Everyone knows the job market such as real estate related jobs will undergo significant change over the next decades, due to the impact of Artificial Intelligence (AI) and automation. But how much change should we expect, realistically?
How Serious will the Impact of AI and Automation be on the Real Estate Industry?
It wouldn’t be surprising if in a few years from now, buyers would be able to complete the entire process of purchasing a house online from their coach. The impact of this on the job market would lead to the complete elimination of certain jobs, or a significant change in how those jobs are done. Examples of such jobs include:
- Mortgage brokers
- Real estate agents
- Home appraisal
- Real estate lawyers
- Insurance brokers
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Even now many using real estate online tools to figure out the tasks that traditionally were done by mortgage brokers. For example you can use stress test calculator to ensure you can get the mortgage you need or use land transfer tax calculator to know your closing cost. As most people will have access to the same system which mortgage brokers have access to, mortgage brokerage is one job class that could become completely automated in the next 20 years. Even now you can find the best mortgage rates by searching reliable platforms. Therefore, mortgage brokers need to find a way to stay relevant in the coming years, perhaps through adding on newer, more appropriate tasks to their jobs as automation becomes a buzzword.
Real Estate Agents
With the advent of virtual reality, customers are able to guess what kind of property to look out for and they can use virtual reality to visit those properties. As such, the scope of work a real estate agent would engage in is significantly reduced. For example, as a potential home buyer, after checking how much mortgage you can afford, you’d become more likely to check the properties online using sophisticated photo system as well as virtual reality. Also as seller you may look for means of eliminating unnecessary expenses e.g. the use of a real estate agent to carry out tasks that could be carried out mostly by help of AI and VR. Thus, it is estimated that these jobs may vanish by 2050, but until then the main question would be what should be the commission of realtors considering the amount of the works would be less. It is clear that sellers will try to save money by negotiating the realtors commissions and hire low commission realtors. Meanwhile as a good environmental news, the real estate ads will become totally paperless since all real estate lead generation will become online.
Now many AI algorithms try to estimate the value of property using sophisticated algorithms such as Zestimate and Wowa estimate. Definitely, in the next decade these algorithms will become more accurate and, consequently home appraisal will be done with the aid of accurate AI algorithm via sophisticated machine learning algorithms that are able to evaluate pictures and videos taken from both the interior and the exterior of the properties and also by analyzing the real estate data which would be easily within reach. Photos can be taken by the current residents of the house or a designated person sent from appraisal companies. While this might not happen for the next 15-20 years, definitely, the role of the appraiser is expected to become significantly lighter. In the near future the role of a home appraiser would be mainly about understanding the different software and how to use them well.
Real Estate Lawyers
With the aid of blockchain, the role of real estate lawyers will become lighter significantly since blockchain will help to smoothen the entire process. Although we are far from the point that we don’t need real estate lawyer, their role will change significantly by automation and block chain in the next decades.
As for mortgage brokers, the world of insurance brokerage is changing. From behind the computer, a potential buyer ought to be able to get all necessary insurance quotes, and choose the right insurance company for their needs. This means that for the savvy insurance companies , it is very important to invest in great online presence and as such, they would be visible when clients have insurance brokerage needs.
Artificial intelligence, Blockchain and Automation are slowly but surely, creeping into the real estate industry and are starting to have serious impact on the jobs in this industry. While this is generally good news for potential home buyers and sellers, people who work in the real estate industry have to discover new ways of maintaining relevance in these rapidly changing times.