Just as AI is radically reshaping how we shop, discover new products and interact with brands, so it is transforming the homebuying journey. No more so than in how people search and engage with property listings. Agents, portals, buyers and sellers should be watching developments carefully because there will be winners and losers. (View Highlight)
The priority with any AI innovation should be simple: it must solve real-world challenges. And when it comes to buying, selling and renting property, that means saving people time and money.
Nowhere is the potential more significant than researching of key information, early in the buying process. Homebuyers routinely face stressful, costly and often deal-breaking discoveries, sometimes long after they put in an offer. It is an issue that has plagued the UK market for decades and continues to hold it back. Upfront access to vital, granular detail is fundamental to tackling the “chaotic” homebuying experience highlighted in the government’s recent consultation on residential conveyancing, where transaction times were shown to average four months — an increase of 60 per cent since 2007. With greater information available at the point of listing, this could halve at the very least. (View Highlight)
Listings portals are already using AI to help differentiate between active buyers and casual browsers (we all like to window shop now and again), and to point the former in the direction of guidance. It is also used for automated valuation models to improve the accuracy of pricing estimates. (View Highlight)
Three innovations stand out as near-term game-changers. Matterport and 3D scanning have been popular for a number of years, but AI is improving the experience. Now, these “digital twins” elevate listings beyond static imagery, replacing photos with immersive, interactive 3D replicas of a home. The power of this enhanced visual experience is already clear: at OnTheMarket.com and Apartments.com in the US, listings that use Matterport typically see up to three times more detailed views, 50 per cent more leads and far higher inbound inquiries than those without it. (View Highlight)
Emerging tech such as machine vision and Gaussian splats take things further; and beyond interiors, they are capable of producing a photorealistic view of a property from inputs such as internal measurements, still images and video clips. They automatically knit together different elements including drone footage and walk-throughs, transforming small packets of data into interactive virtual environments. Although early in development, these innovations point to a world where buyers can explore an entire setting, not just a floor plan. And where searching for a home is not just visual but experiential. (View Highlight)
These sit alongside a growing tranche of more functional interactive tools. De-furnishing technology, for example, allows buyers to strip out clutter and personal belongings from photos. This ability to visualise a room’s true dimensions and turn any property into a blank canvas is valuable. (View Highlight)
The third shift is natural language search. Traditionally, house-hunters have had to select from rigid filters and guess the keywords that might surface the right results. Natural language search interprets everyday phrases to find suitable listings. Type in “three-bedroom family house with a garage in Brighton up to £700,000” and results are instantly filtered. (View Highlight)
This type of search can also make hints and suggestions. In the Brighton case, it might point out Hove as a popular area nearby or highlight larger options for the same price a little further away.
Will AI tech replace the need for estate agents? I’m not convinced. The decline of online-only agents, which represented just over 5 per cent of all sales last year, down from a peak of 8.2 per cent in 2019, underscores the enduring demand for the personal when it comes to buying a home. (View Highlight)
But canny agents must use AI cleverly. If they analyse behavioural patterns and intelligent data, they should be able to offer more informed guidance, act more swiftly on clients’ behalf and deliver a more efficient, tailored experience. Those that embrace these new insights will maintain a competitive edge.
Agents reassure clients through stressful and lengthy transactions, interpret complex legal or technical issues, navigate chains and mediate between parties when tensions rise. Like it or not, they can’t be replaced by algorithms. (View Highlight)
