How Real Estate Agents are using AI
It’s summer, it’s hot, and there are only so many times we can look at charts of interest rates, home prices, and rents before those topics feel dried out.
Don’t worry, loyal readers—The Sunday Morning Post will return to those pressing questions around banking, real estate, and the economy that many of you come here for each week. But today, I want to continue last week’s discussion about AI and its growing role in the modern workplace—and in the future of professional services more broadly.
Over the past few days, I spoke with several real estate agents about how AI is already shaping their day-to-day work. Real estate is an interesting field to consider because there is a quantitative side to buying or selling a home, for sure, but the true value in a real estate agent is having someone to help navigate the whole process. A great real estate agent possesses the virtues of patience and thoughtfulness and, in many ways, needs to function more like a psychiatrist for both anxious and fickle buyers and sellers who are making one of the biggest financial decisions of their lives than anything. There is also a tremendous amount of human effort in being a real estate agent — the listings, the showings, the negotiations, helping to get closings to the finish line — it’s a lot of work!
So, where does AI fit in?
Market Analysis and Pricing: AI-driven platforms can quickly analyze recent sales, price trends, and neighborhood data to help agents determine accurate list prices or gauge the validity of offers. These tools can analyze more data points and do so more quickly than a human could practically process alone. RedFin and Zillow both have options for agents and regular buyers and sellers alike, although the feedback on both is mixed. One agent reported frustration that the Zillow Zestimates are not necessarily accurate, and they can cause issues with buyers and sellers who become too psychologically attached to inaccurate values. HouseCanary is another platform that some agents and firms are using with more positive reviews.
Lead Generation and Follow-Up: some real estate firms are starting to use automated CRMs (customer relationship management systems) to identify and prioritize leads based on browsing behavior, communication history, and other unique variables. If you were to search Google for “new home listings in my area,” for example, that search is a piece of valuable data to a real estate agency, and there are ways to buy access to it. You are suddenly a hot lead and may be peppered by ads in the columns of your browser windows, ads in your Facebook and Instagram feeds, and promotional alerts in your email inbox. Much of this is done automatically, with AI guiding the process.
Preparing Listings and Writing Overviews: now here is where things start to get really interesting. I mentioned last week about how ChatGPT can write, edit, and re-phrase text just as well as a human and, in fact, oftentimes better. This puts a lot of occupations (including that of a newsletter writer!) in peril in the years ahead. For real estate agents and others who are responsible for short write-ups and brief but compelling descriptions of things, AI can actually complement or enhance their work quite effectively, freeing up time to do other things like showings and negotiations.
As a hypothetical example, in preparing this article, I gave ChatGPT the following prompt:
Please create a real estate listing with some descriptions for the following home: built in 1965, renovations periodically, 4 bedrooms, 2.5 bathrooms, garage, nice backyard, two fireplaces, recently redone kitchen, near schools and playgrounds. Nice neighborhood. Price $475,000.
Here is what ChatGPT generated in response:
🏡 For Sale: Classic Charm with Modern Touches – $475,000
📍 Located in a Lovely, Established Neighborhood
Welcome to your next home! Built in 1965 and lovingly maintained with thoughtful updates over the years, this 4-bedroom, 2.5-bathroom residence blends timeless character with modern comfort.
Step inside to find a warm and inviting layout featuring two fireplaces, perfect for cozy evenings and family gatherings. The heart of the home—a recently renovated kitchen—boasts updated appliances, stylish cabinetry, and plenty of space for both cooking and entertaining.
Upstairs, you'll find four spacious bedrooms and updated bathrooms that offer both convenience and comfort. The garage provides additional storage and protection from the elements, while the large, private backyard is ideal for play, gardening, or summer barbecues.
Located in a friendly neighborhood near excellent schools and playgrounds, this home is perfectly situated for families or anyone looking for a peaceful yet connected lifestyle.
✨ Property Highlights:
🛏️ 4 spacious bedrooms
🛁 2.5 well-appointed bathrooms
🔥 Two fireplaces – ideal for cozy nights in
🍽️ Recently renovated kitchen with modern finishes
🚗 Attached garage for convenient parking and storage
🌳 Beautiful backyard – great for relaxing, entertaining, or play
🛠️ Renovations completed periodically for a move-in-ready experience
🏫 Located near excellent schools and playgrounds – perfect for growing families
🏘️ Set in a friendly, established neighborhood known for its charm and community feel
Whether you're hosting family gatherings in the updated kitchen, enjoying quiet evenings by the fire, or watching the kids play in the yard, this home offers the perfect blend of function, warmth, and location.
📞 Schedule a showing today and come see why this home won’t last long!
Keep in mind the above description was generated almost instantaneously. Even as someone who has been using ChatGPT to proofread, edit, and for research, I am still amazed at the performance and output. You could also just use the above as a base and go back and forth with ChatGPT numerous times, making small adjustments or adding and removing details as needed until you get to the actual final listing you want for this particular property.
There are more ways real estate agents can (and are) using ChatGPT, including automated responses to inquiries (although most still likely prefer the human touch). One of the most fascinating things I’ve seen that is being rolled out by the industry is photo enhancement. My focus on discussing AI this week and last week has been on text generation, but there are many programs out there that can easily edit, enhance, or even create images.
Consider the photo below via American SPCC. This is an AI-enhanced photo of an actual home.
The author of the article about photo enhancement at American SPCC (which I have a sneaking suspicion could be AI-generated itself as there is no human name credited) points out the many different ways real estate agents and firms are using AI-imagery to enhance photos for listings, including:
Improving the lighting
Removing clutter and other items
Virtual staging of rooms
Improving the exterior including the sky and even creating dusk sky coloration
Straightening lines and improving sharpness
Creating floor plans or showing what renovations could look like
It’s a brave new world.
I suspect photos like the one above generate two divergent reactions. For those who are quick to suspect when a photo is AI-generated or AI-enhanced, seeing an especially well-lit and well-colored image could be a turnoff, undermining trust in the listing and the agent who is connected to it. But for those who are not as savvy or sensitive, the photo above pops nicely, and is bound to generate a lot of eyeballs and positive reactions, which are ultimately key to the goal at hand, which is selling the house.
The Future
I referenced a sentiment last week that human beings are not going to be fully replaced by AI, but human workers will be replaced by other humans who are using AI. I suspect that is especially true in the real estate business. Relationships matter first and foremost, and the best agents will be the ones who deliver the highest quality and most effective service. Referrals and word-of-mouth endorsements are always going to be the lifeblood of a good real estate office or firm, and that will likely always be the case.
But agents and firms will separate themselves from an efficiency standpoint by being able to do a higher volume of work in less time with the help of AI. They will also be more effective, as these tools will help to gather and organize data and prepare it for a listing just as effectively than a human can do on their own, if not more so. This is certainly not just true in real estate, but in almost any profession you can think of.
The story of AI in real estate, and in many professions, will be this: the best results will come from a human who understands people—and who knows how to use the AI technology to elevate their work.
Ben Sprague lives and works in Bangor, Maine as a Senior V.P./Commercial Lending Officer for Damariscotta-based First National Bank. He previously worked as an investment advisor and graduated from Harvard University in 2006. Ben can be reached at ben.sprague@thefirst.com or bsprague1@gmail.com.
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