Market Daily

Market Daily

ChatGPT makes waves in real estate industry

Image Commercially Licensed from: DepositPhotos
Image Commercially Licensed from: DepositPhotos

ChatGPT: Artificial intelligence (AI) has been lauded as the upcoming marvel that will streamline work for years.

The AI program ChatGPT has gained attention for its writing assistance as more people use it for a range of tasks in both work and school.

AI has shown to be an important asset in the real estate sector with regard to online listings.

The convenience

Using ChatGPT, a realtor by the name of JJ Johannes painted a beautiful picture of a home in Cedar Rapids, Iowa.

The realtor quickly penned the description using a few key words in less than five seconds.

It would have taken Johannes more than an hour to write it if he had done it himself.

“It saved me so much time,” he added. “It’s not perfect but it was a great starting point.”

“My background is in technology and writing something eloquent takes time. This made it so much easier.”

JJ Johannes is only one of several realtors that employ AI after its formal debut in late November.

The experience helped residential and commercial agents create listings, social media posts, and legal documents, and was praised as groundbreaking for their careers by both groups of agents.

ChatGPT has also been used to automate processes like answering frequently asked questions and concluding complex computations.

The AI

ChatGPT is a tool that keeps a massive amount of web data in order large respond to user questions.

These activities have been utilized with it thus far:

  • Original essays
  • Stories
  • Song lyrics
  • Research paper abstracts

ChatGPT also generates emails and performs accounting activities.

There have been concerns expressed regarding the AI’s dependability and the possibility of exam cheating when another user used it to pass an exam at an Ivy League university.


Since its launch in November, ChatGPT has sparked discussions about the potential negative effects it may have across a number of businesses.

However, it has already significantly impacted real estate brokers’ day-to-day operations all over the United States.

Many others have stated that they couldn’t operate without ChatGPT.

Miami Real Estate Group broker Andres Asion said:

“I’ve been using it for more than a month, and I can’t remember the last time something has wowed me this much.”

Asion got a message from a client who had just moved into a house that was still being built and was having problems opening the windows.

Her attempts to reach him for months went unanswered.

The broker then forwarded a copy of one of her emails to the AI, emphasizing liability concerns.

“ChatGPT wrote it as a legal issue and all of a sudden, the developer showed up at her house,” said Asion.

Additionally, he has produced legal documents using it, such as addenda, and forwarded them to lawyers for approval.

“I fine-tune all kinds of drafts with ChatGPT,” said the broker.

“Sometimes I’ll tell it to make it shorter or funner, and it gives you so many samples to pick and edit from.”

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Despite the fact that ChatGPT is free to use, its parent firm OpenAI is apparently considering imposing a $42 monthly fee.

Andres Asion said he was willing to pay for the service.

“I would easily pay $100 or $200 a year for something like this,” he said. “I’d be crazy not to.”

The tool has changed how Frank Trelles of State Street Realty in Miami operates, and he is willing to pay for it.

“As soon as I tried it out, I was sold,” said Trelles.

“I went to sign up for a package, thinking it would be at least $100 a month, and was blown away that it was free.”

“Nothing in this world is free though – and that made me a bit nervous.”

According to Trelles, he uses the AI to look for allowed uses for certain parcels of land and zones in the Miami-Dade County region.

In order to evaluate what mortgage payments or return on investment would be suitable for the client, he also makes use of algorithms and mortgage calculators.

“I can be in a car with a client when they ask me what their mortgage payments might be,” said Trelles.

“I can ask ChatGPT what a mortgage payment would be on a $14 million purchase at a 7.2% interest rate amortized over 25 years with two origination points at closing, and in two seconds, it gives me that information.”

“It also explains how it got the answer. It’s amazing.”

Potentials and limitations

Although ChatGPT is one of the finest technologies available, it still has certain limitations.

For instance, the tool previously struggled with basic math.

Trelles contends that it is ineffective for producing exact results and is only suitable for quick, crude computations.

Serge Reda of the Fordham Real Estate Institute claims that certain individuals might be able to use ChatGPT more effectively than others.

The use of AI has also allowed brokers to compose listings and responses more rapidly.

Automation of customer answers, however, is not the best strategy because lead generation and transaction closure frequently require a customized approach.

“It’s accessible to everyone right now because it’s free and they can get a taste of how this powerful tool can work,” said Reda.

“But there are definitely significant limitations.”

AI uses in other forms

Realtors are paying attention to ChatGPT now, but the real estate industry has already used AI in other applications.

For instance, Zillow used AI for 3D mapping and to automatically create floor plans.

The Zestimate tool used AI to analyze photos to determine whether specific properties had stainless steel appliances or hardwood floors in order to verify that price estimations correctly represent the status of the market.

A recent AI feature that allows prospective purchasers to perform research using natural language was introduced by Zillow.

Matt Kreamer, a spokesman for Zillow, asserts that the real estate industry adapts more slowly than other industries.

But he anticipates many more developments.

Kreamer claims that Zillow isn’t very concerned about agents using ChatGPT to automate procedures and save time.

“We aren’t promoting or wary of ChatGPT but are interested in how it’s being used and watching it,” said Kreamer.

Although it’s too soon to predict if the tool will become a standard in real estate, JJ Johannes believes AI has the potential to significantly change many other industries.

“It may not be with ChatGPT, but I believe some form of artificial intelligence like this will become a big part of how we work and live our lives,” he said.