Why AI won't replace real estate agents (but may make them actually useful)
Why AI won't replace real estate agents (but may make them actually useful)
Let's be honest: most real estate agents are terrible at their jobs. They gate-keep basic information, add minimal value, and somehow still charge massive commissions. As someone building AI-powered property technology, I can tell you with certainty: AI won't fully replace them (yet), but it might finally force them to actually earn their keep.
The current state of real estate
The typical real estate transaction in 2024 is a mess:
- Agents withholding basic property information to force client contact
- Outdated MLS systems that seem designed to be user-hostile
- Basic property facts treated like state secrets
- Commissions that haven't changed since the 1980s
- "Expertise" that often amounts to having an MLS login
And yet, despite all this, truly automated real estate transactions remain elusive. Here's why.
What AI actually does well
AI is already transforming real estate, particularly in data processing and analysis. At Houski, we use it to:
- Fill gaps in property data
- Predict market trends
- Validate information accuracy
- Generate property descriptions
- Analyze neighborhood patterns
- Spot market opportunities
- Flag potential data errors
- Track price movements
- Monitor market activity
This is the grunt work that agents should have been doing all along, but most couldn't be bothered to do properly. Now AI does it better, faster, and more reliably.
The human element (unfortunately)
Here's the annoying truth: real estate transactions are still deeply personal. They involve:
- Life-changing financial decisions
- Emotional attachments to properties
- Local market nuances
- Negotiation psychology
- Legal requirements
- Regulatory compliance
- Risk management
No AI can yet handle the messy human aspects of a property transaction. But here's the thing: neither can most current agents.
The future is actually doing your job
The truth is, most real estate agents need to radically up their game or find new careers. The successful ones will:
Actually add value
- Provide genuine market insights
- Offer strategic negotiation advice
- Handle complex transactions effectively
- Navigate difficult situations
- Manage real relationship networks
Use technology properly
- Access comprehensive data instantly
- Provide accurate valuations
- Spot opportunities faster
- Automate routine tasks
- Focus on real client needs
Stop the bullshit
- No more information hoarding
- No more "call for price"
- No more fake urgency
- No more misleading stats
- No more template emails
What this means for the industry
We're entering an era where technology will force transparency and accountability. The days of real estate agents as glorified door-openers are ending. What's coming:
Better tools
- Comprehensive property data
- Accurate automated valuations
- Real-time market insights
- Automated documentation
- Transparent processes
Higher standards
- Actual market expertise required
- Real negotiation skills needed
- Genuine local knowledge expected
- Proper data analysis capabilities
- Professional conduct standards
Fair compensation
- Value-based pricing
- Unbundled services
- Performance metrics
- Client satisfaction scores
- Transparent fee structures
Who survives?
The agents who thrive in this new world will be:
- Actually knowledgeable about their market
- Skilled at complex negotiations
- Transparent about their value
- Tech-savvy and data-driven
- Focused on client outcomes
The rest? They'll need to find new jobs. And that's a good thing for everyone except them.
For the good ones
If you're one of the rare agents who actually adds value, our property API can help you do even better. It's the same technology powering some of Canada's most innovative real estate companies.
For everyone else: maybe it's time to update that LinkedIn profile.
The bottom line
AI won't replace real estate agents entirely. But it will force them to either become actual professionals or find new careers. And for an industry that's been coasting on information asymmetry and high commissions for decades, that's exactly what we need.
The future of real estate isn't no agents - it's better agents. Or at least fewer useless ones.
Ready to be part of the solution? Start by exploring what real property data access looks like at our property API.