What will clients still pay a premium for?
AI may change more than how real estate agents work. It may change what clients need from us and what they’re willing to pay for.
Mark Heinonen
Coldwell Banker Schmidt, Realtors
I work in real estate. I’m also building with AI.
Honestly, I feel as though we are in the “January 2020” of AI. What I mean is that there’s something on the horizon that’s about to change our everyday lives, and most of us haven’t fully grasped how much.
Building analysis tools and using AI for research, reporting, and marketing has made me question how much of what we charge for will still require the same human time in five years.
Relationships matter. So does the business model.
Real estate is a relationship business. But I’m skeptical that relationships alone will protect the current business model if consumers can turn to an increasingly capable personal AI tailored to their exact needs.
I’m also not convinced that “agents who use AI will replace agents who don’t” captures the whole picture. Realtors are increasingly competing with the tools themselves, as consumers use personal AI to handle tasks they once hired an agent to do.
Adopting those tools may help agents stay competitive, but it doesn’t guarantee the same fees, the same role, or enough business to support the same number of agents.
What happens to the value that remains?
There’s still real value in walking through a property, recognizing a problem, navigating a difficult negotiation, and taking responsibility when something goes sideways.
How will that value be priced as the work around it gets cheaper?
What gives me some optimism is the chance to spend less time on repeatable tasks and more time helping clients make good decisions. We have an opportunity to make the experience better, even if the business looks different.
Building while the answer is uncertain
I don’t know where this lands. I’m building, learning, and questioning my assumptions because my livelihood is tied to the answer, and I’d like to help shape what comes next.
What parts of our job do you believe clients will still pay a premium for in five years?
Adapted from my LinkedIn post.