The rise of artificial intelligence has allowed agents to use chatbots to make client communication more efficient
By Maggie Callahan
With artificial intelligence (AI) dominating headlines, every REALTOR® has at least thought about how AI can impact their business.
One AI-powered tool that has gained traction and is rapidly evolving to meet real estate needs is chatbots. These virtual assistants can, for example, be implemented on a website as a pop-up chat window, help guide a new prospect through a series of questions via text message, or even help write compelling listings.
The National Association of REALTORS® 2023 Home Buyers and Sellers Generational Trends Report revealed that, among all generations, the first step taken in the homebuying process is to begin the search online, and 96% of homebuyers used the internet to search for homes. For real estate agents, a chatbot can be an easy tool to engage these home-seekers.
Especially helpful during the early fact-finding portion of the sales cycle, chatbots act as an extension of the agent, gathering buyer or seller information or qualifying leads.
“For smaller real estate businesses without much manpower, the process of answering basic questions can take up a lot of time, especially if they are the same questions asked repeatedly,” says Burton Kelso, a technology expert. “This is where a chatbot comes in, acting as a virtual assistant and answering those commonly asked questions that people need answers to.”
Bots in action
Greg Hanner, CRS, broker and owner of Garden Realty in Waterford, Connecticut, uses two chatbots: a chat function on his website and a text messaging bot for engaging with prospects.
“The simple chatbot on my website utilizes a series of questions called a decision tree (see sidebar for more) for potential clients,” Hanner says. “The decision tree has a buyer path, a seller path and a renter path, and when they get to the end of the question period, they are offered either my contact info to get more details or they can download a Buyer’s or Seller’s guide.”
The other chatbot he uses is Wise Agent’s AI bot, which helps him qualify inbound leads and engage with prospects when he is busy or unavailable. Linked to his phone number, the customizable bot acts as a virtual assistant named Erica, conversing with incoming prospects and gathering information.
“You can’t be in all places at once, but we live in a 24-hour world now. We as consumers want things instantaneously,” Hanner says. “So if a prospect tries to reach me and I’m tied up, the bot can push an autoreply that I am in a meeting, and I will follow up. This bot doesn’t replace me; I see it more as an extension of myself. The conversations are engaging and get to the root of the buyer’s needs.”
When a prospect begins interacting with the bot, a text alert is sent to Hanner so he can monitor the conversation and step in at any time to take over or turn the bot off.
Hanner says the Android-based platform is not very expensive, and he purchases 150 contact credits for $200, or just $1.33/contact. This price-per-contact includes all contact communication, including occasional follow-ups with the prospect for over a year, answering the prospect’s questions and informing Hanner when it is time for him to set up a phone call with this prospect. The prospect or customer can opt-out at any time.
If Hanner wants to intervene with a Bot conversation, he can choose from a customized library of autoreplies, some of which direct to his live calendar for scheduling a meeting with him.
Bot best practices
Kelso and Hanner agree that a chatbot isn’t for everyone. For agents who are just starting out or who have low volume, a bot is likely unneeded. The same is true for agents who do not have the technology budget to implement it or engage tech support. Pricing for chatbots ranges from free to a specified bulk price for a certain number of lead engagements.
For agents ready to take the leap, here are some tips for choosing and getting the most out of their chatbot.
Take advantage of free trials. If you aren’t interested in one of the free options available, many paid services offer free trial periods so that you can find your best fit before signing up. Free options are available from Pandorabots and HubSpot.
Make sure your customers and clients will use it. “Some people love it, and others may not embrace it. So you have to look and see if it will be a good fit,” says Kelso.
Get familiar with using AI tools. Try options like ChatGPT or Jasper to feel it out and see what it is like to ask a chatbot a question and receive a response.
Consult with an AI specialist. “Even with a chatbot, you’re still dealing with technology and may have to consult with a programmer or AI specialists to help them integrate the chatbot into whatever utility you want,” says Kelso.
Don’t forget to monitor it. Once you have your bot up and running, keep checking on it. “You can’t set it and forget it,” Hanner says. “About 2%–3% of people will not recognize they are talking to a bot—they may repeatedly ask the same question or keep asking to see the property—so you may have to step in in those cases.”
Kelso and Hanner agree that chatbots are an exciting development for real estate agents when implemented thoughtfully and managed well. And agents must have a realistic expectation of what a bot can accomplish. Says Hanner: “Chatbots are never going to take the place of a real estate agent, and they aren’t going to do your job for you. They are one more tool in the toolbox.”
Cybersecurity With Chatbots
Burton Kelso, a technology expert, gave us his tips to ensure that your—and your customers’ information—is safe from cyberattack.
“You must understand the cyber risks that come with using AI technology,” says Kelso. “If it’s done incorrectly, a criminal can take control of your chatbot, start reaching out to your buyers and sellers and ask intimate questions about their address, social security information and other data.” Here are his tips on protecting your cybersecurity.
1. Set up a Google Alert for yourself. This will notify you if anything about you as a real estate agent, such as transactions, pops up on the internet. So if a criminal uses your name as a real estate agent, those transactions will automatically trigger the alert. When you are alerted, it may be too late, but at least you know and can take steps to fix the problem.
2. Change your passwords. “You need to change your passwords at least quarterly to ensure that criminals aren’t getting your information,” Kelso says. He says this applies to email addresses, social media accounts and websites. “When it comes to websites, many agents use site-builder tools like GoDaddy or Squarespace for design. If you integrate
a plugin like a chatbot into one of those, and a criminal gets your login credentials, they can commandeer your website and take control of the chatbot.” Use a tool like HaveIBeenPwned.com to discover if your credentials have been leaked on the dark web through a data breach.
3. Stop using your personal phone number for business. If you start using chatbots, your real estate information will be more visible. “At this stage, start using a Google Voice or WhatsApp number or a VoIP (voice over internet protocol) service like RingCentral or Vonage to protect your mobile accounts. This protects you from a chatbot handing out your mobile number to a criminal. If this happened, a criminal could commit SIM card fraud to steal and transfer your number to their phone. Then, the criminal can use your number to make spam and phishing calls and send text messages.
4. Store data in-house. If you’re collecting data on potential buyers or sellers on the website, make sure it’s stored in-house rather than having that contact information floating on a third-party server. “Many cyber breaches occur through a ‘supply chain hack,’ which means a third party was hosting the data and got hacked,” Kelso says. “You would then have to apologize for the data breach because you were responsible for collecting that data.”
To start utilizing AI tools such as ChatGPT for your real estate business, visit openai.com/chatgpt.
Photo: iStock.com/sarawut burarak
