By Marki Lemons Ryhal, ReMarkiTable LLC & EXIT Strategy Realty
As the real estate industry continues to evolve in the digital age, one powerful tool has emerged to alter how we do business: Artificial Intelligence (AI).
AI offers immense potential for REALTORS® to enhance their day-to-day practices, improve efficiency and deliver exceptional client experiences. Let’s explore the various AI options available, discuss important considerations when implementing them and provide practical ways to incorporate AI into your real estate business.
THE AI LANDSCAPE: EXPLORING THE OPTIONS
ChatGPT: The Conversation Guru
AI technology has expanded rapidly since November 30, 2022, when the world gained access to ChatGPT. ChatGPT stands for Generative Pretrained Transformer. In the world of real estate, I have affectionately named ChatGPT my Productive Electrifying Trained Assistant, who works 24/7, 365 days per year— provided I have reliable internet connectivity. ChatGPT is the fastest-growing tool in the history of the internet. It amassed one million users in five days and, within seven months, has 1.6 billion users.
ChatGPT, developed by OpenAI, is a cutting-edge language model that excels at generating human-like text. It’s a conversation starter and keeper, capable of understanding user inputs and responding coherently and with contextual appropriateness. It’s like having an intelligent assistant ready to communicate with your potential customers, answering their queries around the clock.
According to OpenAI’s online guide, the development of ChatGPT involves two main steps: pre-training and fine-tuning. During pertaining, the model learns to predict the next word in a sentence by being
exposed to a large amount of text data. It learns grammar, facts about the world and some reasoning abilities, but also picks up biases present in the data. After pre-training, the model is fine-tuned on a narrower dataset, generated with the help of human reviewers following specific guidelines provided by OpenAI. This process helps to align the AI’s behavior with human values and to make it useful and safe.
The benefits are multifold. ChatGPT can handle the first line of client interaction, freeing up your time for more complex tasks. It can respond instantly to frequently asked questions, schedule appointments and even provide information about listed properties.
Bing: The Search Savant
Bing is primarily known as a search engine, but it has developed AI capabilities that can be beneficial in the real estate sector. Bing’s AI can process and analyze search data, providing insights into what potential buyers or renters are looking for as well as the latest market trends.
The Pros: Bing’s AI can offer a deeper understanding of your target audience, giving REALTORS® a better grasp of what potential clients are searching for. This can help in tailoring marketing strategies and providing more personalized service.
The Cons: Bing’s AI functionality is dependent on users’ search habits, and, given its smaller user base compared to other search engines, the insights may not represent the broader market. Furthermore, interpreting this data and translating it into actionable strategies requires a level of marketing savvy.
BARD: The Data Maestro
BARD is a machine learning-based tool primarily used for analyzing large volumes of data. In the real estate world, data is power. BARD processes this data and delivers insights that can drive business decisions.
The Pros: BARD’s ability to analyze vast datasets can provide a competitive edge. From predicting market trends to determining the best price for a property, BARD can turn raw data into actionable insights. This can be invaluable when dealing with multifaceted markets like Chicago’s.
The Cons: BARD is a tool that thrives on data. However, its effectiveness is dependent on the quality and quantity of the data fed into it. For small real estate firms that might not have access to extensive databases, it could be less beneficial. Moreover, its analyses are only as good as the data it receives, making data accuracy and integrity crucial.
The impact of AI on the real estate industry is undeniable. However, the ultimate value lies not in the technology itself, but in how we utilize it. For REALTORS® in Chicago and beyond, AI is not just a tool, but a game-changing partner.
Practical Applications of AI
The integration of AI into day-to-day real estate practices can provide a host of benefits. Here are some practical ways in which REALTORS® can incorporate AI.
ENHANCED WEBSITE EXPERIENCES: Building AI-powered websites can provide clients with personalized property recommendations, real-time market data and interactive features such as chatbots for instant assistance. By leveraging AI, REALTORS® can create immersive online experiences that attract and engage potential buyers and sellers.
STREAMLINED LEAD GENERATION: AI can assist in lead generation by creating customized lead magnets based on client preferences, market trends and property data. These lead magnets can range from informative PDFs to engaging video content, capturing the attention of potential clients and expanding your reach.
INTELLIGENT DECISION-MAKING: AI algorithms can analyze vast amounts of data, enabling REALTORS® to make data-driven decisions regarding pricing, property valuation and market trends. By leveraging AI tools, REALTORS® can access insights that help them strategize effectively, anticipate market shifts and provide informed advice to their clients.
AUTOMATED ADMINISTRATIVE TASKS: AI can automate repetitive administrative tasks, freeing up valuable time for REALTORS® to focus on client interactions and business development. From scheduling appointments to managing email campaigns, AI-powered tools can streamline workflows and boost efficiency.
MARKET RESEARCH AND ANALYSIS: AI tools can help you streamline the process of conducting market research and analysis. Utilize predictive analytics platforms to gather comprehensive data on market trends, property values and competitive landscapes. This information will empower you to offer valuable insights to your clients and position yourself as a trusted advisor.
STREAMLINED ADMINISTRATIVE TASKS: AI can automate repetitive administrative tasks, allowing you to focus on more strategic aspects of your business. Explore AI-powered tools for document management, scheduling and contract preparation. By delegating these tasks to AI, you can save time, increase efficiency and dedicate more energy to building relationships and closing deals.
Before You Proceed: Considerations
OpenAI has made significant efforts to ensure the ethical use of ChatGPT. The model is designed to refuse to generate inappropriate content and to respect user privacy. It’s also important to note that while ChatGPT can generate information based on its training data, it doesn’t know anything about specific individuals unless the information is provided during the conversation.
OpenAI is also actively working on improving the fine-tuning process to reduce biases in how ChatGPT responds to different inputs. Here are some other things to keep in mind when using AI technology.
CONTINUOUS LEARNING AND ADAPTATION: Stay abreast of the latest developments in AI technology and embrace a growth mindset. Attend conferences, webinars and workshops on AI in real estate to expand your knowledge and stay ahead of the curve. You’ll be well-equipped to leverage new AI advancements as they emerge by continuously learning and adapting.
DATA PRIVACY AND SECURITY: With AI’s reliance on vast amounts of data, REALTORS® must prioritize privacy and security. Ensure that the AI platforms you choose adhere to robust data protection standards and have measures to safeguard sensitive client information.
ETHICS AND TRANSPARENCY: As AI algorithms make critical decisions, it’s essential to understand the potential biases inherent in the data they analyze. REALTORS® should strive for transparency and fairness, regularly auditing and monitoring AI systems to ensure unbiased outcomes.
COPYRIGHT AND PLAGIARISM: According to the US Copyright Office, AI-generated content cannot claim copyright. However! As a best practice and failsafe for your own protection, check for plagiarized content with tools like Grammarly or Originality.AI.
While AI offers numerous benefits, it is essential to remember that real estate is a people-centric industry. Clients value the expertise, guidance and personalized attention that REALTORS® offer. AI should be seen as a tool that enhances these qualities, not as a replacement for them.
Essential AI Tools & Platforms to Transform the Real Estate Market
AI-POWERED LEAD GENERATION AND PROSPECTING: Platforms like BoldLeads and Zurple utilize AI algorithms to identify and target potential leads, saving you time and effort while maximizing your chances of conversion.
VIRTUAL ASSISTANTS AND CHATBOTS: AI-powered virtual assistants like Structurely and Chatfuel provide instant responses to inquiries, schedule appointments and even engage in natural language conversations with potential clients, ensuring round-the-clock availability.
PREDICTIVE ANALYTICS: Tools such as Remine and SmartZip leverage AI to analyze vast amounts of data, helping you predict future trends, identify high-value prospects and make informed decisions regarding pricing, marketing and investment strategies.
SMART HOME TECHNOLOGY: With the rise of the Internet of Things (IoT), AI-powered smart home devices such as Nest and Amazon Alexa enable you to control and monitor properties remotely, enhancing security and energy efficiency.
The integration of artificial intelligence into the real estate industry presents exciting opportunities for REALTORS® to elevate their practices.
However, it is crucial to remember that AI is a tool to support and augment human expertise, not a substitute for it. Maintaining the human touch, prioritizing data privacy and being mindful of ethical considerations will ensure AI’s successful and harmonious integration into the real estate business.
HOW ARE YOUR PEERS USING AI IN THEIR BUSINESSES?
“We are using AI to edit our processes in our own voice, to read emails and as a virtual assistant. We are also using it to determine predictive analytics, read data and create marketing. We’ve developed new reports and trying to build innovative ways to work as a boutique brokerage.” – Carrie J. Little, CarMarc Realty Group
“AI has put my real estate business on supercharge mode! It has done the same for the coaching and education component of my business as well. The tasks that normally take hours now take minutes to complete. For instance, I provide ChatGPT with my goals and tasks that need to be completed in a week or so. It gives me a pretty good schedule of how to attain those tasks and action items I can implement. The AI I use for repurposing content saves me time and money. Editing video and being present on all social media while adhering to the formats of each platform could take hours. Not to mention hiring a video editor is out of the question. That problem is solved with AI. I do, however, understand the limits of AI. My clients value the human touch. AI clears up my time so that I can give my clients more of me.”
– Kimberly Offord, Coldwell Banker Realty
“ChatGPT has helped with marketing myself on social media platforms. It helps to create engaging posts that create interactions and engage people to connect. I also use it for advice on creating letters to clients that help me stand out against my competitors.” – Lina Schwartz, Berkshire Hathaway HomeServices Chicago