Revealing the Reality: Why AI Can Never Replace Real Estate Agents and Brokerages?

You must be living under a rock if you’re unaware of how artificial intelligence (AI) has been replacing jobs that were previously performed by humans. Goldman Sachs says that by 2030, AI can replace the equivalent of 300 million full-time jobs.

Looking at these whopping statistics it’s obvious for you to wonder “if AI can completely replace the jobs in the real estate brokerages in Mississauga down the line?” As you read this guide, you’ll realise that the answer to your question about AI replacing your real estate job is “not likely.”

AI Won't Ever Replace Real Estate Agents, and Here's Why

1. Human Intuition

Homebuyers often have a clear idea of what they want in their would-be home. With the help of technology and AI, homebuyers think they can easily input these property requirements and find their dream home.

To most extent, this is indeed true - AI finds properties that match the buyer’s wish list 100% and shows it to them within seconds. However, AI also immediately eliminates the properties from the search that don't match the homebuyer’s criteria even minutely. For instance - if a homebuyer puts their maximum budget at $700, the AI property listing platform may remove a property that may be $750 and could have been the perfect home for the buyer.

However, the professionals of a real estate brokerage thoroughly understand what the homebuyer wants and doesn’t want in their future home in the first meeting itself. And they sometimes show homebuyers listings that on paper don’t seem like the perfect home for the buyer but the expert’s intuition tells them it’s a match - and it often is.

Real estate agents have experience helping home buyers find their dream home for years. So, they know even if the homebuyer says this aspect is a non-compromise deal, they are sometimes willing to budge to get the perfect home. For instance - the homebuyer may say $700K is the final price they can afford. But sometimes they may be willing to pay a few hundred dollars more for a home feature or location benefit. This is something real estate agents recommend based on their gut which robots cannot.

2. Reasoning

A stark difference that you’ll notice in the real estate industry now and 10 years before is the amount of data available. Before, it was only the real estate professionals who had access to the limited housing market data. Fast forward to today, homebuyers and sellers have all the data they need at their fingertips.

However, this real estate data is meaningless for a homebuyer and seller if they do not have an expert by their side who can translate the data for them. This is where real estate professionals win the game against AI big. Through reasoning, the expert professionals of a real estate brokerage in Mississauga help homebuyers and sellers understand the property data and use it to their best advantage.

3. Empathy

Selling and buying a home ranks high in a person’s most momentous events list. So, it certainly helps when a real estate client is receiving advice from someone who has helped others through this same journey.

AI doesn’t own houses, hasn’t tossed and turned over finding the perfect property, struggled with a house sitting on the market, or lost sleep over a bidding war. And most importantly, they cannot give words of compassion and empathy, like real estate professionals.

Empathy can also go a long in today’s hot housing market with low inventory. There are a lot of properties in the market with multiple price offers on the table. So, it has become quite common for a homebuyer to lose out on a bidding way and feel discouraged from proceeding ahead. Compassionate Realtors of a real estate brokerage, unlike robots, actually have a sensitive chip and help real estate clients process the setbacks and get back on track.

4. Emotions

The home-buying or selling process is a journey based on emotions. At times, when a homebuyer finds a perfect property or when a home seller gets a compelling price offer, they may get all visibly excited. However, there may be certain hurdles because of which a client may want to move out of the offer but can’t express it openly.

Expert Realtors can read the body language of their clients instantly. Apart from understanding the shift in their client’s body language, real estate experts understand the emotions behind those changes.

However, there’s no computer code for being able to determine what a client wants for the process ahead based on their emotional responses. That’s a type of skill professionals of a real estate brokerage in Mississauga learn through years of experience.

AI and Any Other Technology Is Not a Realtor's Enemy

Let’s admit it - the emergence of AI and all other technological trends has made a real estate agent’s job much easier and more efficient. First off, AI has been a powerful tool in helping real estate professionals identify their ideal clients. They can instantly analyse and identify hundreds of data points and distinguish a serious buyer or seller from a window shopper.

Secondly, AI has empowered the professionals of a real estate brokerage with accurate and data-driven market insights. By analysing vast amounts of information from different sources, AI helps real estate agents identify housing market trends and predict market fluctuations.

Next, AI-powered chatbots and virtual assistants have enabled property brokerage firms to provide round-the-clock customer service without any human intervention. Because of this 24/7 availability, brokerages have been able to enhance customer satisfaction and minimize response times.

To Sum Up

Hopefully, your worries about AI taking away your real estate career have been cleared away after reading this blog. AI can never replace the human touch needed to navigate the complexities and intricacies of the home-buying and selling process. A real estate agent’s expertise, emotional intelligence, and local market knowledge will continue to be crucial in real estate transactions in the foreseeable future.

However, this doesn’t mean your real estate brokerage in Mississauga shouldn’t bother to embrace AI. Real estate agents all over the world are using AI to their advantage by automating and streamlining their work, through its market insights and data analysis feature, and for identifying leads. So, if you don’t want to fall behind the game, embrace AI and other tech tools that will emerge in the real estate industry down the line.