Is AI The Future of Homebuying?
How AI tools impact homebuying.
Published on October 25th, 2024
In today’s fast-paced real estate market, buyers can access more information than ever. However, the true value doesn’t lie in raw data alone—it’s in how that information is interpreted and applied that leads to smart decisions. That’s where AI tools like The Real View come into play. When used in collaboration with a knowledgeable real estate agent, these tools can help you determine whether a property fits your lifestyle, is a sound investment, and ultimately, is the right choice for you.
The Supporting Role of AI in Real Estate
AI systems like The Real View can quickly process large amounts of property data, answering queries and identifying patterns that might take hours to uncover manually. For instance, they can help determine strata fees, find mentions of insurance claims, or flag repeated maintenance issues in a building’s meeting minutes. As powerful as AI is, it is most optimized when used in tandem with the expertise of a real estate agent. It serves as an invaluable tool that streamlines the process of delivering essential information to clients while enabling agents to explore and present greater detail on non-critical aspects that may be of interest.
We sat down with Beatrice Cosentini, an experienced managing broker and realtor with Sutton Group-West Coast Realty, to discuss how AI is reshaping the real estate landscape:
“An AI tool might reveal that a building has experienced four or five floods over the past year. On its own, this is just a number. Is this considered a reasonable number based on the size and age of the building? Without comparing it to other properties nearby with comparable attributes (for example, number of floors, units, and height), it’s hard to know. A real estate agent can provide that context, comparing this data to other buildings and using their local market expertise to help their client make an informed decision,” Beatrice shares.
Efficiency and Smarter Decisions
The Real View is also a time-saving tool, allowing agents to spend less time sifting through pages of condo documents and collecting data, and more time focusing on providing their clients with the details necessary for making smarter decisions. AI can instantly analyze hours of strata documents in minutes, pulling out key data points for further analysis. This efficiency allows agents and potential homeowners to devote their time to more critical activities—like talking to the strata council and property management company, learning about the building's community, or digging deeper into potential red flags.
“By having AI handle the heavy lifting, agents can focus on painting the full story of a property—whether it’s highlighting the building’s pet policies that fit your client’s needs or uncovering the intricate details about the building’s community and its culture that informs the strata council that might not be obvious at first glance,” Beatrice adds.
Trends vs. Data Points: Benchmarking for a Fuller Picture
Raw data points—such as strata fees, insurance claims, or maintenance history—don’t mean much without the proper context. For example, suppose a strata document hints at potential issues with the parkade, but there’s no clear indication of what’s coming down the pipeline. In that case, your agent can use AI to dig deeper into how often this issue has been discussed and if it’s linked to any insurance claims. AI helps identify patterns, but it’s your agent’s responsibility to verify that information and ensure it’s accurate and relevant to your situation.
Similarly, insurance trends are a critical factor. As Beatrice explains, “A building with repeated insurance claims, like frequent flooding, could see its strata deductible skyrocket, impacting your ability to secure affordable coverage.”
An agent can help a client interpret this data, comparing it to similar buildings and ensuring any potential financial pitfalls are made evident before a client makes an offer. For example, a realtor will use their experience and expert opinion to warn clients if a building will have a strata claim or increased strata fees soon.
Beyond the Numbers: Lifestyle Considerations
AI tools can pull up the technical details—like how often the strata council meets or whether they’ve discussed changes to pet policies—but an agent can tell you how those details fit into your larger lifestyle goals. Is this building run by a proactive community? What is the age demographic of the residents? Are they older and more concerned with safety, or are they younger and potentially more hands-off? These are important lifestyle factors that can’t be fully understood through data alone.
The Need for Human Oversight in AI-Generated Insights
While AI tools can help identify trends, it’s important to remember that they depend on the data they’re fed—and sometimes that data can be incomplete or misleading.
“For instance, strata meeting minutes may gloss over key details to present a more favorable picture. A real estate agent steps in here, asking the right questions and investigating further to ensure nothing is overlooked.” Beatrice explains.
How AI and Sutton Agents Can Guide Your Best Move
We believe technology should empower agents and buyers alike—not replace them. By combining the efficiency of AI tools like The Real View with the personalized expertise of a Sutton agent, you’ll have everything you need to make a wise, informed decision about your next home.
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Sutton Group Realty Services Ltd.:
Hana Park
hana@sutton.com
Sutton Group-WestCoast Realty Inc.:
Beatrice Cosentini
bcosentini@sutton.com
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