I am working with a client who represents a family Trust for the sale of a few commercial buildings. Upon receiving an offer for the property, my client mentioned entering various sales scenarios into an AI program to determine if the offer would work for them. We are all aware of the impact and increased prevalence of AI; however, this one felt new to me.
While I can appreciate crunching numbers in a variety of ways, I would still urge caution to anyone negotiating a real estate transaction using this technology. Negotiations are certainly based on numbers; however, it is important to understand that there are many other factors that should be considered in any negotiation.
Negotiation Factors Beyond an AI Scope:
1. Viability of a buyer. Being able to fully understand if a buyer is qualified to purchase a property is critical. As agents, we must take careful steps to ensure that a buyer is fully capable of closing on this property. If another agent represents the buyer, it is important that the two agents provide the necessary communication to be able to assess this viability.
2. Timing. Depending on the situation for the seller and the buyer, the terms of the feasibility period and the subsequent closing are imperative to understand. I've had full-price offers fall apart because of unreasonable or unrealistic feasibility requests.
3. Condition of the property. Until a property has undergone a full inspection by a professional, there are issues that may or may not factor into a negotiation.
4. Seller's bottom-line requirements. No AI system will have the full knowledge of what a seller needs regarding the financial end-game, the personal situations behind the sale, or any other factors regarding an estate or a trust.
AI is a tool that has its place. What everyone must be cautious about is solely relying on an AI tool to make big decisions, such as negotiating a real estate deal. Humans will always have a much bigger picture because we are hands-on. We work with people who have real lives, needs, and variable personal situations.
What are you all experiencing in the realm of AI negotiations?
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