How AI is changing the metro’s real estate scene

Artificial intelligence is growing in prevalence in the metro area’s residential real estate scene. 

Local agents are more frequently using AI to stage homes on the market and enhance the overall house searching process. 

According to one real estate agent, it gives certain homes on the market an advantage.

Clark Edwards, an agent at ARC Realty with Alabama Luxury Estates, has used third-party virtual staging AI services for years when helping clients sell their homes, especially those whose houses are vacant after moving out. 

“I think Realtors are good about helping sellers prepare their house, and Realtors can do it in different ways because you have got to have that appeal,” Edwards said. “The better the appeal, the more the interest. And as part of that appeal, that’s where virtual staging, for me, has helped clients.” 

In virtual staging, a third-party software service that uses AI receives several photos of an empty home and adds virtual furniture to help the home feel lived in. Edwards pays a third-party software service to help with this process. 

“Virtual staging, in my opinion, helps level the playing field so that those vacant houses have that appeal to look more like a model home or look like a decorator’s home just based simply on the furniture,” he said. 

Another Birmingham agent gave additional examples of AI services being applied in the industry. 

“AI is rapidly changing the real estate industry by enhancing efficiency, personalization and decision-making for both professionals and clients,” said Gusty Gulas, team leader of the Gusty Gulas Group brokered by eXp Realty. “Examples of that include AI powered real estate specific search engines, virtual tours and augmented reality, and even AI-powered business tools that agents use to manage and communicate with their client database.” 

Additionally, AI can also narrow home buyers’ search, streamlining the process. 

“ … AI could help home buyers tour the correct properties and not have all parties wasting so much time touring properties that ultimately will not result in a sale,” said Joy Buchanan, associate professor of quantitative analysis and economics at Samford University’s Brock School of Business. “Thus, real estate agents might spend less time on in-person tours and more time helping clients navigate virtual tours to eliminate suboptimal prospects.” 

While AI presents new tools and ways to perform tasks, users must also be aware of ethical considerations. 

When using AI tools, Edwards does not change integral parts of a house or property that would deceive a potential buyer and puts a note in the listing letting potential buyers know that the house was virtually staged. 

“We cannot manipulate photos of a house to change something … if there’s a cell tower in the backyard, we can’t edit it. We’re not supposed to edit that out,” he said. 

In addition to ethical considerations, people must also be aware of how AI may change certain jobs. 

“As with all industries today, there’s the potential for job displacement, which might necessitate a shift in workforce skills towards managing and interpreting AI rather than performing traditional tasks,” Buchanan said. 

While the virtual staging technology Edwards uses is not mainstream yet, he believes there will be a major shift in real estate agents using AI home staging tools more frequently in the next two years. The MLS could have an option in the future to click a box that notes virtual staging in home listings that could be shared with realtor.com and Zillow, he said. 

“This is going to happen fast … I may be on the front end of it now with several other Realtors. It will be common,” he said. 

While the future of AI and its implications are not certain, agents can still embrace the tools that AI provides to improve their services. 

“I am hopeful that the positives will outweigh the negatives as it relates to the future of AI in our industry,” Gulas said. “We should focus on the goal of creating tools and strategies that make the real estate transaction process more personalized and streamlined for our clients. For real estate professionals, staying ahead will mean approaching AI with an open mind, adopting new technologies and getting creative on how to use them to deliver superior client experiences.”