September 11, 2024

How will artificial intelligence revolutionize real estate?

Artificial intelligence (AI) will profoundly transform the real estate industry. In fact, the Quebec Professional Association of Real Estate Brokers (QPAREB) made it the focus of its latest Forum immobilier résidentiel . This annual event, which brought together more than 700 participants from across Quebec, explored the different applications of AI in this fascinating field. These topics were also discussed in the 25th l’Immobilier en mouvement podcast.

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As real estate practices evolve, many market players are wondering whether investing in artificial intelligence is worthwhile and if the new technologies will really save them time. If so, what are the main benefits? What are the new AI tools? What are the ethical considerations raised by the use of these new technologies? We answer these questions and more!

What is artificial intelligence?

According to IBM, artificial intelligence refers to the technology that enables computers and machines to simulate human intelligence and problem-solving capabilities. AI uses algorithms modelled after the decision-making processes of the human brain, that can “learn” from available data and make increasingly more accurate predictions over time.

Although this technology has been around for a long time, Farid Mheir, a digital technology consultant, believes that we are only at the beginning of this new era. He points out, “We hear a lot about AI and its tremendous potential. ChatGPT is a promising application that has captured the imagination and allows us to interact with artificial intelligence, but it is only the beginning.” He thus sees AI as a powerful force in the improvement of operational efficiency and growth of real estate activities.

	Tips and tricks The Government of Canada recently launched a public consultation on artificial intelligence computing infrastructure in order to identify the best strategies for investing in this field. To be continued!

What AI technology is used the most in real estate?

According to Alain Lavoie, CEO of LexRock AI, human intelligence – which is first and foremost relational – combined with AI offers countless possibilities. For instance, ChatGPT has largely democratized generative artificial intelligence by making it easy to create text and images.

In real estate, AI would also help to:

draft impactful property descriptions
automate administrative tasks
speed up appointment scheduling
improve the marketing efforts of brokers
make it easier to draw up contracts
improve file management

These features would make it possible to better monitor real estate transactions and to speed up the scheduling of appointments using virtual assistants. Some conversational applications can also answer consumers’ questions at any time of the day or night to facilitate their decision-making.

However, AI has applications far beyond these examples: “Ask ChatGPT or another AI tool to do formulas in Excel, for example […] It is able to generate tables, analyses, diagrams and even do programming,” explains Farid Mheir.

In other words, AI would enable the automation of marketing tasks, thus allowing brokers to focus on high-value activities such as strategic guidance and support services.

	Tips and tricks The Organisme d’autoréglementation du courtage immobilier du Québec (OACIQ) recently launched a chatbot assisted by artificial intelligence. To ensure accuracy, answers are based on the Real Estate Brokerage Act and its regulations, in addition to OACIQ articles.

Can artificial intelligence predict real estate market trends?

Marie-Ève Fraser, Centris Marketing Assistant Director, points out that transparency and speed are essential in real estate transactions. Since AI is able to quickly analyze large amounts of data such as real estate statistics, prices of recently sold homes, neighbourhood trends, municipal and school taxes, etc., it would help brokers better serve the needs of consumers.

It would therefore facilitate access to information on real estate market trends and transform them into concrete indicators. This would add value to the brokerage profession by providing valuable information to help refine property searches that meet the needs of buyers and sellers.

Can AI provide more accurate property appraisals?

What is the market value of a property? Through the use of machine and deep learning algorithms, AI could perform predictive analytics and accurate real estate appraisals. “Artificial intelligence can be surprising,” states Luc Dupont, professor and researcher. “It can be intuitive and consider property taxes and assessment, both at municipal and national levels, while taking into account the neighbourhood, the latest sales, purchases and offers.”

Alain Lavoie explains that AI could analyze multiple offers on the same property by building comparison grids to find the best proposal. This is a laborious job for brokers, despite the real estate resources at their disposal.

How can AI improve real estate marketing?

AI could help brokers stand out by improving client service, drafting impactful property descriptions and assessing the market value of a home, according to Alain Lavoie. It therefore would allow for greater responsiveness and more personalized communication with clients.

Can virtual reality improve property viewings?

Virtual reality and augmented reality are technologies used to create interactive virtual tours that allow clients to view the property as if they were physically there. These may include floor plans, 3D models, videos, and a neighbourhood overview.

According to Luc Dupont, virtual reality will significantly transform property viewings, just as Google 3D did a few years ago. Moreover, he believes that augmented reality will play a major role in the years to come. Consumers are already able to drive to a new neighbourhood, stop in front of a house, hold up their smartphone, and immediately see the detailed listing!

Virtual reality could also be used in home staging – by virtually furnishing a house. The next step? Take a virtual tour of a house with a virtual reality headset. Is this what to expect from the real estate market in the coming years?

Could AI replace real estate brokers?

Despite technological advances, broker support remains essential. Besides their expertise, these professionals know how to manage the emotional aspect of a real estate transaction. “Clients say they need support, they need empathy and they need reassurance,” says Luc Dupont. These elements significantly influence the perception of consumers as to the success of their transaction.

By helping to reduce stress and anxiety, the broker offers invaluable emotional support. The relationship of trust created through interactions with clients also makes it easier to manage expectations while ensuring the smooth running of the transactional process.

As the specialist points out, brokers must adapt to the new technologies and digital tools at their disposal. Moreover, AI could help build broker skills enabling them to have smoother interactions and improve the quality of their advice. It goes without saying that negotiation, emotional intelligence and personalized service will always remain areas where brokers excel. There are so many reasons to work with a broker when selling or buying a property.

What are the adaptation challenges for real estate associations?

The real estate market is becoming increasingly complex due to its legal and financial issues. The QPAREB is aware that the use of advanced technology is leading to a profound transformation of the brokerage profession. Despite all these changes, the Association’s mission remains the same: to promote the profession of broker and enhance their contribution to the real estate process.

Keeping in mind its protective role, the Association aims to integrate AI into the world of brokers with a view to enhancing their operational efficiency while complying with regulatory requirements. However, adaptation to change and data privacy remain major challenges.

What are the ethical considerations regarding artificial intelligence and data privacy?

The centralization of information is one of the key issues for the future of real estate. Although it would facilitate communications between the different parties involved in a transaction, it raises certain ethical considerations. Moreover, consumers are concerned about the storage of personal data and the respect of their privacy.

Luc Dupont believes that cyber security will become increasingly important in the coming years. “Now I’m sharing extremely confidential information with third parties - commonly called brokers - so I expect that information to be secure,” he says. To ensure the safe development and deployment of AI, the Government of Canada has allocated a budget of $50 million to create the AI Safety Institute of Canada.

In short, although technology is developing quickly, Farid Mheir believes that their impact on the real estate world will not be immediate. For now, AI is mostly a set of tools to improve productivity. For the consumer, doing business with a broker will always remain advantageous, particularly as it guarantees a secure framework.

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