Are Algorithms Radically Changing Real Estate
Q: Are algorithms radically transforming real estate as much as I’m reading and hearing lately? Cindy, Cambridge, MA
A: It’s a good idea to take anything you read or hear in the media with a grain of salt–everyone has their own agenda and the agenda of most media purveyors is to get you to pay attention. At a high level, the only constant in the world is change, so algorithms and technology are certainly changing and transforming real estate and all other businesses. The important question is “to what extent are algorithms transforming residential real estate”? People typically buy based on emotion and then justify their buying decisions using logic–this applies especially to real estate given the enormous psychological and emotional meaning people attach to the word “home”. Algorithms offer convenience through the automation of aspects of real estate like valuing property, but that convenience is unlikely to change human buying behavior or the fundamental meaning people attach to the homes they buy to live in (investment property is a different matter). Thanks for your question, Cindy.
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