The real estate industry has been slower to adopt new technologies than other comparable markets. However, recent years have seen a significant breakthrough in this area—particularly after the success of Airbnb demonstrated the undeniable advantages that technology can offer.
Despite this rapid integration, it’s important to note that technology can not completely replace the need for human intervention across the entire real estate journey. After all, real estate is very much a people’s business and always has been.
The key is to strike the right balance between technology-led automation and human intervention at each stage of the real estate journey.
During the first half of the process, prospects are still looking around and getting educated. At this time, there is no need for real-life participation from realtors. Artificial intelligence (AI) is much more effective at warming up prospects and turning them into qualified leads who are ready to buy or sell.
Once leads have been equipped with enough general knowledge and are beginning to show real interest in certain listings, that’s when agents need to intervene. At this stage, human intervention offers more value than AI-based technology and automation.
Why Human Intervention Isn’t Needed at the Start
When discussing the role of technology in the real estate process, it is important to understand the why. There are two main reasons that human involvement is not necessary during the first half of real estate transactions.
Agents and Brokers Are Overwhelmed
One of the key challenges that real estate professionals face is low industry conversion rates, reported at 0.4 to 1.2% by Realtor. This means that they need to regularly communicate with numerous leads in order to successfully gain customers and close deals. Additionally, the National Association of Realtors (NAR) reports that there are currently over 1.6 million registered realtors. Therefore, the real estate market is a very competitive one.
Due to these low conversion rates and high levels of competition, many agents and brokers can become overworked and eventually overwhelmed. Since their time and energy is limited, they will often take a one-size-fits-all approach to clients who have widely different needs.
This lack of personalization can lead to even lower conversions, as interested homeowners are less likely to see the true value of working with an agent. Specifically, it is unclear to them how hiring an agent would streamline and optimize the real estate process. As a result, leads will either move to another brokerage or even choose to sell or buy a home without an agent.
Real Estate Professionals Spend Too Much Time on Technicalities
Extensive real estate knowledge is not required to purchase the best home or sell an existing one. However, having some general understanding of the real estate process and market trends is especially valuable. This way, homeowners know what to expect throughout the journey and have a better sense of what is feasible based on their budget, needs, and the particular location.
In an effort to make leads more comfortable and knowledgeable, agents and brokers will educate homebuyers and homesellers on general procedures and local market conditions. This process can be easily customized and automated through technology. Technology and AI have already been improving learning on a broader scale. For instance, a recent study found that 71% of students reported that technology helped them engage better in course materials. This highlights the potential for better real estate lead engagement once human intervention is left out of the first half of the process.
Moreover, when agents spend all of their efforts on educating leads, they are left with no time and energy to provide clients with emotional support—and that side of the process can not be automated.
The Value of Automation
Now that we know why human intervention isn’t necessary at the start of the real estate journey, does that mean that technology can effectively fill in this gap? Absolutely. Here are four reasons why technology and automation are the ideal solution at this stage.
AI Never Gets Tired
Unlike agents and brokers, digital assistants never get overworked. This is simply because they do not need to sleep, eat, or rest like humans do. As a result, they are able to serve as many potential leads as needed to prepare them for the core of the homeownership journey.
As a result, realtors have the opportunity to save their energy for areas where human intervention and interactions are truly needed.
In addition, recent data shows that 78% of homebuyers work with the agent who responds first. Since chatbots are readily available at any given moment, this eliminates the chance of losing leads due to not responding quickly enough.
AI Technology Has Unmatched Knowledge
AI-enabled assistants use billions of data points, known as big data, when making every single decision related to lead conversion. They can analyze behavioral patterns and outcomes to better serve the needs of various clients efficiently.
This means that implementing real estate technology at the start not only saves agents’ time and energy, but also enables them to improve conversion rates.
Automation Can Be Highly Customized
Due to their analytical skills and virtually unlimited “brain” space, AI assistants can offer personalized solutions and support. Their algorithms are able to ensure that the specific needs and expectations of each client are taken into consideration. This puts an end to generic responses from realtors who do not have the capacity to provide this customized level of service.
In addition, bots leverage big data to know exactly when and how often to reach out to leads without overwhelming them by their presence or appearing absent from the process. They determine the best proactive strategy to warm up prospects and the optimal frequency and time to do so. This makes a digital assistant neither too pushy nor too distant.
Real Estate Leads Are Already Online
The internet has become an integral part of both the real estate process and our daily lives. According to NAR, 97% of US homebuyers use the internet at some stage of their home search. Furthermore, the average person spends more than 6.5 hours a day online.
Since homebuyers and homesellers are already actively on the internet, it is best to meet them where they are.
A recent study by NAR and Google found that while many homebuyers search online throughout the journey, this approach is particularly prevalent at the onset of the process. This further demonstrates that the beginning of the real estate process is the right time to engage technology and reap its many benefits.
How Landslo Can Help
Understanding how technology can support you as a real estate agent is one thing, but knowing which tools to choose and adopt in your processes is another. It is important to gain access to highly reliable technology that meets your specific needs.
Landslo is a leading real estate digital assistant that helps agents and brokers quickly and effectively get home buyers and sellers ready to start seeing listings or showing their house. There are four ways that Landslo helps optimize both the process and outcomes.
Generate Unlimited Hot Leads
Landslo’s AI assistant uses big data to know exactly when an individual is ready to buy or sell a home and be matched with an agent. Moreover, he is able to correctly evaluate the needs of a lead and the strengths of an agent to generate a perfect match that creates optimal results for both parties.
Nurture Prospects
Landslo eliminates the need for human intervention during the first half of the real estate process by providing leads with all of the necessary knowledge when they need it most. This includes general home buying and home selling tips, as well as insights on the local housing market. All of these suggestions are formulated based on the unique needs of the individual. As a result, agents can successfully warm up prospects and prepare them to move forward with a deal.
Set Appointments on the Calendar
Landslo has the ability to schedule appointments based on agents and clients’ availability and preferences. Meetings will be directly added to the realtor’s calendar to avoid the chance of double bookings.
Follow Up
Landslo follows up by sending optimized messages to prospects who have met with the agent. This keeps the momentum going and opens up opportunities for actual conversions. He also gets in touch with homebuyers and homesellers who missed their appointments to reclaim opportunities and help grow your business.
To learn more about how Landslo can help you automate the first half of the real estate process, sign up for a free demo.
When Real Estate Agents Should Intervene in Person
While technology and automation can be particularly valuable during the first half of the real estate process, this does not mean that human intervention should be entirely eliminated. On the contrary, it is important for agents and brokers to intervene once prospects have been educated on the necessary information and are ready to start viewing properties.
Since agents have not been heavily involved in the first part of the process, they will have more time and energy to support their leads and convert them into customers. The second half of the journey requires realtors to show leads the best properties for their needs, answer all the questions they have, and help them determine whether a home is right for them. There is plenty of emotional support that comes into play here, which cannot be replicated by a virtual assistant.
Once properties have been chosen to buy or sell, agents can offer indispensable support by actively guiding clients each step of the way.