find properties that best match their needs.

• Offer extra insights and information: You can empower your clients by giving them informative neighborhood guides, easy-to-digest market reports, or valuable advice on buying and selling.

• Always advocate for them: Clients want to know you will protect their best interests even when they’re not around. That means double-checking documents and contracts, pushing back against unfavorable or unfair terms, or calling out issues they might miss with a property.

• Stay connected with past clients: Try contacting previous clients occasionally to see how they’re doing or offer a helpful recommendation for local businesses, contractors, and other service providers.

6. Find a Real Estate Niche

You don’t have to be a generalist to succeed. Many agents have built a name for themselves by specializing in a type of client (e.g., military personnel or celebrities) or type of transaction that requires deeper knowledge, such as:

• Multi-family rental properties
• International sales or purchases
• Luxury vacation homes
• Fix-and-flips
• Wholesaling
• Short-term rental properties
• Short sales
• Foreclosures
• Senior owners

You may benefit from getting certified for specific niches, like international transactions, resorts, short sales, or serving accredited buyers. In those cases, consider continuing your education to build credibility with clients and establish yourself as an expert in your chosen specialization.

Agents who focus on personal branding and human skills like emotional intelligence, local connections, and specialized expertise won’t have to worry about how advanced AI becomes. Instead, they can leverage new tools, knowing the value they provide as an agent is irreplaceable.