• Artificial IntelligenceArtificial Intelligence In Real Estate

    In our previous articles we have always maintained that we expect there to always be a place for real estate agents and mortgage brokers even with advances in technology. However, we also believe that it is important to keep up on those advances to see if or where we need to adapt. In that spirit, I read an article recently that discussed the role of artificial intelligence in real estate.

    Did you know that there is artificial intelligence software out there that will actually find buyers and help you sell your home? Generally people will choose artificial intelligence and other technologies due to the lower commission rates of these services.

    REX Real Estate Exchange

    REX Real Estate Exchange is one example of a real estate company that uses artificial intelligence. In one example, a couple in California hired this service to sell their home. It was listed for $880,000 and the software was able to negotiate a sale for $890,500!

    Instead of adding the listing to a service like MLS, the artificial intelligence software is able to scour through data to find the most likely candidates to purchase the home and then targets them through social media and website ads. The software has the ability to check statistics and trends on peoples’ behaviours based on what they look at and click online and their home buying history.

    REX’s artificial intelligence service has managed to close 231 transactions since they launched back in 2016. They are only one of many emerging technology companies that are coming on the market.

    Effects Of AI On The Market

    The effects of these companies don’t seem to be eliminating agents, but rather pushing commissions down. Sometimes agents will even work hand in hand with the artificial intelligence “robots”. For example, setting up a robot at an open house hosted by an agent, but where the robot knows answers to very specific questions like when was the roof last done? Agents are also needed for closing – they haven’t found a replacement for that yet!

    Robert Floris is a Mortgage Broker. His office is located at 651 Fennell Avenue East in Hamilton, Ontario. If you would like to speak with Robert, he can be reached at 905-574-9200 #215. Alternatively, you can contact Robert here.

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