Will AI take over RE agents, LOs, and Prop managers?

Question

With the new Ai surge, there is a prediction that these jobs will have a high likely hood of being replaced. If I want to get a job in the real estate markets is this a concern? And what else can I do in order to build a good portfolio after grad school? Should I get another job with lower risk and higher pay, or push towards becoming a successful agent, lo, or salesperson in general?

Stephen Dispensa · Answer

I could see a situation where AI takes over underwriting for titles and mortgages, maybe even conducting closing operations. As far as Agent's being replaced by an AI . . . it's an interesting take. Let's try to think of what that would like like from the client's point of view.

As a buyer, you hire an AI agent that you interact with, letting them know your criteria for homes you're looking for. The AI proposes some houses based on this criteria. You give it feedback, it refines it's search etc. You pick a house you want to see, you visit with AI still interacting with you on your smart phone. You swipe a lockbox and the AI lets you enter the house and proceeds to give you a tour.

As a seller, you hire an AI agent that draws up descriptions of your house, maybe it can even remotely pilot a drone to take photos and videos for your listing. The AI even organizes an open house and interacts with potential buyers through a screen or their smartphones

All this surface level work can probably EVENTUALLY be accomplished by AI. However, spend some time playing on AI platforms like chatGPT and Dall-E and you'll start to see where AI falls short: it can't read between the lines.

I've had clients tell me a million times what the "WANT" but you need to listen deeply to understand what they "NEED". That's what being an agent is. It's not understanding a checklist of wants, or sending someone properties, or hosting an open house or marketing a property. It's figuring out what is actually important to them, and figuring out a way to fulfill that need. As of right now, I don't see any AI or Machine Learning models that are able to come close to that.

Bruce Woodruff · Answer

Nope, not ever. You need a person-to-person interaction in many things in life, and these are a few of them. AI will never replace carpenters either.....

Matt Moreland · Answer

In my opinion, AI will take over most of the time-consuming tasks that are required of professionals in most career fields, leaving the more human-facing aspects to the people to handle. Face-to-face interactions, negotiations, soft skills, etc.

Carlos Valencia · Answer

Hello Vashist I dont believe AI will replace such important roles like Real estate agent , LO and Prop managers. These roles play a huge part in possibly the most important purchase one will make in their lifetime. If you are going to trust an AI with such a huge purchase and debt then good luck lol. Real estate has many what if scenarios and its more of an art. Theres so many moving parts and variables that AI can probably make mistake and not understand what your trying to accomplish. Can some things in real estate be automated sure. But not the whole process. I would not worry about being replaced by AI. This industry does have a lot of risk since its mostly commission only. Make sure to save and invest all the money you make during the good times to survive during the not so good times. Many people in the industry tend to go back to a w2 job as their lifeline when the market slows down. Dont put yourself in that situation you want to prepare yourself for the long term journey. Good luck in your future endeavors this a great place to start so much information available here.

@Albert Bui @Matthew Kwan

Shawn Mcenteer · Answer

Ai is great. What will take over will be the real estate agents that understand how to leverage Ai the fastest. Plain and simple there are complex scenarios that go into most real estate transactions, if Ai takes it over we have a much bigger problem on our hands. In my opinion being a real estate agent today is one of the greatest careers a committed person can make.  No joke I have a way of legally getting paid on mortgages now along with the other multiple income streams associated with being an agent its  a great industry to be in.

Bruce Lynn · Answer

It's the creatives that will likely be replaced by AI first.

I haven't heard one thing about these jobs being replaced by AI, but we've heard it all for years.....that this company, or the internet, or this tech or that tech will replace the agent....and so far I don't think that has happened.  More sales than ever, more agents that ever it seems.

Look at how the companies like Open Door, Zil Low, Compass, We Work, and the others that thought they were high tech have turned out.   Not so well I expect.  Not sure how much AI they were using, but certainly some kind of predictive models.

I think there is probably some room for technology improvements and AI enhancements.   My database is 9000 people, who is most likely to move soon?  Which of those 9000 should I call today?   I think your house is worth X, if you price it at X we have a 95% chance of selling at list price in 30 days.  You think your house is worth Y, price it at Y and you take 5 price reductions, 95 chance of selling in 180 days at X-$10,000.   So do you want to sell at X soon, or X-$10,000 and stay here another six months?

We could also certainly use some tech in title world.  Maybe some kind of blockchain answer to help alleviate or lower title insurance risk models....and therefore lower title insurance costs.  There has to be a better way than the manual title insurance searches we do now.

My question would be why are you going to grad school to become an agent, lo or salesperson?   I'm all for education, but that's overkill.  Take that money and start investing.

Erik Estrada · Answer

Like an AI mortgage broker? I can definitely see that. I agree with you. Lending is a lot like law practices. Some are good at conventional/FHA. Others are better at Non qm. and some are amazing at private money/hard money loans.

Erik Estrada · Answer

There's a lot of grey areas in lending which can make it very difficult for AI to completely take over. I mean unless everything, including title, insurance, underwriting, and processing was all AI then maybe..

But then again, there is that side of creative finance that will make it tough. Who knows, maybe an AI might be your next hard money, private money lender

Bruce Lynn · Answer

Maybe AI could help on the lending side.  Not replace the loan officer but make them better.   If AI could take total picture of the borrower and plug it in against a huge database of loan options, maybe we could do more loans and sell more houses.   I use many different loan officers now, because not all offer the same products or have the same knowledge.  This one is good with CRA and down payment assistance programs, this one is good with FHA rehab loans, this one good with condo loans, etc.    Maybe the right AI could suggest the best option for a buyer and match them up with 1000 different loan programs?

Katherine Blazer · Answer

Interesting conversation. I am not sure. I am now working with a fund that has AI doing the underwriting; however, the struggles are it doesn't step outside of what is right in front of it. So importing information correctly is essential, and there are some deals I won't take to it because of the way the borrower's financials are structured.

Will AI take over RE agents, LOs, and Prop managers?

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