Artificial intelligence is rapidly changing the way we access information, and real estate is no exception. Buyers and sellers are increasingly turning to AI for advice about property values, negotiating strategies, commissions, and even how their agents should handle a transaction. While some of that information can be useful, some of it can also be very misleading.
The problem is not necessarily AI itself. The problem is asking AI questions that require additional context such as local knowledge, current market information, and professional judgment, and then treating the answers as facts.
Ask an AI platform what a home is worth, and it can analyze publicly available information, sales data, and general market trends. What it often cannot adequately understand is why two seemingly comparable homes may have dramatically different values.
Views, setting, condition, quality of construction, waterfront characteristics, neighborhood nuances, and even the emotional appeal of a particular property can have an enormous impact on value. Those differences are particularly significant in Maine's coastal and luxury markets.
The same problem arises with negotiating strategy. There are no universal answers to the questions of how much a buyer should offer, how aggressively a seller should counter, or when either side should hold firm or compromise. The right strategy depends on the property, competing interests, market conditions, timing, and, most importantly, the motivations of the people involved. The art of real estate brokerage is identifying and interpreting the nuanced communication between the parties involved in a transaction.
We are also seeing AI provide buyers and sellers with very definitive opinions about real estate commissions and what an agent "should" be paid. Compensation in real estate is negotiable. Determining appropriate compensation requires a detailed discussion between a client and their agent. I know that a talented agent can more than pay for themselves throughout a transaction and through the market education that leads to a successful result.
I use AI all the time and consider it an extraordinarily useful tool. But there is an important distinction between information and expertise. AI can provide information. A great real estate professional provides context, experience, judgment, and accountability.
A real estate agent can help a client sort through competing data points and navigate detailed valuation concepts that may be unique to a particular property. In a transaction involving what is often someone's largest financial asset, that distinction matters.
At Legacy Properties Sotheby’s International Realty | Great Seacoast Homes, we offer the best of both worlds. We have a team of exceptional agents who understand the benefits and power of the many tools available to help them evaluate opportunities and successfully negotiate transactions on behalf of their clients.
