It can compute data like nobody’s business, but does a robot really know what it feels like to live in a home — in a neighborhood, near friends, and within a community?
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The personal stories of one realtor’s battles and triumphs in the highly-competitive Bay Area real estate market, seeking to illuminate and humanize the very real ups-and-downs of homeownership.
“I think you should write about artificial intelligence,” Sarah’s email said, and then she sent me the following, which ironically enough, was written by Open AI . . .
“Artificial intelligence has become an incredibly useful tool in real estate. It can analyze thousands of sales, recognize pricing patterns, and generate estimated values in seconds. These algorithms are excellent at identifying broad market trends and comparing objective data such as square footage, bedroom count, lot size, age, and recent comparable sales.
What AI cannot fully evaluate are the nuances that often determine the true market value of a home.AI doesn’t walk through your property. It doesn’t experience the quality of natural light in the living room, the privacy of your backyard, the views from the primary suite, or the feeling Buyers have when they enter the home. It doesn’t know whether your home has been meticulously maintained, thoughtfully updated, or suffers from deferred maintenance or years of neglect.
AI cannot accurately weigh neighborhood micro-locations, ie: being on the preferred side of a street, proximity to a favorite park, walking distance to school, or the premium Buyers place on a quiet cul-de-sac versus a busy corner.
Perhaps most importantly, AI doesn’t negotiate. It doesn’t understand current Buyer psychology, the competitive dynamics surrounding your property, or how strategic pricing, timing, presentation, and marketing can influence the final sale price.”
Here’s where I jump in.
What can AI do better than Sarah and I?
It can quickly compile data. Think of AI as an exceptionally sophisticated calculator. It provides a valuable starting point based on available information. An experienced local Realtor combines that data with firsthand knowledge of the home, the neighborhood, Buyer behavior, and current market conditions to determine the pricing strategy most likely to maximize your results.
In today’s market, the best outcomes are derived when combining the power of technology with the judgment and experience of a professional who knows the market at a level no algorithm can accurately replicate.
Here’s what we’ve got over robots
That’s especially true here in Piedmont where homes can look nearly identical on paper, but can vary greatly in terms of demand. This difference can translate into hundred-of-thousands of dollars when it comes to selling your home, and is something no algorithm can accurately measure. In short, architectural significance, provenance, the level of renovation, privacy, street appeal, walkability, natural light, and most importantly, how the home makes you FEEL when you walk across the threshold are not easily assessed by a bot, but ultimately DO determine value.
Through the years, I’ve often emphasized that Buyers purchase with emotion, and justify with logic. AI is excellent at the logical analysis, but our role as Realtors and trusted advisors is to understand and capitalize on the emotional and qualitative factors that algorithms cannot reliably quantify, measure, or understand.
So by all means, use AI to help you break down the disclosures, compile facts and figures, and do the heavy lifting with respect to the paperwork, but to successfully buy or sell in the highly competitive world of Real Estate, you’re going to need the help of an experienced Agent to navigate the process, which, as of yet, doesn’t live online. When it comes to buying or selling a home, there are few transactions as deeply personal or profound, and gratefully, the business of real estate still requires a human touch.
With all AI has to offer (and I’m not sure we know the breadth and scope yet), it’s doubtful that AI will ever have the capacity to deal with emotions, but I personally find it reassuring, that AI can accurately identify its weaknesses and readily admit to its shortcomings, which saves me the trouble. (If only our government could do the same.)
How can we help you?
Julie Gardner & Sarah Abel | Compass Realty
Not just Realtors, but consultants in all things house and home, we’re here to educate, explore, examine and refer . . . In short, you may count on us to take care of your home as if it were our own and anyone who knows us, knows we take pretty darn good care of our homes.
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