As artificial intelligence (AI) makes its way into more and more areas of modern life, it’s no surprise that the technology is impacting the home-buying process as well. In fact, according to a recent survey from VA lender Veterans United Home Loans, about 1-in-3 prospective homebuyers (32%) are using AI tools as part of their homebuying journey.
The nationwide survey of nearly 900 prospective buyers found that searching for and virtually touring homes are the two most common uses of AI. The survey also revealed that 40% of prospective buyers interact with AI once a day or more. However, they were split on how comfortable they are with this technology becoming a part of everyday life, with 31% more concerned than excited, 29% more excited than concerned and 28% equally excited and concerned.
Searching for and touring homes are the most popular ways homebuyers utilize technology, with the vast majority of prospective buyers beginning their home search online. The survey shows that nearly 40% of buyers are using AI to both find and view homes.
At 38%, searching for homes for sale in the location where they want to live ranked as the most common way home shoppers used AI. This was followed closely by virtual home tours, which were used by 37% of those who reported using AI tools.
About a third of buyers who use AI tools (32%) use them to estimate monthly payments or to check property values. About the same percentage (31%) use AI as a mortgage calculator to determine how much they can afford or be preapproved for. They also use AI for tips and tricks to make homebuying easier, and to learn about the latest housing trends.
The survey also reveals that 3-in-10 use AI to input specific criteria they are looking for in a home (29%) and to shop for the best mortgage rates (28%). Meanwhile, 27% of respondents used AI to visualize potential renovations or changes to a home.
Not surprisingly, the survey revealed that younger home shoppers are more likely to use AI than their older counterparts, which suggests this emerging technology could play an even larger role in the process as younger generations reach homebuying age. Among those who use AI once a day or more, 60% are Gen Z and 47% are millennials. Just over a third of Gen X (36%) and 18% of baby boomers reported using AI once a day or more.
While AI tools like the above may help facilitate the home-buying process, they do not replace the need to work with an expert real estate professional, so be sure to interview at least three agents to find the one that works best for you in your home search.
