AI use in real estate will refine the properties that estate agents show people. (Image by Nicola Mawson, with Freepik and GenAI)
Gone are the days of real estate agents bombarding people with flyers and cold calls, as ‘bionic’ agents use AI to sift data, answer queries and avoid showing buyers properties that are far from matching their needs.
Lew Geffen Sotheby’s International Realty says a bionic agent will use AI to identify potential sellers, streamline lead generation and shift the industry towards more precise, data-driven decision-making.
This comes as the McKinsey Global Institute says generative AI could generate $110 billion to $180 billion or more in value for the real estate industry over time.
Yael Geffen, CEO of the real estate agent, notes that always-on AI agents are increasingly handling initial engagement, managing queries, qualifying leads and setting up interactions before a human agent becomes involved.
The traditional volume-driven model, where more calls and more showings increased the chances of a sale, is no longer viable. Instead, predictive analytics is being used to identify likely sellers in advance, says Geffen.
There are already tools such as Lightstone’s “propensity to sell” modelling, which analyses datasets, including bond cancellations, holding periods, demographic shifts and renovation trends to identify sellers before they enter the market. “We’re moving from farming to sniping,” he comments.
According to McKinsey, new data sources such as resident surveys, mobile phone signal patterns and local business reviews are enabling more granular, hyperlocal insights, alongside traditional macro-economic and demographic indicators.
“What this tech means for agents is getting a list in their areas of 150 addresses that are calculated to be statistically more likely to go on the market in the short- to medium-term,” says Geffen.
AI-powered tools are also changing how agents and clients interact. LOOM’s global virtual agent, for example, enables real-time engagement via text or voice, assisting with property information, transaction support and meeting setup, Geffen notes.
AI-driven tools are increasingly acting as the first point of contact, often accessed via QR codes, enabling continuous engagement regardless of time, he adds.
The Real Estate Institute of Canada details the use of AI in real estate. (Image made with GenAI)
“These tools handle the first-level questions, qualify leads and gather initial information before a human agent ever gets involved.”
As a result, agents are able to enter conversations with a clearer understanding of client needs, budgets and what they want, Geffen points out.
A significant shift is also taking place in how properties are discovered, driven by generative engine optimisation, requiring listings and content to be structured for machine-readable search.
When users query AI platforms such as ChatGPT or Google Gemini looking for specific homes, results are synthesised into direct answers rather than lists of links, potentially bypassing traditional property portals, Geffen says.
“Property portals are absolutely still relevant. But if your content isn’t structured in a way that AI can read, summarise and trust, you’re invisible in the new search economy. Your listings need to speak machine as fluently as they speak human.”
This requires agencies to rethink digital strategies, focusing on structured data, clear content and authoritative sources that can be interpreted by AI systems.
Despite these changes, Geffen says the role of the human agent remains central.
“I don’t ever see realtors disappearing from the picture, because if COVID-19 taught us nothing else, we learnt that humans are sociable animals and we need human interaction – especially if that human happens to be a highly-trained property professional.”
Traditional elements, such as show houses and physical marketing tools such as sales boards, will continue to play a role alongside digital advancements, says Geffen. “The agent who embraces the tools will outperform the agent who fears them, every single time.”
