The world is transforming quickly and there is serious talk of numerous jobs being replaced by Artificial Intelligence in the next couple of decades. According to some estimates nearly half of the jobs in the U.S. are at risk of being taken over by Artificial Intelligence. Will there be any real estate agents in 20 years’ time? This is a question that is seriously being contemplated due to the fast pace at which technology is moving.
Benefits of Replacing Real Estate Agents with Artificial Intelligence
Consider the typical realtor who only carries out the standard transactions like maintaining an inventory of homes for sale or rent, locations, completing paper work, setting up appointments to show properties etc. These are redundant processes that can easily be carried out mechanically by Artificial Intelligence and at a more efficient rate.
- The projected real estate robots will have an IQ of 150, which is significantly a more developed mind than the average human.
- They can work an unlimited time without break, vacation, or pay! You would only have to pay for maintenance.
- They can calculate the price of a home better than a human by comparing existing properties for tax values, cost per sq. foot, depreciation, appreciation, location and current prices within minutes, probably even seconds.
- They can put together the most effective marketing strategy for the sale of a house based on the data programed into them, in addition to drawing up a timeline for marketing and keep you abreast of tasks accomplished.
- With the latest housing information programed into the robot, when a client outlines their demands for a dream house and price, the robot can churn out the listings fulfilling the described benchmarks.
- Finally, just put on your hologram glasses and the robot will show you the potential homes.
Just this past year, Everyhome unvailed its artificial intelligence system, CityBldr. CityBldr uses its artificial intelligence algorithm to find underused properties and potential land assemblages. This is already revolutionizing the commercial real estate industry in an unimaginable way. CityBldr will has the capability to take over broker’s jobs, thus saving developers, builders, and investors hundreds of thousands of dollars per year.
Will There Be Any Real Estate Agents in 20 years?
This is a legitimate question, that is still doubted by many. Understanding that change is scary, it is inevitable. With technology evolving, and companies looking to decrease costs and increase profit margins it is possible that large real estate firms would want to employ unpaid Artificial Intelligent robots instead of real estate agents that require a hefty 7% commission.
With the infusion of Artificial Intelligence into the real estate industry, the commission costs associated with property transactions will go down from the typical 3-7% of the value of the property to just a few hundred dollars. That is a huge reduction, by today’s figures amounting to thirty billion dollars in lost commission costs. By eliminating the middle man, this money will end up in the buyers’ or sellers’ banks.
An additional benefit, the use of Artificial Intelligence, AI, will give to the buyer or seller is that AI will come with ‘Errors and Omissions’ guarantee. This protects the client against any calculation mistakes being made during the process of sale or purchase of the property, thus the client is insured.
To some degree Artificial intelligence can be employed in real estate to carry out some processes. The more mundane aspects of the job can be handed out to a machine, which can carry them out faster and with greater precision.
However, what happens when unique issues arise, if there are last minute emergencies, or negotiations that can’t be factored into an algorithm? Will there be any real estate agents in 20 years? I can’t imagine why not.