For decades real estate agents have been helping homebuyers live the American Dream of home ownership. However, the traditional role of residential real estate agents is being transformed, driven by the rapid adoption of AI bots and virtual technology.
Will traditional real estate agents soon become obsolete, like typing pools, switchboard operators, and film projectionists? The short answer is no — not yet. However, their future is undeniably at a crossroads.
Tasks that agents once performed exclusively are increasingly being taken over by advanced Artificial Intelligence, offering a glimpse into a future where technology reshapes how homes are bought and sold. With the rise of AI-driven platforms like Zillow, Realtor.com, and Redfin, the home-buying process has never been more accessible to consumers.
These platforms empower buyers to search for properties, compare prices, and even access virtual tours — all without the need for an agent. As a result, a growing number of homebuyers are opting to navigate the real estate market independently, relying on AI for convenience.
Nearly half of all homebuyers start their property search online. The real estate agent is generally contacted after a property has been identified to schedule an in-person interior showing. However, advancements in AI technology have revolutionized the interior viewing of a home, making it faster, more efficient, and incredibly immersive. That potentially cuts out one of an agent’s duties.
With cutting-edge tools like Matterport 3D imaging, buyers can now bypass the need for an initial in-person showing. High-resolution 3D imaging offers detailed, lifelike views of a property’s interior, allowing buyers to explore every room and detail from almost anywhere in the world.
By pairing this technology with virtual reality goggles buyers can take a virtual walkthrough that feels remarkably real. Imagine effortlessly “standing” in the living room, turning your head to examine the fireplace, or stepping into the kitchen to admire the countertops — all without leaving your couch. This innovative use of AI and VR technology doesn’t just save time; it enhances the home buying experience, empowering buyers to make more informed decisions with greater convenience.
AI technology can also identify products such as refrigerators, stoves, ovens, televisions through image recognition or visual search. These systems use advanced machine learning algorithms to analyze images and match them to a database of known items. Much more detailed information can be provided about the interior of a home through image recognition or visual search than a real estate agent could ever provide by a mere walk-through showing of the property.
Artificial intelligence assisted software can also help fill out a real estate purchase agreement, but the extent to which it can do so at this time depends on the specific software and the complexity of the transaction.
AI is a powerful tool to help the real estate industry but it can also be harmful.
The Department of Justice recently sued six of the nation’s largest landlords, accusing them of using a pricing algorithm to improperly work together to raise rents across the country. A recent antitrust settlement agreement by the National Association of Realtors introduces another challenge for traditional agents: homebuyers are now responsible for negotiating and paying their own buyers agents’ commissions. Historically, sellers have absorbed this cost through the sale proceeds, but this practice may wane as AI technology continues to make online platforms more efficient and user-friendly.
The future is clear: the emergence of AI-driven real estate platforms will provide buyers with sophisticated, data-driven insights and seamless transaction processes. These platforms promise convenience, affordability, and empowerment, aligning perfectly with the demands of modern homebuyers.
However, rather than completely replacing agents, AI is likely to augment their roles. Agents who embrace technology can use AI to enhance their services, offering clients better insights, faster communication, and improved efficiency. Therefore, to stay relevant, agents must adapt and evolve, leveraging technology as a partner rather than a competitor.
The choice is clear: embrace the future or risk being left behind in a rapidly changing landscape.
Mark Powell is a licensed California Real Estate Broker and former San Diego County Board of Education Member.
