Key Points:
According to Ryan Serhant, the star of the reality TV real estate program “Owning Manhattan,” artificial intelligence (AI) should alter the way brokers compete for business by emphasizing long-term relationships more than transactions.
“Who wins if we are all employing AI and our levels of skill are equal? Speaking this past week at the CNBC Evolve AI Opportunity Summit in New York City, Serhant stated, “It’s the game of attention.”
AI is bringing about a change in the usually gradual modernization of real estate. Artificial intelligence integration is changing the way vendors and buyers communicate with agents, which is radically changing the competitive landscape of the market.
The focus of a real estate agent’s everyday activities will change as artificial intelligence (AI) transforms the way jobs like creating property listings and neighborhood studies are done.
AI is already changing real estate so that agents can focus more on developing deeper relationships with clients rather than just providing information, according to Ryan Serhant, CEO of Serhant and star of the reality TV show “Owning Manhattan.” He believes that when agents use AI and are compelled to discover new ways to set themselves apart in a more crowded market, a paradigm shift will soon occur. “Who wins if we are all employing AI and our levels of skill are equal? At this past week’s CNBC Evolve AI Opportunity Summit in New York City, Serhant stated, “It’s the game of attention.”
Since most Americans spend the most money of their lives on homes, real estate is a profession where more success may be attained with a more individualized touch from the agent. According to Serhant, the main benefit of using AI in real estate is that it frees up more time for agents to give their clients individualized attention.
According to Serhant, “the skill set alone is no longer the product in sales.” “It is the attention to the skill set.”
His own business, Serhant, has created a sales automation solution called “Simple” to handle routine CRM chores, which normally take up more than 60% of an agent’s time.
While lead generation is being streamlined, marketing campaigns are being automated, and possibilities are being identified using predictive analytics thanks to AI tools, the agent still plays a crucial role in delivering optimal performance. Relationships won’t become virtualized, according to Serhant, but for real estate brokers who welcome the AI revolution—which he believes is an essential step to take—it will build upon them.
If real-time market data and sales insights are easier to obtain, agents from smaller boutique firms might be able to compete more fairly with larger real estate companies. “In sales, there is a trust aspect. Who is the most powerful person, not the biggest, is what matters, according to Serhant.
With a larger pool of qualified agents offering more individualized services and a stronger emphasis on the client, Serhant noted that this should also help buyers and sellers of real estate.
Although real estate professionals currently have limited grasp of AI and the real estate business is still in its early phases of implementing it, there is interest. According to JLL Technologies’ 2023 Global Real Estate Technology Survey, investors, developers, and corporate occupiers identified generative AI as one of the top three technologies that will have the biggest impact on real estate over the next three years. But the poll also indicates that real estate professionals have very little comprehension of AI compared to other technologies.
Serhant predicts that over the next 20 years, agents who grasp how AI may help their company will have enormous potential to capture a sizable portion of the market.
Every technological advancement carries some risk, and wire fraud is still a significant problem for the real estate sector. Artificial intelligence will make this problem worse. The FBI revealed that wire fraud cybercrime losses increased dramatically in 2023 compared to the previous year, with real estate transactions playing a major role. Better AI technology is helping scammers in the real estate industry.
Serhant stated that while fraud cannot be disregarded, he thinks the real estate industry will adjust to the dangers associated with new technologies in the same manner that it has in the past, for example, with digital listings. “More regulations are implemented to help prevent those fakes with each new technological development,” he stated.
