The Dangers of Trusting AI When Buying or Selling a City Home

AI influence in the property market

The size of the AI market in the UK, according to Statista, is going to reach over £4.5 billion this year alone and is expected to reach a valuation of £20+ billion by 2030. AI has numerous applications in sectors and industries, and property is no different. Buying and selling homes - regardless of how volatile the housing market is - is a process many feel could be simplified with the help of technology. AI presents us with the chance to transform how we buy and sell homes, not to mention influence the trends that influence markets and what homebuyers do with their hard-earned investment capital. Indeed, AI has the potential to drastically change the property buying and selling process entirely.

As with any technology, however, there are both opportunities and glaring risks. So, we must be careful not to view this emergence with rose-tinted glasses. From generative AI authenticity, data privacy concerns and misinformation to depersonalisation and over-reliance, we can ill afford to entrust AI to complete every task associated with arguably the most important financial decisions you make in your lifetime.

At Maguire Jackson, we understand the challenges that homebuyers and sellers face when the market is tough. Ultimately, we - like many other leading estate agents - feel that AI is positioned to stay for the long run. As more people turn to solutions that make property buying and selling easier and more efficient, we thought it best to help you understand the potential risks that come with using AI. 

Risks of AI use in property exchanges

Misinformation and inaccuracy

Trusting AI in property transactions can open the door to potential data inaccuracies and the spread of misinformation. AI systems are trained on data sets, and in the fast-paced property market of areas like Birmingham, data and figures can quickly become outdated. What’s more, AI ‘hallucinations’ cause data to be skewed or misunderstood leading to falsified suggestions.

AI models may not account for market fluctuation leading to inaccurate valuations, or they may miss vital details about property histories. The nuances of diverse demographics and individual market dynamics, may also be harder for AI to grasp. At Maguire Jackson, we are very familiar with the local market and are very well placed to advise you on accurate, up-to-date developments in Birmingham’s property market.

AI-powered fraud, phishing and scams

Technology becomes more sophisticated seemingly by the day. As such, so do the methods of those who use it for malicious purposes, such as creating convincing but fake property listings with AI-generated imagery and descriptions. Generative AI can also be used to impersonate legitimate estate agents, lenders, solicitors or surveyors to deceive buyers and sellers into divulging sensitive information in phishing campaigns.

It’s widely believed that AI scams in the property sector could skyrocket in the coming months. To protect yourself, it’s crucial to verify the identity of everyone you’re dealing with and never share sensitive information with anyone you do not know, particularly through unencrypted channels or software.

Losing the human touch

One of the most overlooked risks of relying too much on AI in property transactions is losing the human touch. Buying or selling homes in vibrant urban environments like Birmingham city centre is about more than numbers and statistics. It’s an emotional process that requires personalised guidance, empathy, understanding, and patience.

While AI can undoubtedly speed up administrative and time-consuming tasks with property transactions, it cannot fully understand your unique preferences and needs. AI lacks the contextual awareness and experience to provide reassurance during stressful parts of the property buying and selling process, and it cannot intuitively negotiate in the same way that an experienced estate agent can. 

Once again this is where Maguire Jackson can step in, providing tailored advice and award winning expertise that outshines any computer algorithm. The human touch is crucial during any property transaction, and no amount of speed efficiencies can replace this.

Navigating AI safely in Birmingham's property market

While there are risks of trusting AI blindly in the property buying and selling process, that does not mean it should be shunned altogether. AI still lends itself to being a valuable tool which, when used responsibly, can make the process more effective and stress-free. UK workplaces and consumers are using AI more, despite lingering questions about whether the right tasks are being automated.

The key is to use the technology methodically and ethically with supervision. This involves:

1. Verifying and double-checking: Always cross-reference information with reliable sources such as Land Registry details and property renovation records to determine whether any information has been falsified.

2. Prioritising security: Using strong, unique passwords for all accounts and applications you use in your property search, and being vigilant about sharing your personal or financial information. Ensure you verify any sources or contacts to be 100% sure that you’re speaking to a person, not a robot.

3. Being wary of unrealistic offers: If you come across a deal, offer, or listing that seems unrealistically good, there’s a solid chance that it probably is. Seek second opinions and references to ensure you’re not walking into a trap.

4. Using AI as an asset, not a replacement: By all means, entrust AI to handle repetitive tasks like sending enquiries, aggregating data, and digitising your paperwork (if need be), but rely on human experts for important strategic negotiation and decision-making.

5. Choosing a tech-savvy estate agent: Consult with agencies that understand how to use technology like AI responsibly while offering a personalised service to you.

Keep an eye on AI’s use in property transactions

While it can be tempting to use AI to assist in the home selling and buying process, it’s important to be cautious about the information and data it produces. AI will continue to evolve and influence the property sector but careful moderation and supervision are key. At present, the risks may outweigh the benefits, however, with time, it can be refined and changed to be more accessible in more ethical and time-saving ways.

Remember when it comes to buying or selling homes in the heart of Birmingham, local expertise, personalised recommendations, human intuition and efficiency cannot be replaced. At Maguire Jackson, we’re committed to providing you with a service that is tailored exactly to your needs and preferences, and we’re here to help you protect your interests and achieve your property goals with confidence. 

Ready to get started? Request a home valuation today and we’ll be happy to offer you focussed professional advice.