The way Americans buy and sell homes is shifting fast, and AI is at the center of this change. Legal moves reshaping real estate agent commissions have opened the door for AI to cut costs and reduce mistakes in mortgage lending and home sales. If you’re wondering how AI in real estate might impact your next move, this post breaks down the tools shaking up the market and what that means for your wallet.
Understanding the Foundation: What’s Driving Change in Real Estate
The U.S. real estate industry is going through a major restructuring right now. A legal settlement involving the National Association of REALTORS has changed how real estate agent commission works, and this shift is creating opportunities for artificial intelligence to step in and help buyers and sellers save money.
For foreign investors looking to enter the U.S. property market, these changes represent both challenges and opportunities. The traditional 6% commission structure that has defined American real estate for decades is being questioned, and new technology is offering alternatives that can put thousands of dollars back in your pocket.
The Legal Settlement That Changed Everything
In August 2024, the National Association of REALTORS antitrust lawsuit settlements went into effect. This changed the rules significantly. Now, home buyers must sign a contract with a buyer’s agent before they can even tour a home. Agents often stipulate the full 3% commission because of how the new system works. If they put anything lower but the seller is paying more than that amount, they would have to give up the difference.
This legal change has opened the door for AI-powered alternatives that promise to reduce costs while maintaining the quality of service buyers and sellers expect. For those of you investing from abroad, understanding these changes is critical to making smart financial decisions in the U.S. market.
How AI is Changing Real Estate for Home Buyers
When you start looking for a house, you probably turn to websites like Zillow, Realtor.com, or Redfin. These platforms are already starting to add AI features, but some companies are going much further.
Partnering AI in Home Buying: The Homa Model
Homa is one of the first companies to combine AI technology with human expertise in a way that directly saves buyers money. Currently available in Florida, with expansion to Texas, California, and Georgia planned for this year, Homa is changing the buyer’s agent model.
Arman Javaherian, Homa’s founder and CEO, spent six years at Zillow where he built the platform connecting millions of home buyers with hundreds of thousands of real estate agents. He understands the industry from the inside, and he saw an opportunity to make it work better for buyers.
Acting as an AI-powered buyer’s agent, Homa takes just 1% of the buyer’s commission and refunds the rest to you. Here’s a real example: On a $500,000 home, if the seller is paying a 3% commission, that’s $15,000 total. Homa keeps $5,000 and refunds $10,000 directly to you, the buyer. You can use that $10,000 to lower your closing costs, reduce the listing price, or buy down your mortgage rate.
For foreign investors, this kind of savings can make a significant difference in your return on investment, especially when you’re purchasing multiple properties or entering the market for the first time.
The ‘Uber’ Network Approach to Real Estate Agent Technology
Homa uses what Javaherian calls an “Uber network of agents” for property showings. When you want to see a house in person, Homa connects you with local showing agents who conduct the walk-through. These agents know the school districts and neighborhoods well.
“They don’t feel guilty about taking up their agent’s time, which we heard a lot from our buyers,” Javaherian explained. “They can see eight homes in one day with eight different agents.”
Meanwhile, Homa’s AI answers questions about offer prices, comparable sales, and analyzes documents like disclosures. When you’re ready to make an offer, Homa’s in-house agents provide pricing strategies and handle all negotiations. As the purchase moves to escrow, a dedicated transaction coordinator manages all the paperwork.
Removing Conflicts of Interest with Flat Fees
One problem with the traditional model is that the more expensive the house you buy, the more money your agent makes. This creates a potential conflict of interest. Homa agents are paid a flat fee regardless of the purchase price, so they don’t make more money if you pay more as a buyer.
This structure is particularly valuable for foreign investors who may not be familiar with local market dynamics and need unbiased advice on property values and negotiation strategies.
Real Estate Technology for Sellers: AI Home Selling Solutions
AI isn’t just helping buyers. Sellers are finding ways to use these tools to save money too.
The ChatGPT Success Story
In March, a Florida man named Robert Levine made headlines by selling his house with help from ChatGPT, saving tens of thousands of dollars in the process. Levine, from Cooper City, Florida, used AI to determine which home improvements would give him the best return on investment.
“We repainted a couple of rooms in the house because ChatGPT said, ‘That’s where you’re going to get the biggest return on investment,'” Levine told NBC 6 South Florida.
ChatGPT also helped him design marketing materials and the online listing and showed him how to get his home listed on the Multiple Listing Service (MLS). Within the first 72 hours, he had five offers. Within five days, he had a signed contract.
What AI Can Do for Home Sellers
AI tools can help you in several ways when selling a property:
Virtual Staging: AI can digitally furnish empty rooms to help potential buyers visualize the space. This is much cheaper than physical staging, which can cost thousands of dollars.
Photo Enhancement: AI can improve listing photos, making rooms look brighter and more appealing. Just be careful not to mislead buyers with overly enhanced images.
Market Research: AI can analyze your local real estate market and provide pricing data to help you set a competitive listing price.
Marketing Materials: AI can help write compelling listing descriptions and create professional-looking flyers and social media posts.
Flat-Fee MLS Services with AI Guidance
Beycome is an “AI-guided” flat-fee MLS listing service that claims you can save up to 6% by putting your house on the market with its platform. For $99, the company will list your home on search sites and MLS, with title and escrow services costing an additional $99.
Compare this to the traditional 6% commission on a $500,000 home, which would be $30,000. The savings potential is substantial, especially for foreign investors managing multiple properties or working with tighter profit margins.
Will AI Replace Real Estate Agents?
This is the question everyone asks when they hear about real estate agent technology. The short answer is no, but the role of agents is definitely changing.
Javaherian doesn’t think AI will eliminate real estate agents entirely. “We have real estate agents; we need real estate agents because only a licensed real estate agent can do that negotiation. Will their role change? Hopefully, with technology, yeah, their role can change, and as a result, home buyers can save.”
In the Homa model, agents can work from home and focus on the parts of the transaction that truly require human expertise: negotiation, strategy, and personal guidance through complex decisions.
It’s worth noting that outside of the U.S., the average total real estate agent commission on purchases and sales is commonly about 2%. The 6% standard in America exists because of the previous structure of the industry. As that structure changes, we’re likely to see commissions fall closer to international norms.
AI Mortgage Lending: Cutting Costs and Eliminating Errors
Perhaps the most significant application of AI in real estate is in mortgage lending. This is where the technology can have the biggest impact on costs and accuracy.
The Challenge of AI in Mortgage Processing
Vishal Garg, CEO of Better, a mortgage lending company, describes his company as “AI native.” Better built a machine learning rules engine called Tinman starting in 2015 to take over every part of the mortgage process and have what could be done by machines done by machines.
The challenge with AI mortgage lending is that large language models like ChatGPT have about a 50% error rate on calculations. If you just ask ChatGPT to underwrite a loan according to a set of guidelines, they’ll get the math wrong half the time. On something complicated, like a debt-to-income (DTI) calculation, which might require multiple recursive loops, the error rate can reach 70%, 80%, or even 90%.
With a mortgage, you have to be 100% right all the time. A mistake in your DTI calculation could mean the difference between approval and denial, or between getting a good interest rate and a bad one.
How Better Achieves Zero Errors
Garg said Better has “zero errors” with the Tinman platform by using a hybrid approach. The machine learning engine does all the calculations and rules application. The AI agent just orchestrates the process, making sure everything happens in the right order and that all the pieces fit together correctly.
“That’s why our cost to produce a mortgage is close to $2,000 alone, and everybody else is more like $10,000,” Garg explained.
Think about what this means for you as a borrower. If a lender’s costs are $10,000 per mortgage instead of $2,000, they have to pass those costs on to you through higher fees, higher interest rates, or both. AI mortgage lending platforms can offer better rates because their operational costs are lower.
What AI Mortgage Lending Means for Foreign Investors
For foreign investors, AI mortgage lending offers several advantages:
Faster Processing: AI can review documents and run calculations in minutes instead of days. This means you can close on properties faster and take advantage of good deals before they disappear.
More Accurate Underwriting: With zero calculation errors, you get a more reliable assessment of what you can afford and what rates you qualify for. There are no surprises late in the process.
Lower Costs: When lenders save $8,000 per loan in processing costs, they can pass some of those savings on to you through lower fees and better rates.
Better Documentation Analysis: AI can quickly review complex financial documents, including foreign income documentation that traditional underwriters might struggle with or take longer to process.
At Nadlan Capital Group, we work with lending platforms that use AI negotiation tools and processing systems to give our foreign investor clients the best possible rates and terms. We understand that navigating U.S. mortgage lending from abroad can be confusing, and we’re here to guide you through every step.
Practical Implications: What This Means for Your Next Real Estate Transaction
Let’s bring all of this together and talk about how these changes affect your real estate decisions right now.
If You’re Buying a Home
Consider using an AI-powered buyer’s agent service like Homa if it’s available in your area. Getting back 2% of the purchase price can mean tens of thousands of dollars that you can put toward closing costs, upgrades, or reducing your mortgage balance.
Ask potential lenders about their use of AI in mortgage processing. Lenders with lower processing costs can often offer better rates. At Nadlan Capital Group, we can connect you with AI mortgage lending platforms that offer competitive rates for foreign investors.
Don’t be afraid to see multiple properties in a short time. The “Uber network” model means you’re not imposing on a single agent’s time, so you can be thorough in your search without feeling guilty.
If You’re Selling a Home
Explore AI tools for market research and pricing. Even if you work with a traditional agent, having your own data helps you make informed decisions.
Consider flat-fee MLS services if you’re comfortable handling some of the process yourself. The savings can be substantial, especially on higher-priced properties.
Use AI for virtual staging and photo enhancement to make your listing stand out. First impressions matter, and professional-looking photos get more clicks and showings.
If You’re a Foreign Investor
These AI-driven changes in real estate technology create opportunities to reduce your costs and improve your returns. The combination of lower commissions and reduced mortgage processing costs can save you tens of thousands of dollars per property.
Working with a knowledgeable partner who understands both the traditional process and these new AI tools is more important than ever. At Nadlan Capital Group, we help foreign investors take advantage of these cost savings while avoiding the pitfalls that can come with new technology.
Understanding the Limitations and Risks
While AI in real estate offers many benefits, it’s important to understand the limitations.
When You Still Need Human Expertise
AI is excellent at processing data, running calculations, and handling routine tasks. But it can’t replace human judgment in several critical areas:
Complex Negotiations: When multiple offers are on the table or when dealing with unusual property conditions, experienced human negotiators are still essential.
Local Market Nuances: AI can analyze data about school districts and crime rates, but it can’t tell you about the neighborhood’s character or future development plans that might affect property values.
Legal Complexity: Real estate transactions involve legal documents and requirements that vary by state and locality. Human oversight is necessary to catch issues that AI might miss.
Emotional Intelligence: Buying or selling a home is an emotional process. Human agents can read situations and adapt their approach in ways that AI cannot.
Quality Control Concerns
Not all AI tools are created equal. Some photo enhancement tools can make properties look misleading, which can lead to disappointed buyers and failed deals. Some AI-generated listing descriptions might sound generic or miss important selling points.
Always review AI-generated content before using it. Think of AI as a powerful assistant, not a replacement for your own judgment.
The Future of Real Estate Technology
Where is all of this heading? Based on current trends, we can expect several developments:
More Integration: AI tools will become more integrated into existing platforms like Zillow and Realtor.com, making them accessible to everyone rather than requiring separate services.
Better Accuracy: As AI models improve, error rates will continue to drop and capabilities will expand. We’ll see AI handling more complex aspects of transactions with greater reliability.
Lower Costs: As more companies adopt AI and competition increases, we should see continued downward pressure on commissions and fees. The 6% total commission standard will likely become a thing of the past.
Expanded Services: AI will move beyond buying, selling, and lending into property management, maintenance scheduling, and investment analysis.
For foreign investors, these trends mean the U.S. real estate market will become more accessible and more affordable over time. The barriers that once made it difficult to invest from abroad are coming down.
Taking Action: Your Next Steps
If you’re ready to take advantage of these changes in real estate technology, here’s what to do:
Research Your Options: Look into AI-powered services available in your target market. Check if Homa or similar services operate in the areas where you want to buy.
Compare Lenders: Ask about AI mortgage lending platforms and compare their rates and fees to traditional lenders. The savings can be substantial.
Consult with Experts: Work with professionals who understand both traditional real estate and these new AI tools. At Nadlan Capital Group, we specialize in helping foreign investors navigate the U.S. real estate market and take advantage of cost-saving technologies.
Start Small: If you’re new to using AI in real estate, start with simple tools like AI-powered market research or photo enhancement before committing to a full AI-guided transaction.
Stay Informed: This field is changing rapidly. Follow real estate technology news and be ready to adapt your strategy as new tools become available.
Why Partner with Nadlan Capital Group
At Nadlan Capital Group, we understand that foreign investors face unique challenges in the U.S. real estate market. Language barriers, unfamiliarity with local practices, and complex financing requirements can make the process daunting.
We bridge that gap by combining traditional expertise with knowledge of the latest real estate technology. We can help you:
Access AI Mortgage Lending: We work with lenders using AI platforms that can process foreign income documentation efficiently and offer competitive rates.
Navigate New Commission Structures: We help you understand your options under the new commission rules and connect you with services that can save you money.
Evaluate AI Tools: Not every AI tool is right for every situation. We help you determine which technologies make sense for your specific investment strategy.
Provide End-to-End Support: From initial market research through closing and beyond, we’re with you every step of the way.
Our clients consistently tell us that having a trusted advisor who understands both the traditional process and new technologies gives them confidence in their investment decisions.
Real Results from Real Investors
One of our clients, an investor from Tel Aviv, recently purchased three rental properties in Florida using a combination of traditional services and AI tools. By working with an AI-powered buyer’s agent, he saved over $30,000 in commissions across the three purchases. He used an AI mortgage lending platform we recommended and secured rates 0.5% lower than he was quoted by traditional lenders. On a total investment of $1.2 million, these savings added up to over $50,000 in the first year alone.
Another client from London was hesitant about AI tools at first. She wanted the personal touch of a traditional agent. We helped her find a hybrid approach, using AI for market research and document analysis while working with a human agent for showings and negotiations. She got the best of both worlds: the efficiency and cost savings of AI with the personal service she valued. She later told us, “I was skeptical at first, but the data AI provided gave me confidence in my offer price, and the money I saved on the commission helped me afford the renovations I wanted.”
The Bottom Line on AI in Real Estate
How AI is changing real estate comes down to this: the technology is making transactions faster, cheaper, and more accurate. For buyers, sellers, and investors, this means more money in your pocket and fewer headaches during the process.
The legal changes to real estate agent commission structures have created an opening for these AI tools to gain traction. Companies like Homa are proving that you can maintain quality service while dramatically reducing costs. AI mortgage lending platforms are showing that you can eliminate errors while cutting processing costs by 80%.
For foreign investors, these changes are particularly significant. The U.S. real estate market is becoming more accessible and more affordable. The combination of lower commissions, reduced mortgage costs, and better tools for market research and property analysis means you can achieve better returns on your investments.
The key is to work with partners who understand both the opportunities and the limitations of these new technologies. AI is a powerful tool, but it works best when combined with human expertise and judgment.
At Nadlan Capital Group, we’re committed to helping foreign investors succeed in the U.S. real estate market. We stay current on the latest real estate technology and traditional best practices so we can offer you the best of both worlds.
Whether you’re making your first U.S. property investment or expanding an existing portfolio, we’re here to help you take advantage of AI-driven cost savings while avoiding potential pitfalls. The future of real estate is here, and we’re ready to help you make the most of it.
Reach out to us today to discuss how we can help you save money and reduce errors in your next real estate transaction. Let’s talk about your investment goals and create a strategy that uses the best tools available, both traditional and AI-powered, to help you succeed.