Could Your Next Real Estate Agent Be A Robot?
The days where one could rely on a real state agent could be come to an end using robotics to change the way people are selling or buying homes.
Big data, robotics and artificial intelligence are starting to be used to sell residential real estate. As the technology evolves, it is fair to ask: could your next real estate agent be a robot? Well, this might not be entirely true, but the reality is that some companies are starting to explore this possibility with the use of robotics to change the way people are selling or buying homes.
The debate whether or not robots and AI could take over 38% of US jobs within about 15 years is still a trendy topic-one that will not go away any time soon. This means that more than a third of the US jobs could be at “high risk” of automation by the early 2030s. According to the latest analysis done by accounting and consulting firm PwC, the risk of automation is higher in America compared with 30% in Britain, 35% in Germany and 21% in Japan.
The jobs that require less education are at higher potential risk of automation, according to the PwC report. Industries that could be at high risk include hospitality, financial and insurance, food service, transportation and storage. Wait, where is Real State? Real estate agents have traditionally facilitators of the complex process that takes to buy or sell a house, but up until today, they are no longer the only option.
REX Real Estate Exchange
REX is a company that provides full-service assistance to homebuyers and sellers at a fraction of the cost by leveraging cutting-edge applications of AI, big data, and machine learning to reach home buyers directly online. By circumventing the MLS entirely, REX is able to cut the average commission down from 5-6% in the MLS model to just 2%, saving home sellers an average of $25K. In addition, the company is also able to sell homes faster than MLS-listed homes with most selling within 39 days of going live.
“By harnessing the power of AI, big data, and machine learning, we ultimately provide sellers with a larger, and more targeted buyer pool than ever before,” said REX Co-Founder Jack RyanRyan. “By refining the selling process, we have turned buying and selling real estate into an easy process, not one that consumers dread.” The result is an easier for both buyers and sellers, as well as lower transaction costs.
The new addition to the REX model consist of a robot that is slowly replacing human real estate agents in markets like California and New York. The device’s name is Rex and was created in 2015 by a team of entrepreneurs in tech, finance, and real estate. The Woodland Hills based startup says the concept of using a machine instead of a person to find buyers is already paying off in big markets.
The current generation, Rex needs a person on site. Rex also employs licensed brokers and salespersons but is paying them salaries rather than commissions. “So we’re listing and closing a home a day in California. And, we just launched in New York last week and we already have three homes listed in New York in a week. So, it’s going really well,” Ryan told Fox Business.
Rex can answer any homeowner questions a potential buyer might have. “Basically, there are 75 questions you have about a home, we found that out. And there is a hundred ways to ask those 75 questions and we have trained our robots to answer all those questions so no one has to follow you around and say this home is 2500 square feet,” Ryan added.
What else can Rex do? The robots are trained to use AI to try to target potential buyers throughout social media ads. The concept has even caught the eye of big investors like the founders of Best Buy and Crate & Barrel. REX Real Estate Exchange has raised over $16 million to date.