We all love to get our work done quick and fast, and the fact that machines can get it done for us is enticing. The probability for technology to influence the real estate industry is almost on the brink of being put into effect very soon.
Robots will now act as real estate agents.
This may come in as bad news for agents & brokers as AI and big data have already begun to sell expensive residential real estate in California.
One of the companies which just began using the technology of robotic real estate agents – a table-top box, somewhat like Alexa, that answers questions asked of it by the potential customers. It seems to be updated with every single detail such as which home had been revamped recently to where the nearest hospital is.
This robotic real estate agent is known as REX and has been positioned by Real Estate Exchange (REX) which is an online marketing platform established by executives of Goldman Sachs, Jack Ryan.
Since it is still undergoing more development, REX cannot perform certain things as a human could, currently it has been placed online on the website and greets prospective customers. REX will also hire licensed brokers and salespersons but instead of commissions, it pays them salaries.
REX is expected to hire 10 salaried estate agents before the year-end (2o17) and about 50 more in the next year. The potential buyers and the sellers would be guided by these agents through listing and advertising a home and bargaining a sale, however, most of the work would be done by REX.
Not only is REX quite different in its workings, it also did something quite unusual – it doesn’t use the MLS (Multiple Listing Service). Instead, REX uses ads and listings on websites like Zillow. For the seller/buyer, the commission REX asks is quite less at just 2% as its fees (citing heavy reductions in operations). REX is already providing services in California and Nassau County.
Besides offering customers options of lower prices REX uses the help of analytics to locate potential customers and then convince them into making a deal with their company.
Besides Alexa from Amazon, Watson of IBM and Google AI, REX is also working with its own analytics and will follow potential buyers as they shop from their computers by displaying dedicated ads while they are browsing the web.
The head of Rex’s digital marketing, Ari Sternberg says that REX collects big data online of prospective buyers and targets them in a way through ads that they definitely click on them. This is because they know who the customers exactly are and what they are looking for.
As soon as Rex locates your IP address it can scan your house in detail and with the help of your online purchases and searches that you make on the Internet, it gathers what sort of life you are having presently.
As per the observations of Jack Ryan, a homeowner might see the house online and request their broker to show them around it and there may be chances that he would be unable to show it to them for it may be sold already or for some other reason. But since REX already captured the IP address they can call over the broker’s client to their open house.
The millennials may be quite attracted to the AI services once ready to purchase or perhaps rent a home.
According to data from 2016 sale of homes, accounted by NAR (National Association of Realtors), 8% sales were from For Sale by Owner sites while 89% sellers used the services of a broker to buy their dream home.
REX is working hard to boost the 8% by trying to be super intelligent.
According to the research of REX, it found an average customer for $500,000 home stays within a range of 12 miles and it is 18 miles from 1 million homes. However, customers whose budget is $50 million are all global buyers and already own a home worth not less than $10 million.
Consumers can expect to save about $25,000 if they are using the services of REX, which is less than half of what they would now.
There have been brokers who have tried to offer services for less earlier but they failed to offer excellent personal services thus crumbled away soon.
REX seems to be doing quite a satisfactory job – a home seller from California said that its services were much better than the brokers whom he approached earlier to have his home sold. Home seller Bob Simpson revealed while selling his home of $518,000 he saved $21,000 by using the services of REX. He also said how he loved the idea that his for-sale sign listed a webpage dedicated entirely to his home unlike in a brokerage website. He also got immediate answers to his questions he added.