The real estate industry is changing fast.
Artificial intelligence (AI) and new tech are shaking things up.
They're changing how we buy, sell, and manage properties.
At our most recent Ylopo Success summit, our CEO and co-founder Howard Tager, shared some ideas during his powerful keynote presentation.
He talked about what's coming next and how agents can do well in this new world.
Watch his talk in full below.
Let's dive in and see how these new tools are changing the real estate game.
The Bottomline:
AI and emerging technologies are transforming real estate. By embracing tools like AI-powered lead generation and virtual property tours, agents can enhance efficiency, deliver exceptional service, and thrive in an evolving market by amplifying their unique human skills.Chapter 1: AI and Automation: Big Changes Ahead
But first, let's talk about where things have come to a head recently.
AI and automation aren't just buzzwords anymore. They're here, and they're changing how we do real estate.
Smart software and cool new apps are making boring jobs easier. They're helping deals go smoother and faster than ever before.
But that's not all. These tech marvels are giving us new insights into market trends and what buyers want.
They look at data from virtual tours, mobile apps, and online tools. This helps agents make smarter choices about pricing and marketing.
To illustrate, let me paint you a picture of how AI is revolutionizing the real estate game.
Sample Scenario: The AI Advantage in Real Estate
Sarah's a savvy real estate agent in Austin, Texas. She's seen her fair share of ups and downs in the market. But recently, she discovered a powerful new tool in her arsenal: AI.
This cutting-edge technology analyzes past sales data, local economic trends, and even social media chatter. It's like having a crystal ball for the housing market!
Last month, Sarah's AI tool uncovered a fascinating insight. Young buyers in one particular neighborhood were all abuzz about eco-friendly homes. They wanted green features and sustainable living.
Sarah sprang into action. She advised her sellers to give their house an eco-makeover. New energy-efficient appliances, water-saving fixtures, the works!
The impact was jaw-dropping. That eco-friendly house? Snatched up in a mere 5 days. And get this - the sellers pocketed an extra 8% above their initial asking price. Ka-ching!
Sarah's story perfectly illustrates the power of AI in real estate:
Identifies emerging trends and buyer preferences
Enables data-driven decision making
Helps agents boost sales prices and commissions
In today's market, AI is the secret weapon agents need to stay ahead.
It's not just about working harder, but working smarter. Leveraging advanced tech to gain an edge.For agents still stuck in the old-school grind, it's time to embrace change. Time to level up with AI.
The future of real estate is here, and it's powered by data and algorithms.
Seller Experience 2.0
Our AI-driven Seller Suite uses Cash Offers to forever change how you generate and nurture seller leads.
Chapter 2: Embracing Digital Solutions: The New Must-Haves
The real estate industry is being transformed by the latest technological trends, with mobile apps, big data, and smart home tech leading the way.
Agents who leverage these innovative tools can streamline their processes, enhance client communication, and deliver exceptional experiences.
Immersive Virtual Property Tours
Virtual reality (VR) has revolutionized property showcasing by providing immersive virtual tours.
Studies project that VR in real estate will reach a market value of $2.6 billion by 2025, highlighting its significant impact on the industry.
AI-Driven Marketing Tactics
Artificial intelligence (AI) is reshaping marketing strategies in real estate by enabling personalized campaigns and identifying high-potential leads.
This advanced technology empowers agents to optimize their marketing efforts for maximum effectiveness and efficiency.
Chapter 3: Tech and the Future of the Industry: A Big Shift
As AI and automation keep getting better, they'll change every part of real estate. This includes fancy business properties and cozy family homes.
Agents who adapt to these changes won't just survive - they'll do really well in this new tech-driven world.Emerging Technologies to Watch
Blockchain for Property Deals: This could make property records and deals safer and more open.
Internet of Things (IoT) in Property Management: Smart sensors and connected devices are changing how we manage and take care of properties.
5G and Its Impact on Real Estate: Faster, more reliable internet could change where people choose to live and work.
This is all to show how many aspects of real estate - not just on the buying and selling side - are all being impacted by new tech.
But we've yet to address the million dollar question: how does this impact your bottom line?
Chapter 4: Realtor Market Outlook: Reasons to Feel Good
Even though the economy has been a bit shaky lately, there are good reasons to feel positive about the future of real estate.
Key Market Indicators
Home Sales Projection: Experts think things will get back to normal. They predict about 5.35 million homes will be sold each year by 2025. That's close to the 20-year average of 5.3 million.
More Homes for Sale: There are 15% more new listings than last year. The total number of homes for sale is up 12%. This means more choices for buyers after a time when there weren't many homes to choose from.
Pent-up Demand: Two-thirds of recent homebuyers put off buying in 2023. This suggests there are a lot of people ready to buy.
Interest Rate Trends: While rates have gone up, they're still not bad when you look at history. Experts think they might go down a bit in the coming years.
Strategies for Real Estate Professionals
To make the most of these market conditions:
Get ready for more buyers as the market picks up
Use new tech to work smarter and serve clients better
Keep learning about market trends and economic signs
Create targeted marketing plans for different types of buyers
MaverickRE:
The data-driven real estate platform that skyrockets your business through predictability, efficiency and control.
Chapter 5: Embracing AI: Your Competitive Advantage
AI is quickly becoming a part of real estate tools and platforms.
But don't worry - it's not here to replace agents.
Instead, it's like a powerful assistant that can help you work much more efficiently.
Let's look at some key areas where AI is making a big difference:
Lead Generation and Nurturing
AI-powered tools like Ylopo AI are revolutionizing digital marketing in real estate.
They help generate more leads at a lower cost by analyzing vast amounts of data to identify the most promising prospects.AI-Driven Lead Nurturing in Action
An AI assistant can nurture leads through automated yet personalized communications across multiple channels:
Emails
Text messages
Voice calls
This allows agents to stay in touch with more potential clients without getting overwhelmed.
Example: AI Chatbots
AI chatbots can handle initial conversations with leads, answering common questions and scheduling appointments.
This frees up agents to focus on high-priority leads who are ready to make a move.
Training and Coaching
AI is creating immersive, realistic training scenarios to help agents refine their skills. Imagine an AI system that:
Plays the role of a challenging client
Throws unexpected objections at you
Gives you immediate feedback on your responses
This technology allows for more frequent practice than traditional role-playing methods, helping agents sharpen their skills in a low-pressure environment before using them with real clients.
Client Communication
AI assistants integrated with Customer Relationship Management (CRM) systems can help agents manage their communications more effectively. These AI tools can:
Analyze conversations
Set reminders for follow-ups
Suggest responses for you to review
In the future, these AI helpers might become smart enough to recommend actions based on subtle cues in client interactions.
Content Creation
AI-powered tools like DALL-E and Midjourney are transforming visual content creation.
These systems can generate images and videos based on text descriptions, allowing agents to create eye-catching visuals for listings and marketing materials without advanced graphic design skills.
Virtual and Augmented Reality
VR and AR technologies are advancing rapidly, opening up new possibilities for property showcases and client interactions. In the near future, agents might:
Conduct virtual showings using AR glasses
Host immersive listing presentations
Meet with out-of-town clients in virtual spaces that feel almost like in-person interactions
Adapting Your Business in a Changing Market
As these technologies reshape the industry, it's crucial to refine your business model and value proposition. Consider the following strategies:
Focus on high-value activities: Use AI and automation to handle routine tasks, freeing up your time for relationship-building and complex problem-solving that require a human touch.
Keep learning new skills: Invest in improving your negotiation, market analysis, and creative problem-solving abilities. These skills are hard for AI to copy and will set you apart.
Be a trusted advisor: Use your ability to interpret data, provide context, and guide clients through the emotional aspects of real estate decisions.
Emphasize local expertise: While AI can process lots of data, your insider knowledge about local markets and communities is invaluable.
Be open about AI use: Clearly tell clients how you're using AI to improve your services, emphasizing that it complements rather than replaces your expertise.
Automated Outreach:
Ylopo AI Voice tirelessly calls and nurtures your leads to drive qualified appointments right into your calendar.
Chapter 6: Navigating Industry Changes
Beyond technological advancements, other significant changes are impacting the real estate landscape.
Commission Structures
Recent legal challenges are putting pressure on traditional commission models.
While alarming headlines about "slashed commissions" may be exaggerated, it's crucial to be prepared to articulate your value to clients clearly.Key points to emphasize:
Real estate transactions are often the largest financial decisions in a person's life, warranting professional guidance.
Agents manage hundreds of complex tasks throughout a deal.
Separate buyer and seller representation allows for proper advocacy and negotiation for each party.
Commission structures can be flexible to accommodate client needs.
Buyer Representation Agreements
As commission structures evolve, there may be an increased focus on formal buyer representation agreements.
Be ready to explain the benefits of these agreements to your clients:
Guarantees the agent is working in the buyer's best interest
Clearly outlines the services the agent will provide
Specifies how the agent will be compensated
Can include provisions to address concerns about long-term commitments
Consider offering flexible terms, such as trial periods or easy exit clauses, to alleviate client concerns. The key is demonstrating the unique value you bring as a buyer's agent.
Staying Competitive in a Changing Landscape
To maintain a competitive edge in this evolving market, you'll need to blend new technological skills with your uniquely human talents. Consider these strategies:
Enhance Your Tech Arsenal: Carefully evaluate and invest in AI-powered tools that boost your productivity and client service. Look for platforms that integrate multiple functions to streamline your workflow. Focus on technology that genuinely enhances your business operations rather than chasing every new trend.
Commit to Continuous Learning: Stay informed about industry trends, emerging technologies, and regulatory changes. Attend conferences, enroll in online courses, and engage in knowledge-sharing with peers. The real estate landscape is dynamic, and staying current is crucial for success.
Develop a Specialization: Cultivate deep expertise in specific market segments or property types. This differentiation helps you stand out from generalist agents and AI-powered alternatives. For example, you might become the go-to expert for historic homes or the specialist for first-time millennial buyers in your area.
Cultivate Your Personal Brand: Leverage social media, content marketing, and community involvement to build a strong personal brand that resonates with your target clients. Showcase your personality and unique perspective - these are qualities that AI cannot replicate.
Foster Strategic Partnerships: Form alliances with other professionals such as mortgage brokers, home inspectors, and contractors. This allows you to offer clients a more comprehensive, one-stop-shop experience, adding value beyond what AI alone can provide.
Elevate the Client Experience: Use technology to enhance, not replace, the personal touch in your client interactions. Look for opportunities to surprise and delight clients throughout the transaction process. This might include personalized video walkthroughs of new listings or handwritten notes at closing.
Champion Transparency: Be open about how you integrate AI and other tech tools into your practice. Frame it as a way to provide better, faster service to clients. Demonstrate how it allows you to focus on the high-value aspects of your work that truly benefit your clients.
Chapter 7: The Future of Real Estate: Bright and AI-Enhanced
While change can be unsettling, the future of real estate looks promising for agents who adapt and evolve.
AI and emerging technologies won't make skilled, empathetic human agents obsolete. Instead, they'll amplify your capabilities, enabling you to serve clients more effectively and build stronger businesses.
The most successful agents of tomorrow will:
Embrace technology as a powerful tool, not a threat
Continuously sharpen their uniquely human skills
Position themselves as indispensable local experts and trusted advisors
Remain adaptable and quick to adjust to industry shifts
Focus intensely on delivering exceptional value and experiences to clients
Combining AI's power with irreplaceable human qualities like empathy, creativity, and local knowledge, you'll set yourself up for success.
The key is to stay curious, keep learning, and always seek ways to better serve clients in this dynamic market.
As Howard noted:
"There's never been a better time to capture market share."
While some may react to change with apprehension, forward-thinking agents can seize this opportunity to grow their business and establish themselves as leaders in this new era of real estate.
The Human Element: Still Irreplaceable
Let's face it - buying or selling a home will always involve significant emotional and personal factors. It's a major life decision that requires a human touch.
However, leveraging AI and other technological tools can dramatically enhance your capabilities, allowing you to serve more clients effectively and focus on the high-value activities that truly make a difference.
The future belongs to agents who can skillfully blend technological savvy with those irreplaceable human abilities.
When you continue to evolve and adapt, you'll eventually solidify your position as an essential partner in one of the most significant financial decisions of your clients' lives.
Your Action Plan
Now that we've explored these concepts in depth, let's create a practical roadmap to help you implement these ideas:
Conduct a technology audit: Evaluate your current tech stack. Identify what's working well, what's underperforming, and where there are gaps in your toolset.
Commit to ongoing education: Set aside dedicated time each week for learning. Follow industry blogs, take online courses, or join a mastermind group focused on real estate innovation.
Highlight your unique strengths: Identify and showcase your particular strengths and local market expertise. How can you leverage these to differentiate yourself in an AI-enhanced landscape?
Experiment with AI tools: Start small - try an AI writing assistant for your listing descriptions or implement a chatbot for initial lead screening.
Refine your client communication strategy: Explore how you can use technology to maintain more effective contact without losing the personal touch that clients value.
Build a professional network: Seek out partnerships with other local professionals to enhance your value proposition and offer clients a more comprehensive service.
Create compelling content: Develop content that highlights your local knowledge and personality. This could include blog posts, social media updates, or short videos that showcase your expertise.
Review your business model: Assess whether your services and fee structure align with the changing market dynamics.
Refine your value proposition: Practice articulating why clients need your services in an AI-enhanced world. Be ready to clearly communicate your unique value.
Embrace flexibility: The only constant in real estate is change. Cultivate an adaptable mindset, ready to pivot as new technologies and market shifts emerge.
Remember, the goal isn't to become a tech expert overnight. It's about finding the right balance of human skills and technological tools that work for you and your clients.
Ylopo AI Text:
The pioneering 24/7 AI real estate assistant that actively converts leads 365 days a year.
Chapter 8: Strategies to Pivot Toward for 2024 and Beyond
Building on Howard's insights, it's crucial to capitalize on emerging industry trends using advanced AI and automation tools.
Here's how you can leverage some of the most powerful platforms available.
Ample Focus on Seller Lead Generation
Ylopo's robust platform enhances seller lead generation using comprehensive MLS data and tailored seller reports.
Our approach goes beyond traditional home valuation ads, incorporating features like cash offer ads that have shown to perform over 50% better.
Ylopo's Seller Lead Generation: By the Numbers
Targets 90% of sellers through Google and Facebook ads
Cash offer ads outperform traditional ads by 50%+
Generates an average of 25-30 seller leads per month for active users
Ylopo's toolkit includes:
Branded advertising campaigns
Advanced analytics for strategy optimization
AI-Powered Lead Nurturing
Ylopo's AI Voice technology revolutionizes lead nurturing by engaging new and past leads through immediate, automated phone calls.
This system delivers call appointments and live transfers, ensuring successful connections route directly to you.
AI Voice Performance Metrics
Follows up with leads for 90 days (compared to the average agent's 7 attempts)
Increases contact rates by 35%
Reduces time spent on manual follow-ups by 60%
This technology saves you valuable time while maintaining consistent and reliable lead follow-up.
Precision Lead Scoring with AI
MaverickRE offers cutting-edge AI lead scoring systems that evaluate potential clients based on:
Engagement levels
Behavior patterns
Interactions with your marketing materials
MaverickRE's AI Tools in Action
AI call grading improves lead quality assessment by 40%
AI sales coaching enhances conversion rates by 25%
Real-time KPI tracking allows for on-the-fly strategy adjustments
These tools continuously analyze interactions and refine scoring algorithms, providing you with increasingly accurate insights over time.
Ylopo and MaverickRE helps you streamline operations, boost lead conversion rates, and ultimately close more deals.
Remember, the goal is to use these advanced AI and automation technologies to amplify your uniquely human skills, not replace them.
Chapter 9: The Last Word: Embracing the Future of Real Estate
The real estate industry stands on the brink of a major transformation.
AI and emerging technologies are reshaping how we work, but they're also unlocking exciting new possibilities. For agents willing to adapt and innovate, the future is filled with opportunity.
Your deep local knowledge, emotional intelligence, and ability to guide clients through complex decisions will always be valuable.
The real estate professionals who will lead the pack in the coming years are those who view change as an opportunity, not a threat.
They'll harness technology to amplify their natural abilities, allowing them to provide an unparalleled level of service to their clients.
A Day in the Life of a Tech-Savvy Agent in 2025
Let's take a peek into the future and imagine a typical day for Sarah, our forward-thinking agent from Austin from before:
6:00 AM: Sarah's AI assistant briefs her on overnight leads and market updates as she gets ready for the day.
7:30 AM: She conducts a virtual showing for an out-of-state client using AR glasses, allowing the client to "walk through" the property as if they were there.
9:00 AM: Sarah meets with a local seller. Using AI-generated market analysis, she provides data-driven pricing recommendations and a customized marketing plan.
11:00 AM: She reviews her AI-curated list of potential properties for a buyer client, quickly identifying the best matches based on the client's preferences and behavior patterns.
1:00 PM: Sarah hosts a live Q&A session on social media, leveraging her local expertise to answer questions about the Austin market. Her AI assistant helps moderate comments and flag important questions.
3:00 PM: She attends a virtual training session on the latest blockchain applications in real estate transactions, staying ahead of industry trends.
5:00 PM: Sarah wraps up her day by reviewing her AI-generated performance metrics, identifying areas for improvement and setting goals for the coming week.
This glimpse into the future showcases how technology can enhance an agent's capabilities without diminishing the crucial role of human expertise and interpersonal skills.
Turning Insights into Action
Now that we've explored the future of real estate and the role of AI, it's time to take action. Here are some concrete steps you can take to start preparing for this tech-driven future:
Assess Your Current Tech Stack: Take inventory of the tools you're currently using. Are they serving you well? Are there gaps that new AI-powered tools could fill?
Set Learning Goals: Identify specific areas of technology or market trends you want to learn more about. Set aside dedicated time each week for this learning.
Experiment with AI Tools: Choose one AI-powered tool to implement in your business this month. It could be a chatbot for your website, an AI writing assistant for your marketing materials, or an AI-powered CRM.
Refine Your Unique Value Proposition: In light of these technological advancements, how can you articulate your unique value as a real estate professional? What human skills do you bring that AI can't replicate?
Network and Collaborate: Seek out other forward-thinking agents in your area. Consider forming a mastermind group to share insights and strategies for navigating this changing landscape.
Engage with Your Clients: Talk to your clients about these technological changes. What are their concerns? What excites them? Use these insights to guide your adoption of new tools and techniques.
Stay Informed: Subscribe to reputable real estate technology blogs and newsletters. Set up Google Alerts for key terms like "AI in real estate" or "proptech innovations" to stay on top of new developments.
Remember, the goal isn't to become a tech expert overnight. It's about gradually integrating these tools and insights into your practice to enhance your service and stay competitive in an evolving market.
Your Bright Future in Real Estate
The real estate industry is changing, but change brings opportunity.
Embracing AI and other emerging technologies means you can elevate your practice to never before seen heights. And we’ve said it over and over here, but again, these tools won't replace you – they'll empower you to work smarter, serve your clients better, and achieve more than ever before.
Your deep market knowledge, emotional intelligence, and ability to build relationships will always be valuable. Combining these uniquely human skills with the power of AI makes you 100% unstoppable.
Rocket-Fuel Your Real Estate Success: The Ylopo Edge
We've explored how AI is shaking up real estate.
But like Howard said, you don't have to navigate this new landscape alone. Ylopo offers the tools you need to thrive in today's market.
Our AI-powered lead generation, nurturing, and communication tools can help you work smarter and close more deals.
Imagine having an AI assistant that handles routine tasks, freeing you up to focus on what really matters – building relationships and growing your business. With Ylopo, that's not just a dream – it's reality.
Ready to take your real estate career to the next level? Book a free demo with Ylopo today and see how their cutting-edge technology can transform your business.
About the Author
Aaron “Kiwi” Franklin
Head of Growth
Aaron "Kiwi" Franklin is the Head of Growth at Ylopo and an innovative technologist and serial entrepreneur who has over 25 years of experience creating digital solutions for major brands and pioneering companies at the intersection of technology and real estate. His depth of expertise stems from leading development of the first website for Apple to founding a global community of over 1,000 elite athletes. Connect with me