Tomorrow’s AI Today: Custom Chatbots For Savvy Real Estate Agents

Too many real estate agents are watching AI from the sidelines, assuming technology will never replace them. They repeat the mantra “Home buyers and sellers will always need a real estate agent.” Yet, the most brilliant leaders in AI have a difficult time envisioning how AI will transform the world in five years. How can real estate agents be so cavalier about their job?

Real estate agents who are not paying attention to AI are putting their livelihoods at risk. Powerful AI tools are already transforming residential real estate and forward-thinking agents are paying attention. The good news is that the early adopters will thrive.

In this article, I will explain AI’s history, the projected financial impact on real estate, and cutting-edge tools available today for savvy agents.

AI’s History and Where It Is Going

The Turing Test was developed by Alan Turing in 1950. It involved? a human interacting with AI and being unable to discern if the AI is a human or a computer. Also introduced In the 1950s, was the concept of building a neural network to empower computers. However, it was deemed as too challenging technologically so it languished. It re-emerged in the AI scene in October 2012 when Geoff Hinton, a professor at the University of Toronto, and two students constructed a viable neural network.

A functioning neural network was viewed as the pathway to develop AI? capable of learning? anything a human could, and perhaps become? more intelligent than humans.

New York Times reporter Cade Metz describes a neural network as a “mathematical system modeled on the web of neurons in the brain” which can learn to identify objects by analyzing vast amounts of data. Neural networks identify patterns and relationships in data. They accomplish this through layers of nodes, or neurons, which are interconnected to make predictions, conclusions or decisions.

ChatGPT uses neural networks to learn from experience, just like a human brain. We interact with our environment and develop connections between neurons based on our experiences. By contrast, ChatGPT is trained on text data and learns to identify patterns from that data to generate human-like text responses. These are large language models, or LLMs. Creating new content, whether in the form of? text, photos, videos, or computer code, is referred to as generative AI.

What is next? Artificial general intelligence, or AGI, is “AI that can learn and perform most intellectual tasks that human beings can, including AI development.” Some AI researchers believe that today’s AI already has one foot in that door. Microsoft researchers wrote in a paper that OpenAI’s GPT4 has “sparks” of AGI. It also passes the Turing Test, according to deep learning pioneer Yoshua Bengio.

As AI advances, it will progressively become super intelligent and then surpass the most brilliant humans. AI will be faster at processing complex data, i.e., in nanoseconds instead of the human speed of 200–300 milliseconds. AI knowledge is collective. It will instantly share new information with all connected AI systems, continually expanding its database, and understand it in ways humans could not process. The consequences of AI reaching superintelligence are profound and the speculations are vast.

AI Impact on the Economy & Real Estate Industry

McKinsey recently published “The Economic Potential of Generative AI: The New Productivity Frontier ”. The authors examined AI’s impact through two lenses. First, they identified 63 generative AI use cases. A “use case” is an instance where a targeted application is focused on addressing a business need. For example, a marketing professional might deploy AI to generate personalized emails, saving time and boosting revenue. These 63 generative AI use cases, across 16 business functions, have the potential to deliver an economic benefit of $2.6T to $4.4T.

The second lens focused on the way work activities would change for 850 occupations when generative AI technology becomes integrated into their jobs. This could result in a value of $6.1T to $7.9T.

Job functions most likely to be impacted include sales, marketing, and software engineering. Given that sales and marketing are key areas for real estate agents, generative AI will increase the probability of agents winning listings. AI will: 1) Provide comprehensive customer profiles from data and provide suggestions on the best times to engage with prospects; 2) Develop better leads by analyzing product sales data, and tying it to customer profiles, and 3) Develop sales scripts and automated sales follow-ups.

Marketing will be enhanced with generative AI, resulting in efficient and effective content creation, enhanced use of data, and SEO optimization. McKinsey reports that the real estate industry will see a productivity gain of $110B to $180B, primarily in marketing and sales.

Which Real Estate Functions Can AI Outperform Humans

I asked GPT-4 about real estate valuation. It first explained how it was better than human agents. GPT-4 could quickly process massive amounts of data (comparative home sales, market trends), be unbiased, use machine learning to predict home values from historic trends and identify complex patterns like changing crime rates or school overcrowding, and continuously monitor the market in real-time.

However, GPT-4 concluded that while “AI can enhance the process of real estate valuation, it may not completely replace human judgment. AI models might not account for qualitative aspects like architectural uniqueness, interior design quality, or the emotional appeal of a home. Furthermore, AI might not handle exceptions or unusual circumstances well, which a human agent with experience could navigate effectively. Combining the strengths of AI with the expertise and insights of real estate professionals could provide the best results in accurately assessing the market value of homes.”

Benefits of Using Today’s AI Tools

Create Content

When ChatGPT launched, real estate agents were immediately drawn to its ability to write listing descriptions and blog posts. Both are excellent uses of the technology to save time, but agents must be diligent in checking for factual accuracy and ensuring the content complies with their licensure rules.

Also, if an agent struggles with writing, I suggest directing ChatGPT to draft their blog post at a high school level and edit the writing so that it sounds like them. If readers detect that the content wasn’t written by the agent, another impersonal blog post won’t impress them or instill confidence in the agent’s expertise. Conversely, what happens if the reader is fooled into thinking that the agent is knowledgeable about the subject matter of the ChatGPT-created blog post? If the reader and agent then engage in conversation, it’s doubtful the agent will appear proficient? on the topic, creating doubt in the prospective client.

Building trust with prospects or clients takes time. AI and ChatGPT are tools, not replacements for the hard-earned market expertise and years of transactional and interpersonal experience.

The residential real estate brokerage industry relies on public trust in agents to guide them through the process of buying and selling homes. Smart agents will recognize how AI tools can enhance their practice by optimizing their time, freeing? them up to gain additional knowledge about their market and have more quality interactions with clients and prospects. Conversely, passive agents who expect AI to build their “expert agent” brand will not survive the inevitable industry disruption.

Grow Business & Drive Efficiency With Custom Chatbots

Chatbots are AI-powered messaging tools that allow users to interact through conversational texting. The latest chatbots, like ChatGPT, are far more advanced than those encountered on most retail websites. They not only answer questions but also engage in conversations like a real person, rather than a machine.

Think of a custom chatbot as a ChatGPT that is uploaded with the agent’s data. It could be the listings, noteworthy closed transactions, blog posts, videos, podcasts, website copy, and agent bios. When website visitors interact with a custom chatbot, it’ll be as if they’re talking with someone who knows everything about the agent and their business. Or, they could build an internal chatbot for their team that could answer commonly asked questions and direct them to resources. Here are some of the benefits of custom chatbots.

Capture and Nurture Leads

Real estate agents choose? how to build their business. The options are vast — social media posts (which platform and what type of post?), emails (newsletters, reports, market trends, one-page announcements), videos, digital ads, postcard mailers, park benches, and even billboards. Regardless of the campaign, success is typically determined when a prospect reaches out to the agent for a conversation. Most likely, this initial contact is a? text or email.

But what about those potential clients who are intrigued, yet not quite ready to dive into a direct conversation with the agent? They might have some preliminary queries that they feel are too minor to trouble the agent with, or perhaps they’re just not prepared yet to directly connect with a real estate agent. Here’s where an AI-enabled chatbot can nurture a lead.

Sell Homes — Listing Chatbot

● Great First Impression

Engaging in an informative and pleasant conversation with a listing chatbot leaves a positive first impression on the buyer regarding the property and the seller. Ease of accessibility promotes confidence and trust.

● Chatbots nurture leads

The chatbot not only answers questions but also asks them. For example, the question, “What is your ideal timeframe for moving?” will identify which buyers require immediate contact from the listing agent. When the chatbot identifies the right moment, it can ask the user to provide their contact information and preferred method of contact with the listing agent (phone, text, or email).

If a potential buyer engages in a lengthy conversation with the chatbot, they’re likely gleaning valuable information. This increases their inclination to contact the listing agent. Plus, the chatbot can engage with multiple parties simultaneously, a feature that’s particularly useful when interest peaks — say, when a highly-anticipated house hits the market.

● Chatbots work 24/7

A buyer who stumbles upon the listing late at night could converse with the chatbot, which is able to provide answers as if it were the agent. A quality chatbot will not provide a lifeless, robotic reply when asked about the property size. It would not say, “The property is 28 acres.” Instead, it would answer the same way as the agent by highlighting the property’s features and describing the beauty and allure of the landscape.

● Chatbots provide valuable feedback

Conversations with the chatbot give the listing agent a glimpse into the minds of prospective buyers. If just ten people each ask ten questions, that’s a hundred data points. This wealth of information could help the agent ascertain whether their marketing campaign is hitting the mark or needs fine-tuning.

● Chatbots are a live resource

During a house tour, a listing agent could use the chatbot to answer an obscure question about the property to provide an answer in real time as opposed to researching the answer and then providing an answer.

Stay Connected with Buyers After They Close — House Chatbot

When a buyer’s real estate agent presents a gift to their client after closing, it isn’t just a kind gesture — it’s an experience that creates a warm and memorable moment. The gift may even help smooth over any rough patches experienced during the transaction. However, once the wine from the gift basket has been consumed, and the flowers have wilted, the warm sentiment becomes just a pleasant memory.

Consider gifting buyers a House Chatbot that can answer all the homeowner’s questions that arise after moving in. A House Chatbot is a great alternative to a file folder stuffed with warranties, lists of recommended contractors, dog sitters, babysitters, preferred local retail options, utility providers, routine maintenance checklists, inspection reports, and seller disclosures.

Whenever the buyer has a question, they can simply ask the House Chatbot, which would be branded with the agent’s information. Every time the buyer interacts with the chatbot and gets their question answered, they’ll be reminded of their agent, sparking that warm, oxytocin-fueled feeling.

Win Listings — Listing Presentation Chatbot

Before the listing appointment, a demo chatbot of the property could be built with data from previous listings and other available information. The chatbot will also provide information about the community and publicly available data. During the listing presentation, an agent can differentiate themselves from their competition by offering to include a listing chatbot. After the agent explains how a chatbot works and the benefits it offers, the agent can let the sellers experience it themselves.

If the seller is familiar with ChatGPT, they will have high expectations and will undoubtedly be impressed. If they’re not familiar with it, they will be pleasantly surprised and wowed by the experience. Since real estate listing bots are the new, cutting edge technology, the agent can boast that their listing has the potential to attract media coverage since it will be among the first in their state.

The Adoption Curve

Technology drives efficiency, but its adoption takes time. The technology adoption curve shows distinct? stages — Innovators, Early Adopters, Early Majority, Late Majority, and Laggards. The time frame between the Early Adopters and Early Majority is a critical gap referred to as the “chasm.” Today, custom chatbots for real estate sit in the chasm awaiting broader market acceptance.

In my conversations with real estate agents who lead teams and industry experts, it has been intriguing to hear their perspectives on how chatbots will impact agents. Some acknowledge the potential value of chatbots in answering listing-related questions, training new team members, or providing market insights. However, they may be hesitant to invest their time and budget in a technology that doesn’t have a well-established track record.

On the other hand, early adopters are highly focused on how chatbots can give them an edge over their competitors, attract new clients, and strengthen relationships with existing ones. They aspire to be market leaders and are eager to explore how customized chatbots can solve their most pressing challenges.

Where are you on the adoption curve?