Who will emerge victorious?

With the rapid growth of AI tools in recent years, consumers now have the ability to find answers on their own without needing assistance from a person. This disruption has also impacted the real estate industry. Despite lingering stereotypes and misinformation about the role of agents, it raises the question of whether their contributions are truly valuable or simply motivated by financial gain.

Todd Shyiak, executive vice president of CENTURY 21 Canada, acknowledges that AI tools will have an impact on the real estate sector. However, he emphasizes that the trust and relationships agents establish with their clients are irreplaceable. He encourages brokers and agents to utilize AI tools but stresses the importance of investing time saved into building connections with their network. Buyers quickly realize the significance of having a trustworthy agent serve their best interests once they enter the market.

What the buyers don’t see behind-the-scenes

A study conducted by the WAV group surveyed homebuyers to understand the value they perceived in the agent they worked with during their home purchase. The results highlighted that buyers often underestimate the amount of work agents put into their transactions but appreciate agents who advocate for them, especially in challenging situations.

According to the study, “One-in-four buyers stated that their agent spent ten hours or less on their transaction.” This indicates that agents may not effectively communicate the effort required to successfully complete a real estate deal, especially when faced with issues during negotiations with sellers or properties.

Never underestimate human connection

How can agents bridge the gap between the value of their services and clients’ understanding of them? The study revealed that buyers highly value agents who:

1. Provide a list of available homes on the market
2. Negotiate with sellers
3. Determine a fair bid price.

While AI can generate bids or suggest negotiation tactics, the human element is still crucial in the home sale process. Effective communication of negotiation strategies by agents leads to satisfied clients who ultimately secure their dream homes.

Buyers also appreciate agents who offer property lists as opposed to AI-generated addresses. They seek friendly and knowledgeable support to aid them in identifying their future homes.

Prove value from start to finish

Agents serve as guides through one of the most significant financial transactions in their clients’ lives, making the initial meeting crucial. Even well-informed buyers may require guidance on aspects like home inspections or fair market deals.

The study participants expressed a desire for more communication from their agents, particularly in fair price negotiations—a sensitive phase of the process. Buyers also seek better understanding of financing, home inspections, and other buying process elements. Agents should not rely solely on digital tools for information but have trusted professionals to guide clients to the finish line through word-of-mouth referrals.

While AI continues to advance, buyer agents can still build trust, establish genuine connections, and prove their value. AI cannot provide the reassurance a nervous client needs or identify structural issues in a property’s foundation, giving agents the advantage with their human touch.