The commentary by Viktor Weber was published on 03.08.2023 in the Immobilien Zeitung (IZ) and was edited by Monika Leykam.

Real estate brokerage is primarily about matching the property data of an asset for sale with the purchase criteria of willing investors at the right time. However, the purchase criteria in particular are often very general. Only if the agent has a good relationship with a company or if the company provides detailed information on its own could the agent adequately assess a buyer. This changes when AI-supported, digital processes come into play. It is precisely this type of information that can now be stored digitally and confidentially in order to model your own acquisition strategy.

Such a transaction process, from the automatically generated shortlist to AI-supported due diligence, helps owners and investors, especially in the current market phase. In the current buyer's market, there is no other way to objectively analyze this wealth of data points. Computers work faster than humans and AI algorithms work better than simple filter functions.

Real estate agents will not disappear as a result. The market will become more differentiated, especially away from the large real estate service providers. This means that less professional estate agents who do not offer outstanding services, work digitally, have a network and good properties will be pushed out of the commercial market. This development is also conceivable in the private sector, but the emotional component is even more important here than in the professional segment.

Agents will be needed for fewer mandates - or for isolated tasks in the process, such as some unpleasant negotiations, going to the building authorities or accompanying the property tour. Partial automation does not mean losing the human element. This component will remain, but at a lower cost, with better data quality and greater data control. Buyers and sellers will simply talk to each other earlier, without an intermediary. And if they still need support during a viewing or a negotiation, they can commission a service provider in isolation. But at a significantly lower cost. This is because estate agent commissions will also fall if buyers and sellers can process transactions directly. I am convinced that the new normal in real estate brokerage will be digital.

You can find the original article at: https://www.iz.de/meinung/news/-die-ki-ist-der-bessere-makler-2000018460