By Justin Quek
As technology continues to transform the real estate industry, AI will become an integral part of the process. Real estate agents and their clients increasingly leverage AI to enhance efficiency, with industry players introducing AI-powered solutions across various platforms to support client needs.
AI is continuously reshaping the property industry, from automated chatbots to using algorithms to provide property recommendations and predict market trends. The technology will continue to remain an ever-changing tool for clients and agents.
However, it will be difficult to replace one major aspect of the industry – the human connection.
The Role Of AI And How Agents Use It
In Singapore’s fast-paced and competitive property market, AI integration has transformed how agents and agencies operate, enabling them to deliver seamless, personalised services.
With the rise of AI-powered market analysis tools, homebuyers can now make smarter and
faster decisions, as AI can analyse data in mere seconds, helping with assessing risks and
rewards to identify properties that align with clients’ financial qualifications and investment
goals.
For agents, the availability of these tools reduces the need to manually search and analyse
data. This will allow agents to save time and focus on giving advice based on their experience and provide unique insights, such as cultural nuances, which could elevate the client’s understanding compared to the repetitive responses AI might give.
In addition to reducing the wait time for clients to receive responses to their queries, these
avenues assist in elevating the client-agent relationship and experience with personalised
interactions and data-driven insights based on frequently asked questions.
With the assistance of AI, not only can it save time for clients, but it also allows agents to provide them with informed options based on the client’s unique needs.
Role Of AI In Real Estate
With time spent on repetitive administrative tasks by agents starting to dwindle with the
assistance of AI, agents can focus on building relationships and personalising services based on the client’s interaction and needs.
During the COVID-19 pandemic, the rapid advancement of AI and other digital tools has made property searches and research much more convenient for clients, with them having the option to partake in virtual tours of their ideal properties at their convenience to shortlist their choices.
Yet, while they are narrowing down their choices, agents still have the opportunity to
differentiate their services by how they provide a tangible experience that would ultimately affect the client’s decision-making process.
However, the benefits do not stop there, with real-estate platforms having been seen to
decrease commission rates after integrating their versions of AI into their consumer journey.
While at first glance, this may seem like a boon for agents and a win for clients, it is, however, truly a win-win. Agents are now able to focus their efforts on the negotiation and finishing touches of the transactions instead of handling the entire consumer journey.
Buying Homes Requires A Human Touch
As AI continues to advance, there is no doubt it will continue to integrate into our daily and
professional lives. This begs the question: can AI replace agents?
The short answer: No.
Despite AI’s numerous capabilities, the real estate market in Singapore remains human-driven. In a country that is land-scarce with high and increasing property values, purchasing a home is still a significant financial and emotional decision buyers make.
Hence, homebuyers still rely on the guidance, assistance, and experience of agents to provide their expertise based on their understanding of the market while keeping in mind the client’s financial restraints.
AI-driven tools will continue to help more clients streamline property recommendations.
However, they currently still lack the human touch needed to provide reassurance during the buying process.
While AI models enhance efficiency, they do not yet possess the empathy and intuition of
seasoned agents, whose human affirmation remains essential in easing uncertainty and
ultimately closing deals.
The Future Of Real Estate: AI And Agents
In the entire consumer journey of purchasing a property, while there are aspects that AI can enable consumers and provide a better experience, there is still room for human intervention in certain areas, which can prove to be fruitful for buyers and sellers alike.
In hindsight, AI should be viewed as a complement to existing services rather than a
replacement.
The future of AI in the real estate industry is not one about replacing agents; rather, it is about empowering them with efficient and effective tools to provide a more focused and higher-quality service to homebuyers.
As the real estate industry continues to embrace more of the digital solutions available for its agents, the value of human expertise and connections remains paramount. The future of the industry lies not in choosing between AI and human engagement but in finding the balance between integrating the two to develop the best possible experience for the client while increasing the productivity of the agents.
Justin Quek is the Chief Executive Officer of OrangeTee & Tie. Justin has a multifaceted experience as a property agent, proptech entrepreneur, and strategic manager. He championed initiatives like the Consumer Insider Series and Luxe by OrangeTee, empowering clients and agents to navigate the property sector in Singapore