Are estate agents becoming redundant?

The use of technology in the property industry has lately become a fairly cutting-edge topic, as the real estate sector has been accused of being slow in adopting tech tools, and most transactions still occur through agents and property brokers. However, as technology has advanced, it has equipped property professionals with sharper tools to assist their trading. Notably, AI has emerged as a game-changer in commercial and residential real estate, potentially disrupting the traditional approach of estate agents while also opening up new opportunities for those who can adapt.

As technology continues to evolve, will buyers and sellers still need the services of an estate agent? With everything they need available online or digitally, could a prompt bot be the key to finding buyers their dream home and negotiating the transaction?

According to Grant Smee, CEO of Proptech agency Leadhome, the trick is finding the sweet spot. “We anticipate a strong leaning towards AI-type property transactions, especially amongst the younger generation, but the consumer will find out that although technology adds a dynamic, streamlined ‘you are in control’ aspect to buying or selling a home or property, a professional real-life person assisting you along the way is just something that cannot be replaced. According to Smee, AI-based algorithms or machine learning should help agents and their clients in valuations, creating forecasts, applying for finance, and screening buyers or tenants.

Thus, according to Smee, Leadhome, recently acquired by Only Realty Holdings, was a desirable investment, as his team realised that buying trends were shifting significantly. Smee explains that Leadhome clients experience a new-found way of buying or selling a property through online interactions. “Clients like the upfront clarity provided by the fixed fee and disentangled concept, which means that they appreciate the transparency and simplicity of the process. They also like WhatsApp conversations, online listing, intelligent search and sell (using AI to match buyers with suitable properties), access to information, and quick turnaround times.” Smee says he has noted strong favour from the market for agents embracing tech and stepping away from traditional tactics.

Through these tools, those in the property market can eliminate many unnecessary and redundant stages of the process. Smee comments that the agents who will survive will be the long-term vision individuals who embrace and use the intelligence coming their way. “We mustn’t forget that the customer is no fool”, he added,  “As professional service providers, we must be completely in tune with our clients and decipher their preferred way of doing things. The new generation, for instance, will certainly not answer a phone call, may take a few days to get back to your WhatsApp message (blue tick and all) and will sign the document, where permissible, via their phone. On the flip side, Generation X will be happy leaving you a 5-minute voice note and come into your office, expecting a cappuccino while they sign the document.”

AI adoption in the property management space also poses a threat to rental agents. Chatbots screening tenants, automated scheduled property maintenance, rent collection systems, and other tools are set to reduce the workload previously handled by human hands. However, as Smee points out, this should be seen as a major benefit for the manager or managing company, as it frees up time for more strategic tasks and creative endeavours.

The bottom line is to expect and embrace AI as it becomes a reality, enhancing the real estate sector.

Released for Leadhome by Vanessa Northing