How artificial intelligence is changing the real estate game

It used to cost an arm and a leg not to mention the hassle of moving furniture in and out of homes all the time to stage a house being prepared for sale.

These days, Alec Miles pays about $40 a picture and the staging is done virtually, showing buyers what a living room or den could look like without all the actual heavy lifting.

"I pay a professional photographer to take the pictures and then outsource the digital staging to another company," said Miles, a salesperson with EXP Realty in London, Ont.

"Actual staging is so expensive that it's almost cost prohibitive, whereas the turnaround for virtual staging is 12 hours and I know it'll look great."

That's just one typeof artificial intelligence (AI) that is changing how real estate is done in London and beyond.

Osman Omar has been a Realtor in the city for five years. ChatGPT, an AIchatbot developed by OpenAIthat was released in November, has started helping him come up with ideas about how to describe listings and acts as a "sounding board" for ideas.

"It helps put together a skeleton of information," Omar said. "If a client wants a write-up that is more professional, or something more upbeat and funny, I can ask it to do that and I get ideas. From a social media perspective, you can take your public remarks [from a listing]and then help condense that for different social media platforms."

Realtors wear a lot of hats, so taking work off their plates so they can focus on marketing a property can bebeneficial, Omar said.

"If you're savvy, it can really help give the property the exposure it deserves. AI can help you with [search engine optimization], social it's a good sounding board."

Some buyers looking for homes have alsobeen using AI, Miles said.

"You can ask OpenAI or ChatGPT about the best neighbourhoods in London, or the worst neighbourhoods, or neighbourhoods close to schools or parks. It gives you a starting point."

'It's not personal'

"The more in-depth understanding of the real estate marketthat comes from someone like me," said Miles. "I'm the one who will tell you if that house caught fire because of a meth lab that's not going to come up on ChatGPT."

Some Realtors use AI to write listings for them, though that takes away from the personal touch, Miles said.

"It's not personal if you have an AI doing that," he said. "But asking for the Top 10 or Top 5 neighbourhoods in London is a great learning tool for someone who is a new agent or anyone trying to provide extra value in the industry."

But AI won't replace actual human beings in the industry anytime soon, Omar said.

Talking to an agent that knows what is happening in the market is the best way to get the best sale.- OsmanOmar, Realtor

"Talking to an agent that knows what is happening in the market is the best way to get the best sale."

The next evolution will be virtual reality tours of properties, Omar added.

"I think we'll get to a place where people will view homes virtually. You put on your VR headset, get a feel for the place before driving down to see it. Nothing replaces in person, but it would be a preliminary screening."

In the United States, appraisers use AI to value properties based on data and images. Mortgage lenders can make decisions based on an AI-generated calculation of risk, and developers can select construction sites based on platforms that specialize in zoning regulations.

AI-powered platforms can generate property recommendations tailored to a homebuyer's desires, and botswill alert you if the house of your dreams comes up for sale.

CBC News asked ChatGPT about the most affordable neighbourhoods in London. It listed White Oaks, Argyle, East London, Pond Mills and Southcrest.

We also asked ChatGPTabout the best neighbourhoods for families in the city. Here's what the bot came up with: