How safe are real estate agents’ jobs? Think it’s likely they’ll be replaced by artificial intelligence in the near future?
A recent Oxford study on artificial intelligence forecasts a 97-99% likelihood that real estate agents’ jobs will be made obsolete by AI. And not in 30 years, either. Think the next decade.
As the global economy and job markets continue to evolve, we all have a choice. We can all cry and wail that the sky is falling, or we can become more flexible and continue to develop the skills we’ll need in tomorrow’s economy. No one’s crying that automobiles made blacksmiths obsolete — new career opportunities opened for mechanics, and travel became easier for everyone.
As the Internet and mobile and social technology have evolved alongside the sharing economy, old industries have seen massive disruption. Look no further than what Airbnb did to the hospitality industry. Or Uber’s impact on the taxi industry, what Apple did to the mobile phone industry with the first iPhone in 2007, or how Tesla’s sales model is disrupting the car dealership industry. And those are just the headline-grabbing, glaringly obvious examples.
But what about the real estate industry? It seems to still be plodding along in its old, comfortable 20th century model. Or is it?
Change is not only coming; it’s already starting to disrupt the industry. Here are five ways that the real estate industry is on the verge of disruption and the changes you should look out for over the next few years.
How are rents set? A landlord or property manager guesses what the market rent is and advertises it. But a given rental unit may be worth $900 to one person and $1,100 to another who would happily pay more to live two blocks from their work.
A South African startup launched a rental listing and management service that gives landlords the option to let prospective tenants bid on the rent. The landlord sets a reserve rent, and renters are all pre-screened when they sign up for the service.
Less desirable rental units will receive fewer and lower bids; high-demand rental units will generate more higher bids. The resulting rent will be the true market rent, rather than a landlord’s hunch or best guess.
It also ensures that the renter who moves in is the one most enthusiastic about living there.
Pretty nifty idea, eh?
Flat-Fee Online Real Estate Brokerages
Consider these questions: Does everyone need a real estate agent? Are the services that agents provide worth $10,000? How long are sellers going to continue spending that kind of money to list and sell a property?
Not much longer.
Services like Owners.com in the United States and Your Online Property Agent in the U.K. have started offering flat-fee services in the $400-1,000 range depending on how much extra attention and services you want. All services include an MLS listing, buyer funds verification and background check, property showings calendar and offer negotiation support. Premium services…