It seems as if real estate companies are always looking for new ways to lower the cost of selling a home. At the same time, consumer worries about robots and big data taking over do not seem entirely unfounded. As brokerage firms worry that commission is crushing them, some companies are looking for new solutions to old problems.
This all leads to a news story in which a Long Island office reveals it has opened with the intention of using non-human real estate agents. It has already happened in California too.
Knowing all of this, what does it mean for real estate agents like you? What can we expect for the future of real estate?
Why Are Robots Replacing Real Estate Agents?
As you know, home listings may result in a commission for the real estate agent up to 6 percent. When companies rely on robotic real estate agents, commission can get down to a mere 2%. It is also clear that investors are interested in this new concept. In fact, investors have put in at least $16 million in the hopes of seeing how this develops.
Of course, California and New York are not the only ones pursuing this type of technology. Other real estate companies are gaining capital too, one company even landing commissions as low as 1.5%. It seems unbelievable now, but it almost seems as if the world is leaning toward an economy without a need for real estate agents.
How Are Robotic Real Estate Agents Working?
Of course, you are now left wondering how well these new “real estate agents” are doing. The truth is that machinery can perform a variety of tasks that the average human cannot, especially so quickly. Machines can easily compile data analyzing income levels, location, and other finances. This helps real estate companies create targeted advertisements and marketing materials to reach out to new clients.
All in all, it seems to work well for those California brokerage offices working on new techniques. Still, there are many questions left unanswered until we see more of these robots in action around the country.
Can Robots Provide the Same Service as Real Estate Agents?
Many real estate agents are left wondering if robots can really provide the same type of customer service and satisfaction as real-life real estate agents. Can buyers and sellers rely on robots the same way? In 2015, about 89% of home sellers used real estate agents to complete their transactions. This is up from the 1980s.
Ultimately, it is unclear how real estate clients will react, but it seems that the digital age makes people much more comfortable with working with computers than in the past, especially from a data-efficiency standpoint. One way to ensure that you provide continuously excellent customer service is to stay up to date on the real estate industry. Contact us for more information about continuing education to keep you up to speed.