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I think it’s a bit misguided in the pitch by too boldly trying to replace all buyer agents. A lot of what realtors offer, especially to first time buyers (~1/3)

I think it’s a bit misguided in the pitch by too boldly trying to replace all buyer agents. A lot of what realtors offer, especially to first time buyers (~1/3), is emotional support and confidence/security for making the biggest financial decision in their lives. I don't believe an AI isn’t going to be able to do that. But if you’re a second+ time buyer, then I think it makes more sense.

alfalfasprout 2y ago
Is emotional support worth $60k on a $2mm house? No, it isn't. Lots of realtors are trying to justify their worth but the reality is a large number of transactions still involve the buyers/sellers doing their own research + due diligence.
- jrflowers 2y ago
  > Is emotional support worth $60k on a $2mm house? No, it isn't. There is no practical ceiling on what people will spend to feel comforted and encouraged, or to have their choices applauded.
- thinkmorebetter 2y ago
  I am not defending the realtor fees here. The free market should decide what is worth to anyone. My take is simply that an AI realtor doesn't do all that a (good) human one does.
greenfish6 2y ago
I actually do believe that AI can make someone feel more comfortable with their purchase. Let's break down the communications that realtors currently do to comfort buyers (mostly over text, which is also how we communicate): Tell you comparably priced properties - we do this. Remind you the steps in the process - we do this. Tell you basic stats about local transactions (such as telling dejected buyers that only 1/6 home offers get accepted in the bay) - we do this. Send newsletters for market updates - we do this. Tell you what other agents are telling them - we do this. I think if someone really needs a person putting a hand on their shoulder, then we aren't that. But we have implemented many of the typical comforting realtor actions
- thinkmorebetter 2y ago
  Fair enough, and I wish you luck because I welcome down pressure on existing fees. My take is simply that the positioning seems to unnecessarily make it a fight against all buyer agents, whereas it might be better to start by targeting the buyers who already "get it".
  - greenfish6 2y ago
    Currently, the description on our website says that we use AI to help you interpret real estate data and gain an edge on other buyers - nothing about fighting other agents. I think that is injected opinion from commenters here. & yes, we are targeting buyers who already believe that they need a service like this due to their past or current experience
- threeseed 2y ago
  > we do this Everything you've described could be achieved with a basic web app. Not seeing what AI brings to the table here other than being a fake human that gives inaccurate advice ~5-10% of the time. Which seems risky when I am making the biggest financial decision of my life.
  - conductr 2y ago
    Shall I tell you about the qualified and professional human appraisers that I’ve hired in the past? I usually get results in the range of 0.5x-5.0x what is realistic market. I had a job that I would hire usually at least 3 appraisers for every transaction and could pick which appraisal to share with insurance, lenders, etc based on whether a high/low value would benefit me. Humans are flawed too.
    - threeseed 2y ago
      What you describe there has nothing to do with humans being flawed. There simply isn't any "right answer" for how much a house is worth. I've used countless web-based valuation services and they all had quite large price ranges as well.
lxe 2y ago
After my first home buying experience, I can assure you that "emotional support" is actually "emotional manipulation"

alfalfasprout 2y ago

Is emotional support worth $60k on a $2mm house? No, it isn't. Lots of realtors are trying to justify their worth but the reality is a large number of transactions still involve the buyers/sellers doing their own research + due diligence.

jrflowers 2y ago
> Is emotional support worth $60k on a $2mm house? No, it isn't. There is no practical ceiling on what people will spend to feel comforted and encouraged, or to have their choices applauded.
thinkmorebetter 2y ago
I am not defending the realtor fees here. The free market should decide what is worth to anyone. My take is simply that an AI realtor doesn't do all that a (good) human one does.

greenfish6 2y ago

I actually do believe that AI can make someone feel more comfortable with their purchase. Let's break down the communications that realtors currently do to comfort buyers (mostly over text, which is also how we communicate): Tell you comparably priced properties - we do this. Remind you the steps in the process - we do this. Tell you basic stats about local transactions (such as telling dejected buyers that only 1/6 home offers get accepted in the bay) - we do this. Send newsletters for market updates - we do this. Tell you what other agents are telling them - we do this. I think if someone really needs a person putting a hand on their shoulder, then we aren't that. But we have implemented many of the typical comforting realtor actions

thinkmorebetter 2y ago
Fair enough, and I wish you luck because I welcome down pressure on existing fees. My take is simply that the positioning seems to unnecessarily make it a fight against all buyer agents, whereas it might be better to start by targeting the buyers who already "get it".
- greenfish6 2y ago
  Currently, the description on our website says that we use AI to help you interpret real estate data and gain an edge on other buyers - nothing about fighting other agents. I think that is injected opinion from commenters here. & yes, we are targeting buyers who already believe that they need a service like this due to their past or current experience
threeseed 2y ago
> we do this Everything you've described could be achieved with a basic web app. Not seeing what AI brings to the table here other than being a fake human that gives inaccurate advice ~5-10% of the time. Which seems risky when I am making the biggest financial decision of my life.
- conductr 2y ago
  Shall I tell you about the qualified and professional human appraisers that I’ve hired in the past? I usually get results in the range of 0.5x-5.0x what is realistic market. I had a job that I would hire usually at least 3 appraisers for every transaction and could pick which appraisal to share with insurance, lenders, etc based on whether a high/low value would benefit me. Humans are flawed too.
  - threeseed 2y ago
    What you describe there has nothing to do with humans being flawed. There simply isn't any "right answer" for how much a house is worth. I've used countless web-based valuation services and they all had quite large price ranges as well.

lxe 2y ago

After my first home buying experience, I can assure you that "emotional support" is actually "emotional manipulation"