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August 26, 2025August 26, 2025

AI and Real Estate Transactions

Pros and Cons of AI and Real Estate transactions

Artificial Intelligence has become part of everyday life. People are using AI to plan meals, write emails, and even help with schoolwork. The trend is now to ask AI about real estate: “What’s my home worth?” “What kind of loan should I get?” or even “Which real estate agent should I hire?”

AI can be a powerful tool, but is it the right way to handle big real estate questions? Let’s break down the pros and cons in simple terms.

Why AI Can Be Helpful

One of the biggest advantages of AI is to quickly provide one answer from an internet search. If you want quick answers about average home prices, what closing costs are, or the steps in buying a house, AI can give you one answer in a few seconds. That’s a lot faster than sifting through dozens of websites.

AI is also always “on.” You don’t need to wait. Whether it’s late at night or early in the morning, you can get one explanation anytime.

Another plus is how AI simplifies complicated topics. Real estate has its own lingo. Concepts like “contingencies,” “escrow,” or “earnest money” can be broken down into plain English, which is especially helpful if you’re brand new to the home buying and selling process.

And finally, AI can serve as a useful starting point. Before you meet with a real estate agent, you can explore the process of buying and selling a home with AI to learn the basics. This can prepare you to ask specific questions from a professional about your situation.

Where AI Falls Short

AI also has limitations, especially when it comes to specific and personal decisions about local real estate.

First, AI isn’t always accurate. It pulls from a wide range of information, but it doesn’t always know if what’s shared is current, specific to your area, or correct for your situation. For example, real estate laws, property taxes, or rules about contracts vary widely from state to state, and can also be different within any specific state, depending on the county or city. AI might give you a broad answer, but it could mislead you because the information is not pertinent to your situation.

Second and most important, AI can’t replace human experience. Choosing the right agent, deciding what price to offer, or knowing how to negotiate are things that require local knowledge, judgment, and real-world experience. No algorithm can read the room during a negotiation.

Another drawback is the lack of personal touch. Real estate isn’t just about facts and figures; it’s about personal connection. Do you need a bigger home for a growing family? Are you looking for a place close to work? Do you want an investment property with good rental potential? A skilled agent asks these questions and tailors advice to you. AI cannot connect on the same level as another person.

And perhaps most importantly, not all real estate agents are the same. Every agent has their own strengths, style, and way of working. Some are better with first-time buyers, while others shine in luxury markets or investment properties. Finding the right one is truly a personal choice. Choosing the right agent is about trust, communication, and whether you feel comfortable working together. AI can suggest what to look for, but it can’t tell you who will truly “click” with you.

The Bottom Line

AI can be a fantastic tool for learning. It’s fast, easy to use, and helps you cut through some of the confusion that comes with real estate jargon. If you’re just starting out, it can help learn about the home buying and selling process.

But when it comes to the big stuff, such as choosing an agent, making an offer, or selling your home, there’s no substitute for the human expertise. A trusted local agent who knows the market and understands your goals, someone who can guide you through the details in a way that a AI can’t.

Think of AI as a reference book, much like an encyclopedia. It can show you the general landscape and explain the rules of the game. But when it comes to actually making offers, negotiating, and closing the deal, you’ll want a real estate professional by your side. A key take away is that finding the right agent isn’t just about teams, sales stats, and an AI reply, it’s about finding the person who fits you best for your situation.

By Dan Krell
Copyright © 2025

Disclaimer. This article is not intended to provide nor should it be relied upon for legal and financial advice. Readers should not rely solely on the information contained herein, as it does not purport to be comprehensive or render specific advice. Readers should consult with an attorney regarding local real estate laws and customs as they vary by state and jurisdiction. Using this article without permission is a violation of copyright laws.

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February 14, 2021February 14, 2021

3D Printing Home Building

When you think of modern home construction, you typically think about (wood) sticks and bricks. And it’s been that way for decades. But since its introduction in 1983, tech visionaries thought about using the 3D printing to build houses. What was once a futuristic dream of 3D printing home building is now a reality.

In his 2017 commentary, Sean Mashian lays out how 3D printing will change the landscape of home building and real estate (The impact of 3D printing on real estate; Cornell Real Estate Review; 2017. 15, p64-65.). He discussed how the technology was used and the potential for the housing industry. His assessment was that large scale commercial 3D printing technology was rudimentary and expensive. Instead, the industry mostly used the tech for smaller projects, such as scale models for new home developments. However, like any new technology, he expected large scale commercial 3D printers to become more commonplace as the tech emerges. He predicted the potential of 3D printing growth, just as internet tech and e-commerce grew in the early 2000’s.

In order to grow the technology of 3D printing home building , pioneers like Apis Cor (apis-cor.com) are needed. Apis Cor claimed to be the first company to develop and deploy a mobile construction 3D printer capable of printing a complete house on site. About five years ago, Apis Cor made headlines when they “printed” a house in 24 hours. Although. the one level 400sf home was rudimentary, it demonstrated the flexibility of the 3D printing technology. The home was 3D printed completely on site and in mid-winter.

The 3D tech is already being used in some manner in the housing industry. A 2013 article in Kitchen & Bath Design News (Design and the 3D Printing Revolution) reported on design companies that were using 3D printing to manufacture personalized home fixtures. And in 2019, the National Association of Homebuilders reported that 3D printing tech is already being used by a small number of builders to produce architectural details for homes.

A January 11^th National Association of Home Builders release discusses how 3D printing can change the industry (How 3D-Printed Structures Could Disrupt Housing; nahb.org). Although the NAHB states the tech is still developing, there is a belief that it will address several concerns about housing:

First, it will make homes more affordable. Currently, 3D printed homes are relatively small, which reduces materials and time to build the home. Automation significantly reduces labor costs. Additionally, some 3D printed homes can be built without a foundation, which also reduces time, materials, and costs.

Second, home building will be more sustainable. The technology inherently has little waste. Each house is “printed” with the necessary material. Besides incorporating green technologies, the structure is printed in such a way that it improves energy efficiency.

Third, 3D printing home building designs are easily changed in an automated system. The design flexibility can make numerous shapes that can address fast paced changes to the housing market.

And last, building delays are almost eliminated. Whether the houses are printed on site, (such as Apis Cor’s technology) or built in a facility, the rapid building time reduces weather impact. Depending on the home size and printer capability, a home can be built in as little as 24 hours or up to several weeks. This type of productivity greatly reduces time and delay costs due to labor and materials.

By Dan Krell
Copyright © 2021

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December 29, 2018July 22, 2019

Real estate futurism

Humans are fascinated with the future and technology. Whether it’s the promise of hope and deliverance, or the warning of a dystopian nightmare, there will always be a continued conjecture of the future. And it’s no different with real estate. Real estate experts also like to dream about the future and technology, and depict real estate futurism

Housingwire is one the foremost authorities on anything real estate and housing. It also is a leader in reporting about real estate technology too. This year’s reporting of Housingwire’s Tech100 Awards caught my attention. But it wasn’t about some shiny new technology that is touted to be “the next big thing.” Instead, it was the real estate futurism prediction and where real estate technology is headed (Expert: Here’s where real estate tech will be in five years, And will AI replace humans?; housingwire.com December 21, 2018).

Although the article was only one expert’s opinion of real estate futurism, it’s telling nonetheless. The expert sees that tech assisted appointments and automatic doors are technological advancements. Additionally, home buyers will be using virtual reality to view homes. He sees that consumer searches are geo-located. Big data will know what they want based on their online behavior, and so on. If his list of the industry’s future tech sounds as if it came from the early 2000’s, you’re not alone. If you think about it, much of this five-year tech advancement prediction has already been around in one form or another.

This expert’s vision of real estate tech in the not-so-distant future is basically more of the same. It makes you wonder if the real estate industry is focused on using shiny things to get people’s attention (but really doesn’t do much to make the transaction easier and safer). This interview also signifies that real estate futurism is relegated to existing tech. In other words, real estate technology is not exclusive unto itself, but is only the application of existing technology.

Predicting the future is difficult and requires the ability to depict a new paradigm. Spyros Makridakis, an expert in understanding future technology, writes that tech advancement depends on four things; (1) the benefits of the technology, (2) funding to create/implement the technology; (3) growth in funding the technology; and (4) the urgency to solve a problem (Forecasting the Impact of Artificial Intelligence, Part 5:The Emerging and Long-Term Future; The International Journal of Applied Forecasting; 2018; issue 51 p36-41). Makridakis’ vision of future technology will not be about shiny things that make you go “ohh,” but instead how you interface with technology.

Makridakis’ prediction for the future is that you won’t be using computer screens like you do today. Instead, you will have a type of wrist device that projects holographic images that will “blend virtual and augmented” reality. These devices will be like your smartphone but allow holographic communications. Additionally, brain-computer interfaces will allow you “unlimited access to computer power.” He believes that this paradigm shift will affect how you work and interact socially. He also believes that robots will become personal assistants and be assigned the boring and uninteresting work.

Real estate futurism based on Makridakis’ futuristic thinking could mean a slightly different home buying and selling process. Your augmented brain-computer interface will allow you to process information about a home significantly faster, as well as digitally sign AI prepared contracts and closing documents. And instead of scrolling through pictures or wearing a virtual reality mask, you will be walking through holograms of homes right in our living rooms projected from your wrist.

Original located at https://dankrell.com/blog/2018/12/29/real-estate-futurism

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August 12, 2018July 21, 2019

Real estate big tech

The business of real estate seems to be turning away from actually selling homes and wants to be housing big tech. Nothing is as it seems. Real estate companies are now technology companies, and technology companies want more of your information to control your opinion and behavior.

How much control should big tech have over what you think and do? It’s a compelling controversy that is currently being debated. It’s not clear when the discussion exactly began, but there have been many who have been wary of big tech for decades. Even President Eisenhower had something to say about it in his second 1961 farewell speech (the first being famous for his warning of the military-industrial complex) he also warned. “…we must also be alert to the equal and opposite danger that public policy could itself become the captive of a scientific-technological elite.”

Once called paranoid, those who feared big tech are being vindicated by the acknowledgments of data collection and leaks to third party users. Additionally, reports of censorship and behavioral control are slowly making its way to public awareness. Sounding like a movie plot about a dystopian future, consider the internal Google video that was leaked by The Verge earlier this year (Google’s Selfish Ledger is an unsettling vision of Silicon Valley social engineering; theverge.com; May 17, 2018). The leaked video (seen here) discusses the use of data to not only change opinions and shape viewpoints that correspond with the company’s values, but to change behavior and shape society to “a directed result.”

Imagine being told where to buy a home, and which real estate services to use based on your behavioral data. Big tech’s “guiding” of real estate consumers to homes and neighborhoods based on behavioral modeling algorithms seems like it could save time and effort for the consumer. But it could also be considered steering, which is considered to be a fair housing no-no.

real estate big tech — Real estate tech (infographic from nar.realtor).

But big tech wants more of your data, at best to improve modeling algorithms. According to a report in the Wall Street Journal (Facebook to Banks: Give Us Your Data, We’ll Give You Our Users; wsj.com; August 6, 2018), Facebook has been in conversations with banks to access users’ accounts and transactions. The social media platform denied the story the next day. However, the Wall Street Journal reporting by Emily Glazer, Deepa Seetharaman and AnnaMaria Andriotis is compelling given the report’s sources. Some experts are also talking about Facebook wanting to become a consumer marketplace.

Zillow is also allegedly expanding its data usage. Zillow announced this week of their acquisition of Mortgage Lenders of America. The purchase is said to boost Zillow’s “Offers” program, offering mortgages for home buyers making offers on the site. However, GeekWire reported (Zillow acquires Mortgage Lenders of America, posts $325M in Q2 revenue, up 22%; geekwire.com; August 6, 2018) Zillow’s CEO Spencer Rascoff as saying in the company’s second-quarter earnings call:

“We’re taking our huge advantages, which are our audience and our brand and our resources, and expanding into other business vertically… .”

And it’s not just big tech that wants your data. Traditional companies are realizing the potential of behavioral modeling and guiding consumer behavior. Inman reported earlier this year that co-founder Gary Keller proclaimed Keller Williams a tech company (What the hell is Keller Williams doing? Lingering questions from the Vision Speech; inman.com; February 28, 2018). Keller proclaimed:

“We are a technology company. No. 1 that means we build the technology. No. 2 that means we hire the technologists … We are not a real estate company anymore.”

Big tech is losing touch with the average consumer. Home buyers and sellers don’t want to be told what to do. Rather, they want to make organic decisions. While large real estate brokers seem to be moving away from actually selling homes to be real estate big tech, home buyers and sellers are turning to human real estate agents. Instead of algorithms, buyers and sellers value trusted Realtors to help with the process.

By Dan Krell.
Copyright © 2018.

Original located at https://dankrell.com/blog/2018/08/12/real-estate-big-tech/

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March 2, 2018November 23, 2021

Technology is the new real estate

I recently wrote about companies that are going through identity crises. Are they real estate companies or are they technology companies? Regardless, the big name real estate disruptors have changed the industry. They have given home buyers control of their home search. They have also given home sellers choices of real estate services and commissions. But the recent trend of real estate companies touting themselves as technology companies may be a signal that large real estate brokerages want more change. But are they mistaking the map for the territory?

Are real estate brokers still interested in selling homes?

technology and real estate — Technology (infographic from nar.realtor)

Last November, the real estate brokerage Compass made headlines because of its ability to raise massive capital investments. In a Compass press release, the company announced raising $100 million in capital (Compass Raises $100 Million in New Investment Round; prnewswire.com; November 8, 2017). The colossal investment comes one year after raising $75 million in capital. The capital is to be used for expanding brokerage offices in new markets as well as “building new technology.”

Compass’ vision is to be “the world’s largest real estate platform.” The press release quoted an investor saying:

“Compass has proven that its technologically advanced platform is incredibly attractive to the industry’s top agents…Their position at the intersection of technology and real estate gives them the unique opportunity to be the single largest holder of real estate data, ushering in a new realm of possibilities for agents and clients alike.”

In a similar move, RE/MAX announced this week of its purchase of booj, a technology company. In a February 26th RE/MAX press release, the acquisition is touted as means to “…deliver core technology solutions designed for and with RE/MAX affiliates. The objective: technology platforms that create a distinct competitive edge for RE/MAX brokerages and agents…” (RE/MAX Takes Bold Step to Provide Best-in-Class Technology; remax.com).

Is the shift to being a technology company about revenue?

It would seem that recent industry moves may indicate that real estate brokers would prefer to be technology companies. However, the latest trend may be more about generating revenue, raising capital and investor relations than it is about selling homes.

Lizette Chapman’s report on the matter is revealing (Tech Startup or Real-Estate Broker? Fidelity Values Compass at $2 Billion; bloomberg.com; November 8, 2017). Chapman likens Compass to Redfin saying that the company “is almost certainly unprofitable,” although generating massive revenue. In her reporting, Chapman quoted a seasoned real estate agent who was briefly with Compass, “The technology was mostly marketing tools…It was sleek, but I can’t say it was different from anything else out there.”

Although many home buyers and sellers turn to the internet for housing information, they don’t wholly rely on technology when choosing real estate services. According to the National Association of Realtors 2017 Profile of Home Buyers and Sellers (nar.realtor), a majority of home buyers and sellers hired agents with whom they worked in the past, or were referred by friends and family.

The problem with technology is that humans are the ghosts in the machine. The human element, contrary to technology, is erratic, messy, and highly subjective. The human element remains at the core of home buying and selling.

Many consumers recognize that tech and the internet are tools that are often used as gimmicks to get their business. Technology is not a substitute for an experienced real estate professional who can also empathize along the home buying/selling process. The turn to tech only underscores that residential real estate is still a personal business.

Choosing a real estate agent

Choosing a real estate agent is much like searching for a home. It is an objective and subjective process.

The real estate agent is supposed to be a fiduciary that is supposed to protect your rights and assets. A real estate agent is supposed to be honest and act with integrity. They should act in your best interest.

The quality of an agent is not dependent on the firm. Quality agents are affiliated with almost all brokers. If you haven’t already, ask friends and family for their recommendations.

Prepare questions to interview several agents. The purpose of the interview is to learn about the agent’s professionalism, training, and knowledge base. You get to hear about their experience, and get a feel how they interact with you. Besides asking about their experiences, ask how many years they have been selling homes, and if they full time agents.

If you live in an area where agents are licensed in multiple jurisdictions, ask about their experience in the area you plan to buy/sell. Just because they have a license to sell homes doesn’t mean they have extensive experience in that jurisdiction.

Original published at https://dankrell.com/blog/2018/03/02/technology-new-real-estate/

By Dan Krell
Copyright © 2018

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