Tech of a Life 5: What does AI predict for the future of Estate Agency?

In the ever-evolving property landscape, advancements in technology will continue to develop the moving process. It’s something that we champion and know is needed to make the process faster, more efficient and more enjoyable for everyone involved. What is still possible excites us, and these advances are playing into the development of the iamproperty ecosystem – our biggest innovation programme to date. As we look into the future, technological innovation will continue to be all around us, but what will this look like day-to-day for agents and how will it benefit them?

To get a broader picture of the impact technological advances might have on us, I asked AI about ‘the future of Estate Agency’, exploring what it thinks the property industry will look like in 50 years’ time and what this will mean for agents. I’ve analysed AI’s predictions*, which are based on information taken from research available online, news articles and databases, as well as drawn on my own thoughts about the future of the industry. What’s clear to me is that no matter how technology helps evolve the industry, people will remain at the heart and the value of innovative technology will only grow. Here are my five key findings:

A truly personal customer experience

Marketing and customer service are essential functions in any Estate Agency, making huge impact on the bottom line. Personalising a consumer’s experience makes brands memorable and in the past few years, brands across many sectors have been using personalisation to position themselves as the go-to choice in their space. AI forecasts that personalisation capabilities are set to become even more dynamic in the coming years, and that Estate Agents can look to benefit

E-commerce, drawing on Amazon as an example, is already demonstrating impactful use of personalisation, with data collected and used to enhance the buying experience. Personalised product recommendations are made based on a consumer’s previous searches and purchase history, to seamlessly direct their attention to the things they need and want.

Across the property sector, personalisation is already being used to deliver tailored marketing materials, such as emails that open with a client’s name and content timed in line with where they’re at in their journey. In the future, this is set to dial up further, with personalisation becoming even more fine-tuned to the individual and their stage of the journey.

AI outlines how we can mirror this approach successfully within the home buying experience by tracking customer preferences from their behaviour across Estate Agency and property websites, to deliver personalised property recommendations and tailored marketing communications.

We focus on helping agents to harness the power of personalisation within our Marketing Toolkit solution, enabling them to stand out from the crowd, win more instructions and increase market share. Its highly targeted on-market and off-market campaigns enable agents to impress potential landlords and vendors, to achieve maximum results.

Interactive and immersive viewings

AI predicts that by 2070, it will be standard practice for agents across the UK to be using advanced technology such as Augmented Reality (AR) and Virtual Reality (VR).

We are already seeing emerging technologies that use VR to offer new consumer experiences, such as virtual property tours, which immerse buyers virtually in the viewing experience and allow them to explore properties remotely, saving time and resources for both Estate Agents and vendors. We can expect to see the use of this tech becoming more commonplace as time goes on, meaning that viewings would no longer be subject to availability and could also reduce the need for agents to work out-of-hours to accommodate a buyer’s availability

AR can also enhance the in-person viewing experience. Imagine taking a vendor to a viewing and them being able to see all the real time information about a property there and then, such as its history, Material Information, biggest selling points, and even dimensions of the space. Not only would this support customers to make more informed decisions from the beginning, but it would also create a more interactive and memorable viewing experience.

AI forecasts that personalisation capabilities are set to become even more dynamic in the coming years, and that Estate Agents can look to benefit

Rising remote transactions

We have all seen a significant shift in consumer behaviour in recent years, with digitalisation allowing agents and consumers to opt for convenience by streamlining processes and making things more accessible. Residential property has historically been a complex and stressful process for both property professionals and vendors, but advancing technology is changing that by supporting the rise of remote transactions.

We’re already seeing an upward trend in the demand for remote transactions, with our Modern Method of Auction (MMoA) solution now making up 1% of all UK property transactions in 2023. MMoA transactions provide an accessible online solution, featuring a remote bidding process that can be accessed from anywhere in the world, still with all the relevant due diligence checks required.

Remote transactions are set to become more commonplace in order to meet the modern vendor’s needs. Agents can expect to see transactions become increasingly streamlined, with the support of digitalised processes which reduce admin time and focus on getting the best result for the vendor.

Residential property has historically been a complex and stressful process for both property professionals and vendors, but advancing technology is changing that by supporting the rise of remote transactions

 

Environmental and technological considerations

We all know the impact of changing regulations on the property industry and how it can shake up the way we work. With global warming showing no signs of slowing down, AI projections suggest that in just a few decades’ time environmental regulations will be a key focus for agents. Building on the introduction of minimum EPC ratings for properties in the UK, AI anticipates that environmental regulations will only mandate higher standards going forward to protect our future.

Regulations relating to the use of technology within property transactions and Estate Agency are also predicted to ramp up. In addition to ethical technology use, AI predicts a spotlight on data privacy which will help deliver secure transactions in an age of increased technology integrations.

We should expect regulations to increasingly focus on transparency in transactions, and this presents us with a fantastic opportunity. Material Information requirements have proven that increased transparency can support agents in gathering more information upfront, to support finding the right buyer and reduce fall throughs.

A spotlight on training

Another AI prediction on the future of Estate Agency is an enhanced focus on training and development. As it stands there are no official barometers in place for becoming an Estate Agent, with determination and strong communication skills often the most desirable attributes for future agents.

Recent conversations in the House of Commons would suggest that in the future we may see requirements for Estate Agents to hold higher education certificates, similar to the rules in place in Scotland. This AI prediction also draws on discussion sparked by the Regulation of Property Agents Working Group (RoPA) which has proposed additional regulations, a code of practice and compulsory training and licensing for Estate Agents.

Despite the chat around education for agents, I still see enthusiasm and empathy as the true measure of a good Estate Agent. People and their lived experiences are what makes the home buying and selling process successful, as agents use their knowledge to match vendors’ needs. While certificates and qualifications are a welcome bonus, a strong track record for excellent customer service will always, in my opinion, win a vendor’s trust in their agent.

Across the breadth of upcoming development, it’s clear that the future of the property sector is full of opportunities to enhance our offering as an industry. While people are, and always will be, the pillar of Estate Agency, AI suggests that Estate Agents who embrace new technology and integrate this into their operations to accelerate efficiency and enhance customer experiences will gain the competitive edge.

Material Information requirements have proven that increased transparency can support agents in gathering more information upfront, to support finding the right buyer and reduce fall throughs.